HomeMy WebLinkAboutContract 44716 CITY 5,ECRETARY
CONTRACT'NOO
TAX ABATEMENT" AGREEMENT FOR PROPERTY LOCATED INi A NEIGHBORHOOD
EMPOWERMENT N
6 12 Lux, o'n Street
This TAX ABATEMENT AGREEMENT ("Agreement") . by and between the
CITE' OF FORT WORTH,"TH T S (the "City"), a home rule municipal corporation organized under
the laws of'the e State of Texas and acting by and through T.M. Higgins, its duly authorized, City Mai-lager,
and Michelle Garner, owner of property located at 612 Luxton Street, Block 1, South 1 of.Lot 12 and all
of Let 13, Glenwood Addition, In the City of Fort Werth, Tarrant County, Te .as, and as shown on the
Plat recorded in Volume 631 page 76, Tarrant County, Texas.,
The City Council of the City of Fort Worth ("City Council" hereby 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. Chapter 378 of the Texas Local Govenu-nent Code allows a municipality to create a
Neighborhood Empowerment done EZ), if the municipality determines, that the creation
of the zone would promote-,
a. The creation of affordable housing, including manufactured housing in the zone;
b. An increase in economic development In the zone.-
e. An increase in the quality of social services, education, or public safety provided to
residents of the.gone; or
d. The rehabilitation o affordable housing in the zone
B. Chapter 378 of the Texas Local owern went Code provides that a municipality that
creates a NE Z, may enter into agreements abating municipal property taxes on property in
'the zione.
C, On July 31, 2001, the City Council adopted basic incentives for property owners who
own property located in a' elowborhood Empowerment Zone, stating that the City elects
to be eligible to participate in tax abatement and includin.g guidelines and criteria
governing tax abatement a reements entered into between the City and various third
e
parties, titled. "Neighborhood Empowerment.�nt Zone "NEZ Basic Incentives"
("NEZ
In.eertves , these were readopted p to o� �� �1 ���l �ese �t�on .
The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement
agreements to be entered into by the City as contemplated by Chapter 312 of the Teas
Tax Code, as amended (the"Code").
E. On November 65 2012, the Fort Worth City Council adopted Ordinance :fie. 20487 (the
610 m* an e") establishing "Neighborhood E powweniient Reinvestment Zone No. "4"
City of Fort Worth °Texas (the "Zone") and adopted Resolution No. 4143 establishing,
"Designation esignation of the Evans and Rosedale area as a Neighborhood Empowerment Zone's
(the"NEE"" .
OFFICIAL RECORD
CEIVIFn RY
5 20 13 CITY SECRETAR
p'age l of 1
Neighborhood Lrnpo�wwer-nent Zone Tax Abatement with Michel � �� an street
FO: Owner owns certain real property located entirely within the NEZ and that is more
particularly described in Exhibit "I", attached hereto and hereby made a part of this
0, 11).
Agreement for all purpo'ses (the'�'�P,rermses
Go, Owner or its assigns plans to rehabilitate the Required Improvements, as defined in
Section L I of this Agreement, on the Premises to be used as an apartment complex (the
"Project").
111 On April 12, 2013, Owner submitted an application fo�r NEZ 'Incentives and tax abatement
to the City concerning the contemplated use of the Premises the "A ppli cation
attached hereto as Exhibit"2,"and hereby made a part of this Agreement for all purposes.
11 The contemplated use of the Premises, the Required Improvements, as defined in Section
1.1, and the terrns 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
Policy Statement, the Resolution and other applicable laws, ordinances, rules and
regulations.
J. The terms, of this Agreement, and the Premises and Required Improvements, satisfy the
eligibility criteria of the NEZ Incentives.
K. 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
located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terrns and conditions
set forth herein, do hereby contract, covenant and agree as follows:
to OWNER'S COVENANTS.
L1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements, consisting of the rehabilitation of(1) an existing 10 unit 5400 square foot multi-
family apartment complex, (1i): having, a minimum construction cost upon completion of
$70,444.00 including site development costs (collectively, the "Required Improvements"). The
detailed list of the Required Improvements is, more particularly described in Exhibit"Y'. Tarrant
Appraisal District must appraise the property (improvements and land) within 1 % of
171 000.00. Owner shall provide a copy of the final construction invoices to City once the
construction is complete-, the cons-truction invoices, shall be a part of this Agreement and shall be
labeled Exhibit "4"'. Minor variations, and more substantial variations, if approved in writing by
both of the parties to this Agreement, 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
Exhibit"4".
