HomeMy WebLinkAboutContract 29857 CITY SECRETARY
CONTRACT NO. JQS
Village Homes, LP
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
720 Arch Adams Lane
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 Village Homes, LP ("Owner") a Texas
Corporation, doing business in the City of Fort Worth.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City
and Owner hereby agree that the following statements are true and correct and constitute the
basis upon which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create
a Neighborhood Empowerment Zone (NEZ) if the municipality determines that
the creation of the zone would promote:
1. The creation of affordable housing, including manufactured housing in the
zone;
2. An increase in economic development in the zone;
3. An increase in the quality of social services, education, or public safety
provided to residents of the zone; or
4. The rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality
that creates a NEZ, may enter into agreements abating municipal property taxes
on property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own
property located in a NEZ, stating that the City elects to be eligible to participate
in tax abatement and including guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, titled "NEZ
Basic Incentives" ("NEZ Incentives"), these are readopted on April 22, 2003 and
May 27, 2003. The May 27, 2003 NEZ Incentives are attached hereto as Exhibit
"A"and hereby made a part of this Agreement for all purposes.
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter
312 of the Texas Tax Code, as amended (the "Code").
E ' 1y��,
A.
E. On February 10, 2004, the Fort Worth City Council adopted Ordinance No. 15861
(the "Ordinance") establishing "Neighborhood Empowerment Reinvestment
Zone No. 14," City of Fort Worth, Texas (the "Zone").
F. Owner owns certain real property located entirely in the West 7th University NEZ
and that is more particularly described in Exhibit `B", attached hereto and hereby
made a part of this Agreement for all purposes (the "Premises").
G. Owner or its assigns plan to construct the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises to be used for as a single-family
residence that will be owner occupied. (the "Project").
H. On February 5, 2004, 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.
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 2000 square
feet in size, and built to the specifications listed in Exhibit D and (ii) having an appraised
value of at least $295,000.00 for 2 story units and $320,000.00 for 3 story units as
determined by an independent appraiser (collectively, the "Required Improvements"). l
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.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a real
property tax abatement on the Premises, the Required Improvements, as specifically provided in
this Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort
Worth-imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be
based upon the increase in value of the Premises and the Required Improvements over
their values on January 1, 2003 ($10,909.00) the year in which this Agreement was
entered into:
1
A r ?
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.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement
application fee of twenty-five dollars ($25.00).
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 constriction 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, the home owner must provide documentation
that he or she is using the Required Improvements as its primary residence (collectively,
the "Records") at any time during the Compliance Auditing Term in order to determine
compliance with this Agreement and to calculate the correct amount of Abatement
available to Owner. Owner shall make all applicable Records available to the City on the
Premises or at another location in the City following reasonable advance notice by the
City and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before February 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.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Tenn, the
City shall make a decision and rule on the actual annual amount of Abatement available
to Owner for the following year of the Tenn 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, (iv) HOME BUYER 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.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default which is defined in Section 4.1 has not been cured within
the time frame specifically allowed under Section 4.2, the City shall have the right to
terminate this Agreement immediately. Owner acknowledges and agrees that an uncured
Event of Default will (i) harm the City's economic development and redevelopment
efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and
expensive additional administrative oversight and involvement by the City; and (iii)
otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom
are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon
termination of this Agreement for any Event of Default, Owner shall not be eligible for
the Abatement for the remaining Term and Owner shall pay the City, as liquidated
damages, all taxes that were abated in accordance with this Agreement for each year
when an Event of Default existed and which otherwise would have been paid to the City
in the absence of this Agreement. The City and Owner agree that this amount is a
reasonable approximation of actual damages that the City will incur as a result of an
uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by
the City through adjustments made to Owner's ad valorem property tax appraisal by the
appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be
due, owing and paid to the City within sixty (60) days following the effective date of
termination of this Agreement. In the event that all or any portion of this amount is not
paid to the City within sixty (60) days following the effective date of termination of this
Agreement, Owner shall also be liable for all penalties and interest on any outstanding
amount at the statutory rate for delinquent taxes, as determined by the Code at the time of
the payment of such penalties and interest(currently, Section 33.01 of the Code).
