PILLAR: Growing
AGENDA DATE: August 25, 2026
COUNCIL DISTRICT(S): 14
DEPARTMENT: Department of Planning and Development
PRIORITY: Government Efficiency
______________________________________________________________________
SUBJECT
Title
Authorize a historic preservation tax exemption for tax revenue foregone, estimate of $5,388.00 annually for a ten-year period in a total estimated revenue foregone of $53,881.00 for the property at 722 Nesbitt Drive in the Junius Heights Historic District, on 100 percent of the land and structure value - Estimated Revenue Foregone: General Fund ($39,145.00) and Debt Service Fund ($14,736.00), 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 722 Nesbitt Drive is a single-family house that was built in 1923 and is a contributing structure in the Junius Heights Historic District.
The 2025 Dallas Central Appraisal District (DCAD) appraised value for the 722 Nesbitt Drive account is $606,090.00, with an improvement value of $440,490.00 and land value of $165,600.00. The applicant is, therefore, required to invest approximately $110,123.00 in the property to qualify for the exemption.
The new value after completion is estimated to be $771,055.00, with an estimated annual tax assessment of $5,388.00.
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 May 4, 2026, the Landmark Commission approved the Certificate of Eligibility for 722 Nesbitt Drive.
FISCAL INFORMATION
Estimated Revenue Foregone: General Fund ($39,145.00) and Debt Service Fund ($14,736.00), over a ten-year period.
Estimated Revenue Foregone: First year tax revenue foregone estimated at $5,388.00 (Estimated revenue foregone over ten years is $53,881.00).
|
Taxing Entity |
Year 1 |
Year 2 |
Remaining 10 Year Total Taxes Foregone |
|
City of Dallas |
$5,388.00 |
$5,388.00 |
$ 43,105.00 |
OWNERS
Kelly Harris, Owner
Joshua Harris, Owner
MAP
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