HomeMy WebLinkAboutOrdinance 16601-09-2005ORDINANCE NO l ~0~~ ~ m~ ~.OmS
AN ORDINANCE AMENDING ORDINANCE 15841 BY REMOVING
CERTAIN PROPERTY FROM NEIGHBORHOOD EMPOWERMENT
REINVESTMENT ZONE NUMBER FIFTEEN OF THE CITY OF FORT
WORTH, TEXAS DESIGNATING THE PROPERTY SO REMOVED AS
`NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE
NUMBER TWENTY-SIX, 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 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 m 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 January 27 2004 the City Council adopted Resolution No 3039
designating the Tnmty Park Area Neighborhood Empowerment Zone (the `NEZ") and adopted
Ordinance No 15841 designating the NEZ as Neighborhood Empowerment Reinvestment Zone
Number Fifteen, Crty of Fort Worth, Texas and
WHEREAS, Citizens National Bank ("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 a professional office/retail center (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 m 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 Fifteen and
to designate a new Neighborhood Empowerment Reinvestment Zone comprising only the Land
(the `Zone ') and
WHEREAS, the Crty Council hereby finds that the project described herein will be an
important element m the revitalization of the Trinity Park Area by creating fobs and bringing
professional services 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 m general, and
WHEREAS, on September 13 2005 the Crty 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 m the City on September 1 2005 which satisfies the requirement of Section
312.201(d)(1) of the Code that publication of the notice occur not later than the seventh day
before the date of the public hearing; and
WHEREAS, m accordance with Sections 312.201(d)(2) and (e), notice of the Public
Hearing was delivered m 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 m rts
boundaries real property that is to be included m the proposed Zone;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS
Section 1
FINDINGS
That after reviewing all information before 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:
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 professional office /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 major 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 of ten (10) years,
which is the statutory maximum term of any tax abatement agreement entered into
under Chapter 312 of the Code.
Section 2
REMOVAL OF LAND FROM NEIGHBORHOOD EMPOWERMENT REINVESTMENT
ZONE NO 15
That Ordinance No.15841 is 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-Six, City of Fort Worth, Texas" The project described herein is
eligible for commercial development tax abatement pursuant to Section IIIC. of the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
Section 4
TERM OF ZONE.
That the Zone shall take effect upon the effective date of this Ordinance and expire
five (5) years thereafter The Zone may be renewed by the 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 remain
in full force and effect and shall not in any way be impaired 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 ~~2rvty+2P 13~~-s
APPROVED AS TO FORM AND LEGALITY
By
Cynthia Garcia
Assistant Crty Attorney
Date
M&C C - ~9q ~
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 9/13/2005 Ordinance No 16601-09-2005
DATE Tuesday September 13 2005
LOG NAME 05CITNABANK REFERENCE NO C-20998
SUBJECT
Adopt Ordinance to Designate Fort Worth Neighborhood Empowerment Reinvestment
Zone Number 26 Authorize a Tax Abatement Agreement with Citizens National Bank for Property
Located at 2720 West 7th Street in the Trinity Park Neighborhood Empowerment Zone and Hold a
Public Hearing
RECOMMENDATION
It is recommended that the City Council
1 Hold a public hearing concerning the designation of 7174 acres of land as described in Exhibit
A as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) Number 26
2. Adopt the attached ordinance to designate the area as FWNERZ Number 26 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 with
Citizens National Bank are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a property located at 2720 West 7th Street
in the Trinity Park NEZ owned by Citizens National Bank; and
5 Authorize the City Manager to enter into the Tax Abatement Agreement with Citizens National Bank for
the property located at 2720 West 7th Street in the Trinity Park 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
Citizens National Bank is the owner of the property located at 2720 West 7th Street. The property is
located in the Trinity Park NEZ. Citizens National Bank has 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 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. Citizens National Bank will
invest, at a minimum $4 500 000 00 to construct a professional office/retail center The project is
described in Exhibit B
Logname• OSCITNABANK Page 1 of 2
City staff recommends that City Council designate the 7174 acres of land (2720 West 7th Street) and
more particularly described in the attached Ordinance as FWNERZ Number 26 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 Estimated Value of Land
Pre-improvement TAD Value of Improvements
Total Pre-improvement Estimated Value
$156,250 00
$79,121.00
$235 371 00
The municipal property tax on the improved value of the property is estimated at $21 447 59 per year for a
total of $107 237 98 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) meet 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 26 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/AccountlCenters
Submitted for City Manager's Office b~ Dale Fisseler (6140)
Originating Department Head. Jerome Walker (7537)
Additional Information Contact: Roy Lopez (7336)
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