HomeMy WebLinkAboutRES 24-166RESOLUTION NO. 24-166
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and lie 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 3185 Elinor 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.
2024.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 2nd day of July,
- Mayor icoy w USL -
STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is entered into by and between the City of Beaumont, Texas, a
home -rule oily and municipal corporation of Jefferson Comely, Texas, acting herein by and
through its City Manager, hereinalier refan,ed to as "City," and DIAMOND HOMES, LLC,
4940 Fanneft Road, Beaumont, Texas, hereinafter referred to as "Property Owner;"
collectively as the "Pailies,"
WITNESSETH-
WHEREAS, On the l2th day of February, 2008, the City Cotutcil 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 Code, Section 312.001 and Chapter 378
of the Texas Local Government Code, et seq, as amended, hereinafter referred to as
"Statute."
WHEREAS, to maintain and/or eidlnnce the local economy andlor provide duality,
affordable housing, in accordance with said Ordinance and Statute, the City, and the
Propetiy Owner, do mutually agree as follows;
1. The property, known as (lie "Premises" to be the subject of this Agreement shall
be tho property at 3185 Elinor Street, Beaumont, Texas and described as part of Lot 10,
Block 32, West Oakland Addition, Beaumont, Jofferson County, Texas.
2. The Property Owner shall cause to be developed new residential, known herein
as the "Project", oil the Premises and shall not helve a Construction cost less t11ai1$50,000.00
and shall be completed not later than March 31, 2025, subject to delays caused by force
majeure or by factors beyond Property Owner's reasonable control.
3, The Property Owner agrees to pursue these improvementts as good avid 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 Agrcennent shall
be subject to termination and all delinquent fees which otherwise would have been paid to
tlae City without the benefit of a waiver 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
Property Owner defaults ill the let -ins and conditions of this Agreement, the City shall give
the Property Owner written notice ofsuch default and if the Property Owner has not cured
such default within thirty (30) days of said written notice, this Agreement may be
ten ninated by the City. Notices shall be in writing and shall be delivered by personal
delivery or certified mail addressed as follows;
Arden Diamands
Diamond Homes, LLC
4940 l:annett Road
Beatnntout, Texas 77706
5. In the event that file City should fail to timely or substantially comply with any
one or more of the requirennents, obligations, duties, terms, conditions, or warranties of
this Agreement, such failures shall bean Act of Default by the City and the City slnall have
ninety (90) days to cure and remove the Default upon receipt of writ#en notice, to do so
from the Property Owner. The Property Owner specifically agrees that the City shall only
be liable to the Property Owner for the anlotnat of waivers, outlined herein, attomey's fees,
and costs of court, shall not be liable to the Property Owner far any alleged consequential
damages, The Property Owner hereby wnives Any rights or remedies available to it rat law
nr in equity. Notices shall be in writing and shall be delivered by personal delivery or
certified mail addressed as follows;
Kenneth R. Williams, City Manager
City of Beaumont
2
801 Main, Sulte 201
Beaumoni, TX 77701
G_ The terms and conditions orthis Agreement are binding upon the successors and
assignees of all parties hereto. Other than assignment to Diamond Homes, LLC,
hereinafter referred to as "Business Owner," this Agreement cannot be assigned by (lie
Property Owner or Business Owner to anyone or any entity which is not an affiliate of
Business Owner, unless written permission is first granted by the City, which permission
shall be in (lie sale discretion of the City. Any assignment occurring 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 TIDE 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 PRE, SENTATIVES
RELATING TO SUCH IMPROVE, MENTS.
8. The City shall have a reasonable right to inspect the Premises and Prnlect during
regular daylight hours to ensure that (lie improvements are trade according to the terms of
this Agreement. In addition, the property Owner agrees to provide records and
docutr►Gilt ation to the City, sufficient to verify improvements and employment data to
ensure performance under this Agreement.
9. The base year value of this Project is January I of the year it is executed by the
Parties. Subject to the terms and conditions of this Agreement, all incrcases 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 three-year period beginning January
1, 2026, and tenuitiating December 31, 2029.
10. Exemption from planting and building fees associated with new construction
and liens associated with the Premises shall be made part of this Agreement, Water tap
Fees shall not be made part of this Agreement.
3
I I. lil addition, the City and the I'►•operty Owne►• 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
permit applications required for the completion of the project, ill accordance with State
Statutes and City Ordinatices,
12. The City and the Property 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 hi carrying out such ternls and provisions in
ou•der 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 (lie 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 deemed terminated
and of no h►rther force or effect as of the date of such notice, except those that expressly
survive the terminatioul hereof, if any,
id. Nothing in this Agreement is intended to create or establish a joint venture
behveetl the Parties.