Page 2 of 12
Neighborhood Empowen-nent Zone Tax Abatement with Michelle Garner for 612 Luxton Street
1.2. Completion Date of Reg uired Improvements.
Owner covenants to complete construction of all of the Required Improvements by May
21, 2015 (the "Completion Deadline"). The Required Improvements shall be deemed complete
upon the issuance of a final certificate of' occupancy for the Required Improvements by the
Planning and Development Department. Provided however, if 'the Owner, fails to complete
construction of the Required Improvements by the Completion Deadline or f4ils to expend at
least Seventy Thousand, Four Hundred Forty Four Dol,lars ($70,444.00) in Construction Costs for
the Required Improvements by the Completion Deadline as provi,ded in Section 1.1 of -tWs
agreement; the City shall, have the right to terminate this Agreement by providing written notice
to the Owner without further obligation to the Owner hereafter.
1.30 Use of Prenn'ses,
Owner covenants, that the Required Improvements shall be rehabilitated and the
Premises shall be continuously used as an Apartment Complex and in accordance with, the
description of the Project set forth in the Exhibit "Y'. In addition, Owner covenants that
throughout the Tenn, the Required Improvements shall be operated and maintained for the
purposes set forth in this Agreement and in a manner that is consistent with the general
purposes of encouraging development or redevelopment of the Zone.
1.4. Pro er a"mtenance.
I
Owner covenant to ensure high quality management and maintenance of the, Premises
for the duration of the abatement that the building is suitable for occupancy, taking into account
local health, safety, and building codes and that Owner will comply with all building, codes
requirements imposed by the state or local government unit responsible for making building
code inspections. If a violation report or notice is issued by the governmental unit, the Owner
must provide to City either a statement sum man*zing, the violation report or notice or a copy of
the violation report or notice, and in addition, the Owner must state whether the violation has
been corrected. Failure to maintain property as described above will constitute an Event of
Default and Tax Abatement will be terminated.
2. ABATEMENT AMOUNTS,TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner real
property tax abatement on the Premises, the Required Improvements, as specifically provided in this
Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort Worth
imposed taxes and not taxes from other,taxing entities.
2.1. Amount o Abatement.
The actual amount of the Abatement granted under this Agreement shall be based upon
the increase in value of the Premises, the Required Improvements, over their values on May 21,
2013, the year in which this Agreement was entered into, and certain guidelines set forth in this
Section 2.
Page 3 of 12
Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612, Luton Street
vu
2.1.1. Abatement Based on Construction EXpenses
20% Affordable Houst
Units,
Owner shall receive a 100 percent (%) Abatement for 5 year's on the increase in value of
the Premises over their values on May 211) 2013, due to construction of the Required
Improvements and shall not apply to, taxes on the land, nor shall the abatement apply to mineral
interests if Owner meets all of the following requirements,
2.1.2.1 Spends at least $70,444.00 on construction costs of the Required
Improvements (including, but not limited to, site development costs) =d; Set aside one
one-bedroom and one tw ►-bedroom unit for families with income at or below 80% of
Area Family Median Income (AMFI). The maximum income and rent allowable, for the
units is attached as Exhibit "51"'. In addition one of the units shall be compliant with the
Amen*cans with Disability Act (AD A) and fully accessible to persons with sensory
impairment. The specification for AD A compliant and sensory impairment accessibility
units 'is attached as Exhibit "6". In. no event shall Owner unreasonably deny an income
eligible tenant's application. In the event that the set aside units fall below the
requirement, Owner shall bring the set aside back into compliance within the time
specified in section 4.
Determination, of compliance with the two (2) units set aside for families with
income at or below 800/0 of median income requirements of this Section 2.l.2 shall be
based on Owner's occupancy data on August I of each year during the Compliance
Auditing Ten-n, as defined in Section 2.5.
The maximum percentage of Abatement available to Owner under this Section
2.1. is 10,0 percent (100%). Owner shall not be eligible for any of the Abatement under
this Section, 2.1. unless Owner meets all the requirements set forth in all subsections in
the paragraphs, above. In addition, if the total construction costs of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, Owner will
be ineligible to receive the Abatement under this Section 2.1.2.1, but an Event of
Default, as defined and addressed in Section 4, shall also occur.
2.3. Abatement Lirm-tat iono
Notwithstanding, anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of'the Premises,
over their values on May 21, 2013, including the Required Improvements, up to a, maximum of
$105,666.00. In other words, by way of example only, if the increase in value of the Premises
including the Required Improvements, in a given year is S300,000.00 Owner's Abatement for
that tax year shall be capped and Calculated as if the increase in value of the Premises for that
year had only been $105,666.001.
