HomeMy WebLinkAbout(0143) M&C 20-0619City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/01/20 M&C FILE NUMBER: M&C 20-0619
LOG NAME: 19NEZ6501OAKGROVE
SUBJECT
(CD 8) Authorize Execution of a Five -Year Tax Abatement Agreement with Jackson-Shaw/46 Ranch, LLC, for the Construction of Three Industrial
Warehouse Buildings with a Total of Approximately 562,000 Square Feet for the Distribution of Retail Goods and Light Manufacturing, Having a
Cost of at Least $25,969,859.00 on Property Located at 6501 Oak Grove Road in the 46 Ranch Logistics Industrial Park and Within
Neighborhood Empowerment Zone and Reinvestment Zone Six (Continued from a Previous Meeting)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with Jackson-Shaw/46 Ranch, LLC, for
the construction of three industrial warehouse buildings with a total of approximately 562,000 square feet for the distribution of retail goods and
light manufacturing, having a cost of at least $25,969,859.00 on property located at 6501 Oak Grove Road in the 46 Ranch Logistics Industrial
Park and within Neighborhood Empowerment Zone and Reinvestment Zone Six, in accordance with the Neighborhood Empowerment Zone Tax
Abatement Policy and Basic Incentives.
DISCUSSION:
Jackson-Shaw/46 Ranch, LLC (Property Owner) is the owner of the property described as Abstract 1375, Tract 1 C and a portion of Tract 1 F,
Shelby County School Land Survey, in the City of Fort Worth, Tarrant County, Texas, as recorded in Volume 11676, Page 10, Official Records of
Tarrant County, Texas at 6501 Oak Grove Road, Fort Worth, Texas. The property is located in the 46 Ranch Logistics Industrial Park and within
Neighborhood Empowerment Zone (NEZ) Area Six.
The Property Owner plans to invest an estimated amount of $25,969,859.00 to construct three industrial buildings for the distribution of retail
goods and light manufacturing with a total of approximately 562,000 square feet (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 July
2020 the property as follows:
Improvement TAD Value of Improvements
Estimated Value of Land
otal Pre -Improvement Estimated Value
mm
0,850.00
The municipal property tax on the improved value of Project after construction is estimated in the amount of $194,124.70 per year for a total
amount of $970,623.50 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 formal 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 8.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon final approval of the Tax Abatement Agreement, a loss of an estimated $970,623.50 in property tax
revenue may occur over the next 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 by. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316