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HomeMy WebLinkAboutOrdinance 17460-03-2007ORDINANCE NO 17460-03-2007 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS `NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NO 34, CITY OF FORT WORTH, TEXAS" PROVIDING THE EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A MECHANISM FOR RENEWAL OF THE ZONE, AND CONTAINING OTHER MATTERS RELATED TO THE ZONE. WHEREAS, pursuant to the City Council s adoption on April 22, 2003 of Resolution No 2938 (M&C C 19551) and amended on May 27 2003 by M&C G- 13984 the City of Fort Worth, Texas (the `City") has elected to be eligible to participate m tax abatement and has established guidelines and criteria governing tax abatement agreements entered into between the Crty and various third parties, as authorized by and in accordance with the Property Redevelopment and Tax Abatement Act, codified m Chapter 312 of the Texas Tax Code (the `Code") and WHEREAS, the City Council desires to promote the development of the area m the City more specifically described m Exhibit A of this Ordinance (the `Zone') through the creation of a reinvestment zone for purposes of granting residential and commercial industrial tax abatement, as authorized by and m accordance with Chapter 312 of the Code; and WHEREAS, on March 27 2007 the City Council designated the Berrylull/Mason Heights Area as a Neighborhood Empowerment Zone by Resolution to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase m economic development m the zone, or (3) an increase m the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, the Neighborhood Empowerment Reinvestment Zone No 34 is located wrthm the BerryhilUMasomc Heights Neighborhood Empowerment.Zone; and WHEREAS, the Neighborhood Empowerment Zone No 34 will promote the creation of affordable housing m the zone and an increase m economic development m the zone• and WHEREAS, on March 27 2007 the City Council held a public hearing regarding the creation of the Zone afforded a reasonable opportumty for all interested persons to speak and present evidence for or against the creation of the Zone ("Public Hearing'), as required by Section 312.201(d) of the Code; and WHEREAS, notice of the Public Hearing was published m a newspaper of general circulation m the Crty on March 16, 2007 which satisfies the requirement of Section 312.201(d)(1) of the Code that publication of the notice occur not later than the seventh day before the date of the public hearing; and WHEREAS, m accordance with Sections 312.201(d)(2) and (e), notice of the Public Hearing was delivered m writing not later than the seventh day before the date of the public hearing to the presiding officer of the governing body of each taxing unit that includes m rts boundaries real property that is to be included m the proposed Zone; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS SECTION 1. FINDINGS. That after reviewing all information before rt regarding the establishment of the Zone and after conducting the Public Hearing and affording a reasonable opportumty 2 for all interested persons to speak and present evidence for or against the creation of the Zone, the City Council hereby makes the following findings of fact: L1. The statements and facts set forth m the recitals of this Ordinance are true and correct. Therefore, the City has met the notice and procedural requirements established by the Code for creation of a reinvestment zone under Chapter 312 of the Code; and 1.2. That the boundaries of the reinvestment zone shall be the boundaries as described in Exhibit A which is attached hereto and made a part hereof; 1.3. The Zone meets the criteria for the designation of a reinvestment zone as set forth m V T C.A., Tax Code, Section 312.202, as amended, m that the area is reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract mayor investment in the zone that would be a benefit to the property and that would contribute to the economic development of the mumcipality 1.4. Future improvements in the Zone will benefit the land included in the Zone as well as the City for a period in excess of ten (10) years, which is the statutory maximum term of any tax abatement agreement entered into under the Chapter 312 of the Code. SECTION 2. DESIGNATION OF ZONE. That the City Council hereby designates the Zone described m the boundary description attached hereto as Exhibit A and made a part of this Ordinance for all purposes as a reinvestment zone for purposes of