HomeMy WebLinkAboutRES 24-164RESOLUTION NO. 24-164
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to enter into an agreement with
Diamond Homes, LLC, for economic development incentives to include: (1) a possible three (3)
year, 100% municipal tax abatement for all added value for investments greater than $50,000.00
for residential uses and $75,000.00 for all other uses; (2) building fee waivers (not including tap
and meter fees) and; (3) expedited Permit review under the Neighborhood Empowerment Zone
Program for the development of a residential new construction at 3480 Goliad Street.
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 T — ----- --- ---- —
2024.
_ , of July,
STATE Oh' TEXAS
COUNTY OF JEF ERSON
AGREEMENT
This Agreeme«t is entered into by and betwcen the City of Beaumont, Texas, a
home -rule city and municipal corporation of Jefferson County,'rexas, acting herein by and
through its City Manager, hereinafter referred to as "City," and DIAMOND HOMES, LLC,
4940 Fannett Road, Beaumont, Texas, hereinafter referred to as "Property Owner;"
collectively as the "Parties."
WITNESSETH:
WHEREAS, Oil the 12th day of February, 2008, the City Council of the City of
Beaumont, Texas, passed Ordinance No. 08-015, establishing the boundaries of
Empowerment Zone Number Two, for residential and commercial tax abatements as
authorized by Vernon's Texas Civil Statutes Tax Cade, Section 312.001 arld Chapter 378
of the Texas Local Government Code, et sect, as amended, hereinafter referred to as
"Statute."
WHEREAS, to maintain and/or enhance the local economy and/or provide quality,
affordable housing, i❑ accol-dance with said Ordinance and Statute, the City, and the
Property Owner, do mutually agree as folims:
1. The property, knowwrn ns the "Premises" to be the subject of this Agreement shall
be the property at 3480 Goliad Street, Beaumont, Texas and dcscribed as part of Lot 9,
Block 1, Rosciriorrt, BearElllotlt, Jefferson County, Texas.
2. The Property Owner shall cause to be developed new residential, known hereill
as the "Projeat," oil the Premises and shall not have a construction cost less than $50,000.00
and Shall be completed Tlot later than March 31, 2025 subject to delays Caused by force
milieure or by factors beyond Property Owner's reasonable control.
3, The Property Owner agrees to pursue these improvements as good and valuable
consideration of this Agreement.
4. In the event that the Prnjeet and improvements for -which nn Abatement hits been
granted are not cojtypleted ill accordance with this Agreement, then this Agreement shall
be subject to termination and all delinquent fees which otherwise would have been paid to
tile' City without the benefit of a waiver Will become a debt to the City and shall be Clue,
owing and paid to the City within sixty (60) days of any such event. In the event that the
Property Owner defaults in the terms and conditions of this Agreement, the City shall give
the Property Owner written notice of such default and if the Property Owner has not cured
such default within thirty (30) days of said written notice, this Agreement jnny be
terminated by the City. Notices sljnli be in Writing; arid shall be delivered by personal
delivery or certified mail addressed as follows:
Arden Diarnaiitis
Diamond Homes, LLC
4940 Fannett Road
Beaumont, Texas 77706
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 Warran les of
this Agjreernenl, such failures shall be an Act of Default by the City and the City shall Julve
ninety (90) clays to cure and remove the Default upon receipt of written notice to clo so
from the Propejly Owner. The Property Owner specifically agrees that the City shall only
be liable to the Property Owner for the amount of waivers, outlined herein, nttorney's fees,
and costs of court, shall not be liable to the Property Owner for kiny alleged consequential
damages, The Property Owner hereby waives ajjy 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:
Kenneth R. Wilhaujs, City Manager
City of Beaumont
2
801 Main, Suite 201
Benumont, Tx 77701
G. The terms and conditions of this Agreement are binding upon the successors and
assignees of nil parties hereto. Other than assignment to DiaEtlond Homes, LLC,
hereinafter referred to as "Business Owner," this Agreement cannot be assigned by the
Property Owner or Btisittess OWttea' to anyone or any entity which is not an affiliate of
Business Owner, lidless written permission is first. granted by the City, which permission
shall be in the sole discretion of the City, Any assignment occurring within the scone of
this Agreement transfers all tights, responsibilities, and obligations heretofore granted to
Property Owner to file assignee, and the assignee slfalI, for purposes of this Agreement, be
then known as "Property Owner,"
7. THE PROPERTY OWNER AGREES TO HOLD THE CITY, ITS
AGENTS, EMPLOYEES, OFFICIALS AND/OR REPRESENTATIVES
HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, INJURIES
UP TO AND INCLUDING DEATH, SUITS, OR JUDGEMENTS INVOLVING THE
CITY, ITS AGENTS, EMPLOYEES, OFFICALS, AND/OR RE, PRESENTATIVIJS
RELATING TO SUCH IMPROVEMENTS,
8. The City shall ]rave a 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 Property Owiler agrees to provide records and
documentation to the City, sufficient to verify improvements and employment data to
ensure performance under (Iris Agreement.
