HomeMy WebLinkAboutOrdinance 16474-06-2005ORDINANCE NO ~~vY~'`~-~6ra~~
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 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 Crty 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 ui tax abatement and has established
guidelines and criteria governing tax abatement agreements entered into between the
Crty and various third parties, as authorized by and in accordance with the Property
Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas Tax
Code (the `Code")• and
WHEREAS, the Crty Council desires to promote the development of the area m
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-industnal tax abatement, as authorized by and in accordance with Chapter
312 of the Code; and
WHEREAS, on January 6, 2004 the Crty Council adopted Resolution No 3030
designating the Berry/LJmversrty Area as a 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, Hoang Ngoc Nguyen and Lieu Thi Nguyen ("Developer") have
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
rehabilitate an old Dairy Queen and open a Mellow Mushroom pizza restaurant (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 13 and to designate a new Neighborhood Empowerment Reinvestment Zone
comprising only the Land (the `Zone"); and
WHEREAS, the City Council hereby finds that the project described herein will
be an important element in the revitalization of the Berry/Llmversrty Area by creating
jobs 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
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commitments that will foster economic development in the Zone and the City in
general, and
WHEREAS, on June 14 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 cu'culation in the City on June 3 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 ~ 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 City has met the notice and procedural requu•ements
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 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 mumcipalrty 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 penod 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 N0.20
That Ordinance No 15815 is 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 City Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit A "Neighborhood Empowerment Reinvestment
Zone Number Twenty-Five, City 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 Ordnance 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~udgment.
Section 6.
IMMEDIATE EFFECT
That this Ordmance shall take effect upon rts adoption.
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE ~y~ -~ 1 t-(~ a.c~~5
APPROVED AS TO FORM AND LEGALITY
By
Cynthia arcia
Assistant City Attorney
Date:
M&C• ~- ae-Z~3
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number
Twenty
General Description
The area to be designated as Fort Worth Neighborhood Empowerment
Reinvestment Zone Number Twenty for tax abatement purposes contains .2479
acres of land and is described below
3455 Bluebonnet Circle Lots 14 thru 17 Block 20 Bluebonnet Hills Addition tc
the City of Fort Worth Tarrant County Texas according to the Plat thereof
recorded in Volume 388 Page 74 of the Plat Records of Tarrant County Texas
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number Twenty
General Description
The area to be~ designated as Fort Worth Neighborhood Empowerment Reinvestment Zone
Number Twenty for tax abatement purposes contains .2479 acres of land and is described below-
3455 Bluebonnet Circle, Lots 14 thru 17 Block 20 Bluebonnet Hills Addition, to the City of
Fort Worth, Tarrant County Texas, according to the Plat thereof recorded in Volume 388 Page
74 of the Plat Records of Tarrant County Texas.
F,xhihit ~R"
PROJECT DESCRIPTION
One story restaurant spectaltztng to pizzas, hoagies, and salads
Architecture can be described as west Texas hacienda meets hippie chic
Designed to accommodate approximately 150 customers
One.story structure approximately 3000 square feet
Brick, stone, and wood exterior
The destgn will incorporate the following basic elements.
A welcoming, attractive street presence that feels like part of the neighborhood
Earth tone colors of brick, stone, and wood, including an inviting outdoor stone fireplace
Alluring, spacious patio filled with native Texas landscaping and surrounded by a low
stone wall to separate traffic from customers
Sufficient lighting elements to provide safety and security to customers
Landscaped with trees, bushes, and patio gardens for both visual effect and noise buffer
Designed to promote walk up traffic from the surrounding neighborhoods and businesses
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Exhibit `C"
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
3455 Bluebonnet Circle
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 Hoang Ngoc Nguyen & Lieu Thn
Nguyen, Owners of property located at Lots 15 thnu 17 Block 20 Bluebonnet Hills 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 into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
neighborhood empowerment zone of the municipality detennines that the creation of the zone
would promote.
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase in economic development m the zone;
(3) an increase m the quality of social services, education, or public safety provided
to residents of the zone; or
(4) the rehabihtatnon 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 Crty elects to be
eligible to participate nn tax abatement and including gundelines and criteria governing tax
abatement agreements entered unto between the City and vanous thnrd parties, titled
"Neighborhood Empowerment Zone (NEZ) Basic Incentives" ("NEZ Incentives"), these were
readopted on Apri122, 2003 May 27 2003 and Apri16, 2004 The Apni16, 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 cntena govening tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas
Tax Code, as amended (the `Code").