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.
S. EFFECT OF SALE OF PREMISES.
Except for an assignment to Village Homes, LP Affiliates, Village Homes, LP
first mortgagee or to a homeowner who will use the Required Improvements as its
primary residence or the homeowner's mortgagee which City Council hereby agrees to,
the Abatement granted hereunder shall vest only in Owner and cannot be assigned to a
new owner of all or any portion of the Premises and/or Required Improvements without
'the prior written consent of the City Council, which consent shall not be unreasonably
withheld provided that (i) the City Council finds that the proposed assignee is financially
capable of meeting the terms and conditions of this Agreement and (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 Village Homes, LP affiliates or his first mortgagee, or to a
homeowner who will use the Required Improvements as its primary residence or the
homeowner's mortgagee, Village Homes, LP shall have no further obligations or
duties under this agreement. In addition, upon assignment to any other entity with
the written consent of City Council,Village Homes, LP shall have no further duty or
obligation under this agreement.
In no event shall the abatement term be extended in the event of a subsequent sale
or assignment.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to
the following, or such other party or address as either party designates in writing, by
certified mail,postage prepaid, or by hand delivery:
City: Owner:
City of Fort Worth Michael Dike, President
Attn: City Manager Village Homes, LP
1000 Throckmorton 6300 Ridglea Pl Ste 218
Fort Worth TX 76102 Fort Worth, Texas 76116
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-XXXXX on February 24, 2004, which, among other
things, authorized the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner, shall include, but not
necessarily be limited to, statements that this Agreement is in full force and effect
without default (or if an Event of Default exists, the nature of the Event of Default and
curative action taken and/or necessary to effect a cure), the remaining term of this
Agreement, the levels and remaining term of the Abatement in effect, and such other
matters reasonably requested by the party or parties to receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning
or challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions or City Council actions authorizing this Agreement, and Owner shall be
entitled to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of
Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County, Texas.
This Agreement is performable in Tarrant County, Texas.
7.9. Recordation.
A certified copy of this Agreement in recordable form shall be recorded in the
Deed Records of Tarrant County, Texas.
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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.
„??JQ�IP"
EXECUTED this day ofA 6 1 , 2004, by the City of Fort Worth,
Texas. —�—
EXECUTED this day of , 2004, by Michael Dike.
CITY OF FORT WORTH: VILLAGE HOMES:
By: p"1/4 folr 'l By: &) =4tJ 6�6
Reid Rector Michael Dike, President
Assistant City Manager Village Homes, LP
ATTEST: ATTEST:
By: � By:
'Ali City, ecretary
APPROVED S TO RM AND LEGALITY:
By:
Cynthia arci a
Assistant City Attorney
M& C: qq 3r7
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 o29 day of
2004.
Notary Public in and for e ROSELLA BARNES
the State of Texas { *1*' NOTARY PUBLIC
/,,7 State of Texas
RoSe�1/� A�`` 9
//p G Comm.Exp.03-31-2005
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Michael Dike,
President for Village Homes, LP known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed, in the capacity therein stated.
G EN ER MY HAND AND SEAL OF OFFICE thisl! a of
20D4.
Y Lj��_W�
No ary Public in and f
the State of Texas
:*.
P" SARAH J.ODLE
Notary' NanjZ werber5,2W
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'zi As
Exhibit A: NEZ.Incentives
Exhibit B: Property Description
Exhibit C: Application: (N-EZ) Incentives and Tax Abatement
Exhibit D: Project description including kind, number and location of the proposed
improvements.
Exhibit E: Final Survey
Exhibit A
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. 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 prope�qy__-_,
(such as machinery, equipment, and/or supplies and inventory).
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) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate multi-family residential living units on property that is (or meets the requirements to
be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning Ordinance.
