HomeMy WebLinkAboutOrdinance 16249~~~ ry
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ORDINANCE NO
AN ORDINANCE AMENDING ORDINANCE 15061 BY
REMOVING CERTAIN PROPERTY FROM NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NUMBER 2 OF THE
CITY OF FORT WORTH, TEXAS, DESIGNATING THE
PROPERTY SO REMOVED AS `NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NUMBER TWENTY
TWO, 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 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-industrial tax abatement, as authorized by and m accordance with Chapter
312 of the Code; and
WHEREAS, on April 2, 2002, the City Council adopted Resolution No 2823
designating the Ridglea Village/Como Neighborhood Empowerment Zone (the `NEZ")
and adopted Ordinance No 15061 designating the NEZ as Neighborhood
Empowerment Reinvestment Zone Number Two, City of Fort Worth, Texas and
WHEREAS, Iknow Investments, Inc ("Developer") has purchased certain real
property located m the NEZ and that is more particularly described m Exhibit A of
this Ordinance (the Land") on which developer wishes to construct and own a retail
development (the `Improvements '), and
WHEREAS, the Code requires that the terms and conditions of tax abatement
agreements covering property located m 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 2 and to designate a new Neighborhood Empowerment Reinvestment Zone
composing only the Land (the `Zone'), and
WHEREAS, the City Council hereby finds that the project described herein will
be an important element m the revitalization of the Ridglea/Como Area by creating fobs
and bringing goods to the community that are not available in the immediate area and
that the development of the Land and the Zone m 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 December 21 2004 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 December 9 2004 which satisfies the requirement of
Section 312.201(d)(1) of the Code that publication of the notice occur not later than the
seventh day before the date of the public hearing; and
WHEREAS, m accordance with Sections 312.201(d)(2) and (e), notice of the
Public Hearing was delivered in writing not later than the seventh day before the date of
the ublic hearin to the residin officer of the overnmg body of each taxing unit that
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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 rt regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity
for all interested persons to speak and present evidence for or against the creation of the
Zone, the City Council hereby makes the following findings of fact:
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1.1 The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the nonce 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 m the area to prosper as a result of increased residential
activity and
1.4. The Zone meets the cntena for the designation of a reinvestment zone as set forth
in V T C.A., Tax Code, Section 312.202, as amended, in that the area is
reasonably likely as a result of the designation to contribute to the retention or
expansion of primary employment or to attract mayor investment in the zone that
would be a benefit to the property and that would contribute to the economic
development of the municipality and
1.5. The Improvements are feasible and practical and, once completed, will benefit
the land included in the Zone as well as the City for a period in excess 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 N0.2
That Ordinance No 15061 is hereby amended by removing the Land, as
described in Exhibit A from Neighborhood Empowerment Reinvestment Zone
Number Two, City of Fort Worth, Texas.
Section 3
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described in the boundary
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description attached hereto as Exhibit A "Neighborhood Empowerment Reinvestment
Zone Number Twenty-Two, 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 Ordinance is subsequently
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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 impaired or affected by such
decision, opinion or~udgment.
Section 6.
IMMEDIATE EFFECT
That this Ordinance shall take effect upon its adoption.
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE
APPROVED AS TO FORM AND LEGALITY
By _. _.
C . thi 'a
Assistant City Attorney
Date: ~ ~ ~-~`~
M&C C n ~ ~
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Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone Number
Twenty Two
General Description
The area to be designated as Fort Worth Neighborhood Empowerment Reinvestment
Zone Number Twenty-Two for tax abatement purposes contains 1 426 acres of land and
is described below
Lot 9R, Block 456, Charnberlam Arlington Heights Addition, Second Filing to the City
of Fort Worth, Tarrant County Texas, according to plat recorded in Cabinet A, Slide
6686, Deed Records of Tarrant County Texas.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 12/21/2004 Ordinance No 16249
DATE. Tuesday December 21 2004
LOG NAME. 051KNOW REFERENCE NO C-20461
SUBJECT
Public Hearing for the Designation of Fort Worth Neighborhood Empowerment Reinvestment Zone
No 22 and Tax Abatement Agreement with Iknow Investments Inc. and Related Findings of Fact by
the City Council for Property Located in the Ridglea Village/Como Neighborhood Empowerment
Zone (NEZ)
RECOMMENDAT{ON
It is recommended that the City Council:
1 Hold a public hearing concerning the designation of 1 426 acres of vacant land as described in
Exhibit A as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No 22,
2. Adopt the attached ordinance to designate the area as FWNERZ No 22 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 Iknow Investments, Inc. are true and correct;
4 Approve afive-year Municipal Property Tax Abatement for a properties located at 4441 Bryant Irvin
Road in the Ridglea Village/Como Neighborhood Empowerment Zone (NEZ} owned by Iknow Investments
Inc. and
5 Authorize the City Manager to enter into the attached Tax Abatement Agreement with Iknow
Investments Inc. for the property located at 4441 Bryant Irvin Road in the Ridglea Village/Como 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
Iknow Investments Inc. is the owner of the property located at 4441 Bryant Irvin Road The property is
located in the Ridglea Village/Como NEZ. Iknow Investments 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 within the NEZ. Iknow Investments Inc. will invest, at a
minimum $550 000 00 to construct an 8 000 square foot retail store in the Ridglea Village/Como NEZ. The
project is described in Exhibit B"
Logname• OSIKNOW PaaP 1 of ~
Staff recommends that City Council designate the 1 426 acre tract (4441 Bryant Irvin Road) and more
particularly described in the attached Ordinance as FWNERZ No 22 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 2005 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1 2004 for the
properties as follows
Pre-improvement TAD Value of Improvements $ 0
Pre-improvement Estimated Value of Land $ 62,108
Total Pre-improvement Estimated Value $ 62 108
The municipal property tax on the improved value of the properties is estimated at $3 330.25 per year for a
total of $16 651.25 over afive-year period However this estimate may differ from the actual tax abatement
value which will be calculated based on the TAD appraisal value of the property
In the event of a sale of the property the agreement may be assigned with City Council approval to the
new owners} 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 No 22 expires after five years and may be renewed for periods not to exceed five~-
years.
This property is located in COUNCIL DISTRICT 7
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on city funds
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for City Manager's Office bbl: Dale A. Fisseler (Acting) (6266)
Originating Department Head. Jerome C Walker (7537)
Additional Information Contact: Jahn C Cox (7319)
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