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HomeMy WebLinkAboutContract 29900 Boulevard Builders Ridglea Place, LP Im STATE OF TEXAS § CITY SECRETARY CONTRACT NO. COUNTY OF TARRANT § TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 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 Reid Rector, its duly authorized Assistant City Manager, and Ridglea Place, LP ("Owner"), a Texas Corporation, doing business in the City of Fort Worth. 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 (NEZ) 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 NEZ, 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" ("NEZ Incentives"), these are readopted on April 22, 2003 and May 27, 2003. The May 27, 2003 NEZ Incentives are attached hereto as Exhibit "A" and hereby made a part of this Agreement for all purposes. 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"). D All E. On April 2, 2002, the Fort Worth City Council adopted Ordinance No. 15061 (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 2," City of Fort Worth, Texas (the "Zone"). F. Owner owns certain real property located entirely in the Ridglea Village Como NEZ 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 the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used for as a single-family residence that will be owner occupied. (the "Project"). H. On November 10, 2003, Owner submitted an application for NEZ incentives and for tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as Exhibit "C" and hereby made a part of this Agreement for all purposes. I. The City Council finds that 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 arein compliance with the NEZ Incentives, the Resolution and other applicable laws, ordinances, rules and regulations. J. The City Council finds that 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 contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Properly Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of a.single family residence, (i) of at least 1700 square feet in size, and built to the specifications listed in Exhibit D and (ii) having an appraised value of at least $140,000.00 as determined by an independent appraiser (collectively, the "Required Improvements"). Owner shall provide a survey of the completed home showing Required Improvements before the home is sold. The parties agree that the final survey shall be a part of this Agreement and shall be labeled Exhibit E. Minor variations, and more substantial variations if approved in writing by bo —of4lie parties to this 2 Agreement, in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "D". 1.2. Completion Date of Required Improvements. Owner covenants to substantially complete construction of all of the Required Improvements within two years from the issuance and receipt of the building permit, 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 sold so that it is continuously used as the primary residence of the Home Buyer in accordance with the description of the Project set forth in the Exhibit "D55, 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 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 ($17,040.00) the year in which this Agreement was entered into: 3 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 will 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 Term of Abatement. The term of the Abatement (the "Tenn") shall begin on January I of the year following the calendar year in which the Required Improvement is sold to a Home Buyer to be used as its primary residence ("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately t preceding the fifth (5h) anniversary of the Beginning Date. Upon the sale to a Home Buyer, City shall determine if the Required Improvements have been completed in satisfaction of the terms of this Agreement. City shall certify such fact. 2.4. Protests Over Appraisals or Assessments. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. 2.5. Abatement Application Fee. The City acknowledges receipt from Owner of the required Abatement application fee of twenty-five dollars ($25,00) for each application for a total of$1375. 3. RECORDS, CERTIFICATION AND EVALUATION OF PROJECT. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any time during construction of the Required Improvements 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 eval lar, 4, 4 3.2. Certification Owner shall certify annually to the City that, it is in compliance with each applicable term of this agreement. The City shall have the right to audit at the City's expense the financial and business records of Owner that relate to the square footage, specifications in attached Exhibit D and appraised value of the Required Improvements and once the city property taxes are abated, the home owner must provide documentation that he or she is using the Required Improvements as its primary residence (collectively, the "Records") at any time during the Compliance Auditing Term in order to determine compliance with this Agreement and to calculate the correct amount 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 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. 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 Tenn, the City shall make a decision and rule on the actual annual amount of Abatement available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. 4. EVENTS OF DEFAULT. 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner fails to construct the Required Improvements as defined in Section 1.1; (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) HOME BUYER DOES NOT USE THE P MISES-AS—PR-MARY 5 RESIDENCE ONCE THE ABATEMENT BEGINS (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. If an Event of Default which is defined in Section 4.1 has not been cured within the time frame specifically allowed under Section 4.2, the City shall have the right to terminate this Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's economic development and redevelopment efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversight and involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon termination of this. Agreement for any Event of Default, Owner shall 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 is not a penalty. This amount may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest(currently, Section 33.01 of the Code). i 6 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 Tenn 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. S. EFFECT OF SALE OF PREMISES,. Except for an assignment to Ridglea Place, LP's Affiliates, Ridglea Place, LP's first mortgagee or to a homeowner who will use the Required Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner and cannot be assigned to a new owner of all or any portion of the Premises and/or Required Improvements without the prior written consent of the City Council, which consent shall not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and (11) the proposed purchaser agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City Council's prior 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. For the purposes of this Section, "affiliate" shall mean (i) any entity in which at least 25% of the ownership consists of individuals, partnerships, trusts (or their individual partners or beneficiaries) or other entities included whether by legal title or beneficially, in the present ownership of Owner or (ii) any entity which has at least a fifty-one percent (51%) ownership interest in Owner or any entity in which Owner has at least a fifty-one percent (51%) ownership interest. Upon assignment to Ridglea Place, LP's affiliates or his first mortgagee, or to a homeowner who will use the Required Improvements as its primary residence or the homeowner's mortgagee, Ridglea Place, LP shall have no further obligations or duties under this agreement. In addition, upon assignment to any-other entity with the written consent of City Council, Rid ea Place, LP shall have no further duty or obligation under this agreement. In no event shall the abatement term be extended in the event of a subsequent sale or assignment. 7 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 Michael Vick, President Attn: City Manager Boulevard Builders, LLC 1000 Throckmorton General Partner for Ridglea Place, LP Fort Worth TX 76102 4809 Cole Avenue Suite# 345 Dallas, Texas 75205 and Housing Department Attn: Jerome Walker, Director 1000 Throckmorton 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 "D", the body of this Agreement shall control. 8 7.4. Future Application. A portion or all of the Premises and/or Required Improvements may be eligible for complete or partial exemption from ad valorem taxes as a result of existing law or future legislation. This Agreement shall not be construed as evidence that such exemptions do not apply to the Premises and/or Required Improvements. 7.5. City Council Authorization. This Agreement was authorized by the City Council through approval of Mayor and Council Communication No. C-19864 on November 18, 2003, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled to intervene in any such litigation, 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. 7.9. Recordation. A certified copy of this Agreement in recordable form shall be recorded in the Deed Records of Tarrant County, Texas. 9 7.10. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 7.11. 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. 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. IPA- 10 EXECUTED this day of ,r �' , 2004, by the City of Fort Worth, Texas. EXECUTED this ( day of , 2004, by Michael Vick. CITY OF FORT WORTH: RIDGLEA PLACE, LP: By: -, ," ... �,;,,�...fir' � �.,. Reid Rector Michael Vick, President Assistant City Manager Boulevard Builders, LLC General Partner for Ridglea Place LP ATTEST: ATTEST: By: wrz 1 (4 By:— 1 ,5 ity Secretary (, w APPROVED S TO FORM AND LEGALITY: By: Cynthia darcia Assistant City Attorney M & C: ., 11 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 Mayor and Council Communication 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 19Y 4( day of 2004. Notary Public in and forAA-- the State of Texas HETTIE LANE MY COMMISSION EXPIRES. July 26.2007 Notary's Printed Name PWTV" .......... 12 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared k' 'r , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated. .., . GIVEN UNDER MY HAND AND SEAL OF OFFICE this da� y of h *'u(v' , 2004. " i, Np ary Pub is in and for th` State of Texas Notary's Printed Name .PAY COMMISSION WWARNER ._.._._.. ' EXPIRES November 5,2067 13 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 Survey �.v 14 ' ' \ `^ . . EXHIBIT A CITY OFFORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC INCENTIVES i GENERAL PURPOSE Chapter 378 of the T8X8S Local Government Code @|k]vvs 8 rnuniCip8)hv to Create a Neighborhood Empowerment-Zone (NF7) when a ,...rnunidpa/ib/ determines that the creation of the 2oDe would promote: (1) the CFe@1iOD of affordable housing, including manufactured housing, /n the Zone; i2\ an iUCFeaSB in economic developentin the zone; (3) an jOcF6a'Se in the quality of social services, eduC8timO. Or public safety provided to residents of the zone; or (4) the rehabilitation of affordable housing in the zone." The City, badopting 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 370 of the Texas Local Government Code Or by City COunCil resolution. yJ However, any tax abatement awarded before the expiration Of 8 EZ Sh�|| carry its full ` nn according toits tax abatement agreement approved bythe City Council. Asniandatedbvstate |avv, tbepn]pertvtoxabatennentunderthiapo|ioyapp|iestothoovvnersof nsa| property. Nothing in the policy 3ha/l be construed as an obligation by the City of Fort Worth to approve any tax abatement application. ' U' DEFINITIONS "4b8tement" means the full Or partial exemption from City of Fort VVOdh 8d VB|Vrenl taxes on eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in appraised value (8s reflected on the certified tax roll of the appropriate CObntv appraisal district) resulting from inlpn3ve[OeOt3 begun after the execution of the tax 8bat8nO8DL agreement. Eligible properties must be located in the NEZ. "Base Value."is the value Of the property, excluding land, as determined by the Tarrant County Appraisal Disthot, during the year rehabilitation occurs. "Building Standards C0nnn7isskV7" is the commission Created under Sec. 7-77. Article |V� Minimum Building Standards Code of the Fort Worth City Code. . - "Cao/ba/ Investment" includes only real property improvef8d|iOBs and structures, site improvements, facility expansion, and faci| @! Investment Mov272003 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. "Commercial/Industrial 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 dimension's 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 b he.....City-of y I __.Eort Worth in accordance with the Property Redevelopment and Tax Abatement Adcod ified in Chapter 2 of the Texas Tax Code, or an area designated as an enterprise zone ursopnt to-' Texas nterprise Zone Act, codified in Chapter 2303 of the Texas Government C, de„,,_ May 27,2003 2 ' ` ~ ~ Ill. MUNICIPAL PROPERTY TAX ABATEMENTS A. RESIDENTIAL PROPERTIES