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HomeMy WebLinkAboutRES 19-202RESOLUTION NO. 19-202 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute all documents necessary to enter into an Agreement between the City of Beaumont and Beaumont Developers, LLC for economic development incentives under the Neighborhood Empowerment Zone Program for the redevelopment of a hotel at 625 Orleans in Downtown Beaumont. The Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of September, 2019. RICH WITH OPPOETQSITT RUN* T ' $ ' g ' A ' S CITY OF BEAUMONT APPLICATION FOR NEIGHBORHOOD EMPOWERMENT ZONE DEVELOPMENT INCENTIVES The purpose of this application is to present to the City of Beaumont a reasonably comprehensive outline of the project for which the incentives are requested. Please review the Neighborhood Empowerment Zone guidelines carefully before completing this application. If additional space is needed, separate sheets may be attached. Types of incentives that you are seeking: ID/ Building Fee Waivers V Expedited Permit Review ❑ Lien Waivers Tax Abatement DESCRIPTION OF PROJECT 1. Legal name and address of applicant:m 2. Type of organization (Corporation, Ltd. Partnership, etc.): L L-C— 3. Date organization formed: 2?127 1t `1 4. Address and telephone number of headquarters location: P-5 e-3 L -d� L.,4- 714 6J 5. State(s) in which business is registered: 6. Other locations of this business (names of cities): ri/pf 7. Is business current with all taxes? E5 8. Name, address, and telephone number of principal officers: AAAc-r—P�� �„ � UA--ml l i 9. Name, address & phone number of designated contact person 10. Type of business to be conducted and goods or services to be produced or provided: { 1pT igPtu2.t 11. Location of project (street address): (DZ Of-t-Vf�"7!F� STV-9��% 12. Legal.Uot, block & subdivision) description of the project (Attach plat of property): 13. Identify and describe the kind, number and location of all improvements to the physical property and discuss the development schedule of the proposed improvements. EXHIBIT "A" 14. What infrastructure construction will be required to serve the proposed project? What is the estimated cost of this construction? TO 01 k( t tuao N 15. Estimated construction commencement date: 5&PTen—rrra eV_ 16. Estimated construction completion date: a-0qqUqMY-" 202� 17. Estimated date for project to be operational: aAwap-" ' 2©'L.--_' 18. City liens requested to be released: Y15�5 EMPLOYMENT MIPACT (for Non-residential Projects) 19. What is the estimated number of permanent full-time new jobs that will be created? 20. What percentage of employees do you anticipate will be residents living in: (a) the Neighborhood Empowerment Zone = 30 Y. (b) City of Beaumont = eo ` . (c) Jefferson County = t0 y, (d) Outside Jefferson County 4c 0-:/, 21. How many new, temporary and part-time jobs will be created in Beaumont? = :Q 22. What types of jobs will be created? av,/+Yv-Fr E3"r, C-i-i=CU og-t, !;JC4U'L-P' 23. What will be the total project annual payroll of the newly created jobs? 3�C7� 00 0 F/ 24. Will specialized training be required? If so, what type? FISCAL MPACT 25. Is there an anticipated cost to the City of Beaumont for providing municipal services to the proposed project? r f F," COMMUNITY IMPACT 28. Do you anticipate the proposed project having a substantial impact on the local residential, commercial or retail market? j\J0 29. Will rezoning and platting/replatting be required? 11_05�5 PA It is understood that the information provided herein is based on estimates and projections, but that such estimates and projections have been fully investigated and are made in good faith as to their accuracy. It is further understood that any information provided herein that is actual and not estimated is represented to be true and correct. Any information herein, which is'misrepresented as true and correct or for which there is no good faith basis, may result in the denial of consideration for or termination of incentive agreement. 6y Oq-/ Date 3 If you have any questions about this application please call the Community Development Department at (409) 880-3762. CITY OF BEAUMONT STAFF RECOMMENDATION(S) AND/OR COMIVIENT(S): (To be completed by City of Beaumont Staff Only) 2. Recommendation: Approve Disapprove Comments: 4 STATE OF TEXAS COUNTY OF JEFFERSON AGREEMENT This Agreement'is entered into by and between the City of Beaumont, Texas, a home -rule city and municipal corporation of Jefferson County, Texas, acting herein by and through its City Manager, hereinafter referred to as "City"; and Beaumont Developers, LLC, 205 Forest Drive, New Llano, Louisiana, hereinafter referred to as the "Owner". ►���i�7.Y.