HomeMy WebLinkAboutContract 62661FORT WORT "' H.
NEIGHBORHOOD EMPOWERMENT ZONE
TAX ABATEMENT AGREEMENT
New construction single -family -owner
140 Cottonwood Street
City Secretary/ e)(� I
Contract 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 CD & CP Real Estate
I, LLC, owner of property located 140 Cottonwood Street, Lot 3, Block 2, W. J. Meyers Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof Recorded in
Volume 1337, Page 115, Plat Records, 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. On June 11, 2024, the Fort Worth City Council adopted Ordinance No. 26961 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.111 through 811" City
of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5968 establishing "Designation of the
Neighborhood Empowerment Zone Areas One through Eight" (the "NET').
B. Owner owns certain real property located entirely within Zone 4R and that is more particularly
described in Exhibit "l", 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 Improvements, as defined in Section 1.1 of
this Agreement, on the Premises (the "Project").
D. On October 15, 2024, 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 Improvements 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 located. OFFICIAL RECORD
CITY SECRETARY
Page 1 FT. WORTH, TX
NEZ Tax Abatement Agreement — CD & CP Real Estate I, LLC
140 Cottonwood Street
M&C 24-1157 Annroved: December 10. 2024
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 follows:
1. OWNER'S COVENANTS.
1.1. Real Pronertv Imnrovements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of a single-family residence, of approximately 1,808 living space 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. Comnletion Date of Reauired Imnrovements.
Owner certifies that the Required Improvements will be completed within two years from the
date of Council approval. The abatement will automatically 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.
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 October 2024, and this amount is $0.00.
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NEZ Tax Abatement Agreement — CD & CP Real Estate I, LLC
140 Cottonwood Street
M&C 24-1157 Aooroved: December 10. 2024
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 $380,220.00 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 October 2024,
in a given year is $381,000.00, 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 $380,220.00.
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 and sold to a Home Owner
("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31
immediately preceding the fifth (51h) anniversary of the Beginning Date.
2.4 Protests Over Annraisals 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.
3. RECORDS. AUDITS AND EVALUATION OF REOUIRED IMPROVEMENTS.
3.1. Insnection 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
any time during the Compliance Auditing Term in order to determine compliance with this
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NEZ Tax Abatement Agreement — CD & CP Real Estate 1, LLC
140 Cottonwood Street
M&C 24-1157 Anoroved: December 10.2024
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.
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. L; (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 of receipt 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
(90) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably
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NEZ Tax Abatement Agreement — CD & CP Real Estate 1, LLC
140 Cottonwood Street
M&C 24-1157 Annroved: December 10.2024
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 Pavment 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 & Liauor 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 agrees to,
the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and Required
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NEZ Tax Abatement Agreement — CD & CP Real Estate 1, LLC
140 Cottonwood Street
M&C 24-1157 Annroved: December 10.2024
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 of receipt 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
100 Fort Worth Trail
Fort Worth, Texas 76102
and
Neighborhood Services Department
Attn: Director
100 Fort Worth Trail
Fort Worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
Owner:
CD & CP Real Estate I, LLC
3815 Austin Ln.
Fort Worth, Texas 76111
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.
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NEZ Tax Abatement Agreement — CD & CP Real Estate I, LLC
140 Cottonwood Street
M&C 24-1157 Annroved: December 10.2024
7.2. Conflicts of Interest.
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 body of this Agreement and Exhibit "3 ", the body of this Agreement shall control.
7.4. Future Annlication.
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. 24-1157 on December 10, 2024, which, among other things, authorized the
City Manager to execute this Agreement on behalf of the City.
7.6. Estonnel 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 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 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.
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NEZ Tax Abatement Agreement — CD & CP Real Estate I, LLC
140 Cottonwood Street
M&C 24-1157 Annroved: December 10.2024
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 Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
7.11. Entiretv of Agreement.
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
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.
