HomeMy WebLinkAboutContract 60678fORTWORTH ®
NEIGHBORHOOD EMPOWERMENT ZONE
TAX ABATEMENT AGREEMENT
New construction single-family-owner
1615 E. Hattie Street
CITY SECR ETARY
f')1JTRACT NO.~=-...---
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the CITY
OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of
the State of Texas and acting by and through David Cooke, its duly authorized City Manager, in accordance
with the authority granted under Chapter 378 of the Texas Local Government Code , and Cultivated Holdings,
LLC , owner of property located 1615 E. Hattie Street, Lot 14, Block 3, Glenwood Addition, an Addition
to the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof Recorded in Volume 63,
Page 76 , Map Records , Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council") hereb y finds and the City and Owner
hereby agree that the following statements are true and correct and constitute the basis upon which the City
and Owner have entered into this Agreement:
A. On January 29, 2019, the Fort Worth City Council adopted Ordinance No. 23552 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.IR through 6R" City
of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042 establishing "Designation of the
Neighborhood Empowerment Zone Areas One through Six" (the "NEZ").
B. Owner owns certain real property located entirely within Zone 6R and that is more particularly
described in Exhibit "1", attached hereto and hereby made a part of this Agreement for all purposes (the
"Premises").
C. Owner or its assigns plan to construct the Required hnprovements , as defined in Section 1.1 of
this Agreement, on the Premises (the "Project").
D. On May 10, 2023, Owner submitted an application for tax abatement to the City concerning
the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a part of this Agreement
for all purposes .
E. The contemplated use of the Premises , the Required hnprovements and the terms of this
Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its
creation and are in compliance with the NEZ Incentives, the Ordinance and other applicable laws , ordinances,
rules and regulations.
F. Written notice that the City intends to enter into this Agreement, along with a copy of this
Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing
bodies of each of the taxing units in which the Premises is e .
Page 1
NEZ Tax Abatement Agreement -Cultivated Holdings , LLC
1615 E . Hattie Street
M&C 23 -094 7 Annroved : November 14. 2023
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set
forth herein, do hereby contract, covenant and agree as follow s :
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of a single-family residence, of approximately 1,289 square feet in size and
built to the specifications listed in Exhibit "3 ", ( collectively the "Required Improvements"). Minor
variations and more substantial variations if approved in writing by both parties to this Agreement
before construction is undertaken in the Required Improvements from the description provided in
the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1 ,
provided that the conditions in the first sentence of this Section 1.1 are met and the Required
Improvements are used for the purposes and in the manner described in Section 1.3.
1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed within two years from the
date of Council approval. The abatement will auto ma ti call y terminate two years after Council approval
if a building permit has not been pulled and a foundation has not been poured, unless delayed because
of force majeure , in which case the two years shall be extended by the number of days comprising the
specific force majeure. For purposes of this Agreement, force majeure shall mean an event beyond
Owner 's reasonable control as determined by the City of Fort Worth in its sole discretion, which shall
not be unreasonably withheld , including, without limitation, delays caused by adverse weather, delays
in receipt of any required permits or approvals from any governmental authority, acts of God , or fires.
Force majeure shall not include construction delays caused due to purely financial matters , such as ,
without limitation, delays in the obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and sold to a Home
Owner to be continuously used as the primary residence of the Home Owner in accordance with the
NEZ Incentives. Home Owner shall file for a Homestead Exemption with Tarrant County Appraisal
District January 1 of the year following the calendar year in which the Required Improvement is
completed. In addition , Owner covenants that throughout the Term, the Required Improvements shall
be maintained for the purposes set forth in this Agreement.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property
tax abatement of City of Fort Worth-imposed taxes on the Premises for the Required Improvements, as
specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from other taxing
entities.
Page2
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based upon the
increase in value of the Premises due to the Required Improvements , over its value as determined
by Tarrant Appraisal District in November 2023 , and this amount is $0.00.
NEZ Tax Abatement Agreement -Cultivated Holdin gs, LLC
1615 E . Hatti e Street
M&C 23 -0947 Aooroved: November 14. 2023
3.
