HomeMy WebLinkAboutRES 24-167RESOLUTION NO.24-167
BE IT RESOLVED BY THE CITY COUNCIL
Or 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 girder the Neighborhood Empowerment Zone
Program for the development of a residential new construction at 3485 Pradice Street.
The meeting at which this resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Governnent Code, Chapter 551.
2024.
PASSED BY THE CITY COUNCIL of the City ofjBeaunlont this the 2nd day of July,
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"Mayor 4
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STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is entered into by and between the City of Beaumont, Texas, a
home -rule cily and municipal corporation of Jefferson County,'rexas, acting herein try 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 tite "Parties,"
W[TNESSETH:
WHEREAS, Ott the l 2th day of February, 2008 the City Cowicil 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 Cade, el seq, as amended, hereinafter referred to as
"Statute."
WHEREAS, to maintain and/or enhance tite local economy and/or provide goality,
affordable housing, in accordance with said Ordinance and Statute, the City, and the
Properly Owner, do mutually agree as follows:
1. The property, knownn as the "Premises" to be the subject of this Agreement shall
be the property at 3485 Pradice Street, Beaumont, Texas and described as pant of Lot 10,
Block 1, Rosemont Addition, Beaumont, Jefferson County, 'Texas.
2. The Property Owner shall cause to be developed new residential, known herein
as the "Project," on the Premises and shall not have a construction cost less than $50,000.00
and shall be completed not Miter than March 31, 2025, subject to delays caused by force
mmjeure or by faclors beyond Property Owner's reasonable control.
l
3, The Property Owner agrees to pursue these improvements as good and valuable
consideration of this Agreen-lent.
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 fees which otherwise would have been paid to
the City without the beneFit of waiver will become a debt to the City and shall be due,
owing and paid to ttie City within sixty (60) clays 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 may be
teminated by the City. Notices shall be in writing and shall be delivered by personal
delivery or certified mail addressed as follows:
Arden Diamantis
Diamond Homes, LLC
4940 Fannett Road
Beaumont, Texas 77706
5. In the event that the City should fail to timely or substantially comply with ally
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 Property Owner. The Property Owner specifically agrees that the City shall only
be liable to the Property Owner for the amount of waivers, outtined herein, attorneys fees,
and costs of court, shall not be liable to the Property Owner for any alleged consequential
damages, 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 mait addressed as follows:
Kennoth R. Williams, City Manager
City of Beaumont
to
801 Main, Suite 201
Beaumont, TX 77701
6, The terms and conditions of this Agreement are binding upon the successors and
assignees of all parties hereto. Other than assignment to Diamond Homes, LLC,
herehiafier referred to as `Btlshiess Owner," this Agreement cannot be assigned by the
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 the sole discretion of (lie City. Any assignment oecun,ing within the scope of
this Agreement transfers all rights, responsibilities, and obligations herotofore granted to
property Owner to the assignee, and tlue assignee sliall, for I)ttq)oses of this Agreement, be
then known as "Property Owner."
7. THE PROPERTY OWNER AGREES TO HOLD THE CITY, ITS
AGENTS, EMPLOYEES, OFFICIALS AND/012 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 REPRESENTATIVES
IWELATING TO SUCH IMPROVEMENTS.
8. The City shall have 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 Owner agrees to provide records and
doctImentatioll to the City, sufficient to verify improvements acid employment data to
ensure performance under this Agreement.
9. The base year value of this Project is January I of the year it is oxecuted by the
Parties. Subject to the terms and coriditions of this Agreement, all increases in taxes owed
to the City, assessed from the ad valorem real value resulting front these improvements of
these Premises, are hereby abated in their entirety fora three-year period beginning January
1, 2026, and terininating December 3), 2029.
10. Exemption front planning and building fees associated with new constritction
and liens associated with the Promises 4hall be made pant of this Agreement. Water tap
fees shall not be made part of this Agreement.
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It. In addition, (lie City and the Property Owner agree to cooperate with one
another- to faeilitate [lie expeditious processing of permits, including zoiring applications
(s), subdivision applications, plat approvals, development application(s), and building
permit applications regWred for tiie completion of (lie project, in accordance with State
Statutes and City Ordinances.
