HomeMy WebLinkAboutOrdinance 15746ORDINANCE NO. / 57
MUM;
WHEREAS, pursuant to the City Council's adoption on April 22, 2003 of
Resolution No. 2938 (M&C C-19551) and amended on May 27, 2403 by M&C G-13984,
the City of Fort Worth, Texas (the "City") has elected to be eligible to participate in tax
abatement and has established guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, as authorized by and
I in accordance with the Property Redevelopment and Tax Abatement Act, codified in
Chapter 312 of the Texas Tax Code (the "Code"); and
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance (the "Zone")
through the creation of reinvestment zone for purposes of granting commercial-industrial
tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and
WHEREAS, on November 26, 2002, the City Council designated the
the Neighborhood Empowerment Reinvestment Zone No. 12 is
located within the HemphilblBerry Neighborhood Empowerment Zone; and
WHEREAS, the Neighborhood Empowerment Zone No. 12 will increase in
economic development in the zone; and
WHEREAS, on November 11, 2003, the City Council held a public hearing
regarding the creation of the Zone afforded a reasonable opportunity for all interested
persons to speak and present evidence for or against the creation of the Zone ("Public
Hearing"), as required by Section 312.201(d) of the Code; and
WHEREAS, notice of the Public Hearing was published in a newspaper of
general circulation in the City on October 30, 2003 which satisfies the requirement of
Section 312.201(d)(1) of the Code that publication of the notice occur not later than the
seventh day before the date of the public hearing; and
WHEREAS, in accordance with Sections 312.201(d)(2) and (e), notice of the
Public Hearing was delivered in writing not later than the seventh day before the date of
the public hearing to the presiding officer of the governing body of each taxing unit that
includes in its boundaries real property that is to be included in the proposed Zone;
That after reviewing all information before it regarding the establishment of the
• F
all interested persons to speak and present evidence for or against the creation of the
Zone, the City Council hereby makes the following findings of fact:
4
I-1. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of a reinvestment zone under Chapter 312 of
the Code; and
1.2. That the boundaries of the reinvestment zone shall be the boundaries as described
in Exhibit "A" which is attached hereto and made a part hereof,
1.3. The Zone meets the criteria for the designation of a reinvestment zone as set forth in
V.T.C.A., Tax Code, Section 312.202, as amended, in that the area is reasonably
likely as a result of the designation to contribute to the retention or expansion of
primary employment or to attract major investment in the zone that would be a
benefit to the property and that would contribute to the economic development of
the municipality.
1.4. Future improvements in the Zone will benefit the land included in the Zone as
well as the City for a period in excess of ten (10) years, which is the statutory
maximum term of any tax abatement agreement entered into under the Chapter
312 of the Code.
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit "A" and made a part of this Ordinance for OR
purposes as a reinvestment zone for purposes of granting residential and cornmercial-
industrial tax abatement, as authorized by and in accordance with Chapter 312 of the
I
Code. The Zone shall be known as "Neighborhood Empowerment Reinvestment Zone
No. 12, City of Fort Worth, Texas". The area within the Zone is eligible for residential
and commercial- industrial tax abatement pursuant to Resolution No. 2938 and M&C G-
13984, as amended.
Section 3.
TERM OF ZONE.
That the Zone shall take effect upon the effective date of this Ordinance and
expire five (5) years thereafter. The Zone may be renewed by the City Council for one or
more subsequent terms of five (5) years or less.
Section 4.
SEVERABILITY.
That if any portion, section or part of a section of this Ordinance is subsequently
declared invalid, inoperative or void for any reason by a court of competent jurisdiction,
the remaining portions, sections or parts of sections of this Ordinance shall be and remain
in full force and effect and shall not in any way be impaired or affected by such decision,
ZIMMM=61=1
That this Ordinance shall take effect upon its adoption.
