HomeMy WebLinkAboutOrdinance 15993ORDINANCE NO ~ `~C~~..J
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF
FORT WORTH AS `NEIGHBORHOOD EMPOWERMENT REINVESTMENT
ZONE NO 18, 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 m tax abatement and has established
guidelines and criteria govermng 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 m 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 April 2, 2002, the City Council designated the Ridglea Village/Como
Area as a Neighborhood Empowerment Zone by Resolution to promote (1) the creation or
rehabilitation of affordable housing in the zone, or (2) an increase in economic development in
the zone, or (3) an increase in the quality of social services, education or public safety provided
to the residents of the zone; and
WHEREAS the Neighborhood Empowerment Reinvestment Zone No 18 is located
within the Ridglea Village/Como Neighborhood Empowerment Zone; and
WHEREAS, the Neighborhood Empowerment Zone No 18 will promote the creation of
affordable housing in the zone and an increase m economic development m the zone; and
WHEREAS, on June 8, 2004 the City Council held a public heanng regarding the
creation of the Zone afforded a reasonable opportunity for all interested persons to speak and
present evidence for or against the creation of the Zone ("Public Heanng"), as required by
Section 312.201(d) of the Code; and
WHEREAS, notice of the Public Heanng was published in a newspaper of general
circulation m the City on June I 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 heanng; and
WHEREAS, m accordance with Sections 312.201(d)(2) and (e), notice of the Public
Heanng was delivered m wnhng not later than the seventh day before the date of the public
heanng to the presiding officer of the governing body of each taxing unit that includes m 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 Crty 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. That the boundaries of the reinvestment zone shall be the boundaries as described m
Exhibit A which is attached hereto and made a part hereof;
1.3. The Zone meets the criteria for the designation of a reinvestment zone as set forth m
V T C.A., Tax Code, Section 312.202, as amended, m 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
1.4. Future improvements m the Zone will benefit the land included in the Zone as well as the
City for a period in excess often (10) years, which is the statutory maximum term of any
tax abatement agreement entered into under the Chapter 312 of the Code.
Section 2.
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described in the boundary description
attached hereto as Exhibit A and made a part of this Ordinance for all purposes as a
reinvestment zone for purposes of granting residential and commercial-industrial tax abatement,
as authorized by and in accordance with Chapter 312 of the Code. The Zone shall be known as
`Neighborhood Empowerment Reinvestment Zone No. 18, City of Fort Worth, Texas" The area
within the Zone is eligible for residential and commercial-industrial tax abatement pursuant to
Resolution No 2951 and M&C C 19551 and G-13984 as amended.
Section 3
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 Crty Council for one or more subsequent
terms of five (5) years or less.
Section 4
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~udgment.
Section 5
That this Ordinance shall take effect upon its adoption.
AND IT IS SO ORDAINED r
ADOPTED AND EFFECTIVE _ ~`~
APPROVED AS TO FORM AND LEGALITY
Cynthia rcia
Assistant City Attorney
Date:~~}~
M&C ~`~^ I ~"~
Exhibit A
Fort Worth Neighborhood Empowerment Reinvestment Zone No. 18
River View at Ridglea
General Description
The area to be designated as Fort Worth Neighborhood Empowerment Reinvestment Zone No
17 for tax abatement purposes contains a 7 786 acre tract of land and is described below
Situated in the S.H. McEntire Survey Abstract NO 1006, Tarrant County Texas, said tract
being part of Block A R, Ridgeway Manors No 3 Inc, an addition to the City of Fort Worth,
Texas according to the plat thereof recorded m Cabinet A, Slide 7061 of the Plat Records of
Tarrant County Texas, said 7 786 acre tract being more particularly described as follows.
BEGINNING at a %2-inch iron rod with `Pacheco Koch cap set at the southeast corner of said
Block A R, said point being at an angle point m the west right-of way hne of Bryant Irving Road
North (a variable width right-of way), said point being m the north hne of Ridgeway Manors No
1 Inc, an addition to the City of Fort Worth, Texas according to the plat recorded in Volume
388-G, Page 126 of said Plat Records of Tarrant County Texas, said point also being Due West,
a distance of 20 00 feet from the northeast corner of said Ridgeway Manors No. 1 Inc. addition,
THENCE, Due West, departing the said west line of Bryant Irvin Road North and along the said
north line of Ridgeway Manors No 1 Inc., a distance of 285 02 feet to a %Z-inch iron rod with
`DAA cap found at southeast corner of Ridglea Place, addition to the City of Fort Worth, Texas
according to the plat recorded m Cabinet A, Slide 8638 of said Plat Records of Tarrant County
Texas,
THENCE, departing the said north line of Ridgeway Manors No 1 Inc and along the east line
and the north line of said Ridglea Place, the following five calls.
