Arlington waives $550,000 in fees for Knox workforce housing

The Arlington City Council voted unanimously in November 2026 to create a Neighborhood Empowerment Zone covering The Knox on Watson, a workforce housing development at 1401 S Watson Rd in Arlington, and to waive roughly $550,000 in associated development fees. It is the first time since 2021 that the city has used the zone tool.

The project totals 104,547 square feet across three three-story buildings. Arlington TXHP, LP is the owner of record; Wallace Architects LLC is the designer. Austin-based Structure Development asked the city to rezone about 6 acres for the development.

A January 2026 TDLR filing lists estimated construction cost at $15.0 million and schedules construction to begin May 1, 2026, with completion Sept. 1, 2027. The community's leasing website says the apartments are under construction. Units range from one to three bedrooms. Amenities include kitchens with appliances, open living and dining areas, in-home laundry, and exterior community spaces.

The council approved zoning for the project in August 2025. According to a June 2026 council presentation, the developer added parcels for a second access point and an additional community amenity at a cost of about $1.8 million to $2.3 million. The project still faces a roughly $2 million funding gap.