HomeMy WebLinkAboutOrdinance 16473-06-2005ORDINANCE NO.~~ ~7 3°m~ --zap"
AN ORDINANCE AMENDING ORDINANCE 15570 BY
REMOVING CERTAIN PROPERTY FROM NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NUMBER TEN OF
THE CITY OF FORT WORTH, TEXAS, DESIGNATING THE
PROPERTY SO REMOVED AS "NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NUMBER TWENTY
FIVE, 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 Council s adoption on April 22, 2003 of
Resolution No 2938 (M&C C-19551) and amended on May 27 2003 by M&C G
13984 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 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 May 27 2003 the City Council adopted Resolution No 2951
designating the Woodhaven Neighborhood Empowerment Zone (the "NEZ") and
adopted Ordinance No 15570, designating the NEZ as Neighborhood Empowerment
Reinvestment Zone Number Ten, City of Fort Worth, Texas and
WHEREAS, J.B Interests, LLC ("Developer") has purchased certain real
property located in the NEZ and that ~s more particularly described in Exhibit A of
this Ordinance (the Land") on which developer wishes to construct .and own a single
story building consisting of twenty additional class rooms and as addition to Remington
College (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 10 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 Woodhaven Area by creating fobs
and bringing goods and educational opportunities to the community that are not
available in the immediate area 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 in general, and
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WHEREAS, on Apri126, 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 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 April 15 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 unit that
includes in its 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 it 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 Crty 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 to occur with the Zone and
(ii) existing business in the area to prosper as a result of increased residential
activity and
1.4. The Zone meets the cnteria 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 econormc
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 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. 10
That Ordinance No 15570 ~s hereby amended by removing the Land, as
described in Exhibit A from Neighborhood Empowerment Reinvestment Zone
Number Ten, City of Fort Worth, Texas.
Section 3
DESIGNATION OF ZONE.
That the Crty Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit A "Neighborhood Empowerment Reinvestment
Zone Number Twenty-Five, Crty of Fort Worth, Texas" The project described herein
is eligible for commercial development tax abatement pursuant to Section IIIC Of the
NEZ Policy
Section 4.
TERM OF ZONE.
That the Zone shall take effect upon the effective date of this Ordinance and
expire five (5) years thereafter The Zone may be renewed by the 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 m full force and effect and shall not m any way be impau•ed or affected by such
decision, opinion or judgment.
Section 6.
IMMEDIATE EFFECT
That this Ordinance shall take effect upon rts adoption.
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE v~ e I ~ ~ao5
APPROVED AS TO FORM AND LEGALITY
By
Cynthia arcia
Assistant City Attorney
Date:
M&C•C-~o7Y~
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number
Twenty Five
General Description
The area to be designated as Fort Worth Neighborhood Empowerment Reinvestment
Zone Number Twenty-Frye for tax abatement purposes contauis 3 322 acres of land and
is described below
300 E. Loop 820, Lot 2 Block 7 Woodhaven East Addition, situated in the State of
Texas the County of Tarrant and the City of Fort Worth, according to the Plat thereof
recorded in Volume 388-215 Page 35 of the Deed Records of Tarrant County Texas
being the tract of land conveyed to J.B. Interests, LLC by deed recorded in Volume
13717 Page 156 of the Deed Records of Tarrant County Texas.
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number Twenty-Five
General Description
The area to be designated as Fort Worth Neighborhood Empowerment Reinvestment Zone
Number Twenty-Five for tax abatement purposes contains 3 322 acres of land and is described
below
300 E. Loop 820, Lot 2 Block 7 Woodhaven East Addition, situated in the State of Texas the
County of Tarrant and the City of Fort Worth, according to the Plat thereof recorded in Volume
388-215 Page 35 of the Deed Records of Tarrant County Texas being the tract of land conveyed
to J.B Interests, LLC by deed recorded in Volume 13717 Page 156 of the Deed Records of
Tarrant County Texas.
Exhibit `B"
PROJECT DESCRIPTION
Single-story Tiltwall College Building
Contains twenty (20) classrooms, ten (10) offices, restrooms
The new construction work will include the following:
20 new classrooms
10 new offices
Men s & Women s restrooms
Installation of new light fixtures
Installation of new HVAC
Exterior work on building to include:
o Concrete piers, slab on grade & tiltwall panels
o New parking lot and sidewalks
o Roofing
o Painting
Interior work to include:
o Millwork
o Doors, frames, hardware
o Glass & glazing
o Drywall
o Ceramic the
o Acoustical ceilings
o VCT flooring, resilient base
o Carpet
o Paint
o Toilet partitions, accessories
o Operable partitions
o Toilets, sinks
o Lighting
o Air conditioning
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STATE OF TEXAS §
COUNTY OF TARRANT §
F.xhihit `C'"
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
300 E. Loop 820
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
Fisseler its duly authorized Assistant City Manager and J.B. Interests LLC, Jerald Barnett, Owner
of property located at Lot 2, Block 7 Woodhaven East Addition.
