Business Press
July 17, 20006
By Aleshia Howe

City Council to consider incentive for Trinity Bluff developers

After a detailed workshop July 11, Fort Worth City Council members are set to vote on a $4.7 million Economic Development Agreement for the second phase of the Trinity Bluff project at its July 25 meeting.

Trinity Bluff Ltd. and Lincoln Properties will ask for the economic incentive for the second phase of its residential development at Trinity Bluff, an area northeast of the courthouse that overlooks the Trinity River.

The proposed incentive request is for the development of about 490 multifamily units in two apartment buildings on the bluff – one four-story structure and one six-story building.

Project leaders and developers Tom Struhs and Elizabeth Falconer, in conjunction w ith other project partners, will request for 100 percent of the city’s taxes on the taxable value increment created by the project to be provided to the developer over a 20-year period through a Program 380 grant agreement. Developers say the project has a financial gap of $12 million because current market rental rates do not support the caliber of development that is being constructed by Lincoln Properties and the incentive would help to close that gap.

At the July 11 council meeting, Mayor Mike Moncrief praised Falconer and Struhs for their investment in the Trinity Bluff area.

“When you have a gap, sometimes it looks like an ocean and you wonder what you’ve waded off into,” Moncrief said, addressing the $12-million-dollar gap in financing. “I think we have been able to find a responsible middle ground here.”

The proposed development agreement calls for an incentive cap annually and prorating according to total income on an annual basis. Per the proposal, developers also have promised to make additional investments totaling $28.8 million, which will be added into the Trinity River Vision Tax Increment Finance District’s tax rolls so the district can recover the funds given as part of the city’s incentive.

Jay Chapa, assistant director of the Fort Worth Economic and Community Development Department, said the additional $28.8 million investment, which must be made within four years, is a step in the right direction for the city and for Trinity Bluffs.

“We might have had that much investment without Tom and Elizabeth, but by giving them this incentive, they are guaranteeing another $28-million-dollar investment and that will go a long way.”
In exchange for the economic incentive, Lincoln has voluntarily offered to set aside 5 percent of the overall units for affordable housing, while 80 percent are slated for median-income units.
According to the proposal, Lincoln also will commit 25 percent of construction spending to Fort Worth contractors or the grant may be reduced up to 20 percent for the entire term, prorated for each number below 25.

Lincoln also will commit 25 percent of supply and services spending to Fort Worth minority- and women-owned businesses as well as 20 percent of construction spending to Fort Worth minority- and women-owned business contractors or the grant may be reduced up to 20 percent, also prorated for each percentage point missed.

The standard percentage of minority- and women-owned business participation for Fort Worth Economic Development Agreements is 25 percent. District 8 Councilwoman Kathleen Hicks expressed concern at the below-average percentage. Hicks said she would have to know why the minority- and women-owned business participation was 20 percent instead of 25 before she “can sign off” on the deal.

A vote on the proposed incentive will take place at the July 25 city council meeting.