Fort Worth considers $31 million incentive for a pair of West 7th developments
Fort Worth could give a boost to two new developments that have the potential to change the face of the city’s West 7th entertainment district.
The city is considering offering roughly $31 million in grants for a pair of developments from Nebraska-based Goldenrod Companies on the 2800 block of West Seventh Street and the 3000 block of Morton Street.
The “Van Zandt,” being built on West Seventh Street, will have roughly 99,000 square feet of office space, 10,000 square feet of retail space, 226 apartments and a 500-space garage, according to a presentation given to the Fort Worth City Council on Tuesday.
It is named in honor of the Van Zandt family, which owned much of the land that would go on to become Crockett Row
The “One University” building on Morton Street will have 100,000 square feet of office space, 10,000 square feet of retail space, 240 apartments, an 800-space parking garage, and a 175-room hotel, according to the presentation.
Goldenrod is expected to spend $400 million on both projects, and the city expects to get roughly $39.7 million back in new tax revenue between property, sales and hotel taxes.
The Van Zandt needs to be finished by the end of 2026, and One University needs to be finished by the end of 2027 for the developer to get the full benefit, according to the presentation.
This is the biggest investment on West Seventh Street since the Crockett Row developments, said Michael Hennig, the city’s economic development manager at the presentation Tuesday.
The incentives are needed to help lower the overall cost of the project and make it easier for Goldenrod to get financing for the office space, retail, apartments and hotel, he said.
The office market is in a state of uncertainty after the COVID-19 pandemic, and many office tenants are looking for smaller spaces with large amounts of their workforce still working from home.
The office portion of the Crescent Hotel, at 3230 Camp Bowie Blvd., is the first new office development in Fort Worth in the last 10 to 15 years, said Andrew Matheny, a researcher for commercial real estate firm Transwestern.
Office tenants are looking for space that can compete with the comforts of the home office, and a lot of the buildings in Fort Worth weren’t designed to do that, Matheny said.
Having more of the “Class A” office space, meaning it is built with the latest technology and newest amenities, could help attract more corporate relocations to Fort Worth, he said.
Office leasing will target tenants relocating from outside North Texas, according to a slide during the council presentation.
The project will also diversify the businesses in the West 7th district, which has faced criticism for its concentration of bars and nightclubs.
The city of Fort Worth announced a series of initiatives in September to increase public safety in the district following the shooting death of 21-year-old TCU junior Wes Smith.
The initiatives included a greater police presence, a new ambassador program and a new zoning law increasing scrutiny on new bars and nightclubs looking to set up shot in the district.
Goldenrod is also committing to not lease any of the retail space to bars or nightclubs during the 15 years the agreement is in place as a condition of receiving the city incentive.
These projects are important catalysts for the kind of change the city is looking for in that area, said council member Elizabeth Beck, who’s district includes West 7th.
The city council will vote on the grant package at its 6 p.m. meeting on Tuesday, Oct. 17.
This story was originally published October 10, 2023 at 4:28 PM.
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