HomeMy WebLinkAboutOrdinance 15160f~/~~
ORDINANCE NO.
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF
FORT WORTH AS "NEIGHBORHOOD EMPOWERMENT
REINVESTMENT ZONE No. 3, 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 February 29, 2000 of
Resolution No 2617 (M&C G-12829), 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 July 23, 2002, the City Council designated the Ridglea
Village/Como 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 Zone No 3 is located within the
Ridglea Village/Como Neighborhood Empowerment Zone, and
1
WHEREAS, the Neighborhood Empowerment Zone No 3 will promote the
creation of affordable housing in the zone and an increase in economic development in
the zone, and
WHEREAS, on July 23, 2002, the City Council held a public hearing 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 Hearing"),
as required by Section 312.201(d) of the Code, and
WHEREAS, notice of the Public Hearing was published in a newspaper of
general circulation in the City on July 12, 2002 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
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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. That the boundaries of the reinvestment zone shall be the boundaries as
described in 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
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
1.4. Future improvements in the Zone 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 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 Three, City of Fort Worth, Texas" The area within the Zone is eligible for
residential and commercial-industrial tax abatement pursuant to Resolution No 2617
and M&C G-13208R.
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 City 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 judgment.
Section 5.
That this Ordinance shall take effect upon its adoption
AND 1T IS SO ORDAINED
ADOPTED AND EFFECTIVE ~ a'3 b
APPROVED AS TO FORM AND LEGALITY
By~
C thi Garcia
Assistant City Attorney
Date ~/~ ) ~ ~~
;f
EXHIBIT "A"
Lesal Description
Sections 1,2 and 3 and the North portion of Section 4, RIDGLEA APARTMENTS, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to plat recorded in
Volume 388-D, Page 53, Deed Records of Tarrant County, Texas; being more fully
described below
Section 4 North of Milburn Street
BEGINNING at the northwest corner of that certain portion of sold Section 4 conveyed to the
City of Fort Worth for an extension of Milburn Street by deed in Volume 5212, Page 962, of the
Tarrant County Deed Records sold point being in the most westerly west line of sold Section 4
and the east line of Winthrop Avenue (50 foot wide right-of--way), from which point a '/z" Iron
rod found in place bears North 9 degrees East, 0.39 foot and said point of beginning being 173 49
feet South from the most westerly northwest corner of said Section 4 and the most westerly
southwest corner of Section 2 in said Ridglea Apartments:
THENCE with common lines between said Sections 4 and 2, the following courses and distances.
East, 185 0 feet:
North, 15 0 feet:
East 15 0 feet:
North 189.93 feet to a 5/8" iron rod found in place for corner and,
East 50.0 feet to the common east corner of said Sections 4 and 2 in the west line
Of Bryant-Irvin Road (formerly Guilford Road-60 foot wide right-of-way)•
THENCE South with the east line of said Section 4 and sold west line of Bryant-Irvin Road,
349.21 feet to the northeast corner of said City of Fort Worth tract for Milburn Street, from which
point a ''/z" iron rod found in place for the southeast corner of said tract for Milburn Street bears
South 0 degrees, 13 minutes East, 49 42 feet:
THENCE westerly with the north line of said City tract for Milburn Street, the following courses
and distances.
