HomeMy WebLinkAboutOrdinance 15061:_
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ORDINANCE NO. /y~~
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF
FORT WORTH AS "NEIGHBORHOOD EMPOWERMENT
REINVESTMENT ZONE TWO, CITY OF FORT WORTH, TEXAS";
PROVIDING THE EFFECTIVE AND EXPIRATION DATES FOR THE
ZONE AND A MECHANISM FOR RENEWAL OF THE ZONE;
CONTAINING OTHER MATTERS RELATED TO THE ZONE; AND A
SEVERABILITY CLAUSE AND EFFECTIVE DATE.
WHEREAS, pursuant to the City Council's adoption on February 26, 2002 of Resolution
No 2811 (M&C G-13540), 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 m 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 m accordance with Chapter 312 of the Code; and
WHEREAS, on July 31, 2001, the Crty Council approved basic incentives for qualified
properties or protects in all Neighborhood Empowerment Zones (M&C G-13208R), including
municipal property tax abatement, development fee waivers, impact fee waivers, and release of
City hens, and
WHEREAS, on April 2, 2002, the Crty 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
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increase in the quality of social services, education or public safety provided to the residents of
the zone; and
WHEREAS, on April 2, 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 312.20.1 (d) of the Code; and
WHEREAS, nonce of the Public Hearing was published in a newspaper of general
circulation m the Crty on March 26, 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, 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 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 m 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.
1.2. 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 m the zone that would be a benefit to the
property and that would contribute to the economic development of the municipality
1.3. Future improvements in the Zone will benefit the land included m the Zone as well as the
City for a period m 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 m 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 Two, City of Fort Worth, Texas" The area
within the Zone is eligible for residential and commercial-industrial tax abatement pursuant to
Resolution No 2811 and the Neighborhood Empowerment Zone Basic Incentive approved in
M&C G-13208R and as amended.
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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
mvahd, inoperative or void for any reason by a court of competent ~unsdiction, the remaining
portions, sections or parts of sections of this Ordinance shall be and remain m 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 rts adoption.
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE C ~-- ~-®~
APPROVED AS TO FORM AND LEGALITY
By.
Cynthia U°arci~-~
Assistant City Atto~rne/y
Date ~:~~ 1 `7 `~~ - ~~.
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A Resolution
NO. ~ ~~
DESIGNATION OF RIDGLEA V]LLAGE/COMO AREA AS A
NEIGHBORHOOD~EMPOWERMENT ZONE
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WHEREAS, on April 25, 2000, the City of Fort Worth City Council ("Council's approved a
Policy Statement on the Creation of Local Neighborhood Empowerment Zones; and
WHEREAS, on October 3, 2000, the City Council approved the criteria to determining whether
an area would be eligible to be designated as a Neighborhood Empowerment Zone; and
WHEREAS, the City Council finds that the creation of the Ridglea Village/Como Neighborhood
Empowerment Zone ("Ridglea Village/Como NEZ") would 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 City Council finds that the .creation of the Ridglea VillagelComo NEZ benefits
and is for the public purpose of increasing public health, safety and welfare; and
WHEREAS, the City Council finds that the Ridglea Village/Como NEZ satisfies the
requirements of §312.202 of the Tax Code.
NOW, THEREFORE, BE TT RESOLVED BY THE. CITY COUNCII. OF THE CI'T'Y OF
FORT WORTH, TEXAS THAT
Section 1. The facts and recitations contained in the preamble of this Resolution are hereby found and
declared to be true and convect.
Section 2. The Ridglea Village/Como NEZ is hereby created as defined by the map shown on Exhibit A.
Section 3. The City Council adopts all basic incentives as descritbed in the Neighborhood Empowerment
Zone Basic Incentives (Attached as Exhibit B) for the Ridglea Village/Como NEZ.
Section 4 The designation shall expire on April 1, 2012.
Adopted this ~ day of f L , 2002
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Mayor Kenneth Ban
CITY OF FORT WORTH
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EXHIBIT A
Fort Worth Neighborhood Empowerment
Reinvestment Zone No. 2
General Description
The area to be designated as Fort Worth Neighborhood Empowerment
Reinvestment Zone No 2 for tax abatement purposes contains 1 49 square
miles of land and is described below
On the North: Beginning at the intersection of Camp Bowie Boulevard
and the eastbound service road of Interstate 30 West. Thence east on the
eastbound service road to Neville Street.