ADOPTED.A-ND EFFECTIVE-
M
Assistant City Attorney
Date:
M&C:
NMI[ M,
Fort Worth Neighborhood Empowerment Reinvestment Zone No. 12
General Description
The area to be designated as Fort Worth Neighborhood Empowerment Reinvestment
Zone No. 12 for tax abatement purposes contains .71 acres of land and is within the area
described below:
On the North: Beginning at the northwest comer of Lot 4, Block 62, Ryan & Pruitt
Addition, as recorded in Volume 204, Page 34 of the Tarrant County plat records.
Thence east along the northern property line to the northeast comer of Lot 4, Block 62.
On the East: Beginning at the northeast comer of Lot 4, Ryan & Pruitt Addition, as
recorded in Volume 204, Page 34 of the Tarrant County plat records. Thence south along
the eastern property lines of Lots 4 through 8, Block 62, to the southeast comer of Lot 8,
Block 62, Ryan & Pruitt, Addition, as recorded in Volume 204, Page 34 of the Tarrant
County plat records.
On the South: Beginning at the southeast comer of Lot 8, Block 62, Ryan & Pruitt
Addition, as recorded in Volume 204, Page 34 of the Tarrant County plat records. Thence
west along the southern property to the southwest comer of Lot 8, Block 62, Ryan &
Pruitt Addition, as recorded in Volume 204, Page 34 of the Tarrant County plat records.
On the West: Beginning at the southwest comer of Lot 8, Block 62, Ryan & Pruitt
Addition, as recorded in Volume 204, Page 34 of the Tarrant County plat records. Thence
north along the property line of Lots 8 through 4, Block 62, to the northwest comer of
Lot 4, Block 62, Ryan & Pruitt Addition, as recorded in Volume 204, Page 34 of the
Tarrant County plat records.
M
EXHIBIT A
Legal Description
3413 May St Block 62, Lot 4, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3417 May St Block 62, Lot 5 Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3421 May St Block 62, Lot 6, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3425 May St Block 62, Lot 7, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3429 May St Block 62, Lot 8, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
FX141RIT R
One-story Storage Warehouse
17,430 Sq. Ft.
Constructed of concrete by the tilt-wall method
Landscaped in accordance with current City ordinances
Paved off-street parking
Handicapped accessible via a permanent ramp
Building and parking area screened from rear alley by a 6-foot tall wooden fence
STATE OF TEXAS EXHIBIT C
COUNTY OF TARRANT §
NEIGHBORHOOD EMPOWERMENT ZONE
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between i 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 Reid
Rector, its duly authorized Assistant City Manager, and The Lewis Carter Bledsoe and Barbara
Babcock Bledsoe Revocable Living Trust, acting by and through Lewis Bledsoe, its duly
authorized representative, owner of properties located at Lots 4, 5, , 6, 7 & 8, Block 62 of the
Ryan & Pruitt Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat
recorded in Volume 204, Page 34, Plat Records, Tarrant County, Texas (property).
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.
D The NEZ Incentives contains appropriate guidelines and criteria goveming 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 November 26, 2002, the City Council adopted Ordinance No. 15342 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. Seven", City
of Fort Worth, Texas (the "Zone").
F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit "B", attached hereto and hereby made a part of this Agreement
for all purposes (the "Premises").
G. Owner or its assigns plan to construct a storage warehouse, Required Improvements, as
defined in section 1.1 of this Agreement, on the Premises (the "Project").
H. On August 26, 2003 Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "C" and hereby made a
part of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in Section
1. 1, 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
Ordinances 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 terms and conditions
set forth herein, do hereby contact, covenant, and agree as follows:
1.1. Real Property Improvements.
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, provide 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 "D".
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements within one year from the issuance and receipt of the first building permit,
unless delayed because of force majeure, in which case the one year 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 warehouse and in accordance with the
description of the Project set forth in the Exhibit "D". 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 AINIOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a 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 on January 1, 2003, and this amount is $39,065.00, the year in which this
Agreement was entered into-
I
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,
0-vvner 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 on January 1, 2003, including the Required Improvements,
up to a maximum of $385,000.00. In other words, by way of example only, if the increase
in value of the Premises over its value on January 1, 2003, including the Required
Improvements, in a given year is $500,000.00, 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 $385,000.00.