LOCATED /N /\ NEZ 1. For residential property purchased before NEZ design8MOn, a homeowner shall be eligible to app/yfor"a tax abatement by meeting the following: 3. Property is owner-occupied and the primary residence of the homeowner prior to the final NEZ designation. HVrneowner .Sho|| provide proof of ownership by 3 Vv8rrBOh/ deed, affidavit of heirship, OF 8 probated VV/l/. and shall ShOVV proof Of primary residence byhomestead exemption; and b. Property is rehabilitated after NEZde8igOatiOn and City COUOd) approval of the tax abatement. C. Homeowner must perform Eligible Rehabilitation on the p[Op9dx after NEZ designation equal tooriOexcess of3O% ofthe.Base Value ofthe 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, ahomeowner shall be eligible to apply for a tax abatement by meeting the following: a. Property is constructed or rehabilitated after yJEZ designation and City Council approval Ofthe tax abatement; b. Property is owner-occupied and is the primary residence of the homeowner. Homeowner shall provide proof of ownership by 8 YV8Fn2nb/ deed. affidavit Of heinsh/p, or o probated vvi||. and Sh8|| 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 Bose \/a|Ue of the property. The seller or owner shall provide the City information tOsupport rehabilitation costs; d. Property is not in 8 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 OVVOed single h9rni|y p[Opertv, an investor 8hB|| be eligible to apply for 3 tax abatement bYmeeting the following: ' 8. Property is constructed or rehabilitated after MEZ designation and City Council approval ofthe tax abatement; b. For rehabilitated property, Eligible Rehabilitation costs on the property shall be equal tOo[ |Oexcess of 3U% Ofthe Base Value ofthe property; C. Property is not in 3 tax-delinquent 8t8tUS when the abatement application is submitted; and d. Property is in conformance with the City OfFort Worth Zoning Ordinance. ' B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN '4NEZ 1. 100% Abatement for 5 years. �~ - Abatements for rnU0-tarnik/ development projects for. up to 5 years one subject to City COUOC|| 3pprDVgi The applicant may apply with the Housing Department for such abatement. The @pdiCBDt must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for @ property tax abatement upon completion, @ newly constructed or rehabilitated nnU|ii-farnUy development project in a NEZ must satisfy the following: - At least twenty percent (20%) of the hDt3| units constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban Development) to persons with inCOnn8S otorbelow eighty percent (00%) of area median iOCOnle based DO family size and such units Sh8|| be set aside for persons at or b8/OvV 00% Of the median income as defined by the U.S. Department Of Housing and Urban Development. City Council may waive Or reduce the 20% affOrdabiitv requirement OO 3case-by-case basis; and - (8) For a multi-family development project constructed after NEZ designation, the project nnUSt provide at least five (5) residential living units OR have a minimum Capital Investment Of$20O`0OO; or (b) For a �nehobi|itabOD 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$2OO.00O. 2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years Jf an applicant applies for a tax abatement agreement with a term of more than five Abatements for multi-family development projects for Up LO 10 years are subject to City Council 8ppr6v8|. 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 1 through 5 of the Tax Abatement Agreement Multi-family projects shall be eligible for 100% abatement Of City 8d Va|onann 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 orbelow eighty percent (80%) of area n18U|8O 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 Hous/Dg and Urban Development. City Council may waive or r8dVCB the 20% affordability requirement on a case-by-case basis; and 8. For 0u)U-faD0i|ydevelopment project ConstrUoted after NEZ.designation, the project rnUSt provide at least five /5\ residential living units OR have @ minimum Capital Investment Of$2OO.00O; or b. For a [8hahili[BUUD project, the propeft« must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at |88St 30% Of the Base Value Of the property. Such Eligible Rehabilitation costs nOUSL COrne from the rehabilitation of at least five /5\ residential living units or a minimum Capital Investment of$20O.00O. Years 6 through 10 of the Tax Abatement Agreement Multi-family projects shall b8 eligible for a 1%-100% abatement of City ad valorem taxes for years six through i8O Of the Tax Abatement Agreement upon the satisfaction ofthe following: a. At least' twenty percent (20%) of the iU18| units constructed or rehabilitated shall be affordable /8S defined by the U. S. Department of Housing and Urban Development) to persons with incomes Qt0Fbelow eighty p&cent (80%) of area median income based OD faDl/|v size and such units aha/| 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 2O affordability requirement on basis; and 1. For multi-family development project constructed after NEZ designation, the project must provide at least five /5\ [8oide0b@| living units OR have a minimum Capital |OVestOOBrt of$200,000; or 2. For 8 rehabilitation project, the property must be rehabilitated 8ft8[ 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 o minimum Capital Investment Of $2OO.00O. b. Any other terms as City Council of the City Of FUrt VVOdh deems BppFopriate, ino|uding, but not limited to: 1. utilization Of Fort Worth companies for an agreed upon percentage of the k]ia| costs for construction contracts; 2. utilization of certified minority and vvonn8n owned business enterprises for an agreed upon percentage Ofthe total costs for construction contracts; 3. property inspection; 4, commit to hire an agreed upon percentage of Fort Worth residents 5. oOnnnlit to hire an agreed upon percentage of Central City residents O. landscaping; 7. tenant selection plans; and 0. management plans. C. COMMERCIAL, INDUSTRIAL AND CO DEVELOPMENT PROJECTS LOCATED IN A NEZ May 27- 2O03 5 ' ., , 1100% Abatement of City Ad Valorem taxes for 5 vears If an applicant applies for a tax abatement agreement with a term of five years o less, this section shall apply. /\babsrnentG for COnnrnerci8[ Industrial and Community Facilities Oeve|Opnn8rd 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 DlUSt apply for the tax ab818rneOt and be approved by City Council before construction O[ rehabilitation iSstarted. In. Order to be ellQib|8 for a property tax abaf8nnSn[ 8 nAvv|y constructed Or rehabilitated COrnrne[d8|/iDdUSth8| and CnrnnnunitV facilities development project in a NEZ must satisfy the following: a. /\ cO[nrnerCia[ industrial or 8 community facilities development project COD3tnuCbed after NEZdesignation must have a minimum Capital Investment of $75,000; or b. For rehabilitation project, it nnUnt be rehabilitated after NEZ designation. Eligible Rehabilitation costs OO the property shall be at least 30% of the Base Value Of the property, O[ $75'00O, whichever isgreater. 