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City/developer partnership to bring new Forney retail

May 6, 2008

Forney had a slick video presentation Monday showing a proposed new bridge and retail development north of Highway 80 between County Road 212 and Windmill Farms.

The panning video showed how it might look as cars drove across the bridge into a major retail development with decorative ponds and fountains at the entrance.

A development company announced it will bring in the stores, if the city brings in the bridge.

Officials at the special city council meeting said they plan to use a new financing system that will use set aside tax money to pay the estimated $20 million bridge construction cost.

With a little luck, the bridge and the stores could open by the end of 2010.

“This is a huge project,” City Manager Brian Brooks said, “for the City of Forney and the developer.”

Brian Murphy, principal with Endeavor Real Estate Group, said his company has 200 acres under contract and plans to start with a 700,000-square-foot development. That eventually could be expanded to up to two-million square feet.

He could not say what stores likely would be in Forney Marketplace, but other properties developed by the company in the Austin area include Target, JC Penney, Cinemark, PetSmart and others.

“We are in active negotiations with retailers,” Mr. Murphy said. He said the first store likely would be a discounter.

Bridge key

The development hinges on the city building the bridge and interchange. Forney plans to use a new state law that allows taxes to be set aside to pay for transportation projects.

“Forney is going to be the first in the state,” said Scott Young with Pate Transportation, the company handling the project for the city.

The law allows the city to designate land along a highway as a transportation reinvestment zone. In this case, the zone likely will be a narrow strip on either side of Highway 80 from FM548 to 460.

As the value of the land in the strip increases, the rising tax money would be dedicated to transportation projects.

For example, if the value of the land in the strip is $500,000 when the zone is set, the city will continue to collect taxes on that amount for the general fund. But when the value rises, say to $700,000, some portion of the additional tax money from the $200,000 increased value would be used for transportation construction.

Mr. Brooks said that would take money from the city, but the city also wouldn’t have to pay for highway construction from the general fund.

And waiting on the state to fund the projects would take much, much longer, he said.

The city council has not discussed specifics of the reinvestment plan and has not decided whether to ask the county to participate by dedicating part of its increased taxes to the transportation zone.

Still, Mr. Brooks and Mr. Young said they think it will take about two months to clear legal hurdles on the tax zone and that construction contracts for the interchange may be awarded during the first quarter of 2009.

Mr. Murphy, the developer, said the bridge and planned connecting streets make the site extremely attractive. The city’s new thoroughfare plan calls for a major street through the development, south across the bridge, tying into 1641.

“It will give us a connection from 548 to (Interstate) 20,” Mr. Murphy said. “Neighborhoods north and south can easily access this.”

Terrell center still in works

Terrell also has been working with developers on a shopping center, just a few miles east of the Forney site, at Highway 148, 80 and Interstate 20.

Justin Allen, vice president of regional development of Oakridge Investments, said his company is continuing work on the Terrell property, but does not have a commitment from an anchor store. “We’re basically starting on-site work and possible off-site work.”

But Baylor Healthcare has purchased part of the land and will pay for part of the site work. Baylor has not decided what type of facility it will build or when.

Mr. Allen said his company prefers the Terrell site, which also has special tax advantages. “It’s a regional intersection, the spacing is better in terms of Mesquite and Rockwall and it’s in a better position to serve the eastern I-20 corridor.”

In the end, he said, “retail anchors will decide what happens.”


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