It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement Agreement with Joshua and Sarah Bright for the construction of a single-family dwelling located at 416 Sandy Lane in the Northeast 820/IH-30 Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.

Joshua and Sarah Bright (Property Owners) are the owners of the property described as all of Lot 4 and part of Lot 3, Block 5, Draughon Heights Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the plat thereof recorded in Volume 388-U, Page 69, Plat Records, Tarrant County , Texas, at 416 Sandy Lane, Fort Worth, Texas.  The property is located within the Northeast 820/IH-30 Neighborhood Empowerment Zone (NEZ).  

The Property Owners plan to invest an estimated amount of $235,200.00 to construct an approximately 3,113 square foot single-family residence (Project).  The Project will be used as the Property Owners' primary residence.

The Neighborhood Services Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement.  The NEZ Basic Incentives includes a Five-Year Municipal Property Tax Abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ.

Upon execution of the Agreement, the total assessed value of the improvements used for calculating municipal property tax will be frozen for a period of five years starting January 2017 at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in 2016 for the property as follows:              

Pre-Improvement TAD Value of Improvements	$         0.00
Pre-Improvement Estimated Value of Land	$65,975.00
Total Pre-Improvement Estimated Value	$65,975.00

The municipal property tax on the improved value of Project after construction is estimated in the amount of $2,011.00 per year for a total amount of $10,055.00 over the five-year period.  However, this estimate may differ from the actual tax abatement value, which will be calculated based on the Tarrant Appraisal District appraised value of the property.


In the event of a sale of this property, the Tax Abatement Agreement may be assigned to a new owner's first mortgage or a new owner as a primary residence.  All other assignments must be approved by the City Council.

This property is located in COUNCIL DISTRICT 5, Mapsco 66Q.

This M&C does not request approval of a contract with a business entity.