The URL can be used to link to this page

Home My WebLink AboutOrdinance 11290~. ~ G' ORDINANCE NO /~ AN ORDINANCE CLOSING BENEFIT HEARING AND LEVYING ASSESSMENTS FOR PART OF THE COST OF IMPROVING A PORTION OF WEDGWOOD DRIVE FROM WEDGMONT CIRCLE NORTH TO WEDGMONT CIRCLE SOUTH, AND PORTIONS OF SUNDRY OTHER STREETS, AVENUES AND PUBLIC PLACES IN THE CITY OF FORT WORTH, TEXAS; FIXING CHARGES AND LIENS AGAINST ABUTTING PROPERTY THEREON, AND AGAINST THE OWNERS THEREOF; PROVIDING FOR THE COLLECTION OF ASSESSMENTS AND THE ISSUANCE OF ASSIGNABLE CERTIFICATES, RESERVING TO THE CITY COUNCIL THE RIGHT TO ALLOW CREDITS REDUCING THE AMOUNTS OF THE ASSESSMENT TO THE EXTENT OF ANY CREDIT GRANTED, DIRECTING THE CITY SECRETARY TO FILE THIS ORDINANCE IN THE ORDINANCE RECORDS OF THE CITY; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Fort Worth, Texas, has declared the necessity for and ordered that each of the following portions of streets, avenues and public places be improved by raising, grading, filling and constructing thereon' WEDGWOOD DRIVE from Wedgmont Circle North to Wedgmont Circle South, known and designated as Project No 11-040296, to be improved by constructing a six-inch thick reinforced concrete pavement over two-inch hot mix asphaltic concrete base with a seven-inch high attached concrete curb over a six-inch thick lime stabilized subgrade so that the finished roadway will vary from thirty-two to forty-two feet wide on a variable width Right-of-Way Six-inch thick reinforced concrete driveway approaches and four-inch thick concrete sidewalks will be constructed where shown on the plans OFfIG1~. REC~~D Cf1Y S~C~t~~T~4Y fT. WORTS, ~~. a , .~ !7~ n VII. The total amount assessed against the respective parcels of abutting property and the owners thereof is in accord with the proceeding of the city relating to the improvements and assessments thereof and is less than the proportion of the cost allowed and permitted by the law. VIII. Although charges have been fixed, levied, and assessed as stated, the City Council hereby reserves the right to reduce the assessments by allowing appropriate credits to certain property owners. Even though the City Council reserves the right to issue credits, it shall not be required to issue credits, and will not do so if the credits are inequitable or discriminatory. The principal amount of each assessment certificate issued by the city shall be determined by deducting any credit from the amount of the assessment. IX. To evidence the several sums assessed against the respective parcels of abutting property and the owners thereof, and the time and terms of payment, and to aid in their enforcement and collection, the city shall issue, upon completion and acceptance of the project, assignable certificates in the amount of the respective assessment less any credits allowed The certificates shall be executed in the name of the city by the Mayor, attested by the City Secretary, and impressed with corporate seal of the city. The certificate shall be payable to the City of Fort Worth or its assigns, and shall declare the amounts, time and terms of payment, rate of interest, and the date of the completion and acceptance of the improvements abutting the parcel of property for which the certificate is issued Moreover, the certificate shall contain the name of the owner or owners, if known, and the description of the property by lot and block number, front feet, or as may otherwise identify the property. Property owned in the name of an estate may be assessed in that name No error or mistake in describing any property, or in giving the name of any owner shall invalidate or impair the certificate for the assessments levied The certificate shall provide that if it is not paid promptly upon maturity, it shall be collectable, with reasonable attorney's fees and costs of collection In addition, the certificate shall provide that the amount evidenced in it shall be paid to the Assessor and Collector of Taxes of the City of Fort Worth, who shall issue a receipt as evidence of payment. The Assessor and Collector of Taxes shall deposit the sums he receives with the City Treasurer to be kept and held in a separate fund. After any payment on a certificate is made to the city, the Assessor and Collector of Taxes, upon presentation of the certificate, shall endorse the certificate to show the payment If a certificate is assigned, the holder shall be entitled to receive from the City Treasurer the amount paid by presentation of the certificate endorsed and credited, and the endorsement and credit shall be the Treasurer's Warrant for making the payment. The payments by the City Treasurer shall be receipted for the holder of the certificate in writing and by surrender when the principal, together with accrued interest and all costs of collection and reasonable attorney's fees, have been paid. The certificate shall further recite that the proceedings for making the improvement were held in compliance with the law, and that all prerequisites for fixing the assessment lien against the property described in certi -i~a#~e t personal liability of the owners have been completed. The recita ~ ~'~~ ~+~ a facie evidence of all matters recited in the certificates, and no f rther proo 1 be required in any court ~ 41~f ~iuR~TARY ~FT. ~Q~~6 R f : ~~. -4- - - „ ,, The certificates may have coupons attached to evidence any installment or may have coupons for (i) each of the first four