Due North, a distance of 209.58 feet to a %2-inch iron rod with `DAA cap found at an
angle point;
North 45 degrees, 00 minutes, 00 seconds West, a distance of 115 1.4 feet to a %a-inch iron
rod with `DAA cap found at an angle point;
Due West, a distance of 18 10 feet to a %z-inch iron rod with `DAA cap found at an
angle point;
Due North, a distance of 235 00 feet to a %2-inch iron rod with `DAA cap found at the
northeast corner of Lot 1 Block 2R of said Ridglea Place;
Due West, a distance of 310 00 feet to a %2-inch iron rod with `DAA cap found m the
east right-of way line of Westndge Avenue (a variable width right-of way), said point
being the northwest corner of said Lot 1 Block 2R, said point also being the begmmng of
a non-tangent curve to the nght whose center bears South 76 degrees, 13 minutes, 38
seconds East, a distance of 1563.30 feet from said point;
THENCE, northerly along the said east line of said Westndge Avenue and along said non-
tangent curve to the nght, through a central angle of 00 degrees, 46 minutes, 56 seconds, an arc
distance of 21.34 feet, on a chord beanng and distance of North 14 degrees, 09 minutes, 50
seconds East, 21.34 feet, to a %i-inch iron rod with `Pacheco Koch cap set an the end of said
curve from which point a %2-inch iron rod found bears North 35 degrees, 09 minutes East, 0 6
feet;
THENCE, North 14 degrees, 38 minutes, 00 seconds East, continuing along the said east line of
Westndge Avenue, a distance of 254 85 feet to a %2-inch iron rod with `DAA cap found at the
northwest corner of said Block A R, said point being the intersection of the said east line of said
Westndge Avenue with the south nght-of way line of Milburn Street (a 50 foot wide nght-of
way), said point also being the beginning of anon-tangent curve to the left whose center bears
North 14 degrees, 38 minutes, 00 seconds East, a distance of 464 63 feet from said point;
THENCE, easterly along the said south line of Milburn Avenue and along the north line of said
Block A R, the following seven (7) calls.
In an easterly direction, along said non-tangent curve to the left, through a central angle
of 14 degrees, 38 minutes, 00 seconds, an arc distance of 118 67 feet, on a chord beanng
and distance of South 82 degrees, 41 minutes, 00 seconds East, 118.34 feet, to a %2-inch
iron rod with `DAA cap found at the end of said curve;
Due East, a distance of 161.55 feet to a %-inch iron rod with `DAA cap found at the
beginning of a tangent curve to the nght;
In an easterly direction, along said tangent curve to the nght, having a radius of 66 00
feet, through a central angle of 09 degrees, 19 minutes, 27 seconds, an arc distance of
10 74 feet, on a chord beanng and distance of South 85 degrees, 20 minutes, 16 seconds
East, 10 73 feet, to a %2-inch iron rod with `Pacheco Koch cap set at the end of said
curve;
South 85 degrees, 20 minutes, 16 seconds East, a distance of 105 66 feet to a %-inch iron
rod with `DAA cap found at an angle point;
South 83 degrees, 55 minutes, 00 seconds East, a distance of 85.32 feet to a %-inch iron
rod with `Pacheco Koch cap set at the begmmng of a tangent curve to the left;
In an easterly direction, along said tangent curve to the left, having a radius of 625 00
feet, through a central angle of 04 degrees, 26 minutes, 00 seconds, an arc distance of
48.36 feet, on a chord beanng and distance of South 86 degrees, 08 minutes, 00 seconds
East, 48.35 feet, to %2-inch iron rod with `DAA cap found at the end of said curve;
.~
South 88 degrees, 21 minutes, 00 seconds East, a distance of 96 96 feet to a %2-inch iron
rod with `Pacheco Koch cap set at the northeast corner of said Block A R, said point
being at the intersection of said south line of Milburn Street with said west line of Bryant
Irvin Road North (an 80 foot nght-of way at this point),
THENCE, Due South, departing the said south line of Milburn Street and along the said west line
of Bryant Irvin Road North, a distance of 753 64 feet to the POINT OF BEGINNING•
City of Fort Worth,. Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 6/8/2004 Ordinance No 15993
DATE Tuesday June 08 2004
LOG NAME 05NRTHAMPT REFERENCE NO G-14379
SUBJECT
Public Hearing for Designation of Fort Worth Neighborhood Empowerment Reinvestment Zone No
18 and Tax Abatement Agreement with River View at Ridglea L.P and Related Findings of -Fact by
the City Council
RECOMMENDATION
It is recommended that the -City Council.