On the East: Beginning at the intersection of the eastbound service road of
Interstate 30 West and Neville Street. Thence south on Neville Street to
the unnamed creek flowing southeast from Lake Como Thence southeast
along the creek centerline to its intersection with the northeastern corner of
Lot 1, Block 70 of the Chamberlain-Arlington Heights Subdivision, Second
Addition. Thence south along the eastern property lines of Lots 1 and 40,
Block 70, Lots 1 and 40, Block 73, Lots 1 and 40, Block 88, Lots 1 and 40,
Block 91, Lots 1 and 40, Block 106, Lots 1 and 40, Block 109, Lot 1,
Block 124, of the Chamberlain-Arlington Heights Subdivision, Second
Addition, as recorded m Volume 63, Page 44, and of Lots 3A and 37R,
Block 124R, as recorded in Volume 388-139, Page 96 of the Tarrant
County plat records, to Vickery Boulevard. This line also coincides with
the r o w of the platted, but unconstructed portion of Pentecost Street, part
of the Chamberlain-Arlington Heights Subdrnsion, Second Addition plat,
as recorded in Volume 63, Page 44 of the Tarrant County plat records The
entire eastern boundary described above also coincides with the shared
eastern boundary of the Lake Como and East Libby Avenue N ~11~~oi~
Associations ~,;~~~~v~:~ °~ ~~~Q
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On the South: Beginning at the intersection of the abo ~~~~~~b~'~ ~~,
boundaries of the Chamberlain-Arlington Heights Subdrvisi = n, Saco d '
Addition, also described as the shared eastern boundary of the Lake Como
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and East Libby Avenue Neighborhood Associations, and Vickery
Boulevard. Thence southwest along Vickery Boulevard to its intersecrion
with Ridglea Lane
On the West: Beginning at the intersection of Vickery Boulevard and
Ridglea Lane Thence north along the paved Ridglea Lane to its
termination at the southeastern corner of Lot 16, Block 51 of the Ridglea
Addition, as recorded m Volume 388-G, Page 14 of the Tarrant County plat
records. Thence continue north along the rear property lines of lots 16
through 6, Block 51, the eastern terminus of Ridgeway Street, and the
eastern property line of Lot 5, Block 51, of the Ridglea Addition, all
recorded in Volume 388-G, Page 14 of the Tarrant County plat records, to
the northeastern corner of said Lot 5 Thence west along the rear lot lines
of lots 5, 4, 3, 2, and 1, Block S 1,1Zidglea Addition, as recorded in Volume
388-G, Page 14 of the Tarrant County plat records, to Westridge Avenue
Thence north and northwest along Westridge Avenue to its intersection
with Ridglea Place Thence west around the circle on Ridglea Place to
Berme Anderson Avenue Thence northwest along Berme Anderson
Avenue to Camp Bowie Boulevard. Thence northeast along Camp Bowie
Boulevard to Fairfield Avenue Thence northwest along Fairfield Avenue
to the rear property line of Lot F, Block 20, Ridglea Addition, as recorded
in Volume 6927, Page 2377, of the Tarrant County deed records. Thence
northeast along said property line to Westridge Avenue Thence southeast
along Westridge Avenue to Camp Bowie Boulevard. Thence northeast
along Camp Bowie Boulevard to its intersection with the eastbound service
road of Interstate 30 West.
Description of Mixed Use Village Boundaries
On the North: Beginning at the intersection of Bernie Anderson Avenue
and Camp Bowie Boulevard. Thence northeast along Camp Bowie
Boulevard to Fairfield Avenue Thence northwest along Fairfield Avenue
to the rear property line of Lot F, Block 20, Ridglea Addition, as recorded
in Volume 6927, Page 2377, of the Tarrant County deed records. Thence
northeast along said property line to Westridge Avenue Thence southeast
along Westndge Avenue to Camp Bowie Boulevard. Thence no . ~~east_
along Camp Bowie Boulevard to its intersection with Bryant Irv rfi ~,~d~~~ G~~~~G~~
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On the East: Beginning at the intersection of Camp Bowie Boulevard and
Bryant Irvin Road North. Thence south along Bryant Irvin Road North to
the southern property line of Lot 1, Block B, Ridgeway Manors Addition.
On the South: Beginning at the intersection of Bryant Irvin Road North
and the southern property line of Lot 1, Block B, Ridgeway Manors
Addition, as recorded in Volume 1413$, Page 4, of the Tarrant County
deed records. Thence west along said property line to West7-idge Avenue
On the West: Beginning at the intersection of said property line and
Westridge Avenue Thence north and northwest along Westridge Avenue '
to its intersection Ridglea Place Thence west around the circle on Ridglea
Place to Bernie Anderson Avenue Thence northwest along Bernie
Anderson Avenue to Camp Bowie Boulevard
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CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) BASIC INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a " municipality determines 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 in the zone,
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone, or
(4) the rehabilitation of affordable housing in the zone."
The City, by adopting the following incentives, will promote affordable housing and
economic development in the NEZ. NEZ incentives will not be granted after the NEZ expires as
defined in the resolution designating the NEZ. For each NEZ, the City Council may approve
additional terms and incentives as permitted by Chapter 378 of the Texas Local Government
Code or by City Council resolution However, any tax abatement awarded before the expiration
of a NEZ shall carry its full term according to its tax abatement agreement approved by the City
Council
As mandated by state law, the property tax abatement under this policy applies to the
owners of real property Nothing in the policy shall be construed as an obligation by the
City of Fort Worth to approve any tax abatement application.
II. DEFINITIONS
"Abatement" means the exemption from ad valorem taxes on eligible properties for a period of
up to 10 years on 100% of the increase in appraised value over the year a tax abatement
agreement with the City is signed (as reflected on the certified tax roll of the appropriate county
appraisal district) resulting from improvements on the property Eligible properties must be
located in the NEZ.
"Base Value" is the value of the property, excluding land, as determined by the Tarrant County
Appraisal District, during the year rehabilitation occurs
"Bui/ding Standards Commission" is the commission created under Sec. 7-77, Article IV
Minimum Building Standards Code of the Fort Worth City Code
"Capital /nvestment" includes only real property improvements such as r
structures, site improvements, facility expansion, and facility modernization t
does NOT include land acquisition costs and/or any existing improvements, or
(such as machinery, equipment, and/or supplies and inventory)
"City of Fort Worth Tax Abatement Palicy Statement" means the policy
on February 29, 2000
"Commercial/Industrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance
"Community Facility Development Project" is a development project which proposes to construct
or rehabilitate community facilities on property that allows such .use as defined by the City of
Fort Worth Zoning Ordinance
"Eligible Rehabilitation" includes only physical improvements to real property Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies)
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking
"Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214
"Minority Business Enterprise (MBE)" and "Women Business Enterprise (WBE)" is a minority or
woman owned business that has received certification as either a certified MBE or certified
WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning.