Page 3
If the square footage requirement of the Required Improvements are less than as provided in
Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this
Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of the Required
Improvements up to a maximum of $329,900.00 and shall apply only to taxes on the increase in
value of the Premises due to construction of the Required Improvements. In other words , by way of
example only , if the increase in value of the Required Improvements over its value in November
2023 , in a given year is $330 ,000.00 , Owner's Abatement for that tax year shall be capped and
calculated as if the appraised value of the Required Improvements for that year had only been
$329,900.00. The Abatement shall not apply to taxes on the land , nor shall the abatement apply to
mineral interests.
2.3. Term of Abatement.
The term of the Abatement ( "Term") shall begin on January 1 of the year following the
calendar year in which the Required Improvement is completed ("Beginning Date") and, unless
sooner terminated as herein provided , shall end on December 31 immediate I y preceding the fifth ( 5th)
anniversary of the Beginning Date.
2.4 Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments of the
Premises and/or improvements thereon.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of $100.00. The
application fee shall not be credited or refunded to Owner or its assigns for any reason.
RECORDS. AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any time during
normal office hours throughout the Term and the year following the Term and following reasonable
notice to Owner, the City shall have and Owner shall provide access to the Premises in order for the
City to inspect the Premises and evaluate the Required Improvements to ensure compliance with the
terms and conditions of this Agreement. Owner shall cooperate fully with the City during any such
inspection and/or evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable term of
this Agreement. The City shall have the right to audit at the City 's expense the Required Improvement
with respects to the specifications listed in Exhibit "3 ". Owner must provide documentation that
Owner is using the Required Improvements as its primary residence (collectively, the "Records") at
NEZ Tax Abatement Agreement -Cultivated Holdings, LLC
1615 E. Hattie Street
M&C 23-0947 Annroved : Novemher 14 . 202:l
any time during the Compliance Auditing Term in order to determine compliance with this
Agreement. Owner shall make all applicable Records available to the City on the Premises or at
another location in the City following reasonable advance notice by the City and shall otherwise
cooperate fully with the City during any audit.
3.3 Provision of Information.
On or before the last business day in April following the end of every year during the
Compliance Auditing Term and at any other time if requested by the City, Owner shall provide
information and documentation for the previous year that addresses Owner 's compliance with each of
the terms and conditions of this Agreement for that calendar year.
Owner must also provide documentation of compliance to Tarrant Appraisal District (TAD)
each year of the abatement by filling out and returning Tax Abatement Form 50-116 from the TAD
website to TAD , no later than the last business day in April for each year Owner is requesting tax
abatement.
Failure to provide all information within the control of Owner required by this Section
3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4 Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City shall make
a decision and rule on the actual annual percentage of Abatement available to Owner for the following
year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the
Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the
terms and conditions of this Agreement during the previous year of the Compliance Auditing Term .
4. EVENTS OF DEFAULT.
Page4
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner
fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem real property
taxes with respect to the Premises or the Required Improvements , or its ad valorem taxes with respect
to the tangible personal property located on the Premises , become delinquent and Owner does not
timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real
property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE PREMISES AS
PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv) OWNER DOES NOT
COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCES OF
THE CITY OF FORT WORTH ( collectively, each an "Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the City
shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall
have sixty (60) calendar days from the date ofreceipt of this written notice to fully cure or have cured
the Event of Default. If Owner reasonably believes that Owner will require additional time to cure
the Event of Default, Owner shall promptly notify the City in writing , in which case (i) after advising
the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have ninety
NEZ Tax Abatement Agreement -Cultivated Holdin gs, LLC
1615 E . Hattie Street
M&C 23 -0947 Aooroved: November 14 . 2023
(90) calendar days from the original date of receipt of the written notice , or (ii) if Owner reasonably
believes that Owner will require more than ninety (90) days to cure the Event of Default, after advising
the City Council in an open meeting of Owner 's efforts and intent to cure, such additional time , if any ,
as may be offered by the City Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default which is defined in Section 4.1 has not been cured within the time frame
specifically allowed under Section 4 .2, the City shall have the right to terminate this Agreement
immediately. Owner acknowledges and agrees that an uncured Event of Default will (i) harm the
City's economic development and redevelopment efforts on the Premises and in the vicinity of the
Premises ; (ii) require unplanned and expensive additional administrative oversight and involvement
by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of actual damages
therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore , upon
termination of this Agreement for any Event of Default , Owner shall pay the City, as liquidated
damages; all taxes that were abated in accordance with this Agreement for each year when an Event
of Default existed and which otherwise would have been paid to the City in the absence of this
Agreement. The City and Owner agree that this amount is a reasonable approximation of actual
damages that the City will incur as a result of an uncured Event of Default and that this Section 4 .3 is
intended to provide the City with compensation for actual damages and is not a penalty. This amount
may be recovered by the City through adjustments made to Owner 's ad valorem property tax appraisal
by the appraisal district that has jurisdiction over the Premises. Otherwise , this amount shall be due ,
owing and paid to the City within sixty ( 60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60)
days following the effective date of termination of this Agreement, Owner shall also be liable for all
penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as
determined by the Code at the time of the payment of such penalties and interest ( currently, Section
33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the Premises or the
anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use
is preferable , the City and Owner may terminate this Agreement in a written format that is signed by
both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the effective
date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously
abated; and (iii) neither party shall have any further rights or obligations hereunder.
