HomeMy WebLinkAboutContract 46236 CITY SECRUAW
comma No. 11107,31 o _
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
7323 Lowery Road
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 Fernando Costa, its duly authorized Assistant
City Manager, and Antonio and Rosa Cervantes ("Owner"), owner of property located at 7323 Lowery,
Block 5, Lot 1R1, Draughon Heights Addition, an Addition to the City of Fort Worth, Tarrant County,
Texas, according to the plat recorded in Clerk File No. D210061910, of the Plat Records of Tarrant
County, Texas.
The City Council of the City of Fort Worth("City Council") hereby finds and the City and Owner
hereby agree that the following statements are true and correct and constitute the basis upon which the
City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (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", these were readopted on
May 21,2013 (Resolution No. 4209).
D. The NEZ Incentives contain appropriate guidelines and criteria governing tan abatement
are agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
c-s
Code, as amended("Code").
cn
E. On September 24, 2013, the City Council adopted Ordinance No. 20974-09-2013
("Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 40,"
City of Fort Worth,Texas ("Zone").
OFFICIAL RECORD
CITY SECRETARY
FT. (NORTH,TX
NEZ Tax Abatement with Antonio and Rosa Cervantes
7323 Lowery Road,M&C C-27105
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F. Owner owns certain real property located entirely within the Northeast 820/1-30 NEZ and
that is more particularly described in Exhibit"1", 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 as a single-family residence that will be
Owner occupied.
H. On October 15, 2014, Owner submitted a complete application for NEZ incentives and for
tax abatement to the City concerning the contemplated use of the Premises (the
"Application"), attached hereto as Exhibit"2" 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 Ordinance and other applicable laws,
ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy the
eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, along with a copy of this
Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing units in which the Premises is located.
NOW,THEREFORE, the City and Owner, for and in consideration of the terms and conditions set
forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
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, of at least 4360 square feet in size and built
to the specifications listed in Exhibit "3" (collectively the "Required Improvements"). Tarrant
Appraisal District must appraise the property (improvements and land) within 10% of
$469,000.00. Owner shall provide a survey of the home upon completion of the Required
Improvements. The parties agree that the final survey shall be a part of this Agreement and shall
be labeled Exhibit "4". Minor variations and more substantial variations if approved in writing by
both parties to this Agreement before construction is undertaken in the Required Improvements
from the description provided in the Application for Tax Abatement shall not constitute an Event
of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this
Section L 1 are met and the Required Improvements are used for the purposes and in the manner
described in Exhibit"3".
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1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed 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
as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably
withheld, including, without limitation, delays caused by adverse weather, delays in receipt of any
required permits or approvals from any governmental authority, acts of God, or fires. Force majeure
shall not include construction delays caused due to purely financial matters, such as, without
limitation, delays in the obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the Premises
shall be continuously used as the Owner's primary residence in accordance with the description of
the Project set forth in the Exhibit "3". 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 of City of Fort Worth imposed taxes on the Premises for the Required Improvements, as
specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from other taxing
entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based upon the
increase in value of the Premises due to the Required Improvements, over its value on January 1,
2014, the year in which both parties executed this Agreement.
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, Owner shall not be eligible to receive
any Abatement under this Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of the
Required Improvements and shall apply only to taxes on the increase in value of the Premises due
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to construction of the Required Improvements. The Abatement shall not apply to taxes on the
land, nor shall the abatement apply to mineral interests.
2.3. Term of Abatement.
The term of the Abatement ("Term") shall begin on January 1 of the year following the
calendar year in which the Required Improvement is completed and a final inspection is approved
('Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31
immediately preceding the fifth(5t") anniversary of the Beginning Date.
2.4. 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 Application fee of $100.00.
The application fee shall not be credited or refunded to Owner or its assigns for any reason.
