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HomeMy WebLinkAboutRES 24-165RESOLUTION NO. 24-165 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 3470 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 THE CITY COUNCIL of the City of Beaumont this the 2nd day of July, 2024. 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'.iefferson County, Texas, acting herein by and throt►gh its City Manager, hereinafter referred to as "City," and DIAMOND HOMES,1:.LC, 4940 Fannett Road, Beaumont, Texas, hereinafter referred to as "Properly Owner;" collectively as the "Parties." WITNESSETH: WHEREAS, Ott (lie 121h day of Febmary, 2008, the City Council of the City of Beaumont, Texas, passed Ordinance No. 08-015, establishing the boundaries of Empowerment Lone Number Two, for residential and coil-miercial tax abatements as authorized by Vernon's Toxas Civil Statutes Tax Code, Section 312,001 and Chapter 378 of tho Texas Local Government Code, et seq, as amended, hereinafter referred to as "Statute." WHEREAS, to inaintain and/or enhance the local economy and/or provide duality, affordable housing, in accordance with said Ordinance and Statute, the City, and the Properly Owner, do mutually agree as follolvs: 1. The property, known as the "Premises" to be the subject of this Agreement shrill be the property at 3470 Goliad Street, Beaumont, Texas and described as part of Lot 8, Block 1, Rosemont, Beaumont, Jefferson County, Texas. 1 The Property Owner sliall caatse to be developed new residential, known herein as the "Project," oil the Promises and shall not have a construction cost less than $50,©00.00 and shrill be completed not later titan March 31, 2025 subject to delays caused by force tnajeure or by factors beyond Property Owner's reasonable control, 3. The property Owner agrees to pursue these ialaprovenlents as good and valuable Coll sideralioil of this Agreement, 4. In (Ile event that the Project aril for which an nbaten-tent has been granted are not completed in accordance with this Agreement, then this Agreement shall be subject to termination and nil delinquent fees which otherwise would have been Maid to the City without the benefit of waiver will become a dent to (lie City and shall be due, owing and Maid to the City within sixty (60) days of any such event. in the event that the Property Owner defnaalts in the ternras and conditions of this Agreement, the, City shall give the Property Owner written notice ot'such default and if the. Property Owner has not cured such default within thirty (30) days of said written notice, this Agreement may be tenninated by the City, Notices shall be in writing and shall be delivered by personal delivery or certified mail addressed as follows: Arden Diamantis Diamond Hoanos, LLC 4940 Pfinnett Road Beaalanont, Texas 77706 5. In the event that the City should fail to timely or substantially comply with any oaae or more of the requirements, obligations, dailies, 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) clays to cage and remove (lie Default upon receipt of written notice to do so from tile, Property Owner, The Property Owner specifically agrees that the City shrill only be liable to the Propeily Owner for tlia amoaatat of waivers, outlined herein, attorney's fees, and costs of court, shall not be liable to the Property Owner for any alleged consequential dllmagcs. The Property 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 maatl addressed as follows: Kenneth R, Williams, City Manager City of Beaumont 7 801 Mail), Suite 201 Beaumont, TX 77701 fi. The terms and conditions of this Agrecinwit are binding upon the successors and assignees of all parties hereto. Other than assignment to Diamond Homes, LLC, hereitlafler referred to as "Business Owner," this Agreement cannot be assigned by the Property Owner or Business Owner to anyotre or any entity wlltch is not tit] affiliate of Business Ownel•, uMess written permission is first granted by the City, which permission shall be in (lie sole discretion of the City. Any assignment OCCUn•ing within the scope of this Agreement transfers all rights, responsibilities, and obligations heretofore granted to Property Owner to the assignee, and the assignee shall, for purposes of this Agreement, be then known as "Property Owner," 7. THE PROPERTY OWNER AGREES TO HOLD THE CITY, ITS AGENTS, EMPLOYEES, OFFICIALS ANDIOR. REPRESENTATIVES HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, INJURIES UP TO AND INCLUDING DEATH, SUITS, OR JUDGEMENTS INVOLVING THE CITY, ITS AGENTS, EMPLOYE E8, OFFICALS, AND/OR, REPRESENTATIVES RELATING TO SUCK IMPROVEMENTS. 