granting residential and commercial industrial tax abatement, as authorized by and ln, accordance with Chapter 312 of the Code. The Zone shall be known as `Neighborhood Empowerment Reinvestment Zone 3 No 13 City of Fort Worth, Texas" The area wrthm the Zone is eligible for residential and commercial mdustnal tax abatement pursuant to Resolution No 2938 and M&C G- 13984 as amended. SECTION 3. TERM OF ZONE. That the Zone shall take effect upon the effective date of this Ordinance and expire five (5) years thereafter The Zone may be renewed by the City Council for one or more subsequent terms of five (5) years or less. SECTION 4. SEVERABILITY That if any portion, section or part of a section of this Ordinance is subsequently declared mvahd, inoperative or void for any reason by a court of competent ~unsdiction, the remaimng portions, sections or parts of sections of this Ordinance shall be and remain m full force and effect and shall not m any way be impaired or affected by such decision, opimon or~udgment. SECTION 5. That this Ordinance shall take effect upon its adoption. AND IT IS SO ORDAINED ADOPTED AND EFFECTIVE March 27, 2007 APPROVED AS TO FORM AND LEGALITY B Y' Leann D Guzman Assistant City Attorney Date 7J '~ 1 4 Attachment A STRATEGIC PLAN BERRYHILL -MASON HEIGHTS NEIGHBORHOOD EMPOWERMENT ZONE March 2007 LOCATION The Berryhill/Mason Heights Neighborhood Empowerment Zone (NEZ) is situated in the Southeastern quadrant of Fort Worth in relation to the Central Business District, located approximately 6 miles southeast of downtown. See attached maps. North boundary• Hwy 287 service road to Cobb Park Road West boundary Cobb Park Road to East Berry South South boundary• Mitchell Street to Wilbarger East boundary Foard Street to Vaughn to Bishop to Hwy 287 service road GENERAL CONDITIONS IN THE BERRYHILL/MASON HEIGHTS AREA The area contains small older homes, mostly 2 bedrooms, on pier and beam foundations on large lots with predominantly wood frame construction. Many homes are in need of repair and the area has moderate code violations. The age of the homes indicates a possible large number with lead based paint. There are no sidewalks. The area has anon-grid street pattern with a wide range of street conditions. There is a large number of vacant lots in addition to the vacant land surrounding the Masonic Home. Zoning does not appear appropriate for the area i.e. `B two family verses A 5 one family Retail or commercial uses are minimal and in some areas of the proposed NEZ, non existent. According to the Tarrant Appraisal District, the proposed NEZ area has an approximate total taxable value of $48,344,505 made up of the following components. Uses Number Total Value Average Value Average Age Commercial 30 8,312,085 00 277,069.50 1958 Commercial Vac 29 7,957,424 00 274,393 93 Undevelo ed 4 329,386 00 82,346.50 Utilities 3 122,328 00 40,776.00 Multi-family 1 7,204,816 00 7,204,816 00 2002 SF Vacant 102 331,410 00 3,249 12 Single. Family 772 22,626,956.00 29,310.00 1941 Duplex (35*2=70) 35 1,460,100 00 41,717 14 1952 Total Properties 976 $48,344,505.00 STATISTICAL & DEMOGRAPHIC INFORMATION Census data from 2000 reveal the following key factors Ethnic distribution for the area was 66% African-American, 27% Hispanic, and non- Hispanic white estimated at 7%. The area s population declined between 1990 to 2000 from 2323 to 2086 The Hispanic population grew 113% during that time period, to 603 persons, while the African American population was reduced by 13%, from 1672 to 1455 Approximately 91 % of all housing units were single family detached, however 29% of housing units were renter occupied -therefore it is likely that approximately 20% of single family units were renter-occupied at the time of the Census. The area has a high concentration of elderly Persons 62 or over made up 11 % of the population, however, 37% of households in 2000 had a family member 55 or over The azea had an unemployment rate of 12.6% in 2000, compared to the Fort Worth average of 3 8%. The median household income for the azea in 1999 was $24 440, compazed to a Fort Worth city-wide median income of $37,074 Of all persons (adults and children} living in the area, the Census found 28 7% were in poverty compared to a city-wide average of 15 9%. Educational attainment in the proposed NEZ area was low relative to the city as a whole: 41.5% of persons over 25 had not graduated high school, compared to 27.2 for all Fort Worth residents The percentage of residents in