Ordinance
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate multi-family residential living units on property that is (or meets the requirements to
be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning Ordinance
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code
III. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ. FULL ABAT ~E1~,~., O
YEARS ~~.al~j~I~~~~~~4a ~C~~i~~
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1 For residential property purchased before NEZ designation, a hom ovithle~ ~h`a`11a~~" b1e ~),/~j
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eligible to apply for a tax abatement by meeting the following ~~ ?~@ 1,d~~,, VV ~
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a. Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof o1`
primary residence by homestead exemption, and
b Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
c. Property is not in atax-delinquent status when the abatement application is
submitted
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following
a Property is newly constructed or rehabilitated after the date of final NEZ
designation, and
b Property is owner-occupied and is the primary residence of the homeowner
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption, and
c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property The seller or
owner shall provide the City information to support rehabilitation costs, and
d Property is not in atax-delinquent status when the abatement application is
submitted, and
e. Property is in conformance with the City of Fort Worth Zoning Ordinance
3 For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following
a. Property is newly constructed or rehabilitated by the investor after NEZ
designation; and
b For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property; and
c. Property is not in atax-delinquent status when the abatement application is
submitted, and
d Property is in conformance with the City of Fort Worth Zoning Ordinance
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1 Full Abatement for 5 years.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated multi-family development project in a NEZ must satisfy
the following
a At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U S Department of Ho~saad~lrba~_
Development) to persons with incomes at or below eighty per e~ .~1~0~/o,~~c~f~
median income based on family size City Council may waive r~~ ~u~c.h °~~°uu
affordability requirement on a case-by-case basis, and ~~~~' ~~~~~~~~G~~
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(1) For amulti-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
(2) For a rehabilitation project, the property must be rehabilitated after NE2:
designation Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000
2. Full Abatement for up to 10 years
Full abatements for multi-family development projects for up to 10 years are subject.
to City Council approval The applicant may apply with the Housing Department for
such abatement upon completion by satisfying the following
a At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U S Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size City Council may waive or reduce the 20%
affordability requirement on a case-by-case basis, and
(1) For amulti-family development project constructed after NEZ designation, the
project must provide at least. five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
(2) For a rehabilitation project, the property must be rehabilitated after NEZ
designation Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000, and
b Utilize Fort Worth companies for an agreed upon percentage of the total costs for
construction contracts, and
c. Utilize certified minority and women owned business enterprises for an agreed
upon percentage of the total costs for construction contracts
C COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
1 Full Abatement for 5 years.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated commercial/industrial and community facilities
development project in a NEZ must satisfy the following
a A commercial, industrial or a -community facilities devel ^, end, .p~rot~cf o
constructed after NEZ designation must have a minimum Capit I ~~!t~v~~s~~~~aaer`irr~a6f<~U~~
$75,000; or ~~ ~~`~1~~A( I~u~M
b For a rehabilitation project, it must be rehabilitated after NEZ desi n~t?tii~.;~lr~,~ft~r U
Rehabilitation costs on the property shall be at least 30% of th B~~e~~~t/a~i~e, o~h~~o
the property, or $75,000, whichever is greater
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2. Full Abatement for up to 10 years.
Full abatements for commercial, industrial or community facilities development
projects for up to 10 years are subject to City Council approval Applicants for such
projects shall apply with the City's Economic Development Office for tax abatemenf.
under the City of Fort Worth Tax Abatement Policy Statement for Qualifying
Development Projects The following guidelines in the Tax Abatement Policy
Statement shall apply only if the projects have or are projected to have more than 50
employees.
a. Hire Fort Worth residents for an agreed upon percentage (at least 25%) for new
full time jobs to be created and make a good faith effort to hire 100% Fort Worth
residents for all new jobs created as a result of the abatement.
b Commit to hire an agreed upon percentage of Fort Worth residents from an
eligible inner city census tract (as identified on Exhibit "A") for all new jobs
created as a result of the project. The agreed upon percentage shall be
determined by negotiation
D MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1 Full Abatement for 5 years.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use- development project in a NEZ must satisfy the
following
a. Residential uses in the project constitute 20 .percent or more of the total Gross
Floor Area of the project; and
b Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the Base
Value of the property, or $200,000, whichever is greater
2. Full Abatement for up to 10 years
Full abatements for mixed-use development projects for up to 10 years are subject to
City Council approval Applicants for such project shall apply with the City's
Economic Development Office for tax abatement under the City of Fort Worth Tax
Abatement Policy Statement for Qualifying Development Projects The following
guidelines in the Tax Abatement Policy Statement shall apply only if t e x~~.ec~~~
have or are projected to have more than 50 employees. ~r~~~~ s ~ G`~~~G~~
a Hire Fort Worth residents for an agreed upon percentage (at le st~~)~~~r^~~~sG~l~
full time jobs to be created and make a good faith effort to hire 00 - a~ Ford ~ ~ h~
residents for all new jobs created as a result of the abatement. ~~® ~~~9~~~0
b Commit to hire an agreed upon percentage of Fort Worth residents from an
eligible inner city census tract (as identified on Exhibit "A") for all new jobs
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created as a result of the project. The agreed upon percentage shall be
determined by negotiation
E. ABATEMENT GUIDELINES
1 If a NEZ is located in a Tax Increment Financing District City Council will determine
on a case by case basis if the tax abatement incentives in Section III will be offered
to eligible groiects. Eligible groiects must meet all eligibility reauirements specified in
Section III.
