More than 15 years after the Tarrant Regional Water District began acquiring land to build Panther Island, the agency has taken its first step toward selling its holdings to developers.
During its Dec. 17 meeting, the water district board of directors approved a $1 million contract to hire a real estate advisory firm, U3 Advisors, to create a strategy for selling the water district’s land on Panther Island. The water district owns about 116 acres of land near the island, or about 60% of 193 total developable acres, according to a March consultant report.
The development side of the project kicks off as the U.S. Army Corps of Engineers continues its work to design and construct a 1.5-mile bypass channel to reroute the Trinity River and provide flood protection to 2,400 acres in downtown Fort Worth. The channel, known as the Central City project, will create the appearance of a natural island on hundreds of acres of former industrial land between downtown and the predominantly Hispanic Northside neighborhood.
While the water district is the local sponsor of the flood control project, the city of Fort Worth is taking the lead on the economic development portion on Panther Island.
In its 19-month contract, U3 Advisors is tasked with evaluating, planning and selling that acreage. The company — with offices based in Philadelphia, Boston and New York City — was hired through the water district’s request for qualifications. Among six applicants, U3 Advisors was deemed the best candidate, Dan Buhman, the water district’s general manager, said.
The advisory firm “brings a package” that meets the project’s needs for evaluating and selling the land on Panther Island, policymaking and conducting market analysis, added Buhman. The firm currently represents the innovation district project of Fort Worth’s Texas A&M campus.
“They are ready for the complexity that’s involved in Panther Island,” Buhman said.
Aside from representing policymaking initiatives, U3 Advisors will provide recommendations in regard to economic and long-term financial impacts of development and how policies may impact a public improvement district, tax increment financing district and construction costs.
The Panther Island project received $403 million in federal funding in 2022 to go toward the construction of the bypass. Those funds came after Panther Island experienced yearslong delays in receiving government money, including a 2018 stall when it lost support from the Trump administration.
Despite those delays and the upcoming change in the presidential administration, the water district is confident the Corps of Engineers will continue to receive the funding it needs to finalize construction. The project needs $98 million in federal dollars to be considered fully funded.
“Certainly it is challenging, and I think it’s going to require support from our congressional delegation,” said Buhman. “It requires all of us to say, ‘Yeah, we’re in it. (Panther Island) was the right thing for our community,’ which I firmly believe it is.”
Todd Stern, U3 Advisors managing director, assured the water board that his firm would be actively engaged with stakeholders as development progresses. The city of Fort Worth — along with the water district, Tarrant County, Streams & Valleys, Downtown Fort Worth Inc., Tarrant County College and the Real Estate Council of Greater Fort Worth — previously worked together to fund an economic development roadmap released in March.
“I think that for the kind of insight and analysis we hope to provide, over time, we will need to be here and have a continual presence to engage with all of you and other stakeholders who have an interest in development on Panther Island,” Stern said at the meeting.
The hiring of U3 Advisors represents the water district’s dedication to transparency with the public about its approach on Panther Island real estate, Buhman said.
“The (Tarrant Regional Water District) is in this for the flood control project, but as part of that project, we had to buy land for construction for the Army Corps. … We wanted somebody with the right skill set to sell that land,” said Buhman.
Panther Island’s Public Improvement District in its early stages
Discussions about a public improvement district to oversee maintenance of the Panther Island project began in October. That proposal is still in its infancy but progressing, according to Kate Beck, program director for the water district.
The improvement district — created by Fort Worth officials, the water district and real estate firm Seco Ventures — would spearhead Panther Island’s publicly accessible waterways, streets, security and landscaping.
The majority of the improvement district’s budget would be allocated among debris cleanup in canals, flood protection and water quality maintenance. About $150,000 from the water district’s budget would be used to fund those maintenance projects, according to Beck.
In October, officials were working on drafts of petitions to present to private landowners in the Panther Island sector and secure their signatures. Currently, Seco is having conversations with private landowners to obtain those signatures, said Beck. With a vote from the water district’s board to approve the authorization of the petitions, Beck expects them to play out successfully.
Seco continues to coordinate with private landowners, Beck said. Following signatures, two public hearings will be held regarding the petitions. The first, to be hosted in the spring, aims to receive the city’s resolution to establish the improvement district. The second hearing, slated for October 2025, will request the city adopt the improvement district in the city’s 2026 budget.
Nicole Lopez is the environmental reporter for the Fort Worth Report. Contact her at nicole.lopez@fortworthreport.org.
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This article first appeared on Fort Worth Report and is republished here under a Creative Commons license.