It is recommended that the City Council approve the application from the property owner for partial approval of the Historic Site Tax Exemption for 1501 W. Myrtle Street.

The purpose of this Mayor and Council Communication is to approve the initial application for the rehabilitation project for the following Historic and Cultural Landmark (HC) property as part of the City' s historic site tax exemption program:

Any structure that is designated as 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 property 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. During the term of the historic site tax exemption, the structure and land will receive an exemption in an amount equal to the difference between the following: (1) The City of Fort Worth current-year taxable value after application of any other applicable exemptions, including the homestead exemption; and (2) the City of Fort Worth base-year taxable value after application of any other applicable exemptions, including the homestead exemption. The term of this tax incentive is 10 years, commencing on the first day of the tax year following the City Council' s verification that the rehabilitation project is complete.

The application for the historic site tax exemption was submitted in October 2017. The Historic and Cultural Landmarks Commission (HCLC) approved the application for the partial tax exemption and the certificate of appropriateness, where applicable, for the rehabilitation of this property at a public hearing (See table below).

The property owners intend to substantially rehabilitate the property in compliance with all City Ordinances. Following substantial rehabilitation of the property listed, a tax exemption application will be submitted to the City Council for verification of completion of the applicable project. If the City Council verifies completion of the applicable project and declares the property to be entitled to a tax exemption, then the property will receive the tax incentives set forth above, which will be based on the assessed values of the improvements and the land necessary for access to and use of the structure set forth in the chart below.  

*The taxing year refers to the tax year immediately prior to the commencement of rehabilitation.

This property is located in COUNCIL DISTRICT 9.

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