2. 1%-100% Abatement of City Ad Valorem taxes uQ to 1b years If an applicant applies for a tax abatement agreement with a term of more than 'five years,,this section shall apply. Abatements 8greenl8OhS for a Commercial, Industrial and Community Facilities Development projects for up to 10 years are subject to City Council approval. The Bpp|iC8O1 may apply with the Economic and Community Development Department for such abatement. The applicant rnUSt apply for the tax abatement and be approved by City Council before COnStFUCtiOn Or rehabilitation is Started. Years 1 through 5 of the Tax Abatement Agreement COnlnn8rci8[ |OdUSth8| and Community Facilities Development projects 3h8U be eligible for 100% abatement of City 8d valorem taxes for the hr3i hVB years Of the Tax Abatement Agreement upon the satisfaction ofthe following: a. A COr0rnBrCi8|, industrial or a community facilities development project COnSirUC<ed after NEZ designation must have 8 minimum Capital Investment of $75,000; or b. For rehabilitation project, it must be rehabilitated after NEZdeuignaUOO. Eligible Rehabilitation costs On the property shall be at least 3096 of the Base Value Of the property, Or-$75.00O. whichever |sgreater. May 27, 2003 6 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 $75,000 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; 1 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. 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 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 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 (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%-10.0% 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 Agreernent 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. Years 6 through 10 of the Tax Abatement Agreement Mixed Use 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. 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 Qr,,O§s Floor Area of the project; ................ c. A new mixed-use development project constru ted,,pffer -NEZ,de' ignation must have a minimum Capital Investment of $200,00 or,dor a rehabilitation project, it must be rehabilitated after NEZ designation. El iblol Rehabilitation n c sts on the ......... May 27, 2003 8 ~ ' property shall be at least 30% of the Base \/8|Ue Of the property, or $200,000, whichever isgreater; 8nd d. Any other terms as Qh/ CnUOd| 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 rniO0[itv and VVOrneO owned business enterprises for 80 agreed upon percentage of the total costs for construction contracts; 3. property inspection; 4. COrnnnit to hire an agreed Upon percentage Of Fort Worth residents 5. Cornrnit to hire an agreed upon percentage of Central City residents 6. landscaping; 7. tenant selection plans; and 8. management plans. E. ABATEMENT GUIDELINES 1. U a NEZ is |Oc8ksdln aTax Increment FiD2D[jOg District, City Council will determine on a case-by-case basis if the tax abatement incentives in Section i|| will be offered to eligible Projects. Eligible Projects nluS1 meet all eligibility requirements specified inSection Ui 2. U @ Project is located in the Woodhaven Neighborhood Empowerment Zone, in order to be m3OSid8ned "eligible" to apply for a tax abatement Under this Policy, the Woodhaven CVrnrnUnitv [lev8|opFO8Dt Corporation and the VVOOdh3VeD Neighborhood Association must have submitted 8 letter Ofsupport for the Project to the City OfFort Worth 3. In order to be eligible to apply for a tax abate[n8nf, the property owner/developer must: a. Not be delinquent in paying property taxes for any property owned by the owner/developer ; and b. Not have any City of Fort Worth liens filed against any property owned by the applicant pnopertyOvvner/deve/ope[ "Liens" include, but are not limited to, weed |ieDS. demolition |iens, board-uD/op8nstructure liens and paving liens. 4. Projects to be constructed On property to be purchased under contract for deed are not eligible for tax abatements. 5. 0hCe a NEZ property owner Of8 residential property (including nnU|ti-fanni|») in the NEZ 3@hSfi8s the criteria set forth in 88CtiDOS |I|./\. E.1. and E.2. and applies for an abatement, a propqrty owner may enter into a tax,abatement agreement with the City Of Fort Worth. The tax abatement agreement shall automatically terminate if the property subject to the tax abatement agreement is in violation of the City Of Fort VVOdh'S Minimum Building Standards Cd nvioted Of such violation. 5. A tax abatement granted under the criteria, (||. can only be granted O0Ce for a property in a NE�� for specified in the / May 27, 2003 9 agreement. If 2 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 owner/developer of a multifamily development, commercial, industrial, community facilities- and mixed-use development project in the NEZ who desires a tax abatement under Sections 111.13, C or D must: a. Satisfy the criteria set forth in Sections 111.13, C or D, as applicable, and Sections III.E.1 E.2; and E3. and b. rile 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. On or before February 1st of every year during the life of the agreement, any individual or entity- receiving a tax abatement from the City of Fort Worth shall provide information and documentation which details the property owner's compliance with the terms of the respective agreement and shall certify that the owner is in compliance with each applicable term of the agreement. Failure to report this information and to provide the required certification by the above deadline shall result in cancellation of agreement and any taxes abated in the prior year being due and payable. .................. 11. If a property in the NEZ on which tax is being a at6dis sold,,Jhee owner may T enter into a tax abatement agreement on the pr )e'rfydr,thei,,rI�M,' alhi g term. Any t sale, assignment or lease of the property which i Sir no p mittenthe t x abatement, May 27, 2003 10 8QF8enOent ronU|tn in cancellation of the agreement and recapture of any taxes abated after the date onwhich anunspecified assignment occurred, F. APPLICATION FEE 1. The application fee for residential tax abatements governed under Section |||.A is $25. 