1 Hold a public hearing concerning the designation of 7 786 acres of vacant land as described in
Appendix A, as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No 18 and
2. Adopt the attached ordinance which designates FWNERZ No 18 pursuant to the Texas Property
Redevelopment and Tax Abatement Act, -Tax Code Chapter 312, and
3 Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with River
View at Ridglea L.P are true and correct; and
4 Authorize the City Manager to enter into the attached Tax Abatement Agreement with River View at
Ridglea L.P in accordance with the Neighborhood Empowerment Zone Basic Incentives, as amended
DISCUSSION
Public Hearing and Ordinance on Neighborhood Empowwerment Reinvestment Zone Designation
One of the incentives a municipality can provide in a Neighborhood Empowerment Zone (NEZ) according
to Chapter 378 of the Texas Local Government Code is an abatement of municipal property taxes for
properties in the NEZ. It is proposed that the subject property described in Appendix A is be designated as
FWNERZ No 18 so the City can enter into a tax abatement agreement under the guidelines set forth in the
Tax Code
A public hearing is required by the Texas Property Redevelopment and Tax Abatement Act (the Act) Notice
of today's public hearing was (1) delivered to the governing body of each affected taxing unit, and (2)
published in the newspaper at least seven days prior to this meeting The Act requires the property
receiving a tax abatement to be located in a reinvestment or enterprise zone
The proposed area meets the criteria for the designation of a reinvestment zone 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 would be a benefit to the City after any Tax
Abatement Agreements that may be entered into have expired The proposed FWNERZ No 18 expires after
five years and may be renewed for periods not to exceed five years.
L~~name• OSNRTHAMPT PAQP. 1 of ~
II Tax Agreement with River View at Ridglea L.P
The property subject to abatement in the attached Tax Abatement Agreement with River View at Ridglea
L.P is located in west Fort Worth in the Ridglea Village/Como NEZ. This property is located in
Neighborhood Empowerment Zone No 2 and is proposed to be designated as Fort Worth Neighborhood
Empowerment Reinvestment Zone No 18 This reinvestment zone is located in Council District 3
Project
River View at Ridglea L.P is proposing to construct a 244-unit multi-family apartment complex on the
7 786-acre site Forty-nine of the units will be set aside for persons at or below 80% area median income
(AMI) The total investment is estimated at $17 000 000 and the construction cost, which will be the basis
of the tax abatement, at $12 720 000
TAX ABATEMENT TERMS
The tax abatement is structured as follows.
Amount and Limitation of Abatement
The actual amount of the abatement granted under the agreement shall be based upon the value of the
improvements constructed on the subject site but will not include the value of the site itself The abatement
in any given year shall be based on the increase in value of the required improvements up to a maximum of
$16 500 000 The estimated amount of the abatement over the 10 year term is $1 093,251
Duration of Abatement
The tax abatement will be in effect for ten years. The developer will be eligible to receive 100% abatement
on the eligible basis for the first five years, and receive tax abatement on the eligible basis for years six
through ten up to a rate of 100% dependent upon meeting specific performance measures
Commitments and Reduction of Basis for Years one to five
The information -below indicates the developer's commitment under the agreement and the corresponding
reduction to the abatement if the comrr~itment is not met during years one through five
Minimum Investment Default
20% set-aside (loss of abatement for each year not in compliance) 100%
Commitments and Proportionate Reduction for Years six to ten
The information below indicates the developer's commitment under the agreement and the corresponding
reduction to the abatement during years six through ten.
30% of Total Construction to Fort Worth Businesses 0-20%
25% of Total Construction to Fort Worth M/WBE Contractors 0-20%
15% of the 25% of the construction cost to Lake Como M/V1/BE 0-10%
T,n~name: 05NRTHAMPT PauP, ~ ~f'~
10 construction jobs for Lake Como residents 10%
$65 000 in annual Fort Worth based service contracts 0-5%
Landscaping tenant selection management plan and passing of yearly inspection by 10%
20% set-aside for affordable housing 0-20%
Six permanent jobs three to Fort Worth of which two shall be from the Lake Como area *0-
5
Audit yearly from year one but assess penalties during years six through ten
The project proposes to create 500 construction jobs (at least 10 for Lake Como residents) and at least six
permanent jobs (three jobs for Fort Worth residents two of which are to be from the Lake Como area)
invest more than $17 000 000 in Fort Worth contract $3 816 000 with Fort Worth contractors and contract
$3 180 000 00 with M/WBE firms:
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that no expenditure of City funds is associated with the approval of this
agreement.
TO Fund/Account/Centers FROM Fund/AccountlCenters
'Submitted for City Manager's Office b~ Reid Rector (6140)
Originating Department Head Jerome Walker (7537)
Additional Information Contact: Jerome Walker (7537)
t
Losname• OSNRTHAMPT Prue ~ ~f ~