installments, leaving the main certificate to serve as the fifth installment coupon, (ii) or each of the first 48 installments leaving the main certificate to serve as the 49th installment coupon. The coupons may be payable to the City of Fort Worth, or its assigns The certificates may be signed with the facsimile signatures of the Mayor and City Secretary The certificates shall also recite that the city shall exercise all powers to aid in the enforcement and collection of the certificate Recitals need not be in any exact form, but in substantial compliance with this ordinance. X. The city has power to make and levy assessments and to correct mistakes, errors, invalidities or irregularities, either in the assessments or in the certificates. XI All assessments levied are a personal liability and charge against the owners of the property described in Exhibit "A", even though the owners may not be named or may be incorrectly named Failure to make improvements in front of an abutting property that is exempt from assessment will not invalidate the lien or liability for assessments made against other abutting property XII The assessments levied are for the improvements in the particular unit upon which the respective parcels of property abut, and the assessments for the improvements in any unit are not affected by the assessments or improvements in any other unit In making assessments and in holding the benefit hearing, the amounts assessed for improvements in any one unit have not been connected with the improvements or assessments for improvements in any orher unit XIII The assessments are levied under the provisions of TEX REV CIV STAT ANN art 1105b (Vernon 1964), which statute has been adopted as an amendment to and made a part of the Charter of the City of Fort Worth XI V The City Secretary is directed to file this Ordinance in the appropriate Records of the City XV The ordinance shall take effect and be in full force after the date of its passage, and it is so ordained ----- oFElcla~ R~co~;~ -5- CITY SECRETARY ET. WORTH, TEX. 'X3.t `~.~~~ OM '1~ ~a~.~~~~S~i 0~0~3~ 1Vt91~~0 APPROVED this day of 19~ APPROVED AS TO FORM AND LEGALITY' l ity Attorney Date•---------------------------- Adopted:--~~---~~------- Effective.--~~---~---- -6- WEDGWOOD DRIVE (WEDGMONT CIRCLE NORTH TO WEDGMOHT CIRCLE SOUTH) PROJECT N0. 11-040296 EXHIBIT A SEPTEMBER 1992 REVISED MARCH 1993 oEl`ICIAE RECORD CITY S~CR~TARY I: i. VfORTN, T~eis WEDGWOOD DRIVE FROM WEDGMONT CIRCLE NORTH TO WEDGMONT CIRCLE SOUTH PROJECT N0. 11-040296 The Assessment Paving Policy provides that property zoned and used as one- or two-family residential property not located within a target area but previously constructed to City standards will not be assessed. Under this policy the owner of the following improved property zoned and used as a one- or two-family residence is not assessed. WEDGWOOD ADDITION Block 1, Lots 18 thru 34 Block 2, Lots 18 thru 24 Block 4, Lots 19 thru 32 NOTE• THE FOLLOWING PROPERTIES WILL NOT BE ASSESSED BECAUSE NO IMPROVEMENTS WILL BE CONSTRUCTED ADJACENT TO THEM WEDGWOOD ADDITION Block 1, Lots A, AlA -1- OFFICIAL RECORD CITY SECRETARY ET. INOR~'I~, TEX. PROJF'CT NO 11-040296, WEDGWOOD DRIVE FROM WEDGMONT CIRCLE SOUTH TO WEDGMONT CIRCCE NORTH, to be improved by constructing a six-inch thick reinforced concrete pavement over two-inch hot 'mix asphaltic concrete base with a seven-inch high attached concrete curb on a six-inch thick lime stabilized subgrade so that the finished roadway will vary from thirty-two to forty-two feet wide on a variable width Right-of-Way Six-inch thick reinforced concrete driveway approaches and four-inch thick concrete sidewalks will be constructed as shown on the plans OWNER & LEGAL DESCRIPTION ZONING ------------------------- ------ BEGIN AT WALRAVEN INTERSECTION EAST SIDE 000004974816 SAINT MATTHEWS LUTHERAN CHURCH 5709 WEDGWOOD DR C FT WORTH TX 76133 BLK 3 LOT B 20~ TAD OF $300,293=$60,058 FRONTAGE RATE PROPERTY #1 373 00'FRONTAGE 240 00'PAVEMENT 240 00'CURB 584 10'SF DR APPR 80 00'SF SDWK(R) 11 72 0 99 2 68 2 14 LESS CREDIT WEDGWOOD ADDITION ADJUSTED CHURCH EXEMPT (1}(2) 000004974808 SAINT MATTHEWS LUTHERAN CHURCH 5709 WEDGWOOD DR C FT WORTH TX 76133 BLK 3 LOT A 20~ TAD OF $680,283=$136,056 ENHANCEMENT PROPERTY #2 425 00'PAVEMENT 425 00'CURB 202 45'SF DR APPR 1050 00'SF SDWK(R) 11 72 0 99 2 68 2.14 LESS CREDIT WEDGWOOD ADDITION ADJUSTED CHURCH EXEMPT (1) WELCH AVENUE INTERSECTS 000003326225 KENNETH ETUX JANE POST 5925 WEDGWOOD DR FT WORTH TX 76133 BLK 4 LOT lA 40$ TAD OF $98,811=$39,524 WEDGWOOD ADDITION ADJUSTED COMMERCIAL BUSINESS ENHANCEMENT AMOUNT ASSESSMENT 2812 80 237 60 1565 39 171 20 4786 99 85 60 4701 39 14920.00 4701 39 4981 00 420 75 542.57 2247 00 8191 32 1123 50 7067 82 17000.00 7067.82 PROPERTY #3 OFfIClA! RECORD ' ~» SE~R~E~ARY E 60.00 PAVEMENT 42 65 2559 00 60 00' CURB 3 57 214 20 ~'~ ~~~ W~~~~ 163 70'SF DR APPR 2 68 438 72 . e , 3211.92 ENHANCEMENT 2400 40 2400 00 -2- I OWNER`~& LEGAL DESCRIPTION ZONING 000003326217 KENNETH ETUX JANE POST 5925 WEDGWOOD DR E FT WORTH TX 76133 BLK 4 LOT 1B 40$ TAD OF 90,149=$36,059 WEDGWOOD ADDITION ADJUSTED COMMERCIAL BUSINESS FRONTAGE RATE AMOUNT -------- ---- ------ ------------------------- PROPERTY #4 150 00'PAVEMENT 150 00'CURB 559 90'SF DR APPR 320 00'SF SDWK(R) 42 65 6397 50 3 57 535 50 2 68 1500 53 2 14 684 80 9118 33 LESS CREDIT 342 40 8775 93 ENHANCEMENT 6000 00 ASSESSMENT 6000 00 Of f ICIAL RECORD CITY SECRETARY fT. WQ~T~~, TES -3- WEDGii00D DRIVE FROM WEDGMONT CIRCLE NORTH TO WEDGMONT CIRCLE SOIITH PROJECT N0. 