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[Public Facility Corporation Meeting on June 27, 2023]
AFTERNOON.WELCOME TO THE, UH, JUNE 27TH, 2023.
CITY OF DALLAS PUBLIC FACILITIES CORPORATION BOARD OF DIRECTORS MEETING.
NAME IS KEITH AL, UH, PRESIDENT OF THE CITY OF DALLAS PUBLIC FACILITIES CORPORATION, BOARD OF DIRECTORS.
I'D LIKE TO CALL THIS MEETING TO ORDER AT 12:03 PM SORRY FOR THE DELAY.
MOVING TO ITEM NUMBER TWO, ROLL CALL.
DIRECTOR COUNSEL PRESENT? NO, SIR.
DIRECTOR MONTGOMERY, DIRECTOR HOLMES.
DIRECTOR S I SAW HER, BUT I DON'T, I'M NOT HEARING HER.
AND THEN, UH, DIRECTOR POAL PRESENT.
MOVING FORWARD TO ITEM NUMBER THREE, PUBLIC TESTIMONY, PUBLIC COMMENTS ON ITEMS FOUR THROUGH NINE.
MOVING ON TO ITEM NUMBER FOUR, DISCUSSION, APPROVAL OF THE MINUTES FOR THE MAY 23RD, 2023, CITY OF DALLAS PUBLIC FACILITIES CORPORATION MEETING.
MOTION MADE BY DIRECTOR RUSSELL, SECONDED BY TAUS DIRECTOR TAUS.
OPPOSED? MINUTES ARE APPROVED.
MOVING ON TO ITEM NUMBER FIVE, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET FOR THE CEDARS AND PARTNERSHIP WITH SAVOY EQUITY PARTNERS, L L C TO BE LOCATED AT 2022 20 SOUTH HERVE STREET, DALLAS, TEXAS, AARON.
SO WE HAVE OUR, UH, FRIENDS FROM SEVO EQUITY HERE TO PRESENT THEIR PROJECT, AND I THINK WE HAVE THEIR PRESENTATION LOADED UP.
SO, UH, I'M GONNA HAND IT OVER TO THEM.
THANKS FOR HAVING US HERE TODAY AND TAKING THE, THE TIME TO LISTEN TO THIS PRESENTATION.
UM, AS A QUICK REMINDER, WE'RE SAVOY EQUITY PARTNERS.
UH, WE FOCUS ON ALL THINGS MOST FAMILY INVESTMENT.
PLEASE RECORD TO REFLECT THAT, UH, DIRECTOR MONTGOMERY HAS, UH, ENTERED THE BUILDING.
UM, THANK YOU FOR JOINING US, DIRECTOR MONTGOMERY.
UM, AND SO, YEAH, WE'RE BASED HERE IN DALLAS.
WE FOCUS ON ALL INVESTMENT AND DEVELOPMENT, UH, FOR MULTIFAMILY HERE IN TEXAS.
UH, PARTICULARLY WE FOCUS ON OPPORTUNITY ZONE INVESTMENT, WHICH IS FEDERALLY DESIGNATED LOW INCOME AREAS.
AND EVERYTHING WE DO, UM, IN INVESTMENT AND MANAGEMENT IS DONE WITH OUR COMMON OWNERSHIP PROPERTY MANAGEMENT COMPANY, INDIO PROPERTY MANAGEMENT.
AND INDIO NOW MANAGES 20,000 APARTMENT UNITS HERE IN TEXAS.
UM, AND SO GETTING TO THE SPECIFIC OPPORTUNITY TODAY.
AARON, PLEASE, UM, IS IN THE CEDARS NEIGHBORHOOD.
AND SO, UH, NOT SURE IF Y'ALL ARE FAMILIAR WITH THIS NEIGHBORHOOD, BUT IT'S ONE OF DALLAS'S OLDEST NEIGHBORHOODS, AND IT'S DIRECTLY SOUTH OF US HERE, UH, FROM DOWNTOWN AND SOUTH SIDE OF I 30.
UH, IT WAS ESTABLISHED IN THE 1870S.
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AND IN GETTING TO MEET SOME OF THE RESIDENTS THAT LIVE IN THE CEDARS TODAY, THERE'S A LOT OF PRIDE, PRIDE IN A LOT OF CULTURE THAT EXISTS IN THE CEDARS NEIGHBORHOOD.UM, IT'S ARTISTIC, IT'S COOL, UM, AND PEOPLE'S ROOTS WHO ARE PART OF THE CEDARS ARE PRETTY DEEP.
UH, BUT THE TRUTH IS IT HAS LONG BEEN OVERLOOKED DESPITE ITS ADJACENCY TO ONE OF THE LARGEST AND EMPLOYMENT DISTRICTS IN THE COUNTRY HERE IN DOWNTOWN, AS WELL AS ITS HISTORICAL LEGACY.
UM, AND THAT IS WHY IT HAS BECOME CONSIDERED AN OPPORTUNITY ZONE.
AND SO IT, IT, IT'S A DORMANT AREA AND REALLY, YOU KNOW, UH, THERE IS, UM, A LOT HAPPENING IN THE FARMER'S MARKET.
AND THERE ARE TOWN HOMES THAT ARE SELLING IN THIS NEIGHBORHOOD FOR AS MUCH AS 700,000.
BUT THE TRUTH IS THE HEART OF THE CEDARS AND THE SOUTH SIDE OF THE CEDARS IS STILL VERY DORMANT.
AND SO WE PUT TOGETHER, UH, A REALLY GREAT OPPORTUNITY TO BRING HOUSING TO THE SOUTH SIDE OF THE CEDARS WITH TWO NEIGHBORING VACANT LANDSIDE.
UM, AND THIS IS ALSO AN OPPORTUNITY TO RESTORE THE HISTORIC POWER AND LIGHT BUILDING, WHICH IS ALSO FALLEN VACANT.
UH, ADDITIONALLY, UH, IT'S AN OPPORTUNITY TO UPGRADE SOME OF THE CITY'S OLDEST, UH, INFRASTRUCTURE THAT'S OVER A HUNDRED YEARS OLD IN THIS NEIGHBORHOOD.
AND YOU SEE HERE ON THE SLIDE, THE, UH, PICTURE OF THE POWER AND LIGHT BUILDING.
THIS IS ONE OF FOUR POWER AND LIGHT BUILDINGS IN THE CITY OF DALLAS.
UH, AND TECHNICALLY IT'S NOT ACTUALLY HISTORICALLY PRESERVED.
AND SO AS PART OF THIS PROCESS, WHILE OBVIOUSLY THE MEANING OF TODAY'S PRESENTATION IS ABOUT BRINGING HOUSING TO THIS NEIGHBORHOOD, PART OF WHAT WE ARE GONNA DO AS PART OF THE PROJECT IS TURN THIS, UH, INTO OUR AMENITY CENTER FOR THE NEIGHBORHOOD, UH, IN THESE COMMUNITIES, AS WELL AS ACTUALLY PUT IT ON THE NATIONAL REGISTER OF HISTORIC PLACES.
UM, AND SAVOY SPECIALIZES IN NEIGHBORHOOD REDEVELOPMENT THROUGH THESE OPPORTUNITY ZONE INVESTMENTS, WHICH MAKES US LONG-TERM PARTNERS OVER 10 YEARS AT LEAST FOR THESE NEIGHBORHOODS.
AND REAL HANDS-ON PROPERTY MANAGEMENT AND BUILDING THE TYPE OF PRODUCT, UH, THAT'S MEANT TO LAST, UM, FOR THE TEST OF TIME.
AND OBVIOUSLY THIS IS A LONG-TERM PARTNERSHIP WE'RE DISCUSSING HERE TODAY.
SO, UH, THAT'S A VERY HIGH IMPORTANCE TO US.
AND SO THESE PROPERTIES THAT WE'RE SHOWING HERE, UM, ARE GOING TO BE A WRAP STYLE BUILDING AROUND THE POWER AND LIGHT BUILDING AND A SURFACE PARK GARDEN STYLE BUILDING, UM, THAT'S ADJACENT TO THE NORTH.
AND SO DIFFERENT, UM, PROPERTY TYPES.
AND WE'RE CALLING IT THE POWER AND LIGHT RESIDENTIAL IN THE MARCUS AFTER, UH, STANLEY MARCUS WHO, UH, ACTUALLY GREW UP IN THIS NEIGHBORHOOD.
UM, AND SO ONTO THE NEXT SLIDE, YOU'LL SEE, UM, IS THIS THE NEXT SLIDE? I GUESS I WAS ONE BEHIND.
SO HERE'S A REPRESENTATION OF WHAT WE'RE BUILDING, AND NOW YOU CAN SEE SOURCES AND USES.
UM, SO THE CAPITAL BEING PROVIDED FOR THIS PROJECT, THE EQUITY IS FROM OPPORTUNITY ZONE CAPITAL, WHICH IS LONG TERM INVESTMENT CAPITAL, UM, AND WILL KEEP US IN THIS NEIGHBORHOOD FOR AT LEAST 10 YEARS.
UH, AND AS PART OF THE UNIT MIX, WE'RE PROVIDING A DIVERSE SET OF, UH, FLOOR PLANS ALL THE WAY FROM THE STUDIO TYPE UNIT TO THREE BEDROOMS FOR THIS NEIGHBORHOOD.
AND SO, UM, REALLY IN CLOSING, UM, THE HOUSING WILL BE CLASS A AND IT'S GONNA PRESERVE AFFORDABILITY AS THE CEDARS CONTINUES ITS GROWTH AND REDEVELOPMENT, UM, IN WHICH WE'RE CONFIDENT THAT CONTINUED GROWTH OF THE CEDARS IS GOING TO HAPPEN, AND IT TAKES INVESTMENT INTO THE NEIGHBORHOOD'S INFRASTRUCTURE, UM, AND BRINGING GROWTH TO THE SOUTH SIDE OF THE CEDARS TO REALLY MAKE THIS HAPPEN.
I GUESS I'M, I'M NOT UP TO DATE ON MY SLIDES.
AND, AND HERE, HERE'S A TIMELINE OF WHAT WE EXPECT FOR THE PROJECT.
SO WE PLAN TO CLOSE ON THE LAND IN DECEMBER, AND CONSTRUCTION WILL START NEXT MAY.
WE'VE ALREADY STARTED, UH, DESIGN, UM, ZONING IS IN PLACE IN THIS NEIGHBORHOOD.
SO MULTIFAMILY IS BY, RIGHT? UH, WE PERFORM SITE FEASIBILITY STUDIES, SO WE KNOW THAT THE ENVIRONMENTAL IS CLEAN, AND I'VE WORKED WITH ALL THE DIFFERENT CITY DEPARTMENTS, INCLUDING DW, ENGINEERING, FIRE, AND TRAFFIC, TO DO A PRELIMINARY REVIEW OF THESE BUILDINGS AS WE LAUNCH INTO DESIGN.
AND SO, UM, WITH A PARTNERSHIP HERE TODAY, WE WILL BE ABLE TO MOVE IN GOOD FAITH AT GOAL, AT FULL SPEED TO ACCOMPLISH THIS TIMELINE.
I, I'M SHOWING ON THE SCREEN NOW TO DELIVER INITIAL UNITS, UM, IN JULY OF 2025 AFTER STARTING CONSTRUCTION IN MAY OF NEXT YEAR.