4.5 Sexually oriented business & Liquor Stores or Package Stores.
a. Owner understands and agrees that the City has the right to terminate this agreement if
the Required Improvements contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this agreement
as determined in City's sole discretion if the Required Improvements contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to Owner 's first mortgagee or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner 's mortgagee which City Council hereby agree~ to ,
Page 5
NEZ Tax Abatement Agreement -Cultivated Holdings , LLC
16 I 5 E. Hattie Street
M&C 23 -09 47 Aooroved: November 14 . 2023
the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and Required
Improvements , this Abatement cannot be assigned to a new owner of all or any portion of the Premises and/or
Required Improvements without the prior consent of the City Council , which consent shall not be
unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially
capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in
writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign ,
lease or convey any of its rights under this Agreement. Any attempted assignment without the City Council's
prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder
following ten (10) calendar days ofreceipt of written notice from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no further
obligations or duties under this Agreement. In addition, upon assignment to any other entity with the
written consent of City Council, Owner shall have no further duty or obligation under this Agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT OF
A SALE OR ASSIGNMENT.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE
REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS
AGREEMENT WITH THE NEW OWNER WITHIN 60 DAYS OF THE TRANSFER OF
OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC
TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT
MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the following, or
such other party or address as either party designates in writing, by certified mail , postage prepaid, or by hand
delivery:
City:
City of Fort Worth
Attn: City Manager
200 Texas Street
Fort Worth, Texas 76102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
Owner:
Cultivated Holdings , LLC
1431 Evans Ave.
Fort Worth, Texas 76104
The Required Improvements will not be financed by tax increment bonds. This Agreement is
subject to the rights of holders of outstanding bonds of the City.
Page 6
NEZ Tax Abatement Agreement -Cultivated Holdings, LLC
1615 E . Hattie Street
M&C 23-0947 Annroved : Novemher 14 . 2 021
Page 7
7.2. Conflicts oflnterest.
Neither the Premises nor any of the Required Improvements covered by this Agreement are
owned or leased by any member of the City Council, any member of the City Planning or Zoning
Commission or any member of the governing body of any taxing units in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City ordinances or
regulations , and this Agreement, such ordinances or regulations shall control. In the event of any
conflict between the bod y of this Agreement and Exhibit "3 ", the body of this Agreement shall control.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for complete
or partial exemption from ad valorem taxes as a result of existing law or future legislation. This
Agreement shall not be construed as evidence that such exemptions do not apply to the Premises
and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and Council
Communication No. 23-0947 on November 14, 2023 , which, among other things , authorized the
City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long as the
certificate is requested in connection with a bona fide business purpose. The certificate , if requested ,
will be addressed to the Owner, and shall include, but not necessarily be limited to , statements that
this Agreement is in full force and effect without default ( or if an Event of Default exists , the nature
of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term
of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters
reasonably requested by the party or parties to receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in an y litigation questioning or
challenging the validity of this Agreement or any of the underlying laws , ordinances , resolutions or
City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such
litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinances, rules , regulations or policies of the City. Venue for any action under this
Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is
performable in Tarrant County, Texas .
