WEST LANCASTER REVENUE
The Fort Worth City Council on Oct. 23 heard a report Oct. 24 concerning the transfer of proceeds from development property sold at 250 W. Lancaster Ave.
The transfer of proceeds to the city will establish a funding mechanism for economic development strategic plan initiatives, Economic Development Director Robert Sturns said.
“By adding additional resources, and through the creation of an economic development fund, we are able to be much more creative in recruiting projects that may not be adding much new to the tax rolls (office tenants) or in helping catalytic redevelopment projects in neighborhoods,” he said. “A policy associated with the incentive fund will be presented for consideration at a later date. As projects and needs are identified in alignment with the policy, appropriations will be brought forward to the mayor and council for approval.”
The Fort Worth Local Development Corp. (FWLDC) was an active party to the development of the area, a mixed-use development, with the purpose of promoting revitalization of the area and creating affordable housing, retail, jobs and commercial opportunities.
In January, the FWLDC board authorized the sale of 250 Lancaster by its owner, Lancaster Corridor Redevelopment LLC, of which FWLDC is the sole member, to Beachwold Partners LP. The sale was closed in August.
The net proceeds from the sale, excluding an estimated reserve for capital gains tax to be held by the LDC, are $3.9 million. The FWLDC chose to transfer the funds to the city of Fort Worth so the city council will have oversight of the Economic Development Incentive Fund, including consideration of any potential grants or loans. The additional funds provide operational support for the Economic Development Department as they implement the strategic plan.
In addition to the net proceeds, the city will also be reimbursed for the original land contributed to the project. LDC and city staff negotiated a repayment of $2 million.
The council will likely vote on these subjects at its Nov. 6 meeting.