HomeMy WebLinkAbout(0110) M&C 20-0012City of Fort Worth, Texas
Mayor and Council Communication
DATE: 01/14/20 M&C FILE NUMBER: M&C 20-0012
LOG NAME: 19NEZ3712AVEI
SUBJECT
Authorize Execution of a Five -Year Tax Abatement Agreement with Rodolfo Preciado-Gonzalez for the Construction of a Single -Family Dwelling of
Approximately 2,069 Square Feet and Having a Cost of at Least $130,000.00 on Property Located at 3712 Avenue I, Near the Stop Six -Poly
Oversight Neighborhood and Within Neighborhood Empowerment Zone and Reinvestment Zone Area 6 (COUNCIL DISTRICT 8) (Continued from
a Previous Week)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five -Year Tax Abatement Agreement with Rodolfo Preciado-Gonzalez for
the construction of a single-family dwelling of approximately 2,069 square feet and having a cost of at least $130,000.00 on property located
at 3712 Avenue I, near the Stop Six -Poly Oversight Neighborhood and within Neighborhood Empowerment Zone and Reinvestment Zone Area 6,
in accordance with the Neighborhood Empowerment Zone Program Basic Incentives and Tax Abatement Policy.
DISCUSSION:
Rodolfo Preciado-Gonzalez (Property Owner) is the owner of the property described as Lot 7, Block 75, Polytechnic Heights Addition, an addition
to the City of Fort Worth, as shown by deed of record recorded in Volume 5619, Page 588, Deed Records, Tarrant County, Texas, at 3712 Avenue
I, Fort Worth, Texas. The property is located within Neighborhood Empowerment Zone Area 6 (NEZ).
The Property Owner plans to invest an estimated amount of $130,000.00 to construct a single-family residence of approximately 2,069 square
feet (Project). The Project will be used as the homeowner's 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 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 November
2019 for the property as follows:
Pre -Improvement TAD Value of Improvements $0.00
Pre -Improvement Estimated Value of Land $5,000.00
Total Pre -Improvement Estimated Value $5,000.00
The municipal property tax on the improved value of the Project after construction is estimated in the amount of $971.75 per year for a total amount
of $4,858.75 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.
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 final approval of the Tax Abatement Agreement, a loss of an estimated $4,858.75 in property revenue
may occur over the five year Tax Abatement period. This reduction in revenue will be incorporated into the long term financial forecast upon the Tax
Abatement being officially granted.
Submitted for City Manager's Office W. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316