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.,
Page 4 of 12
Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for b Luxton Street
2.5. Terms.
January I of the year -following the year in which a final certificate of occupancy is
issued for the Required Improvements will constitute the start of auditing for compliance of this
Agreement ("Compliance Auditlng Term""). Taxes will not be abated during the first year of
the Compliance Auditing Term. The tern of the Abatement benefit (the "Term") shall begin on
January I of the year following the year that the Compliance Auditing Term begins (the
"Abatement Begs nm* g Date""). Unless sooner terminated as herein provided, the Term and the
Compliance Auditing Term shall end on the December 31st immediately preceding -their
respective fifth (5 t) anniversaries. Information for the last Compliance Auditing 'Term, shall be
submitted as indicated in Section 3.3.
# fee,
2.6. Abatement Al2plimo cann I ee,
The City acknowledges receipt from Owner of the required Abatement application fee of
point five percent (.5:%) of Project si estimated cost,, not to exceed $2,0100. The application fee
shall not be credited or refunded to any party for any reason.
RIE,CORDSIAUDITS AND, EVALUATION OF'PROJECT,
A 0
3*1* Inspection of Pre 0 nuses.
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
re le notI ce to wnor,
the City shall have and Owner shall provide access to the Premises
asonab ' O
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. Aud1*+L*s#
The City shall have the right to audit the financial and business records of Owner that
relate to, the Project and Abatement to and conditions, (collectively, the "Records""), at any
time during the Compliance Auditing Term in order to determine compliance with this
Agreement. Owner shall make all 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.
19%
3. i,31. Provisoin oi I Informatl'on.
On or before February I following the end every year during the Compliance Auciting
Term, 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,. This information shall include, but not be limited to, the following,-.
3.3.1. The number of units occupied by families with income at or below 80% of
(AMFI) and the rents for those units.
Page 5 of' 12
Neighborhood Empowerment one Tax Abatement with Michelle Garner for 612 Luxton Street
owner shall supply any additional information requested by the City in its evaluation of
Owner's compliance with each of the terms and conditions, of tl�is Agreement. Failure to
provide all information required by this Section 3.3 shall constitute an Event of Default, as
4,
defined in Section 4.116
6 *
3.4. Determmation of Compliance.
On or before August I of each year during the Compliance Auditing Term, the City shall
make a decision and rule on the actual armual 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.
4.1. Deftned.
Owner shall be in default of this,Agreement if(i) any of the covenants, set forth in Section
11 2 and 3 of this Agreement are not met; or(ii) ad valor ern real property taxes with respect to the
Premises or the Project, 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; or (iii) subject to Section 2.1 of this Agreement, Owner breaches any of
the other terms or conditions of'this Agreement(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 ninety (90) calendar days from the date of receipt of this written notice to filly 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
(1) after advising the City Council in an open meeting, of Owner's efforts and intent to cure,
Owner shall have one hundred eighty (180) calendar days from the original date of receipt of the
written notice, or (ii) if Owner reasonably believes that Owner will require more than one
hundred eighty (180) 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. Ternfination for Event of Default and Payment of L quWated Dama
If an Event of Default 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)
Page 6 of 12
Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street
require unplanned and expensive additional administrative oversight and involvement by the
City-, and (iii) otherwise han-n the City, mid Owner agrees that the our of actual damages
therefrom are speculative in nature mid will be difficult or impossible to ascertain. Therefore,
upon tennination 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 tl�s 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 it 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. TermMation 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 ten-ninate this Agreement in a written format
that is signed by both parties. In this event, (1) if the Term has commenced, the Tenn shall expire
as of the effective date of the ten-nination of this Agreement, (11) there shall be no recapture of
any taxes previously abated-, and (iii) neither party shall have any further rights or obligations
hereunder.
4,5 Sexuafl, flented Busm* ess & Li Sitories or Parka Stores.
-v 0 1 iguor MM"
a. Owner understands and agrees the City has the night to terminate this agreement,,
without cause, if the Project contains or will contain a sexually oriented business.
b Owner understands and agrees that the City has the night to terminate this
agreement, without cause, as determined in City's sole discretion if the Project contains or will
contain a liquor store or package store.,
5. EFFECT OF SALE OF PREMISES.
Company may assign this Agreement and all or any portion of the benefits, provided hereunder
to an Affiliate without the consent of the City, provided that (i) prior to or contemporaneously with the
effectiveness of such assignment, Company provides the City with written notice of such assignment,
which notice shall include the name of the Affiliate and a contact name, address and telephone number,
and (ii) the Affiliate agrees in writing, to assume all terms and conditions of Company under this
Agreement. For purposes of this Agreement, an "Affiliate" means all entities, incorporated or
otherwise, under common cointrol with Company, controlled by Company or controlling Company. For
purposes of this definition, control"' means, fifty percent (50%) or more of the ownership determined
by either value or vote. Company may not otherwise assign this Agreement or any of the benefits
provided hereunder to another party without the consent of the City Council, which consent shall not
Page 7 of 12
Neighborhood Empowerment one Tax Abatement with Michelle Garner for 612 .Luton Street
unreasonably be withheld or delayed, provided that (1) the City Council finds that the proposed
,1 0
assignee is financially capable of meeting the terns and conditions of tnis Agreement and (ii) the
proposed assignee agrees in writing to assume all terms and conditions of Company under this
Agreement. Any attempted assignment without the City Council's prior written consent shall constitute
grounds, for tennination of this Agreement and the Abatement granted hereunder following ten (10)
calendar days of receipt of written notice from the City to Owner.