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E. On January 6, 2004 the City Council adopted Ordinance No. 15815 (the
`Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No 13 City of
Fort Worth, Texas (the `Zone") and adopted Resolution No 3030 establishing `Designation of
Berry/CTmversrty 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 20" City of Fort Worth, Texas (the `Zone").
F Owner owns certain real property located entirehy 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 rehabilitate an existing building for use as a food
establishment, Required Improvements, as defined in Section 1 1 of this Agreement, on the
Premises (the `Project").
H. On May 10, 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 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.
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 the rehabilitation of a single-story building for use as a
food establishment, (i) of at least 3 000 square feet m size, and (ii) having a construction
cost upon completion of $ 650 000 00 including side development costs but such mimmurn
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 is approved by the Department of
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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 prehrmnary site plan. Minor vanahons, and more substantial vanahons if approved
in venting by both of the parties to this Agreement, in the Required Improvements from the
descnphon provided m 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 Regmred Improvements are used for the purposes and in the
manner described to 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 yeaz shall be extended by
the number of days compnsing 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 pemuts or
approvals from any governmental authonty or acts of God, fires, strikes, national disasters,
wazs, pots and matenal or labor restnctions, and shortages as detenruned by the City of
Fort Worth m its sole discretion, which shall not be unreasonably withheld, but shall not
include construction delays caused due to purely financial matters, such as, without
lirrutahon, delays m the obtauung 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 restaurant and in accordance with the
descnption of the Project set forth in the Exhibit `D" In addition, Owner covenants that
throughout the Tenn, the Required Improvements shall be operated and maintained for
the purposes set forth m this Agreement and m a manner that is consistent with the
general purposes of encouragitig 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 tlus 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 $115,901 the year m 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 yeaz 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
maxunum of $650,000 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, in
a given yeaz is $700 000 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
$650 000 00
2.4 Protests Over Appraisals or Assessments.
Owner shall have the nght 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 ("Begimm~g Date ') and, unless sooner terrrunated
as herein provided, shall end on December 31 immediately preceding the fifth
(5`h) anmversary of the Begmmng Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the requrred Abatement application
fee of one half of one percent (.5%) of Project's estunated 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 time during
normal office hours throughout the Term and the year following the Term and following
reasonable nonce to Owner, the City shall have and Owner shall provide access to the
Premtses in order for the City to inspect the Premmses 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 nght to audit at the Ctty'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 dunng the Compliance Auditing Term in 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 Premises or at another location in the City following reasonable advance
notice by the City and shall otherwise cooperate fully with the City dunng any audit.
3.3. Provision of Information.
On or before February 1 following the end of every year dunng 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 dunng 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 dunng 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 in 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 7 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 nonce to Owner that describes the nature of the Event of
Default. Owner shall have mnety (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 wnhng, m which case (i) after advising the City Council m an
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 time, if any as may be offered by the City
Council m rts sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damaises.
If an Event of Default, which is defined in 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 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 in the vicuuty 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
remaiiung 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 City in the absence of this Agreement.
The City and Owner agree that this amount is a reasonable approximation of actual
damages that the City will incur as a result of an uncured Event of Default and that this
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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 district that has jurisdiction
over the Premises. Otherwise, this amount shall be due, owing and paid to the City within
sixty (60) days following the effective date of termination of this Agreement. In the event
that all or any portion of this amount is not paid to the City wttlun 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
Premises or the anticipated Required Improvements are no longer appropriate or feasible,
or that a higher or better use is preferable, the City 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 City has the right to temm~ate 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 City 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 required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in wasting, by certified mail,
postage prepaid, or by hand delivery•
City• Owner•
City of Fort Worth Hoang Ngoc Nguyen and Lieu Tlu Nguyen
Attn. Crty Manager 3148 Cockrell Ave.
1000 Throckmorton Fort Worth, TX 76109
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Fort Worth, TX 76102
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 Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the
City Planning or Zoning Commission or any member of the governing body of any taxing
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 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 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.
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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 City Manager to execute this Agreement on behalf of the City
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner shall include, but not
necessarily be hrnited 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 in accordance with the laws of the State of
Texas and applicable ordinances, rules, regulations, or policies of the City Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County Texas.
This Agreement is performable in Tarrant County Texas.
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.
