HomeMy WebLinkAboutIR 9161 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9161
To the Mayor and Members of the City Council December 8, 2009
Page 1 of 2
SUBJECT: Review of Evans & Rosedale Neighborhood Empowerment Zone
Tax Abatement For Properties Owned by KT Land, LTD
The purpose of this Informal Report is to provide City Council with information regarding a proposed
Neighborhood Empowerment Zone (NEZ) residential tax abatement.
Chapter 378 of the Texas Local Government Code provides that a municipality can offer an abatement of
municipal property taxes for properties located in a NEZ.
KT Land, LTD
As part of the Terrell Heights revitalization in South East Fort Worth, Neighborhood Homes and KT Land,
LTD applied for a 5 year municipal property tax abatement under the NEZ Tax Abatement Policy and
Basic Incentives. The Housing and Economic Development Department reviewed the applications and
certified that the properties met the eligibility criteria to receive a NEZ municipal property tax abatement.
KT Land, LTD is the titled owner of the 16 properties listed in Exhibit"A". The NEZ Basic Incentives
includes 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.
On October 2, 2007, the City Council approved M&C C-22429 granting the execution of a NEZ tax
abatement on 16 properties for Neighborhood Homes; however, after the M&C was approved, staff
discovered that the properties were owned by KT Land, LTD and therefore Council must consider the
properties for tax abatement under the correct ownership.
KT Land, LTD and Neighborhood Homes plan to invest $1,438,400.00 to build the 16 homes in the Evans
and Rosedale NEZ to be sold to homeowners as their primary residence.
The municipal property tax on the improved value of each home after construction is estimated at $768.64,
per year on each house for a total of$61,491.00 over the five-year period for all 16 properties. However,
this estimate may differ from the actual tax abatement value, which will be calculated based on the Tarrant
Appraisal District appraised value of the property.
In the event of a sale tai arid'property, the agreement may be assioiied without subsequent City Council
approval to the owners' first mortgagee or to a homebuyer who will use the required improvements as their
primary residence. All other assignments must be approved by the City Council.
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9161
To the Mayor and Members of the City Council December 8, 2009
r
Egge 2 of 2
3
SUBJECT: Review of Evans & Rosedale Neighborhood Empowerment Zone
Tax Abatement For Properties Owned by KT Land, LTD
Staff recommends proceeding with placing the tax abatement on the properties on the December 15, 2009,
City Council agenda for consideration by City Council.
If you have any questions regarding this information please contact Cynthia Garcia, Assistant Director,
Housing and Economic Development Department as 817-392-8187.
ale A. FissE.
City Manager, I
Attachments: Property List Descriptions
FORT WORTH, 1EXAS
Exhibit"A„
f
Property Description
1. 1217 E Annie Street, Block 32 Lot 16, Union Depot Addition, in the City of Fort Worth,
Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records, Tarrant
County,Texas.
2. 1008 E. Bessie Street, Block 13 Lot 3 E 3'2", Union Depot Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records,
Tarrant County,Texas.
3. 905 E. Broadway Avenue, Block 1 Lot 2 Less W4', JC Terrell Addition, in the City of
Fort Worth, Tarrant County,Texas, and as recorded in volume 63, page 156, Plat records,
Tarrant County,Texas.
4. 958 E. Broadway Avenue, Block 4 Lot 3, JC Terrell Addition, in the City of Fort Worth,
Tarrant County, Texas, and as recorded in volume 63, page 156, Plat records, Tarrant
County, Texas.
5. 1004 E. Broadway Avenue, Block 15 Lot 2, Union Depot Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records,
Tarrant County,Texas.
6. 1024 E. Broadway Avenue, Block 15 Lot 7, Union Depot Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records,
Tarrant County, Texas.
7. 1025 E. Broadway Avenue, Block 16 Lot 14, Union Depot Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records,
Tarrant County,Texas.
8. 1036 E. Broadway Avenue, Block 15 Lot 10, Union Depot Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records,
Tarrant County,Texas.
9. 1104 E. Broadway Avenue. Block 20 Lot 2, Union Depot Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records,
Tarrant County,Texas.
30, i t05 East Broadway Avenue, Block 19 Lot 19, Union Depot Addition, is the City of fort
Worth, 'Tarrant County, Texas, and as recorded in volume 63, page 43,. Plat records,
Tarrant County,Texas.
11, £121 F. Leuda Street, Block 36 Lot 15, Union Depot Addition, in the City off art Worth.
Ta rpt County, Texas, and as recorded in volume 63, page 45, Plat records, Tarrant
County, Texas.
12. 1236 E, Leach Street, Block 1-8 Lot 10, Union Depot Addition, in the C ity of Fort Worth,
0
arras! tarty, 'rexas,
and as reconied in volurne 63,
,.. Plat 'neco'rds,
r
AM
13. 1105 Stella Street, Block 20 Lot 19, Union Depot Addition, in the City of Fort Worth,
Tarrant County, Texas, and as recorded in volume 63, page 45. Plat records, Tarrant
County, Texas.
14. 1133 Stella Street, Block 20 Lot 12, Union Depot Addition, in the City of Fort Worth,
Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records, Tarrant
County,Texas.
15. 1136 Stella Street, Block 21 Lot 10, Union Depot Addition, in the City of Fort Worth,
Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records, Tarrant
County,Texas.
16. 916 E Tucker Street, Block 3 Lot 5 E33.2 , Union Depot Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 45, Plat records,
Tarrant County,Texas.
, x
'45