HomeMy WebLinkAboutContract 45072 CITY SECRETARY
CONTRACT NO,
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
3500 S Jennings Avenue
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 T.M.
Higgins, its duly authorized City Manager, and B.J. Masters, Manager of Matrix H&S Realty,
LLC, ("Owner") of property located at 3500 S. Jennings Avenue, Lot 11R, Block 5, South Fort
Worth Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the
Plat recorded in Volume 388-1.84, Page 17, 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. Chapter 378 of the Texas Local Government Code allows a municipality to create a
neighborhood empowerment zone if the municipality determines that the creation of the zone
would promote:
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided
to residents of the zone; or
(4) the rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own
property located in a NEZ, stating that the City elects to be eligible to participate in tax abatement
and including guidelines and criteria governing tax abatement agreements entered into between the
City and various third parties, titled "NEZ Basic Incentives", these were readopted on May 21,
2013 (Resolution No. 4209).
D. 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 Texas
Tax Code, as amended (the"Code").
E. On December 7, 2010, the City Council adopted Ordinance No. 19462
("Ordinance") establishing the Hemphill/Berry area as "Neighborhood Empowerment
Reinvestment Zone No. 7'R," City of Fort Worth,Texas ("Zone").
OFFICIAL RECORD]
C17"Y' SECRETAKY"
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F. Owner owns certain mzd property located eudro|v within the Zone and that is more
particularly described in attached hereto and hereby made a part ofthis Agreement for
all purposes(the"D^rmmmiyem»).
G. On January 7, 2013 Owner submitted an application for tax abatement to the City
concerning the Premises /the "Application"), attached hereto as and hereby made a
part o[this Agreement for all purposes. Owner or its assigns plans tnmake improvements tothe
Premises iDU serious 0f phases over time. The first construction phase subject t0 this Agreement iu
u 16,800 square foot building further described below..
H. Owner or its assigns plan t0 construct a Painting and /\uueoob|y building as part of
its first phase of construction, more particularly described in Section l.| nf this Agreement, onthe
Premises (the"Project") and further described on the exhibits as"Phase |".
1. The contemplated use of the Premises, the Painting and Assembly building (d1m
"Required Improvements"), as defined in Section l.|, and the terms of this /\gn:crnent are
consistent with encouraging development of the Zone in ec:orduuoc with the purposes for its
creation and are in compliance with theYWEZ Incentives, the Ordinance and other applicable laws,
ordinances,rules and regulations.
J. The terms 0f this Agreement, and the Premises and Required lrop,0veDneVlS, satisfy
the eligibility criteria 0f the�N[EZ Incentives.
K. Written notice that the City intends 10enter into this Agreement, along with uoopy
of this Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each 0fthe taxing units in which the Premises iulocated.
NOW, THEREFORE, the City and ()vvucc, for and in consideration of the tconn and
conditions set forth herein, do hereby contract, covenant and agree as follows:
8. ,
K^8. Real Property Improvements.
(lvvncc shall construct, or cause t0 be ouuobuotcd, on and within the Premises
certain improvements consisting ofuPainting & &ooemb1y building, designated as Phase l
on the attached exhibits; and having oconstruction cost upon oonnp�letioo of$1,870,993.00
but such minimum construction c0S1u shall be reduced by any construction umot saving
(uVl|ective|y, the "Required Improvements"). The kind and type of construction are more
particularly described in Tarrant /\ppxoiou[ District must appraise the property
(improvements and land) within 10Y6of$1,870,993.00 for Phase |. Owner shall provide
copy of the final construction invoices to City once the construction is complete; the
construction invoices uho|| be 3 part of this Agreement and uh411 be labeled .
Minor variations, and more oubo[4uiiul 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 un Event ofDefault, as defined in
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NEZ Tux Abatement with Matrix l{&S Realty, I.I.0
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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 113".
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements within two years from the date of Council approval of the tax abatement.
