HomeMy WebLinkAboutIR 8883INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8883
To the Mayor and Members of the City Council October 9, 2007
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SUBJECT: Review of Neighborhood Empowerment Zone Tax
Abatements for Properties located at 5521 Laster Road and
700 S. Sylvania Avenue
The purpose of this Informal Report is to provide City Council with information regarding two
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.
Jose Cruz Moreno is the owner of the property located at 5521 Laster Road. The property is located in
the Lake Arlington Neighborhood Empowerment Zone and Council District 5. Jose Cruz Moreno
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. Jose Cruz Moreno will invest, at a minimum, $60,000 to construct a single family home.
The municipal property tax on the improved value of the home after its construction is estimated at
$516.00, per year, for a total of $2,580.00 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 the property is sold, the agreement may be assigned without subsequent City Council
approval to Jose Cruz Moreno's 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.
Red Line Properties, LLC, is the owner of the property located at 700 S. Sylvania Avenue. The
property is located in the Riverside NEZ and Council District 8. Red Line Properties, LLC, 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.
Red Line Properties, LLC, will invest, at a minimum, $800,000.00 to build a 15,226 square foot
commercial building which will house over 6,000 square feet of office and showroom space and 9,000
feet of shop space for automobile repair.
The municipal property tax on the improved value of the commercial building after its construction is
estimated at $5,504.00, per year, for a total of $27,520.00 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.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
In the event of a sale of this property, the agreement may be assigned, with City Council approval, to
the new owner(s), provided the new owner(s) meets all of the eligibility criteria as stated in the NEZ
Tax Abatement Policy and Basic Incentives.
Attachments (NEZ area map, elevation and floor plan sketches for 5521 Laster Road)
(NEZ area map and elevation sketches for 700 S. Sylvania Avenue)
ISSUED BY THE CITY MMAGER
FORT WORTH, TEXAS
FORT WORTH
AREA NEZ MAP
Applicant: Jose Cruz Moreno
Address: 5521 Laster Road
Council District: 5
NEZ: Lake Arlington
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Applicant: Red Line Properties, LLC
Address: 700 S. Sylvania Avenue
Council District: 8
NEZ: Riverside
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