HomeMy WebLinkAboutIR 8901INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8901
To the Mayor and Members of the City Council December 4, 2007
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SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatements
for Properties Located at 1325 S. Lake Street, 1600 Lipscomb
Street, and 5925 Donnelly Avenue.
The purpose of this Informal Report is to provide City Council with information regarding three
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.
1325 S. Lake Street
Paul and Margo Allen are the owners of the property located at 1325 S. Lake Street. The property is
located in the Magnolia Village Neighborhood Empowerment Zone and Council District 9. Paul and
Margo Allen 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. Paula and Margo Allen will invest a total of $170,000 to construct a
single family home.
The municipal property tax on the improved value of the home after its construction is estimated at
$1,169, per year, for a total of $5,845 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.
1600 Lipscomb Street
Christina Hardy is the owner of the property located at 1600 Lipscomb Street. The property is located
in the Magnolia Village Neighborhood Empowerment Zone and Council District 9. Christina Hardy
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. Christina Hardy will invest a total of $150,000 to construct a single family home.
The municipal property tax on the improved value of the home after its construction is estimated at
$1,032 per year for a total of $5,160 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.
5925 Donuelty Avenge
H. A. Shaban is the owner of the property located at 5925 Donnelly Avenue. The property is located
in the Ridglea/Corno Neighborhood Empowerment Zone and Council District 7. H. A. Shaban 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 NEZ municipal property tax abatement.
H. A. Shaban will invest a total of $420,000 to construe a neighborhood retail center.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8901
To the Mayor and Members of the City Council December 4, 2007
Page 2 of 2
SUBJECT: Review of Neighborhood Empowerment Zone Tax Abatements
for Properties Located at 1325 S. Lake Street, 1600 Lipscomb
Street, and 5925 Donnelly Avenue.
The municipal property tax on the improved value of the property is estimated at $3,231 per year for a
total of $16,155 over a 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 single family properties are 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 abatements on the December 11, 2007, City Council
agenda for consideration of approval by City Council.
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS