HomeMy WebLinkAboutIR 10153 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10153
To the Mayor and Members of the City Council June 5, 2018
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SUBJECT: TAX ABATEMENT POLICY UPDATE
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Chapter 312 of the Texas Tax Code allows, but does not obligate or require, the City to grant a
Tax Abatement on the value added to a particular property due to a specific development project
that meets the eligibility requirements set forth in the Policy. In order for the City to participate in
Tax Abatement, the City is required to establish guidelines and criteria governing Tax Abatement
agreements that are effective for two (2) years from the date of its adoption. The City currently
has a policy in place that sets forth the guidelines and criteria for persons or entities interested in
receiving a Tax Abatement from the City. This policy was approved on June 28, 2016 (Res. 4647-
06-2016) and expires on June 27, 2018.
As a result of the Economic Development Strategic Plan, presented and accepted by the Fort
Worth City Council on December 12, 2017, the Economic Development Department has been
developing a comprehensive incentive strategy. This strategy would be designed to address
specific gaps in our incentive proposals and address issues outlined in the strategic plan,
including: attracting high wage job growth; developing a more sustainable tax base, driven less by
residential property and more by commercial and industrial development;, capitalizing on high
growth business; and enhancing quality of place throughout the community.
In order to achieve those objectives, our policy needs to have tangible and measurable outcomes
that have a wide level of community support. It is our intention to allow the existing Tax
Abatement Policy to expire on June 27, 2018, and to bring forth a more comprehensive strategy,
which will include a new Tax Abatement Policy, at a later date. This will allow the department
time to finalize the strategy and to gain feedback and insight from our community stakeholders.
The City of Fort Worth will still have the ability to utilize Chapter 380 Economic Development
Program grants for development projects during this period.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS