[PFC Board of Directors]
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OKAY, I'LL GO AHEAD AND INTRODUCE MYSELF.
UH, MY NAME IS KEITH AL, VICE PRESIDENT OF THE DALLAS PUBLIC FACILITIES COURT, SERVING AS CHAIR OF THIS MEETING IN ABSENCE OF OUR PRESIDENT, UH, AARON GRACIE.
AT THIS TIME, I'D LIKE TO CALL TO ORDER THE TUESDAY, JUNE 21ST, 2022 D UH, CITY OF DALLAS PUBLIC FACILITIES CORPORATION BOARD OF DIRECTORS MEETING AT 12:01 PM AND NOW I'LL TURN IT OVER TO AARON FOR A ROLL CALL.
UH, MAKE SURE YOU GUYS ONLINE ARE UNMUTED SO WE CAN HEAR YOU TOO.
VICE PRESIDENT KEITH POP MCCALL.
PRESENT DIRECTOR DAVID RUSSELL MAY.
PRESENT? DIRECTOR VICTOR TOLEDO.
SHE SAID SHE WAS COMING, RIGHT? YEAH.
I'M NOT SURE WHEN SHE CAN JOIN.
DIRECTOR KEN MONTGOMERY? HERE.
DIRECTOR KEVIN WINTER HERE? YES.
I'LL MOVE ON TO ITEM NUMBER THREE, PUBLIC TESTIMONY.
DO WE HAVE ANY PUBLIC COMMENTS ON ITEMS FOUR THROUGH EIGHT? IF YOU COULD PLEASE SIGNIFY, AND ERIN, IF YOU COULD HELP ME OUT.
IT'S SORT OF HARD TO SEE FROM HERE IF THERE ARE ANY PUBLIC, UH, COMMENTS, UM, FROM THE THOSE ON THE VIDEO CALL, IF YOU COULD POINT THEM OUT TO ME.
ANY PUBLIC COMMENTS? ITEMS FOUR THROUGH EIGHT.
DIRECTOR, DIRECTOR POS IS AND DIRECTOR RUSSELL, DIRECTOR RUSSELL, DIRECTOR RUSSELL ARE COMING IN.
SO WE'LL WAIT FOR THEM TO BE SEATED, IF THAT'S OKAY.
ERIC, IF YOU COULD, UH, AMEND THE RECORD AND NOTE THAT, UH, DIRECTOR RUSSELL AND DIRECTOR PA HAVE BOTH JOINED US.
ANY DISCUSSION OR, I'M SORRY, ITEM NUMBER THREE, PUBLIC TESTIMONY.
ANYONE ON THE VIDEO? HEARING NONE ONWARD OF NUMBER, ITEM NUMBER FOUR, DISCUSSION AND APPROVAL OF THE MINUTES FOR THE MAY 24TH, 2022.
CITY OF DALLAS PUBLIC FACILITIES CORPORATION.
HAS EVERYONE RECEIVED A COPY OF THE MINUTES? DO I HAVE A MOTION? SO MOVED.
IT MOVED BY DIRECTOR TALLIS AND SECONDED BY DIRECTOR MONTGOMERY TO APPROVE THE MINUTES OF MAY 24TH.
ALL IN FAVOR SIGNIFY BY SAYING AYE.
ANY, ANY OPPOSED HEARING? NO OPPOSITION.
MOVING ON ITEM NUMBER FIVE, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE STANDARD AT ROYAL 27 37 ROYAL LANE TRANSACTION, INCLUDING THE EXCU EXECUTION OF ALL DOCUMENTATION NECESSARY TO CARRY OUT THE TRANSACTION AUTHORIZING THE PURCHASE OF THE LAND FOR THE TRANSACTION AND THE LEASE OF SUCH LAND FOR THE TRANSACTION AND AUTHORIZING THE DALLAS PUBLIC FACILITIES CORPORATION TO SERVE AS A GENERAL CONTRACTOR AND OTHER MATTERS IN CONNECTION THEREWITH.
I WILL TURN IT OVER TO, UH, KYLE HINES AT THIS TIME.
UM, I'M VERY EXCITED TO HAVE THIS ON OUR AGENDA.
UH, I'VE, MY TEAM AND MY STAFF, WE'VE BEEN WORKING ON THIS DEVELOPMENT THROUGH MANY ITERATIONS OF THE PROJECT.
IT WAS INITIALLY INTENDED AND, AND THOUGHT OF AS BEING A 4% TAX CREDIT BOND DEAL.
DID NOT GET A BOND RESERVATION.
SO WE HAVE REEVALUATED AND LOOKED AT THIS AS A, AS NOW A PFC TRANSACTION.
UH, THE BOARD DID TAKE ACTION AND APPROVE A, UH, MOU FOR THE PROJECT WITH LDG DEVELOPMENT,
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UH, FOR THE 300 UNIT MIXED INCOME HOUSING DEVELOPMENT NEAR THE ROYAL LANE DART STATION.UH, COUNSEL HAS SINCE, UH, GIVEN, UH, APPROVED THE PFC ENTERING INTO THIS TRANSACTION.
AND SO TODAY IS JUST TO GIVE FINAL APPROVAL TO, UH, THE DEFINITIVE DOCUMENTS FOR THE TRANSACTION.
I HAVE, UH, INVITED, UH, JAKE BROWN FROM L D G TO COME, COME JOIN AND, AND ANSWER ANY QUESTIONS YOU MAY HAVE.
UH, IF WE WANT TO GO THROUGH THE, THE PROJECT AGAIN OR TAKE A LOOK AT IT.
UH, LIKE I SAID, THIS HAS BEEN A LONG TIME COMING.
I THINK WE SUBMITTED THE, I THINK WE RECEIVED THE TAX CREDIT APPLICATION SOMETIME IN, IN EARLY, EARLY 2021 OR MAYBE EVEN 2020.
SO, UH, GETTING IT TO THIS POINT.
SO, UH, ALL THE DEAL TERMS WERE OUTLINED IN, IN YOUR BOARD PACKET.
IF THERE'S ANY ADDITIONAL QUESTIONS ON THAT, UM, OR THE DOCUMENTS THEMSELVES.
UH, SOME GRAY HOUSE WITH BRACEWELL HAS JOINED US TODAY.
THAT'S WHO THAT IS OUT IN THE AUDIENCE, IF THERE'S ANY QUESTIONS ABOUT THE TERMS. UM, SO WITH THAT, UH, I DON'T KNOW IF THAT'S, THAT'S THE, THAT'S THE BACKGROUND BACKGROUND I HAVE ON IT.
IF THERE ARE SPECIFIC QUESTIONS, UH, ABOUT THE, THE FINANCIAL STRUCTURE REMAINING, UH, PLEASE DO LET US KNOW.
AND IF, UH, JUST TO MAKE SURE WE GIVE EVERYONE A ALL DIRECTORS A CHANCE TO, UH, SPEAK, UH, YOU COULD RAISE YOUR HAND AND ALSO, UH, OR RAISE YOUR HAND ON THE, THE ZOOM CALL, OR I'M SORRY, THE TEAMS CALL TOO.
AND ERIN, IF YOU COULD HELP ME RECOGNIZE HER IF I CAN'T SEE THEM FROM HERE.
UH, CAN YOU SUMMARIZE, UM, THE CHANGES THAT HAVE BEEN MADE SINCE THIS ORIGINALLY CAME TO THIS COMMITTEE? UM, AS FAR AS CHANGES FROM WHEN IT WAS, WAS, WAS PRESENTED TO THE BOARD AND THE TERM SHEET THAT WE HAVE, THERE WASN'T, THERE HASN'T ACTUALLY BEEN ANY SUBSTANTIAL CHANGES.
I DON'T THINK WE CHANGED THE LEASE RATE OR ANYTHING LIKE THAT.
IT'S, IT'S BASICALLY WHAT WAS, UM, APPROVED BY THE, BY THE BOARD AND THE MOU BACK IN, UH, WAS IT FEBRUARY OR MARCH? FEBRUARY, YEAH.
DO WE HAVE ANY OTHER COMMENTS FROM ANY OTHER DIRECTORS? UH, VERY GOOD.
QUICK QUESTION FOR THE APPLICANT.
UM, ONE CHANGE THAT I NOTICED BETWEEN THE MOU AND, UH, THE DEAL DOCS IS THAT THE, UH, AND THE MOU, IT SEEMED LIKE THERE WAS ONLY ONE SORT OF EQUITY PARTNER, BUT THE DEFINITIONS ARE A LITTLE BIT BROADER.
AND SO I DIDN'T KNOW IF YOU KNEW, HOPEFULLY YOU DO, IF IT IS INTENDED THAT THERE'S REALLY ONLY THE ONE, UH, PART ONE EQUITY PARTNER, OR WOULD THERE BE MORE BECAUSE THE TENANT HAS LIMITED PARTNERS? I MEAN, I DON'T FULLY KNOW THE STRUCTURE OF, YOU WANT ME TO COME UP THERE OR? YEAH, YOU CAN COME UP HERE.
AND I ACTUALLY EMAILED, YOU KNOW, SOME STUFF YESTERDAY.
UM, SO I DON'T, I DIDN'T KNOW YOU WERE GONNA
SO THE SHORT ANSWER IS THERE'S ONLY ONE, THE EQUITY PARTNER IS ACTUALLY I L D G.
SO IT'S, AND THERE'S TWO INDIVIDUALS THAT MAKE UP THE PRINCIPAL OWNERSHIP OF LDG.
SO FROM THAT COMPONENT, WILL, WILL YOU INTRODUCE YOURSELF? I'M SORRY.
CAN THEY SEE ME? OR, I DON'T KNOW.
THEY MAY BE ABLE TO SEE YOU ON THAT.
UH, JAKE BROWN WITH LDG DEVELOPMENT, AUSTIN, TEXAS.
UM, FOR ALL INTENTS AND PURPOSES, THERE'S ONE EQUITY CUSTOMER DIRECTOR.
SCOTT, CAN Y'ALL, UH, HEAR AND SAY THE SPEAKER, WE CAN HEAR? YES.
SO I BELIEVE LDG IS THE DEVELOPER UNDER THE DOCS, AND SO THAT WOULD BE THE EQUITY PART.
IT'S THE SAME, AT THE END OF THE DAY.
SO THAT, THAT, THAT DEFINITION WOULD THEN JUST BE SHRUNK TO, TO THAT, THAT WAS MY ONE QUESTION.
OUR, OUR, UH, OUR MAY OUR, THE PARTNER JIM PLUMBER IS ACTUALLY OUT OF THE COUNTRY RIGHT NOW.
SO WE'RE, WE'RE BEING SERVED BY, BY, IN HIS STATE'S.
WELL, I DIDN'T EMAIL UNTIL LIKE LATE YESTERDAY AND I GOT THE BOUNCE BACK AND I'M LIKE, YEAH.
AND, AND IT'S, IT'S NICE IN THIS DEAL CUZ LDG IS ACTUALLY, THEY'RE NOT, THEY DID AN EQUITY RAISE OF THEIR OWN INTERNAL FUNDS FOR THIS.
AND IT'S NOT SOME PRIVATE EQUITY FIRM AND ANOTHER PART, LIKE, THEY'RE STANDING BEHIND THIS TRANSACTION, WHICH IS PRETTY EXCITING.
JUST ONE QUICK COMMENT, MR. MONTGOMERY.
UM, I APPRECIATE THE UNIT MIX ON THIS.
I THINK THAT'S SOMETHING THAT IS A, A BOARD WE ALWAYS NEED TO BE MINDFUL OF.
AND, UH, JUST THE FACT THAT WE'VE GOT, UM, YOU KNOW, 40 SOME ODD PERCENT, UM, THAT ARE THREE BEDROOM E EVEN A HANDFUL OF FOUR BEDROOM, UM, I THINK IS REALLY IMPACTFUL.
SO, UM, I APPRECIATE THE, THE UNIT THAT AND JUST WANTED TO, UM, SHARE THAT.
OH, REAL QUICK, THIS CAN YOU CYCLE THROUGH, MAYBE GET, LIKE WHEN HE IS TALKING ABOUT THE UNITS, I THINK THEY'RE
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SOMEWHERE.AND AS I RECALL, THERE'S NO, THERE'S NO OBSTRUCTIVE PARKING ON THIS.
DO WE HAVE ANY OTHER COMMENTS FROM ANY OF THE DIRECTORS ABOUT ITEM NUMBER FIVE? HEARING NO COMMENTS.