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, including, without limitation, delays
caused by adverse weather, delays in receipt of any required permits or approvals from any
governmental authority, or acts of God, fires, strikes, national disasters, wars, riots and
material or labor restrictions, and shortages as determined by the City of Fort Worth in its
sole discretion, which shall not be unreasonably withheld, but 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 the
Premises shall be continuously used as a Paint and Assembly building and in accordance
with the description of the Project set forth in the Exhibit "31'. In addition, Owner
covenants that throughout the Term, 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.
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 of Abatement.
The actual amount of the Abatement granted under this Agreement shall be
based upon the increase in value of the Premises and the Required Improvements over
their values as determined by TAD on July 10, 2013, minus the value of the building
that was demolished by the Owner prior to the execution of this Agreement. For the
purposes of this Agreement the amount is $469,260.00 the year in which this Agreement
was entered into:
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One Hundred percent (100%) of the increase in. value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that
such minimum construction costs shall be reduced by construction cost savings,
Owner shall not be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises
due to construction of the Required Improvements and shall not apply to taxes on the
land.
2.3. Abatement Limitation.
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 its value as determined by TAD on July 10, 2013, after demolition including
the Required Improvements, up to a maximum of$2,806,489.50. In other words, by way
of example only, if the increase in value of the Premises over its value on January 1, 2013,
including the Required [mprovements, in a given year is $2,900,000.00, Owner's
Abatement for that tax year shall be capped and calculated as if the appraised value of the
Premises for that year had only been $2,806,489.50.
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. Term.
The term of the Abatement (the "Term") shall begin on January I of the year
following the calendar year in which a final certificate of occupancy is issued for the
Required Improvements ("Beginning Date") and, unless sooner terminated as herein
provided, shall end on December 31 immediately preceding the fifth (5t") anniversary of
the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application
fee of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
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3. RECORDS, AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term and for
five (5) years after termination ("Compliance Auditing 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. Audits.
The City shall have the right to audit at the City's expense the financial and
business records of Owner that relate to the Project and Abatement terms and conditions
(collectively, the "Records") at any time during the Compliance Auditing Term in order
to determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to Owner. 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 April I following the end of every year during the Compliance
Auditing Term and 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. This information shall
include, but not be limited to, the number and dollar amounts of all construction contracts
and subcontracts awarded on the Project.
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 I 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.
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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 I.I.; (ii) ad
valorem 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) OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF
THE CODE OF ORDINANCE 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 one hundred twenty (120)
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 twenty (120) 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 Damap_es.
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 there from 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 not be eligible for the Abatement for
the remaining Term and 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
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im not apenalty. This amount may be recovered hv the City through adjustments made to
()vvncr`s ad valorem property tax appraisal by the appraisal district that has jurisdiction
over the 9vrcniseu. Otherwise, this amount shall be due, owing and paid to the City within
sixty (00) days following the effective date 0ftermination of this Agreement. In the event
that all or any portion o[this amount iu not paid to the [ih/ 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 utthe statutory rate for delinquent taxes,
as determined hy the Code adthe time 0f the payment 0f such penalties and interest.
4'4^ Termination at Will.
If the [ih/ and ()vvoe, mutually deteooiue that the development or use of the
Premises oc the anticipated Required Improvements are no longer appropriate orfeasible,
or that u higher or better use is preferable, the City and [)vvocr may terminate this
Agreement ina written foomut that issigned by both parties. ln this event, (i) if the Term
has commenced, the Tenn 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 sba]| have any further rights or obligations hereunder.
4~5, Sexually oriented Business & Liquor Stores or Package Stores.
a. Owner understands and agrees the City has the right 10 terminate this
agreement if the Project o0ntoinsorvvil| oontnioamcxua||yocieotod business.
b. Owner understands and agrees that the City has the right to terminate this
agreement uadetermined in City's sole discretion if the Project oontaio80rvvi|| contain u
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 toau Affiliate without the consent ofthe City, provided that (i) prior
bzorcontemporaneously with the effectiveness of such anSigonocot, Cnnnpouy provides
the City with written notice of such assignment, which notice shall include the name of
the Affiliate and uuon\nut name, address and telephone number, and (ii) the Affiliate
agrees in writing to uoounoc all teons and conditions of Company under this Agreement.
For purV0SoS of this Agreement, on "Affiliate" noeauS all entities, incorporated or
otherwise, under common control 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. Cnnupuoy may not otherwise assign
this Agreement nr any ofthe benefits provided hereunder to another party without the
consent of the City Council, which consent shall not unreasonably be withheld or
delayed, provided that (i) the City Council finds that the proposed assignee is financially
capable of meeting the te[o)o and conditions of this Agreement and (ii) the proposed
assignee agrees in writing to uuouroe all tcona and conditions of Company under this
/kgnne0000L Any attempted assignment without the City Council's prior written consent
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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.
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:
City of Fort Worth Matrix H&S Realty, LLC
Attn: City Manager BJ Masters, Manager
1000 Throckmorton Street 3521 Hemphill Street
Fort Worth, TX 76102 Fort Worth, Texas 76110
and
Housing& Economic Development Department
Attn: Jay Chapa, Director
1000 Throckmorton Street
Fort Worth, TX 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 of outstanding bonds of the City.
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 "T',
the body of this Agreement shall control. As of August 6, 2013, the City is unaware of
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any conflicts between this Agreement and the City's zoning on]immoc or other
ordinances orregulations.
7.4. Future Apylication.
A portion or all of the Premises and/or Required lnnpn)veooun1a may he eligible for
complete or partial exemption from ad va|oo:nn taxes as o rcnu|{ of existing |ov/ or future
legislation, This Agreement shall not be construed a3 evidence that such exemptions d0not
apply to the Pn:ruimex and/or Required Improvements.
7'5. City Council Authorization.
This Agreement was authorized hv the City Council through oppn)vu| Mayor and
Council Communication No. C-28300 on August 6, 2013, which, among other things,
authorized the City Manager to execute this Agreement oo behalf of the City.
7-6, Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto a0
long os the ceoifiCoie is requested in connection with u bona fide business purpose. The
certificate, which if requested will be addressed to the ()vvuer, Shall include, but not
necessarily be limited 1o, mLatcnncn1m that this /\gn:eoncut is in full force and effect
without default (or ifuo Event of Default exists, the nature 0f the Event nf Default and
curative action taken and/or necessary to effect u cure), the remaining term of this
/\gn:cnment` the levels and n:nnaioiug term of the /\bab:rneot in effect, and such other
matters reasonably requested by the party or parties toreceive the certificates.
7'7. Owner Standin2.
Owner shall be deemed m proper and necessary party in any litigation questioning
or challenging the validity of this /\grecnouoi Or any of the underlying |op/S, ordinances,
resolutions, or City Council actions authorizing this Agreement and (]nvntr shall be
entitled to intervene inany such litigation.
7.8. Venue and Jurisdiction.
This /\greco`eoi 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 8bu|| lie in the 8tn0: District Court ofTarrant County, Texas.
This Agreement is performable in Tarrant County, Texas.
7.9, Severability.
If any provision nf this Agreement is held to be invalid, illegal, or unenforceable,
the validity, legality and enforceability of the remaining provisions ubul| not in any vvuy
bn affected ocimpaired.
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7.10. Headings Not Controllinp_.
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 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.
CITY OF FORT WORTH:
All?
By: By:
Fernando Costa /B.J. a�t&s, Manager
Assistant City Manager rix H&S Realty LLC
ATTEST: FOA�p
0
By: 0
4far" Kay n ;a
y JAli�)Secretary
W
APPROVED AS TO FORM AND LEG
..............
By:1-11
Melinda Ramos
Assistant City Attorney
M & C:— C-26380
OFFICIAL, RECORD
CITY' SECRE"rARY
FT. WORT14,1 TX
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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.
.VEN UNDER MY HAND AND SEAL OF OFFICE this W� day of
2013.
