HomeMy WebLinkAboutOrdinance 16561-08-2005ORDINANCE NO ~ ~OS 6I ~~-~~-~
AN ORDINANCE AMENDING ORDINANCE 15861 BY
REMOVING CERTAIN PROPERTY FROM NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NUMBER
FOURTEEN OF THE CITY OF FORT WORTH, TEXAS,
DESIGNATING THE PROPERTY SO REMOVED AS
`NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE
NUMBER TWENTY EIGHT 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 alto between the
City and various third parties, as authorized by and in accordance with the Property
Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas Tax
Code (the `Code") and
WHEREAS, the City Council desires to promote the development of the area 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 February 10, 2004 the City Council adopted Resolution No
3043 designating the West 7~'/LJmversrty Neighborhood Empowerment Zone (the
"NEZ") and adopted Ordinance No 15861 designating the NEZ as Neighborhood
Empowerment Reinvestment Zone Number Fourteen, City of Fort Worth, Texas and
WHEREAS, Will Ed Wadley ("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 construct an approximately
42,000 square foot rental showroom/warehouse building and a 3 000 square foot shop
building (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 ~ necessary and
desirable to remove the Land from the Neighborhood Empowerment Reinvestment
Zone No Fourteen 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 West 7~'/University Area by creating
jobs 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
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Improvements and compliance with certain other commitments that will foster
economic development in the Zone and the City in general, and
WHEREAS, on August 23 2005 the City Council held a public hearing
regarding the creation of the Zone, received information concerning the Improvements
proposed for the Zone and afforded a reasonable opportumty 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 Crty on August 10 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, in 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 umt that
includes in rts boundaries real property that is to be included in 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 Crty 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 in the area to prosper as a result of increased
activity and
1.4. The Zone meets the criteria 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 mayor investment in the zone that
would be a benefit to the property and that would contribute to the economic
development of the municipality and
1.5. The Improvements are feasible and practical and, once completed, will benefit
the land included in the Zone as well as the City for a period in excess often
(10) years, which is the statutory maximum term of any tax abatement
agreement entered into under Chapter 312 of the Code.
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Section 2.
REMOVAL OF LAND FROM NEIGHBORHOOD EMPOWERMENT
REINVESTMENT ZONE NO. 14
That Ordinance No 15861 ~ hereby amended by removing the Land, as
described in Exhibit A from Neighborhood Empowerment Reinvestment Zone
Number Fourteen, City of Fort Worth, Texas.
Section 3
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit A "Neighborhood Empowerment Reinvestment
Zone Number Twenty-Eight, 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
expue five (5) years thereafter The Zone may be renewed by the City Council for one
or more subsequent terms of five (5) years or less.
Section 5.
SEVERABILITY
That if any portion, section or part of a section of this Ordinance is subsequently
declared 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 in full force and effect and shall not in any way be impau•ed or affected by such
decision, opinion or judgment.
Section 6.
IMMEDIATE EFFECT
That this Ordinance shall take effect upon its adoption.
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE uS~30
APPROVED AS TC) FORM AND LEGALITY
By.
Cynthia Garcia
Assistant City Attorney
Date: ~~"~
6
Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number
Twenty Eight
General Description
The area to be designated as Fort Worth Neighborhood Empowerment Reinvestment
Zone Number Twenty-Eight for tax abatement purposes contains 3 9199 acres of land
and is described below
220 University Drive, Block 3R, Lots ARl and AR2, Westgate (Ft. Worth), in the City
of Fort Worth, Tarrant County Texas and as shown on the Plat recorded in Cabinet A,
Slide 8714 Plat Records of Tarrant County Texas.
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Exhibit A
Propertygal Description
220 University Drive, Block 3R, Lots AR1 and AR2, Westgate (Ft. Worth), m the City of Fort
Worth, Tarrant County Texas, and as shown on the Plat recorded m Cabinet A, Slide No 8714
Plat Records of Tarrant County Texas.
