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HomeMy WebLinkAboutIR 9064INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9064 T , To the Mayor and Members of the City Council June 9, 2009 Page 1 of 1 i a SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatement ..n For Property Located at 115 W. Seminary Drive The purpose of this Informal Report is to provide City Council with information regarding a proposed Neighborhood Empowerment Zone 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 Neighborhood Empowerment Zone (NEZ). 115 W. Seminary Drive Hemphill Joint Venture (Property Owner) is the owner of the property described as Lots 4 and 5, Block 1, Martin Place Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 902, Page 307, of the Plat Records of Tarrant County, Texas, at 115 W. Seminary Drive, Fort Worth, Texas 76115. The property is zoned E- Neighborhood Commercial and is located within the Hemphill/Berry NEZ and Council District 9. The Property Owner applied for a five -year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (Resolution No. 3487, 05- 2007). The Property Owner plans to invest an estimated $400,000.00 to rehabilitate the interior and exterior of the building (Project) which is approximately 7,700 square feet to use as retail/office space. The Housing & Economic Development Department reviewed the NEZ tax abatement application and certified that the Project met the eligibility criteria to receive a NEZ municipal property tax abatement. The municipal property tax on the improved value of the commercial building after construction is estimated at $3,420.00, per year, for a total of $17,100.00 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 with City Council approval, only if the new owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. Staff recommends proceeding with placing the tax abatement on the June 16, 2009, 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 as 817 -392 -8187. L Dale A. Fl"Vj City MlanMpr Atwhmem Map, Eievation & [' ows ISSUED BY THE CITY MANAGER FORT wntaTu 'r=V A& To mow* 0 0 C: 0.. CD CD 3 0 0 Z CD CD 3 N -�7 Z m N � ƒ 3 01,