PILLAR: Growing
AGENDA DATE: March 25, 2026
COUNCIL DISTRICT(S): 14
DEPARTMENT: Department of Planning and Development
PRIORITY: Government Efficiency
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SUBJECT
Title
Authorize a historic preservation tax exemption for tax revenue foregone estimate of $5,267.00 annually for a ten-year period in a total estimated revenue foregone of $52,675.00 for the property at 5507 Tremont Street in the Junius Heights Historic District on 100 percent of the land and structure value - Estimated Revenue Foregone: General Fund ($38,269.00) and Debt Service Fund ($14,406.00) over a ten-year period
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BACKGROUND
Article XI of the Dallas Development Code established a program for Historic Preservation Tax Exemptions and Economic Development Incentives for Historic Properties ("Program"), which allows property owners to receive tax exemptions for restorations of historic properties. The Program was established in October of 1993 and was most recently renewed on December 1, 2025. Dallas Development Code Section 51A-11.201(e) requires City Council to review any exemption over $50,000.00. The City Council may approve or deny any portion of the exemption over $50,000.00.
The main structure on property 5507 Tremont Street is a single-family house that was built in 1930 and is a contributing structure in the Junius Heights Historic District.
The 2025 Dallas Central Appraisal District (DCAD) appraised value for the 5507 Tremont Street account is $510,000.00, with an improvement value of $322,500.00 and land value of $187,500.00. The applicant is, therefore, required to invest approximately $80,625.00 in the property to qualify for the exemption. As of March 1, 2024, the applicant has spent an estimated $243,788.00 on eligible items.
The new value after completion is estimated to be $753,788.00, with an estimated annual tax assessment of $5,267.00. It will take the City six and half years to recoup the revenue foregone.
The revenue forgone is calculated based on the DCAD value as of the date of the Landmark Commission's approval of the Certificate of Eligibility (in this case 2025). The assumption is that without the tax exemption, nothing would happen to this building and the value would not change. Therefore, revenue forgone for 10 years on a 100 percent exemption is the current (or in this case 2025) city taxes multiplied by 10.
The new value of the project after rehabilitation is calculated based on the current (as of the Landmark Commission's approval of the Certificate of Eligibility) DCAD value plus the amount the applicant is proposing to spend on the project.
The estimated years to recoup the revenue forgone is calculated by dividing the total revenue foregone by the annual new estimated taxes after completion, without adjustment for inflation.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 2, 2026, the Landmark Commission approved the Certificate of Eligibility for 5507 Tremont Street.
FISCAL INFORMATION
Estimated Revenue Foregone: General Fund ($38,269.00) and Debt Service Fund ($14,406.00) over a ten-year period
OWNERS
Kevin Malonson, Owner
Melissa Malonson, Owner
MAP
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