HomeMy WebLinkAboutRES 24-168RESOLUTION NO. 24-168
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 3520 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 Goverm-nent Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City
2024.
this the 2nd day of July,
Mayor Roy West -
STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is entered into by and between the City of Beaumont, Texas, a
home -mile city and municipal corporation of Jefferson County, Texas, acting herein by and
through its City Manager, Itereinafter referred to as "City," and DIAMOND HOMES, LLC,
4940 Fannett Road, Beaumont, Texas, hereinafter referred to as "Property Owner,"
collectively as the "Pal -tics."
WITNESSETH,
WHEREAS, Oil the 12th day of Febmary, 2008 tiie City Council of tiie City of
Beaumont, Texas, passed Ordinance No, 08-015, establishing the boundaries of
Empowerment Zone Number Two, for residential and commercial tax abatements as
auiltorized by Vernon's Texas Civil Statutes Tax Code, Section 312.001 and 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/orprovide duality,
affordable housing, in accordaltce witli said Ordinance and Statute, the City, and the
Prolerty Owner, do mutually ftgree as follows:
1. 'rile property, known as the "Premises" to be t1le subject of this Agreement shall
be the property at 3520 Pradice Street, Beaumont, I'exas and described as part of Lot 12,
Block 3, Roseaiiont Addition, Beaxuiiont, .lefferson County, `1,exas,
2. The property Ownoi• sliall cause to be developed new residential, known herein
as the "PI-oject," on the Premises and sliall not have a construction cost less than $50,000.00
and shall be completed not later thali March 31, 2025, slibjecl to delays caused by Force
maieure or by factors beyond Property Owner's reasonable control.
3. The Property Owtier agrees to pursue these improvements as good and valuable
consideration of this Agreement,
4. 111 the event that the Project and improvements for which an abatemetil has been
granted are not completed in accordance with this Agreement, their this Agreement shrill
be subject to termitaatian and all delinquent fees which otherwise would have been paid to
the City without the benefit of a waiver will become a debt to the City and shall be due,
owing and paid to file City within sixty (00) days of ally such event. iai the event that (Ile
Property Owner defaults ill the terns mid conditions of this Agreement, the City shall give
the Property Owner written notice of stick default gild if the Property Owner has not cured
stich 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 porsoilal
delivery or certified snail addressed as follows:
Arden Diamantis
Diamond Homes, LLC
4940 Famiett Road
Beauniont, Texas 77706
5, In the Ovent 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 filitllres sliail bean Act of Default by the City rind the City shall have
ninety (90) days to cure and remove the Default upon a•cceipt of written notice to do so
from the Property Owner. The Property Owner speciflea lly agrees that the City shall only
be liable to the Property Owner for the atuoltiit of waivers, outlined Herein, attorney's fees,
and costs of colirt, shall not be liable to the P1operty Owner for any alleged CO1lSegl10ntial
damages. The Property Owner 11e1-oby 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 nail addressed as follows:
Kenneth R, Williams, City Manager
City of Bel uniont
2
801 Maid, Suite 201
Beaumont, TX 77701
G. The temis and conditions of this Agreement are binding upon the successors and
assignees of all Parties hereto. Other than assignment to Diamond Homes, LLC,
hereinafler referred to as "Busitless Owtler," this Agreement cannot be assigned by the
Property Owner ar Butsincss Owner to anyone or any entity which is not all affiliatc of
Business Owner, unless written permission is first granted by the City, which perrnissian
shall be in (he sole discretion of the City. Any assignment oceurring within the scope of
this Agreement transfers all rights, responsibilities, and obligations heretofore grained to
Property Owner to the assignee, and the assignee shall, for purposes of this Agreoment, be
then known as "Proporty 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, EMPLOVEES, OFFICALS, AND/OR REPRESENTATIVES
RELATING TO SUCH IMPROVEMENTS.
8. The City shall have a reasonable right to inspect the Premises and Project during
1•egular daylight hours to ensure that the improvements are made according to the terries of
this Agreement. In addition, the Property Owner agrees to provide records and
documentatiorl to the City, sufficient to verify improverllents allcl employment data to
ensure perfornlance 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 terns and conditions of this Agreement, ail increases in taxes owed
to file City, assessed from the ad valorem real value resulting from these improvements of
these Premises, are Hereby abated ill their entirety for a three-year period beginning January
I, 2026, and termillating ,December 31, 2029.
10. Exemption from planning and building fees associated with 13eLv consti-lic(ioll
and liens associated with file pl-Clnises sliall be made part of this Agreernenf. Water tap
fees shall not be made part of this Agreement.