11-040296 COST DISTRIBDTION A. COST TO PROPERTY OWNERS ..... .. ..... .. ...... ..$ 20,169.21 B. COST TO THE CITY OF FORT WORTH .. ..... .... ... .. $541,930.24 Street Improvements. ........... .... $490,830.29 Engr Insp./Admin ..... ...................$ 51,099.95 (10~ of Estimate $510,999 50) C. fiOTAL ESTIMATED PROJECT COST . .... ..... ..... .....$562,099.45 CITY POLICY The Assessment Paving Policy establishes four methods of determining assessments and allows for the residential rate to be applied to vacant lots as appropriate. Under this policy assessments cannot exceed• (a) The computed rate. (b) The enhancement to the property. 6 (c) For residential property; twenty percent (20~) of the property values as determined by the Tarrant Appraisal District. (d) For commercial property located within a target area; forty percent (40~) of the property values as determined by the Tarrant Appraisal District All replacement of sidewalks is at 50$ cost to the property owner and 50~ cost to the City. NOTES (1) Tax-exempt places of worship are assessed at 50$ of the residential rate: $23 44 @ 50$ _ $11 72 for pavement $ 1 98 @ 50$ _ $ 99 for curb ~y (2) Assessment is adjusted for an irregular-shaped lot. Orr'C{A< ~~e~~D C{TY SECA~TARY -4- fT, WORTS{, TEX. ,. C } N ~~~ w J ~U Z O¢ Z w Q lL u- } ~ Q OQ ~~ U ~ w Q 0 O c~ O ~g o i r 3 '~ U~ ww m o~ ~~ d Z Z a~ ww ~... U QZ U= QZ z w J ~ ~ ~~ J LL a z F- ~ ZD ~ Q ~ ~ 0 a Y O m z 0 0 z~ 0 U a Q a g~°~,°gg8 tAd dt~N(D ~~ $~~8g8 u~ cn d .- i. ao .- ~ d u9 .- 8000OC00 O C~ N i9 d ~ a ac ac ac ~~Qa~~ ~~~~°vv wwUUww N M M N O O N~ PNtp ~A ww==ww zz~~zz ~~»~~ ~mUUmm Q amQQOr r-•-MMd d C~ ~ O D f~ p 000000 000000 333333 c~oc~c~c~c~ 000000 wwwwww 333333 YN~ QWW m=z J~~~ ~~QQOo 3 Q cn cn o. n. ~NC~d~A(D OFFtCIA[ R 0 CITY SECRf 1'ARY ~r. waRrtw, r~ Robert Martin Appraiser Postal Box 1831 642-9272 Grand Prairie, Texas 75051 533-0862 (Mobile} October 13, 1992 Ivlr Theodore P Gorski, Jr Office of ,the City Attorney City of Fort Worth Fort Worth, Texas RE. PROJECT NO 11-040296, WEDGWOOD DRIVE FROM WBDGMONT CIRCLE SOUTH TO WEDGMONT CIRCLE NORTH, to be improved by constructing a six-inch thick reinforced concrete pavement over two-inch hot mix asphaltic concrete base with aseven-inch high attached concrete curb on a six-inch thick lime stabilized subgrade so that the finished roadway will vary from thirty-two to forty-two feet wide on a variable width Right-Of--Way. Six-inch thick reinforced concrete driveway approaches and four-inch thick concrete sidewalks will be constructed as shown on the plans. Dear Mr Gorski. In accordance with your request and authorization, we have completed a study of the above captioned property/project for the purpose of estimating the market enhancement and special benefit (if any) to the unencumbered fee simple title of the subject property The appraiser was instructed to deterrrune if any special benefit could be found that would reflect in a valuation enhancement to the subject property If any special benefit were found, it was understood that the City of Fort Worth would levy a special assessment against the property If there is evidence of adequate probative force to constitute the belief that the parcel value would increase because of the imposition of the municipal improvement, then the decision to assess the owner of record for the improvements would be justified. In contrast, if there is not enough evidence to constitute adequate proof that the parcel value would increase because of the municipal improvement, then the decision to assess the owner of record for the improvements would not be justified. The following summary report sets forth our findings and conclusions. This information was derived from gathered factual data, supporting documents considered essential toe~xplain the reasoning followed m making the study, and the conclusions herein re~i~~~;~ REC0~0 CITY SCR€TARY FT. WO~~'~I, T~. Member National Acso~iation of Master Aonrasers SUMMARY OF FINDINGS AND CONCLUSIONS THE ISSUE OF SPECIAL BENEFIT When conducting an enhancement study, the primary issue that must be addressed is of a legal nature--specifically, Special Benefits to the Subject Property This type of appraisal assignment differs from the assignments normally undertaken by real estate appraisers. (See Martin & Ordway, Enhancement Studies: Valuation or Evaluation, The Appraisal Journal, October, 1985) Article 1105E of Vernon's Ann. Tex. Civil St. authorizes cities to improve their streets and to apportion the cost thereof between the City and owners of property abutting the streets to be improved, subject to certain limitations and to levy assessments against the abutting property and its true owners and to create liens against such property for the cost thereof apportioned to such property The statute goes on to say "no assessment shall be made against any abutting property or owners thereof in excess of the special benefits of such property, and its owners in the enhanced value thereof by means of such improvements as determined ..." THE THREE UESTIONS OF SPECIAL BENEFIT WHAT IS A SPECIAL BENEFIT? Since 1933, Texas courts have defined special benefit in the following manner "Such benefits as have accrued specially to this property, by reason of the street improvement in question when completed and made available for use, and which are ,not shared in generally by the whole community " Citv of Dallas v. Firestone Tire & Rubber Co.: 66 SW d 729 This means that the owner's opportunity to use the improved street is a shared or general benefit. In contrast, if the value of the property is enhanced and the owner is financially enriched by the improvement, this is a benefit limited strictly to the owner of the property Thus, this represents a special benefit to the owner A Special Benefit was found in this case. P~RD CITY SE~~t~tARY ~T. W~a~TR, TAX. WHEN WILL THE BENEFIT TAKE PLACE? This is often an important point of contention. Property owners frequently argue. 