HomeMy WebLinkAboutContract 46933 MY SECRk
CONTRACT NO.
TAX;rABA'7 iL4ENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
2704 Virginia Court
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 Joel Russell, ("Owner"), owner of property located at 2704 Virginia
Court, Block 1, Lot 8, Jarrell Oakhurst Addition, an addition to the City of Fort Worth, Tarrant
County, Texas, as shown by a Deed of Record recorded in Volume 7257, Page 1022, of the Deed
Records of 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 (NEZ) if the municipality determines that the creation of the zone
would promote:
(1) The creation of affordable housing, including manufactured housing in the zone;
(2) An increase in economic development in the zone;
(3) An increase in the quality of social services, education, or public safety provided
to residents of the zone; or
(4) The rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a NEZ, may enter into agreements abating municipal property taxes on property in the zone.
C. On July 31, 2001, the City 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 readopted on May 19,
2015 (Resolution No. 4455).
D. The NEZ Incentives contain appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
Code, as amended ("Code").
E. On April 5, 2011, the City Council adopted Ordinance No. 19641 ("Ordinance")
establishing "Neighborhood Empowerment Reinvestment Zone No. 38," City of Fort Worth, Texas
("Zone") p stablishing "Qej, ation of Six Points Area as a
Zone and adopted Resolution No. 3981 F
Neighborhood Empowerment Zone" ("NEZ'
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NEZ Tax Abatement .........with Joel Russell
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F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit "1", attached hereto and hereby made a part of this Agreement for all
purposes (the "Premises").
G. Owner or its assigns plan to rehabilitate the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises to be used as a single-family residence that will be
used as rental property.
H. On June 22, 2015, Owner submitted a complete application for NEZ incentives and for
tax abatement to the City concerning the contemplated use of the Premises (the "Application"),
attached hereto as Exhibit"2" and hereby made a part of this Agreement for all purposes.
I. The City Council finds that the contemplated use of the Premises, the Required
Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with
encouraging development of the Zone in accordance with the purposes for its creation and are in
compliance with the NEZ Incentives, the 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.
Owner shall repair/remodel a Single-Family Dwelling, (collectively, the "Required
Improvements"), the kind and type of remodel are more particularly described in Exhibit
"Y. Minor variations 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 Required Improvements are in the manner described in
Exhibit "Y'. Tarrant Appraisal District must appraise the property (improvements and land)
within 10% of$50,400.00.
1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed within two years
from the date of Council approval. The abatement will automatically terminate two years after
Council approval if the project is not complete, unless delayed because of force majeure, in
which case the two years shall be extended by the number of days comprising the specific
force majeure. For purposes of this Agreement, force majeure shall mean an event beyond
Owner's reasonable control as determined by the City of Fort Werth in its sole discretion,
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which shall not be unreasonably withheld, including, without limitation, delays caused by
adverse weather, delays in receipt of any required permits or approvals from any
governmental authority, acts of God, or fires. Force majeure shall not include construction
delays caused due to purely financial matters, such as, without limitation, delays in the
obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be rehabilitated/remodeled
and the Premises shall be used as rental property 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 a real
property tax abatement of City of Fort Worth imposed taxes on the Premises for the Required
Improvements, as specifically provided in this Section 2 ("Abatement"). Abatement does not include
taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based
upon the increase in value of the Premises due to the Required Improvements, over its value
as determined by TAD on August 12, 2015, for the existing improvements and this amount
is $44,750.00.
If the appraised value of the Required Improvements are less than as provided in
Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under
this Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of the
Required Improvements and shall apply only to taxes on the increase in value of the
Premises due to construction of the Required Improvements. The Abatement shall not apply
to taxes on the land, nor shall the abatement apply to mineral interests.
2.3. Term of Abatement.
The term of the Abatement ("Term") shall begin on January 1 of the year following
the calendar year in which the Required Improvement is completed by final inspection
("Beginning ate") and, unless sooner terminated as herein provided, shall end on
December 31 immediately preceding the fifth (5th) anniversary of the Beginning Date.
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2.4 Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments of
the Premises and/or improvements thereon.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of
$100.00. The application fee shall not be credited or refunded to Owner or its assigns for
any reason.
3. RECORDS,AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the 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
Improvements to ensure compliance with the terms and conditions of this Agreement.