the NEZ who were born outside the United States was 14 6%, slightly lower than the city-wide percentage of 16.3%. Up to 24% of residents speak a language other than English at home; city wide this percentage is 29%. Statistics for area based on Census Tract 1046.04 Additional information from the Census and maps of the azea aze attached. EXISTING CONDITIONS. HOUSING The Benyhill/Mason Heights NEZ area is fairly homogeneous consisting of primarily single- family residential development. Approximately 667 single family units exist within the boundaries. The majority of the single family homes were constructed prior to 1970 -data from the Appraisal District indicates an average age for single family homes of 66 years, and an average age for duplexes of 55 years. Rental duplexes appear to be clustered at certain geographic locations in the azea. Data from the Tarrant Appraisal District indicates that 34% of the single family properties in the area aze not owner-occupied, and therefore likely to be rental properties. Comparing this with the Census data cited above, it appeazs that single family rental uses have increased in the area over the past 10 years. EXISTING CONDITIONS: ECONOMIC DEVELOPMENT The area has been in a declining state due to a lack of economic and re-development activities. The average age for commercial properties in the area is 49 yeass old. Increased investment in areas throughout the central city some of them in proximity to the proposed NEZ, including Evans-Rosedale, La Gran Plaza, Fort Worth South and downtown Fort Worth, and in major housing infill projects such as Sierra Vista and New Rolling Hills, has created heightened awazeness of the economic potential of other central city azeas such as the proposed NEZ area. The area s. excellent location and ready transportation access to east west and north-south corridors increase the potential for this NEZ. EXISTING CONDITIONS: INFRASTRUCTURE The following streets are major thoroughfares within the Benyhill /Mason Heights NEZ. East Berry Street, Martin Luther King Jr Freeway (LJS Hwy 287), Mitchell Boulevazd, and Vaughn Boulevard. Their overall condition appeazs good. Enhancements are presently being sought to improve access to Berry from Highway 287 Existing neighborhood streets lack sidewalks. NEIGHBORHOOD ATTRIBUTES Proximity to downtown Access to Public Transportation routes (The T) Good transportation /commuting access via major highway i.e. Hwy 287 Good transportation /commuting access via Berry east-west thoroughfare UNMET DEVELOPMENT OPPORTUNITIES Vacant lots throughout area neighborhoods (approximately 100) Lack of retail and commercial Commercial, retail and residential development proposed for the 200-acre Masonic Home site, to include approximately 63 acres of commercial development and approximately 108 acres of single family residential, with homes prices ranging from $130,000 to $200,000 STRATEGIES TO IMPROVE THE AREA PROPOSED HOUSING STRATEGIES New single family housing is needed and recommended. Development of this type is presently proposed for the azea and initial stages have begun for such development. Development of additional dwellings on presently vacant land, both on large tracts and on infill lots, is likely to enhance average incomes and property values in the NEZ area. ECONOMIC DEVELOPMENT Retail /Commercial Development in the whole southeast Fort Worth sector and more specifically the Berry Street / Hwy 287 corridors, is severely lacking. The proposed new single family homes within this NEZ, as well as the additional new 232 homes in the Sierra Vista subdivision, and the proposed 155 units in the new Rolling Hills Addition are likely to stimulate the need for and growth of the retail market in this azea. SOCIAL SERVICES The large number of elderly households indicates a need' for senior services for longtime residents. The large number of children in the area, indicated by an average household size of 3 OS relative to a citywide average of 2.67 points to a need for services for children and youth. day caze facilities, playgrounds, etc. A YMCA branch is presently located within the NEZ area. EDUCATION An elementary school is located within the proposed NEZ boundaries. The large number of adults who are not high school graduates, and the number ofnon-English-speakers, indicates a need for adult education, both for job training and for general literacy DESIRED ZONING CHANGES A majority of the area is zoned B -Two Family should be zoned, at