Fort Worth Heritage Development (380 Agreement)

On display until December 31, 2030, 12:00 AM

Stockyard Sign

Developers

Hickman Companies and Majestic Realty Co., came together to form Fort Worth Heritage Development, LLC (Developer)

Goals

  • Preservation of Fort Worth’s western heritage
  • Historical restoration for future generations
  • Enhancement of Stockyards experience

Plan

  • Preserve and restore the Stockyards’ legacy
  • Renovate facilities that time and weather has been eroding

Project

  • Develop and Redevelop 1,000,000 SF
  • Overall investment: $175,000,000 (excluding any land acquisition costs)
  • Project would provide approximately 1,200 new parking spaces
  • Project would be completed in three phases
    • Phase I: Renovation of the mule barns
      • $35,000,000 in investment by Dec. 31, 2018
      • 180,000 SF of retail/commercial/creative office space
    • Phase II: Consist of a combination of retail, commercial, office, and/or multifamily
      • $65,000,000 additional in investment by Dec. 31, 2022
    • Phase III: Consist of a combination of retail, commercial, office, and/or multifamily
      • $75,000,000 additional in investment by Dec. 31, 2024

City Participation:

  • Project was awarded a 25 year Economic Development Incentive that consists of the Developer receiving up to 40 percent of the taxes on the incremental real and business personal property on the new investment and up to 80 percent of the City’s $0.01 sales tax revenue with an overall cap based on the level/phase of investment achieved.
  • The value of the incentive to the Developer is capped at $26,000,000 Net Present Value (NPV) if Developer completes all three phases.
  • Private-to-Public Ratio: 7:1
  • The Development has also received Neighborhood Empowerment Zone (NEZ) certification for fee waiver benefits
  • The City of Fort Worth will first approve design guidelines for the development before anything happens.
  • If the Developer does not complete Phase II (Level II) then the 25 year term of the incentive gets reduced to only 5 years of incentive
  • If the Developer completes Phase I, Phase II, but not Phase III then the 25 year term of the incentive gets reduced to only 15 years of incentive

Agreement Terms

  • Spend 30 percent of the hard construction costs with Fort Worth contractors
  • Spend 25 percent of the hard construction costs with Fort Worth certified M/WBE contractors
  • Spend at least $50,000 annually on supply and service contracts with Fort Worth companies
  • Spend at least $25,000 annually on supply and service contracts with Fort Worth certified M/WBE companies
  • Cause the creation of at least 25 new jobs by Dec. 31, 2018
  • 20 percent of all rental units will be set aside for quality affordable housing
    • 10 percent of the units set aside will be qualifying individuals/families with incomes meeting the 80 percent income threshold per HUD
    • 10 percent of the units set aside will be qualifying individuals/families with incomes meeting the 60 percent income threshold per HUD
    • The affordable housing requirements are in effect for the duration of the incentive period.

What does Fort Worth get?

  • If Developer constructs all three phases of the development it will generate $245,500,000 in tax benefit to all taxing entities includes the CFW Crime District and The T on the new property taxes and sales taxes generated.
  • The Stockyards are renovated and attract more tourism/visitors to the area that will lead to more revenue to local businesses that will lead to more employment opportunities for local residents
  • Preserve the Fort Worth’s western heritage and an enhancement to one of Fort Worth’s major attractions.

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