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HomeMy WebLinkAboutIR 89724: INFORMAL REPORT TO CITY COUNCIL MEMBERS P'IA' ' To the Mayor and Members of the City Council No. 8972 August 19, 2008 Page 1 of 1 SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatement For Property Located at 5500 Eastland Street 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. 5500 Eastland Street FW- Eastland Housing Partners, Ltd. is the owner of the property located at 5500 Eastland Street. The property is located in Council District 5 in the Stop Six NEZ. FW- Eastland Housing Partners, Ltd 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 Department reviewed the application and certified that the property met the eligibility criteria to receive a NEZ municipal property tax abatement. FW- Eastland Housing Partners, Ltd will invest $11,736,566.00 to build a 146 unit townhome complex. The municipal property tax on the improved value of the property after its construction is estimated at $100,348.00 per year, for a total of $501,738.00 over the five -year period. However, this estimate may differ from the actual tax abatement value, which will be calculated based on the TAD appraisal value of the property. In the event of a sale of this property, the agreement may be assigned, with City Council approval, to the new owner(s), as long as the new owner(s) meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. It should be noted that the City Council previously approved a 24 month construction Ioan for $900,000.00 in HOME funds on June 12, 2007, M &C C- 22164. Staff recommends proceeding with placing the tax abatement on the August 26, 2008, City Council agenda for consideration by City Council. t d A. Fisseler, E. City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS 11 Residences at Eastland 0 130 M Sao 780 1,�� FORT WORTH i =m Lu Lit -TI c La o O r zo g m M < O z [ l 1 9 IN THE FENCES AT E&sS'2'LAM a.e.f �* t f FORT W0R n—L TEXAS 20Q CLUBHOUSE: FRONT` E .EYkTION P' •' S OF 0 Fm.* T� RE51©ENGES AT EASTLAND * FORT tt10F2ii 1, TEXAS �.�... ""�' ~"""'"•` BiltLD2i�iG FROW ELEVATIC44 rH4 {sw�..,..yyw M� yy, IH rwAr rYaaw Mh. it M W ,,,�„ THE RESU:)E ES AT EASTLAND c. { .' I * FORT WORTW, TE KAS 200(:;, WILDING FROT ELEVATION ti{ ��M.w -(WTI �F. CYh [f� r�+�a N�IWM YM.'17 Kist