'My property will not increase immediately in value so I shouldn't have to pay for the street!" Page v. Lockhart wrestled with this problem and determined... "reasonable probabilities for future use, either by the owner or by others, if sufficiently near in time and deftnite in kind to be of practical important may be considered." The Paae court turned to an Iowa case for further guidance (In re Paving Streets in Floyd Park Addition, Sioux City; 196 NW 597 ~ 599) "Indeed, the benefits to be derived in such cases are ordinarily not instant upon the inception or completion of the improvement, but materialize with the developments of the future. They are none the less benefits because their full fruition is postponed, or because the present use to which the property is devoted is not of a character to be materially affected by the improvement " The Special Benefit will accrue within this legal time period. HOW IS A SPECIAL BENEFIT DETERMINED? In order to determine a special benefit, the appraiser looks to another Texas case, Page v City of Lockhart (397 SWd 113). The court gives the following instruction: "The benefit is found by deciding how much has been added to the fair market value of the property, where such property has a fair market value, and where it has no market value...by deciding how much has been added to the fair value of rts property with reference to all the uses to which it is reasonably adapted and for which it is available." What the court is telling the appraiser is. o The appraiser must make every effort to determine the existence of an enhanced value via a comparison of market comparable method in a before and after condition, o If the market is devoid of such comparable data, evidence may be presented of increased utility to the property from the municipal improvement. Thus, increased property utility can be meet the standard of proof to justify a finding of enhanced benefit. ~0~ 5~~~~~~~~ ~~'. ~0~ ~ ~f, T~(. These legal guidelines have been applied to the instant problem with the following findings. CONCLUSIONS AND FINDINGS OF THIS REPORT The effective date of this appraisal is October 13, 1992. The purpose of the study is to deterrrune if an enhancement has occurred to the subject site due to a municipal improvement project. The appraiser was instructed to determine if any special benefit could be found that would reflect in a valuation enhancement to the subject property If any special benefit were found, it was understood that the City of Fort Worth would levy a special assessment against the property DEFINITION OF VALUE APPLIED IN THE INSTANT ANALYSIS Market Value is defined by the Federal Home Loan Bank Board in Memorandum #R41-c {September il, 1986) as. THE MOST PROBABLE PRICE WHICH A PROPERTY SHOULD BRING IN A COMPETITIVE AND OPEN MARKET UNDER ALL CONDITIONS REQUISITE TO A FAIR SALE, THE BUYER AND SELLER, EACH ACTING PRUDENTLY, KNOWLEDGEABLY, AND ASSUMING THE PRICE IS NOT AFFECTED BY UNDUE STIMULUS. IMPLICIT IN THIS DEFINITION IS THE CONSUMMATION OF A SALE AS 'OF A SPECIFIED DATE AND THE PASSING OF TITLE FROM SELLER TO BUYER UNDER CONDITIONS WHEREBY 1. Buyers and sellers are typically motivated, 2. Both parties are well informed and/or well advised, and each is acting in what he considers his best interest; 3 A reasonable time is allowed for exposure m the open market; 4 Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto, and 5 The price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. While courts and other institutions may use a slightly different definition of market value, the common elements of all definitions of market value are found in the above definition. Enhancement ~e~b~,~l~. 4R~~~yRD ~I~ 5~y~p~~~'ARY ~t. Yi~~llY~, ~~~e FACTS SUPPORTING THE CONCLUSION TO ASSESS The current zoning on the parcels in this study are. "C" Multi-Family District "E" Commercial District "F' Commercial District Thrs classification allows the uses outlined in the Zoning Ordinances of the -City of Fort Worth,Texas. There are rio current alternative uses legally available that would return a greater present value to the owners than the current uses of the property Studies of similar properties in Tarrant County indicate a greater utility and thus, a greater value for properties located on improved roads. THE HIGHEST AND BEST USE OF THE SUBJECT PARCEL In the Highest and Best Use Analysis of the subject property, the appraiser has considered possible use for the site, those uses which are permitted by zoning and deed restrictions, if any; and those possible and permissible uses which will produce the highest net return to the owner of the site under current and projected market conditions. The size and shape of the subject site physically restncts the land to a limited number of uses, and the current zoning legally limits the land to a use as denoted in the attached SUMMARY There are no indications of any pending zoning change in the foreseeable future. The neighborhood is primarily improved with mixed use development. No land use change is anticipated for the subject parcels. Some of the neighborhood properties are declining in utility but renovation and rebuilding can be observed in the neighborhood. Predominate neighborhood land uses are a residential and commercial mix. Located on Wedgwood Drive, the sites have commercial appeal. A variety of land uses are evident to the appraiser No significant land use changes are anticipated in the foreseeable future. There appears to be no adverse adjacent land uses that would affect the marketability of these tracts. Enhancement ~f'i'~~i.