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Fort Worth plans to sell flood-prone homes to developer after years of debate

Real estate developers and neighbors visit 2224 Carleton Ave., a home owned by the city of Fort Worth, on Sept. 20, 2023. City staff opened nine houses to developers and members of the public as part of a bid to sell the properties for redevelopment after abandoning plans to build a stormwater detention basin.
Emily Wolf
/
Fort Worth Report
Real estate developers and neighbors visit 2224 Carleton Ave., a home owned by the city of Fort Worth, on Sept. 20, 2023. City staff opened nine houses to developers and members of the public as part of a bid to sell the properties for redevelopment after abandoning plans to build a stormwater detention basin.

From the moment Erin Schallhorn heard about the city of Fort Worth’s plans to build a stormwater detention pond near her Arlington Heights home, she could see her neighborhood’s future washing away.

Property values would decrease as homeowners moved out, driven away by the eyesore and potential safety risks of children drowning, mosquitoes breeding or homeless people camping in the area. There was also no guarantee that the pond would resolve flooding issues that have plagued parts of Arlington Heights for decades, Schallhorn said.

“It was kind of like a Band-Aid on a hemorrhage, and the hemorrhage isn’t going to kill you tomorrow, but it’s going to kill you within a week or two,” she said. “You’re kind of like, ‘Why are we putting a Band-Aid on this? I’d rather die faster or get surgery.’”

Not all neighbors share Schallhorn’s view. Many homeowners supported the city’s vision of purchasing 11 homes to build a detention pond and reduce the risk to some of the west Fort Worth community’s most flood-prone homes. Between 2019 and 2022, city officials spent $3.8 million in city funds and $550,000 in federal grant funds to buy out homeowners willing to sell.

Between 2019 and 2022, the city of Fort Worth purchased 11 homes in Arlington Heights. Nine are set to be sold to Groove Improvement, while the other two will remain permanent green space owned by the city due to a Federal Emergency Management Agency grant.
Courtesy image
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City of Fort Worth
Between 2019 and 2022, the city of Fort Worth purchased 11 homes in Arlington Heights. Nine are set to be sold to Groove Improvement, while the other two will remain permanent green space owned by the city due to a Federal Emergency Management Agency grant.

But enough residents — including leaders of the Arlington Heights Neighborhood Association — opposed the plan that Fort Worth officials decided to reverse course and sell nine of the properties for redevelopment. Two homes were demolished and transformed into permanent green space to meet Federal Emergency Management Agency requirements.

In December, Groove Improvement LLC submitted the sole bid for the nine homes. Led by Fort Worth-based architect Darin Norman and businessman Chad Herman, the newly launched company offered $100,000 and agreed to meet the city’s requirements for redeveloping the properties.

Groove’s initial plans would preserve eight of the nine homes if they meet all technical and structural standards. The ninth structure, at 2205 Western Avenue, would be demolished and rebuilt two feet above the 100-year flood level. Groove also proposes preserving as many trees as possible and installing other flood mitigation improvements, such as French drains, permeable pavement and rain harvesting systems.

What are the city’s requirements for redeveloping homes on Western and Carleton?

Groove Improvement is required to:

  • Redevelop the properties above flood risk (either elevating the existing structures, or demolishing and constructing new structures at least two (2) feet above the 100-year flood level, or a combination of the two)
  • Redevelop without increasing flood risk to surrounding properties
  • Make any new construction compatible with the character of the neighborhood
  • Complete redevelopment within four years of closing

Norman, who has lived in Arlington Heights for more than 20 years, said he has been aware of the stormwater project for some time and often drives by the properties. Friends since their middle school days, Norman and Herman saw an opportunity to collaborate and maintain the historic qualities of the community.

“I like the charm, and then I must say the architectural fabric of the neighborhood and the homes have a great deal of appeal,” Norman said. “The neighborhood location and amenities are very desirable, and I’d like to see those remain intact.”

The bid was well above the appraised value of -$819,031, said Jennifer Dyke, who oversees stormwater management as assistant director of the transportation and public works department. The valuation took into account the cost of redeveloping the sites in accordance with the city’s requirements for elevating homes 2 feet above 100-year flood levels and complete construction within four years, among other restrictions.

City Council members received details about the bid during a Jan. 9 work session, and Dyke expects council members to vote on the agreement during their Jan. 23 meeting. While the city received questions from several potential buyers, Dyke said the complexity of the project may have prevented some developers from moving forward.

“You’ve got the existing homes, you’ve got the flood-prone area … and then the homes have to look consistent with the character of the existing community,” she said. “I’m really excited because it’s a local developer who is already familiar with the look and feel of the neighborhood, so I think it’s going to be really good.”

Neighbors react to development proposal

Executive board members of the Arlington Heights Neighborhood Association are pleased that a viable bidder came forward to take on the project, president Lori Murray-Bosken said by email. The association is holding its breath until the City Council approves the bid, she added.

In an email to members, the executive board said the $100,000 bid may appear to be “an unimaginably low ball offer.” However, the costs of redeveloping the properties will likely run into the millions, and Groove Improvement understands the value of preserving the vintage brick houses, they wrote.

This home at 2212 Carleton Ave. is part of the nine homes the city of Fort Worth is selling for redevelopment. The city previously planned to build a stormwater detention pond on the property.
Emily Wolf
/
Fort Worth Report
This home at 2212 Carleton Ave. is part of the nine homes the city of Fort Worth is selling for redevelopment. The city previously planned to build a stormwater detention pond on the property.

“Their work experience and skill sets are perfect for this undertaking,” Murray-Bosken and the executive board wrote. “They are sensitive to keeping in harmony with the existing homes in the area. Property values for the adjacent single family homes will undoubtedly increase.”

But divisions over the best solution for flooding in Arlington Heights remain. Flood risk has been a subject of debate since the late 1960s, and concern only grew after an intense flood hit the area in 2004. The incident captured the attention of city leaders, who created Fort Worth’s stormwater utility two years later.

Between 2012 and 2016, city officials spent $8 million to increase the amount of below- and above-ground storage for floodwaters. Crews also built a detention pond near the Walgreens at Hulen Street and Bryce Avenue — a project that many neighbors say they don’t want replicated in the middle of the neighborhood.

However, flooding continued to plague homes in the center of Arlington Heights, and the city decided to move forward with a voluntary acquisition program. Jennifer Moody, who lives across the street from the city-owned homes on Western Avenue, was among the homeowners who supported the stormwater detention pond.

Now that the city has abandoned the detention pond plan, Moody worries about the future of the nine homes after Groove Improvement completes its rehabilitation. The flood risk requirements won’t transfer to the next homeowners, meaning a new owner could decide to pour more concrete or tear down the elevated home to build a home that would sell for a higher price, Moody said.

“What’s concerning all of us is we have no guarantee of what’s going to happen here. The next homeowner can do anything,” Moody said. “The first time there’s no deed restriction and someone comes from out of town and buys one of these houses, everyone will be shocked that there is no restriction to build four feet off the ground or add permeable space that will prevent flooding the street downstream.”

Norman said he isn’t in a position to assuage all the potential fears of neighbors. Groove Improvement’s vision for the homes will be complementary to the existing neighborhood, he said.

“It’s often our worst fears that get the best of us,” he said. “If we can address that with truth and accurate information, hopefully some of those fears will be dispelled.”

Raised floorboards and ceiling damage greeted visitors to a vacant Carleton Avenue house owned by the city of Fort Worth, on Sept. 20, 2023. City officials put nine homes on the market after abandoning a plan to demolish houses and create a stormwater detention pond.
Emily Wolf
/
Fort Worth Report
Raised floorboards and ceiling damage greeted visitors to a vacant Carleton Avenue house owned by the city of Fort Worth, on Sept. 20, 2023. City officials put nine homes on the market after abandoning a plan to demolish houses and create a stormwater detention pond.

Community meeting, council vote on horizon

If City Council members approve the bid, Norman anticipates hosting a community meeting with neighbors to explain the initial redevelopment proposal and answer resident questions. The meeting will allow the city to hand over the reins of the project to Groove Improvement, Norman said.

Macy Hill, who represents Arlington Heights on the Fort Worth City Council, said she will encourage the developer to make the community meeting as widely publicized as possible, so neighbors feel comfortable with the project moving forward.

“It’s important that the developer listens to what the neighbors have to say,” Hill said. “I really want to make sure that the integrity of the neighborhood is maintained and that these new developments are not going to flood. The safety risk to these homes and neighbors is really my top concern.”

Monika Merchant lives down the street from the city-owned homes. She said she supports the redevelopment plan but understands why many neighbors are concerned over the prospect of a developer skirting the city’s flood mitigation requirements.

After years of watching neighbors battle over the project on social media sites like Nextdoor and Facebook, Merchant hopes Groove Improvement’s proposal can bridge the gap between the two sides of the flooding debate.

Following the demolition of a home last year, the vacant property at 2209 Western Ave., pictured above, has been transformed into permanent green space. The property cannot be redeveloped because it was purchased using federal grant funds.
Emily Wolf
/
Fort Worth Report
Following the demolition of a home last year, the vacant property at 2209 Western Ave., pictured above, has been transformed into permanent green space. The property cannot be redeveloped because it was purchased using federal grant funds.

“To say I was pleasantly surprised would be an understatement. This is literally the perfect person to take this on, and it’s not just some random developer that’s trying to make a quick buck,” Merchant said. “I’m hopeful that the neighborhood can come together over this, especially considering the developer that did come forward with the bid.”

As Norman and Herman conduct due diligence on the properties, the project faces many open questions. Moody wonders if the developers will continue to make the permanent green space on Western Avenue, purchased with federal grant money, available for public use. Developers could also change course on preserving some homes if they determine the structures are not technically sound enough to elevate, Dyke said.

For now, Norman is excited to demonstrate the possibilities of developing in flood-prone areas of Fort Worth, which faces growing challenges from aging infrastructure and rapid population growth.

“There’s no perfect way to do it, and we learn as we go how to deal with the byproducts of development, and this is one of those opportunities,” he said. “This poses itself to inform a template, moving forward, of how to build within other flood risk areas in the city of Fort Worth.”

Haley Samsel is the environmental reporter for the Fort Worth Report. You can reach them at haley.samsel@fortworthreport.org.

At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.

This article first appeared on Fort Worth Report and is republished here under a Creative Commons license.