November 14, 2016 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEOERLANE)
4:30 P.m_ November 14, 2016
1_ MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12th Street, Nederland, Texas. See attached for quorum.
The following statement was posted:
"PURSUANT TO SECTION 30_07, PENAL COE)E (TRESPASS BY LICENSE HOLOER
WITH AN OPENLY CARRIED HANE)Gl/N), A PERSON LICENSEE) UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANE)G\JN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY_"
2_ INVOCATION ANE) PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were led by Chris Duque, City Manager.
3_ CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion. There will be no separate
discussion of these items unless a councilmember so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Albanese to approve the Consent Agenda Items a-e as presented. MOTION
CARRIED_
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Belaire.
Noes: None.
a. Minutes — October 24, 2016 regular meeting
b. October 2016 Departmental Reports
c. Tax Assessor Collection Report - October 2016
d. Street Closures:
Consider action authorizing the closure of Boston Avenue from 17th Street to
Twin City Highway and all intersections on Saturday, December 3r6 for the
Christmas on the Avenue event.
e. Consider action authorizing the closure of Nederland Avenue from 21�t Street to
1_ Street, 12th Street from Nederland Avenue to Boston Avenue, and Boston
Avenue from 12th Street to 17th Street on Tuesday, December 13th for the Annual
Lighted Christmas Parade.
f. Payments:
Bruce's General Construction - $203,794.50, Nederland Service Center
r
Minutes Continued, November 14, 2016
4. REGULAR AGENDA
a. Carmen Apple, Texas Division of Emergency Manager District Coordinator Field
Response, addressed the City Council regarding the procedures to apply for aid
after hurricanes and other disasters. No action was necessary.
b. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve the quarterly hotel occupancy tax fund financial report from
the Nederland Chamber of Commerce. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
c. Robert Sangster, Water Treatment Plant Supervisor; and Steve Hamilton, Public
Works Director, discussed recent lead and cooper testing mandated by the Texas
Commission on Environmental Quality. No action was necessary.
d. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve a proclamation in regards to National Home Care Month. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
e. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Neal to accept a donation to the Nederland Police and Fire Departments from the
Nederland Economic Development Corporation in the amount of $500.00. The
funds are being provided through proceeds from the Fall Market Day which were
earmarked for this donation. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
f. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to authorize the installation of a street light near/at 1404 South 16th
Street. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
g. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to approve final payment to Delta Specialty Contractor for work on the
Nederland swimming pool fence project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
h. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve a Letter of Understanding for Water Service with Phillips 66.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
i. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Austin to approve the purchase of a cab, chassis, and related Fire Department
Rescue Team equipment via the BuyBoard, HGAC, or other state-approved
contract. MOTION CARRIED.
r►
Minutes Continued, November 14, 2016
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
j. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to authorize the solicitation of bids for the Boston Avenue
repairs/improvements project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
k. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve a work authorization with Schaumburg & Polk, Inc. for a
concrete sewer line evaluation. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
I. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve amendment(s) to the City's Purchasing Policy. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
m. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve Resolution No. 2016-14, designating and creating a
Neighborhood Empowerment Zone. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
5. EXECUTIVE SESSION
Mayor Nugent announced the executive session was not necessary.
6. COMMUNICATION:
City Manager's Report:
a. Construction Project Update: Mr. Hamilton reported walls are going up for
the office spaces at the Service Center.
b. City offices will be closed on November 24th and 25th in observance of the
Thanksgiving holiday.
c. Christmas on the Avenue - Saturday, December 3rd
d. Boss's night will be December 3rd
e. Chris thanked Angela and her staff for the success of the Veterans Day
Ceremony.
7. ADJOURN
There being no further business a motion was made by Mayor Nugent and
seconded by Mayor Pro Tern Albanese to adjourn the meeting at 5:42 p.m. MOTION
CARRIED.