Owner shall cooperate fully with the City during any such inspection and/or evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable
term of this Agreement. The City shall have the right to audit at the City's expense the
Required Improvement with respects to the specifications listed in Exhibit "Y'. Owner must
provide documentation that Owner is using the Required Improvements as their primary
residence (collectively, the "Records") at any time during the Compliance Auditing Term in
order to determine compliance with this Agreement. 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 March 1 following the end of every year during the Compliance Auditing
Term and at any other time if requested by the City, Owner shall provide information and
documentation for the previous year that addresses Owner's compliance with each of the
terms and conditions of this Agreement for that calendar year.
Failure to provide all information within the control of Owner required by this
Section 3.3 shall constitute an Event of Default, as defined in Section 4.1.
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3.4 Determination of CqMliance.
On or before August I of each year during the Compliance Auditing Tenn, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the 'rerm and shall notify Owner of such decision and rutirig.
The actual percentage of the Abatement granted for a given year of the Tenn is therefore
based upon (:.) aer's compliance with the terms and conditions of this Agreement, during the
previous year of the Coinpliance Auditing 1'en-n.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless othenvise specified herein, Owner shall be in default of this Agreement if(i)
Owner fails to construct the Required Improvenients as defined in Section 1.L; (ii) ad valorem.
real property taxes with respect to the Premises or the Required Improvemelats, 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; (iii)
OWN]Ft'R DOES NOT USE THE PREMISES AS RENTAL PROPERTY ONCE THE
ABATEMENT BEGINS; or (iv) OWNER DOES NOT COMPLY WITH CHAPTER 7
AND APPENDIX B OF THE CODE OF ORDINANCES 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 I.,"vent 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, O tiers all 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 ruinety (90) calendar days from the
original. date of receipt of the written. notice, or (ii) if O-Amer reasonably betieves that Owner
will require more than ninety (90) days to cure the Fvent of Default, after advising the City
Council in an open meeting of 0wmaer's efforts and intent to cure, such additional. time, if
any, as may be offered by the City Council in its sole disc�retion.
4.3. Termination for Event of Default and Payment of Liguidated Dam
If an Event of Default which is defined in Section 4.1 has not been cured within the
time frarrie specifically allowed under Section 4.2, the City shall have the right to terminate
this Agreement irninediately. 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 a. gees that the amounts of actual darnages there from are speculative in nature and
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will be difficult or impossible to ascertain,, Therefore, upon termination of this AW! eenwnt
.for any Event of Default, Owner shall pay the City, as liquidated darns&
ws; all taxes that
were abated in accordance with. this Agreernent for each year when an Event of Del.aull
existed and which otherwise would have been paid to the City in the absence of this
Agreenient. The City and Owner agree that this arnount. is a reasonable apprOxirriation 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 coinperisation for actual dawn ages and is
not a penalty. This arnount may be recovered by the City through adjustnients made to
Owner's ad valoreni.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 arnount is not paid to the City within sixty (60) days following the
eftective date of terniination of this Agreernieni, Owner shall also be liable for all penalties
and interest on any ou(standing arnount at the statutory rate for delinquent taxes, as
determined by the Code at the time of the payrnent f'such perialties and interest (currently:,
Section 33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the developnient or use of the Premises
or the anticipated Required Iniprovements are no longer appropriate or feasible, or that a
higher or better use is preferable, the City and Owier may teri-ninate this Agreernent in a
written forniat that is sip,ied by both parties. In this event, (i) if the Term has covarnenced,the
Tenn shall expire as of the ellective date of the tennination of this Agreement; (ii) there shall
be no recapture of any taxes previously abated; and (iii) neither party shall have any ffirther
rights or obligations hereunder.
4.5 S.
a. Owner understands and agrees that the City has the right to terminate this
agreernent if the Required linprovernents contains or will contain a sexually oriented
business.
b. Owner understands and agrees that the (.1ity has the right to tenninate this
aA e
!reetnent as deter in City's sole discr tion if the Required Improverrients contains or
will contain a liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
F'Acept for an assiginnent to Ow.ier's first mortgagee or to an owner who will use the Required
Irnprovern.ents as rental. property or the homeowner's .mortgagee which City Council heret)y agrees to,
the Abatement granted hereunder shall vest only in Owner; however if weer sells the Premises and
Required Improvements, flus Almternent cannot be assigDed to a new owner of all or any portion of the
Preinises ariol/or Iteqt,jired Improvements withoul the prior consent of the City (','ouncil, which consent
shall not be unreasonably withheld provided that(i) the City Council finds that the proposed assignee is
financially capable of meeting the terrns and conditions of this Agreernent and (H) the proposed
purchaser agrees in writing to assn all terins and condilknis of Owner under this Agreeinent. Ownet-
may not otherwise assign, lease or convey any of its rights under this Agreement. Any attenipted.
assignsnent without the Council's prior consent shall constitute grounds for tennination of this
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Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written
notice from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as rental property or the homeowner's mortgagee, Owner shall have no further
obligations or duties under this Agreement. In addition, upon assignment to any other entity
with the written consent of City Council, Owner shall have no further duty or obligation under
this Agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE
EVENT OF A SALE OR ASSIGNMENT.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF
THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS
AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF
OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE
AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED
ASSIGNMENT MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND
DELIVERY.