2. The application fee for nnu|1i-fanlik/ commercial, iDdUstda|, oonnnnun|h/ facilities and mixed-use d8we|OprOont projects governed underSecbDO3 iU.B, C. and [}., is one- hGlf of one pen:eht /0.5%\ of the proposed Project's Capital Investment, not to exceed $1'000. The application fee will be refunded Upon issuance ofcertificate of final occupancy and once the property owner enters into 8 tax abatement 8gFSerOeDt with the City. Otherwise, the Application Fee shall not becredited Orrefunded toany party for any reason. |\/. FEE WAIVERS A. EL|BBLEREQP1ENIS/PROPERT|ES 1. C|dv Council shall determine on a. case-by-case basis whether a Project that will contain or contains 8 liquor store Or package store is eligible to apply for 8 fee waiver. 2. If 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 COrnrnUnitv 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 contract for deed are not eligible for development fee waivers. 4. in order for 8 property owner/developer to be eligible to apply for fee vveimer8 fora Project, the property owner/developer: 8. must nUbrni[ an application to the City; u. rnUSt not be delinquent in paying property taxes for any property OVvnBd by the OVvn8r/deve|Op�rOrapplicant; C. must not have any City liens filed against any property Ovvn8d by the applicant property owner/developer, including but not limited to. VY8Od liens, darnD|iUOO |ieOS. board-up/open StFUCtUFe liens and paving |iBOS; and d. of Project that will contain or contains a liquor store, package sb]r8 ora sexually oriented business has received City Council's determination that the Project is ' eligible to apply for fee waivers. ' .' ' ' _ B. DEVELOPMENTFEES - 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 one waive'd for new construction projects or rehabilitation projects that expend at least 30% ofth� Base Value of the property OO Eligible Rehabilitation costs: 1- All building permit related fees (including Plans Review and Inspections) 2. Plat application fee (including concept p|an, preliminary p|8t, final plat, short form rep|at) 3. Board DfAdjustment application fee 4 [)SnlO(itk}O fee 5. Structure moving fee O. 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 ofwater and wastewater impact fees will be applied. 2. CorOnne[Ch5[ industrial, mixed-use, Orcommunity facility development projects in the NI EZ. a. Automatic 100% waiver of water and vvashavv8t8[ impact fees Up to $55.000 or equivalent to two 6-inch 0letG[S for each cDr0DlenCi@|' industrial, mixed-use or community facility development project. b. If the project requests an impact fee waiver exceeding $55,000 or requesting a vv3k/er 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. V. RELEASE OF CITY LIENS A. ELIGIBLE RECIPIENTS/PROPERTIES 1. City Council ShoU determine OD a case-by-case basis whether a Project that will contain or contains a liquor StD[8 or package store is eligible to apply for 8f8e Vvak/er. 2. |f8 Project is located in the VVDOdhawSn Neighborhood Empowerment Zone, in order to be considered "eligible" to apply for release of city liens under this Policy, the VVondhaV8O Community Development Corporation and the Woodhaven ' May 27, 2003 12 � _ Neighborhood Association must have SubnlK1eU a letter of support for the Project to the City ofFort Worth. 3. Projects to be cons[[U{ted OD property to be purchased under contract for deed are not eligible for any release of City Liens. 4. In order for @ property OWner/d8v8|Oper to be eligible to apply for Q release Of city liens COOt8iDCd in Section \/.B, [|, [), and E. for Q Project, the property owner/developer: a. must submit on application to the City; h. 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 Cn[nnnis3|On's Order of Demolition where the property was demolished within th8last five /5\ years; c. must not have any City ofFort Worth liens filed against any other property owned bythe applicant property OvvDer/d8velOp8r. "Li8ns" includes, but isnot limited to, weed liens, demolition liens, board-up/open structure |ien-5and paving liens; and d. Of a Project that oOOt8iOS 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. B. WEED LIENS - The following are eligible to apply for release of weed liens: 1. Single unit owners performing rehabilitation ontheir properties. 2. Builders O[ developers constructing new homes nnvacant lots. 3. []vvnerS performing rehabilitation on nnu|U-farnUy, cOrnmeroia|, industrial, rnixOd-use, o[community facility properties. 4. Developers constructing new nnu|1i-farni|y, conDrnercio|, iOdus1ha|, mixed-use or community facility development projects, C. OEKUOL|T|C}N LIENS . Builders or developers developing or rehabilitating a property for o Project are eligible to apply for release of demolition liens for up to $30,000. Releases of demolition liens in excess Of$3O'OOOare subject 10City Council approval, D. BOARD-UP/OPEN STRUCTURE LIENS The fdk]Vvng are eligible to apply for release of board-up/open stnuoiUnO liens: 1. Single unit owners performing rehabilitation 0ltheir properties. 2. Builders or developers constructing new single family homes on vacant lots. 3. Owners performing rehabilitation on nnu|ti-farni|y, oonlrneroio|, iOduotha/, mixed-use, o[community facility properties. 4. �]eV8lOpe[S c003[UCtiDg rnU|ti-fBOl||y. commercial, i iXed^Us8. or COnnOlUOity facility projects. E. PAVING LIENS 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. VI. PROCEDURAL STEPS A. APPLICATION SUBMISSION 1. The applicant for NEZ incentives under Sections III. 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. B. CERTIFICA71-IONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V 1. 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 III., 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: a. Housing Department: property tax abatement for residential properties and multi- family development projects, release of City liens. b. Economic Development Office: property tax abatement for commercial, industrial, community facilities or mixed-use development projects. c. Development Department: development fee waivers. d. Water Department: impact fee waivers. e. Other appropriate departments, if applicable. 2. Once Development Department, Water Department, Economic Development Office, and/or other appropriate department receive a certified application from the Housing 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 May 27, 2003 14 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 (M/WBEs). (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 op en 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 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. c. Effective Date for Approved Agreements 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 proj pecified in the tax abatement agreement), Unless otherwi �,5p�6ifI04 , jt i h @,g eement, taxes S I levied during the construction of the projects due,4n,,,0,,paya le. r IA ... ......... May 27, 2003 15 ' '^ � 2. Property Tax -Abatement for CDOln0eroiB|. Industrial, Community Facilities, and Mixed-Use Development Projects e. 