DIRECTOR TELLIS HAS MADE A MOTION FOR APPROVAL.
SECONDED BY DIRECTOR RUSSELL HEARING.
SHALL WE TAKE A, UH, UH, A CALL, A ROLL CALL? VOTE PLEASE.
SECRETARY ALVIN AND SCOTT? YES.
AND DIRECTOR KEVIN WINTERS? YES.
UNANIMOUS, UH, CHAIR RECOGNIZES THAT WE HAVE APPROVED, UH, WITHOUT DISSENT ITEM NUMBER FIVE.
WE LOOK FORWARD TO WHAT YOU CAN DO FOR US WITH THE CITY OF DALLAS AND YOUR DEVELOPMENT.
ITEM NUMBER SIX, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET FOR JEFFERSON UNIVERSITY HILLS IN PARTNERSHIP WITH JPI UNIVERSITY HILLS DEVELOPMENT LLC, WHO LOCATED AT THE NORTHWEST CORNER OF UNIVERSITY HILLS IN EAST CAMP.
EAST CAMP WISDOM BOULEVARD, UH, KYLE HINES.
SO THIS IS, UH, A NEW DEVELOPMENT WE HAVE UNDER CONSIDERATION.
UH, STAFF, UH, FINANCIAL ADVISORS AND CORPORATION PARTNERSHIP COUNCIL HAVE NEGOTIATED THE MOU THAT YOU'VE FOUND IN YOUR BOARD PACKET, UH, SENT TO YOU, UH, LAST WEEK.
UM, WE FEEL IT'S A STRONG PROJECT THAT'S PART OF AN OVERALL DEVELOPMENT LOCATED AT THIS, AT THAT LARGE CORNER AT CAMP WISDOM IN UNIVERSITY HILLS, THE NORTHWEST CORNER.
UM, THIS IS JUST ONE ASPECT OF IT.
A 400 UNIT, UH, CLASS A, UH, MULTIFAMILY DEVELOPMENT, UH, SPREAD OUT WITH 50% MARKET RATE, 40% AT 80% A AMI AND 10% AT 60% A I TO PROVIDE A, A NICE BROADBAND OF, UH, INCOMES, UH, AT THE PROPERTY.
UM, JPI IS PROBABLY ONE OF THE MOST PROLIFIC APARTMENT DEVELOPERS IN THE METROPLEX.
UH, AS YOU'LL SEE FROM THE PRESENTATION THAT I'M GONNA ASK RYAN COMBS OF JPI TO, TO PRESENT.
UM, WE THINK THIS IS A, A GREAT OPPORTUNITY.
THERE WILL ALSO BE SENIOR HOUSING AS PART OF THIS OVERALL MASTER PLAN DEVELOPMENT FOR SALE SINGLE FAMILY HOMES.
YOU'RE NOT, WE'RE NOT APPROVING THAT TODAY.
THIS IS JUST, WE'RE ONLY APPROVING, UH, OUR PRELIMINARY APPROVAL OF THE 400 UNIT MULTIFAMILY, UH, DEVELOPMENT.
THERE WILL ALSO BE RETAIL ON SITE.
AND NONE OF THIS MOVES FORWARD WITHOUT, UH, THE CITY PLAN COMMISSION GIVING THEIR BLESSING FOR THE PLAN DEVELOPMENT THAT IS CURRENTLY UNDERWAY.
UH, WE'RE JUST, WE'RE JUST APPROVING OUR PARTNER, OUR PRELIMINARY APPROVAL OF OUR PARTNERSHIP IN, UH, THE MIXED INCOME WORKFORCE HOUSING THAT'S BEING DEVELOPED.
SO WITH THAT, UH, BRIAN COMBS, CAN YOU COME UP HERE AND MAYBE WALK THROUGH EVERYBODY? THE HERE OR HERE OR WHATEVER, WHATEVER.
AND INTRODUCE YOURSELF AND, AND JPI AND SURE.
WE'RE, WE'RE EXCITED TO BE HERE.
THIS HAS BEEN A CONVERSATION THAT WE STARTED, UH, WITH KYLE AND, AND THE CITY BACK THIS PAST FALL.
AND, UH, UH, MY NAME'S RYAN COMBS.
I'VE BEEN IN THE AFFORDABLE HOUSING INDUSTRY FOR 15 OR SO YEARS.
UH, UH, WORKING KIND OF ALL OVER NORTH TEXAS, REALLY ALL OVER TEXAS, BUT A LOT IN NORTH TEXAS, ALL OVER, ALL OVER NORTH TEXAS.
AND, UH, HAVE KNOWN JPI, UH, FOR THAT, FOR THAT WHOLE TIME.
JPI BEING THE BIGGEST AND KIND OF, AS KYLE SAID, ONE OF, ONE OF THE MOST WELL KNOWN, UH, MULTIFAMILY DEVELOPERS IN NORTH TEXAS, UH, DEVELOPED WELL OVER A HUNDRED THOUSAND UNITS, UH, UH, AND HAS DONE A WHOLE LOT.
I, I GOT TO KNOW SOME OF THE LEADERSHIP AT JPI, SOME OF THE BOARD PRESIDENTS BOBBY PAGE, AND THE, THE CURRENT PRESIDENT AND CEO
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OF, UH, OF, UH, AT JPI GOT TO KNOW THEM THROUGH A FAITH-BASED NON-PROFIT THAT I WORKED WITH CALLED DEPARTMENT LIFE.UH, AND SO I KNEW THAT JPI HAD VALUES, UH, THAT THAT ALIGNED WITH AFFORDABLE HOUSING.
BUT JPI HAS ALWAYS BEEN A VERY HIGH END, UH, MARKET RATE MULTI-FAMILY DEVELOPER.
AND SO A FEW YEARS AGO I APPROACHED JPI AND WE STARTED A CONVERSATION OF WHAT WOULD IT LOOK LIKE FOR JPI TO REALLY, UH, UH, BUILD AN AFFORDABLE HOUSING PLATFORM.
CAUSE I THOUGHT JPI IS THE BIGGEST AND THE BEST.
THEY KNOW HOW TO DO THIS REALLY WELL.
THEY'VE GOT VALUES THAT LINE UP.
THERE'S WHY IS THERE, WHY ARE THEY NOT DOING AFFORDABLE HOUSING? BECAUSE THERE'S SUCH A MASSIVE NEED FOR IT.
AND WHAT JPI DID THEIR DUE DILIGENCE, THEY SPENT ABOUT A YEAR LOOKING AT IT AND, AND KIND OF GOING THROUGH IT.
AND THEN A COUPLE YEARS AGO, TWO YEARS AGO, UH, DECIDED THAT THEY WANTED TO, WANTED TO PURSUE THAT, UH, UH, FULL FORCE AND BUILT A WHOLE DEPARTMENT.
UH, AND WE'VE, WE'VE BEEN DOING IT INITIALLY.
WE, WE, WE'VE DONE, UH, UH, FOUR TAX CREDIT DEALS.
WE'VE, WE'VE, WE'VE BEEN USING HOUSING TAX CREDITS, WHICH I'VE BEEN A PART OF THE HOUSING TAX CREDIT PROGRAM FOR A LONG, LONG TIME.
AND THEN WE'VE, WE'VE, WE'VE REALLY STARTED OVER THE PAST YEAR REALLY BUILDING A LOT OF WHAT, WHAT I CALL WORKFORCE HOUSING WITH THESE DEALS THAT ARE A MIX OF AFFORD HAVING AFFORDABILITY AND A FULL MARKET RATE SIDE OF IT.
AND SO THAT'S REALLY WHAT WE'VE BEEN MOVING, WORKING TOWARDS.
AND, AND ONE OF THE BENEFITS OF THAT IS YOU DON'T HAVE TO GO THROUGH THE WHOLE TAX CREDIT CYCLE, WHICH IS A VERY HARD THING IS YOU JUST HEARD WITH LDG THAT JUST CAME THROUGH HERE.
THAT'S HARD TO GET TAX CREDITS.
IT'S HARD TO CAPITALIZE TAX CREDITS, ESPECIALLY IN THIS INFLATIONARY ENVIRONMENT.
UH, AND, AND SO THIS IS SOMETHING THAT ALLOWS US TO BE ABLE TO GO DO SOMETHING AND WE CAN FLEX OUR, UH, MARKET RATE MUSCLES, SOMETHING THAT WE KNOW HOW TO DO VERY, VERY WELL.
AND WE CAN GO SERVE THAT MISSING MIDDLE, THOSE PEOPLE THAT ARE, THAT ARE GETTING LEFT OUTTA THE HOUSING MARKET ALL OVER NORTH TEXAS.
THE TEACHERS, THE PUBLIC SERVANTS, ALL OF THE PEOPLE THAT MAY MAKE A LITTLE TOO MUCH TO LIVE IN TAX CREDIT HOUSING, BUT ARE GETTING PRICED OUT OF THE HOUSING MARKET.
WE CAN PROVIDE, UH, A, A HOUSING COST IN A, IN A STATE-OF-THE-ART MARKET RATE FACILITY, BUT WE CAN PROVIDE A HOUSING COST THAT SERVES THEM WELL.
AND THEN WE CAN ALSO GO, THIS IS, THIS IS ONE OF THE THINGS THAT I'M REALLY EXCITED ABOUT.
THIS COMMUNITY AT UNIVERSITY HILLS DOWN NEAR, UH, UNIVERSITY OF NORTH TEXAS AT, UH, AT UNIVERSITY, UH, BOULEVARD.
AND, AND, UH, I'M FORGETTING CAMP WISDOM ROAD, UNIVERSITY HILLS BOULEVARD AND CAMP WISDOM ROAD.
WE'RE INSIDE OF A, A LARGER MIXED USE DEVELOPMENT, WHICH IS WHAT I LIKE BECAUSE THIS IS A BIG PLANNED COMMUNITY THAT WE JUST GET TO COME IN AND BE A PART OF AND MAKE IT, MAKE IT BETTER.
WE GET TO PROVIDE THE MULTIFAMILY HOUSING.
WE GET TO PROVIDE, UH, THE WORKFORCE HOUSING AND SERVE THAT COMMUNITY ALONG WITH IT'S PLANNED A COUPLE HUNDRED SINGLE FAMILY HOMES, TOWN HOMES.
UH, THERE IS, UH, UH, QUITE A BIT OF RETAIL.
I THINK THERE'S A 40,000 SQUARE FOOT GROCERY STORE PLAN.
UH, 70,000 SQUARE FOOT OF RESTAURANTS A HOTEL.
THERE'S A COUPLE OF OFFICE 20,000 SQUARE FOOT OFFICE BUILDINGS THAT ARE PLANNED, UH, IN THIS DEVELOPMENT.
AND, UH, UH, AND, AND SO WE'RE EXCITED TO BE A PART OF SOMETHING THAT'S A BIGGER PLAN.
TERRENCE MAIDEN IS THE MASTER OF DEVELOPMENT OF THIS WHOLE COMMUNITY.
HE'S MET WITH, UH, ALL THE NEIGHBORHOODS, MET WITH THE UNIVERSITY, AND HAS REALLY BEEN GOING DOWN THE PATH, AS KYLE SAID.
UH, THE PLAN DEVELOPMENT FOR THIS COMMUNITY IS GOING IN FRONT OF PLANNING AND ZONING ON, ON IN JULY, AND IT'LL GO TO CITY COUNCIL IN AUGUST.
AND SO WE STILL ARE, ARE GOING THROUGH THAT PROCESS WITH THE CITY.
SO THE CITY'S VERY WELL AWARE OF THIS.
TERENCE MAIDEN HAS BEEN WORKING WITH LORI BLAIR, UH, IN THE PLAN COMMISSIONER PLAN COMMISSION VERY, VERY CLOSELY THROUGH THIS PROCESS.
AND, UH, BUT FOR US TO BE ABLE TO DO THIS, WE, WE, WE, WE VALUE A PARTNERSHIP WITH THE DALLAS PUBLIC FACILITY CORPORATION THAT ALLOWS US TO BE ABLE TO BRING THIS, THIS LEVEL OF QUALITY, UH, TO THIS AREA OF DALLAS THAT HAS NOT HAD THIS LEVEL OF QUALITY IN A WHILE.