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: and Owner:
City of Fort Worth Neighborhood Services Dept. Joel Russell
Attn: City Manager's Office Attn: Director 3000 S. Adams St.
1000 Throckmorton 1000 Throckmorton Ft. Worth, TX 76110
Fort Worth, Texas 76102 Fort Worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to the 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.
NEZ Tax Abatement with Joel Russell
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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 "Y', the body of this
Agreement shall control.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Premises and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and
Council Communication No. C-27407 on August 4, 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,
if requested, will be addressed to the Owner, and 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.
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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.
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.
CITY OF FORT 'WORTH: OW ;---
By. _ __. _ By Fernando Costa Costa tissell.
Assistant City Manager .
ATTES" .. .. __
Mary K e
City Secretary y "
APPROVED AS TO FORM AND LEGALITY:
By:
Melinda Ramos
Sr. Assistant City Attorney m .,..., r ..,.... ..q. ,,..,,, .,. ,o.m...o.
M & C: C-27407 OFFIC`�� L RLE'CC ORD
Ci i'"Y SECRE VIAR"
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STATE OF TEXAS §
COUNTY OF TAIL NT §
BEFORE Mf.,,, the undersi&med authority, on this day persona].1y appeared Fernando Costa,
Assistant City Manager of the CITY OF FORTWOWIH, a mumcipal 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 OFF T` WORTH, "I'FIXAS, 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 114 day of
2 015.
t, Public in and for
UNDA M,HRRUMER
My COMMISSION EXPIRES
the State of T exas
R*MqZ 2018
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the widersigned authority, on this day personally appeared Joel Russell, known to
me to be the person whose name is subscribed to the -foregoing instrument, and acknowledged to me
that she executed the same for the purposes and consideration therein expressed, in the capacity
therein stated.
GIVEN tINDER MY HAND AND SEAL OF OFFICE this day of
. ...... ,201
d
tNotar-T ublic in and r
u
the State of�1("ex _3
he State of Texaus SARAH J.ODLE
G MY COMM COMMSSION EXPIRES
Novei
November 5,2015
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Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description including kind, number and location of the
proposed improvements.
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Exhibit 1
Property Descri tP ion
2704 Virginia Court, Block 1, Lot 8, Jarrell Oakhurst Addition, an addition to the City of Fort
Worth, Tarrant County, Texas, as shown by a Deed of Record recorded in Volume 7257, Page
1022, of the Deed Records of Tarrant County Texas.
Exh.i.bit 2
..............
FORT WORTH Application No. " 0!�101
'CITY OF FORT WORTH
NFeIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
1. APPLICATION CHECK LIST - Please submit the following documentation:
A completed application for
A list of all properties owned by the applicant,owner,developer,associates,principals, partners,and agents
in the Citv Fort Worth
Non Refundable Application fee—For all Basic Incentives applications excluding Tax Abatement the
application fee is$25.00.For multifamily,commercial,industrial,community facilities,and mixed-use tax
abatement applications: 0.5%of the to Capital Investment oft e 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.)
Tide abstract of the property(only if applying for release of City liens)
A reduced I I x1 7 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 February 5,2014 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 OF THE DATE OF
APPLICATION.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT 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 TBE TAX ABATEMENT WAS APPROVED, OR YOU
WILL BE REQUIRED TO RE-APPLY FOR NEZ INCENTIVES.
11. APPLICANT AGENT INFORMATION
1. Applicant: Jo C7C__k,,U 5 S ontact Person:
...........
3. Address: Is W 0 �
..........
Street city State Zip
10
4. Phone no.: 7 Xe y5a 5. Fax No.:
6. Email:
7. Agent(if any)
..................
8. Address:
i State Zip
awl%............................. . ......... .... ......... .................
-----------
11. E ail:
Revised July 23,2 014
................................
FORT WORTH .Application No.
