HomeMy WebLinkAboutContract 46639 r .
CITY SECRETAKIf
CONTRACT N0.—4�to
TAX ABATEMENT AGREE A4 FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
321 East Central Avenue
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 David
Cooke, its duly authorized City Manager, and Jose Carmen Maldonado ("Owner") of property
located at 321 E. Central Avenue, Lots 23 and 24, Block 56, North Fort Worth Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in
Volume 63, Page 149, Plat Records, Tarrant County Texas.
The City Council of the City of Fort Worth("City Council") hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
neighborhood empowerment zone 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 neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31, 2001, the City Council adopted basic incentives for property owners
who own property located in a Neighborhood Empowerment Zone, 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
"Neighborhood Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"), these were
MM readopted on May 6, 2014 (Resolution No. 4319).
M
M 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
n Tax Code, as amended (the "Code").
0
E. On December 7, 2010, the Fort Worth City Council adopted Ordinance No. 19464
(the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 39" City
of Fort Worth, Texas (the "Zone") and adopted Resolution No.3948 establishin "Designation o
Northside Area as a Neighborhood Empowerment Zone" (the "NEZ"). OFFICIAL RINCORP
Page 1 of 13 CITY SECRETARY
NEZ Tax Abatement with Jose Carmen Maldonado FT. WORTH,TX
Approved by M&C C-27200, February 17, 2015
F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit"I", attached hereto and hereby made a part of this Agreement for
all purposes (the "Premises").
G. Owner or its assigns plan to redevelop existing buildings for restaurant, retail and
office use, more particularly described in Section 1.1 of this Agreement, on the Premises (the
"Project").
H. On September 19, 2014 Owner submitted an application for tax abatement to the
City concerning the Premises (the "Application'), attached hereto as Exhibit"2" and hereby made
a part of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging development of the
Zone in accordance with the purposes for its creation and are in compliance with the NEZ
Incentives, the Ordinance and other applicable laws, ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, along with a copy
of this Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing units in which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
An interior and exterior remodel of (i) an existing commercial building of
approximately 4,700 square feet in total; and (ii) having a construction cost upon
completion of$41,800.00 including site development costs but such minimum construction
costs shall be reduced by any construction cost saving (collectively, the "Required
Improvements"). The type, number and location of the Required Improvements are
described in Exhibit "3". Tarrant Appraisal District must appraise the property
(improvements and land) at a minimum, within 10% of$41,800.00. Owner shall provide a
copy of the final construction invoices to City once the construction is complete; the
construction invoices shall be a part of this Agreement and shall be labeled Exhibit "4".
Minor variations, and more substantial variations if approved in writing by both 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"3".
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
1.2. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by
February 18, 2017, (the "Completion Deadline"). The abatement will automatically
terminate two years after Council approval if the Required Improvements are not complete.
The Required Improvements shall be deemed complete upon the issuance of a final
certificate of occupancy for the Required Improvements by the Planning and Development
Department. If the Owner fails to expend at least Forty One Thousand, Eight Hundred
Dollars ($41,800.00) in Construction Costs for the Required Improvements by the
Completion Deadline as provided in Section 1.1 of this agreement; the City shall have the
right to terminate this Agreement by providing written notice to the Owner without further
obligation to the Owner hereafter.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be redeveloped and the
Premises shall be continuously used for a worship/meeting center in accordance with the
description of the Project set forth in the Exhibit "3". In addition, Owner covenants that
throughout the Term, the Required Improvements shall be operated and maintained for
the purposes set forth in this Agreement and in a manner that is consistent with the
general purposes of encouraging development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner 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 Required Improvements over their values as
determined by TAD on March 23, 2015, and this amount is $66,180.00 the year in
which this Agreement was entered into:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that
such minimum construction costs shall be reduced by construction cost savings,
Owner shall not be eligible to receive any Abatement under this Agreement.
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
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, nor shall the abatement apply to mineral interests.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the
Required Improvements over its value on March 23, 2015, up to a maximum of
$62,700.00. In other words, by way of example only, if the increase in value of the
Required Improvements over its value on March 23, 2015, in a given year is $63,000.00,
Owner's Abatement for that tax year shall be capped and calculated as if the appraised
value of the Required Improvements for that year had only been$62,700.00.
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. Term.