"Project" means a `Residential Project", "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
III. 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 fora tax abatement by meeting the following:
a. Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement.
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in.excess of 30% of the Base Value of the property; and
d. Property is not in a tax-delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property. The seller or
owner shall provide the City information to support rehabilitation costs;
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and
e. Property is in conformance with the City of Fort Worth Zoning Ordinance.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
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 applies for a tax abatement agreement with a term of five years or
less, this section shall apply.
Draft May 27, 2003 3
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 by 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 Agreement
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 'Arf fle"W"•
N. W Oil, t
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 years 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 applies for a tax abatement agreement with a term of five years or
less, this section shall apply.
Abatements for Mixed-Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NEZ must satisfy the
following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of$200,000; or
(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 nn
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
I. 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.I. 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 III.B, C or D, as applicable, and Sections
III.E.1 E.2; and E3. and
b. File an application with the Housing Department, as applicable; and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding. the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
8. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
9. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
10. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
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 Project. 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
Draft May 27 2003 11
m .. .J
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 contract for deed are
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 III., IV., and V. of this policy, as applicable. Once an applicant's
eligibility is certified, the Housing Department will inform appropriate departments
administering the incentives. An orientation meeting with City departments and the
applicant may be scheduled. The departments include:
a. Housing Department: property tax abatement for residential properties and multi-
family development projects, release of City liens.
b. Economic Development Office: property tax abatement for commercial,
industrial, community facilities or mixed-use development projects.
c. Development Department: development fee waivers.
d. Water Department: impact fee waivers.
e. Other appropriate departments, if applicable.
2. Once Development Department, Water Department, Economic Development Office,
and/or other appropriate department receive a certified application from the Housing
Department, each department/office shall fill out a "Verification of NEZ Incentives for
Certified NEZ Incentives Application" and return it to the Housing Department for
.record keeping and tracking.
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property Tax Abatement for Residential Properties and Multi-family Development
Projects
Draft May 27, 2003 14
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
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 '
- I
Draft May 27, 2003 17 ter,
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Incentives:
Sexually Oriented Businesses
Draft May 27, 2003 18
Exhibit B
Property Legal Description
720 Arch Adams Lane, Block 4 Lot 1R-17, William J. Bailey Addition
r"eb-06-04 10 :41A 02
EXHIBIT C
Fc'In'wom'J-r
CITY OF FORT WORTH
i' T"I'( 1J BOIZ1100D EI111a0'4�r•T.RNIEI\T GONE (]N CZ) PROGJ.� A'I
-� rRo,1F,c'r CL1trlrr�.�x1oN.��.1'LXc'ATrorr
170ltiyf C FOR DT17"I.011M.ENT PROJECTS
1, X1N".IACA,Tf(>fti C11LCK WS1-
1'Jcas. SL:bo'ul 1110.fai1ouz711 dOCIITr)CnLltiOn'
[.� 1 [n:tli>(CI':l applicatica form
A I i;(+,f all properties owned by 0)e applicant is Fort Worth
[yl Apt:licatioa foe—orshicr's ehrek or money order(For tux ill+atp»sent npplicat.iuns only',
'Por multifanuly, colnnicrc.iai, industrial, cornmtTcial facilities, and inixc:d-,w: tax
lcment applications: 0.50!'o of ehz total Capital Invcsl.rutnt of the project, not to cxcc u(.1
f 1,000.00;Fot sinf;}c firmly tax abatehient ipplic:aH(>ns' S2S per house)
Proof o'r owr� erslijp, such as w:,trtutly deed, affidavit of bcirship, or a prob:atcd will OR
>vid.:irc_of site Control,such as option 10 buy
_ Ljtly;;F,ctr u: or the properly(optional) -
1'ur 1LCliahili(.afiun Traject.* nnlY:
Set. of Rehabilitztion (12cmodcl) P) and ;t Iic n <1: ir?i�)e r hat�ilit1ti��ti
qc)- (for applications of tax nbatemcnta and davelopment fee m-rivers for 1-0mb
projcrts only)
fiat table +.1r+L>lirruion ux:huies mly 1ihysiea] i-npmvmca s to real-propaty. II dok..4 NOT indtade potso;-A
Fnl,.+rty sa:;� �c (eoniturc,applinnccs, cquipm::nl,and'or se:ppli�s_ 7ut:+I eligible Teh.%b>)imiion costs 0iQ] rqua)
In or P-xoe'M 31,11/1 of tt,c Tirrmt Appraisal Uistdct{TAD) appraisexd value Of lace ctntcturc d'Jrine the yc:;+, .