Exhibit B
Project Description
One-story Office and Showroom with Warehouse Building
One-story Shop Building
Designed to accommodate the warehouse and rental of equipment
The facility is designed to carry on the business, and yet blend with the surrounding apartment
complexes and retail businesses m the area
The Showroom/Warehouse Building of approximately 42,427 square feet is for the rental and
storage of equipment and related supplies
The Shop Building of approximately 3,201 square feet is for the maintenance of the rental
equipment
The Showroom/Warehouse Building will incorporate the following basic elements
Outdoor finish of stucco on Showroom and metal on Warehouse
A welcoming, attractive `street presence that will be a positive addition to the
neighborhood
Warm blend of materials
Landscaping to bring a beautiful ecological blend to the site with trees and bushes for
both visual effect and noise buffers
STATE OF TEXAS §
COUNTY OF TARRANT §
Exhibit C
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
220 University Drive
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 Dale A.
Fisseler its duly authorized Assistant Crty Manager and Will Ed Wadley owner of property
located at 220 Umversrty Drive, Block 3R, Lots ARi and AR2, Westgate (Ft. Worth), m the Crty
of Fort Worth, Tarrant County Texas, and as shown on the Plat recorded in Cabinet A, Slide No
8714 Plat Records of Tarrant County Texas.
The Crty Council of the City of Fort Worth ("City Council") hereby finds and the Crty and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the Crty 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 mumcipahty determines that the creation of the zone
would promote
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase m economic development m 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 Crty Council adopted basic mcenhves for property owners
who own property located in a Neighborhood Empowerment Zone, stating that the City elects to be
eligible to participate m tax abatement and including guidelines and criteria governing tax
abatement agreements entered into between the Crty and various third parties, titled
`Neighborhood Empowerment Zone `NEZ Basic Incentives" ("NEZ Incentives"), these were
readopted on May 17 2005 (M&C G-14802) The May 17 2005 NEZ Incentives are attached
hereto as Exhibit A hereby made a part of the Agreement for all purposes.
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
Tax Code, as amended (the `Code")
E. On January 27 2004 the Fort Worth City Council adopted Ordinance No 15861
(the `Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No 14 City of
Fort Worth, Texas (the Zone") and adopted Resolution No 3043 establishing `Designation of
West 7th Street/LTmversrty Dnve Area as a Neighborhood Empowerment Zone (the `NEZ"). On
August 23 2005 the City Council adopted Ordinance No (the `Ordinance") establishing
`Neighborhood Empowerment Reinvestment Zone No 28 City of Fort Worth, Texas (the
Zone")
F Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit `B ,attached hereto and hereby made a part of this Agreement for
all purposes (the `Premises").
G Owner or its assigns plan to construct a rental service store, Required
Improvements, as defined in Section 1 1 of this Agreement, on the Premises (the `Project").
H. On July 8, 2005 Owner submitted an application for tax abatement to the City
concerning the Premises (the Application"), attached hereto as Exhibit `C" and hereby made a
part of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined m
Section 1 1 and the terms of this Agreement are consistent with encouraging development of the
Zone m accordance with the purposes for its creation and are m 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. Wntten notice that the City intends to enter into this Agreement, along with a copy
of this Agreement, has been furmshed in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing amts m which the Premises is located.
NOW THEREFORE, the City and Owner for and m 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 construct, or cause to be constructed, on and within the Premises
certain improvements consisting of a one-story Office and Showroom with Warehouse
Building, (i) of at least 42,427 square feet in size, and a Shop Building of approximately
3,200 square feet in size and (ii) having a construction cost upon completion of
$2,751,515 00 including site development costs but such minimum construction costs shall
be reduced by any construction cost saving (collectively the `Required Improvements").
The type, preliminary site plan, conceptual elevation, number and location of the Required
Improvements are described in Exhibit `D". Owner shall provide a copy of the final site
plan to City once rt is approved by the Department of Development and the parties agree
that such final site plan shall be a part of this Agreement and shall be labeled Exhibit `E"
The final site plan shall be in substantially the same form as the preliminary site plan.
Minor variations, and more substantial variations if approved m wasting by both of the
parties to this Agreement, in the Required Improvements from the description provided m
the Application for Tax Abatement shall not constitute an Event of Default, as defined m
Section 4 1 provided that the conditions m the first sentence of this Section 1 1 are met and
the Required Improvements are used for the purposes and m the manner described m
Exhibit `D"
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements wrtlun one year from the issuance and receipt of the first building permit,
unless delayed because of force ma~eure, m which case the one year shall be extended by
the number of days comprising the specific force ma~eure. For purposes of this Agreement,
force ma~eure shall mean an event beyond Owner's reasonable control, including, without
limitation, delays caused by adverse weather delays m receipt of any required permits or
approvals from any governmental authority or acts of God, fires, strikes, national disasters,
wars, Hots and material or labor restrictions, and shortages as determined by the City of
Fort Worth in its sole discretion, which shall not be unreasonably withheld, but shall not
include construction delays caused due to purely financial matters, such as, without
hmrtation, delays m the obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the
Premises shall be continuously used as a rental service store and m accordance with the
description of the Project set forth in the Exhibit `D" 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 Crty 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 Premises and the Required Improvements over
their values on January 1 2005 and this amount is $341,510 00 the year in which this
Agreement was entered into
One Hundred percent (100%) of the increase m 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.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase m value of the Premises
due to construction of the Required Improvements and shall not apply to taxes on the
land.
2.3 Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary m this Agreement,
Owner's Abatement m any given year shall be based on the increase in value of the
Premises over its value on January 1 2005 including the Required Improvements, up to a
maximum of $4 466,510 00 In other words, by way of example only if the increase in
value of the Premises over its value on January 1 2005 including the Required
Improvements, m a given year is $4 470 000 00 Owner's Abatement for that tax year shall
be capped and calculated as if the appraised value of the Premises for that year had only
been $4 466,510 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 Crty 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 $1 000 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 follov~nng
reasonable notice to Owner the Crty shall have and Owner shall provide access to the
Premises m order for the Crty 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 Crty 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 m 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
Crty on the Premises or at another location in the Crty 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 February 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 41
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 m 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? AND APPENDIX B OF
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 wntten notice to Owner that describes the nature of the Event of
Default. Owner shall have ninety (90) calendar days from the date of receipt of this wntten
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 m writing, m which case (i) after advising the Crty Council m an open
meeting of Owner's efforts and intent to cure, Owner shall have one ,hundred eighty (180)
calendar days from the ongmal date of receipt of the wntten notice, or (ii) if Owner
reasonably believes that Owner will requue more than one hundred eighty (180) days to
cure the Event of Default, after advising the Crty Council in an open meeting of Owner's
efforts and intent to cure, such additional time, if any as may be offered by the Crty
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 m Section 4 1 has not been cured within
the time frame specifically allowed under Section 4.2, the City shall have the nght 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 m the vicinity of the Premises, (ii) require unplanned and expensive
additional administrative oversight and involvement by the Crty• and (iii) otherwise harm
the City and Owner agrees that the amounts of actual damages there from are speculative
m 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 Crty in the absence of this
Agreement. The Crty and Owner agree that this amount is a reasonable approximation of
actual damages that the Crty 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 distract that has ~unsdiction
over the Premises. Otherwise, this amount shall be due, owing and paid to the City wrtlun
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 wrtlun 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 nine of the payment of such penalties and interest.
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 Crty and Owner may terminate this
Agreement m 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 Crty 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.
Any attempted assignment without the Crty Councils 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 nonce from the Crty to Owner
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
foilowmg, or such other party or address as either party designates in wnhng, by certified mail,
postage prepaid, or by hand dehvery•
City•
City of Fort Worth
Attn. City Manager
1000 Throckmorton
Fort Worth, TX 76102
Owner
Will Ed Wadley
5200 Bills Lane
Colleyville, TX 76034
and
Housing Department
Attn. Jerome Walker
1000 Throckmorton
Fort Worth, TX 76102
7 MISCELLANEOUS.
71 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 Crty
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 Crty Council, any member of the
Crty Planning or Zoning Commission or any member of the governing body of any taxing
amts m 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 `D"
the body of this Agreement shall control. As of August 23 2005 the Crty is unaware of
any conflicts between this Agreement and the City's zoning ordinance or other
ordinances or regulations
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 on August 23 2005 which, among other
things, authorized the Crty Manager to execute this Agreement on behalf of the Crty
7.6. Estoupel 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 m any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed m 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 Recordation.
A certified copy of this Agreement m recordable form shall be recorded m the
Deed Records of Tarrant County Texas.
710. 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 m any way
be affected or impaired.
7.11 Headings Not Controlling.
Headings and titles used m this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
7 12. 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 m interest, as to the matters
contained herein. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent m 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 m multiple
counterparts, each of which shall be considered an original, but all of which shall
constitute one instrument.