2. In order to be eligible to apply for a tax abatement, the property owner/developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer ,and
b Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
3 Properties under a contract for deed are not eligible for tax abatement.
4 Once a property owner of a residential property (including multi-family) in the NEZ
satisfies the criteria set forth in Sections III.A, E 1 and E.2. and applies for an
abatement, a property owner must enter into a tax abatement agreement with the
City of Fort Worth The tax abatement agreement shall automatically terminate if the
property subject to the tax abatement agreement is in violation of the City of Fort
Worth's Minimum Building Standards Code and the owner is convicted of such
violation A tax abatement granted under the criteria set forth in Section III.A can
only be granted once for a property in a NEZ for a maximum term of five years. If a
property on which tax is being abated is sold, the new owner may enter into a tax
abatement agreement on the property for the remaining term.
5 A property owner/developer of a multifamily development, commercial, industrial,
community facilities and mixed-use development project in the NEZ who desires a
tax abatement under Sections III B, C or D must:
a Satisfy the criteria set forth in Sections III B, C or D, as applicable, and Sections
III E 1 and E.2; and
b File an application with the Housing Department or the Economic Development
Office, as applicable, and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort W r~#~'~s-M~r~~'t~~m°
Building Standards Code regarding the property subject to h~~ 4~bM~Z'en~e~r~'~~7(~
agreement during the term of the tax abatement agreement. ~ - „ ~ ~~~~
d If a property in the NEZ on which tax is being abated is sold, he=rn~W ow
may enter into a tax abatement agreement on the property fob the~,~rem~in~ g~o
term ~~~
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F APPLICATION FEE
1 The application fee for residential tax abatements governed under Section III.A is
$25
2. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections III B, C 1 and D 1, is one-
half of one percent (0 5%) of the proposed project's Capital Investment, not to
exceed $1,000 The application fee will be refunded upon issuance of certificate of`
occupancy and once the property owner enters into a tax abatement agreement with
the City Otherwise, the Application Fee shall not be credited or refunded to any
party for any reason
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1 In order to be eligible to apply for fee waivers, the property owner/developer -must
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant; and
b Not have any City liens filed against any property owned by the applicant property
owner/developer, including but not limited to, weed liens, demolition liens, board-
up/open structure liens and paving liens
2. Properties under a contract for deed are not eligible for development fee waivers
3 In order for Development Fees and/or Impact Fees to be waived for new
construction or rehabilitation projects located in the NEZ, a property owner must
submit an application to the City
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the project. Before construction, the applicant must
ensure that the project is located in the correct zoning district.
B. DEVELOPMENT FEES
Once the Application for NEZ Incentives has been approved by the City, the following
fees for services performed by the City of Fort Worth for projects in the NEZ are waived
for new construction projects or rehabilitation projects that expend at least 30% of the
Base Value of the property on Eligible Rehabilitation costs
1 All building permit related fees (including Plans Review and Inspections)
2 Plat application fee (including concept plan, preliminary plat, final plat, short form
replat) .. __-..__..
3 Board of Adjustment application fee i~~z ~,,~r ~ ~ 1 ~G J
~,~~~.~~~ ~CCG~G~
4 Demolition fee ~ 4 ~; ~n
f%=~ i1 U' ~~1~~'t~Q U
5 Structure moving fee ~ `~
6 Community Facilities Agreement (CFA) application fee ~~'~, ~ ~ ~,~~~`~ ~~o
7 Zoning application fee
8 Street and utility easement vacation application fee
7
•
Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C IMPACT FEE
1 Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied
2. Commercial, industrial, mixed-use, or community facility development projects in the
NEZ.
a Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project.
b If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter, then City Council approval is
required Applicant may request the additional amount of impact fee waiver
through the Housing Department.
V. RELEASE OF CITY LIENS
The following City liens may be released for eligible properties or projects in a NEZ.
A. WEED LIENS
The following are eligible to apply for release of weed liens
1 Single unit owners performing rehabilitation on their properties
2. Builders or developers constructing new homes on vacant lots
3 Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties
4 Developers constructing new multi-family, commercial, industrial, mixed-use or'
community facility development projects
B. DEMOLITION LIENS
Builders or developers developing or rehabilitating a property are eligible to apply for
release of demolition liens for up to $30,000 Release of demolition liens in excess of
$30,000 is subject to City Council approval
C BOARD-UP/OPEN STRUCTURE LIENS ,~+~C~J'~6~~~ ~~~~~r,~n
,, 6 lul iJ
The following are eligible to apply for release of board-up/open structure li n~x~~ ~r~'~Gp~~~~
1 Single unit owners performing rehabilitation on their properties t '~~ ~'=~'~~ ~ °
2. Builders or developers constructing new single family homes on vacant lots
3 Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties
8
4 Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects
D PAVING LIENS
The following are eligible to apply for release of paving liens
1 Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots
3 Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4 Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects
E. ELIGIBLE RECIPIENTS/PROPERTIES
1 In order to be eligible to apply for release of City liens, the property owner/developer
a must not be delinquent in paying property taxes for any property owned by
the owner/developer
b must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years, and
c. must not have any City of Fort Worth liens filed against any other property owned
by the applicant property owner/developer "Liens" includes, but is not limited to,
weed liens, demolition liens, board-up/open structure liens and paving liens.
2 Properties under a contract for deed are not eligible for release of City liens
VI. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
The applicant for NEZ incentives under Sections III.A, B, C 1, D 1, IV, and V must
complete and submit a City of Fort Worth "Application for NEZ Incentives" and pay
the appropriate application fee to the Housing Department or the Economic
Development Office, as applicable
2. The applicant for incentives under Sections III C.2 and D.2 must complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the Economic Development Office The application fee, review,
evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy
Statement for Qualifying Development Projects
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS IILA B C~1~~ ~~~.a~ I ~
AND V ~ ° ~ ~~u'~ U ~~~ ~r@,~~C~G°~~
~~ ~a ~I~sx'~WUSU
1 The Housing Department will review the application for accuracy and ~~ ~ ;~.,~1 p~~
completeness. Once complete, Housing Department will certify eligib.~r,~~f tf1e~ °
application based on the criteria set forth in Section III A, B, C 1, D 1, IV, and V of
this policy, as applicable Once an application is certified, the Housing Department
9
will inform appropriate departments administering the incentives about the certified
application An orientation meeting with City departments and the applicant may be
scheduled The departments include
a Housing Department: property tax abatement for residential properties and multi-•
family development projects, release of City liens
b Economic Development Office property tax abatement for commercial,
industrial, community facilities or mixed-use development projects
c. Development Department: development fee waivers
d. Water Department, impact fee waivers
e Other appropriate departments, if applicable
2 Once Development Department, Water Department, Economic Development Offices
and/or other appropriate department receive a certified application from the Housing
Department, each department/office shall fill out a "Verification of NEZ Incentives for
Certified NEZ Incentives Application" and return it to the Housing Department for
record keeping and tracking
C APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1 -Property Tax Abatement for Residential Properties and Multi-family Development
Projects
a For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing Department will evaluate a completed and certified application
based on
(a) The project's increase in the value of the tax base
(b) Costs to the City (such as infrastructure participation, etc.)
(c) Percent of construction contracts committed to
(i) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (M/VVBEs)
(d) Other items which may be negotiated by the City and the applicant.
(2) Consideration by Council Committee
Based upon the outcome of the evaluation, Housing Department may present
the application to the City Council's Economic Development Committee
Should the Housing Department present the application to the Economic
Development Committee, the Committee will consider the application at an
open meeting The Committee may'
(a) Approve the application Staff will then incorporate the a
tax abatement agreement which will be sent to the City
Committee's recommendation to approve the agreement;
(b) Request modifications to the application Housing Dep~
discuss the suggested modifications with the applicant
requested modifications are made, resubmit the modifie
the Committee for consideration, or
10
•
(c) Deny the application The applicant may appeal the Committee's finding
by requesting the City Council to (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (C01
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement) Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use -Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b For a completed and certified application for more than five years of tax
abatement:
(1) The Economic Development Office will evaluate a completed and certified
application based on
(a) The project's increase in the value of the tax base
(b) Costs to the City (such as infrastructure participation, etc.)
(c) Percent of construction contracts committed to
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (M/WBEs)
(d) Other items which may be negotiated by the City and the applicant.
(2) Consideration by Council Committee
Based upon the outcome of the evaluation, the Economic Development
Office may present the application to the City Council's Economic
Development Committee Should the Economic Development Office present:
the application to the Economic Development Committee, the_Committee 'In
consider the application at an open meeting The Committee .~~y~ ~~~~ ~~~(~~~
~ ~~~
a A rove the a lication Staff will then incor orate the `Ji ~ ~ ~ ~~~`~ ~ ~ ~ °
() PP PP ~ P PP~,,kio,a~r,,ir~o~~;~u
tax abatement agreement which will be sent to the City Co~ancil,,``~~~ ith~th`,let
' ~L ~~9 ~~~J~:tiw~~ UC~a
Committee s recommendation to approve the agreement~~~.~,2
(b) Request modifications to the application Economic Development Office
staff will discuss the suggested modifications with the applicant and then,
11
if the requested modifications are made, resubmit the modified application
to the Committee for consideration, or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City 'Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement) Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
3 Development Fee Waivers
a. For certified applications of development fee waivers that do not require Council
approval, the Development Department will review the certified applicant's
application and grant appropriate incentives.
b For certified applications of development fee waivers that require Council
approval, City staff will review the certified applicant's application and make
appropriate recommendations to the City Council
4 Impact Fee Waiver
a For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives
b For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council
5 Release of City Liens
For certified applications of release of City liens, the Housing Department will release
the appropriate liens "'~"`~ ~ "'-""""
..~
~1~~P~~~-~~~~ w C~~[',aD
VII. OTHER RULES PERTAINING TO PROPERTY TAX ABATEMENT ~°~l~af ~~j~'~~)~s ~`~
A. RECAPTURE ~j33 ~"~~3~':~'~`~9 ~~~~,
12
•
•
If the terms of the tax abatement agreement are not met, the City Council has the right to
cancel or amend the abatement agreement. In the event of cancellation, the recapture of
abated taxes shall be limited to the year(s) in which the default occurred or continued
B.
C
D
INSPECTION AND FINANCIAL VERIFICATION FOR MULTI-FAMILY, COMMERCIAL/
INDUSTRIAL, COMMUNITY FACILITIES AND MIXED-USE DEVELOPMENT
PROJECTS
The terms of the agreement shall include the City of Fort Worth's right to (1) review and
verify the applicant's financial statements in each year during the life of the agreement
prior to granting a tax abatement in any given year, (2) conduct an on site inspection of
the project in each year during the life of the abatement to verify compliance with the
terms of the tax abatement agreement.
EVALUATION FOR MULTI-FAMILY, COMMERCIAL/ INDUSTRIAL, COMMUNITY
FACILITIES AND MIXED-USE DEVELOPMENT PROJECTS
Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
owner is in compliance with each applicable term of the agreement. Failure to
report this information and to provide the required certification by the above
deadline shall result in cancellation of agreement and any taxes abated in the
prior year being due and payable.
EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY
If a property in the NEZ on which tax is being abated is sold, the new owner may enter
into a tax abatement agreement on the property for the remaining term. Any sale,
assignment or lease of the property which is not permitted in the tax abatement
agreement results in cancellation of the agreement and recapture of any taxes abated
after the date on which an unspecified assignment occurred
VIII. OTHER INCENTIVES
A.
B.
Plan reviews of proposed development projects in the NEZ will be expedited by the
Development Department.
The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ.
~~~~~~i~~t~ G~~~rc,~G?D
1 Municipal sales tax refund ~~~~~ ~i^~SU~~~~
2. Homebuyers assistance n~~~;~ ~
3 Gap financing _ ~~ 1"~~~~~ ~~~%
4 Land assembly
5 Conveyance of tax foreclosure properties
13
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6 Infrastructure improvements
7 Support for Low Income Housing Tax Credit (LIHTC) applications
8 Land use incentives and zoning/building code exemptions, e g ,mixed-use, density
bonus, parking exemption
9 Tax Increment Financing (TIF)
10 Public Improvement District (PID)
11 Tax-exempt bond financing
12. New Model Blocks
13 Loan guarantees
14 Equity investments
15 Other incentives that will effectuate the intent and purposes of NEZ.
~~~~~~~~ G~~~C71~~
E±± '~ ~~~G~~~G~~
a c~~~~~- ~~~n
14
•
CITY OF FORT WORTH
•
POLICYSTATEMENT ON THE
CREATION OF LOCAL NEIGHBORHOOD EMPOWERMENT ZONE (NEZ)
I. GENERAL PURPOSE AND OBJECTIVES
A. A Neighborhood Empowerment Zone (NEZ) must be established for the public
purpose of increasing public health, safety, and welfare of the citizens of Fort Worth
in accordance with Chapter 378 of the Texas Local Government Code ("Statute").
B NEZs must promote:
1 The creation of affordable housing m the zone;
2. An increase m economic development m the zone;
3 An increase in the quality of social services, education, or public safety provided.
to residents in the zone; or
4 The rehabilitation of affordable housing m the zone.
II. CREATION OF A NEIGHBORHOOD EMPOWERMENT ZONE (NEZ)
A. Adoption by the City Council. The City Council shall create a NEZ by adopting a
resolution that will contain.
1 The determmahon that the proposed NEZ meets the requirements in I.B above;
2. A description of the NEZ boundaries;
3 A finding that the creation of the NEZ benefits and is for the public purpose of
increasing the public health, safety and welfare of the people of Fort Worth, and
4 A finding that the creation of the NEZ satisfies the requirements of Sec. 312.202
of the Tax Code -Criteria for Reinvestment Zone (Attachment A).
B Local Selection Criteria
In order for a Neighborhood Empowerment Zone to be designated by the City
Council, the proposed Neighborhood Empowerment Zone area must meet the
following criteria.
1. In accordance with Chanter 378 of the Texas Local Government Code, the proposed
Neighborhood Empowerment Zone must promote:
a. The creation of affordable housing in the zone;
b An increase m economic development m the zone• ~~~Q~~~ ~1~~r~~G~~
c. An increase m the auahty of social services_ educ t~~r~fl~c~rtc~~t,'t~~~~(01~7
safetyprovided to residents m the zone: or p~~~,, ~,~ ~,
d. The rehabilitation of affcrdable hnusm~ m the Anne 9fU~a ~~Y~~ ~ `~~
2. A NEZ shall be at least 50% Community Development Block Grant (CDBG)-
eligible or 50% within the central city, as defined by M&C G-12976.
U
LJ
a. A NEZ should be bounded by clearly defined boundaries (streets, railroads,
creeks or other logical boundaries)
b A NEZ may encompass an existing neighborhood or several neighborhoods.
c. A NEZ may include an area m more than one NEZ.
d. The population in a NEZ shall not be more than 6,000 or the NEZ area shall.
be no larger than 1.5 square miles at the time of designation.
2. If a proposed NEZ boundary includes an urban village as defined in the 2002,
Comprehensive Plan, a logical, defensible area of the urban village as determined by
the Crtv of Fort Worth must be zoned mixed-use. Eligible mixed-use zomn~
classifications include: "MU-1" Low Intensity Mixed-Use District "MU-2" High
Intensity Mixed-Use District and a compatible "PD" Planned Development District,
as defined m the City of Fort Worth Zoning Ordinance.
3 Meet the critieria for a Reinvestment Zone as attached m Exhibit A
Priority will be given to areas within or which include
1 State or federal designated enterprise or empowerment zones,
3 Mixed-use growth centers, as defined and identified by the proposed City's
Comprehensive Plan,
4 Existing Model Blocks or special target areas recognized by the City;
5 A high priority commercial corridor; or
6 U S Department of Housing and Urban Development (HUD)-eligible areas.
C Selection Process
1 Based on the requirements and criteria set forth above, City staff will identify
areas eligible for NEZ designation. The City Council may select one or more
NEZs from staff recommendation. Eligible areas may also apply for NEZ
designation.
2 Upon determination of one or more NEZs, the ,City Council shall specify the
incentives for each NEZ based on City staff's recommendation.
3 The City Council may appoint an Advisory Committee for each NEZ to be
composed of representatives from neighborhood groups in the NEZ, non-profit
organizations, foundations, private businesses, educational and Earth institutions to
provide advice m the implementation of the NEZ.