ml.ibilita,im+Oxv'n.
Y01) (11115'1APPLY*POR TAX;111ATy,?"k 1'AtFORE ANY BUILDING I'l1imITS ARL' ISSUEn FOIL
•5'fY U k 1'I't Ol'1•,R'L'S',
If. .hNFLtf"ANT/Ac,ENT!N1-'0P_NtaT10N
1: Applicaul: V (LLjS,� 44bM66 _ 2.QContactPers(In'
3. Add/.:.sc: (y_zR�DCy A PC.. 2-�� ���`_N
Street 0 l Stat•c %ip
•1. Pbt,ncnn-. 1 3' "I 5. FA%No.:
CL cf
7. A!!V11t(if nny)
�f.rC0 Clty Sl1tC Zip
R. kbonc;,;,.: -N-�� 10.lvzx No.:
Ir}cru i+r�ad riwlLcr i+llorgtntton or c)nt'ttlentinn, planse contact Jnmic 'Warner at ('917) 392-7507 or'
1"..11'rter 61ie-lurt:1, (k!7)392-7336.
1
I
Feb-06-04 10:41A P _ 03
w ,uv v -ry in, vin lwu.i,uu ✓u iq,ii,l•1T1 I11[1 11Vr U1 VII (.JC.O 1 , UJ
lii. 1'I2().lL•'C."I' ELIG'IBILIT'Y
]. V)v,t":li�t,lori'i,the addresses and Irbil dexcriptjons of the project and other pruperi.ics your
uCf:1111/.(1(m owns in tort Wool,. AtWcl: mcles and bounds dt•seription if ),o addrncs or
lc;;-tt rli`5-rii,tian Is availnbic. Attach on rxhibil showing the loc:lllnl,of lbe prnjert.
'i'tEl,ie .l 7�res�erty Ownor,'l„p .
. --- Ac1►1res+'- -.7ap� 7,c�:i1t)cscripiin)t
Cade $ui:divivion� r.otNo. I Hinckro_
(1',njccl Lacntii'n)_ � _
Ovate t,lr),th-041ifintial xheels otpaper os))ceded.)
2. For t,-teh I,rupiv,v- Pes listed In Table 1,please check the boxes below to Indicate if;
■ )h,r;arO trues due;or
• Ll:cre nru C'if.y bens; Or
■ you, t,nvc been subj,cct to n $;Biding Standard.) Cominis;sion's Ordl;r of Demnliiinn whcro the
rtrizelty was 11CM01iShO t within the lust five years.
'I':,Lhs 2 L'ru�)ers�Tllres :►))d Cify t.ic»s _ ._„ ___-___.�._
Addresv Property City Licns on Propaty
Tnics
ABOY
I Wcrd Ao:�rd-vplopra 1)e,nalitit,n tlaving -Urcicr of
ike Nei Shccture Lleus Liens � Llan a
13t nullrio
-tAN-4
LJ
(Ni-zisc at+ach adti tinnul Si m&orpapurxv oceded.)