~e ~L~o~D Ci~Y SEC~~TARY ~r. wo~~ ~, ~~x Some Transitor~+ Land Use and Speculative Holding Exists The area shows some signs of dilapidation and a few structures are undergoing transient uses. There are examples of remodeling and rehabilitation of structures in the neighborhood. Some new construction is also taking place. The area has seen some development in recent years. The area is a patchwork of zoning and developmental trends. The immediate neighborhood is a mix of commercial and residential uses. The trend is toward commercial development with the residential properties in some decline. Field Work 1 The land and improvements were inspected on the following dates. October 9, 1992 2. Types of uses in the areas of market influence. Predominate neighborhood land uses are a residential and commercial mix. Located on Wedgwood Dnve, the sites have commercial appeal. A variety of land uses are evident to the appraiser The area development mix is. Single Family 55% 2-4 Family 2% Multi Family 5% Commercial. 15% Vacant: * * Institutional. g% * Vacant Developable Land accounts for (5%) The remaining (10%) is consumed by Right of Way, flood plain, and municipal uses. No significant land use changes are anticipated in the foreseeable future. There appears to be no adverse adjacent land uses that would affect the marketability .of this property ~F~,~. PC~RD CITY S~C~t~TARY FT. V~'a6~TN, TEX. 3 Facilities and their condition found in the market area. The area is approximately 50 years old. It is 95% built out with both commercial and residential properties. The properties range in value from $30,000 to $1,000,000+ Vacancy levels in the area approach approximately 12% for commercial properties. The area shows some signs of dilapidation and a few structures are undergoing transient uses. There are examples of remodeling and rehabilitation of structures in the neighborhood. Some new construction is also taking place. Architectural styles and floor plans for buildings m the neighborhood vary by age stratification. The area demonstrates periods of substantial service to the community through these differing building styles. 4 Proximity and sufficiency of infrastructure support: Sanitary sewer, water, gas, electricity, and telephone services are all available to adequately meet the needs of commercial and residential properties in the neighborhood. Local police and fire protection serve the area on a twenty-four hour basis. The current condition of the abutting street (Wedgwood Drive) is poor The condition of the road is an impediment to the area's economic development. 5 Development under construction in the market area. The area has seen some development in recent years. 6. Land use map of the area. A land use map with the appropriate current zoning classifications is available from the City of Fort Worth Planning Department. 7 Preferable land use categories. The current zoning is the preferable land use categories for the sub3ect tracts. 8. Historic occupancy rates in the market area by category of land use Single Family 95% 2-4 Family 85-90% Multi Family 90-95% Commercial. 88% OFFICIO. R~'CORD Report age CITY SFCR~FTARY FT. wo~T~, r~. 9 Supply/Demand study of alternative land uses in the market area as expressed in marketing time Ft. Worth Market Area Single Family 6-9 Months 6-9 Months 2-4 Family 12-i8 Months 12-18 Months Multi Family 12-18 Months 12-18 Months Commercial. 24 + /-Months 24 + /-Months 10. Availability of financing for alternative projects in market area. Financing is available to investors and owner/occupants in this neighborhood. The typical financing terms seem to be through owner financing at 80% Loan-to-Value ratio for 15 to 20 years for commercial structures and 80-90% Loan-to-Value ratios for 15 to 30 years for residential structures. Interest rates range from are 10.5% for the most creditworthy customers and range up to 18% plus for the less creditworthy Proximity to commercial areas and major arterials indicate that demand for this location should exist into the foreseeable future if improvements are made to the transportational matrix. 11 Population trends in the market area. Population trends for the neighborhood are steady and pattern Ft.Worth's general growth rate. 12. Income trends in the market area. The area's disposable income is equal to that of the Tarrant County average. 13 Compatibility of land uses. The area is a patchwork of zomng and developmental trends. The immediate neighborhood .. is a mix of industrial, commercial, and residential uses. The trend is toward commercial development with the residential .properties in some decline. 