City of Fate announces infrastructure support for major retail development

Fate, TX – [April 14, 2025] – The City of Fate has amended a key development agreement with Lafayette Crossing developers and entered into a new agreement to reimburse public infrastructure (utilizing economic incentives) as part of “Project Cactus,” a major commercial project that will transform approximately 80 acres of land into a vibrant retail destination.

Project Cactus will be located at the northwest corner of Interstate 30 and sit between Woodcreek Blvd. to the West and William E. Crawford Avenue (FM-551) to the East. The project is expected to consist of 400,000 square feet of retail and restaurant space including two retail anchors:

• A major Fortune 100 grocery store (minimum of 100,000 square feet).
• A large Fortune 100 department store (also a minimum of 100,000 square feet)

The new Agreement for Economic Incentives provides a sales tax-based mechanism for the Project Cactus developer to earn reimbursements for the actual cost of constructing the required public infrastructure. An estimated $15 million worth of public infrastructure located east of Woodcreek Blvd. including roads, sewage, water, and utilities will be required to serve the development.

This Agreement for Economic Incentives Includes:

• City reimbursement to the developer of infrastructure costs up to $15 million (or actual costs if lower), of which an estimated $9 million will be impact fees generated in the eastern portion of Lafayette Crossing.
• Performance criteria for 50% of the City’s sales tax generated from the project. (The City collects 2% of commercial sales tax, under this agreement 1% would be eligible for reimbursement to the developer)
• A 10-year term for earning reimbursements, beginning in 2028.
• Flexibility for the City to use a range of funding sources for reimbursement payments, including earmarked impact fees (~$9M) and utility capital replacement funds (~$1M), as well as economic development sales tax funds (~$1.7M) and City general funds (~$3.3M). The City will prioritize the use of restrictive developer-paid impact fees and other eligible designated funds over its general funds.

Anticipated Timeline of the Project:

• Mid-2027 – Completion of roads and utility infrastructure
• End of 2027 – Opening of anchor grocery and department stores
• 2028 – Performance Sales Tax Collection for reimbursement begins
• End of 2028 – Completion of approximately 50,000 sq. ft. of smaller shop space
• 2028–2029 – Continued build-out of additional commercial and retail space
• 2037 – Reimbursement term ends, no further incentives or reimbursements associated with Project Cactus will be granted.

Under the original Lafayette Crossing Development Agreement, $9 million was eligible for Impact Fee Credits for the development East of Woodcreek Blvd. The amended agreement eliminates those credits; however, Park Fee Credits will remain for the entire Lafayette Crossing Development. By entering the new Agreement for Economic Incentives, the City will only be able to reimburse the Project Cactus on the Performance Based Metric, funded directly from the Project Cactus Sales Tax collected. 

Upon completion, Project Cactus is expected to add over $140 million worth of new real property value to the tax rolls and an anticipated $2.8 million of annual sales tax to the City. This marks a significant step forward in the City’s mission to diversify the tax base to help reduce the tax burden on City of Fate residents.

For more information on the development, you can visit: https://www.fatetx.gov/539/Lafayette-Crossing.

Press release submitted by Shelbi Stofer, edited for publication in Blue Ribbon News. Images courtesy City of Fate.

  Fate, feature, Lafayette Crossing Fate