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HomeMy WebLinkAbout(0002) M&C 21-0941City of Fort Worth, Mayor and Texas Council Communication DATE: 12/14/21 M&C FILE NUMBER: M&C 21-0941 LOG NAME: 064TH QUARTER VERIFICATION 2021 (HC) SUBJECT (CD 8) Verify Completion of Rehabilitation Project for the Historic and Cultural Landmark Property Located at 1222 East Terrell Avenue and Declare Said Property to Be Entitled to a Historic Site Tax Exemption RECOMMENDATION: It is recommended that the City Council: 1. Verify completion of the rehabilitation project for the Historic and Cultural Landmark property located at 1222 East Terrell Avenue; and 2. Declare that 1222 East Terrell Avenue be entitled to the Historic Site Tax Exemption set forth herein. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to verify the completion of the rehabilitation project for the Historic and Cultural Landmark (HC) property located at 1222 East Terrell Avenue (Property) and declare said Property to be entitled to the Historic Site Tax Exemption set forth below. The application for this property requesting the historic site tax exemption was submitted after May 1, 2018. Any structure that is designated as HC, or that contributes to a district, and the land necessary for access to and use of the structure that is substantially treated is eligible to receive the following tax exemption under Appendix A, Chapter 4.401 of the City Code, with the intent that the property receiving the tax exemption will be in the same position in regards to City of Fort Worth taxes for the entire term of the exemption. Substantial treatment means treatment at a cost that equals or exceeds the greater of (i) $3,000.00 or (ii) 20% of the appraised value of the structure as of the year prior to the year in which a historic site tax exemption application is deemed complete by the historic preservation officer. During the term of the historic site tax exemption, the structure and land will receive an exemption in an amount equal to the difference between the following: (1) The City of Fort Worth current -year taxable value after application of any other applicable exemptions, including the homestead exemption; and (2) the City of Fort Worth base -year taxable value after application of any other applicable exemptions, including the homestead exemption. The term of this tax exemption is ten years, commencing January 1 of the tax year immediately following verification and approval of the tax exemption by the City Council. The Historic and Cultural Landmarks Commission (HCLC) reviewed and approved the verification applications for the Property on the dates set forth in the table below. Staff presents that it has made an investigation of the Property and has verified that the project has been completed in accordance with the Historic Preservation Ordinance. Taxing Land Improvement Homestead Base -Year Required Total Completed HCLC Location Year* Value (Structure) Value Exemption Taxable Value Expenditure Expended Application Verification 1222 E. Terrell Ave. 2020 $5,000.00 =$30,000.00,=N$35,000.00 F7,000.00 =$11,800.00=05/21/2110/11/21 *This represents the year prior to the year in which the historic site tax exemption application was deemed complete by the historic preservation officer. The estimated loss was calculated using the following equation from the Planning & Data Analytics group: ($11,800.00 (expended value) x .7325/100) x 10 yrs.) This property is located in COUNCIL DISTRICTS 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 Historic Site Tax Exemption -Verification applications, a loss of an estimated $864.35 in property tax revenue over the next ten year period. This reduction in revenue will be incorporated into the long term financial forecast upon the Historic SiteTax Exemption being officially granted. Submitted for City Manager's Office by- Dana Burghdoff 8018 Originating Business Unit Head: D.J. Harrell 8032 Additional Information Contact: Justin Newhart 8037