Dallas Business Journal
By Spencer Brewer – Staff Writer, Dallas Business Journal
The 5,200 acres known as Veale Ranch may soon get additional incentives in the form of a newly created Tax Increment Reinvestment Zone.
The Fort Worth City Council will hold a public hearing Tuesday regarding the creation of the Veale Ranch TIF. Under the proposed ordinance, the city would contribute 65% of its tax increment to the Veale Ranch TIF each year over the course of the TIF’s lifespan, according to city documents.
On March 8th, PMB Veale Land Investors I and other entities associated with Dallas-based PMB Capital Investments entered into an agreement with the city to develop the parcels known as Veale Ranch/Team Ranch, Rolling V South, Rockbrook and Ventana South.
Development of the land, located north of Bear Creek Drive, east of Farm Market 1187, south of Aledo Road and west of Highway 377 South, would create significant growth for the city. Under the agreement, the development will be constructed and annexed in phases over a period of up to 50 years.
In addition to the TIF, the agreement also called for the creation of the Veale Ranch PID. The final cost for improvements on the properties will run about $3 billion. The Veale Ranch PID assessments, Veale Ranch TIF collections and bond issuances will occur after annexation for 25 to 30-year periods.
Because of the inherent complexities surrounding the development, as well as the 50-year time horizon, the City Council waived some provisions of the Capital PID Policy and TIRZ Policy. The city may finance some portion of the improvements using the proceeds of one or more series of bonds. These would be issued by the city and secured by assessments levied against each completed phase of the development with the Veale Ranch PID.
PMB Capital Investments and the City of Fort Worth entered into negotiations to develop the swath of properties late last year. Development of the 5,200 acres would represent significant residential and commercial growth and infrastructure expansion on the western side of the city.
The conceptual land use plan spans industrial, commercial, mixed-use, institutional and residential uses, according to city documents.
“We want to do this in a quality way that’s lasting and thoughtfully planned from a master-planning standpoint,” Taylor Baird, partner at PMB Capital Investments, said earlier this year. “The development of Veale will be significant for the local area.”
City management is expected to recommend that the city provide economic incentives for eligible industrial and commercial development opportunities within the project, according to the document. Available TIF revenue may be used for those incentives.