FORT WORTH, Texas — On Tuesday, the Fort Worth City Council approved the $69.5 million purchase of the iconic building that until recently housed Pier 1 Imports' corporate headquarters. The city will move into its new digs by late 2022, leaving behind the bunker-esque building it's occupied since 1971.

What You Need To Know

  • The Fort Worth City Council approved $100 million for the purchase of the Pier 1 building at Tuesday's meeting

  • The $30 million above cost are for improvements to the building

  • Councilwoman Ann Zedah suggested 2% of the money be devoted to public art

  • The city is contemplating several of its other downtown properties

On Dec. 2, City Manager David Cooke and Mayor Betsy Price announced the city’s intention to buy the 20-story tower on the northwestern edge of downtown. The sale should close on Feb. 1. The council approved $100 million in tax notes to cover the purchase and potential construction costs. The city will make a $5 million down payment.

At last week’s council meeting, officials said the move would give Fort Worth a modern city hall for half the cost and in half the time of building a new one.

Last year, Cooke suggested the city consolidate offices in a proposal that included a newly-constructed building. That structure, which would have faced Lancaster Avenue on the south end of downtown, would have cost anywhere between $151 and $200 million and wouldn’t have been move-in ready until 2028. The Pier 1 tower offers twice as much square footage as the proposed new building.

Councilwoman Ann Zadeh said Tuesday she wanted to see 2% of the cost devoted to public art on tower’s 12 acres.

The purchase will be made with $100 million from two separate seven-year tax notes, both with interest rates below 1%. The first, $74 million, is non-taxable notes to cover the cost of purchasing the vacant portion of the building. Because part of the tower is occupied by private businesses, another $26 million in taxable notes is required. Around September, the city plans to refinance with a certificate of obligation for 20 years, Deputy City Manager Jay Chapa said.

The roughly $30 million above the purchase price will be used to cover construction, he said. The tower will need remodeling, including the construction of a public council chamber and additional security measures. The city estimates that it will cost between $20 million and $40 million.

The tax notes required a council vote, but not a public referendum. Chapa said the financing should not lead to a tax increase.

When Cooke first pitched exploring a new city hall last year, he projected spending about $200 million. Those funds likely would have come from the 2022 bond referendum.

Because of the money the city will save on the purchase, the city can now take on additional projects, Chapa said. Proposals for the 2022 bond package are still being made, but it’ll likely include improvements to the former city hall and additional street projects.

Chapa said the city plans to move the police department’s Central Division and some administrative offices into the former city hall at 200 Texas Street. The department has three active leases worth a little more than $1.1 million.

Leases remain on the top five floors of the tower but will begin expiring from 2024 to 2031. The city estimates the leases will generate about $3 million in revenue.

After the city moves into the tower, officials said they would explore selling several public buildings downtown, including the Central Library. The city estimates all of its downtown property to be worth around $35 million based on a 2018 calculation. That number may change if the city chooses not to sell some property or if the market shifts.