9. The base year value of this Project is jatillary i of the year it is exeekrted by the
Parties. Subject to the terms and conditions of this Agreement, all i1101'eases ill taxes owed
to the City, assessed from the art valorerll real value resulting From these improvements of
these Premises, are hereby abated in their entirety for a three-year period beginning January
1, 2026, and terminating December 31, 2029,
10. Exemption from planning and building fees associated with new construction
and liens associated will] the pretttises shall be made part of this Agreement. Water hip
fees shall not be made part of this Agreement.
3
t i, In addition, the City and the Property Owner agree 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
pennit applications required for the completion of the project, in accordance with State
Statutes and City Ordinances,
12. The City and the Property Owner each agree to act in good faith and to (to all
things reasonably necessary or appropriate to carry out the terms alid provisions of this
Agreement, and to aid and assist the other hi carrying out such terms and provisions it,
ostler to put the other in the same condition contemplated by this Agreement.
13, If the Property Owner elects not to proceed with the development of ttte project
as contemplated by this Agreement, the Property Owner witl notify all Parties in �vritialg
and the obligations of either the Property Owner and (lie City .will be deemed terminated
and of no further farce or effect its of tile, date, of such notice, except those that expressly
susvive the termination hereof, if any.
14, Nothing in this Agreement is intended to create or establish a joint venture
between the Parties.
15. This Agreement Was authorized by resolution of the City Couny) at its meeting
on the gild day of July 2024, authorizing the City Manager to execute the Agreement on
behalf of the City.
16. This shall constitute a valid and binding agreement between the City and the
Property Owner when executed by the Parties, for the abatement of City ad valorem taxes
in accordance therewith. This Agreement and any doeurrienls referenced herein shall
represent the entirety of the Agreement between the Parties, Any amendments, addenda ms,
or material changes shall be in writing and require the consent and approval of all Parties.
Tile Agreement is performable in Jefferson County, Texas, witness our hands
This day of _.... .
4
CITY OIL BEAUNION`I'
By:
ATTEST:
Tina Broussavd
City Clerk
PROPERTY OWNERS
By,
ATTEST:
Kenneth R, Williams,
City Manager
DIAMOND HOMES
By: Diamond Hot -nos, LLC
Chief Excctilive 411icer
By: Arden Diamantis, Chief EuCuiiv wricer
m
PICH WITH OPPOATURITY
HERIMON*
T ` H ' x ' ^ - 6 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 outlina 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 seeping:
V Building Fee Waivers
IX Expedited Permit Review
Lien Waivers
Tax Abatement
DESCRIPTION OF PROJECT
1. Legal name and address of applicant: Diamond Homes LLC 4940 Fannett Rd.
Bmt. Tx, 77705
2, Type of organization (Corporation, Ltd. Partnership, etc,): �LC
3. Date organization formed: November 23, 2021
4. Address and telephone number of headquarters location: 4940 Fannett Rd Beaumont, TX 77705
5. State(s) in which business is registered: Texas
6. Other locations of this business (names of cities): None
7. Is business current with all taxes? yes
S. Nat -no, address, and telephone number of principal officers, Arden Diamantis 2425 Bolivar St.
Beaumont, TX 77705
9. Name, address tic phone number of designated contaot person: Same As Above #8
10. Type of business to be conducted and goods or services to be produced or provided: Residential
New Const.