NEZ Tax Abatement Agreement -Cultivated Holdin gs, LLC
1615 E. Hattie Street
M&C 23-0947 Aooroved : Novemher 14 . 2021
Page 8
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable , the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired.
7.10 Headines Not Controlline.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
7.11. Entirety of Aereement.
This Agreement, including any exhibits attached hereto and any documents incorporated
herein b y reference , contains the entire understanding and agreement between the City and Owner,
their assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict
with any provision of this Agreement. This Agreement shall not be amended unless executed in
writing by both parties and approved by the City Council. This Agreement may be executed in
multiple counterparts , each of which shall be considered an original , but all of which shall constitute
one instrument.
NEZ Tax Abatement Agreement -Cultivated Holdings , LLC
1615 E. Hattie Street
M&C 23-0947 Annroved : Novemh er 14 . 2 021
CITY OF FORT WORTH: OWNER:
By: 11:.:.,LCL
Fernando Costa
Assistant City Manager
-By ~---
An yWilliams,Manager
ATTE ST:
APPROVED AS TO FORM AND LEGALITY:
ByJ;iffiif!:7
Sr. Assistant City Attorney
M & C: 23-0947
Date Approved: November 14 , 2023
Page 9
NEZ Tax Abatement Agreement -Cultivated Holdin gs , LLC
1615 E. Hattie Street
M&C 23-0947 Aooroved: Novemher 14 . 2021
Cultivated Holdings , LLC
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS , a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this -4._ day of ::Jan UArJ , 2027 (
~t(f!~
the State of Texas
STATE OF TEXAS §
COUNTY OF TARRANT §
,,,•~~•~i ,,, EVONIA DANIELS {fi:-::,x/;\ Notary Public , State of Texas
;.~·-. ~ .:~;-Comm . Expires 07-13-2025
-:.,~t~t:~'/" Notary ID 126950030
BEFORE ME, the undersigned authority, on this day personally appeared Andy Williams ,
Manager of Cultivated Holdings, LLC, known to me to be the person whose name is subscribed to
the foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed , in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this l t#ctay of
2023. ~~----~-~~=---
Page 10
NEZ Tax Abatement Agreement -Cultivated Holdings , LLC
1615 E. Hattie Street
M~<: ?1-0Q47 Annrnvprl· NnvPmhPr 14 ?0?1
Exhibit 1:
Exhibit 2:
Exhibit 3:
Page 11
Property Description
Application: (NEZ) Incentives and Tax Abatement
Required Improvements description
NEZ Tax Abatement Agreement -Cultivated Holdings, LLC
1615 E . Hattie Street
M&C 23-0947 Aooroved: November 14 . 2023
Exhibit 1
Property Description
1615 E. Hattie Street, Lot 14, Block 3, Glenwood Addition, an Addition to the City of Fort Worth, Tarrant County,
Texas, according to the Plat thereof Recorded in Volume 63 , Page 76 , Map Records, Tarrant County, Texas.
DocuSign Envelope ID : 2D0B3F00-808A-48E9-B44B-9AD8C8510B15 Exhibit 2
fUKT Vl'UKTH ~~
A pplication# -----
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
Deeded Property
Owner/Developer Williams
Last
Applicant Information
Andy
First
Mailing Address: 1431 Evans Ave, Fort worth, TX 76104
Street A ddress Ci ty Sta te
M I.
Phone: 214-890-6164 Email: andy@teamreconrealty.com
Contact: Tello Jerry
Last First M I.
Z ip
(If different)
Phone: _8_1_7_-_6_1_8_-_4_6_00 _________ Email: acgui si ti ons@rehabwarri ors. com
Pro·ect Information
NEZ certifications are project and owner specific. Please describe your project: _____________ _
Project is a new construction single family house that will be sold to a homeowner.