AND SO, UH, TO GIVE YOU, TO GIVE YOU AN IDEA, OUR HARD COSTS, WE, WE LOOK AT ABOUT 180 $590,000 A SQUARE FOOT FOR OUR HARD COST.
AND, AND, AND THAT IS, UH, HIGHEND HIGH END QUALITY.
SO IT'S SOMETHING THAT WE'RE, WE'RE VERY EXCITED ABOUT.
WE'RE VERY EXCITED THAT IT, IT'S TAKEN A LONG TIME TO GET HERE.
WE'VE GONE, WE'VE GONE THROUGH A COUPLE OF ITERATIONS.
WE'VE BEEN WORKING ON THIS FOR A LONG TIME.
UH, BUT, UH, BUT WE'RE EXCITED TO BE HERE AND, AND HAVE THIS CONVERSATION WITH YOU.
SO THERE'S AN OVERVIEW OF IT, UH, 400 UNITS ON 12.6 ACRES.
IT'S GOT A MIX OF AFFORDABILITY, 40%, 40 UNITS AT 60% AAMI, 160 UNITS AT 80% AAMI, AND THEN 200 UNITS AT MARKET RATE.
YOU CAN SEE THE FULL LIST OF AMENITIES THAT ARE THERE.
AND THIS IS, THIS IS OUR, OUR, OUR STANDARD LIST OF WHAT WE PUT ON ALL OF OUR MARKET RATE MULTI-FAMILY HOUSING ON THE VERY NEXT PAGE.
THAT'S JUST KIND OF AN OVERVIEW OF UNIVERSITY HILLS.
IF YOU, TO THE, THE NEXT PAGE AFTER THAT GIVES KIND OF A REFERENCE OF WHERE IT IS AND WHAT YOU CAN SEE ON THAT.
YOU SEE U U N T KIND OF ON THE SOUTHEAST CORNER, ON THE NORTHWEST CORNER OF UNIVERSITY HILLS AND, AND CAMP WISDOM ROAD.
YOU SEE ALL OF THE UNIVERSITY HILLS DEVELOPMENT.
SO CLOSEST TO CAMP WISDOM ROAD IS WHERE THE RETAIL DEVELOPMENT OFFICE DEVELOPMENT WILL BE.
THERE'S SOME FLOOD PLAIN THAT KIND OF SEPARATES WHERE THE RETAIL IS AND THE RESIDENTIAL.
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WE WILL BE KIND OF ON THE, IN THE NORTHEAST SIDE OF THAT SITE PLAN.UH, AND THEN BEHIND US, WE'LL BE SINGLE FAMILY AND TOWN HOMES.
AND SO WHAT, WHAT IT'S DOING IS PROVIDING SOME HOUSING CHOICE AND SOME DIFFERENTIATION IN HOUSING ON THE RESIDENTIAL SIDE.
AND SO WE'RE EXCITED ABOUT THAT.
UH, THE VERY NEXT PAGE SHOWS A LITTLE BIT MORE OF THE DETAIL OF WHERE JEFFERSON UNIVERSITY HILLS ON THAT IT IS ON THAT SITE PLAN.
AND THEN THE VERY LAST PAGE ON PAGE 13 IS OUR ELEVATION.
SO WE'VE SPENT ACTUALLY QUITE A BIT OF TIME WITH THE MASTER DEVELOPER, TERRENCE MAIDEN.
IF YOU GO TO THE VERY NEXT PAGE, I DON'T KNOW THE ELEVATION MADE IT.
OH, DID IT NOT MAKE IT IN THERE? NO, I DON'T.
WELL, MAYBE, MAYBE I'LL PASS IT AROUND OR, OR, OR I DON'T, I'M NOT SURE IF THAT WORKS OR NOT.
BUT WE'VE WORKED WITH TERRENCE MAIDEN.
IS IT IN THE BOARD PACKET? IT'S IN THE BOARD PACKET.
SO IT'S A CONTEMPORARY FARMHOUSE STYLE.
AND WE'VE BEEN WORKING WITH TERRENCE MAIDEN TO, TO CREATE AN ELEVATION AND A, AND AN AESTHETIC STYLE THAT FITS THE STYLE OF, OF ALL OF UNIVERSITY HILLS, THE SINGLE FAMILY HOMES AND THE RETAIL AND EVERYTHING THAT HE'S DOING.
WE WANT TO, WE DON'T WANNA STICK OUT AND BE SOMETHING COMPLETELY SEPARATE.
WE WANT TO, WE WANNA INTEGRATE AND BE PART OF THAT.
SO THAT'S OUR ELEVATION STUDY TO SHOW KIND OF WHAT IT'S GONNA LOOK LIKE FROM THE ROAD WHEN YOU DRIVE BY IT.
SO WITH THAT, I, I'LL OPEN IT UP TO ANY QUESTIONS.
LIKE I SAID, WE'RE, WE ARE, UH, EXCITED TO BE HERE AND, AND TO, TO, TO BE CONTEMPLATING THIS PARTNERSHIP WITH THE DALLAS PUBLIC FACILITY CORPORATION.
YEAH, NO, I'LL JUST REITERATE, UH, IN THE BOARD PACKET MEMO, IT DID, THERE WAS A REFERENCE THAT FOR THE FIRST 10 YEARS OF THE PROJECT THAT THE LEASE PAYMENT INCREASED BY 2%.
IT'S ACTUALLY 3% FROM THE START.
UM, UH, THE, THE LEASE PAYMENT MIGHT BE A LITTLE BIT LOWER THAN WHAT WE HAVE SEEN ON OTHER DEVELOPMENTS BASED ON, YOU KNOW, A 400 UNIT PROPERTY.
HOWEVER, WHEN YOU INCLUDE, UH, THE 10% OF 60% AAMI RENTS, THAT JUST LOWERS THE AMOUNT OF REVENUE THAT WE CAN HAVE.
SO OUR, OUR NORMAL TARGET OF 25% OF, OF, UH, OF THE PROPERTY TAX EXEMPTION, UH, THAT TARGET, WE, WE CAN'T QUITE HIT IT CUZ WE JUST HAVE, HAVE LOWER INK, LOWER RENTS.
SO, UH, THAT'S JUST WANTED TO MAKE THAT COMMENT ON THERE.
EVERYTHING ELSE IS, IS GENERALLY FOLLOWS THE SAME TERMS AS OUR OTHER, UH, OTHER DEVELOPMENTS THAT WE'VE APPROVED, UH, PREVIOUSLY.
UH, DISCUSSION IS OPEN ON ITEM NUMBER SIX.
UH, DIRECTOR PO UH, WELL, I WOULD THINK THAT A LOT OF PEOPLE WILL BE DANCING IN THE STREETS WHEN THEY HEAR ABOUT A 40,000 SQUARE FOOT GROCERY STORE.
ARE YOU AT LIBERTY TO SAY WHICH ONE? WELL, NO, SO TERRENCE MADE THAT I HAVE A LOT OF FRIENDS ON WANNA EMAIL.
YEAH, WELL THAT'S, THAT'S NOT, WE, WE'RE NOT A PART OF THAT.
TERRANCE MAIDEN, THE MASTER DEVELOPER HAS PLANS FOR THAT.
AND I KNOW, UH, RUSTY'S WITH US ON OUR TEAM, I KNOW RUSTY JUST TALKED WITH TERRANCE THIS MORNING.
HE IS WORKING TO GET HIS TENANTS TIED UP, I THINK BY THE END OF THE YEAR, BY THE END OF 2023.
I DON'T THINK HE HAS A USER FOR THAT YET, BUT THAT'S WHAT HE'S TARGETING.
WELL THAT'S, THAT'S AWESOME NEWS FOR THE ENTIRE REGION.
UM, I WILL BE FAVORABLE TOWARD THIS BECAUSE I, I'VE SEEN WHAT TYPE OF WORK JPI HAS DONE IN THE PAST.
I KNOW THAT THEY'VE GOT THE FINANCIALS BEHIND IT, A REALLY SOLID, SOLID GROUP OF PEOPLE.
BUT I DID HAVE A COUPLE OF QUESTIONS THAT KIND OF LEAN MORE TOWARD, UM, ALL OF THE PROJECTS.
UM, THE ZONING, THE PD IS NOT COMPLETE YET.
SO I GUESS THIS IS FOR KYLE OR AARON.
WHY ARE WE LOOKING AT THIS BEFORE THE ZONING IS COMPLETE? YEAH, SO WE'RE, WE'RE LOOKING AT THESE PROJECTS, UH, CAUSE WE WANNA RUN THEM SIMULTANEOUS ON A TWO TRACK THING SO THAT WE'RE NOT, UH, WASTING ANY TIME ON ONE ASPECT OR THE OTHER.
UH, WE, UH, WHEN WE APPROVE THESE DEVELOPMENTS, WE'RE APPROVING THIS BASED SOLELY ON THE FACT THAT WHETHER OR NOT THE CITY PLAN COMMISSION AND THE, AND THE LAND USE SPECIALISTS AT THE, AT THE CITY MAKE THEIR DETERMINATION THAT THIS IS THE, THE HIGHEST AND BEST USE FOR THIS SITE.
AND IT TIES INTO, UM, YOU KNOW, PLANNING AND ZONING GUIDELINES.
UH, WHAT WE DON'T WANNA DO IS DRAG OUR FEET AND, AND, AND HAVE TO WAIT TILL THE, THE ZONING PROCESSES IS COMPLETE TO MAKE OUR DETERMINATION BECAUSE IT, IT SHOULDN'T, IT SHOULDN'T MATTER SO MUCH CUZ THEY'RE, CUZ THEY'RE CONCURRENT TRACKS.
SO, UM, WHEN DO WE THINK THE ZONING IS GONNA BE COMPLETE ON THE PD? WAS IT JULY? SO WE GO TO PLANNING ZONING IN ON JULY 7TH, AND WE GO TO COUNCIL IN AUGUST.
AND, AND THE REASON WE GO AHEAD AND DO IT LIKE THIS IS BECAUSE LAND OWNERS IN THIS, IN THIS ENVIRONMENT, DON'T, THEY, THEY, THEY WON'T WAIT ON YOU TO CLOSE ON THE LAND.
THEY, THEY, THEY NEED YOU TO CLOSE ON THE LAND AS SOON AS THEY GET THEIR ENTITLEMENTS IN PLACE.
AND SO WHAT WE WANTED TO DO IS GO AHEAD AND HAVE THE CONVERSATION, HAVE A MEMORANDUM OF UNDERSTANDING WITH THE CI, WITH THE PFC SO THAT WE KNOW THAT WE'VE GOT A DEAL STRUCTURE THAT WORKS.
UH, OBVIOUSLY IF THE CITY WERE DENIED THE ZONING, THEN IT, THEN WE WOULD NOT MOVE FORWARD.
BUT ASSUMING THAT THE CITY DOES
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APPROVE THE ZONING, THEN WE KNOW THAT WE'VE GOT A STRUCTURE THAT WE WE CAN MOVE FORWARD WITH.I MEAN, ALL OF THIS IS FOR NOT IF THE ZONING DOESN'T PASS.
UM, AND THEN I GUESS ONE MORE QUESTION, UH, FOR KYLE OR ERIN.
UH, I I I NOTE THAT ON ALL OF THESE DEALS THAT WE LOOK AT, THEY'RE ALL 75 YEARS.
AND THEN THERE'S NO RULE THAT SAYS IT HAS TO BE 75 YEARS.
I MEAN, THEY COULD BE 20 YEARS OR 30 YEARS.
SO ARE WE JUST, HOW, HOW DOES IT COME ABOUT THAT THEY'RE ALL 75 YEARS? ACTUALLY 75 YEARS IS THE MINIMUM AMOUNT OF, OF LEASE TERM THAT THE PRIVATE DEVELOPMENT COMMUNITY HAS INDICATED THAT THEY WILL LEASE THIS LEASE AND INVEST IN ONE OF THESE PROPERTIES.
PROPERTIES FOR, BECAUSE YOU HAVE TO ESSENTIALLY HAVE EFFECTIVE TITLE TO THE LAND.
AND IF WE WERE TO ONLY DO 20 YEARS, UH, THAT WOULDN'T PROVIDE ENOUGH TERM FOR THE DEVELOPERS TO ACTUALLY AND INVESTORS IN THE PROPERTY TO REALIZE THEIR, THEIR RETURNS.
UM, JP IF YOU WANT, THAT'S, THAT'S, THAT'S KYLE YOU SAID.