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I I. In Addition, the City and the Property Owner agree to cooperate with one
another to racilitate (lie expeditious processing of pelmits, including Zoning appllea tioils,
(s), subdivision Applicntions, plat Approvals, development iipplicatian(s), and building
permit applications required for (lie Completion of the project, in accordance with State
Statutes and City Ordinances,
12, The City acid tie Property Owner each agree to act in good faitit and to do all
things reasonably necessary or appropriate to carry out the terills and provisions of tills
Agreement, and to aid and assist the other in carrying out such tennis find provisions in
order to put file other in the same condition contemplated by tills Agreement.
13. If the Property Owner elects oot to proceed with the development of tile project
As contemplated by this Agreement, the Property 0lvlier will notify all Parties in writing
and the 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
slik-vive (lie telmillation hereof, if any.
14. Nothing in this Agreement is intended to create or establish a joint venture
between the Patties.
15. This Agreement was authorized by resolution of the City Council at its meeting
oil the 2nd day of ,illy 2024, a►iiliorizing file City Manager to execute the Agrecimilt otl
behalf of the City.
16. This sliall constitute a valid and binding agreement behveen the City arld tile
Property Owner when executed by the Parties, for the abatellient of City ad valorem taxes
in accordance tlierewitli, This Agreement and Any documents referenced herein shrill
represent the entirety of the Agreement between the Parties. Any amendments, adderuluins,
or material changes shall be in writing and require the consent and approval of all Parties.
The Agreement is performable in Jefferson County, Texas, witness our (lands
This day of
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CITY Or BEAUMONT
ATTEST:
Tina Broussard
City Clerk
PROPERTY OWNERS
Kenneth R. Williams.
City Manager
DIAMOND HOMES
By: Diamond Homes, U,C
CI}iei Lxectitive o im,
By, Arden Dinmantis, Chid'Exectttive Officer
ATTEST:- _
5
RICH Wlrl[ UPP*UyVHIrY
111EAURINT)(
T - R ' x ' ^ ` 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 Empowern;ent 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
't71 Lien Waivers
V Tax Abatement
DESCRIPTION OF PROJECT
1. Legal na,ne and address of applicant: Diamond Homes LLC 4940 Fannett Rd,
Bmt. Tx. 77705
2. Type of organization (Corporation, Ltd. Partnership, etc.): LLC
3. Date organization forined: November 23, 2021
4. Address and telephone number of headquarters location: 4940 Fanjnott Rd Beaumont, TX 77705
5. State(s) in which business is registered: Texas
b, Other locations of this business (naives 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 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 Const,
11. Location of project (street address): 3520 PradIce
12, Legal (lot, block & subdivision) description of the project (Attach plat of property): Rosemont
L12 Blk 3
13. Identify and describe the kind, number arid location of all improvements to the
physical property and discuss the development schedule of the proposed improvements.
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
15. Estimated construction commencement date: ASAP
16. Estimated construction completion date: 4 to 6 Months
17. P-stiniated date for project to be operational; End of Term Built
18. City liens requested to be released; ASAP
EMPLOYMENT IMPACT (for Non-residential Projec(s)
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 living in;
(a) the Neighborhood Fuipowernwnt Zone 75%
(b) City of Beaumont 100%
(c) Jefferson Cowity 100%
(d) Outside Jefferson County 25%
21. How many new, temporary and part-time jobs will be created in Beaun}ont? 10 to 20
22. What types of jobs will be created? General Construction
23. What will be tbo, totat project annual payroll of the newly created jobs? 50k to I00k
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, Dirt
COMMUNITY IMPACT
28. Do you anticipate the proposed project having a substantial impact on the local
residential, commercial or retail market? yes
29. Will rezoning and plattingJreplatting be required? No
2
It is understood that the information }provided herein is based on estimates and
projections, btrt that such estimates and projections have been frilly 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
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 BEA.UMONT STAFF RECOMMENDATIONS) AND/OR COMMENT(S):
(To be completed by City of Beaumont Staff Only)
2. Recommendation.,
Approve
Disapprove
Comments:
4
nIcu ► MI OPPOOTUNITv
I r
U1 N mISF7,1
�' • i • is • A. • 8
City of Beaumont
Neighborhood Empowerment Zone
Incentive Policy
Program Goals'.
It is the City of BeaUrT1011CS goal to promote development within its Neighborhood
Empowerment Zones in an effort to improve (lie local economy and enhance the duality
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: frill 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 I of that year but before rite execution of the agreernerit, and/or the
assessed value of any tangible personal property located on the owner`s real property oil
January I of the year prior to the abatement period covered by the agreement.