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which a final certificate of occupancy is issued for the
Required Improvements ("Beginning Date") and, unless sooner terminated as herein
provided, shall end on December 31 immediately preceding the fifth (5th) anniversary of
the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application
fee of one half of one percent (.5%) of Project's estimated.cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS, AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term and for
five (5) years after termination ("Compliance Auditing Term"), at any time during
normal office hours throughout the Term and the year following the Term and following
reasonable notice to Owner, the City shall have and Owner shall provide access to the
Premises in order for the City to inspect the Premises and evaluate the Required
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
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. Audits.
The City shall have the right to audit at the City's expense the financial and
business records of Owner that relate to the Project and Abatement terms and conditions
(collectively, the "Records") at any time during the Compliance Auditing Term in order
to determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to Owner. Owner shall make all applicable Records available to the
City on the Premises or at another location in the City following reasonable advance
notice by the City and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before April 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. This information shall
include, but not be limited to, the number and dollar amounts of all construction contracts
and subcontracts awarded on the Project.
Failure to provide all information within the control of Owner required by this Section
3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the
City shall make a decision and rule on the actual annual percentage of Abatement
available to Owner for the following year of the Term and shall notify Owner of such
decision and ruling. The actual percentage of the Abatement granted for a given year of
the Term is therefore based upon Owner's compliance with the terms and conditions of
this Agreement during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(i)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad
valorem real property taxes with respect to the Premises or the 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) OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF
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NEZ Tax Abatement with Jose Carmen Maldonado
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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 sixty (60) calendar days from the date of receipt of this written
notice to fully cure or have cured the Event of Default. If Owner reasonably believes that
Owner will require additional time to cure the Event of Default, Owner shall promptly
notify the City in writing, in which case (i) after advising the City Council in an open
meeting of Owner's efforts and intent to cure, Owner shall have one hundred twenty (120)
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 twenty (120) 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 there from are speculative
in nature and will be difficult or impossible to ascertain. Therefore, upon termination of
this Agreement for any Event of Default, Owner shall 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.
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the
Premises or the anticipated Required Improvements are no longer appropriate or feasible,
or that a higher or better use is preferable, the City and Owner may terminate this
Agreement in a written format that is signed by both parties. In this event, (i) if the Term
has commenced, the Term shall expire as of the effective date of the termination of this
Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii)
neither party shall have any further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Package Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Company may assign this Agreement and all or any portion of the benefits
provided hereunder to an Affiliate without the consent of the City, provided that (i) prior
to or contemporaneously with the effectiveness of such assignment, Company provides
the City with written notice of such assignment, which notice shall include the name of
the Affiliate and a contact name, address and telephone number, and (ii) the Affiliate
agrees in writing to assume all terms and conditions of Company under this Agreement.
For purposes of this Agreement, an "Affiliate" means all entities, incorporated or
otherwise, under common control with Company, controlled by Company or controlling
Company. For purposes of this definition, "control" means fifty percent (50%) or more of
the ownership determined by either value or vote. Company may not otherwise assign
this Agreement or any of the benefits provided hereunder to another party without the
consent of the City Council, which consent shall not unreasonably be withheld or
delayed, 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
assignee agrees in writing to assume all terms and conditions of Company 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.
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
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 Jose Carmen Maldonado
Attn: City Manager 2020 Tam O Shanter Dr.
1000 Throckmorton Street Fort Worth, Texas 76111
Fort Worth, TX 76102
and
Neighborhood Services Department
Attn: Cynthia Garcia, Acting Director
1000 Throckmorton Street
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 "3",
the body of this Agreement shall control. As of February 17, 2015, the City is unaware of
any conflicts between this Agreement and the City's zoning ordinance or other
ordinances or regulations.
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
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 Mayor and
Council Communication No. C-27200 on February 17, 2015, 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. 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.
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
CITY OF FORT WORTH:
By: L.�� By:��C
Fernando Costa Jose Carmen Maldonado
Assistant City Manager
ATTEST:
By:
Mary kayserovScileTarp
APPROVED AS TO FORM AND LEG
000o0o° - 0
:�Y& � � O8 °�
Melinda Ramos �$ S�
Sr. Assistant City Attorney
�OOOoocoo o°°
TEXP
M & C: C-27200
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
Page 1 I of 13
NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando
Costa, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known
to me to be the person and officer whose name is subscribed to the foregoing instrument, and
acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a
municipal corporation, that he was duly authorized to perform the same by appropriate resolution
of the City Council of the City of Fort Worth and that he executed the same as the act of the said
City for the purposes and consideration therein expressed and in the capacity therein stated.