IT WOULD BE VERY HARD FOR US TO RAISE CAPITAL BECAUSE PEOPLE HAVE TO, UH, THEY HAVE TO PROJECT OUT THOSE CASH FLOWS FOR, FOR A LONG TIME.
AND ANYTHING LESS THAN 75 YEARS WOULD BE REALLY HARD FOR ANYONE TO, TO REALIZE THEIR VALUE.
UH, DIRECTOR TELL I HAVE ONE QUESTION.
UM, I THINK I KNOW THE ANSWER, BUT THERE'S NO RETAIL IN INVOLVED IN THIS, NOT IN THE MULTIFAMILY PORTION.
UM, DIRECTOR HOUSE AS FAR AS, I MEAN, YOU MENTIONED ENTITLEMENTS.
UM, I MAY BE WRONG, BUT I, I DON'T THINK THIS HAS ANYTHING TO DO WITH THE PROJECT THAT RECENTLY GOT APPROVED.
WELL, AT LEAST AT THE, AT THE SUBCOMMITTEE LEVEL FOR, UH, PO CAPITAL THAT MIGHT BE LIKE SOUTH OF HERE, LIKE SOUTH OF LINE, RIGHT? YEAH, THAT'S NOT US.
SO WITH THE ZONING ARE, IS THERE ANY KIND OF PLAN FOR ECONOMIC INCENTIVES FOR THE, FOR THE THE MASTER PLAN SITE? THERE ARE, AND RUSTY YOU MIGHT BE ABLE TO TALK TO THAT.
SO NOT FOR OUR DEVELOPMENT RIGHT.
IN PARTICULAR, BUT I BELIEVE THAT THERE MIGHT BE SOME BASED ON INFRASTRUCTURE.
CAN YOU SAY THAT AGAIN? MY WIFE JUST CALLED ME AND
I CAN TOTALLY UNDERSTAND THE BOSS CALLED.
UM, THE QUESTION IS, UM, WHAT INCENTIVES ARE GOING TO BE SOUGHT FOR THE LARGER SITE HERE? I DON'T, I KNOW THAT TERRENCE IS TALKING TO THE CITY ABOUT INCENTIVES, BUT IT HAS NOTHING TO DO WITH THIS PARTICULAR PIECE THAT WOULD BE A MASTER DEVELOPMENT INCENTIVE FOR RIGHT.
MOST LIKELY INFRASTRUCTURE TYPE.
AND AND TO, TO, TO, TO FOLLOW UP ON HIS QUESTION, ONE OF THE BENEFITS OF US BEING UP ON THE ROAD IS THAT WE DON'T NEED INFRASTRUCTURE TO BE PUT IN PLACE FOR HOURS TO BE ABLE TO MOVE FORWARD.
BUT, BUT I MEAN, ONE, UM, I GUESS ONE CONCERN THAT I MIGHT HAVE THEN IS THAT AS A RESULT OF THIS PROJECT BEING, YOU KNOW, IT'S BASICALLY TAKING THE PROPERTY OFF THE TAX RULES.
AND SO IF THERE WAS ANY KIND OF TIFF TYPE FINANCING FOR THIS PROJECT, THEN, YOU KNOW, THERE'S NOTHING FOR THEM TO ADD ON TO FORM A BASIS FOR THIS PROJECT.
THAT IF, IF THE GROCERY STORE WANTS TO BE PART OF A PLAN AND THEY WANT TO, AND THEY'RE GONNA LIKE EXPAND THE SAME CHIP THAT WE'VE JUST TALKED ABOUT THAT'S FEEDING THIS OTHER PROJECT, THEN THERE'S NO TAX BASE HERE THAT CAN CONTRIBUTE TO THAT PROJECT.
SO I'M, I'M ALMOST WONDERING IF IT'S, I MEAN, THE ZONINGS UNIFIED HERE, WELL PERHAPS THE ECONOMICS SHOULD BE, SHOULD BE UNIFIED HERE BECAUSE I, I SUSPECT THAT THE CREEK AND THERE WILL BE A, A NUMBER OF PUBLIC TYPE IMPROVEMENTS THAT WOULD BE NEEDED THAT THERE ARE, THERE, THERE'S A, A LARGE SPINE ROAD THAT RUNS THROUGH THE MIDDLE.
I, I KNOW THAT THROUGH THIS WHOLE PROCESSES WE'VE BEEN WORKING WITH THE MASTER DEVELOPER, IT'S BEEN VERY TRANSPARENT THAT WE HAVE BEEN PLANNING ON DEVELOPING LIKE THIS, UH, AS A WORKFORCE HOUSING DEVELOPMENT WITHIN A PARTNERSHIP WITH THE PUBLIC FACILITY CORPORATION, KNOWING THAT IT WOULD NOT BE ON THE TAX ROLLS.
AND SO I KNOW WHATEVER INCENTIVES THAT HE IS WORKING TOWARDS IT IS, IT IS SEPARATE AND DISTINCT OF OUR USE.
AND SO THAT, THAT IS CONTEMPLATED IN THERE.
WELL IT JUST MAKES, BUT IT WOULD COMPLICATE IT BECAUSE A GREAT SOURCE OF REVENUE TO TO DO PUBLIC INFRASTRUCTURE HERE WOULD BE THROUGH THE TAXES GENERATED HERE.
I MEAN, THEY HAVE TO FIND THE MONEY SOMEWHERE ELSE THEN IF THEY, THEY CAN'T GET IT FROM SOMETHING THAT'S LIKE BEING BUILT RIGHT THERE.
AND, AND THERE MAY BE, THERE, THERE MAY BE SOME OF THAT.
I WILL SAY THAT, YOU KNOW, WITH, WITH US KIND OF BEING THE LEADING EDGE OF THIS, THIS IS A, THIS IS A LARGE MIXED USE DEVELOPMENT THAT, THAT THIS, THIS PART OF TOWN HAS NOT SEEN A LOT OF.
AND SO WHAT WE HAVE THE OPPORTUNITY TO DO IS TO COME IN AS A, AS A, AN INSTITUTIONALIZED LARGE WELL-KNOWN DEVELOPER AND TO BRING INSTITUTIONAL MONEY TO AN AREA THAT IS NOT THE, THE, WHAT WE'RE ABLE TO DO IS WE'RE ABLE TO BE ABLE TO TELL A STORY SO THAT HE CAN DO THE BIGGER, THE BIGGER PROJECT TOGETHER.
[00:30:01]
YEAH.AND AND JUST TO FOLLOW UP ON THAT, AS FAR AS ECONOMIC DEVELOPMENT INCENTIVES AND, AND, AND TIF DOLLARS ARE, ARE CONCERNED, IS IT, THIS DEAL DOESN'T PENCIL WITHOUT, UH, WITHOUT THE PROPERTY TAX EXEMPTION? LIKE THE ECONOMICS JUST DON'T WORK.
SO, BUT I MEAN, BUT YOU'RE COMPARING, BUT ARE YOU COMPARING THAT TO THE TIF PROJECT? TIF WOULD NOT COVER THE, THE DEFICIT, THE, THE AMOUNT OF THE AMOUNT OF TIF DOLLARS THAT WOULD BE REQUIRED TO ACTUALLY MAKE THE DEAL PENCIL WOULD SUCK UP ALL THE TIF, ANY OTHER TIF TIF DOLLARS THAT COULD POTENTIALLY EVEN BE RAISED BY THIS DEVELOPMENT.
SO IT'S, IT'S ALMOST KIND OF, THIS IS AN EASIER AND AND CLEANER WAY TO DO IT, TO JUST PROVIDE THE OPERATIONAL SUBSIDY AS OPPOSED TO THE UPFRONT, UH, GAP FINANCING THAT'D BE REQUIRED OF, OF $50.
CUZ IT DOES, CUZ IT, IT, IT DOESN'T PENCIL, UH, WITHOUT, WITHOUT HAVING A PROPERTY TAX EXEMPTION.
SO THAT'S KIND OF THE BUT FOR ANALYSIS THAT WE HAVE TO DO ON ALL OF THESE.
IS TIM, ON THE, ON THE CALL? I DON'T KNOW, BUT BRAXTON IS BRAXTON CAN YOU SPEAK? I DON'T, I MEAN, I DON'T EVEN KNOW WHAT ASSUMPTIONS YOU CAN BUILD ON, ON WHAT THE TAX RATE IS.
USUALLY THE AMOUNTS THAT ARE GENERATED FOR THE PROJECT ARE BASED ON THE COST OF THE IMPROVEMENTS.
SO IF WE DON'T KNOW WHAT THE COST OF THE IMPROVEMENTS ARE, THEN I'M NOT SURE HOW JUST SAY DOESN'T COST.
I I WE'RE, I DON'T KNOW HOW HIGH OF A LEVEL OR HOW MUCH WE CAN DIG DOWN.
I MEAN THE PR THE IMPROVEMENTS FOR THIS SITE, I MEAN, WOULD PROBABLY RELATED TO THINGS OUTSIDE OF, OF LITTLE THE BLUE TRINE, WHAT THEY'RE PICKING FOR THIS PROJECT.
THE, I MEAN THE TOTAL DEVELOPMENT COST IS ABOUT 99 MILLION AND YOU CAN ES YOU CAN ESTIMATE THAT TOTAL PROPERTY TAX OF ABOUT $2 MILLION, ADD THAT TO THE CASH FLOW AND WE'RE NOT ABLE TO GET ANY SORT OF WORKFORCE HOUSING IN HERE OR EVEN THE, THE, THE 60% AAMI UNITS BECAUSE THERE'S JUST NOT ENOUGH REVENUES TO COVER THAT.
LET ME MOVE ON TO THE NEXT QUESTION.
UH, JPI DOES A LOT OF GREAT STUDENT HOUSING AND THAT'S, AND SO HOW DO I KNOW WHEN WE'RE CADDY CORNER FROM THIS SITE? THIS IS NOT GOING TO BE STUDENT HOUSING.
WE HAVEN'T BEEN IN THE STUDENT HOUSING BUSINESS FOR QUITE A LONG TIME.
YEAH, WE, I MEAN I, THE PROJECT RIGHT BY UNIVERSITY OF DALLAS, WE DON'T, I READ ABOUT IT IN THE PAPER.
LIKE THAT'S NOT, THAT'S NOT OUR, THAT THAT'S NOT US.
WE HAD, WE, AND I'M NOT, I'M NOT FAMILIAR WITH WHAT ARTICLE YOU'RE TALKING ABOUT, BUT WE, WE'VE NOT BEEN IN STUDENT HOUSING BUSINESS FOR A VERY LONG TIME.
SO NO, AND AND, AND REALLY, YOU KNOW, WHEN WE ENTER A PARTNERSHIP LIKE THIS THAT, THAT THE AMISS AND, AND THOSE THINGS ARE, ARE, ARE WRITTEN INTO THE AGREEMENTS.
I MEAN, IT'S NOT SOMETHING THAT WE CAN GO CHANGE.
I MEAN, STUDENT HOUSING WOULD BE FOR STUDENTS WHO DON'T MAKE THE INCOME.
THERE'S NO OTHER LOCATION THAT THIS NOT BE STUDENT HOUSING.
I'M NOT, IT WOULD BE THE LIMITATION ON THE INCOME OF THE RESIDENCE.
I'M NOT A STUDENT HOUSING GUY, SO I'M, I'M NOT GONNA, I'M NOT GONNA ACT LIKE A, LIKE I'M AN EXPERT.
BUT WHAT I DO KNOW IS THAT A LOT OF STUDENT, STUDENT HOUSING WILL BE MULTIPLE OCCUPANTS IN, IN ONE UNIT.
THAT DOES NOT WORK WHEN YOU HAVE THESE TYPE OF AAMI SET ASIDES BECAUSE THEY'RE GONNA TAKE THE INCOMES OF EVERYBODY AND ADD 'EM ALL TOGETHER.
AND SO THAT BECOMES A PROBLEM.
SO HOW WOULD THE UNIT MIX THEN BE DIFFERENT BETWEEN THE STUDENT HOUSING AND, AND THE PROJECT YOU DO? WE HAVE THE UNIT UNIT MIX FOR THIS PROJECT.
WE, WE, WE HAVE, WE DON'T HAVE A SET DOWN UNIT MIX, BUT IT'S GONNA BE A MIX OF ONE TWOS AND THREES AND, UH, TYPICALLY STUDENT HOUSING GONNA BE A HIGH CONCENTRATION OF THREES AND FOURS THAT SHARE A COMMON LIVING ROOM.