III. INCENTIVES V~~~~~~~ ~j~~~~~MMn
The City Council shall specify the incentives for each NEZ m the resolutio c ~n~`'n~ ~~~~~~~ U
NEZ. The following are the incentives that maybe provided m the NEZ ~a ~, ~~~)v'~~ `~~~~~
A. Incentives to be Considered for Each NEZ in Accordance with the Statute:
1 Waive fees related to the construction or rehabilitation of buildings m the zone,
including fees related to the inspection of buildings and impact fees.
2
• •
2. Release of City of Fort Worth liens.
3 Enter into agreements for a period not more than 10 year for sales tax refunds oY•
abatement of municipal sales tax on sales made in the zone.
4.Enter into agreements abating municipal property tax on property m the zone
subject to the duration limits of Sec 312.204 of the Tax Code (10 years)
In addition, tax abatement and refund agreements for economic or housing
development projects, mixed-use projects and businesses must ensure that the
applicant shall.
1 Hire Fort Worth residents for an agreed upon percentage of new full time fobs to
be created as a result of abatement or refund,
2. Commit to hire an agreed upon percentage of NEZ residents for all new jobs
created as a result of the project;
3 Utilize companies located m Fort Worth and the NEZ for an agreed upon
percentage of the total costs of construction and supply and service contracts, and
4 Utilize minority and women owned business enterprises (MWBE) for an agreed
upon percentage of the total costs for construction and supply and service
contracts m the manner provided m the City of Fort Worth's MWBE ordinance
(Ordinance No 11923, as amended)
B Other Incentives
The following incentives may also be available on a case by case basis to housing and
economic development projects or businesses, homebuyers or homeowners, or
specified areas within the NEZ qualified for these programs.
1 Homebuyers assistance
2 Gap financing
3 Land assembly
4 Conveyance of tax foreclosure properties
5 Infrastructure improvements
6 Support for Low Income Housing Tax Credit (LIHTC) applications
7 Land use incentives and zomng/buildmg code exemptions, e.g., mixed-use,
density bonus, parking exemption
8 Tax Increment Financing (TIF)
9 Public Improvement District (PID).
10 Tax-Exempt Bond Financing
11 New Model Blocks
12. Loan guarantees •~-~-~ ~ ~ _ -'
13 Equity Investments i~~7~~fai~~~~,~ ~~~~ C'°~D
14 Other incentives that will effectuate the intent and purposes of thi P , ~ ~ : F~ ~ ~ e
~~ ~ ~,~~~G~~
C Existing Incentives and Funding ~ ~g ~~~t~-~~~~ ~~
If the NEZ or a section thereof overlays with areas designated as state or~ federal r
enterprise zone, Model Blocks, or other special districts, all incentives and funding
available under these districts remain applicable.
IV. ADMINISTRATION
3
•
The Crty Manager is authorized to develop the administrative and procedural guidelines
m the implementation of this policy
V. AMENDMENTS TO THE POLICY
The Crty Council may amend this policy from time to time to further the purposes and
objectives of the Statute.
~~~a~~ G?~C JG?D
~~~~ 4~~~~G~~
~~~~ ~o
~y
4
Attachment A
Sec 312.202. Criteria for Reinvestment Zone.
(a) To be designated as a reinvestment zone under this subchapter, an area must:
(1) substantially arrest or impair the sound growth of the mumcipalrty creating the zone,
retard the provision of housing accommodations, or constitute an economic or social
liability and be a menace to the public health, safety, morals, or welfare m its present
condition and use because of the presence of:
(A) a substantial number of substandard, slum, deteriorated, or deteriorating structures,
(B) the predominance of defective or inadequate sidewalks or streets,
(C) faulty size, adequacy, accessibility, or usefulness of lots,
(D) unsanitary or unsafe conditions,
(E) the deterioration of site or other improvements,
(F) tax or special assessment delinquency exceeding the fair value of the land,
(G) defective or unusual conditions of title;
(H) conditions that endanger life or property by fire or other cause; or
(I) any combination of these factors,
(2) be predominantly open and, because of obsolete platting, deterioration of structures or
site improvements, or other factors, substantially impair or arrest the sound growth of the
municipality;
(3) be m a federally assisted new community located m ahome-rule municipality or m an
area immediately adjacent to a federally assisted .new community located in a home-rule
municipality;
(4) be located entirely in an area that meets the requirements for federal assistance under
Section 119 of the Housing and Community Development Act of 1974 (42 U S C.
Section 5318),
(5) encompass signs, billboards, or other outdoor advertising structures designated by the
governing body of the municipality for relocation, reconstruction, or removal for the
purpose of enhancing the physical environment of the municipality, which the legislature
declares to be a public purpose; or
(6) be 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
(b) For purposes of this section, a federally assisted new community is a federally assisted area.
(1) that has received or will receive assistance m the form of loan guarantees under Title X of
the National Housing Act (12 U.S C Section 1749aa et seq ), and
(2) a portion of which has received grants under Section 107 of the Housing and
Community Development Act of 1974 (42 U.S C Section 5307) m de~,p_ursuant t~..~e
authority created by that section for grants m behalf of new commun t ~r~s~i~t~d` de
~`v~
Title VII of the Housing and Urban Development Act of 1970 or Trtl ~o~:.r ~,, ~~si .~
~~ ~ ~ ~~, u
and Urban Development Act of 1968 or m behalf of new commum~y pr~j~ s~~a§~~i~~t~~~~
~~',~~~ ~
under Title X of the National Housing Act (12 U S C Section 1749 et ~eq~)~41Adc~e~~b~;
Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987 Amended by Acts - 9,
Leg., ch. 2, Sec. 14 09(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1106, Sec 29, eff.
