FORT WORTH, Texas — Read this story and more North Texas business news from our partners at the Dallas Business Journal.
The business and civic leaders holding the keys to the future of the Fort Worth Stockyards plan a large second phase of development, a possible $630 million investment, it was revealed June 11 during a presentation to Fort Worth City Council.
Fort Worth Heritage LLC, a collaboration between Majestic Realty Co. and Hickman Cos. and development partner M2G Ventures, aims to add about 300,000 square feet of commercial space to the area, which sees about 9 million visitors a year. On the way could be new hotels, a multifamily community, two underground garages and improvements to the area including green space and amenities, according to the public presentation.
The development would take place directly north of East Exchange Avenue on the southeast corner of Stockyards Boulevard and Packers Street on what is currently vacant land.
A rendering by architecture firm Lake Flato depicts streets lined with trees with several plazas and a food truck area.
In exchange, the city could give Fort Worth Heritage an estimated $71.6 million over 30 years through rebate grants on property taxes. Council could vote on the incentives deal on June 25 and the agreement could go before the area's tax increment finance district board in August.
To receive the grants, the developers must deliver a minimum of 300,000 square feet of commercial space, hotels with at least 500 combined rooms, a minimum 295-unit multifamily complex and two underground parking garages with a minimum of 1,300 spaces. Fort Worth Heritage would also have to spend at least $630 million on public and private improvements, with $472.5 million of that on construction.
Construction would be completed by the end of 2032.
After the developers construct the garages, they would sell them to the city for up to $126 million and lease them back for 30 years. The city gave Heritage incentives in 2014 for the revitalization of the Stockyards, but the new agreement would take the 21 remaining grant payments and redirect them to the second phase of the project.
Additionally, Heritage would make $15 million in improvements to Cowtown Coliseum, with benefits for Fort Worth's bovine residents and the team that supports them at the Fort Worth Herd, including a new barn for the steers, horse stalls and steer pens, and dedicated parking for the Herd's vehicles and equipment.
All in all, the city will spend $382.9 million on the project between the cost of debt service to purchase the garage and the cost of public improvement, but the economic development department estimates the proceeds from the garages will bring that cost down to about $145.6 million. The council would also seek to establish a project financing zone, which would help finance the Cowtown Coliseum improvements.
City officials are hoping the investment will have a big payoff. Michael Hennig, economic development manager at the City of Fort Worth, said after all is said and done, the project could bring more than $845 million in net value to the city, including the parking profits and sale of the garages.
Heritage originally planned the stockyards to be a three-phase development. The first phase included the retail and restaurant corridor Mule Alley and Hotel Drover, which the economic development department estimates boosted the area's land value to $225 million.