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AT LEAST I BELIEVE IT TO BE READY, UM, TO GO INTO Q AND A AND ASK FOR THE CITY TO PARTNER WITH US IN THIS MISSION FOR HOUSING.WE'LL OPEN THE BOARD FOR QUESTIONS AND COMMENTS.
IF YOU COULD PLEASE RAISE YOUR HAND IF YOU'RE, UH, ONLINE OR HERE IN PERSON, PLEASE.
SO I CAN SEE YOU, DIRECTOR TOLEDO AFTERNOON IS, UM, UM, TERRIFIC PRESENTATION.
I'M, I'M, UH, VERY EXCITED ABOUT THIS PROJECT.
JUST TO LET YOU KNOW FROM THE GET GO, THE, UM, THE FACT THAT WE CAN SPUR DEVELOPMENT, NOT JUST THE CEDARS, I VIEW THIS AS PAST THE CEDARS, THIS IS PAST CORINTH, RIGHT? I MEAN, THIS IS ALMOST, THAT'S CORRECT.
IT'S ALMOST TO THE GATEWAY OF MLK 45.
YOU CAN SEE THE PRESSURE, YOU KNOW, HEADED TOWARD, HEADED TOWARDS FAIR PARK.
SO TO SEE A 90 MILLION INVESTMENT IN THIS COMMUNITY IS SOMETHING, YOU KNOW, VERY, VERY WELCOME.
AND UH, AND I THINK YOU MADE A GOOD POINT ABOUT IT'S, YOU KNOW, WE WILL HAVE RENTERS PAYING 1200, 13, 1400 IN THE SAME NEIGHBORHOOD WHERE THERE'S $700,000 TOWN HOMES.
SO THAT, I THINK IT'S, THAT'S A, THAT'S A TERRIFIC, UH, INDICTMENT OF, OF THIS, OF THIS, UM, OF THIS PROJECT.
I ALWAYS LOOK AT SINGLE FAMILY, UH, RESALE VALUES TO TELL YOU THE DESIRABILITY OF A NEIGHBORHOOD, UH, YOU KNOW, THE SAME PEOPLE, YOU KNOW, LOCATION, CLOSE TO AMENITIES, CLOSE TO THE POLICE STATION, YOU KNOW, WHATEVER IT MIGHT BE, UH, SCHOOL DISTRICTS, ET CETERA.
SO I JUST WANT TO GIVE YOU A, YOU KNOW, CERTAINLY A THUMBS UP AND, AND, UH, WISH YOU WELL.
THANK YOU VERY MUCH, DIRECTOR STINSON.
UM, THIS DOES SEEM TO BE A REAL GOOD, UH, PROJECT.
AND THEN FOR AS, UH, SOME TYPE OF INCENTIVIZATION IN THAT PARTICULAR AREA, UM, I'M ALL WITH YOU.
HOPEFULLY, UH, YOU GUYS WILL BE SUCCESSFUL IN THAT AREA.
JUST, UM, A COUPLE OF QUICK QUESTIONS.
UH, I KNOW NOTED THAT UM, IT STATES 226 OF YOUR 377 UNITS WILL BE ONE BEDROOM, I BELIEVE THAT HAVE TO BE CORRECT? YES, SIR.
BASED ON YOUR, I DON'T KNOW, YOUR ANALYSIS OF, OF WHAT YOU, UH, HAVE FORECASTED WHY SO MANY ONE BEDROOMS JUST A CURIOSITY QUESTION, SO TO SPEAK.
WHAT'S FUNNY IS, UH, TYPICAL FOR MULTI-FAMILIES, EVEN A HIGHER RATIO OF ONE BEDROOMS, THAT'S JUST THE TYPICAL DEMOGRAPHIC THAT LIVES IN, UH, THESE APARTMENT COMMUNITIES.
UM, AND SO WE FELT THAT WE WERE ACTUALLY PROVIDING A, A STRONG NUMBER OF TWO BEDROOMS. HOWEVER, ULTIMATELY, UM, THE CEDARS IS A PRETTY SLEEPY PLACE RIGHT NOW.
AND SO WHEN WE MEET PEOPLE WHO LIVE HERE CURRENTLY AND AND LEARN THEIR DEMOGRAPHIC AND IT'S ADJACENCY TO DOWNTOWN, UH, WE BELIEVE THAT THERE'S PROBABLY GONNA BE A HIGHER LEVEL OF, YOU KNOW, CALL IT MILLENNIALS TO, UM, NEWLY MARRIED TYPE, UM, HOUSEHOLDS THAT WOULD BE LIVING IN THIS APARTMENT COMMUNITY JUST GIVEN ITS ADJACENCY TO DOWNTOWN.
BUT NONETHELESS, WE STILL TRY TO PROVIDE, UM, A LARGER NUMBER OF TWO BEDROOMS THAN WHAT WE TYPICALLY WOULD PROVIDE.
SO WILL THERE BE SOME TYPE OF, UH, AMENITIES FOR, OF COURSE, FAMILIES, SINCE YOU DO HAVE TWO AND THREE BEDROOM UNIT MIX IN HERE? YES.
AND, AND THE AMENITY MIX HAS NOT BEEN FULLY FINALIZED BECAUSE WE'RE TRYING TO UNDERSTAND THE POWER IN LIGHT BUILDING AND WHAT WE CAN ACCOMPLISH WITH IT.
UM, IT'S GOT GREAT FLOOR PLATES, UM, BUT WE'RE STILL WORKING ON IF THE LEASING A CENTER IS GONNA BE PART OF THAT POWER IN LIGHT OR IF WE'RE GONNA MOVE IT TO A MORE VISIBLE HARD CORNER.
UM, BUT ULTIMATELY, YES, IT IS IMPORTANT TO HAVE HOUSEHOLD SERVICES, UM, THAT WE OFFER TO OUR RESIDENTS.
AND THAT'S A PROGRAM THAT WE TYPICALLY WORK ON WITH N D O TO HELP US COME UP WITH WHATEVER THEY THINK THE, THE PROPER OFFERING WOULD BE.
AND THEN YOU MENTIONED ABOUT, UH, YOUR ENVIRONMENTAL STUDIES.
UH, DID YOU CONTRACT WITH, UH, SOME AGENCY THAT SPECIALIZED IN THAT, SOME ORGANIZATION THAT, UH, PROVIDED UH, ANALYSIS ON THE SITE? YES, SIR.
SO THERE'S BEEN A LOT OF DIFFERENT USES THAT HAVE OCCURRED IN THE CEDARS OVER THE LAST, UM, 150 YEARS NOW, CUZ IT'S TRANSFORMED FROM WHAT WAS ORIGINALLY A HIGH-END, UH, RESIDENTIAL NEIGHBORHOOD TO REALLY AN I LIGHT INDUSTRIAL NEIGHBORHOOD.
AND SO JUST SEEING THAT SOME OF THESE USES HAVE, YOU KNOW, HISTORICALLY BEEN PRESENT ON THE SITE, UM, WE JUST WANTED TO MAKE SURE TO DOT I'S AND CROSS T'S THAT IT WAS FULLY CLEAN.
SO WE EVEN TOOK GROUNDWATER SAMPLING,
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SOIL SAMPLING, UM, SENT IT TO LABORATORIES AND, AND GOT TOTALLY CLEAN RESULTS BACK, WHICH MADE US FEEL VERY COMFORTABLE.SO OVER THE YEARS THERE HADN'T BEEN ANY TANKS, UH, SUBMERGED, UH, IN THE GROUND.
UM, SO ALL THE, WHAT WE WOULD CONSIDER TO BE ENVIRONMENTALLY NOT CONCERNING, BUT SOMETHING THAT YOU NEED TO GO, UH, DO DISCOVERY ON, UM, HAVE ALL BEEN RETIRED SINCE THE 1970S.
AND IN THE 1970S THERE WERE SOME TANKS, BUT THEY WENT A FULL THROUGH A FULL DISCLOSURE T C E Q CLOSEOUT PROCESS TO WHERE THEY WERE REMOVED, REMEDIATED, AND US GOING AND DOING, UM, SAMPLING AND GROUNDWATER TESTING TODAY PROVED THAT, UM, THEY WERE SUCCESSFUL IN DOING THIS.
SO WITH THE, UM, UM, STUDIES THAT WERE DONE ALONG WITH YOUR SAMPLING, THEN THAT WOULD MEAN IF THERE WERE WHATEVER TANKS MAY HAVE BEEN THERE, UH, YOU DON'T PROCEED THAT THERE WAS ANY TYPE OF, UH, LEAKAGE FROM OLD TANKS.
CAUSE EVERYTHING IS CLEAR, SO TO SPEAK.
UM, UH, SO I'M, UH, I'M LOOKING AT THAT PROPERTY AND THE CURRENT, UM, THE 2023 PROPOSED VALUES WOULD GENERATE $1,539 AND 70 CENTS AND AVALOR TAXES, UM, TO THE CITY.
SO LET'S CALL THAT $1,500, UM, IN TAXES TO THE CITY AS IT'S CURRENTLY, UM, CONSTRUCTED.
AND ON THAT PROPERTY, HUH? COULD YOU TELL ME WHAT THE, UM, STRUCTURING FEE IS FOR YOUR PROPOSAL? I BELIEVE WE HAVE IT AT A THOUSAND DOLLARS A UNIT.
377,000, SO THAT WOULD BE $377,000.
SO THIS PROPERTY, UM, AT THE BEGINNING WOULD GENERATE $377,000 TO THE PFC IN ADDITION TO A SIMILAR PAYMENT ONGOING.
AND CURRENTLY IT'S, UH, UH, BRINGING IN ABOUT $1,500 IN TAXES.
AM I ACCURATE ON THOSE NUMBERS? OKAY.
ANY FURTHER COMMENTS? ANY COMMENTS FROM, UH, THE DIRECTORS ON THE ZOOM MEETING? I CANNOT SEE ALL YOUR FACES, SO YOU'LL HAVE TO SPEAK UP.
DO WE HAVE A MOTION? SO MOVED.
SECOND MOTION MADE BY DIRECTOR TAOS FOR APPROVAL.
SECONDED BY DIRECTOR MONTGOMERY.
DIRECTOR REYES APPROVED DIRECTOR TOTO? YES.
DIRECTOR TALOS APPROVED DIRECTOR.
DIRECTOR PAS, UH, DIRECTOR PAS, BELIEVE YOU'RE MUTED.
ITEM NUMBER FIVE PASSES BEFORE WE MOVE ON TO ITEM NUMBER SIX.
CAN, UM, IS IT POSSIBLE FOR ME TO SEE ALL THE DIRECTORS ON THE SCREEN AT ONE TIME? I CAN'T REALLY TELL THAT THEY'RE IF THEY'RE RAISING THEIR HAND OR NOT, SO I'LL LET YOU KNOW.
I JUST WANNA MAKE SURE EVERYONE'S VOICE IS HEARD.
MOVING ON TO ITEM NUMBER SIX, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET FOR BISHOP EIGHTH IN PARTNERSHIP WITH B BV ACQUISITIONS, L L C TO BE LOCATED AT 5 0 5 AND FIVE 10 WEST EIGHTH STREET, DALLAS, TEXAS.
