HomeMy WebLinkAboutIR 3598 INFORMAL REPORT TO CI. .k COUNCIL MEMBERS No. 3598
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U�ffORT,�o To the Mayor and Members of the City Council May 1, 1981
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Subject: LAKE WORTH LEASES RATE ADJUSTMENT
The majority of lease agreements executed by Lake Worth leaseholders con-
tain a clause which reads as follows:
"The rental to be paid hereunder by Lessee shall be reviewed
every five (5) years by the City Council of the City of Fort
Worth, and the amount of such rental can be adjusted by the
City Council proportionately to any change in the market value
of such leased land, exclusive of such improvements."
A five year period is now being completed for most leases.
On February 15, 1971, the City Council authorized the Land Division of the
Finance Department to administer Lake Worth leases. On the same date the
Council authorized the setting of the annual lease rate at 8 percent of
80 percent of the current market value lowered to the next even $1,000
amount.
In accordance with this prior action of the Council, the Land Division
has caused a reappraisal of the properties to be completed earlier this
year by the Tax Assessor-Collector.
Leaseholders are now being notified by letter of the new market value
and the change in rental rate to be effective on the anniversary date of
the lease agreement. A copy of the letter is attached for your informa-
tion.
As would be expected, significant increases are being effected because
of the eleven year change in values.
If additional information is desired, it will be furnished upon request.
Respectfully submitted,
C—�, 1. • ��
Robert L. Herchert
City Manager
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Attachment
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RECORD
3TARY
H, TEX.
ISSUED BY THE CITY MANAGER - FORT WORTH, TEXAS
CITY OF FUR T WORTri
IPRIL 30, 1981
DEAF; LFASEHOLDEK:
THE LEASE AGREEMENT EXECUTED BY VOU WITH THE CITY OF
FORT WORTH ON
(LEGAL DESCRIPTION)
SPECIFIES T4AT THE ANNUAL RENTAL RATE SHALL BE CALCULATED
TO REPRESENT A RETURN TO THE CITY AT THE RATE OF 8% BASED
ON THE MARKET VALUE OF THE LEASED LAND AND THAT THE RATE
SHALL BE REVIEWED EVERY FIVE YEARS FJK ADJOSTMENT IN
PROPORTION TO ANY CHANGE IN THE MARKET VALUE.
AT THE END OF THE FIRST FIVE-YE4R PERIOD FROM THE
DATE OF YOUR CJRRFNT LEASE NO ADJUSTMENT IN THE RATE WAS
MADE. 4 SECOND FIVE-YEAR PERIOD IS NOW E141ING.
ACCORDINGLY THE CITY HAS COMPLETED A REVIEW AND
ESTABLISHED A NEW CURRENT MARKET VALDE OF THE SUBJECT
LEASED LAND. IN ACCORDANCE WITH PRIJR CITY POLICY, THE
ANNUAL RENTAL RATE ON THE ABOVE REFERENCE() LAND WILL
BE $ EFFECTIVE AND DUE ON J'JNE 1 , 1981 BASED ON
AN APPRAISED VALUE OF i
PLFASF KEEP IN MIND THAT THIS ARPRAISAL REPRESENTS
A MARKET VALUE GROWTH OCCURRING OVER AN FLEVEN YEAR PERIOD.
SINCERF_LY ,
GEORGE WILKES
LAND AGENT
OFFICIAL RECORD
CI I ti' S vR4TARY
FT. WORTHY TEX.