HomeMy WebLinkAbout(0002) M&C 21-0202City of Fort Worth,
Mayor and
DATE: 03/23/21
Texas
Council Communication
LOG NAME: 19NEZ4212AVEJ
SUBJECT
M&C FILE NUMBER: M&C 21-0202
(CD 5) Authorize Execution of a Five -Year Tax Abatement Agreement with Maria Teresa Vargas for the Construction of a Single -Family Dwelling of
Approximately 2,039 Square Feet and Having a Cost of at Least $202,370.00 on Property Located at 4212 Ave J, in the Stop
Six/Poly 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 Maria Teresa Vargas for
the construction of a single-family dwelling of approximately 2,039 square feet and having a cost of at least $202,370.00 on property Located
at 4212 Ave J, in the Stop Six/Poly Neighborhood and within Neighborhood Empowerment Zone and Reinvestment Zone Area Six, in accordance
with the Neighborhood Empowerment Zone Program Basic Incentives and Tax Abatement Policy.
DISCUSSION:
Maria Teresa Vargas (Property Owner) is the owner of the property described as Lot 4, Block 8, College Heights Addition, an addition to the City
of Fort Worth, according to the plat recorded in Volume 388, Page 47, Plat Records, Tarrant County, Texas, at 4212 Ave J, Fort Worth, Texas. The
property is located within the Stop Six/Poly neighborhood and within Neighborhood Empowerment Zone (NEZ) Area Six.
The Property Owner plans to invest an estimated amount of $202,370.00 to construct a single-family residence of approximately 2,039 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 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 (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 2022 at the estimated pre -improvement value as defined by the Tarrant
Appraisal District (TAD) in December 2020 for the property as follows:
Pre -Improvement TAD Value of Improvements
Pre -Improvement Estimated Value of Land
$ 0.00
$10,000.00
Total Pre -Improvement Estimated Value
$10,000.00
The municipal property tax on the improved value of the Project after construction is estimated in the amount of $1,512.72 per year, for a total
amount of $7,563.60 over the five-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated
based on the TAD appraised value of the property.
In the event of a sale of this property, the 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 5.
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 $7,563.60 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 by. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316