0
In no event shall the abatement ter extended in 'the event of a subsequent sale or
assignment.
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. Owner. And
City of Fort Worth Michelle Garner City of Fort Worth
Attn: City Manager 4528 Tacoma Terrace Housing,& Economic Dev.
1000,Tfffockmorton Fort Worth,Texas 76123 Attn: Jay Chap:a
Fort Worth, Texas 76102 101010 TI-irocki-norton Street
Fort Worth, Texas 76102
7. MISCELLANEOUS,
7.1. Bonds,.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders ofd outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Prernises, nor any of the Required Improvements covered by this 'A' eement
are owned or leased by any member of the City Council, any member of the City Plan or Zoning
Commission or any mega 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 shalt control. In
the event of any conflict between the body of-this Agreement and Exhibit " ', 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
Page 8 of 1.2
Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 61 2 Luxton Street
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Premises and/or Required Improvements.
7.5, Ci!y Council Authori*Lzati'on,
This Agreement was authorized by the City Council through approval Mayor and Council
Communication No., C-26270 on May 21, 2013, which, on other things, authorized the City
Manager to execute this:Agreement on behalf of the City.
7.61. 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,,
which if requested will be addressed to the Owner, 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 to of this Agreement, the levels and remaining to of the Abatement in
effect, and such other matters reasonably requested by the party or parties to receive the
certificates.
7.7'. Owner Standi'n2,
Owner shall be deemed a proper and necessary party in any 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 Jurisdi"dion,
This Agreement shall be construed in accordwice 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'i arrant County, Texas.
7.9 Severab
If any provision of this Aueement 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.
7.101 Headm dot Contro
Headings and titles used in this Agreement are for reference purposes only and shall not
be deemed a part of this Agreement.
Page 9 of 12
Neighborhood Empowerment Zone,Tax Abatement with Michelle Garner for 612 Luxton Street
7.1,11. Enti"rety of,�greement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by 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 conternporaneous 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. igina
I , each of which shall be considered an or' 1, but all
of which shall constitute one instrument.
CITY OF FORT' WORTH.-
I-A ar
,aay
0 9 641--now By:
By:
Fernando Costa ichel.le Garner
Assistant City Manager
fo
NOWOOF
ATTES low
B y %
NO 0,
ary Kay� elm
City Secretary
APPROVED AS TO FORM AND LEGALITY:
B y
Melinda Ramos
Assistant City, Attorney
M & C.. 0-26270
0 fic
f 0104to Rfocooft
at
f
C01V
Page 10 of 12
Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 6112 Luton Street
STATE OF TEXAS §
COUNTY OF TAJZRANT §
BEFORT." ME, the Lindersigned authority, on this dad personally appeared Fernando Costa,
As,sistant City Manager of the CH"Y' OF FORT WORTH, a 111unici a] corporation, known to me to be
I y p 1
the person and officer whose narne is subscribed to the foregoing instrument, and acknowledged to me
that the same was the act of the said CITY OF FORT WOR'TH, TEXAS, a mtjnlclpa,l corporation,,, that
he was duly authorized to per ors the seals by, pprop riate resolution the City Council of the Ci,ty of
Fort Worth and that he executed the sarne as the act of the said City for the puirposies and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND S. ',AL OF OFFICE this day of
10 13.
r
Nc&ry !"Libile in and for
A DANIELS
C, Stote,of'Tpexos
the S, te of'Texas;
MY Commisslori,Expires
JL11V 10, 2017
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF 'TaWZAA,�, - _§
BEFORE ME, the undersigned authority, on this, day personally appeared Michelle Garner, known to
me to be the person whose name iis, subscribed to the foreglo ng instrunient, are acknowledged, to, rne
that she executed the same for the purposes and consideration therein expri,:,-ssed, in the capacity therein
stated.
GIVEN UNDER MY' I-IAND AND SEAL OF 01-TICE this
day of
vl� 2013.
