HomeMy WebLinkAboutContract 29536 CITY SECRETARY
CONTRACT NO.
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
5317 Fernander
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 Courtney Homes,
Inc. ("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").
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 to be that will be owner occupied. (the
"Project").
H. On December 3, 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 are in 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.
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1.1. Real Property 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 1200 square feet in size, and built to the specifications listed in Exhibit D
and (ii) having an appraised value of at least $80,000.00 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 both of the parties to this
Agreement, in the Required Improvements from the description provided in the
Application for Tax Abatement shall not constitute an Event of Default, as
defined in Section 4.1, provided that the conditions in the first sentence of this
Section 1.1 are met and the Required Improvements are used for the purposes and
in the manner described in Exhibit"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 "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 AMOUNTS, TERMS AND CONDITIONS.
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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, 2004 (52500.00) the year in which
this Agreement was entered into:
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 "Term") shall begin on January 1
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 preceding the fifth (5th)
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.
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2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement
application fee of twenty-five dollars (525.00).
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 evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each
applicable term of this agreement. The City shall have the right to audit at the
City's expense the 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, Owner must
provide documentation that Owner is using the Required Improvements as its
primary residence (collectively, the "Records") at any time during the
Compliance Auditing Term in order to determine compliance with this 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 1 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.
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3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing
Term, the City shall make a decision and rule on the actual annual percentage of
Abatement available to Owner for the following year of the Term and shall notify
Owner of such decision and ruling. The actual percentage of the Abatement
granted for a given year of the Term is therefore based upon Owner's compliance
with the terms and conditions of this Agreement during the previous year of the
Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this
Agreement if (i) Owner fails to construct the Required Improvements as defined
in Section 1.1; (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 PREMISES AS PRIMARY RESIDENCE ONCE
THE ABATEMENT BEGINS or (iv) THE OWNER DOES NOT COMPLY
WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCE
OF THE City OF FORT WORTH (collectively, each an "Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has
occurred, the City shall provide a written notice to Owner that describes the
nature of the Event of Default. Owner shall have 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.
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4.3. Termination for Event of Default and. Pavment of Liquidated
Damages.
If an Event of Default which is defined in Section 4.1 has not been cured
within the time frame specifically allowed under Section 4.2, the City shall have
the right to terminate this Agreement immediately. Owner acknowledges and
agrees that an uncured Event of Default will (i) harm the City's economic
development and redevelopment efforts on the Premises and in the vicinity of the
Premises; (ii) require unplanned and expensive additional administrative oversight
and involvement by the City; and (iii) otherwise harm the City, and Owner agrees
that the amounts of actual damages therefrom are speculative in nature and will be
difficult or impossible to ascertain. Therefore, upon termination of this
Agreement for any Event of Default, Owner shall 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).
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.
Except for an assignment to Courtney Homes, Inc.'s Affiliates, Courtney
Homes, Inc.'s first mortgagee or to a homeowner who will use the Req ireu -
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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 (ii) the proposed purchaser agrees
in writing to assume all terms and conditions of Owner under this Agreement.
Owner may not otherwise assign, lease or convey any of its rights under this
Agreement. Any attempted assignment without the City Council's prior 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 Courtney Homes, Inc.'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, Courtney Homes, Inc. 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,
Courtney Homes, Inc. 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.
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 Sherry Saylor
Attn: City Manager Courtney Homes, Inc.
1000 Throckmorton 5203 Shadow Glen Drive
Fort Worth, TX 76102 Grapevine, TX 76051
8 __ _
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.
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-19934 on January 13, 2004, which,
among other things, authorized the City Manager to execute this Agreement on
behalf of the City.
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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.
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.
EXECUTED this � bday of _ t f r1f/ , 2004, by the City of Fort
Worth, Texas.
EXECUTED this day of , 2004, by Sherry Saylor.
CITY OF FORT WORTH: COURTNEY HOMES, INC.:
By: U t�9-�G1 � By: -
Reid Rector Sherry Saylor, President
Assistant City Manager
ATTE'T: ATTEST:
By• By. 6
City Secret
APPROVEYS TO FORM AND LEGALITY:
By:
—(,
Cynthia Garcia
Assistant City Attorney
M & C:
Z.
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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 ell day of
2004.
fY P�
Notary Public in and for 1=f �� ROSELLA BARNES
NOTARY PUBLIC
the State of Texas *i� �* state of Texas
R OS�'l! l� f� f, /kk-E � ,.'Comm.Exp. 03-31-2005
Notary's Printed Name
�'flJii>:LiSl��'J�1U'
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13
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Sherry Saylor,
known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that she executed the same for the purposes and consideration
therein expressed, in the capacity therein stated.