EXECUTED this day of
Texas.
EXECUTED this day of
CITY OF FORT WORTH.
By•
Dale A. Fisseler
Assistant City Manager
ATTEST
By•
Crty Secretary
APPROVED AS TO FORM AND LEGALITY
By~
Cynthia B Garcia
Assistant Crty Attorney
M&C
2005 by the Crty of Fort Worth,
2005 by Will Ed Wadley
By•
Will Ed Wadley
Owner
ATTEST
By•
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority on this day personally appeared Dale A.
Fisseler 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 Crty 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 day of
2005
Notary Public in and for
the State of Texas
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority on this day personally appeared Will Ed Wadley
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, m the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2005
Notary Public in and for
The State of Texas
Notary's Printed Name
Exhibit A. NEZ Incentives
Exhibit B Property Description
Exhibit C Application. (NEZ) Incentives and Tax Abatement
Exhibit D Project description including kind, number and location of the proposed
improvements.
Exhibit E. Final Srte Plan
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 8/30/2005 Ordinance No 16561-08-2005
CONTINUED FROM A PREVIOUS WEEK
DATE Tuesday August 23 2005
LOG NAME 05WADLEY REFERENCE NO C-20924
SUB.lECT
Adopt Ordinance to Designate Fort Worth Neighborhood Empowerment Reinvestment Zone
Number 28 and Authorize Tax Abatement Agreement with Will Ed Wadley for Property Located at
220 University Drive in the West 7th/University Neighborhood Empowerment Zone
RECOMMENDATION
It is recommended that the City Council.
1 Hold a public hearing concerning the designation of 3 9199 acres of land as described in Exhibit
A as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) Number 28
2. Adopt the ordinance to designate the area as FWNERZ Number 28 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 Will Ed Wadley are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a property located at 220 University Drive in
the West 7th/University Neighborhood Empowerment Zone (NEZ) owned by Will Ed Wadley .and
5 Authorize the City Manager to enter into the Tax Abatement Agreement with WII Ed Wadley for the
property located at 220 University Drive in the West 7th/University NEZ in accordance with the NEZ Tax
Abatement Policy and NEZ Basic Incentives, as amended
DISCUSSION
Chapter 378 of the Texas Local Government Code provides that a municipality can offer an abatement of
municipal property taxes for properties located in a Neighborhood Empowerment Zone
Will Ed Wadley is the owner of the property located at 220 University Drive The property is located in the
West 7th/ University NEZ. Will Ed Wadley 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. Will Ed Wadley will invest, at a minimum
$2 750 000 00 to build a rental service store The project is described in Exhibit `B
City staff recommends that City Council designate the 3 9199 acre tract (220 University Drive) and more
particularly described in the attached Ordinance as FWNERZ Number 28 so that the City can enter into a
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tax abatement agreement under the guidelines set forth in the Tax Code and the NEZ Tax Abatement
Policy and Basic 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 $0 00
Pre-improvement Estimated Value of Land $341,510.00
Total Pre-improvement Estimated Value $341 510 00
The municipal property tax on the improved value of the property is estimated at $16 651.25 per year for a
total of $83,256 25 over afive-year period However this estimate may differ from the actual tax abatement
value which will be calculated based on the TAD appraisal value of the property
In the event of a sale of the property the agreement may be assigned with City Council approval to the
new owner(s) so long as the new owner(s) meets all of the eligibility criteria as stated in the NEZ Tax
Abatement Policy and Basic Incentives
As required by Chapter 312 of the Texas Tax Code a public hearing must be conducted regarding the
creation of the Zone Notice of this hearing was (1) delivered to the governing body of each affected taxing
unit and (2) published in a newspaper of general circulation at least seven days prior to this hearing
The proposed area meets the criteria for the designation of a reinvestment zone contained in Chapter 312
of the Tax Code As a result of the designation the area will contribute to the retention or expansion of
primary employment and attract major investment in the zone that would be a benefit to the property and
contribute to the economic development of the municipality 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 28 expires after five years and may be renewed for periods not to exceed
five years
This property is located in COUNCIL DISTRICT 7
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on city funds.
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for City Manager's Office b~ Dale Fisseler (6140)
Originating Department Head. Jerome Walker (7537)
Additional Information Contact: Sarah Odle (7316)
Logname OSWADLEY
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