Minutes Continued, November 14, 2016
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
'bL
R. A. Nu en ayor
City of Ned land, Texas
atg op,w-
A EST:
G y Fergusi, City Clerk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R.A. Nugent Mayor 7
Talmadge Austin Council Member-Ward I V
Billy Neal Council Member-Ward II V
Don Albanese Council Member-Ward III v
Craig Belaire Council Member-Ward IV V
Chris Duque City Manager
Gay Ferguson City Clerk
Jesse Branick City Attorney V
Cheryl Dowden Director of Finance `/
Darrell Bush Police Chief � /
"ZT-1-4 . y Fire Chief
Steve Hamilton Director of Public Works v
Building :/
George Wheeler Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director V
Joni Underwood Executive Secretary V
Angela Fanette Parks Director V
A
R. A. Nugent, Mayor(
g 01'04)A"
G'ay F rgusgt- ity ler
November 14, 2016
Date
43ON C���
`x7 �'c TERRY WUENSCHEL
ALLISON NATHAN GETZ �� CHIEF DEPUTY
TAX ASSESSOR-COLLECTOR /
TEXA$
STATE OF TEXAS
COUNTY OF JEFFERSON
I, Allison Nathan Getz, P.C.C., the Tax Assessor-Collector of Jefferson County, Texas and
also,by contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under
oath, that this amount $164,050.31, represents all taxes collected for CITY OF NEDERLAND
during the month of October 2016.
dt.2 ate.
Allison Nathan Getz, P.C.C.
JEFFERSON COUNTY COURTHOUSE•P.O. BOX 2112 •BEAUMONT,TEXAS 77704-2112
PHONE: (409)835-8516 • FAX: (409)835-8589
RESOLUTION NO. 2016-14
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS, DESIGNATING
AND CREATING A NEIGHBORHOOD
EMPOWERMENT ZONE, NUMBER ONE, THE
CITY OF NEDERLAND, AND MAKING THE
NECESSARY FINDINGS OF PUBLIC BENEFIT
AND PUBLIC PURPOSE TO SUPPORT THE
CREATION OF THE ZONE IN THE CITY OF THE
PURPOSE OF DEVELOPMENT AND RE-
DEVELOPMENT
WHEREAS, the Nederland City Council desires to see the re-development
and re-vitalization of targeted areas of the City; and
WHEREAS, the creation of affordable housing coupled with economic
development, and the increase in social services, education, and public safety are
also high priority issues for the City; and
WHEREAS, the City has investigated different economic development tools
used in other municipalities, and determined that Neighborhood Empowerment
Zones have been used effectively and with positive results in other communities
facing the same economic challenges facing the City of Nederland; and
WHEREAS, the State of Texas, through the Neighborhood Empowerment
Zone program, as codified in Section 378 of the Texas Local Government Code,
has provided municipalities a framework and authorization to provide certain
incentives to both residential and commercial property owners, with the goal of
achieving redevelopment of targeted areas via the creation of a Neighborhood
Empowerment Zone; and
WHEREAS, the City of Nederland, pursuant to Section 378.003, makes the
necessary findings that the City and area within Nederland NEZ #1 will benefit the
area, and serve the public purpose of increasing public health, safety and welfare
of persons in the municipality; and
WHEREAS, the creation of Nederland NEZ #1 by the Nederland City Council
does satisfy the requirements set forth in Section 378.002; and
WHEREAS, with the Nederland City Council also supports the attached
guidelines, which set the general framework for how the NEZ #1 will incentivize
development and redevelopment within the boundary of the Zone.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS, THAT:
1. The area delineated in the attached map is designated as the Nederland
Neighborhood Empowerment Zone Number One, City of Nederland.
2. The City Manager's Department will be responsible for the program, and
authorizes that Department to prepare an application and administrative
procedures for the implementation of the NEZ program.
3. The attached guidelines (Neighborhood Empowerment Zone Incentive
Policy)will serve as the framework for the implementation of the program.
PASSED AND APPROVED by the City Council of the City of Nederland this
the 14TH day of November, 2016.
nA92/re`i ____---
R. A. Nugent, Mayor
City of Nederland, Texas
ATTEST:
04
Pay ,u44
Fer son, City v lerk
APPROVED AS TO FORM AND LEGALITY:
Je- e Br. is , City Attorney
CITY OF NEDERLAND
NEIGHBORHOOD EMPOWERMENT ZONE
INCENTIVE POLICY
I. GENERAL PURPOSE AND OBJECTIVES
It is the City of Nederland's goal to promote development and re-development within its
Neighborhood Empowerment Zone(s) 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 Nederland will give consideration to providing
various incentives for development and re-development within Neighborhood Empowerment Zones.
Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood
Empowerment Zone (NEZ) when a municipality determines that the creation of the zone would
promote:
1. the creation of affordable housing, including manufactured housing, in the zone;or
2. an increase in economic development in the zone;or
3. an increase in the quality of social services,education,or public safety provided to residents
of the zone;or
4. the rehabilitation of affordable housing in the zone.
The City, by adopting the following NEZ Incentive Policy, will promote rehabilitation of single family
homes, multi-unit housing and economic development in Neighborhood Empowerment Zones. For
each NEZ,the City Council may approve additional terms and incentives as permitted by Chapter 378
of the Texas Local Government Code or by City Council resolution. However, any tax abatement
awarded before the expiration of a NEZ shall carry its full term according to its tax abatement
agreement approved by the City Council.
As mandated by state law,the property tax abatement under this policy applies to the owners of real
property. All applications shall go through administrative review and approval will be granted by City
Council.
II. DEFINITIONS
"Abatement": a temporary partial exemption or full exemption from City of Nederland ad valorem
taxes on eligible real property located in a NEZ for a specified period on the difference between(i)the
amount of increase in the appraised value (as reflected on the certified tax roll of the appropriate
county appraisal district) resulting from improvements begun after the execution of a written Tax
Abatement Agreement and (ii)the appraised value of such real estate prior to execution of a written
Tax Abatement Agreement(as reflected on the most recent certified tax roll of the appropriate county
appraisal district for January 15t prior to the date on which the Tax Abatement Agreement was
executed).
"Agreement": a contractual agreement between a property owner and a taxing jurisdiction for the
purpose of a tax abatement.
"Affordable Units":affordable to persons earning less than 80%Area Median Family Income(AM FI)
as defined by U.S. Department of Housing and Urban Development(HUD)for single family housing
and under 60%AMFI as defined by HUD for rental and multi-family
Wage
"Base Year Value": the assessed value of either the applicant's real property and improvements
located in a designated reinvestment zone on January 1n of the year prior to the execution of the
agreement plus the agreed upon value of any property improvements made after January 1st 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 1st of the year prior to the abatement period
covered by the agreement.
"Building Code": Nederland City Code adopted code pursuant to the International Building Code.
"Capital Investment": real property improvements such as new facilities and structures, site
improvements, facility expansion, and facility modernization. Capital Investment does NOT include
land acquisition costs and/or any existing improvements, or personal property (such as machinery,
equipment,and/or supplies and inventory).
"Commercial/Industrial Development Project":a development project which proposes to construct or
rehabilitate commercial/industrial facilities on property that is (or meets the requirements to be)
zoned commercial,industrial or mixed use as defined by the City of Nederland Zoning Ordinance.The
building must be enclosed with walls, roof,windows,and stub outs.
"Eligible Rehabilitation": physical improvements to real property. Eligible Rehabilitation does NOT
include personal property(such as furniture,appliances,equipment,and/or supplies).
"Energy Star Program": an international standard for energy efficient consumer products originated
in the United States of America.
"Facility": property improvements completed or in the process of construction which together
comprise an integral whole.
"Gross Floor Area": measured by taking the outside dimensions of the building at each floor level,
except that portion of the basement used only for utilities or storage.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the total
gross floor area,and office,eating and entertainment,and/or retail sales and service uses constitute
10 percent or more of the total gross floor area and is on property that is(or meets the requirements
to be)zoned mixed use as described by the City of Nederland Zoning Ordinance.
"Multi family Development Project": a development project which proposes to construct or
rehabilitate multi-family residential living units on property that is(or meets the requirements to be)
zoned multifamily or mixed use as defined by the City of Nederland Zoning Ordinance.
"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 Nederland in accordance
with Texas Local Government Code Annotated Section 378 as amended.