12. The City acid the Property Owner each agree to act in good faith and to do all
things reasonably necessary or appropriate to tarty out the terms and provisions of this
Agreement, and to aid and Assist the other in carrying out such teens and provisions in
order to put the other ill the same condition contemplated by this Agreement.
13. If tile Property Owner elects not to proceed with the development of the project
as contemplated by this Agreement, the Property Owner swill notify All Parties in writing
and [lie obligations of either the Property 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, ifany.
14. Nothing in this Agreement is intended to create or establish a ,joint venture
between the Parties,
15. This Agreement was authoriud by resolution of (lie City Council at its meeting
on the 2nd day of July 2024, authorizing the City Manager to exeoute the Agreement on
behalf of the City.
16. This shR1I constitute a valid and binding agreement between the City aild the
Property Owner when executed by the Parties, for the abatement of City ad valorem taxes
in accordance therewitli. This Agreement and any documents referenced herein shall
represent the entirety of the Agreement between (lie Parties. Any amendments, addendums,
or material changes shrill be in writing quid require the consent and Approvat of all Parties.
The Agreement is performable in Jefferson Coumy, Texas, witness our hands
Thisday of
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CITY OF BEAUMONT
ATTEST.
Tina Broussard
City Clerk
PROPERTY OWNERS
By:
ATTEST:
Kenneth R. Williams
City Manager
DIAMOND HOMES
By: Diamond Homes, LLC
Chid'ExeculivL officer
By: Arden Diamatltis, c111C{ Lxcck31l%,e ofiiccr
R 1011 GRi711 OPPOIATUNIrV
11 1114 0 N i*
x ` A ` CITY OF BEA.UMONT
APPLICATION FOR NEIG14BOR -TOOD
EMPOWERMENT ZONE DEVELOPMENT INCENTIVES
The purljow of dais application is to present to the City of Bea-uniont a reasonably
comprehensive outline of the project for which the incentivcs 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 Wnivers
Expedited Permit Review
Y Lieu Walvers
Tax Abatement
DESCRIPTION Or, PROJECT
1. Legal nanxe and address of applicant: Diamond Homes LLC 4940 Fannett Rd,
Bmt. Tx, 77705
2, Type of organization (Corporation, Ltd. Partl)ership, etc,): LLC
3. Date organization fornned: November 23, 2021
4. Address and telephone. number of headquarters location: 4940 Fannett Rd Beaumont, TX 77705
S. State(s) in which business is registered: Texas
6. Other locations of this hltsiness (nautes of cities): None
7. Is business current with all taxes? yes
8. Name, address, and telephone number of principal officers: Arden Diamantis 2425 Bolivar St.
Beaumont, TX 77705
9. Name, address & phone munber of designated contact person, Sarno 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): 3435 Pradice
12. Legal (lot, block & subdivision) description of the project (Attach plat of property): Rosemont
L10 Blk 1
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.
Residential New Const.
14, What infrastructure construction will be required to serve the proposed project? What
is the estimated Cost of this constraction? $105,000
15. Estimated constaiction commencement date: ASAP
16, Estimated constmotion completion elate: 4 to 5 Months
7, Estimated date for project to be operational: End of Term wilt
18. City liens requested to be released: ASAP
EMPLOYINIE4 NT IMPACT (fox Non-residential Projects)
19. What is the estimated number of permanent hilt -time new jobs that will be created? 2
20. What percentage of employees do you anticipate will be residents living in;
(a) the Neighborhood Envowerment Zone 75%
(b) City of Bearui-iont 100%
(c) Jefferson County 100%
(d) Outside Jefferson County 25%
21. How many new, temporary and part-time jobs will be created is Beaun-tont? 10 to 20
22. What types of jobs will be created? General Construction
23, What will be tho- 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. Is there an anticipated cost to the City of Beaumont for providing municipal services
to the proposed project? Yes Water & Sewer Taps, Sidewalks, Dint
COMMUNITY IMPACT
28. Do you anticipate the proposed project raving a substantial impact on the local
residential, commercial or retail market? yes
29, Will rezoning and platting/replatting be required? No
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Tt 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 relarescnted to be tree and correct. Any
information herein, which is misrepresented as (ime and comet or for which there is no
good faith basis, may result in the denial of consideration for or termination of incentive
agreement.
