HomeMy WebLinkAbout(0103) M&C 21-0779City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/12/21 M&C FILE NUMBER: M&C 21-0779
LOG NAME: 19JEFFERSONOAKHURST
SUBJECT
(CD 9) Authorize Amendment to Neighborhood Empowerment Zone Tax Abatement Agreement (City Secretary Contract No. 51261) with
Jefferson Oakhurst Scenic, LLC, to Amend the Terms of the Abatement to Allow the Abatement Beginning Date to Coincide with the First Year of
the Compliance Auditing Term
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an Amendment to Tax Abatement Agreement (City Secretary
Contract No. 51261) with Jefferson Oakhurst Scenic, LLC, to amend the Terms of the Abatement to allow the Abatement Beginning Date to
coincide with the Compliance Auditing Term.
DISCUSSION:
On June 26, 2018, the Fort Worth City Council authorized approval of a five-year tax abatement with Legacy Scenic, LP through the Neighborhood
Empowerment Zone Program, by Mayor and Council Communication (M&C C-28763). The City of Fort Worth entered into the Tax Abatement
Agreement (Agreement) (City Secretary Contract Nos. 51261 & 51261-CA1) with subsequent assignment to Jefferson Oakhurst Scenic,
LLC (Owner). The Terms of the Agreement include a Compliance Auditing Term which starts January 1 of the year following the year in which a final
certificate of occupancy is issued for the Required Improvements. The Abatement Beginning Date starts January 1 of the year following the year
that the Compliance Auditing Term begins.
The Compliance Auditing Term generally gives the Owner time to lease set aside units which would be required in the Agreement. However, the
Owner opted to pay an annual sum equal to $200.00 for each rental residential unit located on the Premises to the Fort Worth Housing Finance
Corporation (FWHFC) and has requested the Compliance Auditing Term and Abatement Beginning Date to coincide. This would change the start
of the abatement and the annual payment to the FWHFC to 2022. All other terms of the contract will remain the same.
This project is located in Council District 9.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the Tax Abatement Amendment, a loss of an estimated $1,742,276.15 in property taxes will
be abated 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