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 i3X base. (b) Costs tothe City (such as infrastructure participation, etc.). (c) Percent nfconstruction contracts committed to: (i) Fort Worth based firms, and ([i) Minority and Women owned Business Enterprises (K4/VVBES). /d\ Other items which the City and the applicant may negotiate. /2\ Consideration by Council Committee Based upon the OUtCOAne of the evaluation, the Economic Development (]ffioe 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 8tanopen meeting. The Committee may: (a) /\pprQV8 the application. Staff will then incorporate the application into a tax abatement agreement Which will be sent to the City CDUno|| with the Committee's recommendation toapprove 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 DlOdifiC8UOOa 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' |ODOrpDr8t9 the application into 8 tax abatern(�nt agreement for future consideration by the City Council. (3) Consideration bythe City Council The City Council retains sole 8Uthohb/ to approve or deny any tax abatement agngemenL and is under OO obligation to approve any tax abatement application ortax abatement agreement. The C�vof Fort Worth is under no obligation to provide tax abatement in any amount or value to any applicant. c Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective On January nfthe year following the year inwhich aCertificate OfOccupancy (CO) is issued for the qualifying development project (unless otherwise specified in the tax abatement 8greenlen0. Unless otherwise specified in the agreement, taxes levied during the construction ofthe project sha|| be due and payable. May 27, 2003 ' 16 ` . . . 3. Development Fee Waivers @. For certified applications of development fee waivers that do not require Council 8ppFOV8[ the [)gVg|OpmeOt Department will review the certified applicant's application and grant appropriate incentives. b. For certified applications Of development fee YvoivenS that require Council approval, City staff will review the certified applicant's application and make, appropriate recommendations tothe 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. FOrCertifiied applications Of impact fee waivers that require Council approval, the VV31er Department will review the c8rfifiod applicant's application and nn8k8 appropriate recommendations b] the City Council. 5. Release of city Liens For certified applications of release of City liens, the Housing Department will release the appropriate liens, ' VU' bTHER INCENTIVES A. Plan reviews of proposed development projects in the NEZ will be expedited by the Development Department, U. The Qh/ Council may add the following incentives to 8 NEZ in the Resolution adopting the NEZ: - 1. Municipal sales tax refund 2. Homebuyers assistance 3. Gap financing 4. Land assembly 5. Conveyance oftax foreclosure properties 6. Infrastructure irnpnDmsnlenta 7. Support for Low Income Housing Tax Credit (L|HTC) applications 8. Land use incentives and zoning/building code exemptions, e.g.. mixed-use, density bonus, parking 8xeimptiOO 9. Tax Increment Financing (TIF) 10. Public Improvement District (PID) 11.`ToX-eX8nlptbondhOanoing 12. New Model Blocks 13. Loan guarantees 14. Equity investments 15. Other incentives that will effectuate the intent and ' yWav37, 2003 17 Vill. Ineligible Projects The following Projects or Businesses shall not be eligible for any incentives under the City' of Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic Incentives: Sexually Oriented Businesses May 27, 2003 18 EXHIBIT B Property Description 3815 Westridge Ave., Block 1R Lot 1, Ridglea Place Addition m FORT WORTH _Eylh 'b i V­ Application No. CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM PROJECT CERTTFf CATf ON APPLICATION FORM C FOR DEVELOPMENT PROJECTS I. APPLICATION CHECKLIST 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) XJ 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 F] Title abstract of the property (optional) For Rehabilitation Projects Only: F] A completed set of Rehabilitation (Remodel) Plan and a list of eligible rehabilitation I......... (Remodel) 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 finmiture, 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 YOU MUST APPLY FOR TAX AIIATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR PROPERTY. I.I. APPLICANT/AGENT INFORMATION 1. Applicant: 2. Contact Person: Corrigan Investments Inc. . Joe Kline 3. Address- 41011 cic-lt6 3q5- Antlay 5 4311 Oak 1,awn TX _............ Suite 450 Dallas 75219 Street City State Zip 4. Phone no CS 1,4) 2.1 ri-22"^2. 5. Fax No.: �Ziq{ Zi t- ZZ,3,3 �214) 559-4840 (214) 559-3347 6. Email: ki'^ve-t dcorrzkai@cres-dallas..com 7. Agent(if any) Joe Kline 8. Address: 1305 W. Magnolia Ave. , Ste. E Fort Worth., TX 76104 Street 1A� oo� city State Zip 9. Phone no.: (817) 207-8080 10. Fax No.: (817) 207-8081 11. Email: jpkcoQswbe11,I net If you need further information or clarification, please contact Erika Anderson at (817) 392-7507 or . Elizee Michel at (817) 392-7336. FORT WORTH 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, Table I Property Own ership Address Zip Legal Description (Code Subdivision Lot No. Block No. (project Location) _4 3700 Westridge Ave. 76116 Ridgeway Manors. AR 308 E. Be1knqp St. 761Q? 'Ft_W_0rigJnn1 TnTlm 1-.& 9 11 108 Calhoun St. 76102 Ft.W.Original 11 105 Jones St. L6..1,Q2Ft,W,Origin & 8 11 � 307 E. Weatherford St. 76102 Ft:.W.OriRinal To 6B 11 309 E. Weatherford St. 76102 Ft.W.Original To 7A 11 304 .E. Belknap St. 76102 Ft.W.0riizinal To 3 & 4 (Please attach additional sheets of paper as needed.) 2. For each properties listed in Table 1,please check the boxes below to indicate if: • there are taxes due; or • there are City liens; or • 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 City Liens Address Property City Liens on-Property Taxes Weed Board-up/Open Demolition tion Paving Order of Due Liens Stucture Liens Liens Liens Demolition D ❑ El El 1:1 ❑ 11 F] ❑ E 0 ❑ L] Ll 1:1 El ❑ El El El 11 11 El El 1:1 1-1 (Please attach additional sheets of paper as needed.) 3. Do you own other properties under other names? . r_1 Yes F-1 No If Yes,please specify FW Corkline D.evelopment Ltd. (Listed in Table .1) 4. Does the proposed project conform with City of Fort Worth Zoning? 