F0tary Public in and for r FVONIA DANIM
th S ate of Tex NO'tary PUMC,state of Tows
My Cornmss4on Expires
JWV 10, 2017
Notary's Printed Name
STATE OF TEXAS
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, on this day personally appeared B.J. Masters, Manager
of Matrix H&S Realty 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, and in the capacity therein stated for Matrix H&S Realty, LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
, 2013.
ARCY LEIGH WOODINA91)
Notary PubliAn and foij Notary Public,state of Texas
The State of Texas .. my commission Expires
AP11123, 2016
Al irc Le1qk- Lkyu et,((Yk
Notary's Print d Nan4
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NEZ Tax Abatement with Matrix H&S Realty, LLC
Approved by M&C C-26380, August 6, 2013
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Phase I Project description including kind, number, and location of the proposed
improvements.
Exhibit 4: Final Construction Invoices
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NEZ Tax Abatement with Matrix H&S Realty, L.LC
Approved by M&C C-26380, August 6, 2013
.
Exhibit I
Property Legal Description
3500 S. Jennings Avenue, Lot I I R, Block 5, South Fort Worth Addition, an Addition to the
City of Fort Worth, Tarrant County, Texas, according inthe Plat recorded in Volume 38A-
l84, Page L7, Plat Records, Tarrant County Texas
Exhibit 2
FO R'r WO R'r H Application No. INZ1 3-00007
CITY OF FORT WORTH
NEICHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFtckTiON APPLICATION
I. APPLICATION CHECK LIST - Please submit the following,documentation:
❑ A completed application form
❑ A list of all properties owned by the applicant,owner,developer,associates,principals,partners. and agents
in the Citv Fort Worth
❑ Non Refundable Application fee - 1--'or all Basic Incentives applications excluding Tax Abatement the
application fee is$25.00. For multifamily. commercial, industrial,commercial facilities,and fniXed-LISV 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: $100,00 per house.
❑ Proof of ownership,such as a warranty deed,affidavit of heirship,or a probated will 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)
❑ A reduced I I xJ 7 floor plan,site plan,and site elevation with
a written detailed project description that includes a construction time line
A detailed line item budget showing tile cost breakdown for the project
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 Policy and Guidelines revised April 6, 2004 or
followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located in Woodhaven NEZ only)
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 TAX 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 THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PRO,IECT. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED,OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED,OR YOU
WILL BE REQUIREDTO RE-APPLY FOR NEZ INCENTIVES.
11. APPLICANT AGENT INFORMATION
.1. Applicant: Hayes&Stolz Industrial Mfg. 2. Contact Person. B.J.Masters,President
3. Address: 3521 Hemphill Street Fort Worth, TX 76110
Street City State Zip
4. Phone no.: 817-926-3391 5. Fax No.: 817-926-4133
6. Email: bjmast@hayes-stoiz.com
7. Agent(if any) Terry M. Harden Architects.Inc.(Terry M.Harden,RA,RID) --
8. Address: 6650 Manhattan.Fort Worth,Texas 76120
Street City State Zip
9. Phone no.: 817-446-1484 10. Fax No.: 817A29-1455
11. Email: terry@terryharden.com
Revised July 22,2010
FORT WORTH Application No.
-tip r-
1`110JEC-17 ELIGIBILITY
I. Please list down the addresses and legal descriptions of the project and other properties your
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.
'rabic 1 Property Owne ship
Address Zip Code I P.9fil ffi-scrntinn
(Projcct Location) Subdivision Name Lot No. Block No.
-—--------------------
......... ............
3500 South Jennings Avenue 76110 South Fort Worth Addition 11R 5
Other properties owned in the City of Fort Worth -continue on a separate sheet and attach if necessary.