AV A,i -iof
'Notary Public in and for L:IS,A GARCIA '
NOTARY PUBL TEXAS
IC STATE Or
The State of exas COMMISSION EXPIRES:
01—26-20,16
'Notary's Printed Name
Page I I of 12
Neighborhood Em,powerment Zone Tax Abatement with Michelle Garner or 61 2, I....uxton, Street
Exhibit : Property Description
Exhibit Application. NEZ) incentives and Tax Abatement
ent
Exhibit 3.: .detailed Project ect Descr pti n
Exhibit Final Construction Invoices
Exhibit 5: Income and Maximum dent Table
Exhibit 6: ADA Compliant Accessibility Improvements
Page 12 of 1
Neighborhood Empowerment gone Tax Abatement with Michelle Garner for 612 L uxton Street
Exhibit I
Pr !j Dyer" floe
612 Luxton Street, Block 1, South 1 of Lot 12 and all of Lot 13, Glenwood, Addition, in the City of Fort
Worth, Tarrant County, Texas, and as shown on the Plat recorded in Volume 63, Page 76, Tarrant
County, Texas.
Exhibit 2
FORT WORT `:0.
Application N
CITY OF FORT WORTH
NEIG'HBORHO�O'D EMPOWERMENT ZONE (NEZ) PROGRAM
IN
PROJECT CERTIFICATION APPLICATION
III .. = I .— -0— 1
X
APPLICATION CHECK LIST' - Please sub�mit the following documentati0n,.,
A completed application form
A list of all pirolplerties owned by the applicant,owner,developer,associates, principals,partners,and agents
in the Citv Fort Worth
Non Refundable Application fee—For all Basic Incentives applications excluding Tax Abatement,the
application fee is$25.00. For multifamily,commercial, industrial,,commercial facilities,and mixed-use tax
abatement applications:0.5%,of the total Capital Investment of the project, with a$200.00 minimum and
not to exceed$2,000.00; For residential 'tax abatement applications-. $,1 0.00 per house.
Proof of ownership,such as a warranty deed,affidavit of heirship,or a probated w, ll OR evidence of'site
control,such as option to buy(A registered warranty deed is required for tax abatement application.)
Title abstract of the property(only if applying for release of City liens) yt/A
A reduced I I x,17 floor plan,site plan,and site elevation with
a,written detailed project description that includes a construction time line
A detailed line itern budget showing the cost breakdown for the project
L
_J Copy of Incorporation Papers noting all principals,partners,and agents if applicable
Required - Meet with the Councilmember and Neighborhood& other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEZ Po�licy and Guidelines revised April 6,2004 or
followed guidelines of Z Strategic Plan if a Strategic Plan is in place for the specific NEZ.
El Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation For projects located in Woodhaven NEZ only 1,4#,
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED
DOCUMENTS SHOWN IN THE ABOVE, CHECKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE
APPLICATION IS RECEIVED.
YOU MUST APPLY FOR "FAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAKES 60 TO 90
BUSINESS DAYS TO COMPLETE THETAX B ATE MENT' AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. ALL
BUILDING PERMIT'S MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED, OR WITHIN THE 12, MONTH PERIODT"AT THE TAX ABATEMENT WAS APPROVED,OR YOU
WILL BE REQUIRED TO RE-APPLY FOR NEE INCENTIVES.
01— NMI
APPLICANT AGENT INFORMATION
1. Appli,cant'. 2. Contact Person-.
77
3. Address.- (0 jz
C
Street I 6t.y
State Zip
4. Phone no..* 5. Fax No. 7 7
61. Email-.
L
7. Agent if any)
8. Address-,�
4
Street city State Zip
9. Phone n,o. 1 Fax No.-.
11. Emai I
Revised July 22,2010,
T :746 1
■
Fo RT WORT H
ApplicationNo. Pv
PROJECT ELIGIBILITY
1. Please list down the addresses and legal descriptions of the project and other properties Four
organization owns in Fort Worth,. Attach metes and bounds description if no address, or legal
description is available. Attach a map showing the location of the project.
Table I Proper Ownership
Address, Zip Code I,eaal escrintion
(Pr2ject Location) Subdivision Name Lot No. Block No.
Other properties owned in the City of Fort Worth continue on a separate sheet and attach if necessary.,
.7
2. For each property listed in'Table 1, please check the boxes below to indicate if'.-
0 there are taxes, past due; or
0 there are City liI
,ens-, or
You (meaning, the applicant, developer, associates, agents, principals) have been subject to a Buildiing
Standards Commission's Order of Demolition where the property was demolished within the last five
years.
Table 2 fro perty Taxes and City Liens
Property City Liens on Property
Address Taxes We -Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
L41wel K-f
1 4111-
Li
(Please attach additiona,l sheets of per as needed.)
If there are taxes due or liens against any property in the City of Fort Worth you may,not be eligible
for NE Z incentives
Revised July 22,20 10 2
MIDVI'WORTH
J
'ration No.
3. Do you own, other,properties under other names Yes, ` No
If'' es, Please specify
4. Does the proposed project conform with City of Worth Zon Iing 10 Yes No
If no, what steps are being taken to, insure compliance.
