Latin lifestyle
 By
Cara West
Hispanics become driving force in economic development
Fort Worth is the third most populous city in Texas, behind Houston and Dallas.
The population for the city in 2004 was 598,850 and is continuing to grow, especially within the Hispanic community. According to the city’s Web site, in 2000, 29.8 percent of the population was Hispanic.
At the July 13 meeting of the Economic Development Council of the Fort Worth Chamber of Commerce Robert Sturns, coordinator for business development for the city of Fort Worth, and José de Jesús Legaspi, owner of The Legaspi Co., detailed the current revitalization of the La Gran Plaza de Fort Worth, also known as Fort Worth Town Center, off of Interstate 35 and Seminary Drive. The Legaspi Co. is headquartered Los Angeles, Calif., and has offices in Fort Worth.
The Grupo Zócalo team, which consists of Andrew Segal, president and founder of Boxer Properties in Houston; Dallas businessman Jim Neil; and Legaspi, has taken over this project and said that they plan to rejuvenate the once-bustling south side mall.
“Jim and Andrew are really the finance guys in this deal,” said Sturns. “José is the one that brings the experience in leasing centers in the Hispanic market. He has over 15 years experience repositioning these types of urban retail centers. His experience was really the key, we thought, to making this project acceptable.”
On June 7, Fort Worth City Council members agreed to give the developers $13.7 million in refunded taxes if sales hit $200 per square foot. If sales climb to $300 per square foot, the city will grant developers $21.8 million in tax breaks.
The Legaspi Company has over 26 years of experience in leasing centers in Hispanic markets and 15 years repositioning suburban and urban retail properties. Legaspi Co. is a marketing and realty services company that has turned around a number of other malls, most in California.
“I was really excited when José came to us to talk about the possible renovation and redevelopment of the center,” said Sturns.
Legaspi first approached the Fort Worth City Council in March 2004 about renovating the Fort Worth Town Center. The 1.15-million-square-foot mall occupies a little more than 68 acres in a heavily Hispanic Fort Worth neighborhood.
Sears, Dillards and J. C. Penney once anchored the mall, built in the late 1960’s. The area at the time was near several upscale Fort Worth neighborhoods. The big-name retailers have abandoned the mall, even though it had been remodeled and updated, when other more modern malls were built in Fort Worth.
Fort Worth Town Center was built on a dry lakebed on the South side of Downtown. La Gran Plaza is being designed in response to the changing demographics of the region. It provides for supermarkets, cinemas, and a Lienzo Charro, a Mexican rodeo and concert venue arena. The newly renovated Cinema Latino shows first-run movies in Spanish as well as Latin American and Mexican movies.
“One thing we are really excited about is the construction of a 52,000-square-foot rodeo arena,” said Sturns. “And this is something that José really feels and we feel is going to be an exciting addition to south Fort Worth.”
The mall is 36 percent occupied and has had four owners in the past 11 years. Average sales per square foot at the center are $77.
The tax refunds would be spread out over the next 20 years, according to the agreement between Legaspi and the city. If average sales per square foot remain below $85 for five consecutive years, the agreement is null and void.
The developer commitments in phase one include an investment of $32 million, inclusive of purchase costs, on the site within 24 months to renovate the former Town Center Mall into multi-purpose cultural center with capital repairs to existing property including HVAC, a parking lot and the development of a Hispanic-themed façade.
“Then they are going to finish if out with approximately 681,000 square feet of retail space and 78,000 square feet of office space,” said Sturns.
During phase two of construction, an additional investment of $10 million on the site will be made within 10 years, which will bring the total investment to $42 million, says Sturns. They also plan to “build out” of as additional 42,000 square feet of retail space, renovate common area space and interior façades, and add a new pad site of 30,000 square feet of new retail space.
The developers will spend $4.8 million of construction dollars with Fort Worth M/WBE contractors.
“They will be spending $35,000 or 25 percent, whichever is greater, of their annual supply and service spending with Fort Worth contractors,” said Sturns. “And an additional $35,000 with M/WBE contractors. There could be real potential for real growth for small companies who want to be involved in this project over the next few years.”
Sturns went on to say that in addition to the jobs created by the construction itself, the project will create roughly 300 full-time equivalent jobs on the property, and approximately 150 of them will be for Fort Worth residents.
“Not only do we get increases in sales tax revenues, property tax revenues from a revitalized area but we get the added addition of the job creation for the community,” said Sturns.
The La Gran Plaza benefits, according to Sturns, conforms with the council’s goal of revitalizing the central city, provides needed retail services, creates needed neighborhood jobs, increases the sales tax revenue and increases real and personal property revenue.
In addition to bringing the traditional goods and services to the Hispanic consumer, La Gran Plaza de Fort Worth can be marketed as a center for Latino lifestyle.
“In the year 2008, the Hispanic population is probably going to be about 16 percent of the U.S. population,” Legaspi said. “Today the Hispanic population in the U.S. is larger than all of Canada. And today the Hispanic population purchasing power is larger than the GNP of the hundred million people in Mexico.”
Legaspi says that La Gran Plaza is about creating opportunities for the Hispanic community and filling the void of the goods and services not currently being provided.
According to the Legaspi Group Web site, it is estimated that Hispanic consumers in the Dallas/Fort Worth Metroplex spend more than $14 billion in retail sales per year. And according to a 2002 survey from Strategic Research Corporation, the Hispanic mean household income was $42,735.
Legaspi said, “And they are going out of the area. They are going to Arlington, they are going into Irving and they are even going into Dallas to shop.”
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