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
(5'h) anniversary of the Beginning Date.
2.6. Abatement Application Fee.
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 Tenn and the year following the Tenn 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 arid/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 February I following the end of every year during the Compliance
Auditing Tenn 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 %rovide all in rmatz
ion w
f i .
3.3 shall constitute an Event of Default, as defined in Section 4_1.
3A. Determination of Co fiance,
9
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if
(i) fails to construct the Required Improvements as defined in Section 1.1 or (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 (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 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 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. Termination for Event of Default and Payment of Liquidated Damages.
M
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.
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.
5. EFFECT OF SALE OF PREMISES.
Any attempted assignment without the City Council's prior written 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.
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
1000 Throckmorton
Fort Worth, TX 76102
Em
Housing Department
Attn: Jerome Walker
1000 Throckmorton
Fort Worth, TX 76102
19
The Lewis Carter Bledsoe and Barbara Babcock
Bledsoe Revocable Living Trust
Attn: Lewis Bledsoe
4215 Tanbank
Fort Worth, TX 76109
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
"D", the body of this Agreement shall control. As of November 11, 2003, the City is
unaware of any conflicts between this Agreement and the City's zoning ordinance or
other ordinances or regulations.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible
for complete or partial exemption from ad valorem taxes as a result of existing law or
future legislation. This Agreement shall not be construed as evidence that such
exemptions do not apply to the Premises and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. on November 11, 2003, which, among other
things, authorized the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
9
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.
7.9. Recordation.
A certified copy of this Agreement in recordable form shall be recorded in the
Deed Records of Tarrant County, Texas.
7.10. Severabilfty.
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.
7.11. 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.
7.12. Entirety of Agreement.
C,
EXECUTED this day of 2002, by the City of Fort Worth,
Texas.
EXECUTED this day of 2002, by The Lewis Carter
Bledsoe and Barbara Babcock Bledsoe Revocable Living Trust.
m-
F-M
Reid Rector
Assistant City Manager
ATTEST:
m
City Secretary
m
Cynthia Garcia
Assistant City Attorney
ff
IWIVA "Imm my.-IN "0 be
By:
Lewis Bledsoe
Trustee
FAMONS
m
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, . on this day personally appeared Reid Rector,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me
to be the person and officer whose name is subscribed to the foregoing instrument, and
acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a
municipal corporation, that he was duly authorized to perform the same by appropriate resolution
of the City Council of the City of Fort Worth and that he executed the same as the act of the said
City for the purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
,2002.
Notary Public in and for
the State of Texas
Notary's Printed Name
E
iii 1 151,11
BEFORE ME, the undersigned authority, on this day personally appeared Lewis Bledsoe,
Trustee of The Lewis Carter Bledsoe and Barbara Babcock Bledsoe Revocable Living Trust,
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 and as the act and deed of The Lewis Carter Bledsoe and
Barbara Babcock Bledsoe Revocable Living Trust.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
of 2003.
Notary Public in and for
the State of Texas
Notary's Printed Name
[IN
Exhibit A: NEZ Incentives
Exhibit B: Property Description
Exhibit C: Application: (NEZ) Incentives and Tax Abatement
Exhibit D: Project description including kind, number, and location of the proposed
improvements.
Exhibit E. Final Site Plan
LN
EXHIBIT A
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment -Zone (NEZ) when a "...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."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
"Abatemento means the full or partial exemption from City • Fort Worth ad valorem taxes •
eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in
appraised value (as reflected on the certified tax roll • the appropriate county appraisal district)
resulting from improvements begun after the execution of the tax abatement agreement.
Eligible properties must be located in the NEZ.
"Base Valueft is the value of the property, excluding land, as determined by the Tarrant County
Appraisal District, during the.year rehabilitation occurs.
"Building Standards Commission" is the commission created under Sec. 7-77, Article IV.
Minimum Building Standards Code of the Fort Worth City Code.
"Capital investment" includes only real property improvements such as new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment
May 27, 2003
does NOT include land acquisition costs and/or any existing improvements, or personal property
(such as machinery, equipment, and/or supplies and inventory).
"City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council
on February 29, 2000.
"CommerciallIndustrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Project" is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitation" includes only physical improvements to real property, Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies).
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off -street parking.
"Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Minority Business Enterprise (MBE)" and 'Women Business Enterprise (WBE) "is a minority or
woman owned business that-has received. certification as either a certified MBE or certified
WBE by either the North Texas Regional Certification Agency, (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance. -
'Multi-family Development Project" is a development project which proposes to construct or
rehabilitate multi-family residential living units on property that is (or meets the requirements to
be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning Ordinance,
"Project" means, a "Residential Project", 'CommerciaLlIndustrial Development
Project ",
"Community Facility Development Project" "Mixed-Use Development Project' or a
"Multi-family Development Project."
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordan
Y ce
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
Mav ?7 ?001 1)
1. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply fora tax abatement by meeting the following:
a. Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement.
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
d. Property is not in a tax-delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed,. affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property. The seller or
owner shall provide the City information to support rehabilitation costs;
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and -
e. Property is in conformance with the City of Fort Worth Zoning Ordinance.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
1, 100% Abatement for ,9years.
I ff P years or
an aD -licant lies for a tax abatement aareement with a term of five
less his _section �shalf shall
May 27, 2003
Abatements for multi-family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement upon completion, a newly
constructed or rehabilitated multi-family development project in a NEZ must satisfy
the following: -
At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
(a) For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
(b) For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
2. 1 %-100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements for multi-family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City, Council
before construction or rehabilitation is started,
Years I through 5 of the Tax Abatement A 1[geg2gnt
Multi-family projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five of the Tax Abatement Agreement upon the satisfaction of
the following-
At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
A X -. , '-)"7 11 A r% 11
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
a. For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
b. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
Years 6 through 10 of the Tax Abatement Agreement
Multi-family projects shall be eligible for a 1%-100% abatement of City ad valorem
t . axes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
G. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
May 27, 2003 5
1. 100% Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement agreement with a term of five years or
less. this section shall apply.
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing Department for such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ must satisfy the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or $75,000, whichever is greater.
2. 1 %-100% Abatement of City Ad Valorem taxes up to 10 years
If I an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Economic and Community Development Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
Years I through 5 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following,
Years 6 through 10 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 1 %- 100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must Have a minimum Capital
Investment of $75,400 and must meet the requirements of subsection (c)
below; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the
Base Value of the property, or $75,000, whichever is greater and meet
the requirements of subsection (c) below.
c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement of City Ad Valorem taxes for 5 Years
If an applicant applies for a tax abatement agreement with a term of five years or
less this section shall apply.
Abatements for Mixed -Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
1-he applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed -use development project in a NEZ must satisfy the
following;
a. Residential uses in the project constitute 20 percent or ,more of the total Cross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or rhore of the total Cross Floor Area of the project;
and
1) A mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
May 27, 2003 7
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the Base
Value of the property, or $200,000, whichever is greater.
2. 1 %- 100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing
Department for such abatement.
The applicant must apply for the tax abatement before construction or rehabilitation
is started and the application for the tax abatement must be approved by City
Council.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 100% abatement of City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and /or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. A new mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater.
projects Tears 6 through 10 of the Tax Abatement Agreement
Mixed Use Development
valorem taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and /or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. A new nixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000, or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
A X,A,r 1'7 ') nA'l
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater; and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for
an agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
8. management plans.
1. If a NEZ is located-in a Tax Increment Financing District, City Council will determine
on a case-by-case basis if the tax abatement incentives in Section III will be offered
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section 111.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth
3. In order to I be eligible to apply for a tax abatement, the property owner /developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
ownerldeveloper; and owned by the
b. Not have any City of Fort Worth liens filed against any property
applicant property owner/developer. "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
Mnv 97 7001 9
agreement. If a property on which tax is being abated is sold, the City will assign the
tax abatement agreement for the remaining term once the new owner submits an
application.
7- A. property ownerldeveloper of a multifamily development, commercial, industrial,
community facilities and mixed-use development project in the NEZ who desires a
tax abatement under Sections III.B, C or D must:
a. Satisfy the criteria set forth in Sections III.B, C or D, as applicable, and Sections
III.E.1 E.2; and E3. and
b. File an application with the Housing Department, as applicable; and
c. The property owner must enter into a * tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the -property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
8. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
9. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
10. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
11, If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement bn the property for the remaining term. Any
sale, assignment or lease,of the property which is not permitted in the tax abatement
Mav 27.2003 10
agreement results in cancellation of the agreement and recapture of any taxes
abated after the date on which an unspecified assignment occurred.
F. APPLICATION FEE
The application fee for residential tax abatements governed under Section III.A is
$25.
2. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections III.B., C. and D., is one-
half of one percent (0.5%) of the proposed Project's Capital Investment, not to
exceed $1,000. The application fee will be refunded upon issuance of certificate of
final occupancy and once the property owner enters into a tax abatement agreement
with the City. Otherwise, the Application Fee shall not be credited or refunded to any
party for any reason.
IV. FEE WAIVERS
City Council shall determine on* a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for development fee waivers.
4. In order for a property ownerldeveloper to be eligible to apply for fee waivers for a
Project, the property owner/developer:
of the a 1i Lion and waiver he fees shall not be deemed to be
c of t
0 _0
tr �ti�
0 a J.0 m
Before must
i �c��n� n the adnt
rova'
of a S t.
_aj:�a D ;Ct of P - u
r roval n ro -construction the a licant must
't inn district.
a construction
ensure that the Droliect is located in the correct zonin I tnct.
May 27, 2003 11
I'm 1 0
Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services performed by the City of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects that expend at least
30% of the Base Value of the property on Eligible Rehabilitation costs:
1. All building permit related fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee
Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACT FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
NEZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter, then City Council approval is
required. Applicant may request the additional amount of impact fee waiver
through the Housing Department.
A. ELIGIBLE RECIPIENTSIPROPERTIES
1. City Council shall determine on a case-by-case basis whether a Project that
contain or contains a liquor store or package store is eligible to apply for a feel
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for release of city liens under er this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
A X-. . 11`7 1 n A'I 14 11
All
H
X1
31
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
4. In order for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V.B., C., D., and E. for a Project, the property
owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer;
b. must not have -been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years;
c. must not have any City of Fort Worth liens filed against any other property owned
by the applicant property owner/developer. "Liens" includes, but is not limited to,
weed liens, demolition liens, board-up/open structure liens and paving liens; and
d. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to apply for release of City liens.
WEED LIENS
The following are eligible to apply for release of weed liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing new multi-family, commercial, industrial, mixed-use or
community facility development projects.
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30,000. Releases of demolition liens in
excess of $30,000 are subject to City Council approval.
The following are eligible to apply for release of board-up/open structure liens,
PAVING LIENS
May 27, 2003 13
The following are eligible to apply for release of paving liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections 111. IV., and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee to the Housing Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the Economic Development Office. The application fee, review,
evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy
Statement for Qualifying Development Projects.
i
t, B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS Ill. IV, AND V
The Housing Department will review the application for accuracy and
completeness. Once the Housing Department determines that the application is
complete, the Housing Department will certify the property owner/developer's
eligibility to receive tax abatements and/or basic incentives based on the criteria set
forth in Section Ill., IV., and V. of this policy, as applicable. Once an applicant's
eligibility is certified, the Housing Department will inform appropriate departments
administering the incentives. An orientation meeting with City departments and the
applicant may be scheduled. The departments include:
2. Once Development Department, Water Department, Economic Development Office,
and/or other appropriate department receive a certified application from the Housin I g
Department, each department/office shall fill out a "Verification of NEZ Incentives for
Certified NEZ Incentives Application" and return it to the Housing Department for
record keeping and tracking.
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
mnu,)7 0001 1A
1. Property Tax Abatement for Residential Properties and Multi-family Development
Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing Department will evaluate a completed and certified application
based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (MNVBEs).
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by Council Committee.
Based upon the outcome of the evaluation, Housing Department may present
the application to the City Council's Economic Development Committee.
Should the Housing Department present the application to the Economic
Development Committee, the Committee will consider the application at an
open meeting. The Committee may:
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b) Request modifications to the application. Housing Department staff will
discuss the suggested modifications with the applicant and then, if the
requested modifications are made, resubmit the modified application to
the Committee for consideration; or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatemeni
agreement and is under no obligation to approve any tax abatement
application -or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant,
I
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
May 27, 2003 15
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Economic Development Office will evaluate a completed and certified
application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (MNVBEs).
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by Council Committee
Based upon the outcome of the evaluation, the Economic Development
Office may present the application to the City Council's Economic
Development Committee. Should the Economic Development Office present
the application to the Economic Development Committee, the Committee will
consider the application at an open meeting. The Committee may:
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement Which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b) Request modifications to the application. Economic Development Office
staff will discuss the suggested modifications with the applicant and then,
if the requested modifications are made, resubmit the modified application
to the Committee for consideration; or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
Mav 27 2001 in
3. Development Fee Waivers
a. For certified applications of development fee waivers that do not require Council
approval, the Development Department will review the certified applicant's
application and grant appropriate incentives.
b. For certified applications of development fee waivers that require Council
approval, City staff will review the certified applicant's application and make
appropriate recommendations to the City Council.
4. Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives.
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council.
5. Release of City Liens
For certified applications of release of City liens, the Housing Department will release
the appropriate liens.
VII. OTHER INCENTIVES
A. Plan reviews of proposed development projects in the NEZ will be expedited by the
Development Department.
B. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ:
May 27, 2003 17
VUi Ineligible P 'eCts
The following Projects Or BUsin8SS8S ShBU not be eligible for any incentives under the City' Of
Fort Worth's Neighborhood Empowerment Zone (EZ) Tax Abatement Policy and Basic
May 27,2003
Sexually Oriented Businesses
Legal Description
3413 May St Block 62, Lot 4, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3417 May St Block 62, Lot 5 Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3421 May St Block 62, Lot 6, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3425 May St Block 62, Lot 7, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
3429 May St Block 62, Lot 8, Ryan & Pruitt Addition, volume 204, Page 34 of the
Tarrant County plat records.
EXHIBIT C
FORT WORTH
Application No.
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
FORM C FOR DEVELOPMENT PROJECTS-
I, APPLICATION CHECK LIST
Please submit the following documentation:
A completed application form
'A list of all properties owned by the applicant in Fort Worth
❑ Application fee — cashier's check or money order (For tax abatement applications only.
For -multifamily, commercial, industrial, commercial facilities, and mixed-use tax
abatement applications: 0.5% of the total Capital Investment of the project, not to exceed
$1,000.00; For single family tax abatement applications: $25 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
❑ -Title abstract of the property (optional)
For Rehabilitation Projects Only:
❑ A completed set of Rehabilitation (Remodel) Plan and a list of eligible rehabilitation
costs*. (for applications of tax abatements and development fee waivers for rehab
projects only)
Eligible rehabilitation includes only physical improvements to real property. It does NOT include personal
property such as furniture, appliances, equipment, . and/or supplies. Total eligible rehabilitation costs shall equal
to -or exceed 30% of the Tarrant Appraisal District (TAD) appraised value of the structure during the year
rehabilitation occurs.
