PILLAR: Growing
AGENDA DATE: September 23, 2026
COUNCIL DISTRICT(S): 10
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize a tax increment financing (“TIF”) development agreement and all other necessary documents (“Agreement”) with TyGra Walnut Hill, LLC and/or its affiliates (“Developer”) in an amount not to exceed $1,188,662.00, payable from current and future Skillman Corridor TIF District funds (“TIF Subsidy”), in consideration of The Highlands Village Retail & Office Redevelopment Project (“Project”) on 0.477 acres of property currently addressed as 9715 Walnut Hill Lane (“Property”) in Tax Increment Reinvestment Zone Number Fourteen (“Skillman Corridor TIF District”), in accordance with the Economic Development Incentive Policy - Not to exceed $1,188,662.00 - Financing: Skillman Corridor TIF District Fund
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
The Highlands Village Retail & Office Redevelopment Project (“Project”) is planned to replace an outdated and underutilized full-service car wash built in 1976 with a new mixed-use building featuring ground floor retail and second floor office space totaling approximately 7,220 net leasable square feet. The Property is approximately 0.447 acres currently addressed as 9715 Walnut Hill Lane located approximately 200 feet west of northwest corner of Audelia Road and Walnut Hill Lane.
The proposed scope of the Project includes the following:
• full demolition of the existing building, site clearing, and new ground-up construction of a 2-story mixed-use (retail and office) building (totaling approximately 7,220 net leasable square feet); and
• site improvements including water, wastewater, storm drainage, new paving, landscaping, signage, lighting (site and pedestrian); and
• sidewalk and streetscape improvements along the Walnut Hill frontage of the Property
Developer’s estimated total Project cost at Substantial Completion (as defined in the Resolution) is approximately $4,748,125.00 and is comprised of the following components: (i) site acquisition cost of $900,000.00; (ii) hard construction costs of approximately $3,125,919.00 (including construction contingency and tenant finish-out costs for all levels of the building and); (iii) professional fees and soft costs of approximately $553,082.00; and (iv) developer fee of $169,124.00.
The Project was reviewed by the City’s Urban Design Peer Review Panel (“Panel”) on January 16, 2026. The Developer made changes to the Project’s urban design to accommodate recommendations by the Panel.
The Office of Economic Development engaged an independent outside underwriter to extensively review the Project and the Developer’s development incentive application. In consultation with the underwriter, Office of Economic Development staff structured the proposed TIF Subsidy as gap funding to make the Project financially feasible. The Office of Economic Development negotiated a detailed Letter of Intent (“LOI”) with the Developer, and, on August 16, 2026, the Developer executed the LOI accepting all terms and conditions. The Resolution accompanying this agenda item contains the detailed terms and conditions of the proposed TIF Subsidy and development agreement. The TIF Subsidy shall be payable upon verification of Substantial Completion of the Project, Developer’s compliance with all terms and conditions of the development agreement, and in accordance with the Skillman Corridor TIF District Increment Allocation Policy.
The TIF Subsidy is anticipated to be deployed from the Skillman Corridor TIF District according to the following budget categories: (i) environmental remediation and demolition $311,550.00, (ii) public infrastructure improvements $44,500.00 and (iii) economic development grant $832,612.00.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction March 2027
Complete Construction December 2029
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 26, 2005, the City Council authorized the establishment of the Skillman Corridor TIF District by Ordinance 26148, as amended.
On December 13, 2006, the City Council authorized the adoption of the Skillman Corridor TIF District Project Plan and Reinvestment Zone Financing Plan by Ordinance 26534, as amended.
On August 24, 2026, the Skillman Corridor TIF District Board of Directors reviewed the proposed Project and unanimously recommended City Council authorization of a TIF development agreement with the Developer in an amount not to exceed $1,188,662.00.
The Economic Development Committee was briefed by memorandum regarding this matter on September 1, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15807570&GUID=3DBBCE2A-1ADB-4BAD-AE7A-59E31FEA0738>
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Skillman Corridor TIF District Fund |
$0.00 |
$0.00 |
$1,188,662.00 |
OWNER/EXECUTIVE
TyGra Walnut Hill, LLC
James (Trey) L. Chapman III, Manager
MAP
Attached