"New Construction": a newly constructed improvement requiring a permanent foundation. This
excludes accessory structures such as sheds and incidental out buildings.
2IPage
"Primary Residence": the residence that has a Homestead Exemption on file with Jefferson County
Appraisal District.
"Project": a "Residential Project'; "Commercial/Industrial Development Project'; "Community Facility
Development Project", "Mixed-Use Development Project;or a "Multifamily Development Project."
"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 tax purposes, and which is to be included in the Neighborhood Empowerment Zone.
III. PROGRAM POLICY
It is the policy of the City of Nederland 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 Empowerment Zone for new construction or renovation of single family uses,
multi-family development, commercial and industrial projects, or mixed use development
(depending on the zoning of the property).
B. Eligible Property: Neighborhood Empowerment Zone Incentives may be granted for new
construction or renovation of owner-occupied single-family homes, office, retail, restaurant and
multi-family residential facilities within a Neighborhood Empowerment Zone, designated by the
City Council of the City of Nederland,Texas(depending on the zoning of the property).
C. No incentives shall be granted for development resulting from the relocation of an eligible facility
from one area of the city to within the Neighborhood Empowerment Zone. For the project to be
considered for NEZ Incentives,the project must comply with City of Nederland zoning laws.The
following Projects or Businesses shall not be eligible for any incentives under the City' of
Nederland's Neighborhood Empowerment Zone(NEZ)Tax Abatement Policy and Basic Incentives:
1. Sexually Oriented Businesses 6. Mobile and Industrial Homes Sales
2. Non-residential mobile structures 7. Check Cashing Stores
3. Tattoo Parlors 8. Taxi Stands
4. Slot Machine Businesses 9. Billboards
5. Drive-through businesses that serve alcohol 10. Non-confirming uses
IV. TYPES OF INCENTIVES AVAILABLE
A. PROPERTY TAX ABATEMENT
1. SINGLE FAMILY RESIDENTIAL PROPERTIES
i. Single Family Residential Properties—Abatement for Five (5)Years
3IPage
a. A homeowner shall be eligible to apply for a 5-year tax abatement by meeting the
following:
1) Property is located in a NEZ designated area;and
2) Property is owner-occupied and is the primary residence of the homeowner prior
to the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption. The Nederland City Council may
waive the primary residence by homestead exemption requirement on a case by
case basis; and
3) Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;and
4) Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 20%of the Base Value of the property but no
less than$10,000; and
5) Property is not in a tax-delinquent status when the abatement application is
submitted;the Nederland City Council may waive this requirement on a case-by-
case basis; and
6) Property is in conformance with the City of Nederland Zoning Ordinance upon
completion; and
7) Property meets and shall meet during the 5-year period all City codes and
ordinances to include building codes, the international property maintenance
codes,etc. and shall not become a nuisance;and
8) Property shall not be utilized as rental property during the abatement period and
five years after the abatement period ends.
b. For investor-owned single family property, an investor shall be eligible to apply for a
5-year tax abatement by meeting the following:
1) Property is located in a NEZ designated area;and
2) Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;and
3) For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 20%of the Base Value of the property; and
4) Property is not in a tax-delinquent status when the abatement application is
submitted; the Nederland City Council may waive this requirement on a case-by-
case basis;and
5) Property is in conformance with the City of Nederland Zoning Ordinance upon
completion;and
6) Property meets and shall meet during the 5-year period all City codes and
ordinances to include building codes, the international property maintenance
codes,etc.and shall not become a nuisance;and
7) Property shall not be utilized as rental property during the abatement period and
five years after the abatement period ends.
2. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
i. 100%Abatement for 5 Years. Abatements for multi-family development projects are for
5 years. In order to be eligible for a property tax abatement upon completion, a newly
constructed or rehabilitated multifamily development project must satisfy the following:
41 Page
1) Property is located in a NEZ designated area;and
2) For a multi-family development project constructed after NEZ designation, the
project must provide at least four residential living units OR have a minimum Capital
Investment of$250,000;and
3) For a rehabilitation project,the property must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 20%of the Base Value of
the property.Such Eligible Rehabilitation costs must come from the rehabilitation of
at least four residential living units or a minimum Capital Investment of$75,000;and
4) Property is not in a tax-delinquent status when the abatement application is
submitted;the Nederland City Council may waive this requirement on a case-by-case
basis; and
5) Property is in conformance with the City of Nederland Zoning Ordinance upon
completion; and
6) Property meets and shall meet during the 5-year period all City codes and ordinances
to include building codes, the international property maintenance codes, etc. and
shall not become a nuisance.
