Judge Donald J. Cosby of the 67th Judicial District has entered a Judgment validating the creation of a tax increment financing zone by the Fort Worth City Council and authorized the issuance of up to $32 million in bonds to help pay for the development of the Cabela’s destination retail store planned for Fort Worth, Texas.
Last month, the Fort Worth Citizens for Responsible Government filed a lawsuit trying to prevent the TIF zone, arguing that TIFs are designed to boost economically depressed areas and the site receiving the funding in this case does not qualify.
The Judge dismissed the argument saying in his ruling that the area would not have seen any development “solely through private investment.” The Court also entered a permanent injunction prohibiting any further actions challenging the validity of the bonds and dismissed all claims against Cabela’s. The city was awarded $1,000 in attorneys fees, and a local paper is reporting the citizens group will be forced to pay a $300,000 bond and additional fees if they appeal the decision.
The 230,000 square foot store, which is expected to open in May 2005, will be built on a 50-acre site at the interchange of Texas Highway 170 and Interstate 35W.
“Because of the destination status of our large format stores and the huge traffic they generate, Cabela’s believes communities realize significant incremental economic increases in areas where they are located,” said Mike Callahan, Cabela’s SVP of Retail Operations and Marketing. “This incremental economic benefit provides valid reasons for communities to continue to offer incentives to persuade Cabela’s to locate one of its large destination retail stores in their community.”