0 Yes ❑ No If no,what steps are being taken to insure compliance? S. Project Type: FK F El Single Multi- Commercial Industrial Community Mixed-Use Family Family Facilities 2 FORT WORTH 6. Is this a new construction or rehab project? [Z New Construction F1 Rehab 7. What is the status of your project? .[Z In Planning Stage r-1 Under Construction ❑ Completed 8. If your project has been completed, when was it completed? 9. How much is the total development cost of your project? Ai6y-24 10. Will the rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (TAD) assessed value of the structure during the year rehabilitation occurred? F Yes F No *Only physical improvements to real property is eligible. DO NOT include personal property such as furniture, appliances, equipment, and/or supplies. u..How much is the total square footage of your project? aO6 square feet 12. For a single family homeownership, mixed-use, or multi-farmly development project, please Jrffl 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, V,"R R 71 g 5 ME 010 MAN RAN�Dr V gg fig Pay �;gy'Nx am, V1, WE, > 80% of AMFI** At or below 80% of A2VIF TO BE' **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 it you are requesting a waiver of this requirement. El industrial or torrimunity fafflifies prolft I utlledtt' iff-efoutage-of non-residential Wace. Commercial Industrial Community Facilities square feet square feet square feet PLEASE ANSWER QUESTIONS NO.10 TO NO. 12 ONLY IF YOU ARE APPLYING FOR A TAX ABATEMENT. 15. How much will be your Capital Investment"* on the project? Please use the following table to provide the details and amount of your Capital Investment(Attached additional sheets if necessary). Table 4 Ca it I Investment of the Protect ME THIM, W,911 ON V7 ............... Offill," "WROM, �Fl - Z' gp"RF 4 ,'r' 2112 0 1 SEEM 3 FORT WORTH "Capital Investment includes only real property improvements such as new facilities and structures, site improvements, facilityexpansion, and facility modernization. Capital Investment DOES NOT include land acquisition costsand/or any existing improvements, or personal property (such as machinery, equipment, and/or supplies or inventory). 16. For a commercial, industrial, community facility or mixed-use project, how many employees will the project generate? 17. For a mixed-use project, please indicate the percentage of all uses in the project in the following table. Table 5 Percentage of Uses in a Mixed-Use Project VIA; R 17 a Pill Residential Office Eating Entertainment —Retail sales Service E ; at TM IV. INCENTIVES 1. What incentives'are you applying for? Municipal Property Tax Abatements 5 years More tha-,n 5ye,ars Development Fee Waivers ® All building permit related fees (including Plans Review and Inspections) Plat application fee (including concept plan,preliminary plat, final plat, short form replat) Board of Adjustment application fee Demolition fee 5d Structure moving fee © Community Facilities Agreement (CIA) application fee Zoning application fee Street and utility easement vacation application fee Impact Fee Waivers Impact fee waiver Meter Size How many meters? Release of City Liens 7X Weed liens F_X1 Board up/open structure liens Demolition liens Paving liens 4 FORT WORTH V. ACKNOWLEDGMENTS I hereby certify that the information provided is true and accurate to the best of my knowledge. I 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 liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of the project. I understand that I am responsible in obtaining required permits and inspections from the City and in ensuring the project is located in the correct zoning district. I agree to provide any additional information for determining eligibility as requested by the City. (TYPED NA M:E) (A-fJTHORIZED SIGNATURE) (DATE) r�. `Y. . ""F,.!' 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Please call 817-392-7507 to request a copy. For more information on the NEZ Program, please visit our web site at Nvww.fortworthgov.org/housing. For Office Use Only -*Mhca.tiun No:X6--(" 0Cbl jj�'-hi which NEZ? Application Completed Date (Received Date): J 7 Conform with Zoning? PrYes ❑No Type? [<SF ❑ Multifamily ❑ Commercial ❑ Industrial ❑ Community facilities ❑ Mixed-Use Construction completion date? ❑ Before NEZ;K After NEZ Ownership/Site Control ❑ Yes ❑No TAD Account No. Consistent with the NEZ plan? ® Yes [:] No Meet affordability test? ❑ Yes' [:] No Minimum Capital Investment? ❑ Yes ❑No Rehab at or higher than 30%? ❑ Yes ❑No Meet mixed-use definition? ❑ Yes ❑ No Tax current on this property? ® Yes ❑ No Tax current on other properties? ❑ Yes ❑No City liens on this property? City liens on other properties? • Weed liens ❑ Yes JX No • Weed liens ❑ Yes No • Board-up/open structure liens ❑ Yes ® No • Board-up/open structure liens ❑ Yes No • Demolition liens ❑ Yes ®No • Demolition liens ❑ Yes �c]No • Paving liens ❑ Yes ®No • Paving liens ❑ Yes R1 No • Order of demolition ❑ Yes N No • Order of demolition ❑ Yes P No Certified? ❑Yes ❑No Certified by Date certification issued? 2 1 _d 5 if nnf ce.TfifiPrl. rPa.snn Referred to: []Economic Development MHousing ODevelopment Water ]Code QC TPW Revised December 31,2002 5 FORT WORTH V. ACKNOWLEDGMENTS I hereby certify that the information provided is true and accurate to the best of my knowledge. I 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 liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of the project. I understand that I am responsible in obtaining required pen-nits and inspections from the City and in ensuring the project is located in the correct zoning district. I agree to provide any additional information for determining eligibility as requested by the City. BRET (TYPED NAME) (AUTHORIZED SIGNATURE) (DATE) '' Please Intl fns�arerxtatI ytant J pp 94" ........ Ft Worth 4 "Or y Electronic version of this form is available by request. Please call 817-392-7507 to request a copy. For more information on the NEZ Program, please visit our web site at www.fortworthgov.orglhousing. For Office Use Only Application No. InWhich NEZ? Council District Application Completed Date (Received Date): Conform with Zoning? Yes FNo Type? [K SF 0 Multifamily F Commercial ❑ Industrial D Community facilities El Mixed-Use Construction completion date? 71 Before NEZ ❑After NEZ Ownership/Site Control 0 Yes R No TAD Account No. Consistent with the NEZ plan? X] Yes F]No Meet affordability test? ❑ Yes ❑No Minimum Capital Investment? ❑ Yes F-1 No Rehab at or higher than 30%? ❑ Yes El No Meet mined-use definition? El Yes n No Tax current on this property? Yes 7 No Tax cur-rent on other properties? 