8, The City shall have a reasonable right to inspect (lie 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 Owner agrees to provide records and documentation to the City, sufficient to verify lnlprovenlents all(] employment data to e►lsure performtlatice under this Agreement. 9. The base year value oftlais Project is January 1 of (lie year it is oxeci ed by the Parties. Subject to the terms and conditions of'this Agreement, all increases ill taxes o\vecl to the City, assessed fro►n the act valorem real valtme resillting from tllesc improveml)ellts of these Premises, al-0 hereby aba(ed in their entirety for a three-yearperiod beginning Jatillaty 1, 2026, and terminating December 31, 2029, 10, Exemption froth planning, and bliildillg fees a4SOCiated with tle3v COLISUIICtlOil and liens associated with the Promises shall be made hart of this Agreement, Water tap fees shall not be made part of this Agreement. 3 11, In addition, the City and Ilse Property Owner agree to cooperate with one another to facilitate the expeditious processing of perrulits, inch€dhig Zoning applications (s), sub6ivision applications, plat approvals, development application(s), and building permit aapphcations rewired for the completiotl of the project, in accordance with State Statutes and City Ordinances. 12, Tate 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 and provisions of this Agreement, and to aid and assist the other in carrying out such terms and provisions in order to pul the other in the same condition contemplated by this Agreement. 13. 1f the Property Owner elects not to proceed with the devOopment of the project as contemplated by this Agreement, the Property Owner will notify all Parties in writing and the obligations of either the Property Owner and the City will be deo ned terminated and of no further Cot -cc or effect as of the date of such notice, except those that expressly Survive the termination hereof, if any, 14, Nothing in this Agreement is intended to create or establish a joint ventAire between the Parties. 15, This Agmemettt was authorized by resolution of the City Council at its meeting on the 2nd day of Atly 2024, authorizing the City Manager to execute the Agreement on behalf of the City, 16. This $hall constitute a valid and binding aagreenteitt between the City and the Property Owner whetu excettted by the parties, for the abatement of City ad valorem taxes in accordance therewith. This Agreement and any documents referenced herein shall represent file entirely of rite Agreement between the Parties, Any amendments, addendums, or material changes shall be in writing and require the; consent and approval of till Pallies. The Agreement is performable is Jefferson Counly, 'texas, witness our ltatltls This. day of 4 CITY Or BEAUMONT By: ATTEST: Tina Broussard City Clerk Kenttetl1 R. Williams City manager PROPERTY OWNERS � I3y;� ATTEST: DIAMOND HOMES By: Diamond Hot -nos, LLC: chieruxecfltive 0111:er By: Arden Diamantls, chief E-Nce ive 0jricer 5 mot whiz orpoRTUNITY BERIMON"W `x' ' n , x , A ' # CITY OF BEAUMONT APPLICATION FOR NEIGHBORHOOD EMPOWERMENT ,BONE DEVELOPMENT INCEN` IVE,.S 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; Building Fee Waivers Y Expedited Permit Review Lien Waivers % Tax Abatement DESOUPTION OF PROJECT 1. Legal panic and address of applicant: Diamond Homes LLC 4940 Fannett Rd. Bmt. Tx. 77705 2, Type of organization (Corpora(ion, Ltd. Partnership, etc.): L,LC 3. Date organization formed; November 23, 2021 4, Address acid teleplioiie nvniber of Headquarters location: 4940 Fannett Rd Beaumont, TX 77705 5. ,State(s) inwhich business is registered: Texas 6. Other locations of this business (naives of cities): None 7. Is business current with all taxes? yes & Name, address, and telephone arumbei- of principal officers; Arden Diamantis 2425 Bolivar St. Beaumont, TX 77706 9. Name, address & phone number of designated contact person: Same As Above #8 10. Type of business to be conducted and goods or services to be produced or provided: Residential New Cons#. 11, Location of project (street address): 3470 Goliad 12. Legal (lot, block & subdivision) description of the project (Attach plat of property),, Rosemont L8 Bll< I 13. Identify and describe the kind, number and location of all improvements to the physical property and discuss the develop meiit schedule of the proposed improvements, Residential New Const, 14. What infrastructure c011struc6011 will be required to serve the proposed project? What is tlic estimated cost of this construction? $106,000 15. Estimated construction commemement date: ASAP 16. Estimated construction completion date: 4 to 6 Months 17. Estimated date for project to be operational: End of Term Built 18, City lions requested to be released: ASAP EMPLOYMENT IMPACT (fog' Non-residential Projects) 19. What is the estimated number of permanent fiilt -time new jobs that will be created? 2 20. Mutt percentage of employees do you anticipate will be residents living in: (a) the Neighborhood Empmverment Zone 75% (b) City of Beaumont 100% (c) Jefferson County 100% (d) Outside Jefferson Co-mity 25% 21. How many new, temporary and part-time jobs will be cheated in Beaumont? 10 to 20 22. What types of jobs will be created? General Construction 23. What will be the total project anntiral payroll of the newly created jobs? 501< to look 24, Will specialized training be required? If so, what type? Nome FISCALIMPACT 25. Is there an anticipated cost to the City of Beauniont for providing municipal services to the proposed project? Yes Water & Sewer Taps, Sidewalks, Dirt COMMUNITY IMPACT 28. Do you anticipate the proposed project having a substantial impact on the local residential, eonunercial or• retail marko? Yes 29. Will rezoning and plat ti ng/replatting be required? No 2 It is understood that (lie information provided herein is based on estiRnates 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 termimtion of incentive agreement. 5-21-24 Signature Date If you have any questions about this application please call the Community Development Department at. (409) 880-3762. CITY OF BPAUMONT STAFF RECOMMENDATION(S) AND/OR COMMENT(S): (To be completed by City of Beaumont Staff Oily) 2. Recommendat:on; Appt'ove Disapprove Comments: 4 MPH t IVU 4t'i`bRiUNtrY 111EAUMON'w, T - R * X - A - S City of Beitttitiont Neigliborliood Empowerment Zoiie Yneentive Policy Progra►n Goals, - It is the City ofBeauazxont's goal to promote development within its Neighborhood Empower►dent 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 Nvithin 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 abatem ont. C. Base Year Value: the assessed value of either the applicant's real property and improvements located in a designated reinvestment zone on January I 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 (he agreement, and/or the assessed value of any tangible personal property located on 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 the process of construction which together comprise an integral whole. B. Incremental Value: the Mount 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 fax abatement, as authorized by the City of Beaumont in accordance with Texas Local Government Code Annotate(] Section 378 as amended. G, Real Property: area of land defined by legal description as being owiled 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 illcluded in the Neiglborhood Empowerinerlt Zone. K Substantial Investment: a project deemed as an eligible facility render this policy, that exceeds $5,000,000 in capital iirvestnlellt. Progt'aln Policy: It is the policy of the City of Beaumont that consideration will be provided ill accordance wittl the guidelines, criteria and procedures outlined in this document, This policy Applies to the owners of foal property. Project consideration will include the potential impact of the reinvestment project our the immediate and surrounding area, A. A utliorized Facility : Neighborhood Empowerment Zone Incentives may be granted within a Neighborhood Empowerment Zolle for new cotlstructiorl or r•etrovatiori of single- family uses for investments of $50,000 or greater and may be grafted for all other uses for investment of $7.5,000 or greater. B. Eligible property : Neighborhood Empowennent Zone Incentives may be granted for new construction or renovation of owner -occupied single-family homes, office, retail, hotel and ureeting facilities, restatirant and multi -family residential facilities within a Neighborhood Empowerment Zone, designated by the City Council of the City of Beaulliont, Texas, C. No incentives shall be granted for development resulting from the relocation of all eligible facility from one area of the city to within the Neighborhood Empowerment Zone, excepting projects considered "Substantial Investments," as defined Herein, Procedilral 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 an(i until approved by tile City of Beaumont City Council, Preliminary Application, Applicants shall submit a completed "Application for Neighborhood En-iporverment Zone Development Incentives" form for consideration of incentives to the Community Development Department of the City of Beaumont, 801 Main Street, Beaumont, Texas 77704. 