Frisco put close to $100M in tax breaks on the table for Fehmi Karahan’s Fields West.
The developer of the $660 million Fields West in Frisco will recoup up to 14 percent of its cost of the mixed-use project, in tax breaks and grants from the city, if it meets agreed-upon deadlines for construction and opening.
The $94.5 million incentive package for FW Development LLC, a unit of The Karahan Companies in Plano, includes: a $7 million break on sales tax for materials; up to $70 million in tax increment funding tied to the project’s location in a reinvestment zone, or TIRZ; and a $17.5 million grant for infrastructure. The package recently got the unanimous approval of the Frisco City Council, the Dallas Business Journal reported.
Frisco Mayor Jeff Cheney owns a residential brokerage, the Cheney Group, which is affiliated with Monument Realty and has sold more than $1 billion worth of homes. Cheney has been accused of using his seat as mayor to give his own business the advantage while icing out other brokerages. He recused himself from the city council’s discussions about the Fields West incentives.
Karnahan’s development deal is with the Frisco Economic Development Corporation and the Frisco Community Development Corporation.
The 55-acre Fields West has been in development for several years, promising a mix of office space, apartments, retail and restaurants. City officials in Frisco have cited the project as a way to foster activity in an underdeveloped section of the city, which has become an anchor suburb on the northern flank of the DFW metroplex. They also expect the project to add $400 million in sales to Fresco’s tax base.
The project had been expected to open sometime in 2027.
The deal sets minimums on space by category: 320,000 square feet of office, 350,000 square feet of restaurant and retail, and 1,100 multifamily units. The deadline for completion has been bumped back to August 2028.
The deal also requires the developer to have construction financing by the end of this year and start work on each part of three phases of the project by 2026. A parking garage must be finished by December 2027, and the developer has to “substantially lease” the retail space before the opening date.
During discussion about the agreement, city council members emphasized that the program will not affect taxpayers.
“The development itself will pay for all of this,” Council Member Bob Woodard said. “This is not a burden on any of the other parts of Frisco.”
Woodard called the development a “significant advantage” for Frisco and helps the city win the “380 battle,” alluding to projects emerging from various cities along the U.S. Highway 380 corridor.
Read more
Commercial
Dallas
Crow Holdings bringing $64M multifamily project to historic ranch
Commercial
Dallas
Wilks Development tees up massive master-planned development in Frisco
Commercial
Dallas
Universal theme park coming to the Fields in Frisco