AARON? YES, WE HAVE, UH, BEN BRUNIG AND
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BRAXTON ADAMSON HERE FROM BB ACQUISITIONS, AND THEY HAVE ALSO PROVIDED US WITH A SHORT PRESENTATION.AND, UM, APPRECIATE YOU GUYS TAKING THE TIME TO, UH, CONSIDER THIS PROJECT.
UM, THIS PROJECT IS A, UM, 232 UNIT CLASS, A MULTIFAMILY, UH, COMMUNITY THAT'S ONE BLOCK OFF OF BISHOP AVENUE IN THE HEART OF BISHOP ARTS.
SO IF YOU'RE FAMILIAR WITH BISHOP ARTS, UM, BISHOP AVENUE RUNS NORTH SOUTH, AND THIS IS ONE BLOCK TO THE WEST ON EIGHTH STREET BETWEEN ADAMS AND LUAN.
UH, THIS PROPERTY HAS BY RIGHT ZONING TODAY.
AND PREVIOUSLY THERE WAS A, UH, THE, THE PLANS WERE SUBMITTED FOR BUILDING PERMIT BACK IN JANUARY, 2022.
SO THE GOOD NEWS WITH THAT IS IT BECOMES A SHOVEL READY SITE, UH, PARTICULARLY ON THE SOUTH BLOCK.
AND WE CAN TALK THROUGH THAT A LITTLE BIT MORE.
SO HERE TO GIVE YOU PERSPECTIVE, UM, IF YOU KNOW BISHOP ARTS, IT'S ALL HIGHLIGHTED IN YELLOW THERE, AND OUR SITE IS THERE IN ORANGE OR RED OR WHATEVER COLOR THAT IS.
UH, PREVIOUSLY, UH, TODAY, ALL THESE SITES OR PREVIOUSLY ALL, ALL THESE, UH, BUILDINGS WERE DEMOLISHED.
AND SO TODAY IT IS A LAND SITE, BUT PREVIOUSLY THERE WERE 60 HOMES HERE, UH, THAT WE'RE PROUD TO REPLACE WITH, UH, 118 NEW INCOME RESTRICTED HOMES OUT OF THE 232, UH, UNIT OFFERING HERE.
OKAY, SO IT'S BOTH SIDES OF THE STREET HERE ON EIGHTH.
UM, A LITTLE BIT ABOUT OUR BACKGROUND.
UM, PREVIOUSLY WE'VE DONE A LITTLE OVER A BILLION DOLLARS IN MULTIFAMILY DEVELOPMENT THROUGHOUT THE STATE OF TEXAS AT, UH, FIRMS LIKE LINCOLN PROPERTY COMPANY AND, UH, NAR MULTIFAMILY RESIDENTIAL.
AND ANYWHERE FROM, YOU KNOW, THINGS, IF YOU GUYS ARE FAMILIAR WITH THE VILLAGE HERE IN DALLAS, UH, TO TRADER JOE'S ANCHORED MIXED USE STEEL ON KNOX STREET TO 25 STORY TOWERS IN HOUSTON.
WE'VE, WE'VE KIND OF DONE IT ALL.
THERE'S A LITTLE BIT OF A WIDE, SORRY.
WELL, WELL, WE'LL KEEP TALKING WHILE THE, WHILE IT CATCHES UP HERE.
UM, HEY, WE JUST THINK THE PRO THE PROJECT STRENGTHS, RIGHT? WE'RE IN THIS BISHOP OF ARTS DISTRICT, WHICH IS REALLY A WALKABLE AREA.
YOU KNOW, YOU'RE WITHIN, UH, UH, ONE, TWO BLOCK, UH, WALK FROM ABOUT 25 DIFFERENT, UH, RESTAURANTS AND BARS.
UM, UH, WE LOVE JUST THE, THE, UM, THE GROWTH OF THE AREA AS KESSLER PARK, UH, COMES INTO BISHOP ARTS THERE.
UH, IT'S ALSO WALKABLE TO THE, UH, BISHOP ARTS, UH, TROLLEY CAR, WHICH GETS YOU, UH, DIRECTLY INTO DOWNTOWN THERE.
UH, WE MENTIONED IT'S BY RIGHT ZONING AND, UM, CONSTRUCTION CAN BEGIN IN, UH, DECEMBER HERE.
AND THEN, UM, AGAIN, BACK ON THE MIXED INCOME PART.
YOU KNOW, THIS AREA IS JUST EXPLODING WITH GROWTH ALL AROUND IT.
AND SO TO BE ABLE TO HAVE MIXED INCOME USE, UH, UNITS HERE IS, IS APPEALING.
UH, THIS JUST SHOWING THE SOURCES AND USES 58 MILLION TOTAL DOLLAR PROJECT, AND WE, YOU KNOW, BLEND THAT BETWEEN AN EQUITY INVESTMENT AND, AND A LOAN.
UH, THIS JUST SHOWING THE BREAKOUT OF THE UNIX, UH, AND WHAT THE MARKET, UH, THE 80% UNITS, 60% UNITS WOULD BE HERE.
UH, THE OTHER ADVANTAGE HERE IS WITHIN BISHOP ARTS, IT'S HARD TO GET LAND WITH ANY SCALE.
AND SO WE HAVE 2.7 ACRES HERE.
AND WITH THE 2.7 ACRES, WHAT WE'RE ABLE TO DO IS, UH, PROVIDE MORE, UH, ONSITE, UH, ONSITE OVERSIGHT WITH A LEASING OFFICE AND PROFESSIONAL MANAGEMENT COMPANY.
AND THEN, UH, ALSO ALLOWS US TO GIVE US A GREATER OFFERING OF AMENITIES, UH, INCLUDING THE SKY LOUNGE FITNESS CENTER, AND THEN SOME PRIVATE GARAGES.
UH, AND SO AGAIN, UH, THE, SO THE SOUTH BLOCK THAT WAS PREVIOUSLY SUBMITTED FOR A BUILDING PERMIT, UH, THAT'S READY TO BE PICKED UP ONCE FEES ARE, FEES ARE PAID.
THE NORTH BLOCK, UH, WE'RE DOING SOME, UH, TWEAKS TO THOSE PLANS AND THOSE SHOULD BE READY, UH, UH, WHEN WE CLOSE ON THE LAND IN, IN DECEMBER.
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UH, WE WOULD CLOSE ON THE LAND, UH, IN DECEMBER, AND THEN WE, UH, START CONSTRUCTION WITH FIRST, UH, LEASING BEGINNING IN FIRST QUARTER OF, UH, 2025.AND THEN IT WOULD STABILIZE, UH, BY THE END OF 2025.
AND THEN, UM, THEN, AND THEN JUST SAY TO, HEY, IF, IF THIS WASN'T A PERIOD, THE PROJECT WOULDN'T MOVE FORWARD.
SO WE'VE CONTEMPLATED THE MIXED INCOME PART WITH THE PFC, UH, IN HERE AS, AS PART OF A BUSINESS PLAN.
SO, ANY QUESTIONS FOR US? THANK YOU VERY MUCH, APPRECIATE YOUR PRESENTATION.
DO WE HAVE ANY QUESTIONS OR COMMENTS? DIRECTOR? TALLIS? I LIKE THE, I LIKE THE PROJECT VERY MUCH.
UM, JUST FOR HISTORICAL PURPOSES, UM, WHEN YOU, YOU HAVEN'T ACQUIRED THE PROPERTY YET, WHO, WHY WERE THE HOMES DEMOLISHED? UH, I'M SORRY, SAY THAT AGAIN.
WHY WERE THE HOMES DEMOLISHED ON THAT? THE PREVIOUS DEVELOPER, UH, TOOK DOWN THE HOMES WITH THE ANTICIPATION OF DEVELOPING THERE, AND THEY'VE CHANGED THEIR BUSINESS PLAN, SO WE WERE ABLE TO BUY IT FROM THE PREVIOUS DEVELOPER.
OKAY, THANK YOU, DIRECTOR TOLEDO AFTERNOON.
VERY IMPRESSIVE, UH, PRESENTATION.
UH, APPRECIATE ALL THE DUE DILIGENCE WENT INTO IT.
I, I HAD A COUPLE OF QUESTIONS.
ONE, ALS TOUCHED ON IT, SO THE HOMES ARE DEMOLISHED.
WHAT I DO LIKE SEEING IS THAT THERE'S A, IF MY MATH IS CORRECT, THERE'S 114 UNITS BASICALLY BELOW $1,500 A MONTH.
I MEAN, THAT'S, THAT'S INJECTING AFFORDABILITY, PRESUMABLY ALL THOSE HOMEOWNERS, YOU KNOW, THAT, YOU KNOW, THAT'S CERTAINLY A, A PLACE FOR THEM TO, FOR THEM TO LIVE.
UM, ON YOUR, ON YOUR, ON YOUR MONTHLY RENT, ARE YOU BASING THIS ON 20:22 AM I OR WHAT'S PROJECTED NEXT YEAR BECAUSE IT'S, OR MAYBE, MAYBE IT'S ALREADY THERE.
DO THESE REFLECT THOSE A M NUMBERS OR WERE THESE NUMBERS, YOU KNOW, THREE MONTHS OLD, WHICH THEY PROBABLY WERE WHEN YOU SUBMITTED THIS? UH, I, I BELIEVE WE USED THE, UH, NOVO CALCULATOR THERE THAT I THINK THIS IS FRESH AS OF THE END OF APRIL, I WANNA SAY.
UM, AND SO IT'S BASED ON THOSE NUMBERS.
WELL, THE, THE, THERE MIGHT BE MORE RENT COMING YOUR WAY.
SO THAT'S A, THAT'S A GOOD PROBLEM TO HAVE AND, AND, UH, I THINK IT CAUGHT A LOT OF PEOPLE BY SURPRISE, YOU KNOW, THAT AAMI WENT TO THAT, WENT TO THAT LEVEL THAT QUICKLY.
UM, AND THAT, I, I, YOU KNOW, IN YOUR, IN YOUR PRESENTATION, TWO, TWO THINGS THAT JUMPED OUT AT ME THAT IS THAT YOU, YOU MENTIONED YOUR INTERACTION WITH, WITH COUNCILMAN WEST, AND YOU MENTIONED YOUR INTERACTION WITH, UM, COMMISSIONER POPKIN.
I KNOW HOW PASSIONATE BOTH OF THEM ARE ABOUT THAT.
SO THAT, YOU KNOW, THAT GIVES ME A LOT OF, OF, OF, OF, YOU KNOW, A COMFORT LEVEL, YOU KNOW, IN THAT SENSE, EVEN THOUGH WE'RE ONLY TALKING ABOUT FINANCING AND, AND TAXATION HERE.
BUT, UH, I DO APPRECIATE YOU TAKING THOSE STEPS, UM, BEFORE PRESENTING TO US.
I, I MEAN, OUR GOAL WITH THIS IS SOMETHING THAT THE WHOLE NEIGHBORHOOD'S PROUD OF RIGHT.
UM, YOU KNOW, WE WANT THIS TO VIEW AS THE WHOLE NEIGHBORHOOD WINS, AND IT'S A GREAT LONG-TERM INVESTMENT.
UH, HI, SCOTT HANSEL, I'M THE, THE REPRESENTATIVE FROM DISTRICT ONE.
UM, AND I THINK IT'S A GOOD PROJECT.
UH, I'M JUST, JUST NOT NECESSARILY ISSUES, UH, THAT ARE NORMALLY IN FRONT.