5. Proi ec t El
Type,-. Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
Owner Occupied
ental Property
6. Please describe the proposed residential or commercial pro"ect-
kil
7. If your project i's a commercial., industrial,or mixed-use roject, please describe the types of
businesses that are being proposed. L111 0 K 4
8. Is this a new construction or rehab project New Construction Ql.ehab
9. How much I's the total development cost of your pr Ject? 66CD
0)
10. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant'Appraisal District(TAD)
assessed value of the structure during the year rehabilitation occurs? Udes [:1 No
*Eligible rehabilitation includes only physical improvements to real property, It does NOT include:
Front yard fencing consisting of chalin-link or solid material construction;personal property such as ffirnitUre,
appliances,equipment,and/'or supplies.'Total eligible rehabilitation costs shall equal to,or exceed 30%of the
Al appraised value of the structure during the year rehabilitation occurs.
11. How much is the total square footage of your roi
p Ject? square feet
If applyling for a tax abatement please answer questions 12,— 16.If not skip to part III In
12. For a single-family homeownership, mixed-use, r multi farm! develop meat_-12roiect:, please fill out
the number of residential units based on income range of owners or renters in the following table.
Table 3 Number of'Residential Units and Income Range of'Owners or Renters
Number of Units Percentage
Income Range
>80%of AMFI**
At or below 80%of AMFI
Total Units
**!AMFI,.Area Median Family Income. Please see attachment for income and housing payment guldelines.
Aft on
13. For a multiiamlM Loji-ceCt to be qualified for tax abatement, at least 2,0% of total units shall be
affordable to families at or below 80%of AMFI. Check the box, if you are requesting a waiver of this
requirement. 0
1.4. For a commercial, industrial or commutil facilities proiect, indicate square footage of non-
r idential space.
esi I
Commercial Industrial Community Facilities
square feet squ
square feet are feet
I-_ 'I _J
Revised July'22,2010 3
FUTWORTH
Appficatk)n NO.
15. How much will be your Caplital Investment"* on ,e project? Please use the foll�owing table to provide
10
the detal'Is and amount of'your Capital Investment(Attache d addi I tional sheets if necessary),
Table 4 Itemized Bud et of the Project
Items Amount Notes
Total
**Capi.tal Investment includes only real property improvements such as new facilities and structures,site impro-v--eiments, facility
expansion, and facility modemization. Capital Investment DOES NOT include land acquisition costs and/or any existing
improvements,or personal property(such as machinery,equipment,and/or supplies or inventory).
#ind # 0
16. For a, commercial ustrial communl!y facill mixed-use project, how many employees will the
project generate? -14ik-
17. For a mked-use proje t Tease indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a i"Aixed-Use Project
Type Square Footage Percentage
Residential
0f C e
Eating ...............
Entertainment
Retail sales � .
Service
Total
01,
III* INCENTIVES What I*nce rte ves are you applying for?
unit al Pro pertyTax Abatements
Must roe id' F1'nal Plat Cablinet and Slide for Tax Abatement Cabinet Slide-
5 years
OResidential owner occupied Re dentin Rental Property aapartments(5 plus units) Commercial
Development Fee W.ai'vers,
All building permit related `e (including Plans Review and Inspections)
Plat application fiee(includiing concept plan,preliminary plat, final plat,short form replat)
Zoning application fee Board or Adjustment application fee
Demolition fee, Structure moving fee
El Community Facilities, Agreement,(CFA)applicationfice
D Street and utility easement vacation application fee
Impact Fee Wal'ye•s, -The maximum wtiter/wastiewtiter impact fee,waiver amount for a commercial, indusitdal,mixed-
use,or commupity facility development projects uivale!n�t to the water/wastewat,er impact fee of two 6-inch mtiters
0 Water (Meter Size (No. of meters, Transportation
Release of City Llens I A
Weed liens Paving liens <Board up/open structure liens
Revised July 2 2,201 0, 4
F40RT WORTH
Application No.
f 11. A,(,KN0W11_JEDGVlEN"rS
I her Certify, t1 (at the information provided iS tRIC and accurate to the best of nly knowledge. f hereby,
acknol.�iledg at I have received(a copy of NNE Basic I ncentives, which governs the�,lranting of"lax,abatenets, f�ee
th,
waivers and rele-ase of' City hiell.s, anid that any VIOLA]"10N of" the terms of the N13*Z B�asic Incentives or
�MISREI."R,-F--'.SF-,NTA'TIO,Ni shal i constitute g rejection et' tion or termination of incentives ,It the
grOUnds For of an applica
discretion of'the City.
