HomeMy WebLinkAbout(0132) M&C 20-0357City of Fort Worth,
Mayor and
DATE: 06/02/20
Texas
Council Communication
LOG NAME: 19NEZ4229SHENDERSON
SUBJECT
M&C FILE NUMBER: M&C 20-0357
Authorize Execution of a Five -Year Tax Abatement Agreement with Mayra Estrada for the Construction of a Single -Family Dwelling of
Approximately 1,045 Square Feet and Having a Cost of at Least $96,000.00 on Property Located at 4229 S. Henderson Street in
the Rosemont 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 Mayra Estrada for the construction
of a single-family dwelling of approximately 1,045 square feet and having a cost of at least $96,000.00 on property located at 4229 S. Henderson
Street in the Rosemont Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Six, in accordance with the
Neighborhood Empowerment Zone Basic Incentives and Tax Abatement Policy.
DISCUSSION:
Mayra Estrada (Property Owner) is the owner of the property described as Lot 17, Block 7, Walker's Addition, an Addition to the City of Fort Worth,
Tarrant County, Texas, according to the Plat recorded in Volume 204, Page 50, Deed Records, Tarrant County, Texas, at 4229 S. Henderson
Street, Fort Worth, Texas. The property is located in the Las Familias de Rosemont neighborhood and within Neighborhood Empowerment Zone
(NEZ) Area Six.
The Property Owner plans to invest an estimated amount of $96,000.00 to construct an approximately 1,045 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 include 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 Tax Abatement 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 December 2019 for the property as follows:
Pre -Improvement TAD Value of Improvements
$ 0.00
Pre -Improvement Estimated Value of Land
$20,000.00
Total Pre -Improvement Estimated Value
$20,000.00
The municipal property tax on the improved value of the Project after construction is estimated in the amount of $717.60 per year for a total amount
of $3,588.00 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 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:
The Director of Finance certifies that upon final approval of the Tax Abatement Agreement, a loss of an estimated $3,588.00 in property tax
revenue may occur over the five year 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 b� Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316