BLOCKABLE BEDROOMS COMPLETELY WON'T, DIFFERENT PRODUCT WON'T, WE WON'T HAVE THAT.
AND I THINK, I THINK WE WON'T DO THAT AT ALL.
SOME OF THE GUARANTEE BECAUSE I DID HAVE SOME EXPERIENCE IN STUDENT HOUSING BEFORE I JOINED THE CITY, AND I THINK, UH, JPI IS NOT GONNA REALLY FEEL COMFORTABLE WITH HAVING, UH, 400 LEASES WITH STUDENTS THAT ARE SIGNED BY THEIR PARENTS BECAUSE THAT'S GENERALLY WHAT HAPPENS.
WELL, AND THAT'S AND THAT, YEAH.
AND THAT'S WHY, I MEAN, LOOK, I'M HAPPY TO HEAR THAT ANSWER BECAUSE I DON'T WANNA GO THROUGH ALL THE OTHER QUESTIONS THAT ARE INVOLVED.
THIS TYPE OF PROJECT, I, I CAN TELL YOU THAT OUR BOARD HAS VERY DEPENDENTLY GIVEN US THE ANSWER THAT WE ARE NOT DOING STUDENT HOUSING ON ANYTHING.
UH, MARK, ANY MORE COMMENTS ON THAT? NUMBER SIX.
UM, JUST A, A CLARIFYING QUESTION.
I, I THINK YOU GOT AT IT, BUT, SO THE JPI IS JUST DEVELOPING THIS MULTIFAMILY, CORRECT? JUST THE SHADED AREA RIGHT THERE.
THERE ARE NO INFRASTRUCTURE INCENTIVES ASSOCIATED WITH IT? NOTHING LIKE THAT FOR THAT PART? CORRECT.
THERE'S A SPINE ROAD THAT RUNS THROUGH THE MIDDLE OF THE DEVELOPMENT.
WE ARE ON EITHER SIDE OF THAT SPINE ROAD.
SO TO SAY THAT WE DON'T BENEFIT FROM THAT SPINE ROAD COMING THROUGH WOULD BE NOT ACCURATE.
TO ENTER THE PROJECT, WE'VE GOT TO GET ON THAT SPINE ROAD.
[00:35:01]
WHAT, UH, TERRENCE MAIDEN'S AND INSTEAD PACKAGES IF EVEN HAS ONE.THANK YOU FOR CLARIFYING THE, AND THE, THE ROOT OF THAT QUESTION, WE'RE GONNA SEE IT ON THE, THE NEXT PROJECT, UM, IS DOUBLE DIPPING IN SENATE.
SO I WANNA MAKE SURE THAT, THAT WE STAY AWAY FROM THAT.
CAUSE I THINK WE'RE A CLEARING HOUSE FOR THAT IN SOME WAYS.
UH, DIRECTOR REYES, WERE YOU RAISING YOUR HAND? NO.
UH, ANY OTHER COMMENTS ON ITEM NUMBER SIX? ONE QUICK QUESTION.
Y'ALL GOT A, A FAIRLY NEW PROJECT, I THINK JUST GOT ZONED NEXT TO DUNCANVILLE HIGH SCHOOL, RIGHT? JUST DOWN THE ROAD.
HOW DOES THIS COMPARE TO THAT? QUALITY-WISE CALIBER? SAME CONSTRUCTION, SAME PRODUCT.
SO THERE'S NO DIFFERENTIATION BETWEEN THIS PRODUCT AND OUR 100% MARKET PRODUCT.
NOW, WE MAY DO SOMETHING A LITTLE BIT DIFFERENT IN A, YOU KNOW, IN A $3 SQUARE FOOT RENT AREA THAN WE WOULD IN A DOLLAR 50 FOOT SQUARE FOOT.
YOU'RE A REAL ESTATE DEVELOPER.
I KNOW YOU UNDERSTAND THE ECONOMICS OF THAT, BUT OUR, THIS WILL BE OUR, WHAT WE CALL OUR STANDARD MULTIFAMILY DEVELOPMENT.
AND, AND I'M SURE THAT WILL FEED THIS, RIGHT? I MEAN, IF YOU'VE GOT TENANTS THAT MEET THE AAMI LEVELS THERE, YOU CAN OFFER 'EM BETTER RENTS FOR THE SAME PRODUCT HERE.
IT MAKES ALL THE SENSE IN THE WORLD.
THIS PROGRAM IS A HUGE PART OF OUR PORTFOLIO RIGHT NOW.
I'M GONNA HAVE TO LEAVE EARLY, SO I WANNA APOLOGIZE TO THE REST OF THE BOARD.
I'M GONNA TAKE SOME OF THEIR, I HAVE A QUESTION FOR KYLE.
SO WE ARE TRYING TO GET A PRELIMINARY APPROVAL FOR THIS APPLICANT.
SO HOW IS THIS DIFFERENT FROM THE OTHER APPROVALS THAT WE HAVE MADE BEFORE? SO THIS, THIS APPROVAL IS JUST FOR THE, THE TERM SHEET.
SO ALL OF THE, THE STANDARD TERMS THAT WE SEE ARE STRUCTURING FEE OF $250,000, UH, SALES COMMISSIONS AT THE FIRST CAPITAL EVENT OF 15% LESS DEBT INEQUITY AND PREFERRED RETURNS, AND THEN FUTURE SALES COMMISSIONS OF 2%.
UM, WE HAVE A HUNDRED PERCENT CONTROL OF THE PROPERTY ONCE THE LEASE EXPIRES.
UM, AND THEN ALSO OUR ANNUAL LEASE PAYMENT, UH, FOR, UH, YOU KNOW, OWNING THE PROPERTY, WHICH IS, UH, IN THIS CASE IT'S $325,000 A YEAR, INCREASING BY 3% ANNUALLY.
UH, SO THAT, THOSE ARE BA ARE BASIC STANDARD TERMS. UM, THE OTHER APPROVAL WE DID EARLIER TODAY, THAT WAS FOR THE ACTUAL FINAL APPROVAL OF THE DEFINITIVE DOCUMENTS TO CLOSE THE TRANSACTION.
ALL OF THOSE DOCUMENTS NEED TO BE, UM, UH, MODIFIED AND, UH, INCLUDE AND, AND UPDATED FOR THIS DEVELOPMENT FOR IT TO ULTIMATELY CLOSE.
WE ALSO HAVE THE ZONING CASE, UH, OUT OUTSTANDING THAT WILL AFFECT WHETHER OR NOT THIS EVEN MOVES FORWARD.
BUT WHAT WE DO IS WE TRY TO APPROVE THE TERM SHEET AND THE MOUS SO THAT THE DEVELOPER KNOWS THAT THEY HAVE A DEAL THAT THEY CAN WORK WITH AND IT CAN, IT GIVES THEM COMFORT TO BE ABLE TO MOVE FORWARD AND SPEND ADDITIONAL DOLLARS ASSOCIATED WITH THE ZONING CHANGE.
UH, OUR PROCESS IS, IS RELATIVELY EASY TO GET THROUGH A ZONING APPLICATION, UH, IS EXTREMELY EXPENSIVE.
SO MAKING SURE THAT WE HAVE NEGOTIATED THIS TERM SHEET, UH, AND, AND WE ARE, WE'RE ON THE SAME PAGE, IS, IS VERY IMPORTANT.
SO THAT'S KIND OF, UH, THE DIFFERENCE BETWEEN WHAT WE JUST APPROVED TODAY, THE, THE TWO ITEMS TODAY.
AND, UH, THERE'S NOT TOO MUCH DIFFERENT AS FAR AS, UH, THE, THE ACTUAL MOU FROM OTHER DEVELOPMENTS THAT WE HAVE APPROVED RECENTLY.
AND MY NEXT QUESTION IS FOR THE APPLICANT.
UM, DO YOU HAVE A PLAN TO KEEP MINORITY BUSINESSES INVOLVED IN THE, THE CONSTRUCTION PROCESS? UH, WE DO.
AND THAT'S A, IT'S A GOOD QUESTION.
I DON'T KNOW THE DETAILS OF HOW WE DO THE M W B E, BUT I, BUT I, I BELIEVE THAT WE DO.
UH, AND I THINK THAT WAS IN PART OF THE APPLICATION.
I'LL HAVE TO, I'LL HAVE TO GET REACQUAINTED WITH WHAT THOSE, UH, UH, REQUIREMENTS ARE, BUT I KNEW, I DO KNOW WE ARE IN INVOLVED IN IT.
HONOR ANY OTHER QUESTIONS OR COMMENTS ON ITEM NUMBER SIX? HEARING I'M SAYING NONE.
UH, DO WE HAVE A MOTION?
ALRIGHT, VICE PRESIDENT PHONE MCC CALL.
AYE, SECRETARY SCOTT? UH, CAN YOU REPEAT YOURSELF? I'M SORRY,
[00:40:01]
I CAN BARELY HEARDIRECTOR TOLEDO APPROVED DIRECTOR PA YES.
WE HAVE APPROVED ITEM NUMBER SIX, LET THE RECORD REFLECT.
MOVING ON TO ITEM NUMBER SEVEN, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING AND NEGOTIATION AND EXECUTION OF A TERM SHEET FOR TROVE VALOR IN PARTNERSHIP WITH LAVORO ACQUISITIONS LLC TO BE LOCATED AT 45 15 LANCASTER ROAD.
OKAY, THIS IS ANOTHER ONE OF THOSE DEVELOPMENTS THAT HAS BEEN, UH, IN THE WORKS FOR AN EXTREMELY LONG TIME.
THIS SITE HAS SEEN VARIOUS ITERATIONS.
IT'S ON A CITY OWNED PIECE OF LAND.
IT'S BEEN CALLED VARIOUS THINGS LIKE PATRIOTS CROSSING AND OTHER DEVELOPMENTS THAT NEVER QUITE WENT THROUGH.
HOWEVER, UH, RECENTLY, OR I GUESS BACK IN 2021, UH, WE'RE ACTUALLY 2020 NOW.
THE CITY COUNCIL ISSUED A MEMO CALLED THE THOUSAND UNIT AFFORDABLE HOUSING CHALLENGE.
AND THE PURPOSE OF THIS MEMO, UH, WAS TO ACTIVATE CITY OWNED PARCELS NEAR DART RAIL STATIONS.
AND SO 45 15 WAS ONE OF THE, THE ADDRESSES THAT THE CITY CITY PLANNING DEPARTMENT IDENTIFIED AS BEING CITY OWNED AND AVAILABLE FOR DEVELOPMENT NEAR A DART RAIL STATION, UM, CONSIDERED.
SO WE, THERE WAS AN RFP TO IDENTIFY THE HIGHEST QUALITY BIDS ON THIS SITE, AND THERE WAS ALSO FOUR OTHER SITES THAT WERE AS PART OF THIS.
R F P TWO OTHER DEVELOPERS WERE SELECTED FOR TWO OF THE OTHER SITES.
UM, THOSE ONES ARE ALSO CONTEMPLATING POTENTIAL P F C PARTNERSHIPS, BUT ARE, UH, LESS FURTHER ALONG THAN, UH, THIS DEVELOPMENT ZONE.
UH, WE'LL BE ON THE LOOKOUT FOR THOSE AT A LATER DATE.
UM, BUT THIS, THIS DEVELOPMENT HAS, UH, WAS WAS AWARDED BY, BY STAFF THROUGH A, UH, PROCUREMENT, UH, IN JANUARY OF 2020 JANUARY OF 2021, APPROVED BY COUNSEL IN MARCH OR, UH, IN MAY OF 2021.
IT'S A 330 U UNIT CLASS, A MIXED INCOME DEVELOPMENT.
THERE'S A LOT OF INFORMATION ABOUT THE, THE DESIGN.
THERE'S ALSO RETAIL PADS ON THE SITE.
UM, IT'LL BE, UH, 50% MARKET, 40% AT 80% AAMI, AND 10% AT 60% AAMI BASED ON, UH, WHAT WAS PRESENTED TO COUNCIL AND THE, THE PROCUREMENT, UH, UH, WE'VE CONFIRMED THAT, UH, EVEN WITH THE CITY, IT IS CONTEMPLATED THAT THE CITY WILL BE INCLUDING THE LAND IN THIS DEVELOPMENT, UH, TO MAKE IT, TO MAKE A PENCIL.