Aug. 28, 1989
5
s
~~
`~ City of Fort Worth, Texas
Mayor and Council Communication
SUBJECT PUBLIC HEARING CONCERNING DESIGNATION OF THE RIDGLEA VILLAGE/COMO
AREA AS A NEIGHBORHOOD EMPOWERMENT ZONE AND AS FORT V110RTH
NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NO 2, AND
AMENDMENTS TO THE NEZ REGULATIONS
4/2/02
G-13580
05AMEND
1 of 3
RECOMMENDATION
It is recommended that the City Council
Hold a public hearing concerning the designation of the Ridglea Village/Como area as Fort 'Worth
Neighborhood Empowerment Reinvestment Zone (FWNERZ) No 2, and
2 Adopt the attached ordinance which designates FWNERZ No 2 pursuant to the Texas Property
Redevelopment and Tax Abatement Act, Tax Code, Chapter 312, and
3 Approve the amendments to the attached Policy Statement on the Designation of Local
Neighborhood Empowerment Zones (NEZs) to require mixed-use zoning of an urban village as
defined in the 2002 Comprehensive Plan as a prerequisite for the designation of that urban village
and surrounding neighborhoods as a NEZ, and
4 Approve the amendments to the attached Neighborhood Empowerment Zone (NEZ) Basic
Incentives (attached) to preclude automatic tax abatements to properties located in a NEZ when a
NEZ is in a Tax Increment Financing (T1F) district; and
5 Adopt the attached resolution to designate the Ridglea Village/Como area as a NEZ.
DISCUSSION
I PUBLIC HEARING AND ORDINANCE ON TAX REINVESTMENT ZONE DESIGNATION
One of the incentives a municipality can provide in a NEZ according to Chapter 378 of the Texas Local
Government Code is an abatement of municipal property taxes for properties in the NEZ. The Ridglea
Village/Como NEZ is being designated as a FWNERZ No 2 so that the City can enter into abatement
agreements under the guidance set forth in the Tax Code The exact boundaries of the zone are
described in Exhibit A of the attached ordinance
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 feast seven days prior to this meeting The Act requires the
property receiving an abatement to be located in a reinvestment or enterprise zone
The proposed area meets the criteria for the designation of a reinvestment zone 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
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
~` ~ City of Fort Worth, Texas
412/02
Mayor and Council Communication
G-13580
05AMEND
2of3
SUBJECT PUBLIC HEARING CONCERNING DESIGNATION OF THE RIDGLEA VILLAGE/COMO
AREA AS A NEIGHBORHOOD EMPOWERMENT ZONE AND AS FORT WORTH
NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NO 2, AND
AMENDMENTS TO THE NEZ REGULATIONS
The designation of a reinvestment zone expires after five years and may be renewed for periods not to
exceed five years
11 AMENDMENTS TO THE NEZ REGULATIONS
On February 12 and March 26, 2002, the City Council directed staff to make the following amendrnents
~ to NEZ regulations
Amend the Policy Statement on the Designation of Local NEZs (M&C G-12897 dated April 25,
2000, and G-13030 dated October 3, 2000, as amended) to require mixed-use zoning ~of an
urban village as defined in the 2002 Comprehensive Plan as a prerequisite for the designation
of that urban village and surrounding neighborhoods as a NEZ.
Section II B 4 is proposed to be added to the Policy Statement on the Designation of Local
NEZs
"If a proposed NEZ boundary includes an urban village as defined in the 2002
Comprehensive Plan, a logical, defensible area of the urban Village, as
determined by the City of Fort Worth, must be zoned mixed-use Eligible
mixed-use zoning classifications include "MU-1" Low Intensity Mixed-Use
District, "MU-2" High Intensity Mixed-Use District, and a compatible "PD"
Planned Development District."
Amend the NEZ Administrative Procedures (approved by the City Council on October 3, 2000,
M&C G-13030), and eligibility requirements to follow cone-step rather than atwo-step NEZ
designation process.
The NEZ Administrative Procedures were amended and approved by the City Manager
• Amend the NEZ Basic Incentives (approved by the City Council on July 31, 2001, M&C G-13208R)
to preclude automatic tax abatements to properties located in a NEZ when a NEZ is in a TlF
district.
Section III E. 1 is proposed to be •added to the NEZ Basic Incentives "If a NEZ is located in a
Tax Increment Financing District, City Council will determine on a case by case basis if the tax
abatement incentives in Section 111 will be offered to eligible projects. Eligible projects must
meet all eligibility requirements specified in Section III "
"^ -~.
_,~
City of Fort Worth, Texas
Mayor and Council Communication
DATE
4/2/02 REFERENCE NUMBER
G-13580 LOG NAME
05AMEND PAGE
3 of 3
suB.lECT PUBLIC HEARING CONCERNING DESIGNATION OF THE RIDGLEA VILLAGE/COMO
AREA AS A NEIGHBORHOOD EMPOWERMENT ZONE AND AS FORT V110RTH
NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NO 2, AND
AMENDMENTS TO THE NEZ REGULATIONS
111 RESOLUTION ON NEZ DESIGNATION FOR THE RIpGLEA/COMO AREA
On February 12, 2002, the City Council also directed staff to .proceed with preparing NEZ boundaries
for the 12 urban villages and surrounding neighborhoods Their designation as NEZs is contingent
upon rezoning of the urban villages to mixed-use Of the 12 urban villages, only Ridglea Village has
been rezoned to mixed-use and is therefore eligible for designation as a NEZ in accordance with
Chapter 378 of the Texas Local Government Code The NEZ boundaries are shown on Exhibit A of the
~ attached Resolution
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on City funds
RR.k
I
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 04/02/02
ORD.# 15061
Additional Information Contact: RESOLUTION NO 2823
Jerome Walker 7537