HomeMy WebLinkAboutIR 8938INFORMAL REPORT TO CITY COUNCIL MEMBERS
NO. 8938
To the Mayor and Members of the City Council May 6, 2008
�+►�`T -bb Page 1 of 1
SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatement
to" for Property Located at 3008, 3012, 3106, 3110 and
3114 E. Rosedale 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.
3008, 3012, 3106, 3110, and 3114 E. Rosedale Street:
TSC Poly Retail, LLC (TSC Poly Retail) is the owner of the property located at 3008, 3012, 3106, 3110
and 3114 East Rosedale Street. The property is located in the Polytechnic/Wesleyan Neighborhood
Empowerment Zone and Council District 8. TSC Poly Retail applied for a five -year municipal property tax
abatement under the NEZ Tax Abatement Policy and Basic Incentives (Resolution No. 3487, 05- 2007).
City staff 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. TSC Poly Retail will invest a total of $1,100,000.00 to rehabilitate a
commercial/retail center located at the above referenced addresses.
The municipal property tax on the improved value of the commercial/retail, after its rehabilitation, is
estimated at $7,053.75, per year, for an estimated total of $35,268.75 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 (TAD) appraised value of the property. Currently, TSC Poly Retail is in discussions
with TAD to reduce the current TAD appraised value. If they are successful, the tax abatement amount
will be slightly higher.
The abatement cannot be assigned without the prior consent of the City Council in the event the property is
sold to another party.
Staff recommends proceeding with placing the tax abatement on the May 13, 2008, Council agenda for
consideration by City Council.
Gale A. Fisse or., P.E.
City Manager
Attachment (Rendering of Proposed Project)
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
: \ \\ ed
yy: «
¥\
\ \ \ \y\
. ».