11. Location of project (street address): 3480 Goliad
12. Legal (tot, blook & subdivision) description of the project (Attach plat ofproperty): Rosemont
L9 Blk 1
I3. Identify and describe the kind, number and location of all improvements to the
physical property and discuss the development schedule of the proposed improvements.
Residential New Const,
14. What infrastructure construction will be required to serve the proposed project? What
is the estimated cost of this construction? $105,000
15. Estimated construction commencement date; ASAP
16. Estimated construction completion date: 4 to 6 Months
17, Estimated date for project to be operational: End of Term Built
l8. City liens requested to be released; ASAP
EMPLOYMENT IMPACT (afar Non-residential Projects)
19. What is the estimated member of permanent full-time new jobs that will be created? 2
20. 'What percentage of employees do you anticipate will be residents living; in:
(a) the Neighborhood Empowerment Zone 75%
(b) City of Beaumont 100%
(c) Jefferson County 100%
(d) Outside Jefferson County 25%
21. How many new, temporary and part -tine jobs will be created in Beaumont? 10 to 20
22. What types of jobs will be created? General Construction
23. What will be the total project annual payroll of the newly created jobs? 50k to 100k
24. Will specialized training be required? if so, what type? None
FISCAL IMPACT
25. 7s there an anticipated cost to the City of Beaumont for providing municipal services
to the proposed project? Yes Water & Sewor Taps, Sidewalks, Dirt
COMMUNITY IMPACT
28. Teo you anticipate the proposed project having a substantial impact on the local
residential, eonuuercial or retail market? Yes
29. Will rezoning and platting/replatting be retluircd? No
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 fliat any information
provided heroin that is actual and riot estimated is represented to be true and correct. Any
information lierciu, which is misrepresented as true and correct or for which there is no
good faith Basis, may result in (lie denial of consideration for or termination of hicentive
Agreement.
i12
Signature
6-21-24
Date
3
If you lave any questions about this application please call the Co1luintnity Development
Department at (409) 890-3762,
CITY OF BEA.UMONI' STAFF RECOMMENDATION(S) AND/OR COMMENT(S):
(To be completed by City of Beaumont Staff Only)
2. Recommendation:
Approve
Disapprove
comments:
4
RICH W1111 0Df'4WrVNIYY
_11EA11146fI
T+ Vi a X` A 0. S
City of Deatilliolit
Neighborhood Empowerment Zone
Incentive Policy
Program Goals:
It is the City of Beaun7ont'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 oppoltullities, 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 behveen 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 ill a designated reinvestment zone on January 1 of (lie 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 ail), tangible personal property located oil the owner's real property on
January I of the year prior to the abatement period covered by the agreement.
D. Facility: property improvements completed or in Elie process of collstl'Uctloll which
together comprise an integral whole,
E. Incremental Valle: the amount of assessed value of the project that is ill addition to the
Base Year Value of applicant's real property at their prior location.
F. Neighborhood Empowerment Zone: is all 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 Cxovernment Code Annotated Section 379 as
amended.
G, Real Property: area of land defined by legal description as being o-wiled 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 (lie
Neighborhood Empowerment Zone.
H, Substantial Investment: a project dee►ned as an eligible facility under this policy, that
exceeds $5,000,000 ill 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
tite reinvestment project on the immediate and surrounding area.
A. Authorized Facility : Neighborhood Empowerment .Zone Incentives may be granted
within a Neighborhood Empowerment .Zane for new construction or renovation of single-
family uses for investments of $50,000 or greater and may be granted for all other lases
for investment of $75,000 or greater,
B. Eligible Property ; Neighborhood Eiiipowerinellt Zol1e lnecntives may be gra►lted for
new constructioni or renovation of owner -occupied single-family hones, 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.