Page 8
NEZ Tax Abatement Agreement — CD & CP Real Estate 1, LLC
140 Cottonwood Street
M&C 24-1157 Annroved: December 10.2024
CITY OF FORT WORTH:
By: )
Jesica McEachern
Assistant City Manager
OWNER:
By: --644
Guadalupe Z Zora, Member
CD & CP Real Estate I, LLC
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ATTES °°0� °00
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Byinyiette
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Goodall °°°° �a°OO°°°°°°°.dy Secretary a�a� no 444aa
APPROVED AS TO FO ND LEGALITY:
By:
Christopher Austria
Sr. Assistant City Attorney
M & C: 24-1157
Date Approved: December 10, 2024
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Page 9
NEZ Tax Abatement Agreement — CD & CP Real Estate 1, LLC
140Cottonwood Street
M&C 24-1157 Annroved: December 10. 2024
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Jesica
McEachem, 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 she was duly authorized to perform the same by appropriate resolution of
the City Council of the City of Fort Worth and that she executed the same as the act of the said City
for the purposes and consideration therein expressed and in the capacity therein stated.
GIVIW UNDER MY HAND AND SEAL OF OFFICE this 01' day of
Wt'uvvi -T
i
�*v Aj
Nota Public in an for
the State of Texas
ARMIDA MARY GARCIA
Notary Public, State of Texas
V. Q Comm. Expires 07-12-2028
Notary ID 134989930
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Guadalupe
Zamora, Member CD & CP Real Estate I, 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.
G 'EN UNDER MY HAND AND SEAL OF OFFICE this l Z' of
o1Q EN UNDER MY HAND
, 2024.
A"_ ��,vv�s� VIRGINIA R. VILLAL060S
_i; Notary Public, State of Texas
4�etate
lic in an for _ y
;'•+c; Comm. Expires 12-16-2026
of Texas ;;�'' Notary ID 134109141
Page 10
NEZ Tax Abatement Agreement — CD & CP Real Estate I, LLC
146 Cottonwood Street
M&C 24-1157 At)t)roved: December 10.2024
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description
Page 11
NEZ Tax Abatement Agreement — CD & CP Real Estate I, LLC
140 Cottonwood Street
M&C 24-1157 Annroved: December 10.2024
Exhibit 1
Property Description
140 Cottonwood Street, Lot 3, Block 2, W. J. Meyers Addition, an Addition to the City of Fort Worth, Tarrant
County, Texas, according to the Plat thereof Recorded in Volume 1337, Page 115, Plat Records, Tarrant County,
Texas.
FORT WORTH,
Exhibit 2
Application#,
City of Fort Worth
Neighborhood Empowennent Zone (NEZ) Application for Incentives
Applicant Into mptl4n 1.
Deeded Property
Owner/Developer C b f CP G L C
Last First M.I.
Mailing Address: 3?j5 Avs- till L•AU• TY 76111
Street Address City State Zip
Phone: ?/%-% 4/-OdS'& Email: Lf',1d4a zarnor-a Cowsfr-irc;ken . cc,,
Contact: GWAr,4' Aro'4_-
(If different) Last First
Phone: g( 7-
AT L
Email: !'4o d rvZa000r-a Bows kvch'.m , co m
NEZ certifications are project and owner specific. Please describe your project:
Project Type
Z o a a
Single Family Multi- Family Commercial industrial Community Facilities Mixed -Use
*Please be advised if the project address is zoned as a designated historical property (HQ or is located in the Near Southside. Camp
Bowie or Stockyards Urban Design District, approval ofyour project is required prior to NEZ application submittaL An approved
Cenci scare o &%d sweg_oolinr docamemmiew fer she gmig Y sssen be amscA d to &e NEZ a Wication.
Project Address: JI/O Sf-.
Street Address rr �
Legal Description: 3 oZ IAA A 1#~f'S �bGTr�Sit?/J
Lot Block Addition
YES NO YES NO
New Construction / Addition: [ ❑ Remodel 1 Rehab: ❑ 0
00
Total New Sq. Ft. /POP Total Development Cost: 's /99.
