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COUNCIL ACTION: Approved As Amended on 12/12/2017 |
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DATE: |
12/12/2017 |
REFERENCE NO.: |
G-19189 |
LOG NAME: |
0611/9/17 VERIFY HSTE - 4TH QUARTER |
CODE: |
G |
TYPE: |
NON-CONSENT |
PUBLIC HEARING: |
NO |
SUBJECT: |
Verify Completion of Rehabilitation Projects for Historic and Cultural Landmark Properties Located at 2314 Lipscomb Street, 1409 N. Commerce Street, 1411 N. Commerce Street, and 1000 Bessie Street, and 1504 Fairmount Street and Declare Said Properties to be Entitled to a Historic Site Tax Exemption (COUNCIL DISTRICTS 2, 8 and 9) |
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RECOMMENDATION: |
It is recommended that the City Council: 1. Verify completion of the rehabilitation projects for Historic and Cultural Landmark properties located at 2314 Lipscomb Street, 1409 N. Commerce Street, 1411 N. Commerce Street, and 1000 Bessie Street, and 1504 Fairmount Street; and
2. Declare that 2314 Lipscomb Street, 1409 N. Commerce Street, 1411 N. Commerce Street, and 1000 Bessie Street, and 1504 Fairmount Street be entitled to the Historic Site Tax Exemption set forth herein. |
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DISCUSSION: |
The purpose of this Mayor and Council Communication (M&C) is to verify the completion of the Historic and Cultural Landmark (HC) properties located at 2314 Lipscomb Street, 1409 N. Commerce Street, 1411 N. Commerce Street, 1000 Bessie Street, and 1504 Fairmount Street (collectively, Properties); and declare said Properties to be entitled to the Historic Site Tax Exemption set forth below.
Any structure that is designated as Historic HC, or that contributes to a district, and the land necessary for access to and use of the structure that is substantially rehabilitated is eligible to receive the following tax exemption under Chapter 4.401 of the City Code, with the intent that the properties receiving the tax exemption will be in the same position in regards to City of Fort Worth taxes for the entire term of the exemption. Substantial rehabilitation consists of rehabilitation at a cost that equals or exceeds the greater of 30 percent of the assessed value of the structure prior to rehabilitation or $3,000.00. The structure and land described above will have an assessed value for city tax valuation purposes equal to the assessed value of such structure and land for the tax year immediately prior to the commencement of rehabilitation. Any increase in the value of the structure and land in excess of the assessed value for the tax year immediately prior to commencement of the rehabilitation is exempt from city ad valorem taxes. The term of this tax incentive is ten years, commencing on the first day of the tax year following the City Council's verification that the rehabilitation project is complete. If, during the ten-year term, the structure or the land is assessed at a lower value than the tax year immediately prior to commencement of the rehabilitation, the lower value will apply.
The Historic and Cultural Landmarks Commission (HCLC) reviewed and approved the initial applications and verified completion of the rehabilitation projects for the Properties on the dates set forth in the table below. The initial applications for the Properties were approved by the City Council on the dates set forth below.
The property owners have submitted all required documentation that the properties have been substantially rehabilitated, and Staff represents that the properties have been substantially rehabilitated in accordance with the applicable provisions of the City Code. The table below shows the required expenditures necessary to substantially rehabilitate the properties and the total amount actually expended by the property owners. The total amount expended on the rehabilitation projects exceeds the required expenditure. Staff recommends that the City Council verify completion of the rehabilitation projects for the properties because they satisfy all the requirements of the City Code. Upon verification, Staff recommends that the City Council declare the properties to be entitled to the tax exemption. Any increase in the assessed land or improvement (structure) values set forth in the table below will be exempt from city ad valorem taxes for a period of 10 years, commencing on the first day of the 2018 tax year. Location | Taxing Year* | Land Value | Improvement (Structure) Value | Required Expenditure | Total Expended | HCLC Initial Approval | City Council Initial Approval | HCLC Verification | 2314 Lipscomb St. | 2016 | $62,500.00 | $66,970.00 | $20,091.00 | $26,462.00 | 6/12/17 | 8/1/17 | 10/11/17 | 1409 N. Commerce St. | 2015 | $8,997.00 | $8,503.00 | $3,000.00 | $17,179.00 | 7/11/16 | 12/5/17 | 12/11/17 | 1411 N. Commerce St. | 2015 | $8,997.00 | $14,003.00 | $4,200.00 | $10,874.00 | 7/11/16 | 12/5/17 | 12/11/17 | 1000 Bessie St. | 2015 | $4,850.00 | $51,150.00 | $15,345.00 | $100,100.00 | 3/14/16 | 12/5/17 | 12/11/17 11/13/2017
| 1504 Fairmount Ave. | 2015 | $50,000.00 | $110,000.00 | $33,000.00 | $37,976.00 | 7/11/16 | 12/5/17 | 12/11/17 |
*The taxing year refers to the tax year immediately prior to the commencement of rehabilitation. These properties are located in COUNCIL DISTRICTS 2, 8 and 9. This M&C does not request approval of a contract with a business entity. |
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FISCAL INFORMATION/CERTIFICATION: |
The Director of Finance certifies that that approval of the above recommendation will have no material effect on the Fiscal Year 2018 Budget. While no current year impact is anticipated from this action, upon approval reduced revenues will be included in the long term forecast associated with years 2019 - 2023. |
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Submitted for City Manager's Office by: |
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Originating Department Head: |
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Additional Information Contact: |
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