I WAS CURIOUS AS TO WHERE THE INGRESS AND EGRESS POINTS ARE, IF THEY'RE GONNA BE ON EIGHTH STREET, OR ARE THEY GONNA BE ON THE SIDE STREETS? I HAVEN'T SEEN, I DIDN'T REALLY SEE A FOOTPRINT OF WHAT THE, THE BUILDING LAYOUT WOULD BE.
THE PRIMARY WILL BE, UH, IT'LL BE OFF OF THE ALLEY, UH, BETWEEN OKAY.
UH, BOTH ON THE NORTH SIDE AND THE SOUTH SIDE, BUT WE'LL ALSO HAVE ACCESS OFF OF, UH, ADAMS ON THE SOUTH SIDE.
I THINK THERE'LL BE ACCESS BOTH OFF OF ADAMS AND THE WELLON.
SO ALONG EIGHTH STREET THEN, DOESN'T SOUND THERE BE ANY CURB CUTS.
WOULD THAT JUST BE THE STANDARD PARALLEL PARKING THAT'S GOING ON TODAY? UH, WE'D ACTUALLY CUT INTO, THERE'D BE 16 RESERVE STREET SPACES THERE.
SO THAT COMING IN THE CURRENT CURB CUPS, MOVING THEM IN.
WE TRIED TO WORK WITH THE TREES TO PRESERVE AS MANY TREES AS POSSIBLE THERE AND THEN CUT IT IN TO PROVIDE SOME PARALLELS.
I I, I GO THROUGH BISHOP PARTS JUST ABOUT EVERY DAY PERSONALLY.
UM, THE ONLY OTHER QUESTION I HAD WAS, UM, JUST, JUST TO BE PERFECTLY CLEAR, UM, NO TIFF FINANCING FOR ANY OF THIS.
UH, NO TIFF HAS BEEN PUT ON THE TABLE TODAY.
UM, AND SO WE'RE NOT ASKING FOR THAT TODAY.
UH, THERE'S A LOT OF, LOT OF OTHER PROJECTS, UH, IN THAT AREA.
UM, AND I DON'T KNOW EXACTLY WHAT THE SAME MATH NUMBERS ARE THAT THE DIRECTOR MONTGOMERY BROUGHT UP, UH, FOR THE LAST PROJECT.
I LITTLE CURIOUS AS WHAT THEY MIGHT BE HERE, CUZ UH, THOSE 60 HOMES PROBABLY GENERATED MORE THAN, YOU KNOW, $1,500, UH, IN TAX REVENUE.
UM, AND SO THERE, THERE WOULD BE THAT LOSS TO THE AREA AND, AND CAN NEGATIVELY IMPACT, UH, THE TIFF THAT WAY, UH, FOR FUTURE DEVELOPMENT
[00:30:01]
PROJECTS.DO YOU HAPPEN TO KNOW THE, UM, WHAT THE TAX BENEFITS WERE OR THE TAX PROCEEDS WERE FOR THIS TWO SIDES OF THE STREET? I DON'T HAVE THAT OFFHAND, BUT WE COULD PULL IT REAL QUICK.
WELL THEN I'LL, I'LL, I CAN WAIT FOR THAT.
BUT, UH, BUT AGAIN, I, I, I DO THINK, UM, IT'S IMPORTANT NOT TO, UM, MIX THE TIFF MIX TIFF FUNDING WITH, UH, PFC FUNDING.
THAT'S JUST MY PERSONAL STANCE ON THAT CITYWIDE, UH, BUT CERTAINLY, UH, HERE AS WELL.
SO, AGAIN, I, WE, OAK CLIFF'S COME A LONG WAY.
UM, AND I THINK GIVEN THE HISTORY OF THE PROJECT, THE FACT THAT WE CAN DO THE, UH, PORTABLE UNITS HERE, UH, KNOWING THAT THE OTHER PROJECTS PRIOR TO THIS DID NOT.
UH, BUT I THINK IT'S A GREAT ADDITION TO DO THAT AT THIS POINT IN TIME.
WE HAVE ANY OTHER COMMENTS? DIRECTOR, DIRECTOR MONTGOMERY KNOW WHERE THIS IS HEADED? UM, SO ACCORDING TO THE DALLAS CENTRAL APPRAISAL DISTRICT, I HAVE, UM, 5 0 5 8 AT $8,822, UM, TO THE CITY OF DALLAS.
AND IT LOOKS LIKE FIVE 10 AS ONE PARCEL, UM, HAS $12,823, UM, AND TAXES TO THE CITY OF DALLAS ANNUALLY.
SO THAT PUTS US AT ABOUT, LET'S CALL IT 21,500, GIVE OR TAKE.
UM, AND COULD, UH, DO EITHER ONE OF, YOU KNOW, OFF THE TOP OF YOUR HEAD WHAT THE, UM, UM, STRUCTURING PAYMENT IS AT ORIGINATION? WELL BELIEVE IT'S A THOUSAND UNITS AT $232,000.
YEAH, SO THAT'S ROUGHLY, UM, I'M NOT A, A MATH SCHOLAR, BUT THAT'S ABOUT 10 TIMES THE CURRENT REVENUE, UM, BY MY NUMBERS.
AND THEN THE ANNUAL LEASE PAYMENT, UM, IS TO 24.
DID I SEE THAT CORRECTLY? CORRECT.
SO, UM, WE'RE GOING FROM, UM, ANNUAL TAX PAYMENTS TO THE CITY OF AROUND, UM, UM, 21, 20 $2,000 TO, UM, 10 TIMES THAT AS A PFC PAYMENT.
RECORD MCGRAW AND THIS ON PERSON NOTE.
I APPRECIATE YOU POINTING THAT OUT BECAUSE A LOT OF TIMES AT THE PFC PEOPLE SEE THAT WE'RE GIVING IN PUBLIC, THEY SEE THAT WE'RE GIVING A TAX ABATEMENT, THEY DON'T SEE THE FULL SCOPE THAT WE'RE ACTUALLY MAKING FOR THE CITY OF DALLAS, YOU KNOW, 10 TIMES THAT AMOUNT BY PUTTING IN THIS DEVELOPMENT.
SO I APPRECIATE YOU BRINGING THAT UP.
DO WE HAVE ANY OTHER COMMENTS OR QUESTIONS FROM ONLINE AS WELL? SEEING NONE, DO WE HAVE A MOTION? WE APPROVE.
WE HAVE A MOTION BY DIRECTOR HANSEL TO APPROVE.
DO WE HAVE A SECOND? A SECOND.
SECOND BY DIRECTOR TOLEDO, LET'S MOVE FORWARD TO VOTE, PLEASE.
WHEN I CALL YOUR NAME, PLEASE STATE YOUR VOTE.
ITEM PASSES WITH UN UNANIMOUS VOTE.
THANK MOVING ON ITEM NUMBER SEVEN, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET FOR COMBS CREEK ALTA VISTA, IN PARTNERSHIP WITH THE MARSHA GROUP, L L C, TO BE LOCATED AT 3,400 WEST ILLINOIS AVENUE, DALLAS, TEXAS.
AARON? YES, WE HAVE, UH, RAUL AND MARIA ESTRADA HERE TO PRESENT TO US THEIR PROJECT.
UM, OR GOOD AFTERNOON, I'M SORRY.
UH, I WANTED TO INTRODUCE MY DAUGHTER AND JUST TELL YOU A LITTLE BIT ABOUT OUR COMPANY.
SHE'S GONNA, UH, GIVE THE PRESENTATION, BUT, UH, WE'RE A LOCAL COMPANY.
UH, MARRA CONSTRUCTION IS, UH, STARTED ABOUT SEVEN YEARS AGO, THE MARTER HOMES PART OF IT.
AND WE STARTED WITH, UH, AN IDEA WE'D HAD PLENTY OF EXPERIENCE IN COMMERCIAL REAL ESTATE AND, AND, UH, DEVELOPING AND BUILDING OFFICE BUILDINGS, UH, SHOPPING CENTERS AND SUCH.
BUT WE WANTED TO GET INTO THE, UH, THE LOW INCOME HOUSING.
AND I WANTED YOU TO KNOW THAT THAT WAS, UH, AS YOU'LL SEE IN OUR PRESENTATION, A LOT OF THE, THE AMENITIES AND THE, AND THE PROGRAMMING THAT WE HAVE IN OUR UNITS KIND
[00:35:01]
OF REFLECTS THAT, UH, WHERE WE'RE COMING FROM.I, UH, I STARTED THIS WITH ONE OF MY, UH, SONS, UH, ALEJANDRO, WHO'S HERE IN THE AUDIENCE WITH US.
AND HE, UH, HE WANTED TO BUILD HOMES AND, UH, WE STRESSED TO HIM THAT THE BUILDING THE HOMES WAS A GOOD BUSINESS, BUT WE WANTED TO HAVE A SOCIAL IMPACT AS WELL.
SO THERE WAS NO REASON THAT THOSE TWO THINGS COULDN'T BE MUTUALLY EXCLUSIVE.
WE WORKED IN THE CITY PROVIDING LOW INCOME HOUSING, AND WE THINK THIS IS AN, A GOOD NEXT STEP FOR US.
AND I'LL LET MARIELLA TAKE OVER ON THE, UH, IF YOU COULD GO TO THE, SORRY, NEXT SLIDE.
AND MARIA ESTRADA IS MY DAUGHTER.
WE HAVE, UH, UH, THE FOUR OF US RUN THE, THE BUSINESS.
SO I'M, I'M VERY, UH, GRATEFUL AND, AND HONORED TO BE ABLE TO WORK WITH MY CHILDREN ON THIS DEAL.
UM, THIS SLIDE RIGHT HERE, WE HAVE A LITTLE BIT OF OUR EXPERIENCE.
UM, THIS IS GONNA BE OUR FIRST MULTIFAMILY PROJECT.
SO WE WANTED TO REALLY STRESS THE FACT THAT WE HAVE AN ABUNDANCE OF EXPERIENCE IN RETAIL, UM, OFFICE AND EDUCATIONAL DEVELOPMENT AS WELL.
UM, THESE ARE SOME OF THE PROJECTS THAT WE'VE BEEN INVOLVED IN.
UM, UH, WE'VE ALSO BEEN INVOLVED IN THE DEVELOPMENT OF VARIOUS SCHOOLS IN LOW INCOME AREAS, INCLUDING THE CRITO RE MODEL.
I DON'T KNOW IF YOU'RE FAMILIAR WITH THAT.
UM, OUR LADY OF PERPETUAL HEALTH SCHOOLS AND, UM, VARIOUS COMMUNITY ORGANIZATIONS THAT SERVE THESE AREAS AS WELL, LIKE COMMUNITY DOES IT.
UM, WE HAVE A DEVELOPED RETAIL CENTERS OFFICE BUILDINGS.
UH, WE WORKED WITH THE CITY OF DALLAS TO DEVELOP PROBATION OFFICES, UM, DALLAS INSPECTION OFFICES AND WITH THE COUNTY TO PROVIDE IMMUNIZATION CLINICS AS WELL.
UM, WE'VE ALSO WORKED WITH MR. NORA AND HIS TEAM ON, UH, LAND BANK AND LAND TRANSFER PROGRAM.
UM, AND RIGHT NOW WE'RE WORKING WITH THE OFFICE OF ECONOMIC DEVELOPMENT TO DEVELOP THE I C D P PROJECT.