3. RECORDS,AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any time
during normal office hours throughout the Term and the year following the Term and following
reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in
order for the City to inspect the Premises and evaluate the Required Improvements to ensure
compliance with the terms and conditions of this Agreement. Owner shall cooperate fully with the
City during any such inspection and/or evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable term of
this Agreement. The City shall have the right to audit at the City's expense the Required
Improvement with respects to the specifications listed in Exhibit "Y'. 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. 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 March 1 following the end of every year during the Compliance Auditing Term
and at any other time if requested by the City, Owner shall provide information and documentation
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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 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 Required Improvements, or its ad valorem taxes with
respect to the tangible personal property located on the Premises, become delinquent and Owner
does not timely and properly follow the legal procedures for protest and/or contest of any such ad
valorem real property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE
PREMISES AS PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv)
OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE
OF ORDINANCES OF THE CITY OF FORT WORTH (collectively, each an "Event of
Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the City
shall provide a written notice to Owner that describes the nature of the Event of Default. Owner
shall have sixty (60) calendar days from the date of receipt of this written notice to fully cure or
have cured the Event of Default. If Owner reasonably believes that Owner will require additional
time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case
(i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner
shall have ninety (90) calendar days from the original date of receipt of the written notice, or (ii) if
Owner reasonably believes that Owner will require more than ninety (90) days to cure the Event of
Default, after advising the City Council in an open meeting of Owner's efforts and intent to cure,
such additional time, if any, as may be offered by the City Council in its sole discretion.
NEZ Tax Abatement with Antonio and Rosa Cervantes
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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 there from are speculative in nature and will be difficult or impossible to
ascertain. Therefore, upon termination of this Agreement for any Event of Default, Owner shall
pay the City, as liquidated damages; all taxes that were abated in accordance with this Agreement
for each year when an Event of Default existed and which otherwise would have been paid to the
City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable
approximation of actual damages that the City will incur as a result of an uncured Event of Default
and that this Section 4.3 is intended to provide the City with compensation for actual damages and
is not a penalty. This amount may be recovered by the City through adjustments made to Owner's
ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises.
Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following
the effective date of termination of this Agreement. In the event that all or any portion of this
amount is not paid to the City within sixty (60) days following the effective date of termination of
this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount
at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of
such penalties and interest(currently, Section 33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the Premises or the
anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better
use is preferable, the City and Owner may terminate this Agreement in a written format that is
signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the
effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes
previously abated; and (iii)neither party shall have any further rights or obligations hereunder.
4.5 Sexually oriented business & Liquor Stores or Package Stores.
a. Owner understands and agrees that the City has the right to terminate this
agreement if the Required Improvements contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Required Improvements contains or will
contain a liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to,
the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and
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Required Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the
Premises and/or Required Improvements without the prior consent of the City Council, which consent shall
not be unreasonably withheld provided that(i)the City Council finds that the proposed assignee is financially
capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in
writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise
assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City
Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted
hereunder following ten(10) calendar days of receipt of written notice from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no further
obligations or duties under this Agreement. In addition, upon assignment to any other entity with the
written consent of City Council, Owner shall have no further duty or obligation under this
Agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT
OF A SALE OR ASSIGNMENT.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE
REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS
AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF
OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC
TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT
MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the following, or
such other party or address as either party designates in writing, by certified mail, postage prepaid, or by
hand delivery:
City: and Owner:
City of Fort Worth Housing &Economic Antonio and Rosa Cervantes
Attn: City Manager's Office Development Dept. 6150 Browning Dr.#37103
1000 Throckmorton Attn: Jay Chapa, Director North Richland Hills TX 76180
Fort Worth, Texas 76102 1000 Throckmorton
Fort Worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This Agreement
is subject to the rights of holders of outstanding bonds of the City.
NEZ Tax Abatement with Antonio and Rosa Cervantes
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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 "2", 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-26746 on April 1, 2014, 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, if requested,
will be addressed to the Owner, and shall include, but not necessarily be limited to, statements that
this Agreement is in full force and effect without default (or if an Event of Default exists, the nature
of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining
term of this Agreement, the levels and remaining term of the Abatement in effect, and such other
matters reasonably requested by the party or parties to receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or
City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any
such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinances, rules, regulations or policies of the City. Venue for any action under this
NEZ Tax Abatement with Antonio and Rosa Cervantes
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Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is
performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or
impaired.
7.10 Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents incorporated
herein by reference, contains the entire understanding and agreement between the City and Owner,
their assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in
conflict with any provision of this Agreement. This Agreement shall not be amended unless
executed in writing by both parties and approved by the City Council. This Agreement may be
executed in multiple counterparts, each of which shall be considered an original, but all of which
shall constitute one instrument.
CITY OF FORT WORTH: OWNER:
By:��(-y� By:
Fernando Costa Antonio Cervant , wner
Assistant City Manager
By:
Rosa rvantes, Owner
ATTESTil
By; ti QFoo°°°°ORS
ary Kayser U
City Secretary V g
in
000occ.
