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HomeMy WebLinkAbout(0004) M&C 19-0363City of Fort Worth, Mayor and Texas Council Communication DATE: 12/10/19 M&C FILE NUMBER: M&C 19-0363 LOG NAME: 061300 MAY ST. HSTE - CORRECTION SUBJECT Amend Mayor and Council Communication G-18931 to Accurately Reflect the 2015 Land and Improvement/Structure Property Values for 1300 May Street for the Purpose of Correctly Calculating its Historic Site Tax Exemption (COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council amend Mayor and Council Communication G-18931 to accurately reflect the 2015 property values for 1300 May Street for the purpose of correctly calculating its historic site tax exemption: 1. Land Value = $174,740.00 2. Improvement/structure Value = $397,260.00 DISCUSSION: On January 24, 2017, the City Council approved Mayor and Council Communication G-18931, verifying the completion of the rehabilitation project for the Highly Significant and Endangered property at 1300 May Street (Property). This M&C is being put forward to correct the 2015 property values for the Property. During the annual review and notification process implemented after the 2018 audit of the Historic Site Tax Exemption program, staff noticed that the land and improvement/structure property values approved by Council did not match the 2015 appraised value of the property according to the Tarrant Apparail District's data. Thus, the correct land value should be $174,740 (not $12,000 as reflected in the original M&C), and the correct improvement/structure value should be $397,260 (not $106,000 as reflected in the original M&C). The Property is entitled to an exemption from city ad valorem taxes of (i) all of the assessed value of the structure and (ii) any increase in teh assessed value of the land necessary for access to and use of the structure, in excess of the value for the tax year immediately prior to commencement of the rehabilitation. The term of this tax exemption is fifteen years, commencing on the first day of the tax year following the City Council's initial verification that the rehabilitation project was complete. The Council verified completion of the project on January 24, 2017. Thus, this tax exemption began on January 1, 2018. Location Taxing Year* Land Value Improvement (Structure) Value Homestead Exemption Required Expenditure Total Expended $397,260 1300 May St. 2015* $174,740 N $119,178 $552,910 Full Exemption *The taxing year refers to the tax year immediately prior to the commencement of rehabilitation. This property is located in COUNCIL DISTRICT 9. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: Upon final approval of the Historic Tax Exemption -Verification applications, the Director of Finance certifies that a loss of an estimated $98,076 in property tax revenue may occur over the remaining 13 years of the tax abatement period. This reduction in revenue has been incorporated the long-term financial forecast because the Historic Tax Exemption has already been officially granted. Submitted for City Manager's Office by. Dana Burghdoff 8018 Originating Business Unit Head: Randle Harwood 6101 Additional Information Contact: Justin Newhart 8037