15, This Agreement was ailthorized by resolution of tile, City Council at its rneetislg
on the 2nd day of July 2024, authorizing the City Mallager to execute the Agreement oil
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 documents referenced herein shall
represent the entirety of (lie Agreement between the Parties. Anyamendments, addendums,
or material changes shall be in writing and require the consent tied approvat of all Pailies.
The Agreement is performable in Jefferson County, Texas, witness our hands
This - mm� day of
4
CITY OF BEAUMONT
By:
ATTEST;
Tints Broussard
City Clerk
PROPERTY OWNERS
By:
ATTEST;
Kenneth R. Williams
City Manager
DIAMOND HOMES
By: Diamond Homes, LLC
C,iv:t Excculive Office •
By: �1 f'defl Dlc�fi1F11it1Sy CJiief �xccutive C)f'ticer
5
n10[I wlTu errohr(THITY
BEAUM001(
T ' & , x ` " ` 6 CITY OF BE.AUMONT
APPLICATION FOR NEIGHBORHOOD
EMPOWERMENT ZONE DEVELOPMENT INCENTIVES
'ne 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 seeping:
V Building Fee Waivers
Expedited Permit Review
1a Lien Waiveg,s
Tax Abatement
DESCRIPTION OF PROJECT
1, Legal name and address of applicant: Diamond Homes LL.0 4940 Fannett Rd.
Bmt. Tx. 77705
2. Type of organization (Corporation, Ltd. partnership, eta); LLC
3. Date organization formed: November 23, 2021
4, Address and telephone number of headquarters location: 4940 Fannett Rd Beaumont, TX 77705
5. Statc(s) in which business is registered: Texas
G. Other locations of this business (names of cities): None
7. Is business current with all taxes? yes
S. Name, address, and telephone number of principal of'fioers: Arden Diamantis 2425 Bolivar St,
Beaumont, TX 77705
9, Naine, address & plione number of designated contact person: Same As Above #8
I0. Type of business to be conducted and goods or services to be prodticed or provided: Residential
New Const.
11, Location of project (street address): 3185 Elinor
12, Legal (lot, block & subdivision) description of the project (Attach plat of property): West Oakland
L10 Bik 32
13, Identify and describe the kind, number and location of all improvements to the
physical property and discuss the development schedule of the proposed innprovements,
Residential Now Const.
14. What infrastructure construction will be required to serve the proposed project? What
is the estimated cost of this construction? $105,000
IS. Estimated construction conlnlencenlent 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 licks requested to be released: ASAP
EMPLOYMENT IMPACT (for Non-residential Projects)
19. What is the estimated number of permanent full-time new jobs that will be created? 2
20, What percentage of employees do you anticipate will be residents liviag ill:
(a) the Neighborhood Empowerment Zone 75%
(b) City ofBeaunlont 100%
(c) JefE'erson County 100%
(d) Outside Jefferson County 25%
21, How many new, temporary and Dart -tinge jobs will be created in Beaumont? 10 to 20
22. What types of jobs will be created? General Construction
23. What -,till be the total project annual payroll of the irewly created jobs? 50k to 100k
24. Will specialized training be required? if so, what type? Norte
FISCAL IMPACT
25. Is there an anticipated cost to the City of Beaumont for providing 111unicipal services
to the proposcd project? Yes Water & Sower Taps, Sidewalks, Dirt.
COMMUNITY IMPACT
28. Do you anticipate the proposed project having a substantial. impact oil the local
residential, commercial or retail market? Yes
29. Will rezoning and plattinglreplatting be required? No
2
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 hereilu that is actual atucl not estimated is represented to be true and correct. Any
information herein, which is misrepresented as tree and correct or for which there is no
good faith basis, may result in the denial of consideration for or termination of incentive
agreement.
5-21-24
Signature
Date
3
If you have any questions abmit this application please call the Community Development
Department at (409) 880 3762.
CITY OF BEAUMONT STAFF RECOMMENDATION(S) AND/OR COMMENT(S);
(To be completed by City of Beaumont Staff Only)
2, Reooz»mondation;
Approve
Disappi-ove
Comments;
4
nicn WITH orronTONtYY
11 " A, 1114 El N
Cily ol: Beallmonf
Neigitbot-llood Empower unit Zotte
Incelitive Policy
Program Goals:
It is the City of Beaumont's goal to promote development within its Neighborhood
Empowerment Zones in an effort to improve (lie local economy and enhance the quality
of life fog• 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 valorom 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 designatcd reinvestment zone on January 1 of the year prior to
the execution of the agreement plus the agreed upon value of arty 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 I of the year prior to the abatement period covered by the agreement.
D. }facility: property improvements completed or ill file process of construction which
together comprise an integral whole.