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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 entire understanding and agreement
between the City and Owner their assigns and successors in interest, as to the matters
contained herein. Any pnor or contemporaneous oral or wntten agreement is hereby
declared null and void to the extent in conflict with any provision of this Agreement.
This Agreement shall not be amended unless executed in venting by both parties and
approved by the City Council. This Agreement may be executed in multiple
counterparts, each of which shall be considered an onginal, but all of which shall
constitute one instrument.
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EXECUTED this day of
Texas.
EXECUTED this day of
Owner
EXECUTED this day of
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&
2005 by the City of Fort Worth,
2005 by Hoang Ngoc Nguyen,
2005 by Lieu Thi Nguyen, Owner.
Hoang Ngoc Nguyen and Lieu Thi Nguyen,
Owners
By.
Hoang Ngoc Nguyen
Owner
Bv.
Lieu Tli Nguyen
Owner
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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 nnstnument, 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 resolutnon
of the City Council of the City of Fort Worth and that he executed the same as the act of the said
City for the purposes and consideration therein expressed and m the capacnty therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE thus day of
_ , 2005
Notazy Public in and for
the State of Texas
Notary's Panted Name
14
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority on this day personally appeared Hoang Ngoc Nguyen,
Owner known to me to be the person whose name is subscribed to the foregoing instnunent, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed, 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 Lieu Thi Nguyen,
Owner 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 m and for
The State of Texas
Notary's Printed Name
15
Exhibit A. NEZ Incentives
Exhibit B Property Descnption
Exhibit C Application. (NEZ) Incentives and Tax Abatement
Exhibit D Project descnption including kind, number and location of the proposed
unprovements.
Exhibit E. Final Site Plan
16
06 ?_~ 05AOf3 29 RCVD vu
City of Fort Worth, Texas
Mayor and, Council Communication
COUNCIL ACTION Approved on 6/14/2005 Ord. #16474-06-2005
DATE. Tuesday June 14 2005
LOG NAME. 05SLAWSON REFERENCE NO C-20793
SUBJECT
Approve the Designation of Fort Worth Neighborhood Empowerment Reinvestment Zone Number
20 and Tax Abatement Agreement with Hoang Ngoc Nguyen and Lieu Thi Nguyen and Related
Findings of Fact by the City Council for Property Located in the Berry and University Neighborhood
Empowerment Zone (NEZ)
RECOMMENDATION
It is recommended that the City Council.
1 Hold a public hearing concerning the designation of .2479 acres of land as described in Exhibit A as
Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) Number 20'
2. Adopt the ordinance to designate the area as FWNERZ Number 20 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 Hoang Ngoc Nguyen and Lieu Thi Nguyen are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a property located. at 3455 Bluebonnet
Circle in the Berry and University Neighborhood Empowerment Zone (NEZ) owned by Hoang Ngoc Nguyen
and Lieu Thi Nguyen and
5 Authorize the City Manager to enter into the Tax Abatement Agreement with Hoang Ngoc Nguyen and
Lieu Thi Nguyen for the property located at 3455 Bluebonnet Circle in the Berry and 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
Hoang Ngoc Nguyen and Lieu Thi Nguyen are the owners of the property located at 3455 Bluebonnet
Circle- The property is located in the Berry and University NEZ. Hoang Ngoc Nguyen and Lieu Thi Nguyen
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. Hoang Ngoc Nguyen and Lieu Thi Nguyen will invest, at a minimum,
$650 000 to rehabilitate an old Dairy Queen and open a Mellow Mushroom pizza restaurant. The project is
described in Exhibit 'B"
Logname. OSSLAWSON Page 1 of 2
City staff recommends that City Council designate the .2479 acre tract (3455 Bluebonnet Circle) and more
particularly described in the attached Ordinance as FWNERZ Number 20 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
Pre-improvement Estimated Value of Land
Total Pre-improvement Estimated Value
$115,901.00
$40,500.00
$156,401.00
The municipal property tax on the improved value of the .property is estimated at $821.00 per year for a
total of $4 105 00 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 20 expires after five years and may be renewed for periods not to exceed
five years.
This property is located in COUNCIL DISTRICT 9
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on city funds.
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for City Manager's Office b~ Dale Fisseler (6140)
Originating Department Head Jerome Walker (7537)
Additional Information Contact• Sarah Odle (7316)
Logname OSSLA'WSON Page 2 of 2