HomeMy WebLinkAbout(0011) M&C 20-0474City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 08/04/20 M&C FILE NUMBER: M&C 20-0474
LOG NAME: 062ND QUARTER HSTE VERIFICATION - BEFORE MAY 1
SUBJECT
Verify Completion of the Rehabilitation Project for the Historic and Cultural Landmark Property Located at 2315 Mistletoe Avenue and Declare
Said Property to be Entitled to a Historic Site Tax Exemption (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council verify completion of the rehabilitation project for the Historic and Cultural Landmark property located 2315
Mistletoe Avenue and declare that said property be entitled to the Historic Site Tax Exemption set forth herein.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to verify completion of the rehabilitation project for the Historic and Cultural
Landmark (HC) property located at 2315 Mistletoe Avenue (Property) and declare said Property to be entitled to the Historic Site Tax Exemption
set forth below. The historic site tax exemption application for this Property was submitted prior to May 1, 2018.
Any structure that is designated as HC, or that contributes to a district and the land necessary for access to and use of the structure that is
substantially rehabilitated is eligible to receive the following tax exemption, with the intent that the property receiving the tax exemption will be in the
same position in regards to City of Fort Worth taxes for the entire term of the exemption. Substantial rehabilitation consists of rehabilitation at a
cost that equals or exceeds the greater of 30 percent of the assessed value of the structure prior to rehabilitation or $3,000.00. The structure and
land described above will have an assessed value for city tax valuation purposes equal to the assessed value of such structure and land for the tax
year immediately prior to the commencement of rehabilitation. Any increase in the value of the structure and land in excess of the assessed value
for the tax year immediately prior to commencement of their rehabilitation is exempt from city ad valorem taxes. During the term of the historic site
tax exemption, the structure and land will receive an exemption in an amount equal to the difference between the following: (1) The City of Fort
Worth current -year taxable value after application of any other applicable exemptions, including the homestead exemption; and (2) the City of Fort
Worth base -year taxable value after application of any other applicable exemptions, including the homestead exemption.
The term of this tax exemption is ten years, commencing on the first day of the tax year following the City Council's verification that the rehabilitation
project is complete. If, during the ten-year term, the structure or the land is assessed at a lower value than the tax year immediately prior to
commencement of the rehabilitation, the lower value will apply. The Historic and Cultural Landmarks Commission (HCLC) reviewed and approved
the initial application and verified completion of the rehabilitation project for the Property on the date set forth in the table below. The initial
application for the Property was approved by the City Council on the date set forth below.
The property owners have submitted all required documentation that the Property has been substantially rehabilitated and staff represents that the
Property has been substantially rehabilitated in accordance with the applicable provisions of the City Code. The table below shows the required
expenditures necessary to substantially rehabilitate the Property and the total amount actually expended by the property owners. The total amount
expended on the rehabilitation project exceeds the required expenditure. Staff recommends that the City Council verify completion of the
rehabilitation project for the Property because it satisfies all the requirements of the City Code. Upon verification, staff recommends that the City
Council declare the Property to be entitled to the tax exemption, with a 10-year term commencing on the first day of the 2020 tax year.
Improvement
Base-
HCLC
City
Location
Taxing
Land
(Structure)
Homestead
Year
Required
Total
Initial
Council
HCLC
Year*
Value
Value
Exemption
Taxable
Expenditure
Expended
Approval
Initial
Verification
Value
Approval
2315
Mistletoe
ve.
FF00
$248,650EN7
[$46,15
$74,595
$363,718
1/8/18
4/17/18
6/8/20
*The taxing year refers to the tax year immediately prior to the commencement of rehabilitation.
The Properties are 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 Historic Tax Exemption -Verification applications, a loss of an estimated $27,188 in
property tax revenue may occur over the 10 year tax abatement period. This reduction in revenue will be incorporated into the long-term financial
forecast upon the Historic Tax Exemption being officially granted.
Submitted for City Manager's Office by. Dana Burghdoff 8018
Originating Business Unit Head: D.J. Harrell 8032
Additional Information Contact: Justin Newhart 8037