Mid City Times

Published on June 26, 2024

City Council on Tuesday approved an incentive for Fort Worth Heritage LLC – a joint venture between Majestic Realty Co. and Hickman Companies – to develop Phase II of the Fort Worth Stockyards along with development partner M2G Ventures. The site will be located between East Exchange Avenue, Stockyards Boulevard, and Packers Street.

This major mixed-use development will include 300,000 square feet of new commercial space, new full-service hotels with 500 rooms, a 295-unit multifamily property, and two or more below-ground parking garages to support Cowtown Coliseum, the Fort Worth Herd, and other area improvements.

“This significant investment by Fort Worth Heritage LLC, in collaboration with M2G Ventures, represents the continuation of the successful revitalization of our historic Fort Worth Stockyards," said Mayor Mattie Parker. "Phase II of the Fort Worth Stockyards development promises to deliver substantial long-term value and improvements to Fort Worth's only historical entertainment district. Furthermore, this project is projected to bring over $425 million in net new taxes to our city."

The first phase of the Fort Worth Heritage project focused on Mule Alley and Hotel Drover, increasing the area’s property value to $225 million and significantly boosting sales tax revenue for the City of Fort Worth. Tourism in the Stockyards has also risen from 3 million to 9 million visitors annually over the past decade.

The original project – incentivized by City Council in 2014 – called for two above-ground parking garages; however, they would use a significant portion of the remaining land available for development. By contrast, the underground garages that are part of Phase II will maximize land use at ground level for new development consistent with the historic look and feel of the Stockyards while easing parking challenges.

“Stockyards Heritage is proud of the successful partnerships we established ten years ago with the City of Fort Worth and Tarrant County,” said Craig Cavileer, managing partner of Stockyards Heritage Development Co. “Keeping the historic Stockyards vibrant, authentic, accessible and sustainable remains our collective goal.”

The developer has committed to a minimum investment of $630 million overall, including $472.5 million in hard construction costs with 15% going towards business equity firms. The developer will construct but then convey ownership of parking garages to the City after completion. The City would lease back these garages for 30 years while receiving most net parking profits.

Additionally, annual performance-based grants totaling approximately $71.6 million across a 30-year term will be provided by the City along with up to $15 million reimbursed for improvements supporting Cowtown Coliseum and Fort Worth Herd.

“The public-private partnership between the City of Fort Worth and Stockyards Heritage for Phase II is both welcomed and exciting,” said District 2 Councilmember Carlos Flores. “Ten years ago there were many questions when Phase I was announced yet today it’s been a resounding success.”

Ultimately, Phase II is expected to bring $425 million in net new taxes while improving parking capacity in one of Fort Worth’s most popular entertainment districts.

“This project is an outstanding example of public-private partnerships that Fort Worth is known for,” said Michael Hennig, economic development manager at the City of Fort Worth.

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