Dallas Morning News / August 6, 2003 / Kevin Krause

Flower Mound business district may be divided

Business park in middle of counties' dispute

          As the Texas Supreme Court considers whether to intercede in a boundary dispute between Denton and Tarrant counties, Flower Mound officials and developers are anxiously waiting to learn whether almost half of a business park they are spending millions to develop will slip out of the county. 

          The Lakeside Business District, which is in the early stages of development, is envisioned as a marketplace along Grapevine Lake with offices, shops, restaurants and a hotel. Developers hope it lures industry and shoppers to the southern part of Flower Mound. 

          If the Supreme Court declines to hear Denton County's appeal – as it already did once – some property owners in the district will see their tax rate almost triple, from the 24 cents per $100 of assessed value to Tarrant County's rate of 64 cents per $100. 

          "It adds a whole new burden to property owners," said Alan Stewart, president of the Lakeside DFW development in the district. 

          Jim Lang, Flower Mound's director of economic development, said property owners also would face higher insurance rates and lose tax incentives Denton County offered, such as a 55 percent rebate on property taxes for five years. That, he said, will make it difficult to attract new businesses to the 1,500-acre commercial district created in 1999. 

          "I very much hope this will end in a way that ... would not be detrimental to our business district," said Stephani Spruill, Flower Mound's mayor pro tem. "It certainly affects their county incentives and makes for a less attractive package for businesses locating there." 

          Some developers signed contracts with the town requiring them to generate a certain amount of tax revenue in exchange for the town spending $25 million to outfit the business district with roads and infrastructure. If the properties fail to develop within seven years, the developers will have to refund some of the town's cost. 

          While some properties in the district stand to be engulfed by Tarrant County, other businesses would straddle the two counties, meaning they would have to negotiate assessments with two appraisal districts, Mr. Lang said. 

          

Under appeal

          Denton County is appealing the high court's decision not to hear its arguments in the legal dispute over 3,500 acres along Denton County's southwestern border. The dispute originated with a 1997 Tarrant County lawsuit. 

          Denton County wanted the high court to overturn a decision last year by the 2nd Court of Appeals in Fort Worth that moved Tarrant County's border north. 

          The appeals court overturned a trial court decision upholding the county line established in 1852. 

          Although Flower Mound would still receive municipal tax revenue should Tarrant County prevail, Denton County would lose millions in potential tax revenue, Mr. Lang said. 

         Because of the potential value of the Flower Mound land in dispute, some in Denton County have questioned the motive in challenging the boundary line. 

          "This litigation is all about money," said Rider Scott, an attorney hired by Denton County. "Denton County wants nothing but to protect history. Tarrant wants money. That's a shame that it would be the basis of litigation and not the preservation of a historic boundary that's been around for 150 years." 

          Mr. Rider said the value of the land is estimated to be worth about $1 billion dollars by 2010. 

          Tarrant County Judge Tom Vandergriff rejected the argument. 

          "It's simply that our attorneys are convinced the property belongs in Tarrant County," he said. "I assure you our county is not in such desperate need of income to have that as its motive." 

Properties affected

          Among the Flower Mound properties that could be affected are a 600,000-square-foot Best Buy warehouse that opened in November, Mr. Lang said. 

          Mr. Stewart's Lakeside DFW development would be nearly split in half. 

          "There's nothing about this that's positive," he said. 

          "Denton County calls it a land grab. I don't know what else you'd call it." 

          Mr. Stewart, whose family has owned land in southern Flower Mound for 30 years, said Tarrant County officials have never approached them. 

          "They didn't ask us what we think of it," he said. 

          Flower Mound council members voted about two weeks ago to spend $6,000 to file a brief with the Supreme Court supporting Denton County's position.