OFFICIAL RECORD
CITY SECRETARY
NEZ Tax Abatement with Antonio and Rosa Cervantes FT, WORTH, TX
7323 Lowery Road,M&C C-27105
Page 9 of 15
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Antonio Cervantes 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.
-A GIVEN UNDER MY HAND AND SEAL OF OFFICE this "day of
2014.
Notary Public in and for -
the State of Texas "P UUA AURORA ESCOBEa0
MY COMMISSION EXPIRES
February 8,2015
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME,the undersigned authority, on this day personally appeared Rosa Cervantes 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 MY HAND AND SEAL OF OFFICE this ld y of
'2014.
otary Public in and for
the State of Texas
Y F'
uuAAURORAESOOeEOo
MY COMMISSION EXPIRES
„Q, •' Febn►ery 8,2016
NEZ Tax Abatement with Antonio and Rosa Cervantes
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APPROVED AS TO FORM AND LEGALITY:
. By:Ak4L)"a�
Melinda Ramos
Assistant City Attorney
M& C: C-27105
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME,the undersigned authority, on this day personally appeared Fernando Costa,Assistant
City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and
officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was
the act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation,that he was duly authorized
to perform the same by appropriate resolution of the City Council of the City of Fort Worth and that he
executed the same as the act of the said City for the purposes and consideration therein expressed and in the
capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2014.
otary Public in and for
EVONIA DANIELS
the State of Texas ;°o•*aY Notary PubliC,state of Texas
,. _ =_ My Commission Expires
IIDN/ -tLS July 10, 2017
Notary's Printed Name
NEZ Tax Abatement with Antonio and Rosa Cervantes
7323 Lowery Road, M&C C-27105
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Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description including kind, number and location of the proposed
improvements.
Exhibit 4: Final Survey
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Exhibit 1
Lot 1R1, Block 5 of Draughton Heights Addition, an addition to the City of Fort Worth, Tarrant County,
Texas, according to the map or plat thereof recorded in Clerk's File No. D210061910 of the Plat Records
of Tarrant County Texas.
NEZ Tax Abatement with Antonio and Rosa Cervantes
7323 Lowery Road, M&C C-27105
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Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
NEZ Tax Abatement with Antonio and Rosa Cervantes
7323 Lowery Road, M&C C-27105
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FORTWORTH Application No NZI y— 002 2' ,
!CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
I. APPLICATION CHECK LIST - Please submit the following documentation:
❑ A completed application form
❑ A list of all properties owned by the applicant,owner,developer,associates,principals,partners,and agents
in the Citv Fort Worth
❑ Non Refundable Application fee—For all Basic Incentives applications excluding Tax Abatement the
application fee is$25.00.For multifamily,commercial,industrial,community facilities,and mixed-use tax
abatement applications: 0.5%of the total Capital Investment of the project,with a$200.00 minimum and
not to exceed$2,000.00;For residential tax abatement applications:$100.00 per house.
❑ Proof of ownership,such as a warranty deed,affidavit of heirship,or a probated will OR evidence of site j
control,such as option to buy(A registered warranty deed is required for tax abatement application.)
❑ Title abstract of the property(only if applying for release of City liens)
❑ A reduced 11x17 floor plan,site plan,and site elevation with a written detailed project description that
metre lis
❑ A detailed line item budget showing the cost breakdown for the project
❑
Copy of Incorporation Papers noting all principals,P artners,and a g ents if applicable
..
❑ Required-Meet with the Councilmember and Neighborhood&other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised February 5,2014 or
followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED
DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS OF THE DATE OF
APPLICATION.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAKES 60 TO 90
BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED,OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED, OR YOU
WILL BE REQUIRED TO RE-APPLY FOR NEZ INCENTIVES,
H. APPLICANT/AGENT IN RMATION
1. Applicant: ,`�. _ .l'V2 ut 2. Contact Person:
3. Address: 5 rp Lt.i,�,t� 1 D3 X60
Street City State Zip
4. Phone no.: luS� 5��b 5. Fax No.:
6. Email: Oer 2
7. Agent(if any)
S. Address:
Street City State Zip
9. Phone no.: 10. Fax No.:
11.Email:
Revised July 23,2014 1
FORT WORTH ApplicationNo.