UM, WE'VE BEEN NAMED CO-DEVELOPERS OF THIS, AND WE, IT'S LOCATED IN PLEASANT GROVE.
UM, WE'LL BE RESPONSIBLE FOR THE HOUSING PORTION OF THIS SITE, UM, WITH 40 TOWN HOME UNITS AND 150 UNIT APARTMENT COMPLEX.
WANTED TO GIVE A BACKGROUND OF THE AREA WHERE, WHERE WE'LL BE DEVELOPING.
UM, IT'S LOCATED OFF ILLINOIS AVENUE AND WESTMORELAND.
UM, IT'S THE 75 2 11 ZIP CODE.
UM, THE PRIMARY DEMOGRAPHIC IN THAT AREA IS A HISPANIC, UH, POPULATION.
UM, AND JUST LOOKING AT THE NEED FOR RENTAL HOUSING IN THE AREA WITH, UH, RISING INTEREST RATES, WE REALLY SEE THE NEED FOR HOUSING OF THIS TYPE IN THAT AREA.
UM, IN THE FORESEEABLE FUTURE, UM, WE'VE, UH, DESIGNATED SPECIAL PROGRAMMING IN THE AREA AS WELL.
UM, THE, THE MEAN, UM, INCOME IN THAT AREA IS ABOUT 53,000.
SO WE SEE PEOPLE SPENDING ABOUT 1,400 OR 1,600 IN RENT MONTHLY.
UM, AND WE THINK THAT ALL OF OUR UNITS REALLY HIT THESE, THESE SWEET SPOTS.
UM, THE PROGRAMMING THAT WE HAVE, UM, SCHEDULED IN OUR UNITS, UH, IN OUR COMPLEX, SORRY, WILL BE, UM, WE'LL HAVE FINANCIAL ASSISTANCE AND INFORMATION MEETINGS.
WE'VE, UM, TEAMED UP WITH CATHOLIC CHARITIES, DALLAS, AND THEIR NEXT WEALTH, UH, ACADEMY TO PROVIDE PROGRAMMING FOR RESIDENTS THAT WILL BE LIVING IN THE COMPLEX TO HELP WITH FINANCIAL COACHING, HUD COUNSELING, UM, AND EMPLOYMENT SERVICES.
AND THEN EVEN BEYOND THAT, MARSA WILL BE HOLDING, UH, INFORMATION SESSIONS WITH OUR OWN LOW INCOME HOUSING OPTIONS SO THAT IF, UH, RESIDENTS ARE WANTING TO TRANSITION INTO HOME OWNERSHIP, WE'LL BE ABLE TO HELP THEM WITH THAT AS WELL.
UM, WE'LL BE OFFERING, UH, PUBLIC TRANSPORTATION COORDINATION.
OUR SITE IS LOCATED, UH, NEAR THE WESTMORELAND DART STATION AND THERE IS CURRENTLY A RAILROAD EASEMENT, UH, IN THE BACK OF OUR SITE THAT WE HOPE WILL BE ABLE TO, UH, WORK WITH THE CITY TO MAKE A SORT OF WALKING TRAIL SO THAT RESIDENTS WILL HAVE EASY ACCESS TO THE WESTMORELAND DART STATION FROM THE COMPLEX ITSELF.
UM, WILL HAVE HEALTH HEALTHCARE COORDINATION.
RIGHT NOW THE DEMOGRAPHIC SHOWS THAT AT LEAST 30% OF PEOPLE LIVING IN THIS AREA DO NOT HAVE HEALTH INSURANCE.
SO WE'LL BE TEAMING UP WITH, UM, ST.
PAUL'S MEDICAL CLINIC AND LBU TO PROVIDE INFORMATION SESSIONS AT OUR COMPLEX FOR, FOR RESIDENTS AS WELL.
UM, CHILDCARE SUPPORT, WE'RE REALLY, UH, EXCITED ABOUT THIS.
UM, THIS, UH, PORTION OF OUR, OUR DEVELOPMENT, WE'RE GOING TO BE, UH, DESIGNATING A UNIT ON SITE.
WE'VE WORKED WITH REAGAN HHOW AND EDUCATIONAL FOUR STEPS TO HAVE A CHILDCARE, UM, UH, FACILITY THAT IT WILL BE AN IN-UNIT FACILITY, UM, ON SITE FOR ALL RESIDENTS TO USE AS WELL.
UM, WE'LL BE ALSO HAVING COUNSELING SERVICE COORDINATION, UM, WITH, UH, COMMUNITY.
AND, UH, CATHOLIC CHARITIES DALLAS, WE'LL HAVE PROGRAMMING THAT'LL BE USED FOR THE RESIDENTS AS WELL.
UM, AND REALLY WE JUST WANNA WORK AS AN INFORMATION SOURCE FOR OUR RESIDENTS AND MAKE SURE THAT THEY HAVE THE BEST QUALITY OF LIFE POSSIBLE.
UM, HERE WE HAVE A MAP OF THE DEVELOPMENT WITH HIGHLIGHTED, UH, COMMUNITY AMENITIES, WHICH I, THIS IS A SLIDE THAT WE'RE ON NOW.
UM, IT'S LOCATED, LIKE I SAID, AT 3,400 WEST ILLINOIS.
[00:40:01]
SOUTHWEST OF THE INTERSECTION OF WEST ILLINOIS AND SOUTHWEST MORELAND ROAD.UM, WE'RE SURROUNDED PRIMARILY BY COMMUNITY RETAIL AND LIGHT INDUSTRIAL ZONING, UH, AND AS WELL AS MULTI-FAMILY TO NORTH.
AND THERE IS SOME RESIDENTIAL TO THE NORTHEAST AS WELL.
UM, I THINK ONE OF THE MAIN PARTS OF THE DEVELOPMENT THAT IS EXCITING FOR US IS THAT IT'S LOCATED ADJACENT TO THE SIERRA VISTA RETAIL CENTER.
SO RESIDENTS ARE WITHIN WALKING DISTANCE OF, UH, GROCERY STORES AND OTHER, UH, COMMUNITY AMENITIES THAT ARE NECESSARY FOR THEM.
UM, THERE'S SEVERAL NOTABLE EMPLOYERS AS WELL.
AS YOU'LL SEE, UM, THERE'S EDUCATIONAL INSTITUTIONS.
WE'RE LOCATED IN CLOSE PROXIMITY TO MOUNTAIN VIEW COLLEGE AS WELL.
UM, THERE'S A DALLAS POLICE SUBSTATION, UM, AND AN ARRAY OF ESSENTIAL RETAILERS THAT WILL BE, UM, HELPFUL FOR THE, THE RESIDENTS OF THE COMMUNITY.
IT'S OWNED, UH, BY MERCER GROUP.
UM, THE LOTS DIRECTLY TO THE NORTH OF OUR SITE WERE DEVELOPED AND SOLD BY MERCER GROUP AS WELL.
UH, I, I PLACED THE SITE PLAN ON THE MAP SO YOU CAN HAVE AN IDEA OF WHERE IT'LL BE LOCATED.
UM, WE'LL HAVE ACCESS DIRECTLY OFF COOMBS CREEK.
UM, AND WE'VE INCLUDED A RANGE OF FLOOR PLANS, INCLUDING 48 STUDIOS, 116, ONE BEDROOM UNITS, 34 2 BEDROOM AND 12 THREE BEDROOM UNITS.
AND THAT'LL BE IN, UH, AN AFFORDABLE MIX OF 50%, UH, MARKET AND 50% AFFORDABLE WITH, UH, UH, 40% BEING AT 80% AMI AND 10% AT 60% AMI.
UM, AND LIKE I MENTIONED, WE'RE VERY EXCITED ABOUT THE POSSIBILITY OF INCLUDING THAT, UH, WALKING TRAIL IN THE SOUTH OF THE, OF THE COMPLEX.
SO THIS WILL BE A, UH, A CLASS, A COMPLEX, AND WE'RE REALLY EXCITED ABOUT BRINGING SOMETHING LIKE THIS, UM, TO THE AREA TO DISTRICT THREE AND THE 7 5 2 11 ZIP, ZIP CODE.
UM, IT'S SOMETHING THAT'S NOT VERY COMMON.
UM, WE'RE WANTING TO INCLUDE EVERYTHING FROM STRUCTURED PARKING, UH, RESORT STYLE WALK-IN POOL, CABANAS CLUBHOUSE, UH, A STATE-OF-THE-ART FITNESS CENTER IN UNIT LAUNDRY, A BUSINESS CENTER, WHICH IS WHERE WE PLAN TO, UH, SCHEDULE THE PROGRAMMING THAT I DESCRIBED EARLIER.
UM, AND JUST REALLY BRING THE BEST OF THE BEST TO THIS AREA OF SOUTHWEST DALLAS THAT HAS BEEN NEGLECTED BY DEVELOPMENTS LIKE THIS IN THE PAST.
SO, STATUS TO DATE, UH, AS I MENTIONED, WE OWN THE LOT.
IT'S BEEN REZONED, SO IT IS MF TWO A.
UH, WE'VE COMPLETED THAT PROCESS AS OF THIS YEAR.
UM, ER WILL BE MANAGING THE COMP, UH, THE PROPERTY.
UM, IN TERMS OF DESIGN, WE HAVE, UH, AN ISSUE FOR, FOR PERMITTING SET COMPLETE AND IN OUR HANDS.
SO WE'LL BE SUBMITTING FOR PERMITTING IN THE COMING MONTH.
AND, UM, WE ARE OBVIOUSLY A MINORITY COMPANY, SO WE ARE EXCITED THAT, UH, WE'LL BE ABLE TO IMPLEMENT AS MUCH AS, UH, AS POSSIBLE OF, OF MINORITY PARTICIPATION IN THE CONSTRUCTION OF THE PROJECT AS WELL.
SO, UM, I'LL OPEN IT UP TO QUESTIONS IF YOU HAVE ANY.
THANK YOU VERY MUCH FOR YOUR PRESENTATION.
UH, QUESTIONS FROM THE BOARD DIRECTOR MONTGOMERY? I'LL GO FIRST.
UM, SO THE OBLIGATORY, UM, TAXES ON THAT PARCEL TO THE CITY OF DALLAS IS $4,541.
AND I REALLY DON'T KNOW THE ANSWER THIS TIME.
UM, WHAT'S THE, UH, STRUCTURING FEE ON 300? IS THAT RIGHT? YES.
UM, SO THIS SITE, UH, IS, UM, THIS IS JUST WEST OF THE, UH, GENESIS DEVELOPMENT, ISN'T IT? THAT, THAT WE SAW? UM, SO I'M, I'M FAMILIAR WITH THE, THE SITE AND, UM, YOU KNOW, ONE OF THE COMMENTS, WE, WE TOURED A RECENT MULTIFAMILY, UM, PROPERTY, UM, THERE.
AND, UM, A LOT OF THE COMMENTS FROM THE GROUP THAT I WAS WITH WAS THAT WE NEED NEW PRODUCT, UH, WE NEED NEW PRODUCT, UH, AT A, UH, UM, AT A 60, 80% AAMI LEVEL.
CAUSE A LOT OF IT IS, UM, A LOT OF THE MULTIFAMILY PRODUCT THAT'S THERE IS IN DIRE NEED OF, UM, RENOVATION AT LEAST, IF NOT JUST STRAIGHT UP NEW LIKE GROUND UP DEVELOPMENT LIKE THIS.