3529 Hemphill Street 76110 South Fort Worth Addition 10 5
3517 Hemphill Street 76110 South Fort Worth Addition 5 5
3511 Hemphill Street 76110 South Fort Worth Addition 4 5
3501 Hemphill Street 76110 South fort Worth Addition 1 5
3601 Hemphill Street 76110 South Fort Worth Addrtion 1 5
2. For each property listed in Table 1, please check the boxes below to indicate if:
• there are taxes past due; or
• there are City liens; or
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission's Order of Demolition where the property was demolished within the last five
years.
Table 2 Property Taxes and City Liens
Property City Liens on Property
Address Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
-7—
El
-- - ----------- --------
❑ ❑ 101 To 1:1 E
(Please attach additional sheets of paper as needed.)
If there are taxes due or liens against any property in the City of Fort Worth you may not be eligible
for NEZ incentives
Revised July 22,2010 2
FORT WORTH Application No.
3. Do you own other properties under other names'! [0] Yes❑ No
If Yes, please specify Yes Ail properties are owned by Matrix H&S Realty,LLC
4. Does the proposed project conform with City of Fort Worth Zoning? Yes No
If no, what steps are being taken to insure compliance'?
S. Project E] ❑ ❑
'rype: Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
. .......................
OOwner Occupied
❑ Renigi Property
6. Please describe the proposed residential or commercial project:EXPANSION OF PAINTING CJPERAT ONS,REPLACEMENT
OF BUILDINGS AND UTILITIES;REPLACEMENT OF SANITARY SEWER,ALLEY AND SOUTH JENNINGS PAVEMENT.
7. If your project is a commercial,industrial,or mixed-use project, please describe the types of
businesses that are being proposed: SAME AS ITEM 6 ABOVE
8. Is this a new construction or rehab project? X New Construction W Rehab
9. How much is the total development cost of your project? $1MIM UP TO POSSIBLY$6MM for entire project
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? []Yes [:] No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain-link or solid material construction;personal property such as furniture,
appliances,equipment,and/or supplies.Total eligible rehabilitation costs shall equal to or exceed 30%of the
TAD appraised value of the structure during the year rehabilitation occurs.
11. How much is the total square footage of your project? 16,800 SF-PHASE 1 square feet
* If applying for a tax abatement please answer questions 12—16.If not skip to part III Incentives
12.For a single-family homeownership, mixed-use, or multi-family development project, 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 ANff I
Total Units
**AMFI:Area Median Family Income. Please see attachment for income and housing payment guidelines.
13. For a multifamily project to be qualified for tax abatement, at least 20% 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. F-1
14. For a commercial, industrial or community facilities project, indicate square footage of non-
residential space. � Community Facilities
Commercial Industrial —
16,800 square feet square feet
square feet ...........................11..........
Revised July 22,2010 3
FORTWORTH Application No.
15. Flow much will bc your Capital Tnrmtumeo`°** on the project? Please use the following table to provide
the details and amount uf your Capital Investment (Attached additional sheets ifo*o*oxary)
'Fable 4 Itemized B 6 f he Project
Items Amount Notes
Phase I -Painting Expansion $1.9 M Immediate need:paint equipment not inctuded
Total
***Capital Investment inckides only real property improvements such as,new facilities and structures,site improvements, facility
expansion, and facility modemization, Capital Investment DOES NOT include land acquisition costs and/or any existing
improvements,m personal properly(such*s machinery,equipment,and/or supplies o,.ovenoo,/).
16i hov, many employees will the
project generate?����
17. please indicate the percentage vf all uses io the project kn the following table.
Table 5 Percentage of 0 in Mixed-Use Project
Type Square Footage Percentage
Residential
Office
Eating
Entertainment
Retail sales
Service
Total
8K. INCENTIVES ' What incentives are you applying for?