�llr:1 WHEREAS, On the eighth day of December, 2015, the City Council of the City of Beaumont, Texas, passed Ordinance No.' 15-055 , establishing the boundaries of Empowerment Zone Number Five, for residential and commercial tax abatements as authorized by Vernon's Texas Civil Statutes Tax Code, Section 312.001 and Chapter 378 of the Texas Local Government Code, et seq, as amended, hereinafter referred to as "Statute". WHEREAS, in order to maintain and/or enhance the local economy and/or provide quality, affordable housing, in accordance with said Ordinance and Statute, the City, Beaumont Developers, LLC, known herein as the Owner do mutually agree as follows: 1. The property, known as the "Premises" to be the subject of this Agreement shall be the property at 625 Orleans, Beaumont, Texas and described as Lots 201 & 202, Lot 206 Tract 1, Lot 198 Tract 2, Block 40, Beaumont Addition .6129AC 2. The Owner shall cause to be developed a hotel, known herein as the "Project," on the Premises and shall not have a construction cost less than $5,000,000 and shall be completed not later than December 31, 2022. 3. The Owner agrees to pursue these improvements as good and valuable consideration of this Agreement. 4. In the event that the Project and improvements for which an abatement has been granted are not completed in accordance with this Agreement, then this Agreement shall be subject to termination and all delinquent taxes and taxes which otherwise would have been paid to the City without the benefit of abatement will become a debt to the City and shall be due, owing and paid to the City within sixty (60) days of any such event. In the event that the Owner defaults on the terms and conditions of this Agreement, the City shall give the Owner written notice of such default and if the Owner has not cured such default within thirty (30) days of said written notice, this Agreement may be terminated by the City. Notices shall be in writing and shall be delivered by personal delivery or certified mail addressed as follows: Mr. Mack Patel Beaumont Developers, LLC 205 Forest Drive New Llano, LA 71461 5. In the event that the City should fail to timely or substantially comply with any one or more of the requirements, obligations, duties, terms, conditions or warranties of this Agreement, such failures shall be an Act of Default by the City and the City shall have ninety (90) days to cure and remove the Default upon receipt of written notice to do so from the Owner. The Owner specifically agrees that the City shall only be liable to the Owner for the amount of waivers and abatement, outlined herein, and shall not be liable to the Owner for attorney's fees, court costs or any alleged consequential damages should any be incurred. The Owner hereby waives any rights or remedies available to it at law or in equity. Notices shall be in writing and shall be delivered by personal delivery or certified mail addressed as follows: Kyle Hayes, City Manager City of Beaumont 801 Main Beaumont, TX 77701 0) 6. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. Other than assignment to a Beaumont Developers, LLC affiliate, this Agreement cannot be assigned by the Owner to anyone or any other entity which is not an affiliate of Beaumont Developers, LLC, unless written permission is first granted by the City, which permission shall be in the sole discretion of the City. 7. The Owner agrees to hold the City harmless from any and all kinds of claims, losses, damages, injuries, suits or judgments involving the City and relating to such improvements. 8. The City shall have reasonable right to inspect the Premises and Project during regular daylight hours to ensure that the improvements are made according to the terms of this Agreement. In addition, the Owner agrees to provide records and documentation to the City, sufficient to verify improvements and employment data in order to ensure performance under this agreement. 9. Subject to the terms and conditions of this Agreement, all increases in taxes owed to the City, assessed from the ad valorem real value resulting from these improvements of these Premises, are hereby abated in their entirety for a period of three (3) year beginning January 1, 2021. 10. In addition, an exemption from planning and building fees associated with new construction, though not including water tap fees, shall be made as part of this agreement. 11. In addition, the Owner agrees to cooperate with one another to facilitate the expeditious processing of permits, including zoning applications (s), subdivision applications, plat approvals, development application (s) and building permit applications required for the completion of the project, in accordance with State Statutes and City Ordinances. 12. The City and the Owner each agree to act in good faith and to do all things reasonably necessary or appropriate to carry out the terms and provisions of this agreement, and to aid and assist the other in carrying out such terms and provisions in order to put the other in the same condition contemplated by this Agreement. 