UH, WE'VE CONFIRMED THAT IT'S STILL, BUT FOR THE PFC PARTNERSHIP ON THIS DEVELOPMENT, UH, IT, IT DOES NOT PENCIL AND WOULDN'T BE ECONOMICALLY FEASIBLE.
UM, IT HAS THE, THE SAME, UH, GENERAL DEAL TERMS AS THE REST OF OUR, UM, DEVELOPMENTS BECAUSE THE MARKET RENTS AREN'T QUITE IN, UH, THEY'RE, THEY'RE BARELY AT THE 80% AAMI RIGHT NOW.
UH, THE FIRST 10 YEARS OF PAYMENTS ARE GOING TO BE INCREASING BY 2%, SIMILAR TO WHAT WE'VE DONE IN, IN PREVIOUS YEARS DEALS.
AND THEN THEREAFTER, IT'LL BE AT THE 3% INCREASE.
UM, LIKE I SAID, THIS HAS BEEN APPROVED BY COUNCIL, WAS, WAS, UH, CHAMPIONED BY, UH, THE VARIOUS ASSIGNERS OF THE, THE COUNCIL MEMO CALLED THE THOUSAND UNIT AFFORDABLE HOUSING CHALLENGE.
THIS IS THE NEXT STEP IN THAT, IN THAT PROCESS.
UM, AND, UH, I DO HAVE, LAVORO CAPITAL IS HERE TODAY TO KIND OF WALK THROUGH THE PROP PROPERTY AND ANSWER ANY, ANY QUESTIONS YOU MAY HAVE ON THE DEVELOPMENT.
SO WITH THAT, I'LL TURN IT OVER TO WILL HIGHTOWER AND, UH, GO FROM THERE.
I DON'T KNOW IF, IF YOU WANNA CYCLE THROUGH THEM, INTRODUCE YOURSELF AND SURE.
UM, I'M WILL HIGHTOWER WITH LAVORO.
AS CAL SAID, WE, UH, WE'RE SELECTED AS THE, UH, DEVELOPER FOR THIS SITE THROUGH THE 1000 UNIT CHALLENGE, AND WE'RE HONORED TO BE SELECTED AND, AND LOOKING FORWARD TO DISCUSSING THIS WITH YOU GUYS TODAY.
UH, WE'LL GO TO THE NEXT SLIDE.
SO LAVORO IS A REAL ESTATE INVESTMENT AND DEVELOPMENT COMPANY BASED HERE
[00:45:01]
IN DALLAS.WE FOCUS EXCLUSIVELY ON AFFORDABLE HOUSING.
WE HAVE SEVERAL, UH, ACQUISITIONS WE HAVE MADE AND DEVELOPMENTS IN THE WORKS WE'RE WHOLLY OWNED BY IRIN RESIDENTIAL GROUP.
IRIN IS A, UH, MARKET RATE DEVELOPER HERE WITH A LONG, STRONG TRACK RECORD.
UH, WE'RE BASED IN DALLAS IN ABOUT EIGHT OR NINE MARKETS.
IRIN HAS DEVELOPED OVER 11,000 UNITS IN THE LAST 10 YEARS, TOTAL CAPITALIZATION OF 1.9 BILLION AND HAS ANOTHER THREE OR 4,000 IN THE PIPELINE.
UH, BECAUSE OF THIS, LAVORO CAN LEVERAGE ALL THE RESOURCES OF IRIN, WHICH WOULD INCLUDE, UH, DEVELOPMENT EXPERIENCE, ASSET MANAGEMENT EXPERIENCE, UH, CAPITAL MARKETS.
UM, SO WE HAVE, WE HAVE STRONG RESOURCES AND, AND WE'RE WELL CAPITALIZED.
WE CAN, UH, GUARANTEE THE DEBT ON ANY SUBSTANTIAL DEVELOPMENT PROJECT.
WE ALSO HAVE DEEP RELATIONSHIPS WITH THOSE DEBT AND EQUITY SOURCES.
SO WE, UH, FEEL GOOD ABOUT OUR ABILITY TO CAPITALIZE THIS DEAL.
AND THERE'S A CERTAINTY OF EXECUTION WITH THIS SITE.
UM, THROUGH THE POTENTIAL PFC STRUCTURE, WE WOULDN'T HAVE TO RELY ON FEDERAL SUBSIDIES OR TAX CREDITS.
AND SO WE BELIEVE THIS IS A, A GREAT WAY, UH, AND AS KYLE MENTIONED EARLIER, A CLEAN WAY TO MAKE, UH, SOMETHING HAPPEN THAT OTHERWISE WOULD NOT BE POSSIBLE.
SO THIS HAS A MULTIFAMILY COMPONENT AND A RETAIL COMPONENT.
THE RETAIL DEVELOPER, UH, ODDLY ENOUGH, TERRENCE MAIDEN, THE NAME THAT WAS MENTIONED A LOT IN THE LAST PRESENTATION, UH, HE'S OUR PARTNER ON THIS DEAL.
AND SO, UH, AS YOU GUYS ARE PROBABLY FAMILIAR WITH, TERRANCE HAS A LOT OF EXPERIENCE WITH, UH, COMMUNITY REVITALIZATION EFFORTS.
UH, HE'S DOING THE RED BIRD MALL PROJECT RIGHT NOW.
HE, UM, HAS A LOT OF EXPERIENCE WITH TENANT SELECTION AS WELL FOR RETAIL AND COMMUNITY OUTREACH.
SO WE'RE REALLY PROUD TO HAVE HIM AS A PARTNER HERE.
AND, UM, HE, UH, COULDN'T MAKE IT TODAY, BUT WE'LL BE, UH, IS SUPPORTING THIS DEAL.
UH, I WON'T SPEND TOO LONG ON THIS SLIDE, BUT AS KYLE MENTIONED, 1000 UNIT CHALLENGE, UM, ENCOURAGES TRANSIT ORIENTED, UH, MIXED INCOME DEVELOPMENT, SOMETHING THAT DALLAS, UH, HAS A DEFICIT OF, WE BELIEVE.
AND THIS IS A GREAT WAY TO ADDRESS THAT.
AND THE CITY PLEDGED TO, UM, CHOOSE, YOU KNOW, THE BEST APPLICANT FOR EACH SITE AND WORK WITH THEM ON ZONING AND OTHER MATTERS TO, TO MAKE THESE HAPPEN.
SO THE NEXT SLIDE HAS JUST A QUICK SUMMARY OF THE SITE.
SO RIGHT NOW IT'S VACANT LAND.
UH, YOU CAN SEE IT'S ALONG LANCASTER ROAD.
UH, IT'S JUST IN BETWEEN I 35 AND I 45, AND IT'S DIRECTLY ACROSS THE STREET FROM THE DALLAS VA MEDICAL CENTER.
AND THE DART STOP IS IN BETWEEN OUR SITE AND THE MEDICAL CENTER.
SO IT'S DIRECTLY ADJACENT TO THE SITE.
AND, UM, THERE, THERE'S OTHER, UH, SINGLE FAMILY RESIDENTIAL, UH, BEHIND THE SITE.
THERE'S, UH, SOME COMMERCIAL, SOME OTHER MULTI-FAMILY, UH, VERY LITTLE NEW MULTI-FAMILY PRODUCTS IN THE AREA.
UH, JUST AS SOME OF THESE OTHER, UH, PRESENTERS HAVE MENTIONED, THIS WOULD BE A GREAT WAY TO BRING A HIGH QUALITY NEW PRODUCT TO THE AREA.
UH, OUR NEXT SLIDE HAS SOME PRELIMINARY IMAGES.
UH, THESE ARE ALL JUST SAMPLE IMAGES FROM OTHER DEVELOPMENTS, BUT GENERALLY SPEAKING, OUR VISION IS TO DELIVER A, A MIXED INCOME HOUSING DEVELOPMENT THAT REALLY INTEGRATES WITH THE COMMUNITY.
UH, WE DON'T JUST WANNA COME IN AND PLOP SOMETHING DOWN THAT, UH, WORKS SOMEWHERE ELSE.
WE WANNA MAKE, YOU KNOW, BUILD SOMETHING THAT REALLY WORKS IN THIS COMMUNITY.
UH, IT WOULD IMPROVE CONNECTIVITY WITH, UH, BOTH THE MEDICAL CENTER AND THE DART STATION AND HOPEFULLY PROVIDE SOME REALLY VIBRANT RETAIL SPACES FOR THE BENEFIT OF THE COMMUNITY.
UM, A LITTLE MORE DETAIL ON THE PROJECT.
YOU CAN SEE THE MEDICAL CENTER IS ACROSS THE STREET AND THE DART STATION IS ACTUALLY IN THE MIDDLE OF LANCASTER ROAD THERE IN THE MIDDLE.
WE'RE GONNA HAVE A MIX OF STUDIOS, ONE BEDROOMS, TWO BEDROOMS, AND THREE BEDROOMS. AND JUST LIKE THESE OTHER DEALS, HALF OF THOSE WILL BE AT AFFORDABLE RATES.
UM, 40% UNITS AT 80% AAMI AND, AND 10% AT 60 FOR DEEPER LEVELS OF AFFORDABILITY.
THERE'LL BE FOUR STANDALONE RETAIL PADS.
WE'LL HAVE A, A PRELIMINARY SITE PLAN, I'LL SHOW YOU IN A SECOND.
UH, WE'RE GONNA HAVE ENCLOSED, UH, ABOVE GROUND STRUCTURED PARKING FOR THE MULTI-FAMILY RESIDENCE.
THIS WILL BE SURROUNDED BY THE MULTI-FAMILY PORTION, SO THIS WON'T BE VISIBLE FROM THE ROAD OR FROM NEIGHBORS.
AND THEN WE'RE GONNA HAVE SURFACE PARKING FOR THE RETAIL CUSTOMERS.
UH, WE'VE ALREADY BEEN WORKING WITH SERGEANT STEVENS AT THE DALLAS POLICE DEPARTMENT TO TALK ABOUT PUBLIC SAFETY.
UH, IT'S BEEN A CONCERN THAT'S COME UP.
UH, WE TALKED ABOUT LIGHTING CAMERA MONITORING, SO THAT'S SOMETHING THAT IS ON OUR RADAR AND THAT WE HAVE ALREADY HAD CONVERSATIONS ABOUT.
AND THEN AT THE BOTTOM YOU CAN JUST SEE SOME, SOME STANDARD AMENITIES THAT ARE, ARE TYPICAL OF ANY NEW MULTIFAMILY CONSTRUCTION, UH, KIND OF IN THE DALLAS AREA.
AND SO WE WOULD EMPHASIZE JUST A HIGH QUALITY PRODUCT THAT WE BELIEVE WOULD BE, UM, RARE FOR THIS AREA.
UH, AGAIN, THIS IS PRELIMINARY.
UH, THIS IS NOT FINAL YET, BUT THIS GIVES A, A GOOD FEEL FOR WHAT WE ARE LOOKING TO DO.
SO THE, UH, THE ORANGE IS THE RETAIL, SO YOU CAN SEE THE FOUR PADS THERE.
IT ACTUALLY DOES EXTEND ACROSS ATLAS DRIVE.
THEY'RE ON THE RIGHT SIDE OF THE SCREEN.
UM, SO THESE WOULD BE STANDALONE RETAIL.
[00:50:01]
AND, UH, MANAGED BY TERRENCE MAIDEN WITH HIS COMPANY, RUSSELL GLENN.YOU CAN SEE THE SURFACE PARKING SURROUNDING THOSE.
AND THEN THE GOLD OR YELLOW IS THE RESIDENTIAL COMPONENT.
UH, SO YOU CAN SEE THAT WRAPS AROUND THE PARKING GARAGE, WHICH IS THAT GRAY BOX IN THE MIDDLE, UH, THAT IS AN ABOVE GROUND PARKING, BUT LIKE I SAID, SURROUNDED BY THE MULTIFAMILY, NOT VISIBLE FROM THE ROAD.
AND THEN THE BLUE IS OUR AMENITIES.
SO YOU CAN SEE THE POOL DOWN THERE ON THE BOTTOM RIGHT, AS WELL AS FITNESS CENTER, BUSINESS CENTER, CLUBHOUSE, LEASING OFFICE.
AND THEN ONE REALLY COOL ASPECT IS THIS COMMUNITY SPACE.
UM, IT'S KIND OF ON THE LEFT SIDE NEAR THAT SECOND RETAIL PAD.