a minimum, A 5 Single Family Other zoning changes may be pursued on a case-by-case and property-by-property basis as redevelopment is proposed, consistent with the provisions and goals of the Comprehensive Plan and of this NEZ Strategic Plan. PROPOSED DESIGN ELEMENTS FOR SINGLE FAMILY INFILL DEVELOPMENT IN THE NEZ 1250 square foot minimum, with 3 bedrooms and 2 baths; for each additional bedroom, 150 square feet should be added 8112 pitch roof with one gable Landscaping to the same standards as required by the City's subdivision ordinance 70% Mortared Brick, with remaining exterior surfaces of fibercement type material At least 78 sq ft. front porch At least three fenestrations on the street face Raised foundation 18 inches from grade with reinforced beams Garages shall not extend beyond the building face DESIRED PROJECT TYPES TO BE ATTRACTED TO THE NEZ: ELIGIBLE TO RECEIVE COMMUNITY SUPPORT FOR TAX ABATEMENTS Desirable Project Types Single Family Infill Retail Commercial Facilities as appropriate on main thoroughfares Undesirable Project Types: No NEZ Benefits would be authorized for the following: liquor stores pawn shops car lots check cashing businesses bars tattoo and piercing parlors sexually oriented businesses. duplexes Berryhill Mason Heights NEZ Census Data Census Tract 1046 04 Total Housing Units 734 Owner Occupied 444 60.5% Renter Occupied 213 29 0% Single Family Detached 667 90.9% Occupied Units 683 Vacant Units 51 6.9% Rental Vacancy Rate 10 5% Built Before 1970 660 89 9% Built Before 1960 461 62.8% Median No. of Rooms 4 9 Median Reported Value, Owner Occupied $28 300 Number reported valued under $50 000 Owner Occupied 413 56.3% Median Mortgage Payment $269 Median Rent payment $469 No. Rental Units with rent under $499 $123 57 7% Householder moved in since 1995 252 34 3% Householder moved in before 1980 284 38.7% Householders 55 to 64 in 2000 (now 62 or older) 134 18.3% Householders 65 or over in 2000 138 18:8% Total Population 2086 Adults (18 & Over) 1383 66.3% Elderly (62 & Over) 227 10 9% Number of children {under 18) 703 33.7% Family Households 647 75 90% Household Size, Renters 2.98 Household Size, Owners 3.09 Hispanic 523 25.1% African-American 1366 65.5% Other /Non-Hispanic White (Est.) 197 9 4% Economic Characteristics Number of persons 16 & over 1451 In Labor Force 732 50.4% Employed 640 87 4% Unemployed 92 12.6% Employment by Occupation Mgmt,professional & related 117 18.3% Service occupations 164 25.6% Sales & Office occupations 145 22.7% construction, extraction, maintenance 76 11 9% Production, Transportation & material moving 138 2'1.6% Employment by Industry Construction 72 11.3% Manufacturing 79 12.3% Wholesale Trade 18 2.8% Retail Trade 49 7 7% Transport & warehouse 41 6 4% Information 28 4 4% Finance,insurance,real estate 44 6.9% Professional, scientific, mgmt, etc. 79 12.3% Education, health & social services 110 17.2% Arts, entertainment, recreation, hotel & food svc 43 6 7% Other services (non govt.) 56 8 8% Govt/public administration 21 3.3% Employment by class private employment 527 82.3% government 62 9 7% self-employed 43 6 7% Total Households 647 Income under $15 000 (est under 30% of median) 170 26.3% $15K to $24 999 160 24 7% $25K to $34 999 150 23.2% $35K to $49 999 93 14 4% over $50K 74 11 4% Percent Low-Mod (from HUD, not Census) Families in Poverty 128 26.1% Persons in Poverty 5g8 28,7% Seniors in Poverty 38 21.2% Children in Poverty 247 35.1 Median Household Income Average Household Income Per Capita Income Median family income, married couple families Median family income, single female householders Median household income, elderly households $24 440 $28, 968 $9150 $33, 824 $17 917 $17 472 Households on Social Security and/or SSI 245 37.9% Median Income by Race Median income black households Median income white households Median income, Hispanic households Social Characteristics School Enrollment in 2000 Educational attainment of persons 25 or older less than HS grad HS grad some college BA or professional degree Veterans (as pct. of civilians over 18) Disabled (as pct. of age cohort) Disabled 5-20 years old Disabled adults 21 to 64 Disabled Elderly 65 & over BominUS Born in Texas Foreign Born Citizen Foreign Born non-Citizen Region of Birth, Foreign Bom: Latin America Language spoken at home not English (persons 5 & over) Spanish spoken at home Population Trends, 1990 to 2000 White Black Hispanic $21 964 $35,000 $32, 589 580 1185 492 41 5% 288 24 3% 304 25.7% 101 8.5% 98 