14 Site Characteristics of the subject tracts. See attached Plat (in addendum) for the size and dimensions of the subject properties. ~~~~ag~F~QRD C(~ S~CR~~'~RY F~. Y~CR~R, r~'Xe The plat indicates ingress/egress to the subject tracts. The sites are generally level and appear to be sufficiently graded for development purposes. There are no easements, right-of-way requirements, or encumbrances that adversely affect the marketability of these properties. Each site is under the Zoning Junsdiction of the City of Fort Worth. 15 Locational Characteristics of the subject tracts. The neighborhood is located in the Southwestern part of Fort Worth. The neighborhood can be defined by the follownng boundaries: Bounded on the North by• Bounded on the West by: Bounded on the South by Bounded on the East by• Southwest Loop 820 South Hulen Street Altamesa Blvd. I 35 W Wedgwood Drive and Southwest Loop 820 are the most heavily traveled artenals in the neighborhood. The subject properties are located on Wedgwood Drive and approximately 1/2 mile South from the intersection of Wedgwood Drive and Southwest Loop 820. 16. Land values influencing the subject tract: Urban Land Use Patterns Very few cities start as planned developments with neat allocations of given areas for commercial, industrial, residential, and other uses. Instead the average city begins as a village and gradually expands. 'This growth process is often haphazard, poorly planned, and frequently expensive. As cities grow, they usually sprawl outward. Business distracts spill over into surrounding residential areas. Sometimes this expansion has a relatively uniform effect on all the blocks surrounding the original beginning point of the city Sometimes it is all in one direction or may follow a single street; and in some cases the central point of the city migrate to other more advantageous locations m the city oFF~cfA~ o~co~n Pa e 9 S~CR~rARY ~r ~,c~~r~, r~x. industrial areas are also affected by this growth process. The original industrial sites-- ordinarily located near the outskirts of small cities-- are soon engulfed by the growing city and frequently isolated from abutting areas that could have been used for plant expansion purposes. Spatial Relationships Affecting Land Use Land utilization patterns reflect locational differences ui the market pricing mechamsm that exists in urban land markets. This is particularly true when dealing with land areas of similar productive capacity located at different distances from the market. Transportation cost is the key factor in these cases. Since these costs ordinarily increase with distance, sites near a market usually enjoy a comparative advantage over sites located further away from the market center Areas close to the market center accordingly receive higher paces for their land base than areas located at greater distances from the market center Application to the Instant Problem... In the instant problem, there are few comparable sales located in the immediate vicinity of the subject property However, if evidence exists in the market that validates the price of land at the most distant point from the central market, then this proof becomes the base price for the urban land market pncing. Appraising When There are No Comparable... Sluggish real estate sales have forced experts to rethink standard property appraisal methods. Appraising without benefit of comparable sales has been a dilemma since the infancy of the appraisal process. The problem is evident in times of rapid growth or in down, depressed markets. It is also evident in rural areas, developing suburbs, small towns, and inner city neighborhoods in transition. An economic decision must be made whether or not comparable sales are available. It is this appraiser's opinion that no convincing comparables sales were available to complete this appraisal assignment. When sales information is not available, then emphasis shifts to the appraisal process itself and to the buyer's decision making process. Appraisal can be done through simulation models generated in previous difficult markets, and modified to fit today's needs. One such model is the Land Residual Technique. OFFICIRL RECOIID ~` ~~'A~Y FT. ~gCTll, T~~. This method assumes that the value of an actual or proposed building can be estimated separately When the land residual method is used, building value is usually the current cost to construct a new building that represents the highest and best use of the land. The land residual technique helps an appraiser estimate land values when recent land sales data are unavailable. The technique can be applied to both proposed construction (to test the highest and best use of the land or site) or to new structures that do not suffer from accrued depreciation. An appraiser applies the building capitalization rate to the building value to obtain the amount of .annual net income necessary to support the value of the building. This amount is then deducted from net operating income, indicating the residual income available to support the investment in the land. The residual income is capitalized at the land capitalization rate to derive an indication of the value of the land. Then building value is added to the land value to derive an indication of the total property value. The land and building capitalization rates are derived from the market and are applied to the subject property The Land Residual method is an income capitalization technique. The income approach is particularly appropriate in today's down market. The income approach