YOU MUST "PLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR
YOUR PROPERTY.
H. APPLICANT I AGENT INFORMATION
7. Agent (if any)
City State Zip
10. Fax No.:
If -you need further information or clarification, Please contact Jamie Warner at (817) 392-75011 or
Elizee TPVTichel at (817) 392-7336.
el-
FORTWORT
R
111. PROJECT ELIGIBILITY
1. 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 an exhibit showing the location of the project.
'T`M. I 'P,n"arfir nwnpreMn
Address
Zip
Code
Legal Description
Subdivision
Lot No.
Block No.
(Project Location)
3 41,,
CR-
134D MAY S-F
fPr,.71r L
A/1 &
(Please attach additional sheets of paper as needed.)
2. For each properties listed in Table 1, please check the boxes below to indicate if.
A10 - there are taxes due; or
1%lo • there are City liens; or
jVt9 * you 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 Cit. Liens n
Address Property City Liens on Property
Taxes Weed Board-up/6pen Demolition Paying Order of
I Due Liens Stucture Liens I Liens Liens Demolition
(Please attach additional sheets of paper as needed.)
3. Do you own other properties under other names? Yes No
If Yes, please specify
N
1
i
1
1
t
1
1
1
'
-
..
�Iy _
.... ...... .
1 1 1
1 -
•• 1 1
t
r
1
t :,
..
1
1
- 1
r
r
r
-rq
u � _ 1 1 °•t Y. �.. , . w -r ..•
p -.r ., �� _ ..� - ..- �
1 �
_ .r r' '• ,
tic
L
r
R,
-J
f
r
J ..
1
`
-
s
y.
r
a
9. c
"•� ---- �S�. �a^ w�n�w�u�
...........i�......-
........ . -.. -..
raw• _ -___- � -_ __. �.— _ —
.. ... __ _ -- _
Y-- c.- ��—
i
i
•.. ... ..
i i
sm
1
..
i
1 n e
a
r
7
L L J -:
1
-E
r _ 79 � '�•..i
.�3�
I I ?
11 1
�
_ I
it
1 -- -- ,
IJ
K ; r - --.
(T
L
1
L
..
I
i
1
!
.
1
y
1
rl ,
_
1 �i7 "
J
7
1 i _l I
.i
1
L
I
1
:1
.
1
rl ,
_
1 �i7 "
J
1 i _l I
.i
-
r
im
-
_
_ Its'! � „s�
�li RI +L.7ii
}P. ..
➢1 11 L
1
1
1 1
i A T
V" -
t I ORTWORTH
ATTACHMENT INCOME AND HOUSING PAYMENT GUIDELINES
Family Size 80% of Median Income*
1
$34,350
2
$39,250
3
$44,150
4
$49,050
5
$52,900
6
$56,900
7
$60,800
8.
$64,750
Maximum Housing Payment Affordable
for Individuals or Families at 80% of
Median Income
$859
$981
$1,104
$1,226
$1,323
$1,423
$1,520
$1,619
*Source: 2002 Fort Worth-Arlington PMSA HUD income Guideline
R
PROJECT DESCRIPTION
One-story Storage Warehouse
17,430 Sq. Ft.
Constructed of concrete by the tilt-wall method
Landscaped in accordance with current City ordinances
Paved off-street parking
Handicapped accessible via a permanent ramp
Building and parking area screened from rear alley by a 6-foot tall wooden fence
41-
C-h
IVTV
City of Fort Worth, Texas
COUNCIL ACTION: Approved on 11/11/2003 - Ordinance No. 15746
I moles I'll Fil T, 1:W1100-1 4:4
SUBJECT:
Public Hearing for Designation of Fort Worth Neighborhood Empowerment Reinvestment Zone No.