3. Do yut1 cnln other properties Under orhor nnn)us" ❑Yes o
l( Ve%,please specify
1. Duc.. Oka proposed project conform with City of Fart Worth "loni)1g7 Yes
tyros, k•Amt steps are being tlkern to insure compliancO _ . -
S. Proj��et'L-YI'rr X . rE D —❑-
L
Singlo Multi- Conmuxcial Industrial Conununity Mixed-tJ-,o
Family Fntnily 1 acil�tj�s
• A'n'AcH�p7a��or+�•S
Feb-06-04 10: 42A P- 05
!'GL) VV CVV4 I;lu utu•VO mi Vt ry Ilu Vol ou VCt miimil; i nn nu, u r u 1 1 I.JCU 1 V't
Ft).R'T WC)RTill'
l,. M illi.a t:r.cv r•nnsrruebon or rehab project?
Nc�;('orc;nlcrinn [—Jkch.1b
%, 117rat is rhe status of yorlr project?
IflPlclrn;a; St'rgc UndcrCpusts;action ❑C on`!i?ef.ed
N, 1f your project has beca completed,when was it complcicd?
P. flow'Y"Wh a the tout devc1optaent ctlsr of your project? -2,Q—7 U O
10, \fill the r•c•hAbilitatirm work`-tqunl to at leAst 30% of the Tmmit Apprais=al District
N#TA Irl e 5lke,-Svd value of(be.structure during the year raeh:abl9itariott ocoltn-ecl?
f_,1 Yr L)No
"C7ttt�'lalay,,ir11 i0i1provuMents to real property is eligible, DO NOT include porsonnl prnprrty S;sul m4
1'�tt:ill�rc,�ppli:rnce. cgrtipmont,ur,d/pt ssrpplirs
I I. TI'oiv rnurh is the total square fuotagc of your project? salu:tre feel
12,i••<i: n%J i0si-familyhnmcn>t`nerslil�,nrixesd-]tsc,-or tttulti-fumilx,c[ t,^c'lnnrncni n1 n rrr,phlnw
lift out the mimbcr of rexidential uni#5 hid on.1motno r'rn;;e of owners or rcnt•crs ixr the
I(,llowiu� 1:,b1r..
-,-vn,.mhr.r oRrsiicg- tll.trnkt_ .d. _ coneMt-c.n�c of O._nersY.,1r 1 or Reamers
-
T-. :;: ,,T :.1,''•' f 1. `Nurllh�i'u1' Ciuit ,. . }�c rcCratagr..
I:At of U��an.„�(tug„ �{"Alvrr,t '_,. - ;_ ---• .:.. ..--- .:. :_. � '..:--
A1virl:Axc-i Medi:m Fa,rtily lncomse, Pimse secsnachmeut for incorne wd housinepayn umguidclincs.
1.1. Vor•a tnuliif'arr)il�lro'eeC to be qualified for txx ahatcment,at least Z(l% of total unit's shall
lu!-1Rardailk hr families at ur below AO%ofAMT11. Check tlaa ltoa if you m mlw ina a
w;aivcr of this rvquir,=(,nt. i 1N/q
,14. I w:i tooter.,rcial,indushial or cnmmonitl facilites nroiort,ihdieatc squ:erc toot�ec of
rt;tn-resi.]��rrlitrl snacc.
f::,�:n rr��i�is1 Inducttial Covimunity 1'aaill(i"
- Iq hk ;cia.aa rc feet _ tquarv,.fu t squmc loot
l'►,3•:.1,�1:� h;�'ti1•ti`1;'-t, QUt:STJONS NU.7{1 7'U NU. 12 UNL7'Ir vQLT AI{L A 1'P[,1"lNG •.
1'OR A TAX A13A7'r.ML;NT.
Is. (low much,vM be your C:allitnl Tnvestrnont``` on the project?l'le:ise use tltc followbig
Liblie to proviala the derails and amount nfyour Cnpital Investment(Attached iddiuonal
tilrrCt4 if ric•r.r•sc�rr•). -
'li wbk 4 C: )ilal Tnvestme:r(of the
..� r 1. •-.-.qr�.