Project Type
[8J □ □ □ □ □
Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
*Please be advised if the project address is wned as a designated historical property (HC) or is located in the Near Southside, Camp
Bowie or Stockyards Urban Design District, approval of your project is required prior to NEZ application submittal An approved
Certificate of Appropriateness and supporting documentation for the project must be attached to the NEZ application.*
Project Address: 1615 E Hattie st, Fort worth, TX 76104
Street A ddress
L egal Description: 14 3 Glenwood Addi ti on --------------------------------------Lot
YE S
New Construction/ Addition: K]
Block
NO
D Remodel/ Rehab:
A ddition
YE S NO
□ []
Total New Sq. Ft. 1289 sq ft Total Development Cost: ----'----------
$170,000.00
For a single family project, will the NEZ certified property be occupied by
the property owner as a primary residence?
YE S
□
NO
IRl
If you selected No , please specify if this property will be sold to a homeowner as a primary residence or used as rental
property. Property will be sold to a homeowner as a primary residence.
If your project is a Commercial or Mixed Use project, please list all specific use s that are being proposed:
Incentives
Do you wish to apply for a Municipal Property Tax abatement for this project?
YES NO
IBJ □
If the above answer is yes, please contact the City of Fort Worth Neigh borhood Services Department at (817) 392-7316 or visit
http://fortworthtexas .gov/neighborhoods/NEZ/ for addi tional in form atio n. Tax Abatements are processed after NEZ project
certification and must go before the City Council for a vote. House Bill 3143 took effect on September 1, 2019, which
requires at least 30 days advance notice be given of the tax abatement. Due to compliance with HB 3143, the minimum time
to process a tax abatement to be on the City Council agenda for vote is 12 to 14 weeks after the date of certification.
Applicants requesting tax abatement may not submit for a building permit until the abatem ent has been approved by the City
Council and the applicant has signed a contract.
Revised 4n/2023 SO
DocuSign Envelope ID: 2D0B3F00-808A-48E9-B44B-9AD8C8510B15
fUKT VVUKTH
~®
Application# -----
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
YES NO
Do you wish to apply for a release of NEZ Policy eligible City liens? D [Kl
Weed, Paving, Demolition and Board Up / Open Structure liens only may be released for qualifying projects.
For Zonin Office Use Onl Do Not Check!
Will a Zoning Change application be necessary for this project?
Signature of Zoning Staff:
Acknvwled ements
PLEASE INITIAL NEXT TO EACH STATEMENT
OS
YES
□
NO
~
I understand that my application will not be processed if it is incomplete. I agree to provide any additional information
rmining eligibility as requested by the City. If the additional information is not submitted within 30 days, the application
will be denied and application fees paid will not be reimbursed.
OS
I hereby certify that the information provided is true and accurate. Ifl have misrepresented the facts, I hereby understand
ill be responsible for repaying the City of Fort Worth fill fees and taxes waived through my NEZ certification and I will
no \?nger be eligible to apply for any NEZ incentives in the future.
I hereby certify that all documents and information required by the Application Submittal Checklist is attached.
I hereby acknowledge that I have read the NEZ Basic Incentives and Tax Abatement Policy, which governs the granting
abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives
or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
OS
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
p ~ect. I understand that I am responsible for obtaining required permits and inspections from the City and in ensuring the
projfct is located in the correct zoning district.
ln;/ll I ~derstand that if there are taxes due or liens against any property I own in Tarrant County , I will not be eligible for
~centives.
DI
I hereby certify that the project ~ns submitted with this ap lication meet the NEZ design guideline requirements as
elow or meet 'Strategic Plan guidelines for the Berryhill/Mason Heights, Oakland Corners and IStop 'Six areas as
outlined on the NEZ webpage. I understand that if the project plans do not meet these design requirements, all permits will be
put on hold pending correction . If I choose to relinquish my NEZ certification instead of meeting the design requirements,
payment for all fees waived by the City up to that point will be due immediately and the building permit will not be iss ued until
payment is made.
a. No metal buildings except for industrial projects on property zoned for industrial use.
b.All new construction projects must contain 70% masonry product
c. Exceptions to the masonry product requirement will be made for approved plans within all Local Historic Districts
and the Near Southside, Camp Bowie and Stockyards Urban Design Districts. Applicants must provide a Certificate
of Appropriateness and Supporting documentation for the project with their completed NEZ application. This
exemption applies only to the masonry product requirement. All other design guidelines will not be waived.
d. Compliance with NEZ design guidelines for Council adopted NEZ Strategic Plans (Berryhill/Mason Heights ,
Oakland Corners and Stop Six) is required for certification.
e. Attached garages for new single-family homes may not extend more than 4 feet past the front building wall.