12 and Tax Abatement Agreement with the Lewis Carter Bledsoe and Barbara Babcock Bledsoe
Revocable Living Trust and Related Findings of Fact by the City Council for Properties Located in
the Hemphill/Berry Neighborhood Empowerment Zone (NEZ)
RECOMMENDATION:
It is recommended that the City Council:
Hold a public hearing concerning the designation of 0.71 acres of vacant land as described in Exhibit
"A" as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No. 12; and
2. Adopt an ordinance to designate the area as FWNERZ No. 12 pursuant to the Texas Property
Redevelopment and Tax Abatement Act, Tax Code, Chapter 312; and
3. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with
the Lewis Carter Bledsoe and Barbara Babcock Bledsoe Revocable Living Trust are true and
correct; and
4. Authorize the City Manager to enter into a Tax Abatement Agreement with the Lewis Carter Bledsoe
and Barbara Babcock Bledsoe Revocable Living Trust for the properties listed on Exhibit "A" in
accordance with the NEZ Tax Abatement Policy and NEZ Basic Incentives, as amended.
DISCUSSION:
REINVESTMENT ZONE
One of the incentives a municipality can provide in a NEZ, according to Chapter 378 • the Texas Local
Government Code, is an abatement of municipal property taxes for properties in the NEZ. The subject'
property described in Exhibit "A" is being designated as FWNERZ No. 12 so that the City can enter into a
tax abatement agreement under the guidelines set forth in the Tax Code.
A public hearing is required by the Texas Property Redevelopment and Tax Abatement Act (the Act),
Notice of today's public hearing was (1) delivered to the governing body of each affected taxing unit, and
(2) published in the newspaper at least seven days prior to this meeting. The Act requires the property
receiving a tax abatement to be located in a reinvestment or enterprise zone.
The proposed FWNERZ No. 12 expires after five years and may be renewed for periods not to exceed five
years.
TAX ABATEMENT TERMS
The Lewis Carter Bledsoe and Barbara Bledsoe Revocable Living Trust is the owner of the properties
listed in Exhibit "A." The real properties are located in the Hemphill/Berry NEZ. The Lewis Carter Bledsoe
and Barbara Babcock Bledsoe Revocable Living Trust applied for a five-year municipal property tax
abatement under the NEZ Tax Abatement Policy and Basic Incentive (M&C G 1 3208R, M&C G13580, M&C
G13662, and M&C C19551, as amended). The Housing Department reviewed the application and certified
that the properties meet the eligibility criteria to receive NEZ municipal property tax abatement. The NEZ
Basic Incentive offers a five-year municipal property tax abatement on the increased value of
improvements to the qualified owner of any new construction within the NEZ. The Lewis Carter Bledsoe
and Barbara Babcock Bledsoe Revocable Living Trust will invest, at a minimum, $385,000 to construct a
17,843 square feet storage warehouse (Exhibit "B") in the Hemphill/Berry NEZ. The form of the Tax
Abatement is attached as Exhibit "C."
Upon execution of the agreement, the total assessed value of the improvement (storage warehouse) used
for calculating municipal property tax will be frozen for a period of five years, starting on January 1, 2004,
at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1,
2003, for the properties as follows:
Pre-improvement TAD Value of Improvements
Pre-improvement estimated Value of Land
Total Pre-improvements Estimated Value
$ 0
$39,065
$39,065
The municipal property tax on the improved value of the properties is estimated at $2,331.18 per year on
the properties for a total of $11,665.88 over a five-year period. However, this estimate may be different
from the actual tax abatement value, which will be calculated based on the TAD appraisal value of the
property.
In the event of a sale of the property, the agreement may be assiged, with City Council approval, to the
new owner(s) so long as the new owner(s) meets all of the eligibility criteria as stated in the NEZ Tax
Abatement Policy and Basic Incentives.
These properties are located in COUNCIL DISTRICT 9.
FISCAL INFORMATIONICERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
• # • ,
bmitt
u,
S • e• f • City -Man ager � rs Qff� ic"b Reid Rector (6140)
Oriqiqating Department Head- Jerome Walker (392-7537)
Addonall-Information Contact: John Cox (7319)
1-ogname- 05RLF1)S,0F