3. COMMERCIAL AND INDUSTRIAL PROJECTS LOCATED IN A NEZ
i. Abatement of City Ad Valorem taxes for Five (5)years.
Abatements for Commercial and/or Industrial Projects for up to 5 years are subject to City
Council approval. In order to be eligible for a property tax abatement, a newly
constructed or rehabilitated commercial and/or industrial project in a NEZ must satisfy
the following:
1) Property is located in a NEZ designated area;and
2) A commercial and/or industrial project constructed after NEZ designation must have
a minimum Capital Investment of$500,000;and
3) For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 20% of the Base Value of the
property,or$100,000,whichever is greater;and
4) Property is not in a tax-delinquent status when the abatement application is
submitted;the Nederland City Council may waive this requirement on a case-by-case
basis; and
5) Property is in conformance with the City of Nederland Zoning Ordinance upon
completion;and
6) Property meets and shall meet during the 5-year period all City codes and ordinances
to include building codes, the international property maintenance codes, etc. and
shall not become a nuisance.
ii. 100%Abatement of City Ad Valorem taxes for Ten(10)years
If an applicant applies for a tax abatement agreement with a term of more than five years,
this section shall apply. Abatements agreements for a Commercial and/or Industrial
projects for up to 10 years are subject to City Council approval.
a. Years 1 through 10 of the Tax Abatement Agreement
SIPage
Commercial and/or Industrial projects shall be eligible for 100%abatement of City ad
valorem taxes for years one through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
1) Property is located in a NEZ designated area;and
2) A commercial and/or industrial project constructed after NEZ designation must
have a minimum Capital Investment of$10,000,000;and
3) For a rehabilitation project,it must be rehabilitated after NEZ designation.Eligible
Rehabilitation costs on the property shall be at least 50%of the Base Value of the
property,or$1,000,000,whichever is greater;and
4) Property is not in a tax-delinquent status when the abatement application is
submitted;the Nederland City Council may waive this requirement on a case-by-
case basis; and
5) Project must create a minimum of twenty new full-time jobs with minimum
hourly rate of $13.00/hour or a mix of salaries deemed acceptable by the City
Council;and
6) Property is in conformance with the City of Nederland Zoning Ordinance upon
completion; and
7) Property meets and shall meet during the 5-year period all City codes and
ordinances to include building codes, the international property maintenance
codes,etc. and shall not become a nuisance.
4. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
i. 100%Abatement of City Ad Valorem taxes for 5 years
Abatements for Mixed-Use Development Projects for up to 5 years are subject to City
Council approval. In order to be eligible for a property tax abatement, upon completion,
a newly constructed or rehabilitated mixed-use development project in a NEZ must satisfy
the following:
1) Property is located in a NEZ designated area
2) Residential uses in the project constitute 20 percent or more of the total Gross Floor
Area of the project;and
3) Office, eating and entertainment, and/or retail sales and service uses in the project
constitute 10 percent or more of the total Gross Floor Area of the project; and
(1)A mixed-use development project constructed after NEZ designation must have a
•
minimum Capital Investment of$200,000;and
(2) For a rehabilitation project,it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 20% of the Base Value of the
property,or$100,000,whichever is greater
4) Property is not in a tax-delinquent status when the abatement application is
submitted;the Nederland City Council may waive this requirement on a case-by-case
basis;and
5) Project must create a minimum of twenty new full-time jobs with minimum hourly
rate of$13.00/hour or a mix of salaries deemed acceptable by the City Council.
6IPage
B. FEE WAIVERS
1. Building Fee Waivers—the Building 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.
2. Expedited Permit Reviews—in order to facilitate redevelopment within the Neighborhood
Empowerment Zones, the Community Development Department is committed to assisting
applicants through the planning and permit review process as quickly as possible.