emphasizes the future benefits the property is expected to bring. It is based on the principle of anticipation, while standard appraisal techniques are based on the principal of substitution. The principle of substitution states that a purchaser will pay no more for a property than the cost of acquiring a similar property In the past, appraisal has been an ad hoc process, in which the appraiser evaluates a particular property for the short term. As this down market has shown, appraisal consists of ongoing economic and market analysis. Preparation and recognition that market cycles are continuous are the keys to the professional appraisal approach. Determining Property Values In the instant problem, there are few comparable sales located in the immediate vicinity of the subject properties. However, evidence was found in the market that validates the puce of land at the most distant point from the central market. This figure becomes the base price for the urban land market. Further, this become the base price for land. It can be concluded that the base value of land in the Fort Worth urban land market today is approximately $5,000 to $17,000 per acre. R~p ~13Y ~~CR~`ARI( This is for land with the following charactenstics. o No Infrastructure Support (Streets, Water, Sewage) o No Established Zonung Pattern o Purchased for the Purpose of Speculation The Subject Parcel is Similar to Suburban Economic Influences Comparable sales of similar suburban properties were researched. From these sales, a range in price per square foot can be set. 1.03 to 1.80. Expressed in terms of acreage price, the range is. $45,000 to $78,400. This is for land with the following charactenstics. o Infrastructure Support (Streets, Water, Sewage) o Established Zoning Pattern o Purchased for the Purpose of Speculation o Established Land Use Patterns o Available Infrastructure o Proven Development Characteristics o Established Transportational Conveniences ~~~~aGt~9i~~~ CITY S~C~~TARY FT. WO~T6~, T~. A comparative a matrix is presented below Comparable Matrix Subject Distant Suburb Established Zoning Pattern Yes No Yes Purchase Motivation Spec. Spec. Spec. Land Use Patterns Devel. No Devel. Infrastructure Yes No Yes Street Condition Margin No Supportive Proven Development Yes No Yes Transportational Conveniences Yes No Yes Price Per Square 12 to .39 1.03 to 1.80 Testing, the Feasible Decision... The Land Residual method was applied in this study This method assumes that the value of an actual or proposed improvement to the land can be estimated. Building value is usually the current cost to construct a new building that represents the highest and best use of the land. An appraiser applies a building capitalization rate to the building value to obtain the amount of annual net income necessary to support the value of the building. This amount is then deducted from net operating income, indicating the residual income available to support the investment in the land. The residual income is capitalized at the land capitalization rate to derive an indication of the value of the land. This method was applied to the properties under study in this evaluation for enhancement. The results of this analysis supported the final decision that an enhancement was found in the indicated properties. It~+tU CITY SECRETARY fT. WO~dTN, TAX. The C~irrent Taxable Valuation... The conclusions of value found in this report are supported by the Tarrant Appraisal District findings. From these facts, it was determined that the subject parcels. 1. Experienced a special benefit; 2. That special benefit is quantified m the attached 'SUMMARY OF ENHANCED VALUES. This report has been prepared to aid you in the decision making process. It has been a pleasure to serve you, and if we can be of further service to you, please call on us. Martin, MBA, MSA, MFLA, MRA. anon No. 43U3 Addendum RAM/s utti~iAf~ ~~~ ~nent ep rt CITY SECR~'TARY Fr. woRr~, rFx. , ASSUMPTIONS AND LIMITING CONDITIONS The certification of the Appraiser submitting this report is subject to the following conditions. 1 The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownerships. 2. Any and all sketches in this report may show approximate dimensions and is included to assist the reader in visualizing the property The appraiser is not a Registered Surveyor and thus, has made no survey of the property 3 The appraiser is not required to give testimony or appear in court because of having made this appraisal with reference to the subject property, unless arrangements have been previously .made. 4 The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoils, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering which might be required to discover such factors. 