For a single family project, will the NEZ certified property be occupied by YES �NO/
the property owner as a primary residence? ❑ 9:
If you selected No, please specify if this property will be sold to a homeowner as a primary residence or used as rental
property. 5olb �Ty�j�rr►eoc✓ilPr 4.S a. /'rMct�N /"eS�Gt7�eACe
If your project is a Commercial or Mixed Use project, please list all specific uses that are being proposed:
Incentives
YES NO
Do you wish to apply for a Municipal Property Tax abatement for this project? ❑ ov
If the above answer is yes, please contact the City of Fort Worth Neighborhood Services Department at (S 17) 392-7316 or visit
httn:,i tort%t tic i•m,liborhoo(6,- ti EZ' for additional information. Tax Abatements are processed after NEZ project
certification and must go before the City Council for a vote. House Bill 3143 tool: 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 reauesdim- tar abatement mat, not submit for a buildfine Permit until the abatement has been approved by the Cin,
Council and the applicant has signed a contract
FORT WORTH
lr0000—
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? g ❑
Weed, Paving, Demolition and Board Up / Open Structure liens may be released for qualifying projects.
YES NO
Will a Zoning Change application be necessary for this project? ❑
Current Zoning: B - A Proposed Use: New Single Family Residence
Signature of Zoning Staff: Date: 10/8/2024
-mac.. ..�.r �t .,
M��rg.fi Ls: :J i;l��F7���1-�� iL�
PLEASE INITIAL NEXT TO EACH STATEMENT
r/ I understand that my application will not be processed if it is incomplete. I agree to provide any additional information
for determining eligibility as requested by the City. If the additional information is not submitted within 30 days, the application
will
'bedenied and application fees paid will not be reimbursed.
t'edI hereby certify that the information provided is true and accurate. If I have misrepresented the facts in order to
circumvent the NEZ policy, I hereby understand that I will be responsible for repaying the City of Fort Worth all fees and taxes
waived through my NEZ certification and I will no longer be eligible to ant)[v for auv NEZ incentives in the future.
�I hereby certify that all documents and information required by the Application Submittal Checklist is attached.
t I hereby acknowledge that I have read the NEZ Basic Incentives and Tax Abatement Policy, which governs the granting
of tax 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.
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible for obtaining required permits and inspections from the City and in ensuring the
project is located in the correct zoning district,
1_�Zl understand that if there are back taxes due or liens against any property I own under any name in Tarrant County, I
will not eligible for NEZ incentives.
I hereby certify that the project plans submitted with this application meet the NEZ design guideline requirements as
listed below or meet w i Iqg gKiddiM for t_. ,e���p t l i nts, _Qk t C rr
prrtti crdthe NEZ webtx�e. 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 issued 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..
MM�Mj
Application#
Citv of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
►/ I understand that if I have not submitted a NEZ application and do not have NEZ certification, I must pay all associated
fees at 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
reques ing Tax Abatement.
I understand that if I have submitted an opt out form and have had a building permit issued, I am not eligible to apply
for any incentives from the NEZ program.
zinefa �r ,nary `7- l ?_.,1 �
Printed Name of Property Sig ature of operty Date
Owner/Developer Owrler/Developer
Please submit your completed application online to:
�It`�' 14t. S t9ri�D ®sit li fTi`I i@t.r,➢P 10i f6115. 41 lei
For nlore information on the NEZ Program Incentives, please visit our web site at
or contact our office at (817) 392-7540 or .
For more information on Tax Abatements, see the above website or contact Sarah Odle with the
Neighborhood Services Department at (817) 392-73 i6.