E. Incremental Valve: (lie 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
Deauniont in accordance with Texas Local Government Code Annotated Section 378 as
amended.
G. Rent Property; area of land defilred by legal description as being owned by tine person
applying for a tax abatement, including any improvements thereto, which is to be
unproved and valued for property tax purposes, and which is to be included in the
Neighborhood Etnpowernient Zone,
1-I. Substantial Investment: a project deeined as an eligible facility under this policy, that
exceeds $5,000,000 in capital iirvestnrent.
Prograrn Policy;
It is the policy of the City of Beatunont 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 oil the immediate and surrounding area.
A, Authorized Facility: Neighborhood Empowerment Zone Incentives may be granted
within a Neighborhood Ernpowerrnent Zone for now construction or renovation of single-
fanrily uses for investments of $50,000 or greater and may be granted for all other rises
for investment of $75,000 or greater.
B. Eligible Property : Neighborhood Einpowernient Zone Incentives may be granted for
new construction or rellovatioll of owner -occupied single -fancily homes, office, retail,
hotel and ineetingy facilities,, restaurant and multi-fainily residential facilities within a
Neighborhood Enrpowernient Zone, designated by the City Council of the City of
Beaumont, Texas.
C, No incentives steal I be granted for development resulting froin the relocation of an
eligible facility frorn one area of Elie city to within the Neighborhood Empowerment
Zane, excepting projects considered "Substantial Investments," as defined Herein.
Procedxtral OnWelilies:
Any person, partnership, organization, corporation or other entity desiring that the City of
Beaumont consider providing Neighborhood Empowerment Zolre incentives shall be
required to comply with the following procedural guidelines. No representations made
herein considered binding unless and until approved by the City ofBeaunront City
Council.
Preliminary Application:
Applicants shall srrbizrit a completed "Application for Neighborhood Enrpowernrent Zolle
Development Incentives" form :for consideration of incentives to the Community
Development Department of Elie City of Beaumont, 801 Main Street, Beaumont, Texas
77701,
2
Consideration of the Applicatiom.
A. The City Manager will consider requests for incentives in accordance -with these
policies, pursuant to Chapter 378 of the Texas focal 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 Pi-oject:
During the tcrnl 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 net, the City has the Light to cancel or amend the incentive agreement and all
previously waived fees and abated taxes shall becon-e due to the City and liens may be
reattached.
Effect of Sale, assignment or lease of l3roperty:
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.
Types of Incentives Available:
Building Fee WaNers
The Building Construction Fee Waiver Program 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.
Expedited Permit Reviews_:
In order to facilitate redevelopment within tile Neighborhood Empowerment Zones, the
Community Development Department is committed to assisting applicants through the
planning and pen -nit reN iew process as quickly as possible.
Neil 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 properdes
as the result of demolitions or expenditures associated with cutting high glass, release of
such liens would only be allowed in conjunction with new constt•uotioa] or renovation of
eligible facilities within the target area.
Construction Tax Abatement
The Construetion Tax Abatement Program is an economic developmcitt 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
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..
Vallte 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.
Tax Abatement Program Guidelines:
The eligibility requiren]ents are as follows:
Investment
I$50,000 & up for residential uses and
$75,000 & up for all other uses
1$50,000 &tip foi• residential uses aid.
$75,000 & up for all other uses
$50,000 & tip for residential uses and
$75,000 & up for all other rises - ---
$5,000,000 or more for stay eligible
liSe
$5,000,000 or more for any eligible -
�ise
Municipal Tax ,A,batemetzt__�_______.___-_ ��Scltecltile
10011w, or 100% of the incremental value for S 1lstantial 1st Year
Investments relocating within the City.
100°/a; or 100°/u of the incretxlenta( vahie for Substantial znd Year
Investments relocating within the City;.
100%; or 100% of the incremental value for Substantial 3rd Year
Investments relocating within the City.
l00°la far new ii]vesti]�ei]ts and the ii]cremei]tal value far fi,
Substantial Investments relocating Within the City. d Year
100%for new tnvestu]ei]ts and the increi]]ental valtie for iit
Substantial Investments relocating within the City. 5 Year
$5,000,000 or more for any eligible 100% for i]ery ii�vestixienis and the ii]crei]�ental valtie fax i4,
use Substantial Investments relocating City 6 --Year
5,000,000 or i]]ore foi• at]y eligible l00% for new investn]ei]ts and the ine--fo c ntal rli luu for ti,
use Substantial Investments relocating within the City,
7 Xeai
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 islet all of the
eligibility requiromonts contained in tile, 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 oil 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.
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Prepared by City of Oeaumoni
Communily Development Dopoiirnent
s
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
ocation: 3185 Elinor Street
0 100
IT .. i f Feet