C. No incentives shall be granted for develapnlent rest,lflilg froln the relocation of an
eligible facility from one area of the city to within the Neighborhood Empowerment
Zone, excepting projects considered "Substantial Investments," as defined herein.
Procedural Guidelines:
Any Berson, partnership, organization, corporation or other entity desiring that the City of
Beaumont consider providing Neighborhood Empowerment Zone incentives shalt 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
Coulloil.
Preliminary Application:
Applicants shall submit a completed "Application for Neighborhood Empowerment Zone
Development Incentives" forth for consideration of incentives to the Community
Development Department of file City of Beaumont, 801 Main Street, BM111101% Texas
77701.
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Consideration of the Application:
A. Tho City Manager will consider refit►ests 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
agree inent 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.
El ffeet of Sale, assignment or lease of property:
No incentivo rights nlay 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.
Types of Incentives Available,
Buildim -, Fee Waivers
The B€►ildi►ig 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.
Expe4lited Permit Reviews:
In order to facilitate redevelopment Nvithin the Neighborhood Empowerment Zonos, the
Community Development Department is conunitted to assisting applicants through the
planning and permit review process as quickly as possible.
Lien Waivers
In order to rendcr properties with Neighborhood Empowerment Zones more marketable,
the Lien Waiver Program affords property owners a release of liens attaclied to properties
as the result of demolitions or expenditures associated with cutting high grass. Release of
such liens would only be allowed in oonjunction 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 hones, office,
retail, restaurant and multi -family residential facilities within a Neighborhood
Empo-werment Zone, The Construction Tax Abatement Program is intender) 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 ail
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.
Tax Abatement Program Guidelines:
The eligibility requirements are as follows:
j i>vestmetlt
Municipal Tax
$50,000 & up for residential uses and
100%, or 100% of the incremental value for Substantial
1st Year
$75,000 & tip for all other uses
Investments relocating w ithirk the City
-
$50,000 & up for residential uses and
100%; or 100% Of the incremental value for Substantial
`Investments
-- Year
�. _ a Year l
$75,000 & LIP for all other uses
relocating within the City,
$50,000 &tlp and
- -
l QQ%; Ol' 100% of the incremental value for Substailti2ll
rd
ff Year
$75,000 & up for all other uses
investments relocating withh) the City.
..
$5,000,000 or more for any eligible
100% for new investments and the, incremental value for
Ilse
Substantial Investments relocating within the Ci
4ti, year
Q000 Ol` 11lore Tor an eli ible
lt�
1QQ/a It7k` i7e1Y i[lvCStRT7et7ta at7d the iilCrcmental value I
lli Year
se
Substantial Investments relocating within the City
$S,QQQ,00Q ok` ]xlorc for any eligible
100% for llely 117vestlliellts and the i17c1'e177etltal value for
--�-tt,
----- -
use
Substantial Investments relocating within the City,
6 Year
$s,oao,ot�n ���•��1o���-fot� ���
y
100% for new _..-__�_.__
investments and the incremental valttc fol
_..-___-___�
use
Substantial Investments relocating within the City.
7tk, Year
4
Abatement Progrann Considevatimm,
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 witH the applicant has neat 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.
B. The applicant shall agree to Bold the City of Beaumont, its agents, employees and
public officials harmless and pay all attorneys' fees that are generated by any dispme
regarding the tax abatement agreement,
F. Personal and or zeal property identified before the period covered by the abatement
agreement will not be eligible for abatement.
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se r Preparad by City of Baaumont
44��`- Community Oavalopmenl Dapaitment
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Request for Economic Development incentives under the Neighborhood Empowerment
Zone Program for the development of new residential construction.
Applicant: Arden Diamantis of Diamond Homes, LLC
Location: 3480 Goliad Street
a 100
I I 1 Feet