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 alto this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
neighborhood empowerment zone if the municipality determines that the creation of the zone
would promote:
(1) the .creation of affordable housing, including manufactured housing in the zone;
(2) an increase in econornic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided
to residents ofthe zone; or
(4) the rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31 2001 the City Council adopted basic incentives for property owners
who own property located in a Neighborhood Empowerment Zone, stating that the City elects to be
eligible to participate in tax abatement and including guidelines and criteria governing tax
abatement agreements entered into between the City and various third parties, titled
"Neighborhood Empowerment Zone (NEZ) Basic Incentives" ("NEZ Incentives"), these were
readopted on Apri122, 2003, May 27 2003 and Apri16, 2004 The April 6, 2004 NEZ Incentives
are attached hereto as Exhibit A and hereby made a part of this Agreement for all purposes.
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered alto by the City as contemplated by Chapter 312 of the Texas
Tax Code, as amended (the `Code").
E. On May 27 2003 the City Council adopted Ordinance No. 15570 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No Ten" City of
Fort Worth, Texas (the `Zone") and adopted Resolution No 2951 establishing `Designation of
Woodhaven Area as a Neighborhood Empowerment Zone" (the `NEZ"). On June 14 2005 the
City Council adopted Ordinance No (the `Ordinance") establishing "Neighborhood
Empowerment Reinvestment Zone No 25" City of Fort Worth, Texas (the `Zone").
F Owner owns certain real property located entirely within the Woodhaven NEZ 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 asingle-story college building, Required
Improvements, as defined in Section 1 1 of this Agreement, on the Prerruses (the `Project").
H. On March 9 2005 Owner subrnitted an application for tax abatement to the City
concerning the Premises (the Application"), attached hereto as Exhibit `C" and hereby made a
part ofth~s 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 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 cntena 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 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 Imurovements.
Owner shall construct, or cause to be constructed, on and within the Prerruses
certain unprovements consisting of a Single-story College Building, (i) of at least 23 000
square feet in size, and (ii) having a construction cost upon completion of $ 1,500 000.00
including side 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 it ~s 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"
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The final site plan shall be in substantially the same form as the preliminary site plan.
Minor variations, and more substantial variations if approved in writing by both of the
parties to this Agreement, in the Required Improvements from the description provided in
the Application for Tax Abatement shall not constitute an Event of Default, as defined in
Section 4 1 provided that the conditions in the first sentence of this Section 1 1 are met and
the Required Improvements are used for the purposes and in the manner described in
Exhibit `D"
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements within one year from the issuance and receipt of the first building permit,
unless delayed because of force ma~eure, in 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
lunrtation, delays caused by adverse weather delays in receipt of any required permits or
approvals from any governmental authority or acts of God, fires, strikes, national disasters,
wars, riots 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
lumtation, delays in 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 school and in 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 City hereby grants to
Owner real property tax abatement on the Premises, the Required Improvements, as
specifically provided in this Section 2 ("Abatement") Abatement" of real property
taxes only includes City of Fort Worth-unposed 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 Prerruses and the Required Improvements over
their values on January 1 2005 and this amount is $2,145,593 the year in which this
Agreement was entered into
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One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that
such minimum construction costs shall be reduced by construction cost savings,
Owner shall not be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises
due to construction of the Required Improvements and shall not apply to taxes on the
land.
2.3. Abatement Limitation.
Notwithstanding anything that maybe interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the
Premises over rts value on January 1 2005 including the Required Improvements, up to a
maxunum of $2,250,000.00. In other words, by way of example only if the increase in
value of the Premmses over rts value on January 1 2005 including the Required
Improvements, in a given year is $2,500,000.00 Owner's Abatement for that tax year shall
be capped and calculated as if the appraised value of the Premmses for that year had only
been $2,250,000.00.
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
(5~') anniversary of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application
fee of one half of one percent (.5%) of Project s estimated cost, not to exceed $1 000 The
application fee shall not be credited or refunded to any party for any reason.
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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 tune durung
normal office hours throughout the Term and the year followung the Term and followung
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. 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 tune durung the Compliance Auditung Term un order
to determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to Owner Owner shall make all applicable Records available to the
City on the Premmses or at another location m the City followung 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 followung the end of every year during the Compliance
Audrtung Term and if requested by the City Owner shall provide information and
documentation for the previous year that addresses Owner's compliance with each of the
terms and conditions of this Agreement for that calendar year This information shall
include, but not be limited to, the number and dollar amounts of all construction contracts
and subcontracts awarded on the Project.