UM, SO TELL ME A LITTLE BIT ABOUT, UH, CAUSE YOU MENTIONED A LOT OF THE, UH, THE SERVICE ASPECTS, AND WHILE I APPRECIATE THAT, UM, THE, THE CONSTRUCTION OF THE MULTIFAMILY IS THE PRIMARY AND THE MANAGEMENT, UH, ULTIMATELY OF THE, UM, OF THE, UH, UH, MULTIFAMILY IS THE, THE PRIMARY GOAL.
UM, AND THE PRIMARY MISSION IN THIS, UM, YOU ALL ARE UBIQUITOUS IN, UH, UM, LOW MODERATE INCOME HOUSING ON THE SINGLE FAMILY SIDE.
UM, TELL ME A LITTLE BIT ABOUT, UM, YOUR MULTI-FAMILY, UM, PROCESS AND, UM, SOME OF THE OTHER PROJECTS THAT YOU'VE BEEN INVOLVED WITH ON THE MULTI-FAMILY SIDE.
[00:45:01]
OF GIVE US AN IDEA OF, UM, LONG-TERM MANAGEMENT OF THE, FIRST OF ALL, CONSTRUCTION OF THE PROPERTY AND LONG-TERM MANAGEMENT OF THE PROPERTY.SO, SO OUR PLAN, UH, GOING INTO THIS IS TO PROVIDE, I THINK WE HAD A MEETING WITH MR. NOGUEDA AND WE SAID WE WANTED TO PROVIDE A FERRARI, UH, FOR, FOR THE AREA.
YOU KNOW, WE WANNA PROVIDE THE BEST POSSIBLE HOUSING OPTIONS, BEST POSSIBLE CONSTRUCTION.
WE, WE INCLUDED STRUCTURED PARKING IN OUR DEVELOPMENT, WHICH IS BASICALLY UNHEARD OF IN THIS AREA.
UM, AND WE JUST WANNA BE ABLE TO PROVIDE THE, THE HIGHEST QUALITY POSSIBLE TO THIS AREA.
UM, WE, LIKE I MENTIONED BEFORE, WE, THIS IS GONNA BE OUR FIRST MULTIFAMILY PROJECT, BUT WE'VE GOT A WEALTH OF ADVISORS HELPING US, UM, FIGURE OUT THE PROCESS AND FIGURE OUT THE BEST STEPS MOVING FORWARD IN HOW TO, TO PROVIDE THIS PRODUCT.
IN TERMS OF HOLDING THE PRODUCT, WE, WE ARE PLANNING TO SELL AT STABILIZATION, WHICH WE ESTIMATE AROUND 27 MONTHS.
UM, AND THAT'S JUST BECAUSE BEING THIS BEING OUR FIRST PROJECT AND THE INTEREST RATES BEING AS THEY ARE NOW, IT, IT SEEMS THE MOST LOGICAL OPTION FOR US NOW.
WE WOULD LOVE TO HOLD AND, UM, AND BE ABLE TO, TO STAY THERE IN THE COMMUNITY.
SO THAT'S ALSO AN OPTION FOR US.
IT JUST DEPENDS ON HOW WE'RE ABLE TO, UM, TO RIDE OUT THE MARKET AND EVERYTHING.
SO I, I LIED, THAT WASN'T MY LAST QUESTION.
THIS ONE MIGHT BE FOR GEM THOUGH, OR, UH, UM, SUMMER IF, UM, EITHER ONE OF THEM ARE ON, JIM'S ON, JIM'S ON.
HEY, JIM, JUST A A QUICK QUESTION ON, UM, ON DISPOSITION.
SO IN A, A STANDARD LEASE, WHAT ARE, UM, WHAT ARE THE PFCS, UM, OPTIONS AND INPUT INTO, UM, UM, A NEW OWNER, A NEW OPERATOR? ESSENTIALLY RIGHT NOW WE HAVE IT SET UP, SO NOT HAVE LEGAL INPUT INTO A NEW OWNER OR OPERATOR.
UM, WE GIVE THEM THE ABILITY TO SELL.
WE DO HAVE A REGULATORY AGREEMENT THAT KEEPS ALL THE INCOME, WHICH IS IN PLACE.
UM, AND ONE OF THE PROVISIONS IN THAT LEASE THAT'S IMPORTANT TO US IS A REQUIREMENT THAT WHEN THEY SELL, THEY MUST GO GET A NEEDS ASSESSMENT DONE EVERY TIME, AND THEY MUST GET ONE DONE EVERY SEVEN YEARS.
AND THEN THEY MUST IMPLEMENT, UH, THE REQUIREMENTS OF THE NEEDS ASSESSMENT TO THE EXTENT THAT THERE IS CASH AVAILABLE AND VIRTUALLY AT ANY SALE PERIOD, THERE SHOULD BE CASH AVAILABLE TO DO THAT.
WE DO NOT TRY TO CONTROL WHO THEY SELL TO.
THANKS TO, I DO HAVE ONE OTHER POINT I WANT TO GO THROUGH AND, AND WELCOME THE BOARD FINISHING THEIR QUESTIONS.
BUT I DO HAVE ONE LEGAL POINT I WANT TO DISCUSS, UH, AT THE END OF YOUR QUESTIONS.
THANK YOU, UH, DIRECTOR TOLEDO AFTERNOON.
UM, APPRECIATE THE PRESENTATION.
UM, A LITTLE BIT OF FAMILIAR FAMILIARITY WITH YOUR WORK.
UH, I KNOW YOU FEE BILLED FOR A LOT OF, UH, UH, LOW MUTTER INCOME HOME BUILDERS AND, AND DO A TERRIFIC JOB.
SO I'M SURE THIS WILL BE, UH, THE SAME IF IT, IF IT PASSES.
I HAD A COUPLE QUESTIONS ABOUT THE, WHAT ABOUT THE COSTS? UM, HOW, HOW, YOU SAY YOU HAVE BID SETS OR YOU HAVE CIVIL PLANS APPROVED.
DO YOU HAVE THE ARCHITECTURAL PLANS FOR BID SETS APPROVED AS WELL? CORRECT.
WE HAVE, UH, ISSUE FOR PERMITTING SET AVAILABLE AND READY TO GO.
AND, AND HAVE YOU, I UNDERSTAND CONTRACTORS WON'T, YOU KNOW, THEY WON'T GUARANTEE BIDS FOR A CERTAIN AMOUNT OF PERIOD OF TIME, RIGHT? WHAT'S THE LATEST, I MEAN, YOU'VE GOTTEN BIDS CURRENT OR YOU GOT BIDS, SO WE'LL BE ACTING AS A GENERAL CON CONTRACTOR MAR YOUR CONSTRUCTION WALL.
BUT DO YOU HAVE A, JUST A, JUST AN IDEA.
YOU KNOW, YOUR SLABS GONNA BE $8 A FOOT, YOUR ROOF'S GONNA BE X FRAMINGS GONNA BE DONE.
WE HAVE, WE HAVE, UH, WE, WE'VE TAKEN THIS AT THE DESIGN DEVELOPMENT PHASE.
WHEN WE WERE READY TO, TO GET PRICING, WE HAD A COMPETITIVE PRICING JUST TO COMPARE.
WE HAD, UH, WE HAD, UH, THE PROJECT LOOKED AT BY ODIN HUGHES AND THEY GAVE US, UH, THE THE CURRENT LEVEL PRICING ON, ON THE APARTMENTS.
AND WE FEEL THAT OUR PRICING IS IN THE RANGE WITH, UH, WITH, UH, WHAT'S AVAILABLE AND WHAT THE MARKET DICTATES AT THIS POINT.
AND SO WOULD AN ODIN HUGHES BE, UH, LIKE A SUB GC TO YOU? OR WE, ARE YOU GONNA ACT MORE OF AN OWNER AND LET THEM BE THE GC OR NO, I MEAN, OUR PLAN IS TO, IS TO BUILD UP MOST OF THIS OURSELVES.
BUT WE'VE DONE SEVERAL PROJECTS WHERE WE'VE, UH, WE'VE, UH, WE'VE TAKEN, UH, MORE EXPERIENCED BUILDERS THAT ARE IN THAT TYPE OF THING AND HAVE SUBBED OUT CERTAIN THINGS TO 'EM.
WE ACT AS A GENERAL, UH, CONTRACTOR.
AND, UH, ONE OF THE PROJECTS WE'VE DONE, UH, SOME OF THE SCHOOLS WE'VE DONE,
[00:50:01]
UH, WE DID, UH, AN ACADEMIC CENTER AND, UH, AND, UH, ENTERPRISE CENTER FOR, UH, CRYSTAL RAY.WE PARTNERED UP WITH, UH, UH, HILL AND WILKINSON ON ONE OF 'EM, AND GEORGE ON ANOTHER ONE.
AND, UH, THEY DID THE, THE CIVIL WORK, THE FOUNDATION, AND WE DID ALL THE FINISH OUT WORK, WHICH IS SOMETHING WE WERE MORE COMFORTABLE WITH, AND IT WAS MORE WITHIN OUR SCOPE ON A PROJECT OF THIS SIZE.
THAT'S, THAT'S, THAT'S THE APPROACH THAT WE'LL TAKE AS WELL.
THANK YOU ALL FOR YOUR PRESENTATION.
I TOO AM, UH, SOMEWHAT AND PRETTY WELL FAMILIAR WITH THE AREA.
UM, MY QUESTION TO BE FIRST QUESTION, SOMEWHAT SIMILAR TO, UM, WHAT I ASKED OF, UM, EARLIER APPLICANTS, AND THAT CONCERNS YOUR UNIT MIX.
UH, THE EARLIER APPLICANT, THEY'LL EVENTUALLY BE, UM, PLACING THEMSELVES IN A PARTICULAR AREA WHERE YOU'VE GOT, UH, A LITTLE NIGHTLIFE, SO TO SPEAK.
SO I UNDERSTAND THE MIX ABOUT, UH, PERHAPS MORE ONE BEDROOM.
SO I USUALLY LIKE TO ASK THIS QUESTION TO UNDERSTAND WHY, ESPECIALLY IF YOU'RE BUILDING FOR FAMILIES AND, UH, UP IN THIS AREA OF ILLINOIS OAK CLIFF, UH, PLENTY OF FAMILIES, UH, OAK, UH, ILLINOIS IS ALSO A VERY, UH, BUSY STREET.
AND, UH, UH, THIS IS A FULL AREA SPEAKING OF FAMILIES.
SO YOU, YOU LIST, UH, 210 UNITS, BUT 116 OF THEM WILL BE ONE BEDROOM.
AND, AND SO THAT IS MY FIRST QUESTION.
IF YOU ARE BUILDING FOR FAMILIES AS YOU STATED, UM, THEN WHY IS THERE A PREPONDERANCE OF, UH, ONE BEDROOM, WHICH I WOULD ASSUME, UH, MOST PEOPLE WHO ARE GOING TO BE APPLYING, UH, WILL HAVE AT LEAST, UH, TWO CHILDREN.
WHAT WE FOUND IS THAT, UH, WE DID, UH, A MARKET RESEARCH AND, AND DID SOME EXTENSIVE RESEARCH, RESEARCH IN THE AREA.
