HomeMy WebLinkAboutOrdinance 17480-04-2007ORDINANCE NO 17480-04-2007
AN ORDINANCE AMENDING ORDINANCE 15861 BY
REMOVING CERTAIN PROPERTY FROM NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NUMBER
FOURTEEN OF THE CITY OF FORT WORTH, TEXAS,
DESIGNATING THE PROPERTY SO REMOVED AS
`NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE
NUMBER THIRTY FIVE, 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 Councils adoption on May 17 2005
Resolution No 3207-OS-2005 (M&C G-14802), 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
City and various third parties, as authorized by and m accordance with the Property
Redevelopment and Tax Abatement Act, codified in 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 in Exhibit A of this Ordinance (the `Zone")
through the creation of 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 January 27 2004 the Crty Council adopted Resolution No
3043 designating the West 7~' Street/LTmversity Drive as a Neighborhood
Empowerment Zone (the `NEZ") and adopted Ordinance No 15861 designating the
NEZ as Neighborhood Empowerment Reinvestment Zone Number Fourteen, City of
Fort Worth, Texas and
WHEREAS, Johnson-Seitz Investments, LLC ("Developer") has purchased
certain real property located m the NEZ and that is more particularly described m
Exhibit A of this Ordinance (the 'Land') on which Developer wishes to construct a
one-story professional office building (the `Improvements")• and
WHEREAS, the Code requires that the terms and conditions of tax abatement
agreements covering property located m the same reinvestments zone must be identical,
and
WHEREAS, Developer has requested a 5 year commercial tax abatement on the
Improvements; which m accordance with the NEZ policy is subject to unique terms and
conditions specific to the project; and
WHEREAS, accordingly the City Council hereby finds that is necessary and
desirable to remove the Land from the Neighborhood Empowerment Reinvestment
Zone No 14 and to designate a new Neighborhood Empowerment Reinvestment Zone
comprising only the Land (the `Zone ') and
WHEREAS, the Crty Council hereby finds that the project described herein will
be an important element m the revrtahzation of the West 7~' Street![Jmversity Drive
Area and that the development of the Land and the Zone m the manner described herein
will best occur by means of tax abatement on the Improvements m return for Owner's
causing construction of the Improvements and compliance with certain other
commitments that will foster economic development m the Zone and the City m, and
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WHEREAS, on April 3 2007 the City Council held a public heanng regarding
the creation of the Zone, received information concerning the Improvements proposed
for the Zone and afforded a reasonable opportunity for all interest persons to speak and
present evidence for or against the creation of the Zone ("Public Hearing") as required
by Section 312.201(d) and
WHEREAS, notice of the Public Hearing was published m a newspaper of
general circulation in the Crty on March 23 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, in accordance vv~th Sections 312.201(d)(2) and (e), notice of the
Public Hearing was delivered m wntmg 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 zn 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 opportunity
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:
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1.1. The statements and facts set forth in 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. Without a tax abatement on the Improvements, as requested by Developer
construction of the Improvements would not be financially feasible for
Developer
1.3. As a retail commercial development, the Improvements will cause among other
things and without hmrtation, (i) retention or expansion of pnmary employment,
(ii) attraction of mayor investment m the zone that would be a benefit to the
Zone, and (iii) existing business m the area to prosper as a result of improved
facilities, and
1.4. The Zone meets the cntena for the designation of a reinvestment zone as set forth
in V T C.A., Tax Code, Section 312.202, as amended, in that the area is
reasonably likely as a result of the designation to contribute to the retention or
expansion of pnmary employment or to attract mayor investment m the zone that
would be a benefit to the property and that would contribute to the economic
development of the mumcipahty• and
1.5. The Improvements are feasible and practical and, once completed, will benefit
the land included in the Zone as well as the City for a penod in excess of ten
(10) years, which is the statutory maximum term of any tax abatement
agreement entered into under Chapter 312 of the Code.
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Section 2.
REMOVAL OF LAND FROM NEIGHBORHOOD EMPOWERMENT
REINVESTMENT ZONE NO. 14
That Ordinance No 15861 is hereby amended by removing the Land, as
described m Exhibit A from Neighborhood Empowerment Reinvestment Zone
Number Fourteen, City of Fort Worth, Texas.
Section 3
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described m the boundary
description attached hereto as Exhibit A `Neighborhood Empowerment Reinvestment
Zone Number Thirty five, City of Fort Worth, Texas" The project described herein is
eligible for commercial development tax abatement pursuant to Section IIIC Of the
NEZ Policy
Section 4.
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 5.
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~urisdiction,
the remaining portions, sections or parts of sections of this Ordinance shall be and
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remain m full force and effect and shall not m any way be impaired or affected by such
decision, opinion or~udgment.
Section 6.
IMMEDIATE EFFECT
That this Ordinance shall take effect upon rts adoption.
AND IT IS SO ORDAINED
ADOPTED AND EFFECTIVE April 3, 2007
APPROVED AS TO FORM AND LEGALITY
By~ ;.