Revised 4rT/2023 SO
DocuSign Envelope ID: 5CA8F434-9A2A-4559-89E2-A 18686EEA350
ruKT VVUKTH
~e
Application# ____ _
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
OS
I understand that ifl have not submitted a NEZ application and do not have NEZ certification, I must pay all associated
ees t the time of project application and/or permit submittal. This includes setting up an escrow account with the City. I
understand that some permits may not be issued while NEZ eligibility is being established . Example : Applications that are
requesting Tax Abatement.
Andy Williams
Printed Name of Property
Owner/Developer
DocuSlgned by:
Sign -o Bl!Uper.ty
Owner/Developer
Please submit your completed application online to:
http://fortworthtexas.gov/neighborhoods/NEZ/apply
5/10/2023
Date
For more information on the NEZ Program Incentives , please visit our web site at
http://fortworthtexas.gov/neighborhoods/NEZ/ or contact our office at (817) 392-7540 or nez NS@fortwo1ihtexas.gov
For more information on Tax Abatements , see the above website or contact the
Neighborhood Services Department at (817) 392-7316.
Revised 8/31 /22 SO
Exhibit 3
Project Description
New Construction of a single family residence
• 1,484 Total square feet with 1,289 square feet of living space
• 1 Story
• 3 Bedroom, 2 Bath
• Open Concept Kitchen/Living Room/Dining Room
• Uti lity/Laundry Closet
• Covered Front Porch
• Separate 1 Car Garage
• Hardi Board Exterior
IL..f f/L,J 1 11.U;:]/"'\IVI lAty OT t-Ort vvortn -rile n: M&C LJ-0847
MC 230947 Version: 1 :;::-,..__
Type: Award of Contract -Report of CM
Title: (CD 8) Authorize Execution of a Five -Year Tax Abatement Agreement with Cultivated Holdings, LLC for
the Construction of a Single-Family Dwelling of Approximately 1,289 Square Feet and Having a Cost of at
Least $146,650.00 on Property Located at 1615 E. Hattie Street, in the Historic Southside Neighborhood
and within Nei9hborhood Empowerment Zone and Reinvestment Zone Area Six
Mover: Michael D. Crain Seconder: Elizabeth M Beck
Result:
Agenda note:
Minutes note:
Action : Approved
Action text: Council Member Crain made a motion, seconded by Council Member Beck, that M&C 23-0947 be
L Votes (0 :0)
https://fortworthgov. leg ista r.com/Leg islationDetail .aspx? I 0=641 0227 &GU ID= B283D F34-AB 14-4A8A-A5 E 1-894F77 FC5 844 1 /1
Cib{ of Fert Worth, Texas .,-
Mayor and Council Communication .,-......
DATE: 11/14/23
LOG NAME: 19NEZ1615EHATTIE
SUBJECT
M&C FILE NUMBER: M&C 2 3-0947
(CD 8) Authorize Execution of a Five-Year Tax Abatement Agre ement with Cultivated Holdings , LLC for the Construction of a Single-Family
Dwelling of Approx imately 1,289 Square Feet and Having a Cost of at Least $146 ,650 .00 on Property Located at 1615 E. Hattie Street, in the
Historic Southside Neighborhood and within Neighborhood Empowerment Zone and Reinvestment Zone A rea Six
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a five -year Tax Abatement Agreement with Cultivated Holdings , LLC for the construction of a single-fam ily dwell ing
of approximately 1,289 square feet and having a cost of at least $146,650 .00 on property located at 1615 E . Hattie Street , in the Historic
Southside neighborhood and within Neighborhood Empowerment Zone and Reinvestment Zone Area Si x ; and
2. Find that the terms of, and the property subject to, the Tax Abatement Agreement meet the criteria and guidelines set forth in the
Neighborhood Empowerment Zone Program Basic Incentives and Ta x Abatement Policy .