PROJECT ELIGIBIL(TV
1. Please list the addresses and legal descriptions of the project and other properties your organization
owns in Fort Worth. Attach is and bounds description if no address or legal description is
available. Attach a map showing the location of the project,
Table 1 Property A -nershi ........
Address Zip Code ................ . .................... infifin_
Name Lot No. Block No.
....................
_2_7A4__Vioz'-
L.................
J>.N or i c-e4
.................. . ......................
............ .........._.
Other properties owned in the City of Fort Worth -continue on a separates heet and attach if necessary,
............
_PA—Oxs ............
....................... ....... ............. ...............................
.................................................. -----------......................................... .......................
............. ..........__..................................................................................
® For each property listed in Table 1,please check the boxes below to indicate if-
• 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 Pro rty,_l"xe and City Liens
Property City Liens on Property
Address Taxes --We—ed '—Pa"v I n g Order of
Due Liens Stucture Liens Liens Liens Demolition
.......................
... ._. ............................ ........ .................................M__I._'_'__.------- .....................................
.......... . ..... .....
............. ...........
...................
El El EI 0 El
Ej EI
-0... ................ 0................
.......................................................................................... ....................... .... ...............................
77____""_r_I L7
.....................................
............
(.Please;attach additional sheets of paper as needed.)
there-are--taxes_d.ue.-ar.-liens-against-any--property in t1te,-City.of-Fort.Wurth y.tk..u.Mgy:. _mnt_beAigihIr.........
for NEZ incentives
Revised July 23,2014 2
J
................... ..W._.................,
Fbpa WoRni A.ppkatk)rii No.,,o
3. Do you own other properties under other names? [I Yes P<No
If Yes,please specify . .......
.........
s F No
4. Does the proposed project conform with City ofFort W ?
orth Zoning
If no,what steps are being taken to insure compliance?
............. ............ ..... .
5. Project El 0 1:1
Facilities
pe: Single Family Multi-Family Commercial Industrial Comrnunity
...................... —Irlrrrr..................-- ...... ........................... ... ......
Dowser Occopied
%kental Property
6. Please describe the proposed residential or commercial project:
.................. ............................. ....4 I k ............. —L IL
Q Ak
4——------
...................... ........................
7. If your project is a commercial,industrial,ormi use project,please describe the types of
businesses that are being projLx)sed:_,.. . ...........
. .... ........................................................
8. Is this a new construction or rehab project? 0 New Construction X`R'..ehab
9. How much is the total development cost of your project? — '5�5 K
.............-1-1.1--..........�_..........................
10. Will the eligible rehabilitation work* be equal to at least 30% of the Tarrant Appraisal District
(TAD)assessed value of the structure during the year rehabilitation occurs? ;eyes No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain-link or solid material construction;personal property such as furni"e,
appliances,cquipmen4 andtor supplies,Total eligible rehabilitation costs shall equal to or exceed 30%of the
TAD appraised value of the struCtUTe during the year rehabilitation occurs..
11. How much is the total square rootage ofyour project? .........................................- square feet
It Ipp yin .............. .....
abatement please auswe �qucsfioas 16,If vot ski in
p to part c.,el��ives
. ....................
12.For a single-family homeo rnershiD. MiXed-use, or multi-fam.ily clevelo ment rclject, please fill out
the number of residential units based on income range of owners or renters in the f6 flowing table.
Table 3 Number of Residential Units and Income
Ilan e of Owners or Renters
.....................................................................
Nurnber, fUnits Fec r centage
LoLay 'Kan e
.............................
_80W/ __
_1"J,AMF1**
........................... ................................................... -------
At or below 80%of AMFI
CsatallJiiita _, ..h. .. ...........................................
.......................... ...... ............
**AMFL Area Median Family Income. Please see aftadrapeat for income and housing payment guidefines.
13.For a multifamily project to be qualified fort abatement, at least 20% of total units shall be
affordable to families at or below 80%of AWL Check the box if you are requesting a waiver of this
requirement.
14. For a commercial, industrial, or Lomiiignity_facilities_ploLect, indicate square footage of non-
residential space,.
...............
............
Vilif, offun F
��ael ties
.......... ........................ .........................
are f 7"
square—fect .............,............. square feet
J�s
.......... t ...... .....................................................................................................................
Revised July 23,2014 3
FORT WORTH Application No.