3. Lien 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
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 and would require City Council approval.
4. For NEZ applicants,the following fee waivers(if applicable) including, but not limited to, are
reviewed and may be granted on a case-by-case-basis.
1. Building Permit fees 8. Floodplain fees
2. Plan Review fees 9. Water permit fees
3. Plumbing fees 10. Sprinkler System permit fees
4. Electrical fees 11. Plat application fees
5. Mechanical fees 12. Demolition fees
6. Fire fees 13. Zoning application fees
7. Right-of-way(curb and street cut)fees
C. DEMOLITION HAULING
Applicants covered by Section IV.A of this Policy may request the City of Nederland assist in the
removal of debris,trash, etc. as part of this program; however,this does not include waste from
any environmental remediation. Requests will be reviewed on a case-by-case basis. The applicant
would provide to the City Manager a written description of their anticipated request; the Public
Works Director would calculate the estimate of said request to include the following costs:landfill
costs,transportation costs, payroll costs to include overtime,etc. All requests would have to be
in compliance with all applicable state and federal laws, regulations,and requirements,as well as
the policies and requirements of the utilized landfill.
V. PROCEDURAL GUIDELINES
ABATEMENT GUIDELINES
1. A tax abatement shall only be considered if the application is submitted sixty days prior to
construction, excluding grading and/or demolition. In addition,the City will not abate taxes on
the value of real or personal property for any period of time prior to the year of execution of a
Tax Abatement Agreement with the City.
2. Tax Abatements for a new construction project will automatically terminate six months after
Council approval of the tax abatement if a building permit has not been pulled and a foundation
71P age
has not been poured.Construction must be completed and a certificate of occupancy permit must
be issued for the property.
3. Tax Abatement for a rehabilitation will not take effect until the project is complete, as per the
information submitted on the application.
4. In order to be eligible to apply for a tax abatement,the property owner/developer must:
a. Not be delinquent in paying ANY property taxes for ANY property owned by the
owner/developer and;
b. Not have any City of Nederland liens filed against any property owned by the applicant
property owner/developer. "Liens" include, but are not limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens. The Lien Waivers program is available
to resolves these issues.
5. Projects to be constructed on property to be purchased under a contract for deed are not eligible
for tax abatements.
6. Once a NEZ property owner in the NEZ satisfies the criteria set forth in this policy and applies for
an abatement, a property owner may enter into a tax abatement agreement with the City of
Nederland.The tax abatement agreement shall automatically terminate if the property subject to
the tax abatement agreement is in violation of the City of Nederland's Building Code, Zoning
Ordinances,the owner is convicted of such violation,etc.
7. A tax abatement granted under the criteria set forth in this policy can only be granted once for a
property in a NEZ for a maximum term of as specified in the agreement. If a property on which
tax is being abated is sold, the City may assign the tax abatement agreement for the remaining
term once the new owner submits an application so long as the new owner complies with all of
the terms of the tax abatement agreement and the City Council approves said request.A property
owner/developer of a multifamily development, commercial, industrial,community facilities and
mixed-use development project in the NEZ who desires a tax abatement must:
a. Satisfy the criteria set forth in Section III as applicable,and
b. File an application with the City Manager's Office,as applicable;and
c. The property owner must enter into a tax abatement agreement with the City of Nederland.
In addition to the other terms of agreement,the tax abatement agreement shall provide that
the agreement shall automatically terminate if the owner receives one conviction of a
violation of the City of Nederland's Building Code regarding the property subject to the
abatement agreement during the term of the tax abatement agreement;and
d. If a property in the NEZ on which tax is being abated is sold,the new owner may enter into a
tax abatement agreement on the property for the remaining term.
8. 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. In the event of cancellation,the City of Nederland
shall recapture all property tax revenue lost or liens may be reattached; the City Council shall
stipulate the tax value to be recaptured; and the owner/developer shall reimburse the City of
Nederland in said amount within forty-five days of receiving written notice.