AND WE, UH, WE TRIED TO TAKE OUR, UM, OUR MIX EXACTLY FROM PREVIOUS PROJECTS.
WE ANALYZED AND LOOKED AT PROJECTS THAT THIS BOARD HAD APPROVED AND THAT, THAT HAD COME BEFORE YOU.
AND, UH, AND WE, WE TRIED TO GENERALLY MAKE THAT MIX.
NOW, I, I'LL TELL YOU, I THINK, UH, THAT OUR NUMBERS AS FAR AS, UH, THE TWO BEDROOM AND THREE BEDROOM PROBABLY FAR EXCEED, UH, MOST OF THE PROJECTS THAT COME BEFORE THIS BOARD.
YOU KNOW, WE, UH, WE DO WANT TO HAVE, UH, THE, THE, BUT ONE OF THE THINGS THAT'S IMPORTANT TO US IS WE WANTED TO MAXIMIZE THE NUMBER OF UNITS WE COULD GET IN THE PROJECT AND WANTED TO ALSO MAKE THE AFFORDABILITY COMPONENT, UH, UH, ESSENTIAL.
ONE OF THE THINGS THAT, THAT, UH, WITH WHEN YOU DO, WHEN YOU HAVE TOO MANY THREE BEDROOMS, IT, IT LOWERS THE NUMBER OF UNITS THAT WE CAN HAVE.
I THINK WE'VE GOT A GOOD MIX AND IT'S IMPORTANT FOR US.
NOW, YOU AND I BOTH KNOW, IF YOU'RE FAMILIAR WITH THE AREA, A LOT OF THE, UH, OUR APARTMENTS ARE THE ONE BEDROOM ONES ARE ROOMY.
SOME OF THE FAMILIES THAT ARE, THAT ARE THERE AND THE APARTMENTS THAT WE'RE PROVIDING, UH, WE'RE PROVIDING THESE APARTMENTS FOR A REPLACEMENT, THAT THERE, THERE ARE UNITS THAT ARE RUN DOWN THAT ARE IN, UH, IN DISREPAIR, IN BAD SHAPE IN THE AREA.
SO WE'RE AIMING TO PROVIDE LIKE A, A, A REALLY NICE AND HIGHER QUALITY, UH, AND WITH MORE AMENITIES THAN WHAT'S AVAILABLE THERE.
AND WE'VE TRIED TO, TO DO AS MANY, AS MANY AS WE CAN, BUT WE TRIED TO MODEL OUR UNITS, LIKE I SAID, WITH MIXES OF, OF PROJECTS THAT HAD COME BEFORE US.
WHAT, WHAT WE, WE THOUGHT YOU GUYS WERE THE EXPERTS.
WE WANTED TO FOLLOW SUIT JUST WITH, UH, WITH WHAT'S, UH, JUST TAKE MY CHEST OUT WHILE I SIT UP HERE.
BUT YOU GUYS ARE THE EXPERTS, UH, IN THIS.
BUT THAT IS A CONTINUAL, UH, UH, QUESTION MARK IN MY MIND ABOUT THE, UH, CONCEPT OF THESE THINGS AS TO HOW YOU, UH, SPREAD THAT OUT WITH MORE ONE BEDROOMS WHEN MORE FAMILIES REALLY ARE COMING.
SO I WORRY ABOUT CONGESTION, IF YOU WILL, OVERCROWDING, UH, PEOPLE FORCED TO ACCEPT A ONE BEDROOM AND YOU HAVE 3, 3, 4 KIDS, TWO KIDS, TWO ADULTS, UH, WHATEVER.
UM, NEXT QUESTION IS WHERE WERE YOUR ENTRANCES? I UNDERSTAND THIS IS SUPPOSED TO BE A WRAPPED MM-HMM.
SO YOUR, UM, UH, PARKING WILL BE, UH, WHAT FIRST FLOOR UNDERGROUND, SO TO SPEAK, OR WHAT IT IT'S A GARAGE.
IT'S A GARAGE AND THE ENTRANCE IS OFF OF COOMBS CREEK AND HAS A DEDICATED GARAGE.
AND WE'VE MADE SURE THAT, UH, THAT WE'RE ABLE TO SECURE THE PROPERTY.
SO IT WOULD BE A GATED ENTRANCE ON THE SIDE.
WE ALSO HAVE A COMMON ENTRANCE OFF OF COOMBS CREEK AS WELL, THAT WOULD COME UP TO OUR LEASING OFFICE AND, UH, SOME OF THE AMENITIES AND THE DELIVERY AREAS THAT WE HAVE.
SO THERE'S TWO DIFFERENT ENTRANCES AND, UH,
[00:55:01]
WE FEEL THAT WE, WE, UH, WE MADE IT WITH THE IDEA THAT WE COULD SECURE THE PROPERTY AS WELL.BOTH ENTRANCES WILL BE OFF OF, UH, C***S.
UH, YOU WON'T NEED ANY STREET PARKING.
UH, YOU WON'T NEED TO MAKE ANY, UH, UH, ANY CHANGES THERE ON THE STREETS SUCH AS LIKE, UH, DE SALE LANE, DECELERATION LANES, SIR, ANYTHING LIKE THAT, SIR? AND, AND WE WEREN'T, UH, WE DIDN'T HAVE TO AVAIL OURSELVES OF ANY KIND OF, UH, BONUSES FOR PARKING.
PART OF THE REASON THAT WE, UH, DID THE PARKING GARAGE WAS TO PROVIDE, UH, ADEQUATE PARKING.
WE DIDN'T WANT TO HAVE A, AN APARTMENT THAT WAS CLUTTERED AND, AND FULL.
HANSEL? UH, REAL QUICK, UM, THERE'S, IS THE SITE UNDEVELOPED RIGHT NOW? YES, IT'S A VACANT LOT.
SO C***S CREEK BEING THE STREET THAT'S ON THE, ON THE WEST SIDE OF THE PROJECT, RIGHT? THAT'S CORRECT, CORRECT.
SO, YEAH, I COULDN'T TELL JUST FROM THE SITE, MA'AM, BUT IT SEEMED LIKE SOME OF THE TRAFFIC HAD TO LOOP ITS WAY TO COME IN FROM THE NORTH, BUT IT'S GONNA, THE ACCESS WILL BE OFF THE COOMBS STREET.
ANY OTHER COMMENTS FROM HERE OR ONLINE? PRESIDENT? I HAD ONE QUESTION.
UM, I, I, I DID HAVE ONE QUESTION ABOUT, UM, UH, COMMUNITY OUTREACH.
UM, DISTRICT THREE AS YOU KNOW, RECENTLY HAD AN ELECTION, NEW, NEW LEADER.
IT'S IN DISTRICT THREE, CORRECT? SO NEW LEADERSHIP, UH, EX PLAN COMMISSIONERS SITTING HERE.
HAVE YOU REACHED OUT? DO THEY KNOW THAT THERE'S AN AFFORDABILITY COMPONENT COMING? IF YOU CAN SHARE YOUR EXPERIENCES? ABSOLUTELY.
WITH THE COMMUNITY, WE HAD, UH, WE HAD, UH, GONE TO COUNCILMAN CASEY THOMAS WHEN HE WAS STILL IN OFFICE AND, AND DISCUSSED THIS PROJECT AT LENGTH WITH HIM AND BOTH HIS PLANNING COMMISSIONER.
IN FACT, WE TOOK A LOT OF OUR DESIGN, UH, UH, CRITERIA FROM THE MEETING WE HAD WITH THE, THE COMMISSIONER, THE PLAN COMMISSIONER.
AND WE HAVE, UH, REACHED OUT TO MR. GRACIE AS WELL.
AND, UH, AND, AND HE KNOWS ABOUT THE PROJECT AND IS FAMILIAR, MR. THOMAS WAS SURE TO, UH, ASSURED US THAT HE BROUGHT HIM UP TO SPEED.
AND WE CAN CONFIRM THAT WITH MR. GRACIE.
AND HE IS SUPPORTIVE OF OUR, UH, OF OUR PLAN.
AND WITHOUT ANY OTHER COMMENTS, I BELIEVE, UM, JIM, JIM PLUMMER WANTED TO MAKE ANOTHER COMMENT.
UM, I NEED, I NEED A LITTLE GUIDANCE.
UM, FIRST I WANT THANK THE RCER GROUP.
IF YOU LOOKED AT THEIR APPLICATION AND THEN YOU LOOKED AT THE TERM SHEET THAT'S INCLUDED IN YOUR PACKET, YOU WILL SEE THAT THEY HAVE COME A VERY LONG WAY, UH, TO BASICALLY GIVE US OUR STANDARD TERMS. UM, AND I'M APPRECIATIVE OF THAT.
UM, THERE IS ONE VISION, UM, THAT THEY HAVE REQUESTED THAT I ASK YOU ABOUT.
AND SO I TOLD THEM THAT I WOULD, UM, IN A, IN OUR TYPICAL STRUCTURE, WE RECEIVE 15% OF THE FIRST SALE PROCEEDS AFTER THE REPAYMENT OF DEBT AND EQUITY.
WE ALSO RECEIVE 2% OF SUBSEQUENT SALES EVERY SALE DURING THE TERM OF OUR OWNERSHIP.
THEY HAVE ASKED IF WE WOULD CHANGE THAT FORMULA TO BE 2% OF GROSS SALES, LESS ANTICIPATED CAPITAL EXPENDITURES TO BE MADE TO REHABILITATE THE PROJECT.
SO IF 30 YEARS FROM NOW, UM, SOMEBODY INTENDS TO SPEND 30 MILLION REDOING THIS PROJECT, THEN THAT 2% SHARE THAT WE WOULD GET WOULD BE DECREASED, UM, BY 2% OF THE 30 MILLION.
UM, I WOULD RECOMMEND THAT WE NOT MAKE THIS CHANGE.
THE SOLE REASON I WOULD MAKE THAT RECOMMENDATION IS CUZ EVERY TIME WE PERMIT AN EXCEPTION, EVERY SINGLE DEAL WE SEE AFTER THAT HAS THAT EXCEPTION, AND WE HAVE DONE MANY DEALS AND NEVER HAD TO INCLUDE THAT.
AND SO I DO NOT WANT TO CHANGE OUR FORM UNLESS THIS BOARD CONSIDERS IT, APPROVES IT.
SPECIFICALLY, I WILL NOTE THE VISION THAT I DISCUSSED A MINUTE AGO IS IN THIS DOCUMENT WHERE THEY HAVE TO DO THE NEEDS ASSESSMENTS AND THEY HAVE TO IMPLEMENT THE NEEDS ASSESSMENTS, UM, AT EVERY SALE OR EVERY SEVEN YEARS.
UM, I WILL TELL YOU THIS IS NOT A MAJOR, MAJOR NUMBER
[01:00:01]
BECAUSE 2% OF 30 MILLION IS NOT A BIG NUMBER.UM, BUT I DID NOT WANT TO CONSENT TO A CHANGE IN OUR FORM, UH, WITHOUT GETTING THE BOARDS AT HAND.
JIM, DO WE HAVE A MOTION FROM THE FLOOR? UM, I MOVE THAT WE APPROVE THE RESOLUTION AS PRESENTED, UH, WITHOUT ANY AMENDMENTS.
DO WE HAVE A SECOND? SO DID, DID, UM, THE DIRECTOR TELL US, DID YOU SAY WITHOUT, UH, THE CHANGES WITHOUT MAKING ANY CHANGES? YEAH.
