HomeMy WebLinkAbout(0056) M&C 19-0248City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/15/19 M&C FILE NUMBER: M&C 19-0248
LOG NAME: 19NEZ957EHUMBOLT
SUBJECT
Authorize Execution of a Five -Year Tax Abatement Agreement with Nikki Calton for the Construction of a Single -Family Dwelling of Approximately
2,221-Square Feet and Having a Cost of at Least $183,000 on Property Located at 957 E. Humbolt Street in the Historic Southside
Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Six (COUNCIL DISTRICT 8) (Continued from a Previous
Meeting)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five -Year Tax Abatement Agreement with Nikki Calton for the construction of a
single-family dwelling of approximately 2,221-square feet and having a cost of at least $183,000 on property located at 957 E. Humbolt Street in
the Historic Southside Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Six, in accordance with the
Neighborhood Empowerment Zone Basic Incentives and Tax Abatement Policy.
DISCUSSION:
Nikki Calton (Property Owner) is the owner of the property described as Lot 20, Block 2, McAnulty and Nesbitt's Subdivision of Block 2, Evans
South Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 63, Page 7, Plat Records,
Tarrant County, Texas, at 957 E. Humbolt Street, Fort Worth, Texas. The property is located in the Historic Southside neighborhood and within
Neighborhood Empowerment Zone (NEZ) Area Six. On July 19, 2019, the Preservation Staff approved a Certificate of Appropriateness through
the Historic and Cultural Landmarks Commission for the construction of a one and one-half single family residence and accessory structure at 957
E. Humbolt Street.
The Property Owner plans to invest an estimated amount of $183,000.00 to construct an approximately 2,221 square foot single-family residence
(Project). The Project will be used as the homeowner's primary residence.
The Neighborhood Services Department reviewed the application and certified that the Property Owners and Project met the eligibility criteria to
receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives includes a Five -Year Municipal Property Tax Abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for calculating municipal property tax will be frozen for a
period of five years starting January 2021 at the estimated pre -improvement value as defined by the Tarrant Appraisal District (TAD) in August
2019 for the property as follows:
TAD Value of Improvements 1$ 0.00
Improvement Estimated Value of Land 11$5,000.00
otal Pre -Improvement Estimated Value 11$5,000.00
The municipal property tax on the improved value of the Project after construction is estimated in the amount of $1,368.00 per year for a total
amount of $6,840.00 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 appraised value of the property.
In the event of a sale of this property, the Tax Abatement Agreement may be assigned to a new owner's first mortgage or a new owner as a primary
residence. All other assignments must be approved by the City Council.
This property is located in COUNCIL DISTRICT 8.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations an estimated $6,840.00 in property taxes will be abated over
the five year period from 2021-2025. This amount will be included in the City's five year financial forecast.
Submitted for City Manager's Office by. Fernando Costa 6122
Originating Business Unit Head: Sonia Singleton 5774
Additional Information Contact: Sarah Odle 7316