HomeMy WebLinkAbout(0109) M&C 19-0250City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/15/19 M&C FILE NUMBER: M&C 19-0250
LOG NAME: 19NEZ3033HEMPHILL
SUBJECT
Authorize Execution of a Five -Year Tax Abatement Agreement with Berry Theatre, LLC for the Rehabilitation of the Berry Street Theatre for use
as an Event Center of Approximately 9,870-Square Feet and Having a Cost of at Least $1,877,000 on Property Located at 3033 Hemphill Street
in the South Hemphill Heights Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Six (COUNCIL DISTRICT 9)
(Continued from a Previous Meeting)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five -Year Tax Abatement Agreement with Berry Theatre, LLC for the
rehabilitation of the Berry Street Theatre for use as an event center of approximately 9,870-square feet on property located at 3033 Hemphill
Street in the South Hemphill Heights Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Six, in accordance with
the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Berry Theatre, LLC, (Property Owner) is the owner of the property described as Block 32, Lots 9 and 10, South Hemphill Heights, an addition to
the City of Fort Worth, Tarrant County, Texas according to the plat recorded in Volume 106, Page 132, Plat Records, Tarrant County, Texas at 3033
Hemphill Street, Fort Worth, Texas. The property is located within the South Hemphill Heights neighborhood and Neighborhood Empowerment
Zone Area Six (NEZ).
The Property Owner plans to invest an estimated amount of $1,877,000.00 for the rehabilitation of the old Berry Theatre which is
approximately 9,870 square feet for use as an event center (Project). 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 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 2019, as
follows:
TAD Value of Improvements
ment Estimated Value of Land
otal Pre -Improvement Estimated Value
550.00
,500.00
148,050.00
The municipal property tax on the improved value of Project after completion is estimated in the amount of $14,031.00 per year for a total amount
of $70,153.00 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.
The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the consent of the City Council. If the property is sold
to a new owner, other than an affiliate, the Agreement may be assigned only with City Council approval and provided that the new owner meets all
of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations approximately $70,153.00 in property taxes will be abated
over the five-year period from 2021-2025. This revenue loss will be incorporated into 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