HomeMy WebLinkAbout(0159) M&C 22-0216City of Fort Worth,
Mayor and
DATE: 03/29/22
Texas
Council Communication
LOG NAME: 19NEZ1205EBUTLER
SUBJECT
M&C FILE NUMBER: M&C 22-0216
(CD 9) Authorize Execution of a Five -Year Tax Abatement Agreement with Jose Sifuentes and Fabiola Gil Espiritu for the Construction of a Single -
Family Dwelling of Approximately 3,387 Square Feet and Having a Cost of at Least $317,120.00 on Property Located at 1205 E. Butler
Street, near the Brentmoor Neighborhood and within Neighborhood Empowerment Zone and Reinvestment Zone Area Six
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with Jose Sifuentes and Fabiola Gil
Espiritu for the construction of a single-family dwelling of approximately 3,387 square feet and having a cost of at least $317,120.00 on property
located at 1205 E. Butler Street, Near the Brentmoor 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:
Jose Sifuentes and Fabiola Gil Espiritu, (Property Owners) are the owners of the property described as Lot 2, Block 2, Weisengerger Sunny Hill
Garden Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 388-B, Page 192, Plat
Records, Tarrant County, Texas, located at 1205 E. Butler Street, Fort Worth, Texas. The property is located near the Brentmoor neighborhood and
within Neighborhood Empowerment Zone (NEZ) Area Six.
The Property Owners plan to invest an estimated amount of $317,120.00 to construct a single-family residence of approximately 3,387 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 Owners 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. Residential owner occupied tax
abatements are capped at the annual median home value as reported by the National Association of Realtors for Tarrant County. This value is
updated annually and is currently $259,466.00.
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 2023 at the estimated pre -improvement value as defined by the Tarrant
Appraisal District (TAD) in February 2022 for the property as follows:
Pre -Improvement TAD Value of Improvements
Pre -Improvement Estimated Value of Land
$ 0.00
$7,000.00
Total Pre -Improvement Estimated Value
$7,000.00
The municipal property tax on the improved value of the Project after construction using the capped value is estimated in the amount of
$1,900.59 per year, for a total amount of $9,502.95 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 up to the capped value.
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 9.
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 $9,502.95 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 W. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316