GIVEN UNDER Y HAND AND SEAL OF OFFICE this QA day of
NA 20
Notary Public in and for
the State of Texas
SARAH J.ODLE
Notary's Pi
e November 5,tart
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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
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Exhibit A
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
L GENERAL PURPOSE AND OBJECTIVES
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.
II. DEFINITIONS
"Abatement" means the full or partial exemption from City of Fort Worth ad valorem 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 (as reflected on the certified tax roll of 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 Value"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
does NOT include land acquisition costs and/or any existing improvements, or personal property-'-
(such as machinery, equipment, and/or supplies and inventory). ..
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Draft May 27, 2003 1 '
"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 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) & 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'; "Commercial/Industrial 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 accordance
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.
Draft May 27, 2003 2 L �j
Ill. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ
1. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for..a 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:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. 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;
c. Property is not in a tax-delinquent status when the abatement application is
submitted; and
d. Property is in conformance with the City of Fort Worth Zoning Ordinance.
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 years.
If an applicant app-lies for a tax abatement agreement with a term of five years or
less, this section shall apply.
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Draft May 27, 2003 3 (+�+��7
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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 1 through 5 of the Tax Abatement Agreement
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
persons at or below 80% of the median income as defined 1by the . U.S.;,
Draft May 27, 2003 - 4
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 Aqreement
Multi-family projects shall be eligible for a 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. 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
1. 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
2. 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.
b. 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.
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
1. 100% Abatement of City Ad Valorem taxes for 5 years
Draft May 27, 2003 5
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 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 1 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:
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.
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 yearn six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
Draft May 27, 2003 6
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;
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 Citv Ad Valorem taxes for 5 Years
If an applicant app-lies 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
(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.
Draft May 27, 2003 7
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.
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 Gross Floor Area of the project;
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; and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
Draft May 27, 2003 8
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.
E. ABATEMENT GUIDELINES
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 III.
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 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
owner/developer ; and
b. Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for tax abatements.
5. Once a NEZ property owner of a residential property (including multi-family) in the
NEZ satisfies the criteria set forth in Sections IIIA, E.1. and E.2. and applies for an
abatement, a property 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
Worth's Minimum Building Standards Code and the owner is convicted of such
violation.
6. A tax abatement granted under the criteria set forth in Section III. can only be
granted once for a property in a NEZ for a maximum term of as specified in the
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.
Draft May 27, 2003 9
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. 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.
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 abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term. Any
sale, assignment or lease of the property which is not permitted in the tax abatement
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
Draft May 27, 2003 10
1. 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
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. 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 owner/developer to be eligible to apply for fee waivers 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 or applicant;
c. must not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens; and
d. of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the Prosect. Before construction, the applicant must
ensure that the project is located in the correct zoning district.
B. DEVELOPMENT FEES
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
1 7 71 �r�
Draft May 27, 2003 _ 11
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.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. 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 release of city liens 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 c tact for-deed a
not eligible for any release of City Liens.
Draft May 27, 2003 12
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.
B. 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.
C. DEMOLITION LIENS
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.
D. BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family 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.
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.
Draft May 27, 2003 13
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. CERTIFICATIONS 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 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:
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
1. Property Tax Abatement for Residential Properties and Multi-family Development
Projects
Draft May 27, 2003 14 1
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
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 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 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.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
Draft May 27, 2003 15
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 (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, 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.
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 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.
3. Development Fee Waivers
Draft May 27, 2003 16 - 3
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:
1. Municipal sales tax refund
2. Homebuyers assistance
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastructure improvements
7. Support for Low Income Housing Tax Credit (LIHTC) applications
8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Increment Financing (TIF)
10. Public Improvement District (PID)
11. Tax-exempt bond financing
12. New Model Blocks
13. Loan guarantees
14. Equity investments
15. Other incentives that will effectuate the intent and purposes of NEZ.
VIII. Ineligible Projects
The following Projects or Businesses shall not be eligible for any incentives under the City' of
Draft May 27, 2003 17
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Incentives:
Sexually Oriented Businesses
Draft May 27, 2003 18
EXHIBIT B
Property Description
1. 5317 Fernander Block 12 Lot 6, Harlem Hills Addition
I
EXHIBIT C
Fou WORTH
Application No. —oo 3 jp
CITY OF FORT WORTH 00 5& "a
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM 00,5(V _3
PROJECT CERTIFICATION APPLICATION
FORM et FOR INVESTOR OWNERS(SINGLE FAMILY ONLY)
L APPLICATION CHECK LIST
Please submit the following documentation with each property requested:
[✓r A completed application form
[� A list of all properties owned by the applicant in Fort Worth
[� Application fee of$25.00—cashier's check(for tag abatement applications only)
[� 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 fmture,appliances,equipment,and/or supplies.Total eligible rehabilitation costs shall equal
to or exceed 30%of the Tarrant County Appraisal District(TAD) appraised value of the structure during the
year rehabilitation occurs.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR
YOUR PROPERTY.
H. Applicant/AGENT INFORMATION
1. Applicant: C,dQR'TNp'( a M F S �N CZ' Contact Person:
3. Address: . 5 7.0 3 S tfA 4bcJ G"S-01 bg. ,GAAPFVInC:, 76o 31
Street city State Zip
4. Phone no.: ���..L{g� —gq 5 ,� 5. Fax No.: *�11 _ R#%V —xf6 60
6. Email: oz 5 3
7. Agent(if any) M f --�
8. Address:
Street City State Zip
9. Phone no.: 10. Fax No.:
11. Email:
If you need further information or clarification, please contact Jamie Warner at (817) 392-7507 or
Elizee Michel at(817)392-7336.
i
"FoRT WORT
�,,..�
M. PROPERTY ELIGIBILITY
1. Please list down the addresses.and legal descriptions of the property where you are applying
for NEZ incentives and other properties you own in Fort Worth. Attach metes and bounds
description if no address or legal description is available.
Table 1 Property Ownershi
Afdress zap Legal Description
Code Subdivision Lot No. Block No.
(Project Location)
:55 P&LIi 0Aj3 bJ;ZR '16t a7 [Ahki.e K
5-31 -7 PGGto A-&3pr_1Z 161 0Jr
y 6 Z-
573 2-% F-I:R)3A36MR- 6107 S Z
(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 Ci Liens
Address Property City Liens on Property
'faxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
t 3 iia-RNA�6��- ►!
5311 SDE &6*k
3 Z F IZOAW - --OA-6t
(Please attach additional sheets of paper as needed.)
3. Do you own other properties under other names? "Y ❑No
If Yes,please specify � S 1,.0 a. S E —Re-
4. Does the proposed development conform with City of Fort Worth Zoning? es ❑No
5. Is this property under a contract for deed? ❑Yes No
2
Ill. Property Eligibility
#1 Property Ownership Continued
Address Zip Code Subdivision Lot# Block#
5725 Diaz,FW 76107 Chamberlain Arlington Hts. 13&14 39&194
5316 Fernander,FW 76107 Harlem Hills Ad. 15 12
5317 Carver, FW 76107 Harlem Hills Ad. 6 12
5321 Carver,FW 76107 Harlem Hills Ad. 5 12
5325 Carver,FW 76107 Harlem Hills Ad. 4 12
5329 Carver,FW 76107 Harlem Hills Ad. 3 12
5333 Carver,FW 76107 Harlem Hills Ad. 2 12
#2 Property Taxes and City Liens
Address Prop,Tax Due ward-up! pen St. Liens Weed Liens Demo Dens PavingLien iens Order Demolition
5725 Diaz,FW No No No No No No
5316 Fernander,FW No No No No No No
5317 Carver, FW No No No No No No
5321 Carver,FW No No No No No No
5325 Carver,FW No No No No No No
5329 Carver, FW No No No No No No
5333 Carver,FW No No No No No No
I
FoRTWoRTH
6. Are ou planning for new construction or rehab?
['New Construction total ❑Rehab
7. What is the status of construction? P'�-
-,-I's
M Plannin Stage ❑Under Construction ❑Completed
P.1,
g P
S. U construction has been completed,when was it completed? 179,60
9. How much is the total development cost? * 260 app D
10. If it is a rehab property,will the rehabilitation work* done on the property equal to at least
30%of the Tarrant County Appraisal District(TAD)assessed value of the structure during
the year rehabilitation(remodeled)occurred? ❑Yes ❑No
11. How much is the total square footage of your property? 3R AO square feet (r L
*Only physics) improvements to real property is eligible. DO NOT include personal property
such as furniture,appliances,equipment,and/or supplies.
IV. INCENTIVES
1.What incentives are you applying for?
Municipal EMR2 ty Tax Abatements
vel meat Fee Waivers
All building permit related fees(including Plans Review and inspections)
Q"*'Plat application fee(including concept plan,preliminary plat,final plat,short form replat)
Board of Adjustment application fee
❑ Demolition fee
❑ Structure moving fee
❑ Community Facilities Agreement(CFA)application fee
❑ Zoning application fee
❑ Street and utility easement
Im a t Fee Waivers
Impact fee waiver
Meter Size 344 How many meters?
Release of City Liens
❑ Weed liens
❑ Board up/open structure Bens
❑ Demolition liens
❑ Paving liens
3
ORT WORTH
V. ACKNOW'I,EDGNIENTS
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 VIOLATIONof 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 deternining eligibility as requested by the City.
