HomeMy WebLinkAbout(0007) M&C 19-0249City of Fort Worth,
Mayor and
DATE: 10/15/19
Texas
Council Communication
LOG NAME: 19NEZ5929GOODMAN
SUBJECT
M&C FILE NUMBER: M&C 19-0249
Authorize Execution of a Five -Year Tax Abatement Agreement with Clarence L. Johnson for the Construction of a Single -Family Dwelling of
Approximately 1,560-Square Feet and Having a Cost of at Least $110,200 on Property Located at 5929 Goodman Avenue in the Como
Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Three (COUNCIL DISTRICT 3) (Continued from a Previous
Meeting)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five -Year Tax Abatement Agreement with Clarence L. Johnson for the
construction of a single-family dwelling of approximately 1,560-square feet and having a cost of at least $110,200 on property located at 5929
Goodman Avenue in the Como Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Three, in accordance with the
Neighborhood Empowerment Zone Basic Incentives and Tax Abatement Policy.
DISCUSSION:
Clarence L. Johnson (Property Owner) is the owner of the property described as Lots 15 and 16, Block 367, Chamberlin Arlington
Heights, Second Filing, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 63, Page 40, Deed
Records, Tarrant County, Texas, at 5929 Goodman Avenue, Fort Worth, Texas. The property is located within the Como neighborhood and
in Neighborhood Empowerment Zone (NEZ) Area Three.
The Property Owner plans to invest an estimated amount of $110,200.00 to construct an approximately 1,560 square foot single-family residence
(Project). The Project will be sold to a homeowner to be used as a primary residence.
The Neighborhood Services Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to
receive a NEZ Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and 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 2020 at the estimated pre -improvement value as defined by the Tarrant Appraisal District (TAD) in January
2019 for the property as follows:
Pre -Improvement TAD Value of Improvements
$ 0.00
Pre -Improvement Estimated Value of Land
$25,000.00
Total Pre -Improvement Estimated Value
$25,000.00
The municipal property tax on the improved value of the Project after construction is estimated in the amount of $824.00 per year for a total amount
of $4,119.00 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 3.
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 $4,119.00 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 W. Fernando Costa 6122
Originating Business Unit Head: Sonia Singleton 5774
Additional Information Contact: Sarah Odle 7316