Municil)al Property Tax Abatements
Moot provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
______
E 5yoorx [] More than 5years
F_JDouidendul owner occupied Fl}le»idondu| Rental Property ElApartmonm (5 plus units) Commercial
Development Fee Waivers
�� All building permit related fees(including P|uoy Review and Inspections)
N P\u/application fee(including concept p|an, preliminary plat, final plat,short form repim)
FE] Zoning application fee J01 Board of Aduutmnm application fee
Al Demolition tee [0 Structure moving fee
FE] Community Facilities Agreement(CF&)application fee
S Street and utility easement vacation application O:n
Impact Fee Waivers -The maximum water/wastewater impact fee waiver amount for a commercial, industrial,mixed-
use,or community facility development project is equivalent to the waterlwastewater impact fee of two 6-inch meters
[71 Water (Meter Size l 8uo. ofmotero ----------- E] Transportation
Release of City Liens
F� Weed liens Paving liens Bound up/open structure liens Fl Demolition liens
Revised Jo}y22.2O|D 4
'
ru App6xafiomNo.
011. ACKNOWLEDGMENTS
/ hereby unn/fy that the iu/onnuhou provided is true and accurate W the hcsr o[ my knowledge. l hereby
acknowledge that I have received a copy of NEZ Basic Incentives,which governs the granting of tax abatements, fee
waivers and release of City \ienx, and that any YlOL/\?IO0 of the renna of t\lo NEZ Basic [oceobvua or
MlSR.E9RE8BNI&3IDN shall constitute grounds for rejection oy art application or ,emuinationof incentives at \bc
discretion nf the City.
I understand that the approval of fee waivers and other incentives shall not be deemed tohc approval o[any aspect of
the pn4cu\. ] understand that I am oxpoomh|o in obtaining required puoniu and inspections from the City and in
ensuring the project is |ooumd in the correct zoning district.
{ understand that my application will not be processed if it is incomplete. [ agree to provide any additional
information for determining eligibility os requested hy the City.
BJ Masters, President 01-0,7 -13
(PIUNTED OR TYPED NAME) �AIJ'FIORIZED SIGNATURE) (DATE)
Please mail or fax your application to:
City of Fort Worth Planning and Development Department
1000 Throckmorton Street, Fort Worth,Texas 76102
Tel: (817)392-2222 Fax: (817)392-8116
Electronic version o[this form ix available on our wc6oi»c. For more information on the NEIProgram, please visit
our web site at www.&mrtwortbgwr.org/plmooiugouddmvmlwpmnemt
For Office us� nly
Application No. Lko-ln which NFZ.? oimcil District
Application Completed Date(Received Date): Con-ufol with Zoning? El Yes E]No
Type'? []SF E] Multifamily XCommercial El Industrial El Community facilities 0 Mixed-Use
Construction completion date? Before NEZZ After NEZ Ownership/Site Control D Yes 0 No
TAD Account No. Q
Meet affordability test? T>�Yes E]No Minimum Capital Investment'? es F� No
Rehab at or higher than 30%'? ��Yes EJ No Meet mixed-use definition? es M No
Tax current on this property? ayes F] No Tax current on other properties'.) es 0 No
City liens on this property'? City liens on other properties?
• Weed liens Yes Q,No a Weed liens 7 Yes 0
• Board-up/open structure liens El Yes �VN 0 * Board-up/open structure liens D Yes 0
• Demolition liens Yes �4 No * Demolition liens 71 Yes 0
• Paving liens El Yes �No * Paving liens F]Yes 0
• Order of demolition El Yes * Order of demolition F� Yes 0
Certified? �fqS�s [] No Certified by Date certification issued?
Ifilot certified reason
Revised July zz.zo|n 5
ATTACHMENT INCOME AND HOUSING PAYMENT GUIDELINES
Family Size 80%of Median Income* Maximum Housing Payment Affordable for
Individuals or Families
at 80% of Median Income
1 $38,300 $957.50
2 $43,750 $1,093.75
3 $49,200 $1,230.00
4 $54,650 $1,366.25
5 $59,050 $1,476.25
6 $63,400 $1,595.00
7 $67,800 $1,695.00
8 $72,150 $1,803.75
*Source: 2010 Fort Worth-Arlington PMSA HUD Income Guidelines
'
Exhibit
• Construction ofunew |6,80OSF pre-engineered nnetu building with u30-tooL
euve height;and 3/12 pitched roof. The building will be fully protected with u
fire alarm and dry-pipe fire suppression system. /\ new 6-inch reinforced
concrete slab installed over 8 fully reconditioned pad 0f8-feet(6-onil poly on
12-inch select fill over 7-feet of soil)with 8-inch carton forms under all grade
beams. The reinforced concrete grade beams will be constructed 0oreinforced
concrete drilled piers into bedrock.
• New 5-tooand 10-ton Bridge cranes in paint and assembly building.
• New paint booths, scissor lift and conveyorand exhaust system for equipment.
• Location vfproject is the southeast comer o{the 2.755 acre location of 3500 S.
Jennings Avenue, Lot ||ll, Block 5, South Fort Worth Addition
Exhibit 3
NORTH SCALE- 1*•90'-0'
W. BIDDISON STREET
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S90000'00•W 140.00' West Ripy Extensi' n FH.
W. RIPY STREET _ I Emergency Easem nt
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(60' RIGHT-OF-WAY) t�I>jMqH WATER LIN E.. 1011H WATER UNE
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DATE: 8/6/2013 REFERENCE C-26380 LOG NAME: 17NEZ3500SJEN1\IINGS
NO..
CODE: C TYPE: CONSENT HEARING:
NO
SUBJECT: Authorize Five-Year Tax Abatement Agreement with Matrix H&S Realty, LLC, for the
Construction of a Paint and Assembly Plant Building at 3500 S. Jennings Avenue in
the Hemphill/Berry Neighborhood Empowerment Zone (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize a five-year Tax Abatement Agreement with
Matrix H&S Realty, LLC, for the construction of a Paint and Assembly Plant building at 3500 S.
Jennings Avenue in the Hemphill/Berry Neighborhood Empowerment Zone, in accordance with the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Matrix H&S Realty, LLC (Property Owner), is the owner of the property described as Lot 11 R,
Block 5, South Fort Worth Addition, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the Plat recorded in Volume 388-184, Page 17, Plat Records, Tarrant County Texas,
3500 S. Jennings Avenue, Fort Worth, Texas, 76110. The property is located within the
Hemphill/Berry Neighborhood Empowerment Zone (NEZ).
The Property Owner is planning a multi-phase remodel and expansion of the property. Phase I is
to invest an estimated amount of $1,870,993.00 to build a new 16,800 square foot Paint and
Assembly Plant (Project). The Housing and Economic Development Department reviewed the
application and certified that the Project met the eligibility criteria to receive a Municipal Property
Tax Abatement. The NEZ Tax Abatement Policy and Basic Incentives includes 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.
Upon execution of the 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
2014. At this time, Tarrant Appraisal District has the improvements on the property which includes
several buildings valued in the amount of$578,039.00. The owner has demolished the existing
building on the property so the pre-improved value for tax abatement purposes will be in the
amount of $469,260.00.
The Municipal Property Tax Abatement on the improved value of the Project after construction is
estimated in the amount of $15,996.99 per year for a total amount of $79,984.95 over the five-
year period. However, this estimate may differ from the actual tax abatement value, which will be
calculated based on the Tarrant Appraisal District 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
http://apps.cfwnet.org/council_packet/mc_review.asp:?-=1813I &councildate=8/6/2013[10/26/2013 2:18:26 PM]
M&Cxeview
if the new owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and
Basic Incentives.
This property is located in COUNCIL DISTRICT 9.
FISCAL '
The Financial Management Services Director certifies that this action will not increase the total
appropriations 0f City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submifted for City Manager's Office-h4 Fernando Costa (6122)
Originating Department Heado Cynthia Garcia (8187)
Robert Stunns (80O3)
Additional Information Contacts Sarah Odle (7316)
ATTACHMENTS
Elevations-Floor Plan and MastQ[ Plan,pd
http://apps.cfA,viet.org/counciI_packet/inc_review.asp?ID=1813 I&councildate=8/6/2013(10/26/2013 2:18:26 PM]