What’s happening?
The agreement is with Heritage property owner and developer for the site, DF Denton Fund 28 LTD, an affiliate of R.Y. Properties, Town Manager Mike Sims said.
The developer will receive half of the town’s 1% general fund sales tax collected within the development up to $20 million, according to town documents. This is to help the developer get back a portion of the funds they will pay for public infrastructure, Sims said. The public infrastructure cost is expected to be $25 million, per town documents.
According to an economic analysis performed by Catalyst Commercial Development, the developer will receive $20 million in sales tax dollars over the course of 20 years. The developer will start receiving sales tax in 2028 as long as a business is open on-site, Sims said.
The town will still receive 1.5% of sales tax collected from the development, which includes the sales tax collected for the Crime Control and Prevention fund, street fund and the Municipal Development District fund, as well as 0.5% collected for the general fund, according to town documents.
The town anticipates receiving $16.6 million in property taxes and $107 million in sales taxes from the Heritage development within 30 years, according to town documents.
“It’s very common that towns have to participate in order to attract the retail they want,” Mayor Ronald Schmidt said. “The I-35W corridor has already been seen as a way of getting sales tax.”
More details
The Heritage development is a 123.93-acre development on the southwest corner of I-35W and Robson Ranch Road.
The development includes a large store up to 150,000 square feet and a potential six-story hospital not to exceed 120 feet, according to town documents.
There will be a wellness campus on 50 acres of the property, which will include retail, fitness and medical buildings. The rest of the property will have commercial, office and retail buildings. The total square footage for the proposed medical, office, retail and fitness buildings is 1.13 million, according to town documents.
Looking ahead
The developer estimates infrastructure will be completed by March 2026 with a goal to have stores open by December 2027, per town documents.