_,7
T..,7._'l—Tr-�ir•�...-w..—...n. ,r'rw• ���....F ._ .�) - 1. .�r.v-
l' ,:r`:''::.'�ti 11rrYl;r• .h. . ,' :/ •.I�. riU�l 1':.,',^:i '.I. •. Y,l<)•tC>., '
3
Feb-06-04 10 :42A P . 06
(GD-uu-cuu4 tau uo•u� nii urw nvuJllYV vci nniiicm ran nv, vi r ur I r.,;u v�
FORT 1'YO RT)I
C"'Tit:ll fltva;rtrYlC, in-lUdc ertly fC11 proputty im11rr1Fcments such as new fariJitirs 721 t1 structwes, situ
iMprovoti !ts, Paciliry exp;nsion, and facility modernization- G1pilai Investment DOES NOT include
18A�1 .'�%t�YV�ICltlil Con-1-s and/or any cxlsdn- improvements, or per5onnl propCTty' (SUCI] IS 111]Cl1Jloly,
C!►Illlrl'l.:lli,11'Itl•'nr sixpplivs or inventory).
16. 17() .1 -rciul,ilnlu.Nlriyil.Conlnlunity facility or tnixad-use pY,O!CCf,hOw many
elupluyc,Cs will Ific project genarute?
please Indicate the porcentage of all uses in the project In the
1�111t1tll�lg t,lille_
'Cable.5 1'creentage of Uses in a itillxcd-Use Project
1'vpe Squnru Roarisre �- 1'i�rcenht e
l)lli i.t;
Srlyc� -•----- -- —.. .__. _ ... . .... ....... ...._._.
I. Wlstct lairo.ntivm arc you applying for?
Li1}►r riuul•1'rc�nQrlv'fax Ahatemee:i�
�1 S�u11
El ;�lUio Ihun s yt its
I)cr,pinplu rn,�-Mc�tr.'4Vaiver;c
X All huildins permit related fes(including Plans)Zoview and Inspections)
( P1,1t afq)l;c oLdon Cce(including concept plan,preliminary plat, until plat, short form ro-phlt)
(,.] laiCi;d of'Adjua•Uucnt�1Qplieat;�n fee:
. �„] !>1•rcl�litiott foe _ •
Stt;teture►noving Ice
C'ommkinily Facilities Agreement(CFA)application fee
7nninu npp,Iicaiion fec
1 7 sti vet n ld nullity easement
1rApict fL-.W IivCr �l
Mrfcr sizi; 44� is How nilwy meterO ,
vic:tei'o(C"its• i.lc:ns - --- — -
�� lbc�cll:ctlx
rlt 13utlrct,up/ripen stnrclure liens
jJ.� 1)cnxlfifinulian4
C� ravin.-liwls
Feb-06-04 10:42A P . 07
vv �vvz u,u vv'vv n,: vi w IIVW I11 L/u nn u11-111 Inn nU, oil oil f o<o
wOR'i,�i
.�. :t,i:)<;�,c,�1•LE;I3GAJI�,h7'S _
1 tl,o information providod is tme and accurate to the best ortny kl: wL!dg:e. I hw'vby
th,#.1 1):tvc rccaftil a Copy ofN.E=Z BmicInCentives,which go-voms tlll:gr;!ritin(; of LaY
v-'aivcrc ar,d reieas0 of City liens,and that any V101.A'1'JON of the terms of Lb L-t�r:Z
11 XS';:lac+;rltivc: Or MTSXI:FRL-SEXTATIDN shill constihtr groands for rcjcction of ar.arplit atiur.or
iCUltiratu=a c,)CinccrlccvP9:tt the discrefiolLof the.City.
I tm.+cr�a:,nd ihit the appruw.J of fee Waivers and other ince ttivos shill not be de:ctne-d to be ahhroval of
t#:t,}'a,1#ect of'thc l�ruj�ct. T understand tat t I am responsible in obtairt:s:g required Jtermits 5itd
idspc•c6ops fruru ll,e City a,nd in assuring the project is located in the carrc•tx rotting disu:ict
I at iCO k)}truvid_ my addillowl information for detcuninutg aligiEily as requested by the City.
