During the February 25 City Council meeting, Midway Development Group provided an update on their research and proposed plans for the Bedford Commons property, which is owned by the City. The City purchased the land to help guide its development, aiming to create a lively town center with local businesses, public spaces, and housing options.
The Bedford Commons property spans approximately 30 acres and is generally located between E.M. Bilger Boulevard and Parkwood Drive, south of Bedford Road and north of L. Don Dodson Drive.
To recap, the City of Bedford entered into an agreement with Midway last July to provide conceptual designs, a summary of local market conditions, ways to involve the community and boost the economy, and ideas to cut costs while keeping quality.
The Proposal
Midway is suggesting a phased approach. The first phase will include a residential and a commercial section. The residential portion will be comprised of single-family homes (apartments are not planned). The type of homes, their price range, and number will be finalized once a home builder is chosen. The residential portion will be located on the eastern side of the property.
A commercial portion is planned for the western side of the property with the goal of creating a unique retail destination that would spur future development in the area. Midway has determined the following goals for the commercial portion:
- Design the layout of buildings and plazas around groups of existing large legacy trees.
- Build a walking path that connects the north and south parts of the area.
- Use the existing creek to help with drainage and make small changes to make it more inviting for visitors. Use eco-friendly methods to manage rainwater.
- Ensure shops have high visibility and convenient parking to support the businesses.
- Make rent achievable for small local businesses.
Although still early, Midway discussed adding a place for children to play and families to gather, in addition to an open plaza that could be used for musical performances and/or a farmer’s market.
The precise square footage, sizes, and style of buildings are still to be determined.
Cost and Funding
Midway noted the cost of the commercial portion of the development could be approximately $26.6 million. This was calculated by using $500 per square-foot for construction costs and then adding $200 per square-foot for tenant finish outs of the overall proposed 38,000 square-feet of retail space for a very rough estimate. By having a rough estimate, it helps guide decision making, as Midway and the City go through the development process.
However, the City has not made a final decision to what degree Bedford will participate in these costs. There are several things that could offset these costs, such as the value of the Bedford Commons land, the sale of the residential portion to a home builder, sale of the existing fire station (don’t worry, Central Fire Station will be relocated: https://bit.ly/4btvbxc) that could be turned into a private business, etc.
Please note, these are not formal construction estimates. Those will come later in the development process.
Funding will come from a variety of sources, which have not yet been determined, but will likely include participation by Midway, and TIRZ funds.
In 2021, the City of Bedford created a Tax Increment Reinvestment Zone (TIRZ) - a special district established by the City to encourage development in a specific area. The City of Bedford TIRZ was created specifically to fund the future infrastructure needs within Bedford Commons, such as streets, water/sewer lines, drainage, parking, etc. This means the cost of infrastructure improvements—like roads, drainage, and utilities—will be covered through the TIRZ funding.
TIRZ funds, in general, may only be used for public infrastructure projects. A TIRZ does not create a new tax. Instead, it sets a "base tax value" for the specific area within the designated zone. As property values increase, some or all of the extra property tax revenue from that growth is redirected to support improvements within the zone. For example, if a property was valued at $100,000 in 2021 and in 2024, it was valued at $200,000, a portion of the tax revenues on the additional $100,000 would be allocated into the City of Bedford’s TIRZ. It is estimated that over the life of the TIRZ, the City will collect $30 million in revenue. If needed, the City would be able to issue debt to fund immediate infrastructure needs against the TIRZ, without affecting the tax rate for residents.
As things progress, City officials will need to decide if they want to sell the property to Midway with an agreement in place ensuring the plans would be executed as designed. Or the City could choose to retain ownership of the commercial development to further control its operations and maintenance.
The residential portion of the property will be sold to a home builder specifically chosen by the City. The proceeds of that sale will be used to fund amenities and development within Bedford Commons and could also be used to offset the cost of the commercial buildings.
A second phase beyond the first residential and commercial portion has not been determined yet. The goal is to prioritize this phase and the businesses’ success before deciding the best approach for the second phase.
What’s Next?
The City Council approved Midway to move forward, which includes gathering community input, deciding on the best mix of businesses, creating more defined plans, and estimating construction costs. The Mayor and Council gave direction to staff to draft a new partnership agreement with Midway, for the group to continue their work on the development. City Council will review the agreement before July.
At this point, the City has not given any funding to Midway. However, this next step will require a deeper level of expertise, and the use of detailed engineering plans, and will therefore require funding.
Why it Takes Time
Projects like this require years of planning before construction can begin. Planning for this property really took off in 2021 with the creation of the TIRZ, conducting formal engineering studies on the property, and the reconstruction of Parkwood Drive – which is expected to be complete this summer.
The City is committed to the long-term success and sustainability of the Bedford Commons development. The City’s ultimate vision for this property is for it to become a true destination for residents and visitors, a place the Bedford community can truly take pride in.
More Information
To read about past progress, TIRZ, and to view the presentation from Midway given during the February 25 City Council meeting, please visit www.bedfordtx.gov/bedfordcommons.
