HomeMy WebLinkAboutIR 8986INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 8986
To the Mayor and Members of the City Council October 21, 2008
'. Page 1 of 2
SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatements
for Property Located at 600 Canyon Creek Trail and 3137 Wabash
Avenue
The purpose of this Informal Report is to provide City Council with information regarding two proposed
Neighborhood Empowerment Zone tax abatements.
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.
600 Canyon Creek Trail
Carl A. and Carla Holmes are the owners of the property located at 600 Canyon Creek Trail. The property
is located in the Woodhaven Neighborhood Empowerment Zone (Council District 4). Carl A. and Carla
Holmes applied for a five -year municipal property tax abatement under the NEZ Tax Abatement Policy and
Basic Incentives (Resolution No. 3487, 05- 2007). The Housing and Economic Development Department
reviewed the application and certified that the property met the eligibility criteria to receive a NEZ
municipal property tax abatement. The NEZ Basic Incentive 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. Carl A. and Carla Holmes will invest a total of $293,180.00 to construct a
single family home that will be used as their primary residence.
The municipal property tax on the improved value of the home after its construction is estimated at
$2,005.00, per year, for a total of $10,025.00 over the five -year period. However, this estimate may differ
from the actual tax abatement value, which will be calculated based on the TAD appraised value of the
property.
In the event the property is sold, the agreements may be assigned without subsequent City Council approval
to the owners' first mortgagee, or to a homebuyer who will use the required improvements as his/her
primary residence, or to that homebuyer's mortgagee, as long as the eligibility criteria as stated in the NEZ
Tax Abatement Policy and Basic Incentives are met. All other assignments must be approved by the City
Council.
3137 Wabash Avenue
James B. Freeman is the owner of the property located at 3137 Wabash Avenue. The property is located in
the Berry/University Neighborhood Empowerment Zone (Council District 9). James B. Freeman applied
for a five -year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic
Incentives (Resolution No. 3487, 05- 2007). The Housing and Economic Development Department
reviewed the application and certified that the property met the eligibility criteria to receive a NEZ
municipal property tax abatement. The NEZ Basic Incentive 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. James B. Freeman will invest a total of $60,000.00 to rehabilitate a single
family home that is his primary residence.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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