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9. The terms of the agreement shall include the City of Nederland's right to: (1) review and verify
the applicant's property ownership (2) conduct an on-site inspection of the project in each year
during the life of the abatement to verify compliance with the terms of the tax abatement
agreement (3) in conflict of City of Nederland zoning ordinance. Upon review and/or onsite
inspection,the City will immediately terminate the agreement if the Project contains any business
ineligible for NEZ incentives as per Section III.C.
10. Upon completion of construction of the facilities,the City shall no less than annually evaluate each
project receiving abatement to insure compliance with the terms of the agreement.Any incidents
of non-compliance will be reported to the City Council. On or before February 1n of every year
during the life of the agreement, any individual or entity receiving a tax abatement from the City
of Nederland must provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the owner is in
compliance with each applicable term of the agreement. Failure to report this information and to
provide the required certification by the above deadline shall result in cancellation of agreement
and any taxes abated in the prior year being due and payable.
11. If a property in the NEZ on which tax is being abated is sold,the new owner may enter into a tax
abatement agreement on the property for the remaining term,as long as the use of the premises
does not change or violate the businesses that are not allowed by the NEZ. No incentive rights
may be sold or assigned without the approval of the City Council. Any sale, assignment or lease
of the property which is not permitted in the tax abatement agreement results in automatic
cancellation of the agreement and recapture of any taxes abated after the date on which an
unspecified assignment occurred.
12. Personal and or real property identified before the period covered by the abatement agreement
will not be eligible for abatement.
13. The applicant shall agree to hold the City of Nederland, its agents, employees and public officials
harmless and pay all attorneys' fees that are generated by any dispute regarding the tax
abatement agreement.
APPLICATION FEE
1. The non-refundable application fee for residential tax abatements is$100.
2. The non-refundable application fee for mufti-family,commercial, industrial,community facilities
and mixed-use development projects tax abatements is one half of one percent (0.5%) of the
proposed Project's Capital Investment,with a$200 minimum not to exceed $1,000.
VI. PROCEDURAL STEPS
Any person, partnership,organization,corporation or other entity desiring that the City of Nederland
consider providing Neighborhood Empowerment Zone incentives shall be required to comply with the
following procedural guidelines. No representations made herein considered binding unless and until
approved by the City of Nederland City Council.
A. APPLICATION AND REVIEW OF SUBMISSION FOR ALL NEZ TAX ABATEMENTS AND FEE WAIVERS
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1. The applicant for NEZ incentives under Section IV must complete and submit a City of
Nederland "Application for NEZ Incentives" and pay the appropriate application fee, as
applicable. Applications shall be submitted to the City Manager's Office located at 207 North
12th Street, Nederland,Texas 77627.
2. NEZ benefits will continue for certified projects as stated in the agreement.
3. The City Manager's Office will review the application for accuracy and completeness. A
complete application must include proof that the Project is located in a NEZ;
4. The City Manager's Office will evaluate a completed and certified application based on:
a. The project's increase in the value of the tax base.
b. Costs to the City(such as infrastructure participation,etc.).
c. Percent of construction contracts committed to: Nederland based firms
d. Other items which the City and the applicant may negotiate.
5. If criteria and guidelines are met, the City Manager's Office will submit to City Council
approval of the agreement
6. Consideration by the City Council—the City Council retains sole authority to approve or deny
any tax abatement agreement. All applications shall go through administrative review and
approval will be approved upon City Council approval.
B. APPLICATION EXECUTION AND AGREEMENT
1. Property Tax Abatement for Residential Properties and Multi-family Development Projects
a. Upon City Council approval, the City Manager shall execute a tax abatement agreement
with the applicant.
2. Property Tax Abatement for Commercial, Industrial,and Mixed-Use Development Projects
a. Upon City Council approval, the City Manager shall execute a tax abatement agreement
with the applicant.
3. Once an applicant's eligibility is approved by City Council,the City Manager's Office will inform
appropriate departments administering the incentives.
All tax abatements approved by the City Council will become effective on January 1st of the year
following the year in which a Certificate of Occupancy (CO) is issued for the qualifying
development project (unless otherwise specified in the tax abatement agreement). Unless
otherwise specified in the agreement,taxes levied during the construction of the project shall be
due and payable.
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