The URL can be used to link to this page

Home My WebLink AboutIR 9568 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9568 To the Mayor and Members of the City Council July 9, 2013 r Page 1 of 2 SUBJECT: INCENTIVIZED DEVELOPMENTS WITHIN THE WEST SEVENTH URBAN VILLAGE At the City Council's request, staff is presenting this summary of incentivized projects that have been completed or are under construction in the West Seventh Urban Village. Incentives have included enhanced community facility agreements (ECFA), tax abatements (TA), economic development program agreements authorized by Chapter 380 of the Texas Local Government Code (380), and neighborhood empowerment zone (NEZ) fee waivers. The boundary of the West Seventh Urban Village extends from Trinity Park on the east to the Cultural District on the west, as depicted on the attached map. Incentivized projects within this area include the following: • South of Seventh (So7), • Montgomery Plaza, • Super Target, • Museum Place, • West 7t" Development, and • Lancaster Properties, LLC. In 2004, the total taxable value (real and business personal property) of all properties located within the West Seventh Urban Village totaled $111,419,145. The City collected approximately $963,776 in property tax in 2004. The 2012 total taxable value for the West Seventh Urban Village was $488,098,189, an increase of 334 percent from 2004. In 2012, the City received approximately $2,629,911 in property tax for all property in the urban village. In 2012, the City received $592,574 in property tax for the incentivized projects after the incentive payments are deducted. If the current property tax rate is held steady and a two percent increase in property value occurs, the annual amount in property tax to the City for the incentivized projects is estimated at: 2025: $1.7 million (Museum Place and West 7t" Development agreements have expired and City is receiving all taxes from these two developments) 2030: $3.8 million (All incentive agreements have expired and the City is receiving all taxes) The City has collected approximately $5.3 million in sales tax from the incentivized projects to date. Of that amount, $4.9 million has been reimbursed to the developers in accordance with their incentive agreements. The Crime District has collected $2.17 million and The T has also collected $2.17 million from these projects. Staff is unable to arrive at an exact amount of sales taxes that the City has received for the remaining developments in the West Seventh Urban Village because the Comptroller's Office provides sales tax information by zip codes. However, using $1.39 per square foot as an average -- which is the average for the projects on which this information is available -- the City is receiving an additional $346,185 in sales taxes annually from other businesses in the urban village. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9568 To the Mayor and Members of the City Council July 9, 2013 r Page 2 of 2 SUBJECT: INCENTIVIZED DEVELOPMENTS WITHIN THE WEST SEVENTH URBAN VILLAGE The table below illustrates the amount of private investment and City contributions to the West Seventh Urban Village projects. The "Private Investment" category represents the amount each development is required to expend per the incentive agreement and the "Investment to Date" is the amount the developments have actually expended to date, considering the fact that projects such as Museum Place and West 7t" Development are still under construction and have not reached their last phase of development. Net Present Incentives Estimated Value @ Date Private Investment to Paid to Date Remaining 6%for Approved Project Investment Date by City Total City Remaining (2003-2013) Contributions City Contributions 1/28/2003 South of Seventh(So7)(ECFA) $37,500,000 $37,500,000 $334,350 $0 $0 7/6/2004 Montgomery Plaza(TA,380, $44,541,738 $44,541,738 $3,988,012 $18,974,712 $12,285,808 ECFA) 7/6/2004 Super Target(380) $10,381,691 $10,381,691 $2,891,451 $10,108,459 $6,711,283 5/15/2007 Museum Place(380) 170,000,000 $50,381,691 $560,342 $25,439,658 $17,773,510 7/31/2007 West 7`'Development(380) $190,000,000 $178,436,068 $1,675,141 $29,604,859 $20,160,187 9/27/2011 Lancaster Properties,LLC(TA) $23,252,000 Not completed $0 $844,920 $711,822 Various West Seventh/University NEZ Included Included $495,815 $0 $0 Fee Waivers above above TOTAL $475,675,429 $321,241,188 $9,945,111 $84,972,608 $57,642,610 Please contact Cynthia Garcia, Acting Director of Housing and Economic Development, at 817- 392-8187 if you have any questions or concerns. Tom Higgins City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS FORT WORTHO West 7th Urban Village Economic Development Projects CULLE I'll IONS 9 j#, A� %R T! A '2 IP X" H IT, TTIE "E T' uJ 7 r.GI k VV,Fl I I IY!! ILL", "Ole" �I EISEN Z11, '1 4111 Lu r Y711 1'�6 f, V, Ed //,4 ,r////,/ ILI 6TH ��A&/ 0/// /r 1 ca �3 4 All 0 ..',U..... '14 /0 V wo' -E <1 B 9N U 'T T�R OREWCA -'r5 Hz r 71 U'RN ETt.TAN DY,` qp), Properties, LLC , Montgomery Plaza&Target Q` RAREFY 6'e, Museum Place Development 6 Sol West 7th Development V West 7th Urban Village Copyright 2013 City of Fort Worth.Unauthorized reproduction is a violation of applicable laws.This product is for informational purposes and may not have been prepared for or be suitable for legal,engineering,or surveying purposes.It does not represent an on-the-ground survey and represents only the approximate relative location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data. 07/09/2013