D. Facility. property improvements completed or in tite 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 abatertment, as authorized by the City of
Beaumont in accordance with'rexas Local Government Code Annotated Section 378 as
amended,
G. Deal 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
unproved and valued for property tax pu poses, and which is to be included in the
Neighborhood Empowerment Zone.
H. Substantial Investment: a project deemed as all eligible facility undor 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 documents 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 Unipowe►'t-nent Zone Incentives may be granted
within a Neighborhood Empowerment Zone for new construction or renovation of single-
family uses for investirients 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 ho►nes, office, retail,
hotel and oicekingf.acilities, restaurant and mufti -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 development resulting from (lie relocation of an
eligible facility from one area of the city to within the Neighborhood Empowerment
Zone, excepting projects considered "Substantial as defined hereiiti.
Procedural Guidelines:
Any person, partnership, organization, corporation or other entity desiring that the City of
Beaus -font consider providing Neighborhood Empowerment Zone incentives shall be
required to comply with the following procedural guidelines. No representations made
herein considered binding tiMess and until approved by the City of Braun►ont City
Council.
Preliminary Application:
Applicants shall submit a completed "Application for Neighborhood Empowerment Zone
Development Incentives" form for consideration of incentives to the Coulillupity
Development Department of the City of Beautont, 901 Main Street, Beaumont, Texas
77701.
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Consideration of the Application;
A. The City Manager will consider requests for incentives in accordanee w'ath these
policies, piu-suant to Chapter 378 of the Texas focal Government Code. Additional
information may be requested as needed.
B, The City CouneiI may enter into an agreement that outlines the terms and Conditions
between tine 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 ensau•e compliance with the
agreement and accuracy of the owner certification.
Recapture:
If a project is not completed as specified, or if the tenns 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, aassigulnealt 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 execration of the recapture
provision, as outlined above.
lyres of Incentives_ Available:
Building Fee Waivers
The Building Construction Fee Waiver Prograan affords property owners an exemption
frotta planning and building fees associated with new constrUCtion or renovation and
occupancy of eligible facilities within the target area.
Rxpedited Permit Revicky
In order to facilitate redevelopment within the Neighborhood Empowerment Zones, the
Community Development Department is comillitted to assisting applicants through the
planning and permit review process as q►aickly as possible.
Lien Walvers
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 exponditures associated with cutting Nigh 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 Tape Abatement Program is an economic development tool designed to
provide incentives for the new constE•uctlon or renovation of single -fancily homes, office,
retail, restaurant and multi-fannily 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.
Tax Abatement Prograin Guidelines:
The eligibility requirements tire as follows:
)(ilvestiiient_-_Municipal Tax Abatement Sclrcriule
$50,000 & tip for residential uses and
100%; or 100% of the incremental value for Substantial
Pt Year
$75,000 & up for all other uses
investments relocating within file City.
-u
$50,000 & up for residential uses and
- ' - ^` -
100%; or 100% of the incremental valtie for Strbstantlal
- --- ---
„a Yeah
$75,000 & tip for all other uses
Investments relocating within the City,
$50,000 & tip for residential uses and
100%; or 100% of the incremental value for Substantial
Yd year
$75,000 & up for all other uses--
relocating within the City.
-- --
$5,000,000 or more for any eligible
- -- , -investments - ___ _....
10Q°!o for new investments and the incremental value for
(-
41" car
rise
Substantial Investments relocating within the City.
$5,000,000 or more for airy eligible
investments and the incrc►nental-value for
"'
5 Yeai
Ilse
Substantial Investments relocating within the Cit}I.
.--- -
- ----J._._ _----_ artyeligible
$5,000 000 or more for any eligibie
-.._......_�..�............. r- ,-__. ...._._.___.-
100%for new EnvestErletrts and the ilicrel�-iental value for
10 investments
th
G Year
1150
Substantial Investments relocating within the City.
($5,000,000 or more for any eligible
I00°!o for new investments and the incremental value for
7 Year�t,
Ilse
Substantial Investments relocating within the City
-
4
Abatement Program Cousidevations:
A. The final valuation determined by the Jefferson Comity 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 tine applicant has inet all of the
cligibilily requirements contained in (he 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 (late the Cite Council approves the tax
abatement agreement.
P. The applicant sliall agree to hold the City of Beaumont, its agents, employees and
pubitc officials harmless and pay aft 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
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tip, l Wa m Pmpaf" by City of Beauonl
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Community Oovalopment ❑opanmenf
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quest for Economlc Development Incentives under the Neighborhood Empowerment
e Program for the development of new residential construction.
pplicant: Arden Diamantis of Diamond Homes, LLC
)cation: 3520 Wradlce Street
0 100
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