1, undcl-slair)(1 that fl'ie approval of fie waivers arid other inceritives shall not be deerned to be tapproval of any aspect of
the project. I unde-stand that I at responsible in obtaining, I-C(lUired perfflit.S, and inspections, frrom the City and, in
I
ensuring the pro.ject is loccated in the correct zoning district,
I i,,indcrstlind that riiy application i-iot be processed if it is incoilliplete, I agree to Provide any additional
ii,)Connation, for determining chgibility as,requested by the Cilty.
00
(1,41INTED OR'I'VIIIED NAME) U, '110RIZED SIGNATURE) (DATE)
001-
11 lease mail oi-fax your appilicattion to,
City of Fort Worth Planning and Development Department
t000Throckinorton Street, Fort Worth, rexas 76102
It I Tel 6- (817)392-2222 Fax:(817)392-8116
E:Ieclri('�nic version of this lbriii is,available on our webs-ite, For nilore information on the NI-.1'.Z Progr4am, please visit
our%veb at Nvw�v,f'ortwortligt)v.org/plarinin,g�llitideve'lt)lpinent
For Office 1, s Only
Apl,.)1ic,Wion No, �S_00tu 5 which, NE37"? o" District
Application Comp-l"ciod"Dfite(Received Dcate): Conform with Zoning? Ej Ycs DNol
ry PC S F [�/M u I t i fa Ili i I y C i(a,I 1al Community facilities., 7 Mixed-Use
_1 comnlel 0 lodusti
Coristruction coiMpletiolii date? Before,Nt.'7 �After NU Ownership/Site Controf [:]'Yes []No
TAD Accourit No, Consist etit with the NFliz plan? Pyes El No
es Yes No
Nlect affordability test? yc No, minin-11.1111 Capital Investn')CT11"? I
Rehab at or,higher than 30'%'? L_� -_s, No Meet mixed-use deflintion? C
j Y c Y [I No
TaX CL11-RN1t 011 thiS j))-10Pe1`t)1'? 5;rYeS N ol 'Tax current on other properties? F_:_�ry c s F] No
("."ity ficiis on this property? fiens on n1her propertiesO
• Weed liens y e s [ 'No # Weed liens
Y cc, No
• 11oard-Uj)/0[')Ct1 S(I-UCtUre liens 7 Yes F 0 # Board-up/opeti struicture l'iens
0 Ye o,
* 1 tion,hem Yes
No * Deinol'flon liens Y C S
'Y es No
• avincy liens �__j Yes 0 11'etving,Hells
40 Yes No
# Order ol"Clemolition Yes
ce i-ti flied'? Ell No Cei,I I llicd by Date oertifica,tion issued?
I J,n()t C e 1-t ifit e d I r e ILI s ol n
11ollsitij,), j)e r e,ri t Water MCode TP W'
El
Rcvised,tufty 22,20 10
Exhibit 31
Project Description
Rehab,flitation of a 5400 square foot, 10 unit apartment building. Consisting of updating the following
in each unit:
Updating/repain'ng plumbing
Updating/repain*ng electrical
Replacing Flooring
Kitchen Remodeling
Bathroom Remodeling
Painting Interior and Exterior
Updating/repairing HVAC
Exhibit 4
Final Construction Invoices
Will be provided to City after construction is complete and final Certificate of
Occupancy is issued.
r_.xt 5
Maxim um Income and Rent Table
Income
Limit c�
4
Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
r a" ,
Annual
Income $ 6 900 $427150 $47,4010 $52,650, $56,901! 61 y 1 $65 300 9,5010
Limit "r"
n r�Ywyn�,�r��rr"sls���err✓'�s
M a x i m NON m ✓d'�S,,//^'r �' M d((.r�✓!M`
✓ sw Psr ierl �,' ,
rat'+��f���r;r'��rr✓{y�Mbl i'�d�
o � 6
r p Iw��7f���L�(wr�ar✓k`�1���t I�'
Beat
$922.59" $1,,' 53.x`5 $11'185-00 $1 o31 6.25 $1,422.50 $1,527.50 $1,632.5 1 $11737.50
E x hib I*t 6
ADD, Compliant Access,ib it I'm ,oments
All door openings must be at least 36 inches wide
Door hardware must be ADA compliant and have a shape that is easy to grasp
only using one hand and must be able to be operated without any tight grasping,
pinching or wrist twisting. The hardware must be installed no higher than 48
inches from the floor.
Entry door thresho d can be no higher than 1/2 inch high for ease of access with a
wheelchair.
Flooring in apartment rooms must be one level. No sunken or elevated rooms.
Building access must have an accessible route that allows for unloading of
disabled individuals from, a car or parking spot. The route must be at least 36,
inches wide and have a slope no greater than 1:20.
