A proposed tax increment financing district for the city’s north side and the Historic Stockyards District will generate several million dollars more for public improvements over the next two decades than initially forecast, a City Council report released Friday shows.
Last month, in a meeting with Stockyards-area business owners and leaders, city staff estimated the TIF would generate $25 million. The report Friday sent to Fort Worth City Council members said the TIF would now generate $40 million. The report also reveals that 245 acres has been added to the TIF’s boundaries. It now stands at 925 acres.
The latest figures include acreage of streets and public right of way not in the initial numbers, said Michael Hennig, business and community development coordinator in the city’s Housing and Economic Development Department.
The first value of the proposed TIF area was also “very conservative” and rose when the staff got a closer look, he said.
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The revenue figure is based on 50 percent participation from the city, the Tarrant County College District, Tarrant County and the Tarrant Regional Water District. Each taxing entity would have to vote to approve participation. The taxing entities have been sent a copy of the latest report, Hennig said.
TIFs divert property taxes from new development into a fund to pay for improvements inside a defined district.
The city wants to create the Northside/Stockyards TIF to fund public improvement projects, upgrade infrastructure and help some private projects, including the $175 million development by the Hickman family and Majestic Realty Co. of California. The 1-million-square-foot Heritage development is planned for 68 acres of Hickman-owned land in the Stockyards.
The project is expected to spur additional private development, which would total about $200 million over the 20-year term of the TIF, the report said. The city staff said it expects development to happen on about 123 acres, potentially including offices, shops, restaurants, entertainment and residential uses.
This year would serve as the base value for the district, estimated at $171.8 million. But with all the planned and expected development, the appraised value in the TIF would rise to $808 million, the report said.
Of the $40 million collected, the report estimates that $15 million would be spent on road and access improvement projects; $15 million on public infrastructure improvements; $3.5 million on streetscapes and pedestrian improvements; $3.5 million on public parking; $2.5 million on public amenities, and $500,000 on administrative costs.
The proposed boundaries stretch generally from Northside Drive on the south to just past Northeast 28th Street on the north to North Houston Street on the west and to Interstate 35W on the east. The major corridors include Northeast 28th Street, Brennan Avenue and North Main Street.
The City Council will be given a presentation on the project and financing plan Nov. 18. A public hearing is scheduled when the council meets Dec. 2.
After that, the council will vote to establish the TIF. Assuming it passes, a board will be appointed and will meet for the first time in January.
In June, the council approved zoning changes to accommodate the Heritage project but added restrictions to protect the area’s historic character.