Exhibit 3
Proiect Description
New Construction of a single family residence
• 2,539 Total square feet with 1,808 square feet of living space
• 1 Story
• 3 Bedroom, 2 Bath
• Kitchen/Living Room/Dining Room combination
• Laundry Room
• Covered Front Porch and Back Porch
• 2 Car Attached Garage
• Hardi Board Siding with Brick Veneer, Rock and Board & Batten Accent Exterior
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/10/24 M&C FILE NUMBER: M&C 24-1157
LOG NAME: 19NEZ14000TTONWOOD
SUBJECT
(CD 11) Authorize Execution of a Five -Year Tax Abatement Agreement with CD & CP Real Estate I, LLC for the Construction of a Single -Family
Dwelling of Approximately 1,808 Square Feet and Having a Cost of at Least $199,756.00 on Property Located at 140 Cottonwood Street, in the
Riverside Alliance Neighborhood and within Neighborhood Empowerment Zone Area Four and Neighborhood Empowerment Reinvestment Zone
No. 4R
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a five-year Tax Abatement Agreement with CD & CP Real Estate I, LLC for the construction of a single-family
dwelling of approximately 1,808 square feet and having a cost of at least $199,756.00 on property located at 140 Cottonwood Street, in the
Riverside Alliance neighborhood and within Neighborhood Empowerment Zone Area Four and Neighborhood Empowerment Reinvestment
Zone No. 4R; 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 Tax Abatement Policy.
DISCUSSION:
CD & CP Real Estate I, LLC, (Property Owners), are the owners of the property described as Lot 3, Block 2, W. J. Meyers Addition, an addition to
the City of Fort Worth, Tarrant County, Texas, according to the Plat Thereof Record recorded in Volume 1337, Page 115, Plat Records, Tarrant
County, Texas, located at 140 Cottonwood Street, Fort Worth, Texas, (the Property). The Property is located in the Riverside Alliance area and
within Neighborhood Empowerment Zone, (NEZ) Area Four.
The Property Owners plan to invest an estimated amount of $199,756.00 to construct a single-family residence of approximately 1,808 square
feet, (Project) on the Property. The Project will be sold to a homeowner to be used as a primary residence.
The Neighborhood Services Department reviewed the application and certified that the Property Owners and Project meet 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 owners of any new construction or rehabilitation within the NEZ. Residential owner -occupied tax
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 $380,220.00.
Upon execution of the Tax 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 2024 for the property as follows:
Pre -Improvement TAD Value of Improvements $ 0.00
Pre -Improvement Estimated Value of Land $33,750.00
Total Pre -Improvement Estimated Value 1 $33,750.00
The municipal property tax on the improved value of the Project after construction is estimated in the amount of $1,343.36 per year, for a total
amount of $6,716.80 over the five-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated
based on the TAD appraised value of the property 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 11
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon final approval of the Tax Abatement Agreement, a loss of an estimated $6,716.80 in property tax
revenue may occur over the five-year period. This reduction in revenue will be incorporated into the long term financial forecast upon the Tax
Abatement being officially granted.
Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804
Oriainatina Business Unit Head: Kacey Bess 8187
Additional Information Contact: Sarah Odle 7316
CERTIFICATE OF INTERESTED PARTIES
FORM 1295
loft
Complete Nos. 1- 4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. 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. 2024-1232843
CD & CP Real Estate I, 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 10/30/2024
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
TBD
Tax Abatement
4 Nature of interest
Name of Interested Party City, State, Country (place of business) (check applicable)
Controlling Intermediary
Zamora, Linda
Graff, Rick
5 Check only if there is NO Interested Party.
6 UNSWORN DECLARATION
My name is
My address is AN-111 s�C� ; —
(street)
Fort Worth, TX United States X
Fort Worth, TX United States
X
and my date of birth Is M I &-t,) I 1 bm?) .
(may) (state) (zip code) (country)
I declare under penalty of perjury that the foregoing is true and correct
Executed in �Q.r Y faY1 County, State of on the day of iX'lr 20'*N4A.
(month) (Year)
��Sigaatature of authorize gent of contracting business entity
( larant)
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V4.1.0.48da51f7