(rIT1,i) NAVE) (AUIIIURY/..T' SIGNATCItI:) (DATF)
^i`_ i, .. '�:' 'i'�_".�.4�1F'-IYL.M��T:'>TA�:Q�''VTI;r1'll'�'.lftrt;���{�l4�lrt�11•�q:�, ^••r°'• ;t: :•4`l.;='".• :y';
` Cd9ixtY'art;'G►'urth;.1'IliusirrJJ;I�cpArtii>eris
11'hU(1.1"h'rnckuiot on.$traol FiirL Worihx 7gxar
JGI'UZ -
• , .• ;,. ' .(?I17)•3.y1-7318 .. . ..' � ',
131talt:.�tarrit`t'k!r0l1fW1lClhttry�.nt't _
lac sh'��nic ve"Sion of"ltix fornt is&'tapable by request. Pfease call 817.392-7507 to najuest a wpy.For marc
infOrmnlion tis thu NTiT.Program,please via'lt 6cir 1AVU s7to at www.lortwOrtht ov.+,r�lhvusint.
1'or dMCii T.JSn Only
Appliratu�n Ne- _ _ In whichNF.Z? Crnutei:pisla•iri
j&(•)tlira(ioe CoinioL;IL d P:ju(Rectivrd Pate); -...�.� _ Conform With 7_d.-mg? []Yee []tact
1'y�ta7 [-I St.- C— htull•ifrlrji)y ❑Commercial ❑hsdustrial ❑C•nimr_unity Facilities ❑Mixed•Us:.
Cnncrnrrtiort coin-,lcdon dalo? ❑-DofwcN`F7.❑AACT NU 0w'nersl:ip/Site Control �D Yes C-1 NO
TAD Account t:cp. - _ Cnesistent with the NF.,Z plan? []Yes [-]No
A•ied a iard:ibiIiiy 'Ye-s [-,No Mini-m►m Capivl lnvestmcnt? Yes No
ltc k-A,at or bigtsr Ulan 303'u? El Yas 0 No A(ectmix.41-use doLnition? []Yes (J No
Ta'.r C-on•cat on t9this;rropel ly? ❑Yes El No *-rax 61n=t on od--erprc+Pcrties? Q Yes Q;''o.
0I>, ns on this prupert)'? City liens on other propertics?
• N'Jc d liens D Yrs 0 No ■ Feed Iicrts [J Yes r]No
Fk7aid-upbprtt-Ut:cLurc lions [_]Yes []To •Board-up/opan.ctntcturc liens Yes No
• L:u;:,jnlition tirnr' El yes ❑No • DoMoUlinu;iects L]Yes No
1'avirl„^ lic n:, L Yes ONO . Pat-ing lit= ❑YCe 0 No
o C1;J. rofc1_nlyliLICut (,Yes ONO. . O:derof-dulnoliFion'
t'!'I tifii��l:� r ;ti':;1. [l No C'•�rtiliad by That❑crr;�fit�tion i3sUtd?
.wr,:crcwl LcL { ];:c:i,rrmtic J).vclopancLt [�TIonsit*q []ncvcf�� rart',t r�SX'ttcr []Cock ❑'i 1'W
ts, d APi'it ati,.:Uv3
S �
Feb-06-04 10 : 42A P_ 08
1 LU V,/ t_liV' !l iv VV"vV' Illi v! •• Ilvv.,I llv yw
A'I TACIINtGNT 1NCOM1 tl1tiD T n[iSiNC;P/1vM r:Nr c�Uil�ci,1\LS
F-Iltify Sizv 80"/ of Median) iconic", Msxfiriuis� Sou•»n(;T':�)'mcnl ACI'urcfable
for Individuals or Families at 80% of
Medi.ln lncnir►e
1 334,350 $859
7 539,250 S981
=1 544,150 $1,104
°l $49,050 $1,220
$52,900 $1,323
b 556,900 $1,423
7 SGO,s00 $1,520
h $64,750 X1,619
"Sours,:: 2002 Fort Worlh-Arlitlbton PNISA IIUD Liconic Guidobric
u
Project Description EXHIBIT D
6th and Arch Adams
This town home project consists of ten 2 story and five 3 story units. The square footage for
each unit varies, with an average of 2002 square feet per living unit for the 2 story homes, and an
average of 2046 square feet per living unit for the 3 story homes. The 2 story units have 2
bedrooms and 2 '/2 baths with an optional 461 sq ft guest suite over the 2-car garage. The 3 story
homes will feature 2 bedrooms plus a study, 2 '/z baths.