7 1 61 11% 490 43.50% 89 49 70% 1735 83.2% 1491 71 5% 76 3.6% 229 11 0% 293 96.1 446 23.9% 417 22.4% -29.70% 13.00% 113.10% Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 3/27/2007 Res. No 3468-03-2007 Sz Ord No 17460-03-2007 DATE Tuesday March 27 2007 LOG NAME 05MASONIC REFERENCE NO G-15653 SUBJECT Adopt Resolution Designating the Berryhill/Mason Heights Area as a Neighborhood Empowerment Zone and Adopt Ordinance Designating the Berryhill/Mason Heights Area as Neighborhood Empowerment Reinvestment Zone No 34 RECOMMENDATION It is recommended that the City Council 1 Adopt the resolution designating the Berryhill/Mason Heights area as a Neighborhood Empowerment Zone (NEZ) 2. Hold a public hearing concerning the designation of the Berryhill/Mason Heights area as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No 34 and 3 Adopt ordinance designating the Berryhill/Mason Heights area as FWNERZ Number 34 pursuant to the Texas Property redevelopment and Tax Abatement Act, Tax Code Chapter 312 DISCUSSION On April 25 2000 (M&C G-12897) the City Council approved the Policy Statement on the Creation of Local NEZ's in accordance with Chapter 378 of the Texas Local Government Code The City Council also authorized the City Manager to identify neighborhood areas that may be eligible for NEZ designation and to develop administrative procedures for the NEZ Program The NEZ Administrative Procedures were adopted by the City Council on October 3 2000 and amended on April 2 2002 and October 4 2005 to initiate improved program requirements. The procedures included two methods by which a NEZ may be designated City Council designation or 2. A neighborhood sponsor application process. The proposed Berryhill/Mason Heights area is eligible for NEZ designation City staff in consultation with the City Council District Representative and neighborhood stakeholders have developed a plan according to requirements under the NEZ policy The plan is attached as Exhibit A. The boundaries of the proposed NEZ are Cobb Park from (USHighway 287) Martin Luther King Jr Freeway service road to Mitchell Boulevard on the North Foard to Eastland to Vaughan to (USHighway 287) Martin Luther King Jr Freeway service road on the South http.//www cfwnet.org/council~acket/Reports/mc~nnt.asp 3/28/2007 Page 2 of 2 (USHighway 287) Martin Luther King Jr Freeway service road to Cobb Park on the East; and Mitchell Boulevard to Wilbarger to Foard Street to the West (Exhibit B) The proposed Berryhill/Mason Heights NEZ has an estimated population of 2,086 and meets the following designation requirements under the City's NEZ policy Has population of less than 6 000 Is 100 percent within the Central City and at least 75 percent of the proposed NEZ area ~is Community Development Block Grant (CDBG) eligible Meets criteria for Reinvestment Zone designation in that the area is reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and would contribute to the economic development of the City Will bring about economic development in the zone and Will promote the rehabilitation of affordable housing in the zone On March 6 2007 the above recommendations were endorsed by City Council through Council Proposal No 262 The FWNERZ Number 34 and the Berryhill/Mason Heights NEZ are located in COUNCIL DISTRICT 8 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 b~ Dale Fisseler (6140) Originating Department Head. Jerome Walker (7537) Additional Information Contact: Sarah Odle (7316) http.//www.cfwnet.org/council~acket/Reports/mc~nnt.asp 3/28/2007 Pro osed Ber hill Mason Hei hts NEZ Exhibit B ~ ~ ' ~' '-~\$ ~'C~{ ~ Proposed Berryhill/ Mason Heights NEZ Boundary .~~. _ ~~ ~_ _ ~... = ~~~~%f~~Tl Existing Park Boundaries :`Y-. ~:. ~' ~J~ {~~ ' ~~~ B re ry C~YRIGHT T WORTH FORT WORTH UNAUTHORIZED IIXJ OLATION FAPPLICABLE © LAWS. THIS GRAPHICAL EMATION THE URACY NAL LAND RVEYOR. ITY T WORTH ITY URACY OF BIDEKER ,SON era ~~ ~~ ~+4 ~n, # ~!I 2000 Census Population* 1 410 Land Area= 601 Acres ~~ *Includes pop from new townhomes ~~-~ ~,-~-.-,-I.~_ ; . . [C~~l~°E°ci ~1~~ ~ ~~l_1..~ ~ ! ~`~~ '1 i i 111~L l~~~~ ~,~~~! t , ~, ~-0' _ ~ ~' I.l,t.~.i`~~.E.~ Z~1 !I~ S~~~lil_~i ~lZ CIIlI ~ ~ 117~~ ll''1~~~ ~~~~_ LS_C ±11.L'J Lr1~II~ [~CI_~1.1 I i-, { THANNISCH ~~~+~ "" r~ ~ BURTON _+ ~ s ~j1 ~~ 1.~ '~1~~LL1_.I LL1.1.LJ~ . ~,~! J W _ ~ Z ~~~ {Ij I~ ~~:ZIy Berry ~~~ ;~i ; ~ I ~ `GRAYSON M~IIII I I I ~i'"~~ Z ' HARDEMAN N ~ W E ~ '• ~.~._.~~C CHILDRESS S ~-r_~~._._ ~, I L I I 1 1 1 m~ ITI-ITT' Map rce: artrnent: EW