Fort Worth

Developers seek tax breaks for projects near speedway

Tanger Outlets operates 45 shopping centers in 24 states including this location in Myrtle Beach, S.C.
Tanger Outlets operates 45 shopping centers in 24 states including this location in Myrtle Beach, S.C. The Sun News

Tanger Outlets is looking to build a 350,000-square-foot shopping center in north Fort Worth across from the Texas Motor Speedway as part of the initial $100 million phase of development in the 279-acre Champions Circle.

Under terms of two economic incentive packages being considered by the City Council, Tanger must invest $70 million to build the shopping center, and Fine Line Diversified Development in Fort Worth, developer of Champions Circle, must invest $60 million in 500,000 square feet of commercial space and 100,000 square feet of apartments. Fine Line said 132 units are planned next to the Marriott Hotel and Golf Course.

Details of the proposed incentive deals on Champions Circle, and another for a proposed data center in the Alliance area, were heard by the council on Tuesday. Council members will vote on the incentive packages on May 19.

A Buc-ee’s convenience store is also part of the Champions Circle project, and will sit at the southwest corner of Texas 114 and Interstate 35W. The outlet mall would be just south of Buc-ee’s, the highly popular highway stops known for their big size and rich assortment of snacks and gifts. The remaining first phase of development would be just west of Buc-ee’s. Construction could begin this summer.

In addition, Tanger Outlets could build a $10 million, 50,000-square-foot second-phase addition by the end of 2021. Fine Line is also considering a $113 million second phase of 500,000 square feet of commercial space, 200,000 square feet of Class A office space and 300,000 square feet of rental residential space.

The initial phase must be completed by Dec. 31, 2018. Fine Line must have 250 full-time employees, and Tanger Outlets 350 full-time employees by Dec. 31, 2019. In return, Fine Line, controlled by Sundance Square developer Ed Bass, would be rebated 85 percent of the city’s 1-cent sales tax for 10 years, or an estimated $31.5 million, and Tanger Outlets would be rebated 85 percent of the city’s sales tax for 15 years, or an estimated $25 million.

The two incentive packages are tied to each other, meaning if one does not meet the thresholds, the incentives will not be paid to either.

“Champions Circle, Tanger Factory Outlet Centers, and our many other partners are very excited about the potential partnership with the city of Fort Worth outlined today,” Bill Boecker, Fine Line’s president, said in a statement after the meeting. “We look forward to working with the city, Denton County, TxDOT and our other partners in making this mixed-use development a regional destination and a boost to the Fort Worth economy.”

Councilman Dennis Shingleton, whose district encompasses the development site, said: “We have massaged this deal for many months. We’re so close to making this happen.”

In the other proposed incentive, data center developer Winner Llc. is looking to build up to three 250,000-square-foot centers and is choosing between Fort Worth and an undisclosed city outside Texas. The proposed $750 million project would bring 40 jobs, paying an average $70,000 annually. The company is considering buying a 150-acre tract at the northeast corner of Park Vista and Highway 170 in the AllianceTexas development.

Under the incentive, the company has the potential to earn $146.7 million in rebates from real and business personal property taxes and a franchise fee with Oncor, over 20 years. The city would gain $48.5 million.

Not much is known about the company, which registered with the Texas secretary of state in March. According to those filings, Winner Llc. said it is a technology company based in Seattle. Ellen Welichko is listed as the firm’s president and chief executive.

Sandra Baker, 817-390-7727

Twitter: @SandraBakerFWST

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