Tanger Factory Outlet Centers has signed up several retailers for its proposed shopping center near the Texas Motor Speedway as the race to build an outlet mall heats up in far north Fort Worth.
Nike, Levi’s, Banana Republic, Gap, Old Navy, Express, Skechers, Carter’s and Oshkosh have signed leases for the planned 350,000-square-foot center, the company said Wednesday. It’s negotiating with others and will begin construction on Tanger Outlets Fort Worth once it has leased 60 percent of the space, said Steven Tanger, the company’s president and chief executive officer.
“We are close to that, but not there yet,” Tanger said in a telephone interview. “It’s our plan to start construction before the end of the year.”
The project update from Tanger, based in Greensboro, N.C., comes as the Fort Worth City Council gets set to consider a request for incentives for a different outlet center proposed several miles south on I-35, near Cabela’s. That project, to be called The Outlets at Alliance, is being proposed by Woodmont Land Co.
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If they both get built, they will split the market and neither one will be a huge success.
Steven Tanger, CEO, Tanger Factory Outlet Centers
At a council meeting last week, city officials said that project would be about 580,000 square feet with potential tenants including H&M, Vera Bradley, Brooks Brothers, J. Crew, Abercrombie & Fitch, Guess and Famous Footwear. The developer has not yet announced any signed leases.
The city has offered Woodmont a 15-year grant of 85 percent of the city’s 1-cent sales tax if the project reaches $100 million in investment, capped at $20 million. The council is expected to take up the proposal on Tuesday.
Tanger said that based on his company’s 35 years of experience, there is not room in the north Fort Worth market for two outlet centers.
“If they both get built, they will split the market and neither one will be a huge success,” Tanger said. “The tenant community wants to support one dominant center that will be a big success.”
Tanger Outlets Fort Worth is being built at Champions Circle, a 279-acre commercial mixed-use development at the southwest corner of I-35 and Texas 114. A Buc-ee’s Travel Center is under construction at the site, just north of the Tanger site across from the speedway. The project is being built by Fine Line Diversified Development, which is controlled by Fort Worth developer Ed Bass.
Tanger estimated that the cost of the Fort Worth outlet center will be between $80 million and $100 million. He said it usually takes about a year for a new center to open once construction begins.
In May 2015, the City Council approved an incentive for the Tanger Outlets project if developers invest at least $70 million. The incentive is a grant of 85 percent of the city’s 1-cent sales tax for 10 years. That incentive is capped at $25 million.
Staff writer Sandra Baker contributed to this report.