3 13. If the Owner elects not to proceed with the development of the project as contemplated by this Agreement, the Owner will notify all parties in writing and the obligations of the Owner and the City will be deemed terminated and of no further force or effect as of the date of such notice, except those that expressly survive the termination hereof, if any. 14. This Agreement was authorized by resolution of the City Council at its meeting on the , authorizing the City Manager to execute the Agreement on behalf of the City. 15. This shall constitute a valid and binding agreement between the City and the Owner when executed on behalf of said parties, for the abatement of City ad valorem taxes in accordance therewith. The Agreement is performable in Jefferson County, Texas, witness our hands This day of , CITY OF BEAUMONT an ATTEST: Tina Broussard City Clerk Kyle Hayes City Manager 11 OWNER LE Beaumont Developers, LLC ATTEST: RICH WTTs OPPORTUNITR IIEAUMON�( T` E- X- A- 8 City of Beaumont Neighborhood Empowerment Zone Incentive Policy Program Goals: It is the City of Beaumont's goal to promote development within its Neighborhood Empowerment Zones in an effort to improve the local economy and enhance the quality of life for its citizens. Insofar as these goals are served by enhancing the value of the local tax base and increasing economic opportunities, the City of Beaumont will give consideration to providing the following incentives for development within Neighborhood Empowerment Zones. Definitions: A. Abatement: full or partial exemption for ad valorem taxes of eligible properties in a reinvestment zone designated as such for economic development purposes. B. Agreement: a contractual agreement between a property owner and a taxing jurisdiction for the purpose of a tax abatement. C. Base Year Value: the assessed value of either the applicant's real property and improvements located in a designated reinvestment zone on January 1 of the year prior to the execution of the agreement plus the agreed upon value of any property improvements made after January 1 of that year but before the execution of the agreement, and/or the assessed value of any tangible personal property located on the owner's real property on January 1 of the year prior to the abatement period covered by the agreement. D. Facility: property improvements completed or in the process of construction which together comprise an integral whole. E. Incremental Value: the amount of assessed value of the project that is in addition to the Base Year Value of applicant's real property at their prior location. F. Neighborhood Empowerment Zone: is an area designated as such for the purpose of providing economic incentives, including a tax abatement, as authorized by the City of Beaumont in accordance with Texas Local Government Code Annotated Section 378 as amended. G. Real Property: area of land defined by legal description as being owned by the person applying for a tax abatement, including any improvements thereto, which is to be improved and valued for property tax purposes, and which is to be included in the Neighborhood Empowerment Zone. H. Substantial Investment: a project deemed as an eligible facility under this policy, that exceeds $5,000,000 in capital investment. Program Policy: It is the policy of the City of Beaumont that consideration will be provided in accordance with the guidelines, criteria and procedures outlined in this document. This policy applies to the owners of real property. Project consideration will include the potential impact of the reinvestment project on the immediate and surrounding area. A. Authorized Facility: Neighborhood Empowerment Zone Incentives may be granted within a Neighborhood Empowerment Zone for new construction or renovation of single- family uses for investments of $50,000 or greater and may be granted for all other uses for investment of $75,000 or greater. B. Eligible Property : Neighborhood Empowerment Zone Incentives may be granted for new construction or renovation of owner -occupied single-family homes, office, retail, hotel and meeting facilities, restaurant and multi -family residential facilities within a Neighborhood Empowerment Zone, designated by the City Council of the City of Beaumont, Texas. r C. No incentives shall be granted for development resulting from the relocation of an eligible facility from one area of the city to within the Neighborhood Empowerment Zone, excepting projects considered "Substantial Investments," as deemed herein. Procedural Guidelines: Any person, partnership, organization, corporation or other entity desiring that the City of Beaumont consider providing Neighborhood Empowerment Zone incentives shall be required to comply with the following procedural guidelines. No representations made herein considered binding unless and until approved by the City of Beaumont City Council. Preliminary Application: Applicants shall submit a completed "Application for Neighborhood Empowerment Zone Development Incentives" form for consideration of incentives to the Community Development Department