NEWS RELEASES

Fort Worth Star-Telegram (TX)
July 24, 2006

Movin' on up

Folks can be expected to question the notion of the city giving tax breaks to build luxury apartments. But a Trinity Bluffs development proposal makes strong economic sense.
The Fort Worth City Council, in its 10 a.m. Tuesday meeting, should approve an economic development agreement to grant an estimated $4.7 million in property tax rebates for an upscale development of 490 apartments entailing a private investment of at least $49.7 million.

As part of the deal, the project developers would agree to do additional development totaling at least $28.8 million that would not receive tax breaks.

Fort Worth developer Tom Struhs and Lincoln Property Co. of Dallas are proposing Phase 2 of the Trinity Bluffs development overlooking the Trinity River on the northeast edge of downtown Fort Worth. Phase 1, which is under construction, includes 61 townhomes and 300 apartments.

The luxury apartments in Phase 2 would set an extremely high tone for future development in the area and would produce significant revenue for a tax increment financing district, or TIF, that would help pay the local share of costs for the $435 million Trinity Uptown development.

In addition, the apartment developers would commit to specified levels of construction, supplies and services contracting with Fort Worth-based and minority- and women-owned businesses.

The city would be the only local government entity providing tax rebates, which would total an estimated $4.7 million (expressed in today's dollars) over 20 years. The city also would pay for up to $992,000 in badly needed drainage improvements in the area.

Phase 2 would bring substantial additional property tax revenues to Tarrant County, the county hospital district, the county college district and the Tarrant Regional Water District, city officials said.

The development is to include two six-story buildings containing 200 apartments that are projected to bring monthly rents of about $1,700 for a 1,000-square-foot apartment. Seven four-story buildings would contain 290 apartments that would lease for about $1,400 for a 1,000-square-foot apartment.

The additional development totaling $28.8 million or more is to be built in the same general area. No specific details have been announced.

The Star-Telegram Editorial Board's support for the agreement is made easier because the developers have solid track records and the city has a history of crafting well-restructured deals that encourage attractive development and strengthen Fort Worth's tax base.

The City Council should approve the agreement to encourage the continued resurgence and expansion of the dramatically revitalized downtown area.