(TYPED NAME) (A HORIZED IGNATURE) (DATE)
Plse ,f R y applllen#r► # ,
Cr f Ferri art ,ll a it Deta :. �
111 ThroMmvrt, Street,Fa a 16�,lie s
( X328
,;xerllorart a
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.org(housing.
For Office Use On v
Application No. _Com In which NEZi Council District r
Application Completed Date(Received Date): ` *4 511' Crnzform with Zoning? -Yes ❑No
TAD ID 01 1-"$ j Contract for deed? ❑Yes [;- Type? view construction ❑Rehab
Construction completion date? ❑Before NEZ [+-`ter NEZ Ownership ❑Yes ❑No
Rehab at or higher than 30%? ❑ Yes ❑ No Consistent with the NEZ plan? PffYes ❑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 F No • Weed liens ❑ Yes [9<
• Board-up/open stricture liens ❑Yes D2<0 • Board-up/open structure liens ❑Yes [}<o
• Demolition liens ❑Yes OR05o • Demolition liens ❑Yes (Uio
• Paving liens ❑Yes VNo • Paving liens ❑Yes NKo
]'l-C• Order of demo 'on ❑Yes �o • Order of demolition ❑ Yes 1K0--
Certified?
ertified? Yes ❑No Certified by Date certification issued? a • ��
If not certified,reason
Referred to: ❑Economic Development ❑Housing ❑Development ❑Water ❑Code ❑TPW
Revised April 15,2003
4
EXHIBIT D
Project Description
Single Family Residence
3 bedrooms
2 baths
Minimum 1200 square feet
Appliances: Dishwasher, stove, oven garbage disposal
Landscaping in the front
Covered front porch
Central HVAC
Ceramic Tile Tub/Showers
EXHIBIT D
Project Description
Single Family Residence
3 bedrooms
2 baths
Minimum 1200 square feet
Appliances: Dishwasher, stove, oven garbage disposal
Landscaping in the front
Covered front porch
Central HVAC
Ceramic Tile Tub/Showers
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/13/2004
DATE: Tuesday, January 13, 2004
LOG NAME: 05JSAYLOR REFERENCE NO.: C-19934
SUBJECT:
Approval of Tax Abatement Agreement with Courtney Homes, Inc. for Three Real Properties
Located in the Ridglea Village/Como Neighborhood Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Approve a five-year Municipal Property Tax Abatement for the three real properties listed on Exhibit "A",
owned by Courtney Homes, Inc., and located in the Ridglea Village/Como Neighborhood Empowerment
Zone (NEZ); and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Courtney
Homes, Inc. are true and correct; and
3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with Courtney Homes,
Inc. for each of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and
Basic Incentives.
DISCUSSION:
Courtney Homes, Inc. is the owner of the three properties listed on Exhibit "A". The properties are located
in the Ridglea Village/Como NEZ and Neighborhood Empowerment Reinvestment Zone No. 2. Courtney
Homes, Inc. applied for a five-year municipal property tax abatement under the NEZ Tax Abatement Policy
and Basic Incentives (M&C G-13208R, M&C G-13580 and M&C G-13662, and M&C C-19551 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 Incentives offers a five-
year municipal property tax abatement on the increased value of improvements to the qualified owner of
any new home constructed within a NEZ. Courtney Homes, Inc. will invest, at a minimum, $260,000 to
construct three single-family homes in the Ridglea/Como NEZ. A description of the homes to be
constructed is attached as Exhibit "B". The form of the Tax Abatement Agreement is attached as Exhibit
„C1.
Upon execution of the agreement, the total assessed value of improvements used for calculating municipal
property tax will be frozen for five years at the most recent pre-improvement value as defined by the Tarrant
Appraisal District (TAD). The abatement only applies to the improvement value, not to the land. The term
of the abatement shall begin on January 1 of the year following the calendar year in which the house is sold
to a homebuyer to be used as the buyer's primary residence and, unless sooner terminated, shall end on
December 31 immediately preceding the fifth anniversary of the beginning date. On January 1, 2004, TAD
estimated the pre-improvement value for each property as follows:
Pre-improvement TAD Value of Improvements $0
Pre-improvement Estimated Value of Land $2,500
Logname: 05JSAYLOR Page 1 of 2
Total Pre-improvement Estimated Value $2,500
The municipal property tax on the improved value of the homes is estimated at $526 per year on each
property for a total of$7,890 over the five-year period for the three 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 Courtney Homes, Inc.'s first mortgagee, or to a homeowner who will use the required
improvements as his/her primary residence or the homeowner's mortgagee, and all other assignments must
be approved by the City Council.
The properties are located in COUNCIL DISTRICT 7.
FISCAL INFORMATIONICERTIFICATION:
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 Walker (7537)
Additional Information Contact: Jerome Walker (7537)Sarah Odle (7316)
Logname: 05JSAYLOR Pace ? of