of the City of Beaumont, 801 Main Street, Beaumont, Texas 77701. P) Consideration of the Application: A. The City Manager will consider requests for incentives in accordance with these policies, pursuant to Chapter 378 of the Texas Local Government Code. Additional information may, be requested as needed. B. The City Council may enter into an agreement that outlines the terms and conditions between the City and the applicant, and governs the provision of the incentives. Inspection of the Project: During the term of such agreement, the City of Beaumont will have the right to inspect the project facility during regular business hours to ensure compliance with the agreement and accuracy of the owner certification. Recapture: If a project is not completed as specified, or if the terms of the incentive agreement are not met, the City has the right to cancel or amend the incentive agreement and all previously waived fees and abated taxes shall become due to the City and liens may be reattached. Effect of Sale, assignment or lease of property: No incentive rights may be sold or assigned without the approval of the City Council. Any sale, assignment or lease of the property may result in execution of the recapture provision, as outlined above. Tunes of Incentives Available: Building Fee Waivers The Building Construction Fee Waiver Program affords property owners an exemption from planning and building fees associated with new construction or renovation and occupancy of eligible facilities within the target area. Expedited Permit Reviews: In order to facilitate redevelopment within the Neighborhood Empowerment Zones, the Community Development Department is committed to assisting applicants through the planning and permit review process as quickly as possible. Lien Waivers In order to render properties with Neighborhood Empowerment Zones more marketable, the Lien Waiver Program affords property owners a release of liens attached to properties as the result of demolitions or expenditures associated with cutting high grass. Release of such liens would only be allowed in conjunction with new construction or renovation of eligible facilities within the target area. Construction Tax Abatement The Construction Tax Abatement Program is an economic development tool designed to provide incentives for the new construction or renovation of single-family homes, office, retail, restaurant and multi -family residential facilities within a Neighborhood Empowerment Zone. The Construction Tax Abatement Program is intended to contribute to area development by attracting additional capital and human investment to the area as well as additional residents to support economic development activities within the area. Value of Abatements: authorized facilities may be granted a municipal tax abatement on all or a portion of the increased taxable value of eligible property over the base year value for a period not to exceed three (3) years, except as outlined below. Tag Abatement Program Guidelines: The eligibility requirements are as follows: Investment Municipal Tax Abatement Schedule $50,000 & up for residential uses and 100%. or 100% of the incremental value for Substantial [I�Year $75,000 & up for all other uses Investments relocating within the City. $50,000 & up for residential uses and 100%: or 100% of the incremental value for Substantial 2na Year $75,000 & up for all other uses Investments relocating within the City. 0,000 & up for residential uses and 100%: or 100% of the incremental value for Substantial rd 3 Year 0$55,000 & up for all other uses Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for Year use 14a' Substantial Investments relocating within the City, $5,000,000 or more for any eligible 100% for new investments and the incremental value for 5 Year use Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for 6th Year use Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for 7 Year use Substantial Investments relocating within the City. 4 Abatement Program Considerations: A. The final valuation determined by the Jefferson County Appraisal District will be used to determine the actual yearly tax abatement exemption. B. The tax abatement shall be granted only to the owner of the property. C. No tax abatement exemption shall be effective until the applicant has met all of the eligibility requirements contained in the guidelines and policies, state law, and City of Beaumont codes. D. There shall be no retroactive tax abatement exemptions — all tax abatement exemptions become effective only on or after the date the City Council approves the tax abatement agreement. E. The applicant shall agree to hold the City of Beaumont, its agents, employees and public officials harmless and pay all attorneys' fees that are generated by any dispute regarding the tax abatement agreement. F. Personal and or real property identified before the period covered by the abatement agreement will not be eligible for abatement. 5