Failure to provide all information within the control of Owner required by this Section
3.3 shall constitute an Event of Default as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year durung the Compliance Auditing Term, the
City shall make a decision and rule on the actual annual percentage of Abatement
available to Owner for the followung year of the Term and shall notify Owner of such
decision and rulung. 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.
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4. EVENTS OF DEFAULT
4.1 Defined.
Unless otherwise specified herein, Owner shall be m default of this Agreement if (i)
Owner fails to construct the Required Improvements as defined in Section 1 1 (ii) ad
valorem real property taxes with respect to the Premises or the Project, or its ad valorem
taxes with respect to the tangible personal property located on the Premises, become
delinquent and Owner does not timely and properly follow the legal procedures for protest
and/or contest of any such ad valorem real property or tangible personal property taxes or
(iii) OWNER DOES NOT COMPLY WITH CHAPTER? 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 written 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
written notice to fully cure or have cured the Event of Default. If Owner reasonably
believes that Owner will require additional time to cure the Event of Default, Owner shall
promptly notify the City in writing, in which case (i) after advising the City Councilman
open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty
(180) calendar days from the original date of receipt of the written notice, or (ii) if Owner
reasonably believes that Owner will require more than one hundred eighty (180) days to
cure the Event of Default, after advising the City Council in an open meeting of Owner's
efforts and intent to cure, such additional tune, if any as may be offered by the City
Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default, which is defined m Section 4 1 has not been cured within
the tune frame specifically allowed under Section 4.2, the City shall have the right to
terminate this Agreement unmediately Owner acknowledges and agrees that an uncured
Event of Default will (i) harm the City's economic development and redevelopment efforts
on the Premises and in the vicinity of the Premises, (ii) require unplanned and expensive
additional administrative oversight and involvement by the City and (iii) otherwise harm
the City and Owner agrees that the amounts of actual damages therefrom are speculative in
nature and will be difficult or unpossible 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 Crty as liquidated damages, all taxes that were
abated in accordance with this Agreement for each year when an Event of Default existed
and which otherwise would have been paid to the City in the absence of this Agreement.
The Crty and Owner agree that this amount is a reasonable approxination of actual
damages that the City will incur as a result of an uncured Event of Default and that this
Section 4 3 is intended to provide the City with compensation for actual damages and is not
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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 jurisdiction
over the Premises. Otherwise, this amount shall be due, owing and paid to the City within
sixty (60) days following the effective date of termination of this Agreement. In the event
that all or any portion of this amount is not paid to the Crty within sixty (60) days following
the effective date of termination of this Agreement, Owner shall also be liable for all
penalties and interest on any outstanding amount at the statutory rate for delinquent taxes,
as determined by the Code at the tune 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
Prerruses or the anticipated Requu•ed Improvements are no longer appropriate or feasible,
or that a higher or better use is preferable, the City and Owner may terminate this
Agreement in a written format that ~s signed by both parties. In this event, (i) if the Term
has commenced, the Term shall expu•e as of the effective date of the termination of this
Agreement; (ii) there shall be no recapture of any taxes previously abated, and (ui)
neither party shall have any further rights or obligations hereunder
4.5 Sexually oriented Business & Liquor Stores or PackaEe Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
-b. Owner understands and agrees that the Crty 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 notice from the City to Owner
6. NOTICES.
All written notices called for or requu•ed 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•
Crty of Fort Worth
Attn. Crty Manager
1000 Throckmorton
Fort Worth, TX 76102
Owner
J.B Interests, LLC
Attn. Jerald Barnett
500 President Clinton Ave., Suite 310
Little Rock, AR 72201
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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 nghts of holders of outstanding bonds of the City
7.2. Conflicts of Interest.
Neither the Premmses nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the
City Planning or Zoning Commission or any member of the governing body of any taxing
units in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall
control. In the event of any conflict between the body of this Agreement and Exhibit `D"
the body of this Agreement shall control. As of June 14 2005 the City is unaware of any
conflicts between this Agreement and the City's zoning ordinance or other ordinances or
regulations.
7 4. Future AaaGcaNon.
A portion or all of the Premises and/or Required Improvements maybe 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 on June 14 2005 which, among other things,
authorized the Crty Manager to execute this Agreement on behalf of the City
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7.6. Estoaael Certificate.
Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner shall include, but not
necessarily be limited to statements that this Agreement is in full force and effect
without default (or if an Event of Default exists, the nature of the Event of Default and
curative action taken and/or necessary to effect a cure), the remaining term of this
Agreement, the levels and remaining term of the Abatement in effect, and such other
matters reasonably requested by the party or parties to receive the certificates.
