HomeMy WebLinkAboutIR 8906INFORMAL REPORT TO CITY COUNCIL MEMBERS
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To the Mayor and Members of the City Council December 18, 2007
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SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatement
„n For Property Located at 200 Adolph 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.
200 Adolph Street
M &M Building & Equipment Company (M &M) is the owner of the property located at 200 Adolph
Street. The property is located in the Trinity Park Neighborhood Empowerment Zone and Council
District 9. M &M 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 an 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. M &M will invest, at a minimum, $1,200,000 to expand and rehab a
manufacturing shop and warehouse.
The municipal property tax on the improved value of the property after its construction/rehabilitation is
estimated at $5,130, per year, for a total of $25,650 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 the property is sold, 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.
Staff recommends proceeding with placing the tax abatement on the January 8, 2007, City Council
agenda for consideration of approval by City Council.
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS