HomeMy WebLinkAboutIR 8927INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 8927
To the Mayor and Members of the City Council April 1, 2008
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W SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatement
,;,% for Property Located at 5133 Pinson 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.
5133 Pinson Street
James H. and Leanna Jaubert are the owners of the property located at 5133 Pinson Street. The property is
located in the Stop Six Neighborhood Empowerment Zone and Council District 5. The property is also
located in the Historic Stop Six Sunrise Edition. The Historic and Cultural Landmarks Commission
approved the construction plan at its meeting dated January 14, 2008. James and Lanna Jaubert 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. 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 and Leanna Jaubert
will invest a total of $140,000.00 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 rehabilitation is estimated at
$963.20, per year, for a total of $4,816.00 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.
Staff recommends proceeding with placing the tax abatement on the April 8, 2008, City Council agenda for
consideration by City Council.
Dale A. Fisseler, E.
City Manager
Attachment (Floor Plan for 5133 Pinson Street)
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
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