GIV N UNDER MY HAND AND SEAL OF OFFICE this IV day of
2015.
Notary Public iA and f
TRIKINYA L. JOHNSON
__° �`� Notory Public,state of texas
the State Of Texas ` My Commission Expires
April 17, 2018
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Jose Carmen
Maldonado, 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, and in the capacity therein stated.
GIVET4 R MY HAND AND SEAL OF OFFICE this f�J ' day of
2015.
Notary Public in and f
The State of Texas = = SARM I ODLE
" •'` MY COMMISSION EXPIRES
j�V November 5,2015
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Project description including kind, number, and location of the proposed
improvements.
Exhibit 4: Final Construction Invoices
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
7.10. Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and Owner, their assigns and successors in interest, as to the matters
contained herein. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent in conflict with any provision of this Agreement.
This Agreement shall not be amended unless executed in writing by both parties and
approved by the City Council. This Agreement may be executed in multiple counterparts,
each of which shall be considered an original, but all of which shall constitute one
instrument.
(THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK)
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NEZ Tax Abatement with Jose Carmen Maldonado
Approved by M&C C-27200, February 17, 2015
Exhibit 1
Property Description
321 E. Central Avenue, Lots 23 and 24, Block 56, North Fort Worth Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded
in Volume 63, Page 149, Plat Records, Tarrant County Texas
Exhibit 2
FORT WORTH Application No. 1
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
I. APPLICATION CHECK LIST - Please submit the following documentation:
❑ A completed application form
❑ A list of all properties owned by the applicant,owner,developer,associates,principals,partners,and agents
in the City Fort Worth
❑ Non Refundable Application fee—For all Basic Incentives applications excluding Tax Abatement the
application fee is$25.00.For multifamily,commercial,industrial,commercial facilities,and mixed-use tax
abatement applications:0.5%of the total Capital Investment of the project,with a$200,00 minimum and
not to exceed$2,000.00;For residential tax abatement applications:$100.00 per house.
❑ Proof of ownership,such as a warranty deed,affidavit of heirship,or a probated will OR evidence of site
control,such as option to buy(A registered warranty deed is required for tax abatement application.)
❑ Title abstract of the property(only if applying for release of City liens)
❑ A reduced 11x17 floor plan,site plan,and site elevation with
a written detailed project description that includes a construction time line
❑ A detailed line item budget showing the cost breakdown for the project
❑ Copy of Incorporation Papers noting all principals,partners,and agents if applicable
❑ Required-Meet with the Councilmember and Neighborhood&other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6,2004 or
followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED
DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE
APPLICATION IS RECEIVED.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. 1T TAKES 60 TO 90
BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED,OR WITHIN THE 12 MONTH PERIOD THAT THE'TAX ABATEMENT WAS APPROVED,OR YOU
WILL BE REQUIRED TO RE-APPLY FOR NEZ INCENTIVES.
U. APPLICANT/AGENT INFORMATION
1. Applicant: ! 2. Contact Person: �? �� 1 � f )L h ca• �`
3. Address: -pdo ? `7
Street City State Zip
0
4. Phone no.: �`�z 5. Fax No.,, Z l` 5
6. Email:
7. Agent(if any)
8. Address:
Street City State Zip
9. Phone no.: 10, Fax No.:
11. Email:
Revised July 12,2011 I
ZIP
FoRr'WoRT Application No.
PROJECT ELIGIBILITY
1. Please list down the addresses and legal descriptions of the project and other properties your
organization owns in Fort Worth. Attach metes and bounds description if no address or legal
description is available. Attach a map showing the location of the project.
Table 1 Property Ownershi
Address Zip Code
Pro'ect Location Subdivision NameLot No. Block No.
t?eti ra 4V 74 16 Nor j''ta 5 b
Other properties owned in the City of Fort Worth -continue on a separate sheet and attach if necessary.
- --- ---
"a 1 I L1
2. For each property listed in Table 1,please check the boxes below to indicate i$
• there are taxes past due,or
• there are City liens;or
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission's Order of Demolition where the property was demolished within the last five
years.
Table 2 Proper Taxes and City Liens
Property City Liens on Property
Address Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens 9tuctore Liens Liens Liens Demolition
i
Li
Li Li
El El
(Please attach additional sheets of paper as needed.)