~,eann D Guzman U
Assistant Crty Attorney
Date Apri13.2007
M&C C 22045
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number
Thirty Five
General Description
The area to be designated as Fort Worth Neighborhood Empowerment
Remvestment Zone Number Thirty Five for tax abatement purposes
contains 1400 acres of land and is described below
3124 W 5th Street, Block 11 Lot 14 William J Bailey Addition, m the City
of Fort Worth, Tarrant County Texas, according to the Plat thereof
recorded in Volume 310 Page 61 Plat Records of Tarrant County Texas.
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Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 4/3/2007 Ordinance No 17480-04-2007
DATE Tuesday April 03 2007
LOG NAME 05SEITZ REFERENCE NO C-22045
SUBJECT
Adopt Ordinance to Designate Fort Worth Neighborhood Empowerment Reinvestment Zone No 35
and Authorize Entering. into a Tax Abatement Agreement with Johnson-Seitz Investments LLC for
Property Located at 3124 West 5th Street in the West 7th/University Neighborhood Empowerment
Zone
RECOMMENDATION
It is recommended that the City Council
1 Hold a public hearing concerning the designation of 0 1400 acres of land as described in Exhibit A as
Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No 35
2. Adopt the attached ordinance to designate the area as FWNERZ No 35 pursuant to the Texas
Property Redevelopment and Tax Abatement Act, Tax Code Chapter 312
3 Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the
Agreement) with Johnson-Seitz Investments, LLC are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a property located at 3124 West 5th Street
in the West 7th/University Neighborhood Empowerment Zone (NEZ) owned by Johnson-Seitz Investments
LLC and
5 Authorize the City Manager to enter into the Tax Abatement Agreement with Johnson-Seitz
Investments, LLC for the property located at 3124 West 5th Street Street in the West 7th/University NEZ in
accordance with the NEZ Tax Abatement Policy and NEZ Basic Incentives, as amended
DISCUSSION
Chapter 378 of the Texas Local Government Code provides that a municipality can offer an abatement of
municipal property taxes for properties located in a Neighborhood Empowerment Zone
Johnson-Seitz Investments LLC is the owner of the property located at 3124 West 5th Street, further
described in Exhibit A The property is located in the West 7th/University NEZ. Johnson-Seitz
Investments, LLC applied for afive-year municipal property tax abatement under the NEZ Tax Abatement
Policy and Basic Incentive (M&C G-14947 as amended) The Housing Department reviewed the
application and certified that the property met the eligibility criteria to receive a NEZ municipal property tax
abatement. The NEZ Basic Incentive includes afive-year municipal property tax abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation within the
NEZ. Johnson-Seitz Investments, LLC will invest, at a minimum $360 831 00 to build an interior design
office The project is further described in Exhibit B"
City staff recommends that City Council designate the 0 1400 acres of land (3124 West 5th Street) and
more particularly described in the attached ordinance as FWNERZ No 35 so that the City can enter into a
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tax abatement agreement under the guidelines set forth in the Tax Code and the NEZ Tax Abatement
Policy and Basic Incentives The form of the tax abatement agreement is attached as Exhibit 'C"
TAX ABATEMENT TERMS
Upon execution of the agreement, the total assessed value of the improvement used for calculating
municipal property tax will be frozen for a period of five years starting on January 1 2008 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1 2007 for the
property as follows.
Pre-Improvement TAD Value of Improvements
Pre-Improvement Estimated Value of Land
Total Pre-Improvement Estimated Value
$0 00
$24,400.00
$24 400 00
The municipal property tax on the improved value of the property is estimated at $2,172.00 per year for a
total of $10 860 00 over afive-year period However this estimate may differ from the actual tax
abatement value which will be calculated based on the TAD appraisal value of the property
In the event of a sale of the property the agreement may be assigned with City Council approval to the
new owner(s) so long as the new owner(s) meets all of the eligibility criteria as stated in the NEZ Tax
Abatement Policy and Basic Incentives
As required by Chapter 312 of the Texas Tax Code a public hearing must be conducted regarding the
creation of the Zone Notice of this hearing was (1) delivered to the governing body of each affected taxing
unit and (2) published in a newspaper of general circulation at least seven days prior to this hearing
The proposed area meets the criteria for the designation of a reinvestment zone contained in Chapter 312
of the Tax Code As a result of the designation the area will contribute to the retention or expansion of
primary employment and attract major investment in the zone that would be a benefit to the property and
contribute to the economic development of the municipality Further future improvements in the zone will
benefit the City after any Tax Abatement Agreements that may be entered into have expired
The proposed FWNERZ No 35 expires after five years and may be renewed for periods not to exceed five
years.
This property is 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/AccountlCenters
Submitted for City Manager's Office ~ Dale Fisseler (6140)
Originating Department Head Jerome Walker (7537)
Additional Information Contact: Sarah Odle (7316)
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