HomeMy WebLinkAboutOrdinance 16634-10-2005ORDINANCE NO ~~i~' .3`~ ~~~~-~4-~
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 TWENTY THREE, 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 in tax abatement and has established
guidelines and criteria governing tax abatement agreements entered into between the
City and various third parties, as authorized by and 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 in
the City more specifically described in Exhibit A of this Ordinance (the `Zone ')
through the creation of reinvestment zone for purposes of granting residential and
commercial industrial tax abatement, as authorized by and in accordance with Chapter
312 of the Code and
WHEREAS, on January 6, 2004 the City Council adopted Resolution No 3030
designating the University/Berry Neighborhood Empowerment Zone (the `NEZ") and
adopted Ordinance No 15815 designating the NEZ as Neighborhood Empowerment
Reinvestment Zone Number Thirteen, City of Fort Worth, Texas and
WHEREAS, Zarif, Inc ("Developer") has purchased certain real property
located in the NEZ and that is more particularly described in Exhibit A of this
Ordinance (the Land") on which developer wishes to expand a professional dental
office (the `Improvements") and
WHEREAS, the Code requires that the terms and conditions of tax abatement
agreements covering property located in the same reinvestments zone must be identical,
and
WHEREAS, Developer has requested a 5 year commercial 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 Thirteen 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 in the revitalization of the Berry/LJmversity Area by creating
job opportunities and goods to the community and that the development of the Land
and the Zone in the manner described herein will best occur by means of tax abatement
on the Improvements in return for Developer's causing construction of the
Improvements and compliance with certain other commitments that will foster
economic development in the Zone and the City m general, and
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WHEREAS, on August 04 2005 and October 04 2005 the City Council held
public hearings regarding the creation of the Zone, received information concerning the
Improvements proposed for the Zone and afforded a reasonable opportunity for all
interest persons to speak and present evidence for or against the creation of the Zone
("Public Hearing") as required by Section 312.201(d) and
WHEREAS, notice of the Public Hearing was published in a newspaper of
general circulation in the City on June 26 2005 which satisfies the requirement of
Section 312.201(d)(1) of the Code that publication of the notice occur not later than the
seventh day before the date of the public hearing; and
WHEREAS, m accordance with Sections 312.201(d)(2) and (e), notice of the
Public Hearing was delivered in writing not later than the seventh day before the date of
the public hearing to the presiding officer of the governing body of each taxing unit that
includes in rts boundaries real property that is to be included m the proposed Zone•
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS
Section 1.
FINDINGS.
That after reviewing all information before rt regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity
for all interested persons to speak and present evidence for or against the creation of the
Zone, the City Council hereby makes the following findings of fact:
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1.1 The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of a reinvestment zone under Chapter 312
of the Code and
1.2. Without a tax abatement on the Improvements, as requested by Developer
construction of the Improvements would not be financially feasible for
Developer
1.3. As a retail commercial development, the Improvements will cause among other
things and without limitation, (i) new employment opportunities to occur within
the Zone and (ii) existing business m the area to prosper as a result of increased
activrty• and
1.4. The Zone meets the cntena for the designation of a reinvestment zone as set forth
in V T C.A., Tax Code, Section 312.202, as amended, in that the area is
reasonably likely as a result of the designation to contribute to the retention or
expansion of primary employment or to attract major investment in the zone that
would be a benefit to the property and that would contribute to the economic
development of the mumcipality• and
1.5. The Improvements are feasible and practical and, once completed, will benefit
the land included in the Zone as well as the Crty for a penod m excess of ten
(10) years, which is the statutory maximum term of any tax abatement
agreement entered into under Chapter 312 of the Code
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Section 2.
REMOVAL OF LAND FROM NEIGHBORHOOD EMPOWERMENT
REINVESTMENT ZONE NO 14
That Ordinance No 15815 is hereby amended by removing the Land, as
described in Exhibit A from Neighborhood Empowerment Reinvestment Zone
Number Thirteen, City of Fort Worth, Texas.
