The Bedford Commons development project has been on and off the shelf at City Hall for more than a decade and a half.  On Tuesday, City Council removed it from the shelf again, dusted it off and, with the help of Midway Development Group, took what appears to be the most serious look yet at its potential as a city-square concept.

Midway was selected in April of 2024 to revive the planning for Bedford Commons, a 31-acre, City-owned site, through a non-binding memorandum of understanding (MOU).  The City reached out to Midway to study options and to develop a concept that could be used to move the development forward.  While Bedford had contracted with other developers in the past, none provided a vision the City considered viable.

Midway Development Group

Midway, according to the company’s website, is a Houston-based “real estate investment, development and construction firm” that has serviced “clients and investors for more than 50 years.”

Hawes Hills and Associates, Bedford’s master planning consultant introduced Midway to the City, according to details of City Council’s April 24, 2024 meeting agenda, which described Midway as “an award-winning real estate investment, development and construction firm focused on reinventing, re-imagining and redefining places.  The company has a proven track record of successful public-private partnerships and quality mixed-use developments in a variety of locations and sizes,” the agenda continued.  It further stated that “the City is in a unique position to be able to partner with Midway and that many communities are seeking out Midway’s assistance to aid them in creating unique spaces of their own.”

Presenting Midway’s vision of Bedford Commons to City Council this past Tuesday, Anna Deans, the company’s vice president of development, stated their objective was to create a “mixed-use destination.”

The space, she explained would be intended for “smaller-scale events” that would “nurture and develop small, local businesses.”  In addition, Deans said, one of the goals would be to highlight the “north-south connection” with Generations Park and Old Bedford School.  All three venues have already been designated in the City’s Comprehensive Plan, approved late last year, as the main cultural components of the proposed Commons District.

“Authenticity” and “Natural Beauty”

Deans said she sees an opportunity for a development with “authenticity” by leveraging the site’s “beautiful, beautiful trees and the creek that runs through the center of the property.”   This would create a venue for the buildings to be surrounded by the “mature trees,” she said, and make a good investment by “amplifying the creek in a more natural state.”  The creek, she further proposed, could be used as a “form of detention” to help control water runoff.

First Phase

The proposed project, Deans explained, would be developed in multiple phases to ensure “early tenants are successful” and to encourage prospective tenants.  In addition, she said, preleasing the entire development at once would “slow the process down significantly.”   She clarified, however, that it “doesn’t mean the second phase couldn’t be right after the first phase” and that there would be a plan for the entire site before starting the project.

The first phase would be built around the existing trees “to create a unique retail destination that will become a catalyst for future development” she explained, and would include “restaurants, retail and public plazas” along the west side of the site.  Serving as a “place holder,” she suggested, the southeast quadrant of the site, at the corner of L. Don Dodson Drive and Parkwood Drive, could be developed for single-family lots, town homes or another option.  It could, she added, also “generate early revenue and create a buffer between the commercial development and adjacent residential neighborhoods, such as Bedford Parc.

Midway, Danes said, is proposing to help with the sale of the lots, leaving ownership of the property to the City.  This, she explained, would be “a way to offset incentives that would be required to develop the first commercial phase.”

The northeast quadrant of the Bedford Commons property, near the corner of Bedford Road and Parkwood drive, would be reserved for a second phase development, Deans said, possibly for “commercial development or residential lots” or, again, whatever the community and City decide upon.

The Site Plan

“A large walkable sidewalk” along the western perimeter of the retail and restaurant component of the first phase, she said, would provide “a strong pedestrian connection” so visitors” can navigate on foot.”  She explained this would also help connect the project to Old Bedford School, along with a secondary path that would “meander” over the creek and “through the trees into a central courtyard.”  She added that the courtyard would also be surrounded by a mix of existing mature trees and retail buildings.

At 38,000 square feet, Deans explained, the retail and restaurant component would be a relatively low-density project, but would also be “a starting point” and “create the type of environment and catalyst for additional growth.”

The building currently used as the Central Fire Station, she suggested, could be converted into an icehouse or restaurant, which “could be a great opportunity to preserve the history of the firehouse and incorporate that story” as a theme.

The drainage ditch, just south of the Central Fire Station, Deans further explained, could be developed into an “organic” outdoor feature for pedestrians with a creek and possibly include structures, such as pavilions.  This could also be used, she added, for water detention.

At the south end of the site, Danes stated the plan consists of a “promenade” with retail, more restaurants and perhaps a farmers’ market for local businesses.  In this case, there could be “pop-up tenants” on short-term leases of six to 12 months.

The Cost & Economic Reality

For the first-phase commercial component, Deans estimated total project costs of $700 per square foot, based on design and construction costs of $500 per square foot plus another $200 per square foot for “tenant improvements.”  Based on an area of 38,000 square feet, she totaled the investment cost at about $26.6 million.

A major challenge facing the development of Bedford Commons, she explained, are that “construction costs have gone extremely high, interest rates have gone high and rents have stayed relatively flat.”  As a further challenge, she added that, based on ”preliminary information,” rents in Bedford, at about $15 to $20 per square foot, “are a little bit lower” than most major cities.

So, based on the construction costs and rent revenue, she projected a shortfall of $18 million to $20 million for the City to make up as an investment “subsidy” to launch the first phase and ensure economic viability for the project.

Otherwise, Deans said, Midway could develop the project “for a fee” so the City could retain ownership of the property.  But this would also mean, she pointed out, that the City would receive all the retail rent revenue and funds from the sale of residential lots.

Responding to a reality check on the affordability of the project from Council Member Amy Sabol, Bedford City Manager Andrea Roy conceded, “They are big numbers, but we expected them to be big numbers.  We are prepared for them to be big numbers.”  Roy further stated reassuringly, “this is what we expected.”

Toward attracting developers, the City established a Tax Increment Reinvestment Zone (TIRZ) in 2020, according to the City’s website.  A TIRZ establishes a “base tax value” for a “designated area” using property taxes to help pay for such costs as street and drainage improvements, park space and utility connections.

A year or two later, the website stated that the Tarrant County Commissioners Court and the Tarrant County College District joined the TIRZ by approving tax rates at 50 percent of their normal rates within the zone.

There are more than 180 TIRZs throughout Texas, the City website explained, which are used as financial incentives to attract developers.