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 laud et of the}2't°o,ect _ y
Items Amount Notes
........._.. ____....- _ _.,._.._......__n_. _._.m_._.._._................ .. ........._..... _____
_ ...... __........._..._, �_ �...........__
.........
t apital Investment includes only real property iruuprovernentsm"..... __�new _ ..... site _ prove
_ .. such as new f�er'illtiea and structures,siu� irutp�rowenxerutsv 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 communal facilit or mixed-usq_p1oLect, how many employees will the
project generate?._......
17. For a mixed-rase pro ct please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a Mixed-Use Project
Type Square F trn d � 'P rcentage
a.. .. ... __ �........ __..._.......
_..
............. _
F'atan
_._.............. .
Entertainment:
__.— .�._..._.-.._ ......_. ®-- - ...... � ........_ _ __..
ltetait sales
Service _
Total
M. INCENTIVES What incentives are you applying for?
Municipal Property'Ta.x Abatements
.................. ....Slide
—
5 provide Final Plat Cabinet and Slide for x Abatement Cabinet.,...._ _____....___..._._
�...........� 5 ;years El More than 5 years
[.]Residential owner occupied DResidentrial Rental property [, Apartments(5 pleas units) C ontrnercial
Develo anent Fee Waivers
All building permit related fees(including Plains Review and Inspections)
Plat application f (including concept plan, preliminary plat;final plat, short fonn irepllast
�.......... min application fee EJ Board of Adjustment application fee
Demolition fee Structure moving fee
Community Facilities Agreement(CPA)application fee
Street and utility casement vacation application fee
Im act Fee Waivers The maxt murn wateriwaastewater impact fee waiver amount for a commercial, Industrial, rnl,<ed-.
use,or,cornniu6try facility development project Is equlvalwit to the water/wastewater impact fee of two 6-inch meters
Water (Meter Size ..".. Transportation
eoa of aeters
..... ........ I se-of Cazut .Elena....,.... .... .... .. �. .... .... .... ..... ....... ............ .... .... ......_._ .... .....
Weed liens Paving liens oard up/open structu liens 1lerrr.olition liens
Revised.lady 23,2014 4
FORT WORTH AppWaWnNo, M1-06-001)A
111. ACKNOWLEDGMENTS
I hereby certify that the information provided is true and accurate to the best of my knowledge. I heruby
acknowledge that I have received a copy of N Z Basic Incentives,which governs the granting of tax abaterrients, fee
waivers and release of City liens, and that any VlOIAnON 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 additionarl
information for determining eligibility as r�equ e Cit
.......................... ..........
(PRINTED OR TYPED NAME) 7(AUT .ORIZED SIGNATURE,) (DA E}
Please mail or fai your application-to:
City of Fort Worth Planning and Development Departmvnt
1000 Throckmorton Street,Fort W6rth,Texas 76102 "1',:
Tel: (817)392-2222 Fax: (817)3924116
Electronic version of this form is available on our website. For more information on the NE Z Program,please visit
our web site at www.fortworthgov.org/plannitigauddevelopmerit
For Office Use Only
Application No. �MK-CC)k_p.,c
In which NE Z?
Council District C.1
Application Completed Date(Received Date):: I Conform with Zoning? es F No
_J
Type? [OSF E]Multif4mily Commercial Industrial Community facilities JE]Mixed-Use
Construction completion date? Before NEE�-fter NFL Ownership/Site Control L]Yes[J'No
TAD Account No. 0�4141 Consistent with the NEB p[an? N 4f,e s F
No
Meet affordability test? ....Ees [I No Minimum Capital Investment? 2"Yes No
Rehab at or higher than 30%? r2iles 0 No Meet rnixed-use definition? ff Yes El No
Tax current on this propert�y? VY'cs EJ No Tax current on other properties? E R'Yes No
City liens on this property? City liens on other properties?
• Weed liens 0 Yes No 9 Weed liens El Yes No
• [:'Yes
Board-uplopvi structure liens 0 Yes No • Board-uplopen structure liens El Yes No
• Demolition liens Yes No • Demolition liens Yes No
• ...........
Paving liens Yes No • Paving liens D Yes No
0 Yes I
• Order of demplition, El Yes —'I No • Order of ifernolition El Yes 111. No
Certified? -, es [] No Certified by Date certification issued?