%T&CReview
------------
4
FORT WORT 11
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I IN 11111 IN 11 1 1 NOW— 11 IN lllillool�11 'a IN
01r�_
/COUNCILA,,C",/.T�,10�,Wr"e6,/,,/,"',Appr,,,OVOlct"";'//'O,,',,,/
DATE, 5121/2013 REFERENCE NO.:C-26270 L,O,G NAME: 17NEZ612LUXTON
0
C 0 D EX,, C TYPE. NON-CONSENT PUBLIC HEARING: NO
SUBJECT,,- Authorize Execution of a Five-Year Tax Abatement Agreement with Michell Garner, for
the Rehabilitation of a Two-Story,, Ten Unit Apartment Building on Property Located at
612 Luxton Street in the Evans, and Rosedale Neighborhood Empowerment Zone
(C�OUNCIL DISTRICT 8)
RECQMMEND,ATI
It is recommended that the City Council authorize execution of a fivie-year Tax Abatement
Agreement with Michell Garner, for the rehabilitation of a two-story, ten unit apartment building on,
property located at 612 Luxton Street in the Evans and Rosedale Neighborhood Empowerment
,Zone, in accordance with the Neighborhood Empowerment Zone Tax Abate�meint Policy and Basic,
Incentives.
Michel,l Garner(Property Owner)�, is the owner of the property described as the South 1/2 of Lot 12
and all of Lot 131, Block I,, Glenwood, Addition, an Addition to the City of Fort Worth, Tarrant
County, Texas, according to the Plat recorded in Volume 63,1 Page 76, Plait Records, Tarriant
County,, Texas, 612 Luxton Street, Fort Worth, 'Te�xas, 76104. The property iis located within, the
Evans, and Rosedale Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of $70,444.00 to rehabilitate ai two,-sto:ry,
101 unit apartment b�u,iildinig (Project). The Housing and Economic Development Department
reviewed the application and certified that, the Project met the elig,ibility criteria to rece�ive a
M:u,nicipal Property Tax Abatement,. The NEZ Tax Abatement Policy and Basic Incentives includes
a five-year, Municipal Property Tax Abatement on the increased value of improvernents to, the
qualified owner of any new construction or rehabilitation within the NEZ,.
In accordance with the NEZ'Tax Abatement Policy and Basic Incentives, 20 percent of the units,
shall be affordable (as,defined by the U.S. Department of Holus,ing and Ulrban Development) and
set aside to persons with incomes at or below 80 percent of area median income based on family
siize. In a,iddi,tion, at least five percent of the total units constructed or rehabilitated shall be
com�pliant with the Americans,w�ith Disabilit Act (ADA) in accordance with Section 504 of the
Y
Rehabilitation Act, and must be,fully accessible and two percent of the total uin,i,ts constructed must
be fully, accessible to persons with sensory impairments.
Upon execution of the Agreemen�t, the total assessed valuie of the improvements used foir
calculating municipal property tax will be frozen for a period of five y�ears s,tartinig Januiary 2014 at
the estimated p�re,-im prove mient value as defined by the Tarrant Appraisal District JAD) on May
21�� 2013 for the property as follows:
Pre-improvement T'AD Value of Improvements $ 102,704.00
Pre-Improvement Estimated Value of Land _$44J,25.0Q
littp://apips.cfwnet,.orgicounciI
_packet/mc.-review.asp"?I D=I 8468&counci1date--5'21/20 13[05/2 /20 3 12:5181:42 PM
M&C Rcview
Total Pre-Improvement Estimated Value $106,829.00
'The municipal p�ro�p�erty tax, on the improved value of Project after constructio�n Is estimated in the
amount of$6012.30 per year for a total in the amount of$3,0111.48 over the five-year
period. Holwever, this estimate may differ from the actual tax abatement value, which will be
calculated based on the TAD appraised value of the property.
In, the event of a sale of this property, the Tax Abatement Agreement may be assigned to an
affiliate without the consent of the City Council or to a new owner with City Council approval, only
if the new owner meets all of the eligibility criteria as stated in Tax Abatement Policy and
Basic I n:centivels.
This property is located in COUNCIL D,IS,TRIC .
EISC,AL,,,,-INE'QR,MAIIQN,ICERTI,EICAII.QNIOI
The Financial Management, Services Director certifies'that thiis action will not increase the total
appropriations on City funds,.,
,IQ EupdLAQc"nfLCenterg FRQM,EundLArecountLCenters,
Fernando Costa (611,22)
1 fQr C*ty Manaagefi.9ffice
Qepartmgnt Head; Cynthia B. Garcia (8 187)
oil
Addifi'Qnal,Informat'gn -C.Qntact Sa�rah, idle (7316)
AIJAC-H.M.ENT'S,
Q12 Lu.2itQp__Qurren1.pdf
a12_U.xton..N,F.Z Maaapdf
Imp-.//apps,.lcfw net.lorg/counci[_packet/mc—rev i ew.asp?1D=18468&counc i Id e=5/21/2013[05/22/2 013 12:58:42 PMJ