WE WOULD ENVISION THIS BEING ROUGHLY 3000 SQUARE FEET OF SPACE THAT'S VERY FLEXIBLE AND CAN, UH, BE USED BY COMMUNITY, WHETHER THAT'S A JOB FAIR, AN ART SHOW, UM, YOU KNOW, SOMETHING OF THAT NATURE WHERE THEY CAN COME IN, YOU KNOW, MAYBE A NONPROFIT NEEDS A SPACE FOR AN EVENT.
AND WE, WE VIEW THAT AS A WAY FOR THE SURROUNDING STAKEHOLDERS TO REALLY HAVE SOME OWNERSHIP AND FEEL LIKE THEY CAN BE ON THE PROPERTY AND, AND USE WHAT IS BUILT.
IT'LL BE THREE AND FOUR STORIES.
SO THE KIND OF INNERMOST PARTS WILL BE FOUR STORIES.
IT'LL STEP DOWN TO THREE, UH, ALONG THE DELEY DRIVE, WHICH IS AT THE BOTTOM OF THE SCREEN, WHICH IS WHERE THE SINGLE FAMILY RESIDENTIAL IS.
WE ALSO HAVE THESE COURTYARDS.
AND THE IDEA WITH ALL OF THAT IS JUST TO INTEGRATE WHERE THERE'S NOT SOME MASSIVE HUGE WALL OF OF MULTI-FAMILY UNITS, UH, STARING DOWN ONTO A SINGLE FAMILY STREET, RATHER IT'S COURTYARD THAT STEPS DOWN TO THREE STORIES AND, AND REALLY INTEGRATES WITH THE SURROUNDING COMMUNITY.
UH, NEXT SLIDE HAS SOME SAMPLE ELEVATIONS.
UH, AGAIN, THESE ARE PRELIMINARY.
UH, COMMUNITY OUTREACH IS A BIG PART OF THIS PROJECT, SO WE'RE COMMITTED TO REALLY A COMPREHENSIVE APPROACH.
SEEK INPUT FROM THE SURROUNDING COMMUNITY, EMPHASIZE FLEXIBILITY IN THE PRODUCT PROJECT DESIGN, AND REALLY BUILD ON THE EXISTING STRENGTHS OF THE NEIGHBORHOOD.
SO WE'VE HAD A FEW MEETINGS, UH, ALREADY.
KYLE MENTIONED THIS PROJECT'S BEEN, UH, BEING BOUNCED AROUND FOR A WHILE.
AND SO WE'VE HAD TIME TO MEET WITH SEVERAL PEOPLE.
UM, COUNCIL MEMBER CAROLYN ARNOLD HAS BEEN A GREAT ALLY FOR US.
SHE IS SUPPORTIVE OF THIS DEVELOPMENT AND, UH, ACTUALLY ATTENDED TWO COMMUNITY MEETINGS THAT WE HELD.
WE HELD THOSE OVER ZOOM DURING COVID, SENT OUT MAILERS TO SURROUNDING BUSINESSES AND NEIGHBORS, UH, SOUGHT INPUT FROM THEM ON SPECIFICALLY THE RETAIL PART.
YOU KNOW, WHAT, WHAT WOULD YOU GUYS WANT IF YOU HAD YOUR IDEAL PICK, WHAT KIND OF TENANTS WOULD YOU LIKE TO HAVE? UM, AND THAT'S SOMETHING THAT TERRENCE HAS TAKEN INTO ACCOUNT AND, AND HE IS GONNA BE PATIENT AS HE CHOOSES THE TENANTS.
UM, HE'S HAD SOME PRELIMINARY CONVERSATIONS WITH SOME LOCAL AND NATIONAL GROUPS.
UM, AND, AND WE'RE JUST GONNA BE PATIENT FOR THE RIGHT USE.
WE'RE ALSO GONNA LEAVE THOSE PADS AS GREEN SPACE UNTIL WE ACTUALLY HAVE THE TENANT IN PLACE AND WE CAN BUILD AND GET THEM OCCUPIED QUICKLY.
SO TO CLOSE WE HAVE, UM, JUST THE PARTNERSHIP TERMS. UH, I, I WON'T READ THROUGH ALL THESE AS THESE, UH, I THINK ARE FAIRLY STANDARD.
UH, OBVIOUSLY LAVORO WILL, UH, BUILD THE PROJECT.
PFC WILL BE THE OWNER OF THE LAND AND THE IMPROVEMENTS.
UH, OVER HERE ON THE RIGHT SIDE, WE HAVE THE TOTAL PROJECT BUDGET, UH, AGAIN PRELIMINARY, BUT A LITTLE OVER 63 MILLION.
AND OF COURSE THE PFC WON'T TAKE ANY LIABILITY, UM, AND, AND WON'T HAVE TO FUND ANY OF THE DEVELOPMENT BUDGET.
NEXT SLIDE HAS THE PC'S BENEFITS, UH, AFFORDABLE HOUSING, OF COURSE, UH, TRANSIT-ORIENTED DEVELOPMENTS GOAL OF THE CITY.
UH, THIS, WE THINK THIS WOULD BE A GREAT WAY TO ACCOMPLISH THAT.
AND THEN THE FINANCIAL, UH, PIECES AS WELL.
UH, IT'S ON THE, THE PREVIOUS SLIDE, BUT AGAIN, THESE ARE OUR TYPICAL TERMS. STRUCTURING FEE, FINANCIAL ADVISOR FEE, THE ANNUAL PAYMENTS AS WELL AS THE SHARE OF CAPITAL EVENTS, UM, CAN TALK ABOUT THOSE MORE IF NEEDED.
UM, BUT TO CLOSE WE THINK IS A GREAT OPPORTUNITY TO ACCOMPLISH THE GOALS OF THE 1000 UNIT CHALLENGE AND WE THINK PFC STRUCTURE IS A GREAT WAY TO DO THAT.
AND WE'D HAPPY, BE HAPPY TO ANSWER ANY QUESTIONS.
UH, DIRECTOR KELLY? UM, SORRY, SO WHAT IS THE PROPOSED TOTAL SQUARE FOOTAGE OF THE RETAIL? SO TERRANCE IS, IS LOOKING AT THAT RIGHT NOW AND I'LL HAVE TO GET BACK TO YOU ON AN ACTUAL NUMBER.
WE HAVE FOUR STANDALONE SITES.
UM, THEY WOULD NOT BE BIG ENOUGH FOR, YOU KNOW, A A, A GROCERY OR SOMETHING OF THAT NATURE.
THEY WOULD BE BIG ENOUGH FOR MAYBE A, UM, A STARBUCKS CALL IT.
I'M NOT SAYING THAT'S A TENANT WE HAVE, BUT JUST AS A, AN IDEA OF KIND OF THE SIZE.
SO THEY WOULD BE BUILT ON LAND THAT IS GONNA BE CONTRIBUTED BY THE CITY AND THEY WOULD HAVE NO, NO TAX, RIGHT? THAT'S CORRECT.
SO, UM, ON PREVIOUS STRUCTURES THAT WE'VE DONE, WE HAVE USED CONDOMINIUM STRUCTURE BECAUSE THE RETAIL PORTION IS NOT SUBJECT TO THE TAX EXEMPTION.
SO I DON'T KNOW IF I CAN'T, I DON'T HAVE THE BENEFIT OF LOOKING AT THE PRESENTATION.
I DIDN'T HAVE SLIDES AHEAD OF TIME.
[00:55:01]
COULD POTENTIALLY PLOT THESE OUT SEPARATELY.IS THIS SOMETHING WE CAN LOOK INTO AS WE'RE GOING THROUGH NEGOTIATIONS? UM, IT SHOULDN'T HOLD UP A PRELIMINARY APPROVAL THIS, BUT IF YOU WILL LOOK AT HOW WE NEED TO STRUCTURE THIS MORE APPROPRIATELY BECAUSE THAT SECTION WILL NOT BE, THE STATUTE IS VERY CLEAR THAT THERE ARE ONLY CERTAIN USES THAT ALLOW FOR THE PROPERTY TAX EXEMPTION AND RETAIL IS NOT GONNA BE ONE OF 'EM.
SO WE WILL BE LOOKING AT WAYS THAT WE CAN, THAT'S GOOD.
I, I CAN'T SUPPORT DOING TAX ABATEMENTS FOR, FOR RETAIL AND BECAUSE I DON'T THINK THAT'S WHAT WE'RE HERE FOR.
AND THE, THE APPRAISAL DISTRICT WOULD NOT APPROVE THAT.
SO THE, THE LAND THAT CITY'S CONTRIBUTING DOES INCLUDE THE RETAIL, BUT THANKS FOR THAT CLARIFICATION ON THE ACTUAL TAX PIECE.
I WILL SAY THAT THE RETAIL COMPONENT THOUGH IS, WAS ONE OF THE CONTRIBUTING FACTORS TO, UH, THE CITY ACTUALLY BEING, BEING EXCITED AND, AND WANTING TO HAVE THE DEAL DONE.
I GET NOT SUBSIDIZING THE RETAIL AND WE STATUTORILY CAN'T DO THAT ANYWAYS.
BUT, UH, I I, WE ARE VERY HAPPY AND FROM WHAT I'VE HEARD FROM THE COMMUNITY MEETINGS I ATTENDED, THE RETAIL COMPONENT IS A, IS A BIG FACTOR HERE THAT ARE SUPPORTIVE OF, BUT WE JUST NEED TO MAKE SURE WE'RE NOT INCENTIVIZING THAT ASPECT OF IT CUZ WE LITERALLY CAN'T LEGALLY.
SO I, I I WOULD SAY THAT I'VE BEEN BY THIS PROJECT, UH, I'M SORRY THE SITE, UH, SEVERAL TIMES AND IT'S, UH, TO ME FOR THE MULTIFAMILY PART OF IT, IT'S JUST PERFECT.
IT JUST WORKS RIGHT IN WITH THE CITY'S GOALS.
UH, YOU KNOW, IF YOU'RE AN EMPLOYEE AT THE VA OR HAVE FAMILY AT THE VA ACROSS THE STREET, YOU KNOW, YOU HAVE A PLACE TO LIVE.
UM, YOU KNOW, FOR ALL THE DIFFERENT, UH, WAGE EARNERS, UH, AT THE VA, UM, I ASSUME THE VA'S GONNA BE AROUND FOR QUITE SOME TIME.
IT WON'T BE LIKE IN OTHER CITIES WHERE, UH, YOU KNOW, THEY HAVE, THERE WAS A A TIME PERIOD WHERE THE VAS DID CLOSE AND CITIES ACROSS TEXAS AND THAT, YOU KNOW, KILLED THE COMMUNITIES.
BUT I WOULD SUSPECT THAT, UH, IN DALLAS AND THIS ONE BEING SO LARGE, THAT WOULD NOT HAPPEN HERE THOUGH IT, IT IS SOMETHING THAT, YOU KNOW, NOT EVERYBODY THINKS ABOUT, BUT IF IT DID HAPPEN, IT WOULD BE, UH, IT'D BE HORRIBLE FOR THE WHOLE COMMUNITY INCLUDING THIS PROJECT.
UH, I LIKE THE USE AND I APPRECIATE THE CLARIFICATION THAT, UH, RETAIL, UH, WILL NOT BE SUBSIDIZED.
I DID HAVE ONE QUESTION ABOUT, UH, THAT I COULDN'T QUITE SEE FROM THE PRESENTATION.
SO IS THE CITY GOING TO, UH, GIFT THE LAND, OR HOW, HOW IS THAT WORKING? YEAH, SO IT'LL BE PROVIDED TO THE DEVELOPER BASED ON A DEVELOPMENT AGREEMENT THAT WILL BE EVENTUALLY APPROVED BY CITY COUNCIL TO EFFECT THAT TRANSFER OF THE LAND THAT IS, UH, THAT PROCESS AND THAT AGREEMENT.
AND, AND EVERYTHING IS HANDLED BY OUR REAL ESTATE, THE CITY'S REAL ESTATE DEPARTMENT AND OUR CITY ATTORNEYS THAT HANDLE ALL REAL ESTATE OF THE CITY.
AND IT'LL ALSO BE SUBJECT TO FINAL APPROVAL OF CITY COUNCIL.
SO THAT'S ANOTHER ASPECT OF THIS.
ALL OF THESE THINGS, BECAUSE THEY ARE COMPLICATED.
