A state District Court judge in Texas last week ruled that a taxpayers group may proceed with a lawsuit challenging Fort Worth's tax incentive package for Cabelas, Inc. The Fort Worth Citizens for Responsible Government filed suit in September, challenging a $30 million financial plan set up to help Cabela's construct a store near Alliance Airport.
The city countersued last week in Austin, asking the judge to block the lawsuit and require the group to post a $3 million bond. The group said they couldn't afford to pursue the lawsuit if they were required to post the bond.
Fort Worth set up a special tax increment financing district, known as a TIF, which funnels tax revenue from new development into a special fund used to pay for public improvements. The funds are expected to help pay for an aquarium and museum inside the 235,000-square-foot store, as well as roads and lighting. Under the original plan, Cabela's will buy $30 million in bonds from the city-backed corporation that oversees the TIF.
The citizens group believes that the TIF is illegal because state law only allows TIFs in blighted areas or under-developed open areas.