7 7 Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning
or challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions, or City Council actions authorizing this Agreement, and Owner shall be
entitled to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of
Texas and applicable ordinances, rules, regulations, or policies of the City Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County Texas.
This Agreement ~s performable in Tarrant County Texas.
7.9 Recordation.
A certified copy of this Agreement in recordable form shall be recorded in 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 in any way
be affected or impaired.
7.11 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.
7.12. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the enure 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 wntten agreement ~s hereby
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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.
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EXECUTED this day of
Texas.
EXECUTED this day of
Interests, LLC
CITY OF FORT WORTH.
By
Dale Fisseler
Assistant City Manager
ATTEST
By
City Secretary
APPROVED AS TO FORM AND LEGALITY
By
Cynthia Garcia
Assistant City Attorney
M&C• C
2005 by the City of Fort Worth,
2005 by Jerald Barnett, Owner J.B
Jerald Barnett, Owner
J.B Interests, LLC
By
Jerald Barnett
Owner
ATTEST
By
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority on this day personally appeared Dale 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
Crty 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
14
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority on this day personally appeared Jerald Barnett, Owner
of J.B Interest, LLC, 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, in the capacity therein stated and as the act and deed of J.B
Interest, LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2005
Notary Public m and for
The State of Texas
Notary's Pruned Name
15
Exhibit A. NEZ Incentives
Exhibit B Property Description
Exhibit C• Application. (NEZ) Incentives and Tax Abatement
Exhibit D• Project description uicluduig kind, number and location of the proposed
improvements.
Exhibit E. Final Srte Plan
16
q ~ ;~ ~~~~
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved As Amended on 6/14/2005 Ord. #16473-06-2005
DATE. Tuesday June 14 2005
LOG NAME. 05REMINGTON2 REFERENCE NO C-20792
SUBJECT
Approve the Designation of Fort Worth Neighborhood Empowerment Reinvestment Zone Number
25 and Tax Abatement Agreement with J B Interests LLC and Related Findings of Fact by the City
Council for Property Located in the Woodhaven Neighborhood Empowerment Zone
RECOMMENDATION
It is recommended that the City Council:
1 Hold a public hearing concerning the designation of 3.322 acres of land as described in Exhibit A as
Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) Number 25
2. Adopt the ordinance to designate the area as FWNERZ Number 25 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 Tax Abatement Agreement (the Agreement) with
<U>J.B Interests, LLC are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a property located at 300 East Loop 820 in
the Woodhaven Neighborhood Empowerment Zone (NEZ) owned by ~B Interests, LLC• and
5. Authorize the City Manager to enter into the Tax Abatement Agreement with J_B. Interests, LLC for
the property located at 300 East Loop 820 in the Woodhaven 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
J.B Interests, LLC is the owner of the property located at 300 East Loop 820. The property is located in the
Woodhaven NEZ. J.B Interests, LLC applied for afive-year municipal property tax abatement under the
NEZ Tax Abatement Policy and Basic Incentive (M&C's G-13208R, G-13580 G-13662 and C-19551 as
amended) 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 afive-
year municipal property tax abatement on the increased value of improvements to the qualified owner of
any new construction or rehabilitation within the NEZ. J.B Interests, LLC will invest, at a minimum,
$1,500 000 to construct a new single-story building consisting of 20 additional class rooms. This will be an
addition to the existing college campus of Remington College in the Woodhaven NEZ. The project is
described in Exhibit 'B"
Staff recommends that City Council designate the 3.322 acre tract (300 East Loop 820) and more
Logname OSREIVIINGTON2 Page 1 of 2
particularly described in the Ordinance as FWN[rRZ Number 25, so that the City can enter into a tax
abatement agreement under the guidelines set forth in the Tax Code and the NEZ Tax Abatement Policy
and Basic Incentive The form of the tax abatement agreement is attached as Exhibit 'C"
TAX ABATEMENT TERMS
Upon execution of the agreement, the total assessed value of the improvement used for calculating
municipal property tax will be frozen for a period of five years, starting on January 1 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 $ 2,145,593
Pre-improvement Estimated Value of Land $ 723,530
Total Pre-improvement Estimated Value $ 2,869 123
The municipal property tax on the improved value of the property is estimated at $9,082.50 per year for a
total of $45,412.50 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 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 25 expires after five years and may be renewed for periods not to exceed
five years.
This property is located in COUNCIL DISTRICT 4
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 bk. Dale Fisseler (6140)
Originating Department Head Jerome Walker (7537)
Additional Information Contact• Sarah Odle (7316)
Logname. OSREMINGTON2 Page 2 of 2