Section 3
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit A `Neighborhood Empowerment Reinvestment
Zone Number Twenty Three, City of Fort Worth, Texas" The project described herein
is eligible for commercial development tax abatement pursuant to Section IIIC of the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
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 invalid, 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 in any way be impaired or affected by such
decision, opinion or~udgment.
Section 6.
IMMEDIATE EFFECT
That this Ordinance shall take effect upon its adoption.
AND IT IS SO ORDAINED
ADOPTED AND EFFECTIVE ~ (~~~~ W~ ~J
APPROVED AS TO FORM AND LEGALITY
By~ -__
Cynthia Garcia
Assistant City Attorney
Date o~~~1~K
M&C C ~ a-~ ~q I
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number
Twenty Three
General Description
2721 8`" Avenue, Lot 21 Block 27 Ryan Place Addition, in the Crty of Fort Worth,
Tarrant County Texas, and as shown on the Plat recorded m Volume 204-A, Page 170
Plat Records, Tarrant County Texas.
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City of Fort Worth, Texas
Mayor and Council Communication
~~z
COUNCIL ACTION Approved on 10!4!2005 Ordinance No. 16634-10-2005
CONTINUED FROM A PREVIOUS WEEK
DATE Thursday August 04 2005
LOG NAME 05ZARIF REFERENCE NO C-20891
SUBJECT
Adopt Ordinance to Designate Fort Worth Neighborhood Empowerment Reinvestment Zone
Number 23 and Authorize Tax Abatement Agreement with Zarif Inc for Property Located at 2721
8th Avenue in the Berry/University Neighborhood Empowerment Zone
RECOMMENDATION
It is recommended that the City Council
1 Hold a public hearing concerning the designation of 0 1492 acre of land as described in Exhibit A as
Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) Number 23
2. Adopt the ordinance to designate the area as FWNERZ Number 23 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 Zarif Inc. are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a property located at 2721 8th Avenue in
the Berry/University Neighborhood Empowerment Zone (NEZ) owned by Zarif Inc and
5 Authorize the City Manager to enter into the Tax Abatement Agreement with Zarif Inc. for the property
located at 2721 8th Avenue 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
Zarif Inc is the owner of the property located at 2721 8th Avenue The property is located in the Berry/
University NEZ. Zarif Inc. applied for afive-year municipal property tax abatement under the NEZ Tax
Abatement Policy and Basic Incentive These incentives were readopted on May 17 2005 (M&C G-
14802) The Housing Department reviewed the application and certified that the property meets the
eligibility criteria to receive NEZ municipal property tax abatement. The NEZ Basic Incentive 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. Zarif Inc. will invest, at a minimum $45 000 to
expand a professional office The project is described in Exhibit `B"
City staff recommends that City Council designate the 0 1492 acre tract (2721 8th Avenue) and more
particularly described in the attached Ordinance as FWNERZ Number 23 so that the City can enter into a
Logname OSZARIF Page 1 of 2
tax abatement agreement under the guidelines set forth in the Tax Code <~nd 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 2006 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1 2005 for the
property as follows•
Pre-improvement TAD Value of Improvements $25,837 00
Pre-improvement Estimated Value of Land
Total Pre-improvement Estimated Value
$39.000.00
$64 837 00
The municipal property tax on the improved value of the property is estimated at $116 78 per year for a
total of $583 88 over afive-year period However this estimate may differ from the actual tax abatement
value which will be calculated based on the TAD appraisal value of the property
In the event of a sale of the property the agreement may be assigned with City Council approval to the
new owner(s) so long as the new owner(s) meets all of the eligibility criteria as stated in the NEZ Tax
Abatement Policy and Basic Incentives
As required by Chapter 312 of the Texas Tax Code a public hearing must be conducted regarding the
creation of the Zone Notice of this hearing was (1) delivered to the governingi 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 23 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
Submitted for City Manager's Office bv:
Originating Department Head.
Additional Information Contact:
FROM Fund/Account/Centers
Dale Fisseler (6140)
Jerome Walker (7537)
Jerome Walker (7537)
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