HomeMy WebLinkAboutIR 7843 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7843
0HpHT6q,�D June 14, 1994
p mlf,k To the Mayor and Members of the City Council
Subject: Proposed Criteria for City Tax Exemptions on Historic
187 Buildings
The City Council's Expanding Economic Opportunities Committee received a formal
briefing on the planned renovation of the Blackstone Hotel and Electric Building at it's
June 7, 1994 meeting. The developer of this project has requested that the City Council
adopt a policy which would permit the exemption of ad valorem taxes on the structures
due to their historic character. Such an exemption is permitted under state law with
certain conditions.
Those committee members present directed the staff to identify the conditions which
should be included in the policy and to present them for discussion at the June 14, 1994
Pre-Council meeting.
The following represents suggested conditions which might be included in a policy. These
are not all inclusive and the City Council may desire to review and discuss other
conditions before the policy is finalized.
1. Property must be in Improvement District 1 or 3 and be in the Historic and
Cultural Overlay District and be appropriately zoned for the proposed use;
2. Property must be in need of renovation or restoration. The owner will be obligated
to make the necessary renovation at a cost of at least 50% of the appraised value
from TAD;
3. Property must be able to meet the conditions of the Texas Property Tax Code
Section 11.4 relating to the need for tax relief to preserve the property;
4. At least two-thirds of the total leasable square footage space of the property must
be for residential use (excluding parking garage);
5. The street level floor may be used for purposes other than residential subject to
the conditions set forth in the Standard Industrial Classification Manual
(consistent with the current Downtown Housing Tax Abatement Policy);
6. Priority may be given to properties which through deed restriction reserves not less
than twenty-five (25%) percent nor more than seventy-five (75%) percent of the
residential units for "Low Income Tenants" defined as: -
(a) for a four person household, the greater of 80% of the median income most
recently published by the United States Government of a four person
household the Project's Primary Metropolitan Statistical Area ("PMSA"), or
80% of the 19 PMSA median income for a four person household
M
($45,000.00)adjusted to reflect annual changes in the Consumer Price Index;
(b) for households having less than four persons, an amount equal to the four
person household Qualifying Income minus ten percent of that amount for
each number of persons by which the household size is less than four; and
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7843
GNpHTBgE� June 14, 1994
N To the Mayor and Members of the City Council Page 2 oft
XAS Subject: Proposed Criteria for City Tax Exemptions on Historic
1B73 Buildings
(c) for a household of greater than four, an amount equal- to the Qualifying
Income for a four person household plus eight percent.of the amount for each
number of persons by which the household size is greater than four.
7. Property should not receive any previous exemption (historic) or abatement from
the City;
8. Property owner must provide economic justification for the exemption relating to
the renovation of the property;
9. Owner must submit a plan to comply with the City's DBE policy for applicable
project cost. Owner must also submit pertinent information regarding the use of
Fort Worth based firms, suppliers, etc. and any prospective employment
information if applicable as part of the request. The City Council may also require
other specific commitments as may be negotiated.
10. The owner must formally enter into a tax exemption agreement which will
specifically outline the requirements, conditions and audit provisions required for
this exemption. (Patterned after applicable sections of the -Tax Abatement
Agreements);
1,1. The City Council would reserve the right to grant an exemption on eligible projects.
Tax exemptions are in no way automatic and each applicant or project is reviewed
on a case by case basis;
12. The granting of a tax exemption by the City Council does not exempt the property
from other levies including the Improvement District Assessment.
These conditions are submitted for review and discussion. Should the desire by the City
Council be to finalize this policy into a formal action, the Council should approve in
concept these conditions as they may be altered and direct the staff to prepare an
appropriate ordinance. The target date for presenting the ordinance would be June 21,
1994. Should you have any questions, please contact either Wade Adkins, City Attorney
or Mik roo , Assistant City Manager.
Bob Terrell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS