HomeMy WebLinkAbout(0130) M&C 20-0586City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/25/20 M&C FILE NUMBER: M&C 20-0586
LOG NAME: 19NEZ3319MONTAGUE
SUBJECT
(CD 8) Authorize Execution of a Five -Year Tax Abatement Agreement with Conrado Hernandez Gonzalez and Maria Ines Abrego-Zuniga Gonzalez
for the Rehabilitation of a Single -Family Dwelling of Approximately 1644 Square Feet and Having a Rehabilitation Cost of at Least
$162,100.00 on Property Located at 3319 Montague Street Near the Mitchell Boulevard Neighborhood and Within Neighborhood Empowerment
Zone and Reinvestment Zone Area 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 Conrado Hernandez Gonzalez and
Maria Ines Abrego-Zuniga Gonzalez for the rehabilitation of a single-family dwelling of approximately 1644 square feet and having a rehabilitation
cost of at least $162,100.00 on property located at 3319 Montague Street near the Mitchell Boulevard neighborhood and within Neighborhood
Empowerment Zone and Reinvestment Zone Area Six, in accordance with the Neighborhood Empowerment Zone Basic Incentives and Tax
Abatement Policy.
DISCUSSION:
Conrado Hernandez Gonzalez and Maria Ines Abrego-Zuniga Gonzalez (Property Owners) are the owners of the property described as Lot 10,
Block 8, Masonic Home #2 Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to Deed Records, Document No.
D201201022, Tarrant County, Texas, at 3319 Montague Street, Fort Worth, Texas. The property is located near the Mitchell
Boulevard neighborhood and within Neighborhood Empowerment Zone (NEZ) Area Six.
The Property Owners plan to invest an estimated amount of $162,100.00 to rehabilitate an approximately 1644 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 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 for the property as follows:
TAD Value of Improvements11$49,074.001
Improvement Estimated Value of Land 11$5,000.00
otal Pre -Improvement Estimated Value 11$54,074.001
The municipal property tax on the improved value of the Project after construction is estimated in the amount of $1,211.70 per year for a total
amount of $6,058.50 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.
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 8.
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 $6,058.50 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