Title
Discuss and provide direction on the Demolition-Rebuild Program.
Body
REQUESTOR:
Mayor Terry Lynne, Mayor Pro Tem Tina Bennett-Burton
BACKGROUND:
In 2009, the City Council approved a resolution to allow residents of Farmers Branch to demolish and rebuild their existing homes with cash and property tax incentives. The resolution was later amended to include builders and developers as eligible for the incentive.
Current incentives depend on property assessed value and range from a $30,000 cash grant to up to seven (7) years of City property tax rebate. The City Council must review and approve all applications.
As part of our ongoing evaluation of the Demolition Rebuild (Demo/Rebuild) program, staff reached out to several experienced builders for feedback, including Todd Bonneau, Rick and Beth Davis, Mike Kleber, and Tom Cusick.
Their responses highlighted three key areas of focus:
* Program Simplification: The current structure is overly complex and difficult to explain. Builders emphasized the need for a simpler, more accessible process that can be easily understood by all participants.
* Fairness and Equity: There is strong support for establishing a clear and consistent standard for total taxable value increases. This would ensure that homeowners better understand the program's requirements and receive equitable incentives based on their investment.
* Program Reach: Builders encouraged the City to promote the use of the program in other neighborhoods.
Following the discussion at the June 17 City Council meeting, it was discussed that the home builder and/or developer drives the program, and its expansion into other neighborhoods will depend on applicants. In 2024, the program received a total of 15 applicants, with most coming from District 5 (14 homes), followed by District 4 (1 home). The incentives used were spread across four options, with Option 4 (Original Improvement Value - $150,001 and up; Cash Grant - 0; City Property Tax Rebate - 7 ye...
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