This project will feature:
100% masonry exterior
Marvin insulated Low-E wood windows
Slate front porches
Kohler Memoirs plumbing fixtures
Honed granite slab kitchen counters
Heavy gauge stainless steel under mount kitchen sink
Stainless steel kitchen appliances
Genuine tongue and groove oak floors
Solid core interior doors
Quality Emtek lever style door hardware
Gas fireplace with granite slab surround
Museum quality smooth wall finish
Professionally landscaped &maintained front yards and
Common areas
Full landscape sprinkler system
Courtyard garden with breezeway (2 story units)
Large storage space over garage w/optional guest suite
Conversion (2 story units)
Two-car garage
Tyvek home wrap
High efficiency dual zone 12 SEER AC with
programmable thermostats
High-speed phone, cable, and Internet wiring
Fabulous views of downtown skyline (3-story units)
C
SL
��u "
Pagel of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/2/2004
DATE: Tuesday, March 02, 2004
LOG NAME: 05VILLAGE HOMES REFERENCE NO.: C-19987
SUBJECT:
Approval of Tax Abatement Agreement with Village Homes for Eleven Real Estate Properties
Located in the West 7th Street/University Drive Neighborhood Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Approve a five-year Municipal Property Tax Abatement for each of eleven real properties listed in
Exhibit "A", owned by Village Homes and located in the West 7th Street/University Drive Neighborhood
Empowerment Zone (NEZ) for the development of townhomes; and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Village
Homes are true and correct; and
3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with Village Homes for
each of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic
Incentives.
DISCUSSION:
Village Homes is the owner of the eleven properties listed in Exhibit "A". The real properties are located in
the West 7th Street/University Drive NEZ and Neighborhood Empowerment Reinvestment Zone No.
14. Village Homes 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, 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 Program 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. Village Homes will invest, at a minimum, $2,152,000 to construct eleven town homes in the
West 7th Street/University Drive NEZ./In order for Village Homes to qualify for the tax abatement, Village
Homes must construct the townhomes with a minimum of 2000 square feet that will appraise for $295,000
for 2 story town homes, and $320,000 for 3 story town homes. A more detailed description of the homes to
be constructed is attached as Exhibit "B". The form of the Tax Abatement Agreement is attached as Exhibit
„Cis
Upon execution of the agreement, the total assessed value of the home used for calculating municipal
property tax will be frozen for a five-year period, starting on January 1, 2005, at the estimated pre-
improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2004, for each one of
the properties as follows:
Pre-improvement TAD Value of Improvements $ 0
Pre-improvement Estimated Value of Land $10,909
Total Pre-improvement Estimated Value $10,909
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 03/05/2004
Page 2 of 2
The municipal property tax on the improved value of the homes is estimated at $1786 per year on each 2
story unit and $1937 per year on each 3 story unit for a total of $102,005 over the five-year period for the
eleven 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 Village Homes first mortgagee, or to a
homeowner who will use the required improvements as his/her primary residence or the homeowner's
mortgagee. All other assignments must be approved by the City Council.
The properties are located in COUNCIL DISTRICT 7.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office bv: Reid Rector (6140)
Originating Department Head: Jerome Walker (7537)
Additional Information Contact: Sarah Odle (7316)
httn://www.cfwnet.ore/council nacket/Reoorts/mc orint.asn 03/05/2004