Or
5-21 -24
Signature Date
If you have any questions about this application please call the Community Development
Department at (409) 880-3762,
CITY OIL BEAUMONT STAFF RECOMMENDATION(S) AND/OR COMMENT(S):
(To be completed by City of Beaumont StaffO)}ly)
2, Recommendation:
Approve
Disapprove
Comments:
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RICH WITH OPPon7UTiTYT
11 IE A, 11110.111)(*
City of Beattr1toiit
Neighborliood Empowerment Zojxe
Xncexitive 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 duality
of life for its Citizens. Insofa€` as those 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.
DeMiltions:
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 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 exccution of the agreement, and/or the
assessed value of any tangible personal property located on the awner'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.
E. Incremental Value: the amount of assessed value of the project that is in addition to tine
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 Anmtated 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 taa purposes, and which is to be included in the
Neighborhood Empowerment Zone.
H. Substantial Investment: a project deemed as an eligible facility under tliis 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 E►rtpowel-meat 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 -funnily homes, office, retail,
hotel and meeting facili,ti.es, restaurant and multi -family residential facilities within a
Neighborhood Empowerment Zone, designated by the City Council of tite City of
Beaumont, Texas.
C. No incentives shall be granted for development resulting front 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:
Airy person, partnership, organization, corporation or other entity desiring that the Cite of
Beaumont consider providing Neighborhood Empower► -ent Zone incentives shall be
required to comply with the following proccdural guidelines. No representations made
herein considered binding unless and until approved by the City of Beaumont City
Council,
Prelintina►T Application.
Applicants shall submit a completed "Application for Neighborhood En-►powerment Zone
Development Incentives" forth for consideration of incentives to the Community
Development Department of the City of Beaumont, 801 Main Street, Beaumont, Texas
77701.
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Coll Sid eratioil of the Application;
A. The City Manager will consider requests for ilieentives 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 COLMOil May enter 111tO an agreement that outlines the terniS and conditiollS
between the City and the applicant, and governs the provisions of the incentives,
Inspection of the Project:
During the tern-1 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 tales shall become clue to the City and liens may be
reattached,
Effeet of Sale, assigument 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 tile, recapture
Provision, as outlines above.
Types of.1 eesstives. Available;.
Building Fee Waivers
The Building Construction Fee Waiver Program affords property owners all exemption
from planning and building fees associated with new construction or renovation and
occupancy of eligible facilities within the target area,
Expedited Pei-mit Revigm:
In order to facilitate redevelopment within the Neighborhood Empowerment Zones, the
Community Development Department is committed to assisting applicants tilrough the
planning and permit review process as quickly as possible,
Lien Waivers
In order to render properties with Neighborhood Empowerment Zones more marketable,
tlae )Dien 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
fora period not to exceed three (3) years, except as outlined below.
Tax Abatement Program Guidelines:
The eligibility requirements are as follows:
Investment
Municipal Tax Abatement
Schedule
$50,000 & up for residential uses and
100%; or l0D% of the inorenietxtal value for Substantial
1St 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 itierenwntal value for Substantial
2nd Year
$75,000 & up for- all other uses
Investments relocating within the City;
$50,000 & tip for residential uses and
or 100% of the incremental value for Sttbst.antial
l W^ -
Ord year
$75,000 & tap for all other uses
Investments relocating within the City.
$5,000,000 or more for any eligible
100% for now investments and the incremental value for
dth Year
use
Substantial Investments relocating within the City.
$5,000,000 or more for any eligible
l00% for nvalue
5 Year
use
Substantial Investments relocating within the City.
l$5,000,000 or more for ati= eligible
I DO% for new investments and tl�e ittcrenianral value for
tt,
-� Year
oseSubstantial
Investments relocating within the C-----
f5',-6 -0 0, 0 6 6 ot• mare for any eligible
100% fot• tiew investments acid the irtcrernet—it al value fot
7"' Year
use
Substantial Investments relocating within the
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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 sliall be effective until the applicant leas met all of the
eligibility retluire►xients 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 appa'oves the tax
abatement agreement.
E. The applicant sliall 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 agroenient,
F. Personal and or real property identified before the period covered by the abatement
agreement wilt not be eligible for abatement.
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w1�z IF e Proparod by City of Beaumont
Community Dovelopmsnt ❑eperlmorit
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: 3485 Practice Street
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