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HomeMy WebLinkAboutIR 9311INFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council No. 9311 October 12, 2010 SUBJECT: REVIEW OF NEIGHBORHOOD EMPOWERMENT ZONE TAX ABATEMENT FOR PROPERTY LOCATED AT 1516 EAST MAGNOLIA AVENUE The purpose of this Informal Report is to provide City Council with information regarding a proposed Neighborhood Empowerment Zone (NEZ) residential tax abatement. Chapter 378 of the Texas Local Government Code provides that a municipality can offer an abatement of municipal property taxes for properties located in a NEZ. 1516 E. Magnolia Avenue Shalitha Shelby (Property Owner) is the owner of the property described as Lot 8, Block 11, Lakeview Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 204, Page 5, of the Plat Records of Tarrant County, Texas, at 1516 E. Magnolia Avenue, Fort Worth, Texas 76104. The property is located within the Evans & Rosedale NEZ and Council District 8. The Property Owner plans to invest an estimated $25,800.00 to rehabilitate a single family residential structure (Project) that will add approximately 600 square feet and will be used as rental property. The Housing and Economic Development Department reviewed the application and certified that the Project met the eligibility criteria to receive a NEZ municipal property tax abatement. The Property Owner applied for a five -year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (Resolution No. 3742, 05- 2009). The municipal property tax on the improved value of the single family residential structure after construction is estimated at $220.59 per year, for a total of $1,102.95 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 and Project, the agreement may be assigned without subsequent City Council approval to the owners' first mortgagee or to a homebuyer who will use the required improvements as their primary residence. All other assignments must be approved by the City Council. Staff recommends proceeding with placing the tax abatement on the October 19, 2010, City Council agenda for consideration by City Council. If you should have any questions regarding this information please contact Cynthia Garcia, Assistant Director, Housing and Economic Development Department at 817 -392- 8187. Dale A. Fisseler, City Manager Attachments: Map, Rendering and Pictures ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS �r n-5 I 3 WA