Stockyards leaders not proceeding with planned $1 billion second phase of development
Fort Worth Stockyards leaders decided not to move forward on a planned $1 billion second phase of development.
Citing market conditions, Stockyards Heritage Development Co. announced Wednesday it will not implement the second phase of renovations valued at $1 billion, which consisted of additional hotels, underground parking, commercial space and residential development.
“As the lead developer, we continually evaluate opportunities to ensure our investments reflect current and future market needs,” said Rick Kline, Fort Worth Stockyards president of operations, in a news release “That process led us to conclude the previously shared concept is no longer the right path forward. We have discussed this decision and our rationale with our partners at the city and look forward to other opportunities for the remaining undeveloped land.”
Stockyards Heritage, which is a partnership between California-based Majestic Realty and Fort Worth’s Hickman Companies, is continuing with its $30 million revamp of the Stockyards Hotel and H3 Restaurant, which they also own.
In June 2024, the Fort Worth City Council approved a massive incentives package for the second phase of the project aimed at expanding the historic district by 2032. The deal included public investment of approximately $382 million and was heavily centered on tax-increment grants and infrastructure financing.
Stockyards Heritage was being led then by Craig Cavileer, who left the organization in a dispute with Majestic Realty’s management. Cavileer and Majestic Realty have continued their legal battle with a jury trial scheduled for October in the Superior Court of Los Angeles. Majestic Realty is asking for $76 million in unpaid loans from Cavileer, who has countersued.
Majestic Realty officials said the legal issues were not a factor in their decision to halt the second phase of the project.
“To be clear, this decision is unrelated to any legal matter or process and does not affect our ability or intention to pursue future development opportunities,” Kline said in a statement.
“Our commitment to the Stockyards remains stronger than ever. These investments reflect our long-term confidence in the district and our commitment to preserving its character and heritage while working closely with the city, our tenants, partners and the community to shape its next chapter.”
Phase 1 of the project kicked off in 2014 and focused on adding the Hotel Drover and creating a retail district using the Mule Barns. That first phase is seen as a catalyst that has increased the area’s annual visitors from 3.4 million in 2018 to 10 million in 2025.
Bob Francis is business editor at the Fort Worth Report. bob.francis@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 Attribution-NoDerivatives 4.0 International License.