If there are taxes due or liens against any property in the City of Fort Worth you may not be eligible
for NEZ incentives
Revised July 12,2011 2
i
FORT WORTH
Application No. ,V z 1
3 Do you own other properties under other names? ❑Yes❑�No I
• Y P P +
If Yes,please specify
4. Does the proposed project conform with City of Fort Worth Zoning? Yes ❑No
If no,what steps are being taken to insure compliance?
5. Project ❑ ❑ ❑ ❑ ❑
Type-, Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
❑Owner Occupied
❑Rentrl Property
6. Please describe the proposed residential or commercial project: &ddz
I
7. If your project is a commercial,industrial,or mixed-use project,please describe the types of j
businesses that are being proposed:
8, Is this a new construction or rehab project? ❑New Construction Rehab
9. How much is the total development cost of your project? !
10. Will the eligible rehabilitation work" equal to at least 30% of the Tarra0 Appraisal District (TAD)
assessed value of the structure during the year rehabilitation occurs? Yes ❑Na
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chaff n-link or solid material construction;personal property such as furniture,
i
appliances,equipment,and/or supplies.Total eligible rehabilitation costs shall equal to or exceed 30%of the
TAD appraised value of the structure during the year rehabilitation o urs_
11, How much is the total square footage of your project? �U square feet
�1If lv>aa 1 It4�I#:"t':3 .1 ives
12.For a single-family homeownership, mixed-use, or multi-family development project, please fill out
the number of residential units based on income range of owners or renters in the following table.
Table 3 Number of Residential Units and Income Range of Owners or Renters
Dumber gf Utrt t r� � _ l?ercoittage
Income Rangy=e' s
> 80% of AMFI**
At or below 80%of AMFI
Tafal Units W."_V
•*AMFI:Area Median Family Income. Please see attachment for income and housing payment guidelines,
13. For a multifamily project to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80% of AMFI. Check the box if you are requesting a waiver of this
requirement, ❑
14. For a commercial, industrial or community facilities project, indicate square footage of non-
residential space.
,.,
tl ? `K
COttir]te�Clglk !e J Irilrl�l �j :J� 9LT13 ? Vll
square feet square feet square feet
Revised July l2,2011 ]
2� - 015
FORTWORTH ApplicationNo,
15. How much will be your Capital Investment*** on the project? Please use the following table to provide
the details and amount of your Capital Investment(Attached additional sheets if necessary).
Table 4 Itemized Bud et of the Project
77 7-
"'A
I k
***Capital Investment includes only real property improvements such as new facilities and structures,site improvements,facility
expansion, and facility modernization. Capital Investment DOES NOT include land acquisition costs and/or any existing
improvements,or personal property(such as machinery.,equipment,and/or supplies or inventory).
16. For a commercial,industrial, community facility or mixed-use project, how many employees will the
project generate?
17. For a mixed-use prolect,please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses In a Mixed-Use Project
7
s- eirce
Residential
Office
Eating
Entertainment
Retail sales
Service
M. INCENTIVES What incentives are you applying for?
Municipal Property Tax Abatements
Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
t5 years C]More than 5 years
[]Residential owner occupied DResidential Rental Property []Apartments(5 plus units)9SCommercial
Development Fee Waivers
El All building permit related fees(including Plans Review and Inspections)
El Plat application fee(including concept plan,preliminary plat,final plat,short form replat)
[I Zoning application fee E] Board of Adjustment application fee
0 Pen"olition fee El Structure moving fee
Lk'*'Community Facilities Agreement(CFA)application fee
❑ Street and utility easement vacation application fee
Impact Fee Widyers -The maximum watertwastewater Impact fee waiver amount for a commercial, industrial,mixed-
use,or community facility development project is equivalent to the water/wastewater Impact fee of two 6-Inch meters
❑ Water (Meter Size (No,of meters El Transportation
Release of City Lien
❑ Weed liens ❑Paving liens 0 Board up/open structure liens E]Demolition liens
Revised July 12,2011 4
FORT WORTH Application No. z-�tet"—(X1 4
III. ACKNOWLEDGMENTS
1 hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby
acknowledge that i have received a copy of NEZ Basic Incentives,which governs the granting of tax abatements,fee
waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible in obtaining required permits and inspections from the City and in
ensuring the project is located in the correct zoning district.
I understand that my application will not be processed if it is incomplete. I agree to provide any additional
information for determining eligibility as requested by the City.
