Initial construction is expected to be completed in March 2028 while the project will reach buildout in 2030, public docs show
FORNEY, Texas — Read this story and more North Texas business news from our partners at the Dallas Business Journal.
Pieces are falling into place for the Villages at Gateway, a retail development that is expected to supercharge Forney’s consumer economy. New public documents indicate construction on the first big-box retailer could start this month.
The Villages at Gateway is a 143-acre development planned near North Gateway Boulevard and U.S. Highway 80, anchored by H-E-B, Target and Home Depot. There will also be plenty of room for other retailers as well as restaurants: hundreds of thousands of square feet are planned overall in what would likely be the largest retail center in the fast-growing city east of Dallas.
In exchange, developer Street Level Investments is in line for more than $34 million in incentives, according to documents obtained by Dallas Business Journal.
Home Depot should be the first to break ground, with construction of the 135,653-square-foot store possibly starting sometime in August, according to a filing with the Texas Department of Licensing and Regulation. The store, with an estimated construction cost of $23 million, is set to be completed in September 2025.
Street Level could start work on multiple shell retail buildings totaling 121,305 square feet in July 2025, according to TDLR filings. Construction could cost more than $16 million combined and be completed in about a year.
Those project filings came after the city in June inked incentive agreements with Street Level. Copies of the agreements obtained by DBJ show the Dallas-based firm could receive a total of $34.25 million in performance-based incentives.
The Forney Economic Development Corp. agreed to provide up to $7.5 million in grants. The City of Forney agreed to provide up to $26.75 million over 30 years in the form of rebates on sales tax revenue.
Brian Murphy, managing principal at Street Level Investments, said the project would not have been able to move forward without the agreements.
“Because of where large-scale retail developments are, because of where interest rates and construction costs are, it’s not financially feasible without a public-private partnership,” Murphy said.
To receive the incentives, Street Level must invest at least $195 million in Villages at Gateway. The project must also create at least 200 full-time jobs within 36 months of the completion of construction and 1,000 jobs within 12 months of when the project as a whole reaches completion.
Initial construction is expected to be completed in March 2028 while the project will reach buildout in 2030, according to a schedule included in the agreement.
Street Level Investments must also provide $250,000 to Forney for park improvements and amenities within or adjacent to the development after receiving its second annual sales tax grant from the city.
Mayor Jason Roberson said Forney officials worked to ensure the incentives being provided for the Villages at Gateway are competitive with deals in other cities.
“With the deal that has been worked out we have tried to protect city residents,” Roberson said. “We are a gem and wanted to be treated as such. Street Level investments are wonderful partners.”
In addition to the incentives, Forney City Council approved a resolution on July 16 allowing for the creation of a municipal management district to generate additional tax revenue, which will assist in covering some development costs. The creation of the district will not impose any additional tax burden on Forney residents. Rather, it will be funded solely by the additional tax revenue generated from the development.
Villages at Gateway will add to the immense transformation already seen in Forney, which saw its population spike an estimated 51.2% between 2020 and 2023, more than any city of at least 20,000 people in the United States. Retail is following all those rooftops: a new Costco store is slated to rise at U.S. 80 and Clements Drive/FM 460 and a new Tom Thumb grocery store is already under construction on FM 548. Forney has attracted other power centers, like Victory at Forney, which is anchored by Walmart, Lowe’s, Aldi and AMC.
All of these businesses drive increased sales tax revenue as the city becomes a regional retail and dining hub, Roberson said.
“There used to have a saying that Forney is where Dallas ends and living begins,” Roberson said. “My goal is for Forney to be the best option for families within a 30-minute radius from Dallas. Great schools, affordability, safety and low taxes — that’s Forney.”