North 88 degrees, 21 minutes West, 115.93 feet to the beginning of a curve whose
center bears North 1 degree, 39 minutes East, 575 0 feet;
westerly with said curve, a distance of 44 49 feet to the end of said curve: and
North 83 degrees, 55 minutes West, 90.25 feet to the PLACE OF BEGINNING
City of'Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
7/23/02 G-13679 05ZONE-3 1 of 3
SUBJECT .PUBLIC HEARING FOR DESIGNATION OF FORT WORTH NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NO 3 AND TAX ABATEMENT
AGREEMENT WITH J KLINE, LLC AND WP SOUTH ACQUISITIONS, LLC AND
RELATED FINDINGS OF FACT BY THE CITY COUNCIL
RECOMMENDATION
It is recommended that the City Council
Hold a public hearing concerning the designation of 9 37 acres of vacant land, as described in
Appendix A, as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No 3, and
2 Adopt the attached ordinance which designates FWNERZ No 3 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 J,
Kline, LLC and WP South Acquisitions, LLC are true and correct; and
4 Authorize the City Manager to enter into the attached Tax Abatement Agreement with J Kline, LLC
and WP South Acquisitions, LLC in accordance with the Neighborhood Empowerment Zone Basic
Incentives, as amended
DISCUSSION
PUBLIC HEARING AND ORDINANCE ON NEIGHBORHOOD EMPOWERMENT
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. The subject property described in Appendix A is being
designated as :FWNERZ No 3 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 3 expires after five years and may be renewed for periods not to
exceed five years
City of Fort Worth, Texas
Mayor and Council Communication
7/23/02 J G-13679 J 05ZONE-3 J 2 of 3
sus~ECT PUBLIC HEARING FOR DESIGNATION OF FORT WORTH NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NO 3 AND TAX ABATEMENT
AGREEMENT WITH J KLINE, LLC AND WP SOUTH ACQUISITIONS, LLC AND
RELATED FINDINGS OF FACT BY THE CITY COUNCIL
TAX AGREEMENT WITH J. KLINE, LLC AND WP SOUTH ACQUISITIONS, LLC
The property subject to abatement in the attached Tax Abatement Agreement with J Kline, LLC and
WP South Acquisitions, LLC 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 3 This reinvestment zone is
located in COUNCIL DISTRICT 3
Project
J Kline, LLC and WP South Acquisitions, LLC are proposing to construct a 252-unit multi-family
apartment complex on the 9 3-acre site Fifty of the units will be set aside for persons at or below
80% area median income (AMI) The total investment is estimated at $18,890,691, and the
construction cost, which will be the basis of the tax abatement, at $14,366,486
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 $30,000,000 The estimated amount of the abatement over the 9 year term is
$869,890
Duration of Abatement
The tax abatement will be in effect for 9 years The developer will be eligible to receive 100%
abatement on the eligible basis for the first 5 years, and receive tax. abatement on the eligible basis
for years 6 through 9 at the rate of 80%, 60%, 40%, and 20%, respectively
Commitments and Reduction of Basis for Years 1 to 5
The information below indicates the developer's commitment under the agreement and the
corresponding reduction to the abatement if the commitment is not met during years 1 through 5
• Minimum Investment Default
• 20% set-aside (loss of abatement for each year not in compliance) 100%
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
7/23/02 G-13679 05ZONE-3 3 of 3
SUBJECT PUBLIC HEARING FOR DESIGNATION OF FORT WORTH NEIGHBORHOOD
EMPOWERMENT REINVESTMENT ZONE NO 3 AND TAX ABATEMENT
AGREEMENT WITH J KL(NE, LLC AND WP SOUTH ACQUISITIONS, LLC AND
RELATED FINDINGS OF FACT BY THE CITY COUNCIL
Commitments and Proportionate Reduction for Years 6 to 9
The information below indicates the developer's commitment under the agreement and the
corresponding reduction to the abatement if the commitment is not met during years 6 through 9
• 25% of Total Construction to Fort Worth Businesses 0-20%
• 30% to M/WBE 0-10%
• 30% of M/WBE to Fort Worth MNVBE 0-10%
• 20% set-aside for affordable housing 0-20%
• 6 jobs, 3 to Fort Worth, 1 Central City* 0-20%
• Passing of yearly inspection* 0-10%
• Landscaping, tenant selection, management plan and uses of premises* 0-10%
*Audit yearly from year one but assess penalties during years 6 through 9
The project proposes to create 550 construction jobs and at least 6 permanent jobs, invest more than
$18,000,000 in Fort Worth, contract $3,591,621 with Fort Worth contractors, and contract $4,309,946
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.
RR.k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Reid Rector 6140
Originating Department Head:
Jerome Walker 7537 (from) APPROVED 07/23/02
ORD.# 15160
Additional Information Contact:
Elizee Michel 7336