It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement Agreement with Alanah GB, LLC for the construction of a single-family dwelling located at 3058 Ray Simon Drive in the 28th Street/Meacham Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.

Alanah GB LLC (Property Owner) is the owner of the property described as Lot B, Block 10, Karen's Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the revised Plat recorded in Volume 388-46, Page 897, Plat Records, Tarrant County, Texas, at 3058 Ray Simon Dr., Fort Worth, Texas.  The property is located within the 28th Street/Meacham Neighborhood Empowerment Zone (NEZ).  

The Property Owner plans to invest an estimated amount of $185,000.00 to construct an approximately 1,959 square foot single-family residence and detached garage (Project).  The Project will be used as a second residence for the owner.

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 2019 at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in May 2018 for the property as follows:          

The municipal property tax on the improved value of the Project after construction is estimated in the amount of $1,489.00 per year for a total amount of $7,445.00 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 secondary residence.  All other assignments must be approved by the City Council.

This property is located in COUNCIL DISTRICT 2.