2 Consideration of the Application - A. The City Manager will consider requests for incentives hi accordance Nvith these policies, pursuant to Cliapter 378 of the Teas Local Government Code, Additiomil hirorination rimy be requested as needed. B. The City Council may enter into an agreement that outlines the terms and conditions betkveen the City and the applicant, and governs the provision of the incentives, Inspection of the Projeet: During the term Of Such agreement, the City ofBeauniont 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 ternis of the iticentive agreeriient are 'lot met, the City has tine right to cancel or amend the incentive agreement and all previously waived fees and abated taxes shall become Clue 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 ill execution of the recapture provision, as outliried above, Tires of incentives Available: Building Fee ''Waivers The Building Construction Fee Waiver Prograin affords property Owners an exemption from planning and building fees associated with now construction or renovation and occupancy of eligible facilities within the target area, Rxyedlted Permit Reviews: In order to facilitate redevelopment within the Neighborhood 13,nipowerment 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 tender properties witli Neiglxborhood Empowcrtnent Zones more marketable, t17e 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 i17 eonjru7ctlon with new G011stru06011 or renovation of eligible facilities within the target area, Construction Tax Abntement The Construction Tax Abatement Program ism 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 taxabte 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: Investment - . $50,000 & up for residential uses and — $75,000 & up for all other uses $50,000 & tip for I'esidel7tial uses and $75,000 & up for- all other uses ___...._. M,000 & up for residential uses and $75,000 & up for all other uses $5,000,000 oI more for any eligible use $5,000,000 or more for ally eligible - $5,000,000 or more -for any eligible Ilse $5,000,000 or more for any eligible use� —� -----------------_._ ....- _ Municipal Tax Abatement Sclredule . _�..� 100°/a; or i 00°10 of the incremental value forltbstantiat YYu�`----- Investments relocating 1�'it17iI1 the City, 15E Year --- 100%, or 100% of the incremental value for Substantial end sear II1Vest117G11tS relocating within the City, tQQ%; at' 1QQ% of the n1Gr'e177elltal value for Substantial 3rd Yeal' Investments relocating within the City. 100°lo for' I7euf il7vest177ents aI7c1 the incremental value for 4tf� Year Substantial Investments relocating within the City. 100% for new investments and the incremental value for 5it, Year Substantial Investments relocating within the City, 100% for new investments and the, in6rell-lental value far ti, Year Substantial Investments relocating within the City. l 00% far new irlvest117ents al7d the itlarelrtental value far f Substantial Investments relocating within the City. 7t1, seal - J 4 Abatement Pi-ogram Considerations A. The final valuation determitied by the Jefferson Courity Appraisal District will be used to determine the actual yearly tax abatement exemption. B. The tax abatement sliall be granted only to the owner of the property. C. No tax abatement exemption shall be effective until the applicant has net all of the eligibility requirements contained ill 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. F. The applicant shall agree to hold the City of Beaumont, its agents, employees and public officials harmless and pay all attorneys' tees 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 �e a u mo nt Empowerment Zones f� \\ ■■w■i■ milk sona1WE �� rr r�r MISS ttw� ����I_rl ■�■wwiahli -r Cr�I�M•!a, w■■■ww r Cam::: �iwwals�■■rw ■liw■■i=I ■��at 1 11 Nita 7w S: �r�alrwlii�i�sa�+aa `� iHM..■�allla�rr.ar'aiartil�'e�i�w��lail�°a►�� ���JII<w����(������wiiw■■■wia !■�i r..7�`ra r."ti-+lwriri �i.iiii■'�ri�li���� i • • 7 y��la■r■!w■i `0 11 w�i�iisiii • ■ ♦���♦ till� ��no •.irarr Stan Clop ism M r:rw�+:;is�11�::�.wii*i■I•r��`j O"S'I■w■i■■aaii■ r!�■ii■.■ ■aiwr•■wa■!■� 6 wi ■■ iA � w■r■■■lwr Mrwaii � • • ��r����'iwr�► /z r��ra `�iwa■■■r■■t•� olasrr w ■■wr■■■ w �r �lliiti�► r■lall■■■i■ i [ �r• �!■■at��C■�■�wfilt� � w ��"►.r �. �L ti W i r Prepared by City of fleaumont Comrnunity bevelopmant Dopartrttent s @quest for Economic Development Incentives under the Neighborhood Empowerment )ne Program for the development of new residential construction, pplieant; Arden Diamantis of Diamond Homes, LLC ocation: 3470 Coliad Street 0 100 i L I Feel