5 Information, estimates, opinions furnished to the appraiser, and contained in this report, were obtained in good faith from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraiser 6. Neither all, nor any part of the contents of this report or copy thereof (including conclusions as to the property value, identity of the appraiser, professional standings, affiliations, or the firm with which the appraiser is a part) shall be used for any purpose by anyone but the specific client for whom the report was prepared. Nor shall this report be conveyed by anyone to the public through advertising, public relations, news, sales or other media without the written consent and approval of the appraiser OFfIC lIA RECORD ~~~ SECRETARY n Report Pa e 1 F~. ~~ORTW, ~~~ CERTIFICATION STATEMENTS The appraiser certifies that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct; 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and luniting conditions, and are my personal unbiased professional analyses, opuuons, and conclusions, 3 I have no present or prospective interest in the property :that is the subject of this report, and I have no personal interest or bias with respect to the parries involved, 4 My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or use of, this report, 5 My analyses, opinions, and conclusions were developed, and this report has been prepared, in accordance with the standards and reporting requirements of the Texas Real Estate Commission, 6. I have made a personal inspection of the property that is the subject of this report; 7 No one provided significant professional assistance to the person signing this report; 8. The amount of the fee is not contingent upon reporting a predetermined value or upon the amount of the value estimate, 9 The appraisal report has been made in conformity with and is subject to the requirements of the Code of Ethics and Standards of Professional Practice and Conduct of the National Association of Master Appraisers, 10. I am currently certified under the mandatory continuing education program of the National Association of Master Appraisers.. OFfICIA! REGARD CITY SECRETARY ET. ~`~ORTR, TEX. Enhancement Report Page 16 -- -- ~---L--~- --- -- -- _ ._ ,,. - -- - ~-,l r-yam =`~ - r ~.: "I i ~ "i-~ i ~~ t '" ICS---~j`__ ~ ~I I- ~ ~ S1°1 m 3iy ^ -_ ~ ,~ f~ ^^/ _ ~j _ ^ .-t \ ~ \~ ' \" °/ ~ "/ ~~ ~~/ "~i "~ ., / (• ~~ ~/i m. - h ~. ~ , n / \ ~~ m ~ ;~, ;~, ~; ~ ~~o ~ ~ \ `'b ~o /i / /~ yJ (77 \ \ ,, i'>\ o ._ ~. "/\imj j ^ =~ br ~~ -~ A " i.j \ ~ ~ \~ ~ ~ ~' "' ^ \,~ -~ 7 ^~\ M Y V __ Sit.. ~ < I \ J m N ^~ W ~~ QQ ~ rvj ~`\ ^ " J u ' y ~ ~ \ / p ~\ 'am n < ~-- 37 ti ~~ ~ n \ ~ '1f0 ^ I Hit1J".LN~M ~~ .y ~/ ~x\ ` ~ 4 J ~~ ~ I > - / J / /\/ __..'a°._ ''.. .. v i. -- ._ ~ t\ .-t Q~~ ~ ~'~ a-7 r~ 4 7 O ti rY ~Oj\ u . .ry GN,YFJJI ``~ ~ - t~ m m ~~ - ST. - ~~ ~ `` - ~ ~`' N30lVn o ~ ~ M'~~5 ` ^ ~2.~ Q lf~ .. "O) '000 "] ~J~ da Y `tiy o G7A.~JO 9 ~'~ F ~ \ S3Ntl3ANI r - ~ti R~ n j R ~ ti n ~ H I ~~ ry 1 d,~ y I - - ~ R vA00tl07 _ Q J ^ ~ ~ ^ ~ O (^ , R ^ R F- Q / I .bo - - P~ R - A OviS e I_ o (yoP R R R _ `~^ P I ' I b0 n "' ' . `I' n o - I - - P R I H1flOS > ~ ~ ~ ^ w _ Iry - !C ry R ~ w ~ ~ R a a R K n ~ I^ - R N3nvH1S3N i A .. • t1 O f N R 6 ~ ~ n W Q - I N - 2 ~ ~ J y 2 .. ~ W ~ u~i ~ a '' Y p l R .. - ~ - - a - e - ~ R ° - ~ - R ~ 3 S S n S I eo ^ ~ ad m I - MILL C7 0 ~~ ., ~ n I .. - ~ n a - - n n .. r .. a_ a Vr 1 - - i~ - - I .. !'- s s e "' bo ~ n ~ 4~ - O = w 3`JbS n ~~'10 ~ w a //~\ a~ `: ~ ~ w / \ ^ O ~, _ ~ R ~ _ _ J ~_ ~. ti C ti' ,~ 7~ ~- MAStER F1~E~31 ACCOUNTING•2 TRANSi'ORTATiVN~PUBUC WORKBA/, City of Fort ~ortl~, 7"exa.S NefLR AU MINISTAA~../~'~I~ ~y~cd C;ou~-cil Ca-mmunicati~m ENGINEERING- -~%~''/ ~~,~ 1 DATE REFEREN E NUMBER BH-0113 E NAME PA E ~~JJ~~ 12/03/92 20BHWEDG 1 of 2 ~e`'• SUBJECT BENEFIT HEARING FOR THE ASSESSMENT PAVING OF WEDGWOOD DRIVE FROM WEDGMONT CIRCLE NORTH TO WEDGMONT CIRCLE SOUTH PROJECT N0. 11-040296 RECOMMENDATION: It is recommended that the City Council adopt an ordinance that: 1. Closes the benefit hearing, and 2. Levies the assessments as proposed, and 3. Acknowledges that in each case the abutting property is specially benefitted in enhanced value in excess of the amount assessed for the improvement of Wedgwood Drive from Wedgmont Circle North to Wedgmont Circle South. DISCUSSION: The 1990 Capital Improvement Program included funds for the improvement of Wedgwood Drive from Wedgmont Circle North to Wedgmont Circle South. The street is not located in a Target Area and has previously been constructed to City standards. Community Development Block Grant (CDBG) Funds will not provide a portion of the construction cost. One- and two-family residences are not assessed. Wedgwood Drive will be constructed with standard concrete pavement including standard driveways and sidewalks. On November 5, 1992 (M&C G-9914), the City Council established December 3, 1992, as the date of the benefit hearing. Notice was given in accord with Article 1105b, Vernon's Annotated Civil Statutes. An independent appraiser has provided a report that documents the enhancement to property values which results from the improvements. Based on standard City policy, the Engineer's estimate, and the advice of the independent appraiser, the division of estimated construction cost is: Property owners' share of cost $ 17,920.00 ( 3%) City's share of cost $592 790.72 ( 97%) Total cost 610,710,72 (100%) ;~~ t~ Printed on recycled paper City of Fort Worth, Texas Mayor and Council ~,ommunication DATE 12/03/92 REFERENCE NUMBER BH-0 1 1 3 tOG NAME 20BHWEDG PAGE 2 of 2 SUBJECT BENEFIT HEARING FOR THE ASSESSMENT PAVING OF WEDGWOOD DRIVE FROM WEDGMONT .CIRCLE NORTH TO WEDGMONT CIRCLE SOUTH PROJECT NO. 11-040296 There are no unusual situations on this project that consideration. The project is in DISTRICTS 3 and 6. MG:w require special City Council 1 Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by to Mike Groomer 6140 CITY CC~~NClL Originating Department Nead: dPR 6 ~:a.. Gary Santerre 7804 from At~0~t2d Ot'd1 11C2 Np, ~~ ~ For A i t i ona Information C,hj Se~ratary of Eha Yezas rth t W Contact ~ , o City o4 For Gary Santerre 7804 ~~ ~~ Printed on recycled paper