PROM CT ELIGIBILITY
1. Please list the addresses and legal descriptions of the project and other properties your organization
owns in Fort Worth. Attach metes and bounds description if no address or legal description is
available. Attach a map showing the location of the project.
Table 1 Property Ownership
Address Zip Code
(Project Locatio Subdivision Name Lot No. Block No.
3�3 o r Va 7 1p S,� -r 3 t�
Other proper 'es owned in the City of Fort Worth -continue on a separate sheet and attach if necessary.
2. For each property listed in Table 1,please check the boxes below to indicate if.
• there are taxes past due;or
• there are City liens;or
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission's Order of Demolition where the property was demolished within the last five
Years.
Table 2 Property Tastes and City Liens
Property City Liens on Property
Address Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
(Please attach additional sheets of paper as needed.)
If there are taxes due or liens against any property in the City of Fort Worth you may not be eligible
for NE incentives
Revised July 23,2414 2
i
i'
FORT WORTH Application No,
3. Do you own other properties under other names? ❑Yes®No
If Yes,please specify i
4. Does the proposed project conform with City of Fort Worth Zoning? es
If no,what steps are bein taken to insure compliance?
5. Project El ❑ El ❑ El
Type: gSing�IFamily Multi-Family Commercial Industrial Community Facilities Mixed-Use ccupicd
❑Rental Property
6. Please describe the proposed residential or commercial project:
7. If your project is a commercial,industrial,or mixed-use project,please describe the types of I
businesses that are being proposed:
8. Is this a new construction or rehab project? ❑New Construction ❑Rehab i
9. How much is the total development cost of your project?
10. Will the eligible rehabilitation work* be equal to at least 30% of the Tarrant Appraisal District
(TAD)assessed value of the structure during the year rehabilitation occurs? VYes ❑No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain-link or solid material construction;personal property such as furniture,
appliances,equipment,and/or supplies.Total eligible rehabilitation costs shall equal to or exceed 30%of the
TAD appraised value of the structure during the year rehabilitation occurs.
11. How much is the total square footage of your project? s square feet
* .,::... : ..3_ tp 1::' m 'prtII:Incentives p>Gfapplyr axa I
12.For a single-family homeownership, mixed-use, or multi-family development grroject, please fill out II�
the number of residential units based on income range of owners or renters in the following table. i
Table 3 Number of Residential Units and Income Range of Owners or Renters
6d,o#'L�iiits; :Percentage.;
fie Rnn
e`
9.
i
>80%ofAMFI**
At or below 80%of AMFI
-
**AMFI:Area Median Family Income, Please see attachment for income and housing payment guidelines.
13. For a multifamily proiect to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80%of ANM. Check the box if you are requesting a waiver of this
requirement, ❑
14, For a commercial, industrial or community facilities proiect, indicate square footage of non-
residential space.
ti'•' :i its:
;Co cl tria o"
- us •uil
rl�
1�.
I
square feet square feet square feet
Revised July 23,2014 3
i
FORT WORTH ApplicationNo.
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 Itemized Budget of the Project
Ife s -Amount Notes
Total
'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 or inventory).
16. For a commercial, industrial, community facility or mixed-use project, how many employees will the
prajectgenerate?
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
e S ware FooCa `e,: . Eerceiftage
Residential
-Office
-Eating
Entertainment
Retail sales
Service
M. INCENTIVES - What incentives are you applying for? !
Municipal Property Tax Abatements
MusY"5'de Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
years ❑More than 5 years
❑Residential owner occupied ❑Residential Rental Property []Apartments(5 plus units) ❑Commercial
DevelopE,imt 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)
❑ Zoning application fee ❑ Board of Adjustment application fee
❑ Demolition fee ❑ Structure moving fee
❑ Community Facilities Agreement(CFA)application fee
❑ Street and utility easement vacation application fee
Impact Fee Waivers -The maximum water/wastewater Impact fee waiver amount for a commercial, industrial, mixed-
use,or community facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters
❑ Water (Meter Size ) (No.of meters ) ❑Transportation !
Release of City Liens
❑ Weed liens ❑ Paving liens ❑Board up/open structure liens ❑Demolition liens
i
Revised July 23,2014 4
FORT WORTH Application No.
M. 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 understand that my application will not be processed if it is in omplete. 1 agree to provide any additional
information for determining eligibility as requested by the-City.
