HomeMy WebLinkAbout(0105) M&C 21-0783City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/12/21 M&C FILE NUMBER: M&C 21-0783
LOG NAME: 19PRESIDIOAMEND
SUBJECT
(CD 9) Authorize Amendment to Tax Abatement Agreement (City Secretary Contract No. 50882) with PMA FW Presidio, 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. 50882) with PMA FW Presidio, LLC, to amend the Terms of the Abatement to allow the Abatement Beginning Date to coincide with
the Compliance Auditing Term.
DISCUSSION:
On April 10, 2018, the Fort Worth City Council authorized approval of a five-year tax abatement with Scenic Race, LLC, by Mayor and Council
Communication (M&C C-28659). The City of Fort Worth entered into the Tax Abatement Agreement (Agreement) (City Secretary Contract
Nos. 50882 & 50882-CA1) with subsequent assignment to PMA FW Presidio, 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 $628,014.30 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