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Financing plans for a potential $520 million downtown district in Fulshear remain under review.
About the project
At an Oct. 20 meeting, Fulshear City Council heard a presentation on the proposed Fulshear Town Square project after Mayor Don McCoy brought the item to the agenda.
Joe Veytia, a representative of 1093 FTS LLC, said there would be two separate projects: Fulshear Town Square along FM 1093 and Fulshear Village Luxury Lofts between Wallis and Main Streets.
“Our goal is to create a downtown district for Fulshear that residents can enjoy, it attracts quality employers and visitors, supports local businesses and creates amenities that currently do not exist in our city,” Veytia said.
The projects could include several attractions on site, including:
Apartments
A hotel
A sports complex
Restaurants
Retail
A convention center
Parking
Office space
“These projects will transform these properties that today contribute very little tax revenue into developments that will generate millions of dollars in annual economic activity,” Veytia said.
The breakdown
The projects will not raise property taxes for residents, but are projected to create $500,000 worth of annual tax revenue on the two properties, Veytia said. Property, sales and hotel taxes would go toward public improvements.
1093 FTS LLC is seeking to use Fulshear’s existing municipal management district, or MMD, to create a self-imposed tax of $1.41 within the district to assist in paying for public improvements.
Veytia said the MMD can create a city-owned corporation in which Fulshear will not endure potential credit risk of the complex. The developer is also offering the city an absolute net lease where the city will not be responsible for insurance, maintenance or operating expenses.
Veytia requested a 30-year agreement for the self-imposed tax to pay back the improvements; then the city will begin receiving tax revenue.
Other requests made by 1093 FTS LLC include the purchase of two properties near FM 359 at their appraised value, entering into a Chapter 380 agreement and the public improvements being tax-exempt during construction.
The discussion
McCoy said he knew going into the presentation that no decision would be made on the project at the meeting, but he felt it was necessary to go over it, considering the direction Fulshear is headed.
“As fast as we are growing in our city, we’d be remiss in looking at certain opportunities that might be presented for us,” McCoy said.
Mayor Pro Tem Sarah Johnson advised city staff to review the development’s financials, economics, plans and engineering before giving their recommendations to council.
Johnson also reiterated a previous request for occupancy data for hotels, apartments and sports complexes in the area.
Meanwhile, council member Kimberly Bow raised concerns about the “fundamental questions of how” the development will get to the point where staff and council are fully on board.
“There’s more questions than answers,” Bow said.
Keep in mind
No action was taken during the meeting. Johnson said the item will return to the agenda after city staff is ready to provide recommendations on how to proceed.