)&23 Ce r v ag-4cS
(PRINTED OR TYPED NAME AUTHO D SIGNATU (D T )
Please;mail ar fax.ygiir applicatioq t :
City of:Fort-. e firth Planniing and Developrr�entDepartm6t
1000 T6rockmrsrtan•.Streets•.Fort:yVortl;:Te ss.7b102 .`.
Tel:(S�1�'392=2222. Fax::(817)39Z,�811b'
Electronic version of this form is available on our website. For more information on the NEZ Program,please visit
our web site at www.fortworthgov.org/planninganddevelopment
For Office Use Only
Application No, In which NEZ? Council District
Application Completed Date(Received Date): Conform with Zoning? ❑ Yes ONO '
i
Type? ❑SF ❑Multifamily ❑Commercial ❑Industrial ❑Community facilities ❑Mixed-Use
Construction completion date? ❑Before NEZ❑After NEZ Ownership/Site Control ❑Yes❑No
TAD Account No. _ Consistent with the NEZ plan? ❑Yes ❑No
Meet affordability test? ❑ Yes ONO 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 ❑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 ❑No
• Paving liens ❑Yes ❑No • Paving liens ❑Yes ❑No
• Order of demolition ❑Yes ❑No • Order of demolition ❑Yes ❑No
Certified? ❑Yes ❑No Certified by Date certification issued?
If not certified,reason
Referred to: ❑Economic Development ®Housing ❑Development ❑Water ❑Code OTPW
i
Revised July 23,2014 5
Exhibit 3
Single Family Residence
3 Bedrooms
3 Bathrooms
Dining Room
Living Room
Approximately 4360 square feet
3 Car Garage
NEZ Tax Abatement with Antonio and Rosa Cervantes
7323 Lowery Road, M&C C-27105
Page 15 of 15
i
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
ITY COUNCILAGENDA FoRTWORTI-I
COUNCIL ACTION: Approved on 1219/2014
DATE: 12/9/2014 REFERENCE NO.:**C-27105 LOG NAME: 17NEZ7323LOWERY
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Antonio and Rosa
Cervantes for the Construction of a Single-Family Dwelling at 7323 Lowery Road in the
Northeast 820/1-30 Neighborhood Empowerment Zone (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement
Agreement with Antonio and Rosa Cervantes for the construction of a single-family dwelling at 7323
Lowery Road in the Northeast 820/1-30 Neighborhood Empowerment Zone, in accordance with the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Antonio and Rosa Cervantes (Property Owners), are the owners of the property described as Block 5,
Lot 1 R-1, Draughton Heights Addition, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the plat recorded in Clerk's File No. D210061910, of the Plat Records of Tarrant County,
Texas, at 7323 Lowery Road, Fort Worth, Texas. The property is located within the Northeast 820/1-
30 Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$469,000.00 to construct an
approximately 4,360 square foot single-family residence (Project). The Project will be used as the
owner's primary residence.
The Housing and Economic Development Department reviewed the application and certified that the
Property Owners and Project met the eligibility criteria to receive a NEZ Municipal Property Tax
Abatement. The NEZ Basic Incentives include a five-year Municipal Property Tax Abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation
within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for a period of five years starting January 2016 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District(TAD) in December 2Q,14 for the
property as follows:
Pre-Improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land 1$31,358.00
Total Pre-Improvement Estimated Value $31,358.00
The municipal property tax on the improved value of the Project after construction is estimated in the
amount of$4,009.95 per year for a total amount of$20,049.75 over the five-year period. However,
this estimate may differ from the actual tax abatement value, which will be calculated based on the
Tarrant Appraisal District appraised value of the property.
In the event of a sale of this property, the NEZ Tax Abatement Agreement may be assigned to a new
owner's first mortgagee or a new homeowner as their primary residence. All other assignments must
http://apps.cfwnet.org/council_packet/mc review.asp?ID=205 93&councildate=12/9/2014 12/10/2014
M&C Review Page 2 of 2
be approved by the City Council.
This property is located in COUNCIL DISTRICT 5, Mapsco 66Q.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Cynthia Garcia (8187)
Jay Chapa (5804)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
7323 Lowery Rd. Map.pdf
Site Plan and Elevations.pdf
http://apps.cfwnet.org/council_packet/me_review.asp?ID=20593&councildate=12/9/2014 12/10/2014