HomeMy WebLinkAboutOrdinance 17063-07-2006ORDINANCE NO 17063-07 2006
AN ORDINANCE AMENDING ORDINANCE 15815 BY
REMOVING CERTAIN PROPERTY FROM NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NUMBER
THIRTEEN OF THE CITY OF FORT WORTH, TEXAS,
DESIGNATING THE PROPERTY SO REMOVED AS
`NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE
NUMBER THIRTY 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
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 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 6 2004 the Crty Council adopted Resolution No 3030
designating the Berry/Umversrty Area as a Neighborhood Empowerment Zone (the
`NEZ") and adopted Ordinance No 1 S 815 designating the NEZ as Neighborhood
Empowerment Reinvestment Zone Number Thirteen, City of Fort Worth, Texas and
WHEREAS, Park Ridge Munn Family LP ("Developer") have 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 to develop 406 unit
multi family apartment complex (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 multi family development
project tax abatement on the Improvements, which in 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 13 and to designate a new Neighborhood Empowerment Reinvestment Zone
comprising only the Land (the `Zone ') and
WHEREAS, the City Council hereby finds that the project described herein will
be an important element m the revitalization of the BerrylLTmversrty Area by creating
jobs opportunities and providing housing to low to moderate income individuals that are
not avaLlable m the immediate 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 Developer's causing construction of the Improvements and
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compliance with certain other commitments that will foster economic development nn
the Zone and the Crty m general, and
WHEREAS, on July 18 2006 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 nnterest 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 cnrculation nn the City on July 10 2006 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 heanng; and
WHEREAS, m accordance wrath Sections 312.201(d)(2) and (e), notice of the
Public Hearing was delivered m wrrtmg not later than the seventh day before the date of
the public hearing to the presndnng officer of the governing body of each taxing unit that
includes in its boundaries real property that is to be included nn 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 Heanng and affordnng a reasonable opportunity
for all interested persons to speak and present evidence for or against the creation of the
Zone, the Crty Council hereby makes the following findings of fact:
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1.1 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. 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 multi family development, the Improvements will cause among other
things and without limitation, (i) new employment to occur with the Zone and
(ii) existing business m the area to prosper as a result of increased residential
activity and (iii) housing opportunities to low to moderate income individuals
and families, and
1.4. 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 m the zone that
would be a benefit to the property and that would contribute to the economic
development of the municipalrty• and
1.5. The Improvements are feasible and practical and, once completed, will benefit
the land included m 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 Chapter 312 of the Code.
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Section 2.
REMOVAL OF LAND FROM NEIGHBORHOOD EMPOWERMENT
REINVESTMENT ZONE NO 20
That Ordinance No 15815 is hereby amended by removing the Land, as
described m Exhibit A from Neighborhood Empowerment Reinvestment Zone
Number Ten, City of Fort Worth, Texas.
Section 3
DESIGNATION OF ZONE.
That the Crty Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit A `Neighborhood Empowerment Reinvestment
Zone Number Thirty Crty of Fort Worth, Texas" The project described herein is
eligible for multi family development tax abatement pursuant to Section III (B). 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 Crty 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 jurisdiction,
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 July 18, 2006
APPROVED AS TO FORM AND LEGALITY
By- ~
C a~thia Garcia
Assistant Crty Attorney
Date•
M&C C 21576
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number
Thirty
General Description
The area to be designated as Fort Worth Neighborhood Empowerment
Reinvestment Zone Number Thirty for tax abatement purposes contains 14 768
acres of land and is described below
Situated in the State of Texas the County of Tarrant and the City of Fort Worth
Texas according to the Plat filed in Cabinet A, Slide 11237 being a part of
Block 1 and all of Block 2 3 4 and 5 Park Ridge III Addition to the City of Fort
Worth Volume 388-133 Page 11 and being a part of Lot 1 and all of Lot 2
Block 1 R Park Ridge Addition to the City of Fort Worth Volume 388-111 Page
41 Plat Records Tarrant County Texas situated in the M J Arocha Survey
Abstract No 2 Tarrant County Texas and these premises being more
particularly described as follows
2001 Park Hill Drive; Lot 1 Block 1 Park Ridge IV Addition
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 7/18/2006 Ordinance No 17063-07-2006
DATE Tuesday July 18 2006
LOG NAME 05PARKRIDGE REFERENCE NO C-21576
RECOMMENDATION
It is recommended that the City Council
1 Hold a public hearing concerning the designation of 14 768 acres of land as described in Exhibit
A as Fort Worth Neighborhood Empowerment Rei'nyestment Zone (FWNERZ) Number 30'
2. Adopt the ordinance to designate the area as FWNERZ Number 30 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 Park Ridge Multi-Family L.P are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a property located at 2001 Park Hill Drive in
the Berry/University Neighborhood Empowerment Zone (NEZ) owned by Park Ridge Multi-Family L.P with a
reduction of the 20% set aside for affordable units to 10% as allowed by the NEZ Tax Abatement Policy and
Basic Incentives and
5 Authorize the City Manager to enter into the Tax Abatement Agreement with Park Ridge Multi-Family
L.P for the property located at 2001 Park Hill Drive in the Berry/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
Park Ridge Multi-Family LP is the owner of the property located at 2001 Park Hill Drive The property is
located in the Berry/ University NEZ. Park Ridge Multi-Family L.P applied for afive-year municipal property
tax abatement under the NEZ Tax Abatement Policy and Basic Incentive (M8~C G-14947 as amended)
The Housing Department reviewed the application and certified that the property met the eligibility criteria to
receive 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. Park Ridge Multi-Family L.P will invest, at a minimum
$36 347 300 00 to construct a 406 unit multi-family apartment complex. The project description is attached
as Exhibit `B"
Logname OSPARKRIDGE Page 1 of 3
The NEZ Basic Incentive also includes a requirement that 20% of the total units constructed or rehabilitated
shall be affordable (as defined by the U S Department of Housing and Urgan Development) to persons
with incomes at or below 80% of area median income based on family size City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis After evaluating the overwhelming
conditions of this project including the cost of asbestos removal soil treatment, site clearance and storm
drainage improvements, the developer is requesting Council approval fora 10% set aside for this project.
City staff recommends that City Council designate the 14 768 acre tract (2001 Park Hill Drive) and more
particularly described in the attached Ordinance as FWNERZ Number 30 so that the City can enter into a
tax abatement agreement under the guidelines set forth in the Tax Code and the NEZ Tax Abatement
Policy and Basic Incentive 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 2007 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) on June 1 2006 for the property
as follows
Pre-improvement TAD Value of Improvements $0 00
Pre-improvement Estimated Value of Land $1,854,037.00
Total Pre-improvement Estimated Value $1 854 037 00
The municipal property tax on the improved value of the property is estimated at $196 666 40 per year for a
total of $983 332 00 over afive-year period However this estimate may differ from the actual tax
abatement value which will be calculated based on the TAD appraised 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 Number 30 expires after five years and may be renewed for periods not to exceed
five years This property is located in COUNCIL DISTRICT 9
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• Dale Fisseler (6140)
Originating Department Head Jerome Walker (7537)
Additional Information Contact: Sarah Odle (7316)
Logname OSPARKRIDGE
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