M&C Review


COUNCIL ACTION:  Approved on 9/11/2018 

DATE: 9/11/2018 REFERENCE NO.: C-28844 LOG NAME: 192671EBERRYST
CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of a Five-Year Tax Abatement Agreement with Estrella Torres for the Construction of a Single-Family Dwelling Located at 2671 East Berry Street in the Berryhill/Mason Heights Neighborhood Empowerment Zone (COUNCIL DISTRICT 8)

RECOMMENDATION:

It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement Agreement with Estrella Torres for the construction of a single-family dwelling located at 2671 East Berry Street in the Berryhill/Mason Heights Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.

 
DISCUSSION:

Estrella Torres (Property Owner) is the owner of the property described as Lot 13, Block 1, Wesleyan Hills Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof recorded in Volume 388-E, Page 31, Plat Records, Tarrant County, Texas, at 2671 East Berry Street, Fort Worth, Texas.  The property is located within the Berryhill/Mason Heights Neighborhood Empowerment Zone (NEZ).  

The Property Owner plans to invest an estimated amount of $92,800.00 to construct an approximately 1,801 square foot single-family residence (Project).  The Project will be used as the homeowner's 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 2019 at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in August 2018 for the property as follows:          

Pre-Improvement TAD Value of Improvements

$       0.00

Pre-Improvement Estimated Value of Land

$5,000.00

Total Pre-Improvement Estimated Value

$5,000.00

The municipal property tax on the improved value of the Project after construction is estimated in the amount of $747.00 per year for a total amount of $3,735.00 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 8.

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

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of the above recommendations an estimated $3,735.00 in property taxes will be abated over the five year period from 2019-2023.  This amount will be included in the City's five year financial forecast.

TO
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Account Project
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Program Activity Budget
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FROM
    Fund Department
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Account Project
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Program Activity Budget
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Amount

Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Aubrey Thagard (8187)
Additional Information Contact:
Sarah Odle (7316)

 
 
ATTACHMENTS
  2671 E. Berry Map for Council.pdf
  Elevations.pdf