J
(PRINTED OR TYPED NAME) (AUTHORIZED SIGNATURE) (DATE)
Pleaae mail or far,your'a 6h to
City of Foxf Worth Plannmg end DeYe(apmea t Itepartattett
1f10DTproekm0rtonStreet,FortV rxh,fietcas7tll)3l
f Tel.'(91 392-2222;
Electronic version of this form is available on our website. For more information on the NEZ Program,please visit
our web site at www.fortvvorthgov.org/planninganddevelopment
For Office Use Only
Application No, In which NEZ? Council District
Application Completed Date(Received Date): Conform with Zoning? ❑Yes ❑No
Type? ❑ SF ❑Multifamily ❑Commercial ❑ Industrial ❑Community facilities ❑Mixed-Use
Construction completion date? ❑Before NEZ❑After NEZ Ownership/Site Control ❑ Yas❑No
TAD Account No. Consistent with the NEZ plan? ❑Yes ❑No
Meet affordability test? ❑Yes ❑No Minimum Capital investment? ❑Yes ❑No
Rehab at or higher than 30%? ❑Yes ❑No Meet mixed-use definition? ❑Yes ❑No
Tax current on this property? ❑Yes ❑No Tax current on other properties? ❑Yes ❑No
City liens on this property? City liens on other properties?
• Weed liens ❑Yes ❑No • Weed liens ❑Yes ❑No
• Board-up/open structure liens ❑Yes ❑No • Board-up/open structure liens ❑Yes ❑No
• Demolition liens ❑ Yes ❑No • Demolition liens ❑Yes ❑No
• Paving liens ❑Yes ❑No • Paving liens ❑Yes ❑No
• Order of demolition ❑Yes ❑No • Order of demolition ❑Yes ❑No
Certified? ❑Yes ❑No Certified by Date certification issued?
If not certified,reason
Referred co: ❑Economic Development ❑Housing ❑Development ❑Water ❑Code ❑TPW
Revised July 12,2011 5
Exhibit 3
Proiect Description
Interior and exterior remodel consisting of the following:
• Roof repair/replacement
• Plumbing repair/upgrade
• Electrical repair/upgrade
• Flooring replacement
• Kitchen remodel
• Bathroom remodel
• Interior wall repair/replacement
• Foundation repair
• Heating/Air replacement
• Exterior paint/siding replacement
Exhibit 4
Final Construction Invoices
Will be provided to City after construction is complete and final Certificate of
Occupancy is issued.
Official
CITY COUNCIL AGENDA Fo_�r�H
COUNCIL ACTION: Approved on 2/17/2015
DATE: 2/17/2015 REFERENCE C-27200 LOG NAME: 17NEZ321 ECENTRAL
NO..
NOW PUBLIC
CODE: C TYPE: CONSENT HEARING: NO
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Jose Carmen
Maldonado to Redevelop an Existing Building for Use as a Worship Center Located at
321 East Central Avenue in the Northside Neighborhood Empowerment Zone (COUNCIL
DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement
Agreement with Jose Carmen Maldonado to redevelop an existing building for use as a worship
center located at 321 East Central Avenue in the Northside Neighborhood Empowerment Zone, in
accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Jose Carmen Maldonado (Property Owner), is the owner of the property described as Lot 23 and 24,
Block 56, North Fort Worth Addition, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the Plat recorded in Volume 63, Page 149, Plat Records, Tarrant County Texas, 321
East Central Avenue, Fort Worth, Texas. The property is located within the Northside Neighborhood
Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$41,800.00 to redevelop the existing
building for use as a worship center (Project). The Housing and Economic Development Department
reviewed the application and certified that the Project met the eligibility criteria to receive a Municipal
Property Tax Abatement. The NEZ Tax Abatement Policy and Basic Incentives includes a five-year
municipal property tax abatement on the increased value of improvements to the qualified owner of
any new construction or rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for a period of five years starting January 2016 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) after re-evaluation in April
2015.
The municipal property tax abatement on the improved value of the Project after construction is
estimated in the amount of$357.39 per year for a total in the amount of$1,786.95 over the five-year
period. However, this estimate may differ from the actual tax abatement value, which will be
calculated based on the Tarrant Appraisal District appraised value of the property.
The Tax Abatement Agreement may be assigned to an affiliate of the Property Owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that the new owner meets
all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 2, Mapsco 62L.
Pada 1 of 7
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on
City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
321 E Central Map.pdf
321 E. Central.pdf