DISCUSSION:
Cultivated Holdings, LLC, (Property Owner) is the owner of the property described as Lot 14 , Block 3 , Glenwood Addition , an addition to the City
of Fort Worth , Tarrant County, Texas , according to the Plat thereof, recorded in Volum e 63, Page 76 , Plat Records , Tarrant County, Texas , located
at 1615 E. Hattie Street, Fort Worth , Te xas . The property is located in the Historic Southside neighborhood and within Neighborhood
Empowerment Zone (NEZ) Area S ix .
The Property Owner plans to invest an estimated amount of $146 ,650 .00 to construct a single -family residence of approximately 1,289 square
feet (Project). The Project will be sold to a homeown e r to be used as a primary residence.
The Neighborhood Services Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to
receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives include a five-year Municipal Property Tax Abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ . Residential owner occupied ta x
abatements are capped at the annual median home value as reported by the National Association of Realtors for Tarrant County. This value is
updated annually and is currently $329 ,900.00 .
The Property Owner received a Certificate of Appropriateness from the Historic & Cultural Landmarks Commission for the Proj ect on January 18,
2022 .
Upon execution of the Ta x Abatement Agreement (Agreement), the total assessed value of the improvements used for calculating municipal
property tax will be frozen for a period of five years starting January 2025 at the estimated pre-improvement value as defined by the Tarrant
Appraisal District (TAD) in October 2023 for the property as follows :
Pre-Improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land $18 ,750.0C
iTotal Pre-Improvement Estimated Value $18,750.00
Th e muni ci pa l property t ax on th e im proved val ue of th e Project afte r co nstru ction base d on the ca pp ed va lu e, is estim ated in th e a mount of
$2 ,218 .58 per year, for a total amount of $11 ,092 .90 over the five-year period . However, this estimate may differ from the actual tax abatement
value, wh ich will be calculated based on the TAD appraised value of the property each year up to the capped value.
In the event of a sale of this property , the Agreement may be assigned to a new owner's first mortgage or a new owner as a primary residence . All
other assignments must be approved by the City Council.
This property is located in COUNCIL DISTRICT 8 .
FISCAL INFORMATION/ CERTIFICATION:
I he Director of Finance certifies that upon final approval of the Tax Abatement Agreement , a loss of an estimated $11,092.90 in property ta x
rex ue may occur over the five year period. This reduction in revenue will be incorporated into the long term financial forecast upon the Tax
Abatement be ing officially granted .
"S ubmit'ted for City Manager's Office by: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316
.--Do cuSign Envelope ID : DD08F90C-5 3CC-4172-9F63-9F41 EFEAF5F7
CERTIFICATE OF INTERESTED PARTIES
FORM 1295
1 of 1
Compl ete Nos . 1 - 4 and 6 if th ere are interes ted part ies . OFFICE USE ONLY
Comple te No s. 1, 2, 3, 5, and 6 if th ere are no interes ted pa rti es . CERTIFICATION OF FILING
1 Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number :
of business. 2023-1084519
Cultivated Holdings, LLC
Fort Worth , TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 10/17/20 23
being filed.
City of Fort Worth Date Acknowledged:
3 . Provide the identification number used by the governmental entity or state agency to track or identify the contract , and provide a
description of the services, goods , or other property to be provided under the contract.
NZ23
Tax Abatement
Nature of interest
4 Name of Interested Party City, State, Country (place of business) (check applicable)
Controlling Intermediary
Williams, Andy Fort Worth , T X United States X
Jones, Byron Fort Worth , T X United States X
5 Check only if there is NO Interested Party . □·
6 UN SWORN DECLARATION
My name is Andy Williams , and my date of birth is 11/23/1981
My address is 1431 Evans Ave Fort worth TX 76104 USA ___ ,
(s tree t) (city) (s tate) (z ip code) (coun try)
I decla re un der pena lty of perjury that th e foreg oing is true and co rrect.
Execu ted in Tarrant Coun ty , State of Texas , on th e ~day of October , 20_1i_.
(month) (year)
,r-0.CUS ....... lly: ~-
Sign ,lttifemllWlll!ffl!liili&:1g ent of con tr act ing bu sin ess entity
(De cl arant )
Forms provided by Tex as Ethi c s Commission www.eth ics.state.tx .u s Version V 3 .5.l.cb183824