SO YOU WOULD BE FOLLOWING MY RECOMMENDATION TO NOT INCLUDE THE REDUCTION FOR CAPITAL EXPENDITURES? CORRECT.
AND JUST, JUST TO CLARIFY, YOUR MOTION INCLUDES WHAT OUR COUNCIL, JIM PLUMMER HAS STATED? ABSOLUTELY.
MOTION IS SECOND HAS BEEN MADE.
PLEASE WANNA CALL YOUR NAME, PLEASE.
WINTERS APPROVE DIRECTOR AL APPROVED.
MOVING ON TO ITEM EIGHT, REVIEW AND DISCUSSION OF THE DALLAS PSC PIPELINE REPORT.
AARON, THANK YOU PRESIDENT PALM MCCALL.
UM, SO AT OUR MEETING, THE, UH, THE MONTH IT WAS, UH, EXPRESSED TO US THAT WE WANTED TO HAVE KIND OF, UH, JUST A STANDING UPDATE ON OUR PIPELINE ON ALL OUR PROJECTS.
AND IT'S, IT'S BEEN DISCUSSED THAT, UH, YOU KNOW, WE DON'T KNOW WHEN THEY'RE CLOSING OR, OR WHAT'S THE STATUS.
SO THIS IS AN ATTEMPT TO KIND OF COVER ALL THOSE, ALL THOSE QUESTIONS, UH, QUICKLY HERE AT THE END OF THIS MEETING, UM, YOU GUYS WERE DISTRIBUTED, UH, COPY OF THIS.
I DON'T KNOW IF IT'S VERY READABLE ON THAT, BUT, UM, I, I CAN JUST GO THROUGH IT QUICKLY HERE.
UM, WE HAVE THREE CLOSED THAT ARE UNDER CONSTRUCTION RIGHT NOW.
THE L D G, UM, THE STANDARD AT ROYAL, THE OAK HOUSE AT COLORADO FROM MIDWOOD AND THE MOUNTAIN CREEK APARTMENTS WITH N R P.
SO THOSE ARE GOING, UM, QUITE WELL WITH CONSTRUCTION.
UM, GOING ON TO THE ONES WE'VE APPROVED, UM, STARTING WITH THE STANDARD SHORELINE, UM, THAT ONE IS AWAITING PERMITS.
IT'S, IT'S ESTIMATED TO CLOSE IN SEPTEMBER, SO RIGHT AWAY HERE.
UM, AND THEN THEY SHOULD START CONSTRUCTION RIGHT AFTER CLOSING ON, ON THAT, THE RESERVE AT LANCASTER.
UM, THEY'RE ALSO AWAITING PERMITS FROM THE CITY THAT'S ESTIMATED TO BE IN FEBRUARY, UM, THAT THEY WILL START CONSTRUCTION THERE.
FLATS AT WHITE ROCK, THAT'S ANOTHER ONE FROM L D G THAT IS ESTIMATED IN MARCH.
UM, JUST KIND OF A, AS AN ASIDE, UM, THEY DON'T WANT TO CLOSE BEFORE THEY GET THIS PERMITTING PROCESS PRETTY FAR THROUGH BECAUSE THEY DON'T WANT TO HAVE THIS FINANCING OUTSTANDING.
HAVING TO PAY INTEREST AND NOT BEING ABLE TO, TO MOVE ANY DIRT IF, IF THAT MAKES SENSE.
SO WHEN WE DO RUN INTO THESE, THESE DELAYS, CUZ PERMITTING, THAT'S KIND OF WHAT'S HAPPENING THERE.
UM, I THINK CURRENTLY, UH, ON MY CONVERSATION WITH DEVELOPERS, THEY'RE SAYING IT'S UP, YOU KNOW, SIX TO 10 MONTHS THAT SOMETIMES PERMITTING TAKES.
THESE ARE QUITE LARGE PROJECTS AND SO DALLAS IS A QUITE LARGE CITY, SO IT, IT'S JUST THE NATURE OF THE BEAST RIGHT NOW.
SO I THINK EVERYBODY'S TRYING TO, TO IMPROVE THAT.
BUT UM, THAT'S JUST WHAT WE'RE FACING RIGHT NOW IN THE, UH, IN THE WORLD HERE.
UM, OUR SINGLETON HIGHLINE PROJECT, THAT ONE IS ACTUALLY PERMITTED, READY TO GO.
UM, WE'RE JUST AWAITING CLOSING DOCUMENTS
[01:05:01]
HERE, SO IN THE NEXT MONTH OR TWO WE SHOULD BE, UH, GOING ON THAT ONE.UM, WE HAVE THE LARKSBURG FAIR PARK DEAL THAT WAS APPROVED A FEW MONTHS AGO THAT SHOULD BE CLOSING IN SEPTEMBER.
UM, MOVING ON TO PARK AT NORTH POINT.
UM, SO THERE'S A LITTLE FURTHER OUT ON THAT ONE.
UM, ALSO THE BLUFF VIEW HIGHLINE, THAT ONE IS READY TO GO AS WELL.
WE'RE JUST AWAITING CLOSING DOCUMENTS.
SEE, WE SHOULD BE STARTING HERE IN THE NEXT MONTH OR TWO.
UM, THEY'RE ALSO AWAITING PERMITTING.
THEY, THEY'RE ALMOST READY TO GO HERE IN JANUARY.
THEY SHOULD, THEY SHOULD BREAK GROUND.
MOVING ON TO THE ELMS PROJECT THAT WAS JUST APPROVED, THAT ONE WAS A LITTLE FURTHER ON BEFORE IT EVEN CAME TO US.
SO THEY'RE GETTING READY TO START CONSTRUCTION AS WELL.
UM, SO ESTIMATED TO BE ABOUT AUGUST THAT THEY'LL, THEY'LL BE GOING ON THAT ONE.
UM, AND THEN THE STANDARD WEST COMMERCE STILL, THEY HAD SOME ENVIRONMENTAL ISSUES, UM, SIMILAR TO WHAT YOU WERE ASKING, DIRECTOR STINSON, THEY HAD THOSE ALL, UM, SUBMITTED TO T C E Q.
THAT'S THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY, AND THEY'RE AWAITING THE CLEARANCE FROM THEM SO THAT THEY CAN, UH, GO AHEAD AND START CONSTRUCTION THERE.
MOVING DOWN TO OUR BISHOP BRIDGE PROJECT WITH SAVOY, I THINK THEY'RE ESTIMATING DECEMBER CLOSING HERE.
UM, AND THEN WE JUST HAVE THESE PROJECTS THAT WE HAVE GONE THROUGH TODAY.
SO ANY QUESTIONS I CAN, I CAN HELP YOU GUYS OUT IF I CAN.
THE, UH, CHANGE FROM THE TWO TIMES YOU SENT IT WAS THE REMOVAL OF THE, THE OAK FARMS PROJECT IS RIGHT.
SO THE, IS THERE ANYTHING THAT YOU CAN SHARE AS TO THE, THAT DECISION? UM, ALL THAT I HAD HEARD FROM THE DEVELOPER WAS THAT THERE WAS, UH, ISSUES WITH THE PURCHASE CONTRACT AND THE SELLER.
UM, I MEAN, THESE THINGS HAPPEN IN REAL ESTATE, SO IT MAY OR MAY NOT COME BACK TO US, BUT, UM, I'LL LET YOU GUYS KNOW.
AND ALONG THOSE LINES, AARON, UM, JUST, UM, PROJECTS THAT, UM, HAVE BEEN WITHDRAWN OR FOR WHATEVER REASON, UM, AREN'T GOING TO CLOSE.
COULD YOU KIND OF GIVE US A SNAPSHOT OF THAT? YEAH, SO CURRENTLY THE BANYAN PROJECTS, UM, ONE OF 'EM IS JUST KIND OF STALLED WITH SOME PUBLIC INPUT.
THERE'S ANOTHER ONE THAT THEY SAY IS GOING TO BE READY TO GO FOR NEXT MONTH.
SO WE SHOULD BE GETTING MORE INFORMATION ON THAT.
UM, I JUST COMMUNICATED WITH THEM THIS MORNING.
UM, AND THEN, LIKE I SAID, THE, THE OAK FARMS PROJECT WAS WITH WITHDRAWN, SO I'M NOT SURE IF WE'RE GONNA SEE THAT AGAIN.
UH, I'M ALSO THINKING OF THE JPI PROJECT AT UNIVERSITY HILLS IN CAMP WISDOM, THAT ONE'S, THAT'S OFF THE, THAT'S DONE.
AND THOSE ARE THE, THOSE ARE THE KIND I, SO HERE SOME MORE CONTEXT.
UM, AND, UH, I'M CONCERNED ABOUT PROJECTS THAT COME TO US, GET APPROVAL, AND WE'RE JUST AN OPTION, UM, FOR FINANCING.
UM, AND SO I'D LIKE TO GET A HANDLE ON HOW OFTEN THAT HAPPENS.
CUZ IF IT'S JUST JPI AT ONE TIME, THEN OKAY, WHATEVER.
BUT IF IT'S CONSISTENT, IF IT'S ONE OUT EVERY FOUR, ONE OUT, EVERY FIVE, I THINK WE, WE NEED TO BE PURPOSE, PURPOSEFUL, AND INTENTIONAL ABOUT HOW WE ADDRESS IT, BECAUSE THAT'S NOT, THAT'S NOT THE APPROPRIATE USE OF THIS BODY.
YEAH, I THINK THAT ONE, SOMETHING FELL OUT LA LATE OR EVEN EARLY LAST YEAR.
I, I DON'T THINK THAT THEY'D CONTEMPLATED BRINGING THAT BACK.
UM, BUT THAT BEING SAID, WE'LL, WE'LL DEFINITELY CONSIDER THAT, UM, FOR EVERYTHING GOING FORWARD.
BUT AS FAR AS I KNOW, THAT'S PROBABLY THE ONLY ONE THAT'S KIND OF GOTTEN APPROVAL AND THEN JUST KIND OF FALLEN OFF.
ANY OTHER QUESTIONS OR COMMENTS FROM THE REVIEW? UH, UH, THANK YOU VERY MUCH, AARON.
UH, ONCE AGAIN, I'D LIKE TO STATE, UH, THANK YOU FOR EVERYONE WHO ATTENDED OUR, UH, RETREAT ON JUNE 3RD.
I REALLY APPRECIATE, UH, THE STAFF, THE BOARD MEMBERS THAT ATTENDED, AND OUR CONSULTANTS AT BRACEWELL, UH, JIM PLUMMER, AND, UH, SUMMER.
WE'RE VERY GOOD AS YOU, AS YOU ARE TODAY, GIVING US, UH, VERY SOUND COUNSEL AND, UH, ON, I REALLY APPRECIATE THAT ON BEHALF OF THE BOARD.
I THINK IT WAS, UH, REALLY GOOD FOR ALL OF US TO GET TOGETHER AT ANOTHER VENUE AND, UH, DISCUSS WHAT'S HAPPENING AND JUST, UM, BETTER OURSELVES AS, UH, VOLUNTEERS HERE FOR THE CITY.
AND, UH, MOVE ON TO ITEM NUMBER NINE.
DO WE HAVE A MOTION? A SHALL MOVED
[01:10:01]
MOVE BY DIRECTOR TELLIS.