7 Yes ❑No City liens on this property? City liens on other properties? • Weed liens ❑ Yes 19 No o Weed liens 7 Yes No • Board-up/open structure liens ❑ Yes 21 No e Board-up/open structure liens 7 Yes Q No • Demolition liens ❑ Yes NJ No o Demolition liens ❑ Yes No • Paving liens ❑ Yes X No e Paving liens ❑ Yes ❑No • Order of demolition 0 Yes R No o Order of demolition El Yes No Certified? F-1 Yes F-1 No Certified by Date certification issued? 2-19 -03 Hnot nextified ri-.n.-,nn Referred to: DEconomic Development XHousing M I Development NWater 2[Code tKTPW Revised April 15,2003 5 EXHIBIT D Project Description Standard Amenities EXTERIOR: • 8' insulated front door with glass insert. • 16' metal overhead doors. • Metal awnings. • Lawn sprinkler system, community controlled (private backyards optional). • Private back yards (select townhomes). • Balconies on all 3-story townhomes. • 8' and 6' privacy wood fencing. • Full landscaping. • Guttering on front and rear. • Community pool. Brick and cementuous siding construction. INTERIOR: • 10' ceilings on Living Rm. floors and 9' ceilings on other floors. • 2-car attached garage with opener. • Recessed can lighting throughout. • Art niches. • TV and telephone pre-wire. • Security system pre-wire. • Audio and home theater pre-wire. • Nickel door hardware. • Vinyl clad wire shelving. • Ceramic tile entry. KITCHEN: . - ° Oak cabinetry, ° 41° tall upper cabinets. ° Granite slab countertops. * Ceramic tile floor. ° Stainless steel sink with disposer. ° Moen upgraded pull-out faucet. * Whirlpool appliances ° Gas droo/S|ide-inrange. • Dishwasher. * Microwave built-in. • Under-cabinet lighting pre-wire. ° Full size pantry closet. * Island with raised granite bar top (standard on Se|ecttownhornes\. BATHROOMS: ° Ceramic tile floor in Master Bath & Powder Room. ° Roman tub in Master Bath. ° Separate 4U" walk-in shower in Master Bath. ° Upgraded faucets in Master Bath. * Full height mirror in Master Bath. * Solid surface countertops. * 2 drop-in china bowls in Master Both. ° 36" high vanity cabinets. ° Recess Can lighting. ° Separate toilet room in Master Bath. w Decorative picture frame mirror in Powder Room. ° Pedestal sink in Powder Room. p 60" tub / shower in (SueS( Bath. QUALITY CONSTRUCTION: ° Engineered foundation. = Engineered floor and roof trusses. * Copper water lines. m Copper electrical wiring. * 2 hour fire wall assembly between tuvvnhornes. ENERGY FEATURES: w 30 Gallon gas water heater. 0 2 gas HVAC systems, 0 R-20 blown insulation in attic. * R-13 batt insulation in perimeter walls. p R-11 batt insulation in bath walls. OPTIONAL UPGRADES: ° (Sas fireplace. * 3 m Bedroom package. 0 Built-in cabinetry in Study. * Island with raised granite bar top (Standard on select iovvnhnrnes) ° Countertops, flooring, electrical, plumbing and blinds. OTHER FEATURES: * 1588k) 2270 sq. feet * Minimum 2bedrooms, 2 butloVurna 3 City of Fort t W~~^ t~~x Texas Mayor � ���� Council Communication N1�Nm�l �� ��N N�KNN�� COUNCIL ACTION: Approved on 11/18/2003 DATE: TU8Sd8V' Kj0V80be[ 18, 2003 LOG NAME: 05AL\/[] BUILDERS REFERENCE NO.: C-19864 SUBJECT: ADpF0V2l Of Tax Abatement /\gFGeOleOt with Ridgle@ Place, LP for 55 Real Estate Properties Located in the Ridgle@ Village/Como Neighborhood E0DOwer0BD[ Zone RECOMMENDATION: It is recommended that the City Council: 1. Approve 8 five-year yWuDiCip8| Property Tax Abatement for each Of 55 Real properties |iS&*d in Exhibit "Y\"` owned by Ridg|e8 P|@oe. LP and located in the Ridg|a8 Village/Como Neighborhood E[DPovvenneD1 Zone (NEZ) for the development of tovvnho08s; and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with F7idg|eo Place, LP are true and correct; and 8. Authorize the C)b/ Manager to enter into a separate Tax Abatement Agreement with Ridgle8 Place, LP for each Of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: Ridg|ea Place, LP is the owner Ofthe 55 properties listed in Exhibit 'Y\" The naa| properties are located in the Nidg|ea Village/Como NEZ and Neighborhood Empowerment Reinvestment Zone No. 2. F<idg\ea Place, LP applied for 8 five-year municipal property tax abatement under the NEZ Tex Abatement Policy and Basic Incentives (M&C G-13208R. M&C (3-13580 and M&C G-13882' as amended). The Housing Department reviewed the application and certified that the properties meet the eligibility criteria to receive NEZn0unioip8| property tax Bb3tgDleDi. The NEZ Basic Incentives offers o five-year municipal property tax abatement OD the increased value of improvements to the qualified owner of any new home ooOskuohad within o NEZ. Ridg|eo P/8Ce. LP will invest, at g minimum, $0.215.000 to construct 55 town hOnl8S in the Ridg|ea/COnno NEZ. In order for Ridg|oo Place, LP to qualify for the tax abatement, Ridg|ea P\BCe' LP must construct the tovvnhonleS with e nO\ninourn Of 1700 square feet that will appraise for $140.000. A more detailed description of the hOrneS to be constructed is attached as Exhibit "B" The fO[rD of the Tax Abatement Agreement is attached as Exhibit "C" Upon axmCuUnn of the agreement, the total 8s3eS38d value Of the home used for calculating nnUDiCipo| property tax will be frozen for a five-year pnri0d, starting on January 1. 2004. at the estimated pre- improvement value as defined by the Tarrant Appraisal District (TAD) on January 1. 2003. for each one Of the properties as follows: Pre-improvement TAD Value of Improvements $O Pre-improvement Estimated Value of Land $17'040 Total Pre-improvement Estimated Value $17.040 The rnVnioipo| property tax on the improved value of the homes is estimated at $884 per year on each property for a total of $188,100 over the five-year period for the 55 homes. However, this estimate may be different from the actual tax abatement value, which will be calculated based on the TAD appraised value of the property. Upon the sale of the home, the agreement will be assigned to the new owner, so long as the new owner meets all eligible criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. The Tax Abatement Agreement provides that the agreement may be assigned without subsequent City Council approval to Ridglea Place, LP's first mortgagee, or to a homeowner who will use the required improvements as his/her primary residence or the homeowner's mortgagee. All other assignments must be approved by the City Council. Ridglea Place, LP is located in COUNCIL DISTRICT 3. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Reid Rector (6140) Originating Department Head: Jerome C Walker (7537) Jerome C Walker (7537) Additional Information Contact: Elizee Michel (7336)