GRAPEVINE -- Someday, Dallas/Fort Worth Airport could have a four-star hotel near a proposed commuter rail station, along with restaurants, office buildings and entertainment venues, including two amusement parks.
That is one vision presented by consultants for developing more than 1,150 acres in the northwest portion of airport property, all within Grapevine's city limits. But development hinges on the city, the airport and its two owners -- Fort Worth and Dallas -- agreeing on a host of issues.Talks have waxed and waned over decades, and once there was an attempt to have the Legislature step in. Now, however, all sides are seriously talking with one another."The airport and the cities are working in a business relationship rather than in a political confrontation," Grapevine Mayor William D. Tate said recently. "We are looking at it seriously now."Airport officials have given Grapevine a preliminary memorandum of understanding outlining how project costs and expected tax revenue would be shared.Grapevine's leaders have been discussing the matter. But no one is ready to make those discussions public.The potential for businesses, shops, restaurants, hotels and light industry is enormous, airport officials say.A preliminary land use study projected more than 2 million square feet of office space and 970,000 square feet of retail/entertainment space, with an estimated construction cost of $1.7 billion."It has been called the single best piece of property remaining in North Texas," said John Terrell, DFW's vice president for commercial development. "It has access, incredible visibility and will be reached by rail from Dallas and Fort Worth."Tate agrees. "It does appear to be very valuable with rail and is developable," he said. "We have to think it is the best land to develop."A study by TXP, an Austin-based economic consulting firm, also showed that the rewards could be substantial.With a fully developed project, the partner cities could see more than $350 million in tax revenue over 30 years. That does not count property rental payments to the airport itself, which would not sell the land but lease it for development.The talks include property between Texas 26 and Texas 121, Bass Pro Drive and Texas 114, as well as two other airport-owned tracts. One, 272 acres, is called the Mustang Drive property because that street runs through it from near Texas 26 almost to William D. Tate Avenue. The other, 85 acres, straddles Texas 114 between Tate Avenue and east of Main Street. But the prize is what's referred to as the large "entertainment" tract, near the future commuter rail station.Terrell said that with hotels such as the Gaylord Texan and Great Wolf Lodge, and the entertainment venues already in Grapevine, development on the nearby airport property would be a natural. "It is not something sitting in the middle of nothing," he said.But the first issue is how water and sewer service and roads would be provided and at what cost.A study by Freese and Nichols of Fort Worth recommended the installation of water and sewer lines, which would tie into Grapevine's system, at a cost of more than $31 million over 10 years. Terrell said the city and airport would share that cost, but the exact split is still being discussed. Developers would pay for roads, he said.Sharing tax revenue has long been an issue between the airport's owners and the "host" cities of Grapevine, Euless, Coppell and Irving, where the airport is situated.In 1998, Dallas and Fort Worth proposed creating a revenue-sharing plan that would allow host cities to keep collecting taxes at the level that year. Any increase caused by development in the cities would be shared.Irving and Euless agreed and a couple of years later the new car rental facility was built in the Euless portion of the airport. Now the airport is looking at further development nearby that would include a Hyatt Place hotel and possibly other businesses. That project, Southgate Plaza, is moving forward, Terrell said.Grapevine and Coppell did not accept the revenue-sharing agreement. But it's on the table as part of the discussions on developing the airport's north side."From a business standpoint, we want a benefit for the people of Grapevine," Tate said.Tate said that he does not want to ignore the potential development but that he does not want a deal unless if helps Grapevine. "It needs to generate enough income to lower taxes for the people. That is in the best interest of the people of Grapevine. That would provide for the services the people expect," he said.While Terrell would like an agreement, he also said an understanding with Grapevine "needs to mirror the agreement with Irving and Euless."He said that his other position, as mayor of Southlake, allows him to better understand Tate's position. He has worked to include all the host cities in the development discussions, especially as a new land use plan is created. The preliminary draft plan was unveiled to the airport board this week.This report includes material from the Star-Telegram archives.Have more to add? News tip? Tell us