If not certified,reason
Diousing -FIDevelopment __Elwater —13r_o&e -F—ITPW
Revised July 23,2014 5
Exhibit 3
Project Description
Rehabilitation of a single family residence including:
• Roof repair
• Plumbing upgrade
• Electrical upgrade
• Kitchen and bathroom remodel
• Flooring/Carpet replacement
• Interior and exterior painting & siding replacement
• Foundation repair
• HVAC repair/replace
• Landscaping
• New Windows
C Revfew Page f of 2
o dai si9r of t1w City of Fort Worth, T',xas
CITY COUNCIL AGENDA FRT1
MMMOOMMMWIIIIOIIOIIWMMMMMIIIIIIIIIIIOIIIIIIIIIIIIII
0000001101111111
COUNCIL ACTION: Approved on 8/4/2015
IIIIIIIIIIIIMIIIOMMIMIIOOOIMOWWWIIOOMMMMMMMMIMIIOOIIOOOOp01100111111111111101MMMM11111101111111111111111111111011011111111111111111111 WWMIIIIOIIMIIOOIMMIIIMIII
DATE: 81412015 REFERENCE NO.:C-27407 LOG NAME: 17 NS NEZ2704VIRGINIA
CODE: C TYPE: CONSENT HEARING:
O
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Joel Russell for the
Rehabilitation o a Single-Family House on roperty Located at 2704 Virginia Court in the
Six Points Neighborhood Empowerment Zone (COUNCIL DISTRICT 9)
OMMOOOOOOOOOOOOOOOMIIIIIOIOOIIIIIIOMOIIIIIIWIIIIIIOOOOMIWWOOWMIWMIIIOOMIMI OOOIIOIIOIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIOOIIIIIIOOOIIOIIIIIIMMMMMOOOOOOMOOOOOOOOOOOIIOIIIIIIIIIIIIIIIIIIIIIIIIOIIOMMMWOWMM IIIIIIIIIIIIIIIIUIIIIIOIIIIIIIIIIIIIIIIIMMMMMMMOWMllMMMMdW011lllllllllllllll VIII
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement
Agreement i Joel Russell for the rehabilitation of a single-family house on property located at 2704
Virginia Court in the Six Points Neighborhood Empowerment Zone, in accordance with the
Neighborhood owerment Zone Tax Abatement Policy and asic Incentives.
DISCUSSION:
Joel Russell (Property Owner) is the owner of the property described as Lot 8, Block 1, Jarrell
Oakhurst Addition, an addition to the City of Fort Worth, Tarrant County, Texas, as shown by a Deed
of cord recorded in Volume 7257, Page 1022, of the Deed Records of Tarrant County Texas, at
?704 Virginia Court, Fort Worth, Texas. The property is located within the Six Points Neighborhood
Empowerment Zone ( EZ .
The Property ner plans to invest an estimated amount of$50,400.00 to rehabilitate an
approximately 1,300 square foot single-family residence (Project). The Project will be used as rental
property.
The Neighborhood Services Department reviewed the application and certified that the property
owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement. The
NEZ Basic Incentives includes a five-year Municipal Property Tax Abatement on the increased value
of improvements the qualified owner of any new construction or rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements use 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) in July 2015, for the
property as follows:
Pre-Improvement TAD Value of Improvements 44,750.00
Pre-Improvement Estimated Value of Land 10,050.00
Total Pre-Improvement Estimated Value $ 54,800.0
The municipal property tax on the improved value of Project after construction is estimated in the
amount of$430.92 per year for a total amount o $2,154.60 over the five-year period, However, this
estimate may differ from the actual tax abatement value, which will be calculated based on the TA
appraised value of the property.,
In the event of a sale of this property, the NEZ Tax Abatement Agreement ay be assigned to a new
owner's first mortgagee or a new owner as rental property., All ether assignments must be approved
by the City Council.
hti,p:Happs.c�fwnet.org/council.... acket/rn.c_,Tevfew.asp? 0:x:..2 f 32 counciifcfate=8/4/2015 08/12/2015
N&C Review page 2 of 2
This property is located in COUNCIL DISTRICT 9, Mapsco TAR-063Q.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that approval of the above recommendations
will have no material effect on the Fiscal Year 2015 budget. it no current year impact is
anticipated from this action, on approval, reduced revenues will be included in the long-term
forecast associated with years 2016-2020,
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for Citv Manager's Office bv: Fernando Costa (6122)
Originating Department Head: Allison Gray ( 1 7)
Additional Information Contact: Sarah Odle (731 6)
ATTACHMENTS
2704 Virginia Ct. Map.pd
2704 Virginia Current Condition.pdf
http://apps.cfwnet.org/council._packet/mc, -review.asp?ID=21326&councildate=8/4/2015 08/12/2015