UH, WELL TO FOLLOW UP WITH THAT.
SO IT'S, IT'S NOT BEING GIFTED TO THE, ISN'T GIFTED TO THE PFC.
I GUESS, I MEAN, IT'S BEING GIVEN TO A, A PUBLIC ENTITY, IT'S INSTRUMENT TO THE DALLAS PUBLIC FACILITIES CORPORATION.
AND SO WE'LL JUST LEAVE IT FOR THE, UH, LAWYERS TO WORK OUT, UH, HOW THAT HAPPENS.
ES ESSENTIALLY, AND THAT'S, THIS IS THE PART OF THE CITY ATTORNEY'S OFFICE THAT I DON'T WORK WITH AS MUCH, BUT, UM, THAT IS, THAT, THAT IS THE PROCESS BY WHICH IT'LL BE, AND IT'LL ULTIMATELY REQUIRE COUNSEL APPROVAL.
UH, MR. OW, THANK YOU FOR YOUR PRESENTATION.
UH, AND AS YOU'VE MENTIONED, UH, DEFINITELY SOME HIGH QUALITY, UH, HOUSING IS NEEDED IN THIS AREA.
UH, THIS PROJECT SEEMS TO DEFINITELY BE AN UPGRADE OVER WHAT HAS ALWAYS EXISTED THERE.
UH, I'M ALSO A VETERAN, SO I USE THE, UH, VA QUITE FREQUENTLY.
UH, HAS THE ZONING BEEN IN PLACE FOR THIS YET, OR THIS GOES TO THE CPC AT A LATER DATE? SO WE'VE HAD SOME PRELIMINARY CONVERSATIONS WITH PLANNING AND URBAN DESIGN.
UM, THE ZONING CHANGES NEEDED ARE PRETTY SMALL.
THERE'S SOME SLIGHT VARIANCES IN DENSITY AND MAXIMUM FLOOR AREA, UM, THAT, THAT HAS NOT HAPPENED YET.
SO I, I GUESS, KIND OF SIMILAR TO THE LAST PROJECT THAT'S IN PROCESS, UH, WE BELIEVE THE CITY'S ALIGNED WITH US ON KIND OF THE, THE DESIRES FOR THE SITE.
UM, SO, SO WE DON'T ANTICIPATE THAT BEING A PROBLEM, BUT IT'S NOT COMPLETELY IN PLACE YET.
OUR, OUR OFFICE OF PLANNING AND URBAN DESIGN HAS BEEN A PARTNER IN THE, IN THIS, BECAUSE OF THE WAY THAT
[01:00:01]
IT WAS BROUGHT TO COUNCIL TO TELL US TO GET OUR ACT TOGETHER AND, AND START ACTIVATING SOME OF THESE SITES THAT WE OWN.SO WE PLANNING AND URBAN DESIGN HAS BEEN, UH, WORKING WITH HOUSING AS WELL AS, UH, CITY ATTORNEYS AND PROCUREMENT AND ALL THE OTHER GROUPS THAT ARE OUT THERE TO MAKE SURE THAT, UH, THAT WE'RE HELP HELPING GUIDE THIS THROUGH AS, AS QUICKLY AS POSSIBLE.
IT'S OBVIOUSLY TAKEN A LITTLE BIT LONGER WITH, WITH COVID AND, AND OTHER ASPECTS.
BUT, UH, YEAH, IT'S BEEN A, A TEAM EFFORT TO MAKE SURE THAT THIS ALL GOES, GOES THROUGH PROPERTY.
ANOTHER ASPECT OF THE, UH, THOUSAND UNIT HOUSING CHALLENGE WAS THAT ALL OF THE, ALL OF THE PROJECTS WILL GO THROUGH THE URBAN DESIGN PEER REVIEW PANEL AS PART OF THE PROCESS.
SO I THINK THIS SHOULD GO THROUGH, THROUGH THAT SOMETIME LATER THIS SUMMER.
I'M NOT SURE ON THE SCHEDULE, BUT THAT IS ALSO ANOTHER ASPECT OF, OF THIS DESIGN PLAN.
MR. OW, UM, WHAT, WHAT TYPE OF, UH, RETAIL, UH, MAY BE ENVISIONED IN THESE PARTICULAR SITE PADS THAT YOU HAVE? YOU HAVE, UH, THERE ARE FOUR, FOUR PADS.
AND, AND THEY'RE ALL STANDALONE, AND WE ENVISIONED THOSE BEING IDEALLY, UH, I KNOW YOU MENTIONED SOMETHING LIKE, UH, PERHAPS A STARBUCKS OR SOMETHING LIKE THAT, BUT, UH, BASED ON THE INPUT FROM THE COMMUNITY, THEN, WHAT GENERALLY HAS BEEN THE TYPE OF, UH, UH, I GUESS IF YOU COULD CENTER ON SOME TYPE OF RETAIL, SOME TYPE OF, UH, MARKET ENDEAVOR, WHAT WOULD THAT BE? SURE, YEAH.
SO ONE OF THE BIGGEST INPUT PIECES WE HEARD FROM THE COMMUNITY WAS THEY WOULD LOVE SOMETHING THAT'S LOCALLY OWNED, WHICH OF COURSE, WE, WE WOULD LOVE THAT AS WELL.
SO IF WE COULD FIND THE RIGHT, MAYBE THAT'S A, A RESTAURANT OWNER'S PROBABLY THE BEST, UH, USE I COULD IMAGINE OF THAT AS A, YOU KNOW, LOCAL RESTAURANT OWNER.
THEY WANT, THEY MAYBE LIVE IN THE COMMUNITY AND WANT TO HAVE A SPACE THAT, YOU KNOW, THEIR FRIENDS AND FAMILY CAN COME TO.
UM, WE WOULD ALSO LOVE A NATIONAL PRESENCE IN THERE AS WELL.
SO WE DON'T KNOW WHO THAT WOULD BE AT THIS POINT.
BUT TERRENCE HAS GOOD RELATIONSHIPS WITH MANY, UM, RESTAURANTS, COFFEE SHOPS, THINGS OF THAT NATURE.
UM, YOU KNOW, ALSO NEXT DOOR THERE'S, UH, SOME MULTIFAMILY, SOME RETAIL, AND THEY HAVE A, YOU KNOW, A DENTIST THAT HAS A GREAT PRACTICE THERE.
WHAT WE DON'T WANNA DO IS SLAP IN FOUR BANKS THAT HAVE NO COMMUNITY ENGAGEMENT THAT, UM, JUST PUT UP THEIR WALLS AT THE END OF EVERY DAY.
WE, UM, WE REALLY WANNA BE PATIENT AND FEEL LIKE WE HAVE PEOPLE THAT CARE ABOUT THE COMMUNITY.
I THINK THAT ONE OF THE BIGGEST REQUESTS WAS, YOU KNOW, SOME SORT OF SIT DOWN TYPE ACTUAL RESTAURANT.
AND I THINK THAT COULD CERTAINLY BE ACCOMPLISHED HERE.
I MEAN, THAT'S JUST WHAT I TOOK AWAY FROM THE COMMUNITY MEETINGS THAT I SAT IN.
SO YOU ALL ARE FAMILIAR WITH SOME OF THE, UM, LET'S SAY THE ECONOMIC TRENDS IN THE PAST THAT HAVE EXISTED ALONG THIS CORRIDOR.
UH, YOU'RE FAMILIAR WITH THE, UH, LANCASTER URBAN VILLAGE, WHICH IS IN THE 4,400 BLOCK.
SO YOU HAD, UH, AT ONE TIME THE URBAN LEAGUE OCCUPIED A PARTIC THAT ONE LARGE PARTICULAR BUILDING.
AND FROM THERE, YOU NOW HAVE, UH, A REAL NICE, AT THE TIME THAT I HAD VIEWED IT, UH, UH, YOU HAD SOME APARTMENT THAT ARE THERE, AND YOU ALSO HAD, UH, SOME RETAIL UNDERNEATH SOME OF THOSE, UH, SUBWAY, AND THERE'S A PIZZA.
I'M NOT SURE IF THEY'RE STILL THERE.
THERE'S A, THERE'S A PAPA JOHN'S AND A DENTIST, AND ACTUALLY THE VA HAS SOME OFFICE SPACE IN THERE AS WELL.
CAUSE THEY HAVE ENCOUNTERED PROBLEMS, UH, WITH THEIR RETAIL ASPECT.
AND I UNDERSTAND ALSO EVEN WITH THE, UH, EVEN WITH THE APARTMENTS, I'M NOT SURE WHAT THOSE, UH, EXACT PROBLEMS ARE, BUT THEY AREN'T FULLY LEASED.
THEY HAD CONCERNS AND PROBLEMS. HOW DO YOU ALL, UH, WHAT IS YOUR PLAN, UH, NOT TO GET BOGGED DOWN IN WHAT, WHAT HAS, UH, OCCURRED JUST REALLY, UH, HAS BEEN SAID RIGHT NEXT DOOR TO YOU? SURE.
UH, AND IT'S A, IT SEEMED TO HAVE BEEN A FINE DEVELOPMENT AT THE TIME, AND I'M WELL FAMILIAR WITH IT AS I SEE IT ALL THE TIME.
BUT, UH, THERE ARE VACANCIES THAT HAVE OCCURRED HERE.
WELL, I THINK IT'S A GREAT QUESTION BECAUSE THEY REALLY, THEY ARE RIGHT ACROSS MENTOR AVENUE FROM US, SO THEY'LL BE OUR NEIGHBOR.
AND, UM, I, I WOULD ANSWER THAT IN A FEW WAYS.
FIRST, I THINK, YOU KNOW, THE, THE DEVELOPER OF THAT PROJECT WENT BANKRUPT AND IS, UM, POTENTIALLY FACING JAIL TIME RIGHT NOW.
AND SO I THINK THAT THE MANAGEMENT OF THAT WAS NOT MAYBE A TOP PRIORITY.
WHEREAS FOR US, WE WOULD BRING IN THIRD, WE HAVE THIRD PARTY PROPERTY MANAGEMENT, UM, GROUP THAT IS WELL VERSED IN AFFORDABLE HOUSING AS WELL AS MARKET RATE HOUSING.
AND I THINK THEY WOULD OPERATE IT WITH, UM, YOU KNOW, YOU NEED STRONG MANAGERS, RIGHT? FOR, FOR A MIXED INCOME HOUSING DEVELOPMENT
[01:05:01]
WITH RETAIL DARK STATION, THERE'S A LOT GOING ON HERE.YOU NEED SOMEONE THAT'S GONNA BE ABLE TO, UM, YOU KNOW, REALLY CRACK DOWN ON IF TENANTS AREN'T FOLLOWING THE RULES, BE ABLE TO SAY, HEY, YOU NEED, YOU NEED TO FOLLOW THOSE RULES, OR YOU CAN'T LIVE HERE.
YOU KNOW, EVEN ALL THOSE LITTLE THINGS ADD UP TO REALLY CREATE ISSUES THAT CAUSE THESE VACANCIES YOU'RE REFERRING TO.
I THINK SECURITY IS ANOTHER BIG ONE.
UH, I DROVE PAST LANCASTER URBAN VILLAGE THE OTHER DAY.
YOU CAN DRIVE RIGHT IN THEIR PARKING GARAGE.
UH, WE WOULD NOT DO THAT HERE.
WE WOULD EMPHASIZE SECURITY MEASURES.
WE DON'T WANT TO SET THIS DEVELOPMENT APART FROM THE COMMUNITY WHERE IT'S JUST THESE MASSIVE WALLS YOU CAN'T SEE OVER.
BUT AT THE SAME TIME, WE WANNA MAKE IT WHERE, YOU KNOW, OUR RESIDENTS FEEL SAFE AND IT'S WELL LIT, AND, UM, THEY FEEL LIKE THEY CAN GO LET THEIR DOG OUT AT NIGHT AND, UM, YOU KNOW, PULL IN AND NOT HAVE THEIR CAR BE BROKEN INTO.
I KNOW CAR, UH, BREAK-INS HAVE BEEN A BIG ISSUE OVER THERE.
AND THEN THE RETAIL COMPONENT, UM, I LIKE TO THINK THAT OURS, OUR DESIGN WILL WORK BETTER THAN THEIRS.
WITH THE FREESTANDING STRUCTURES, THEIRS ARE IN LINE, UH, IT'S ALMOST LIKE A STRIP MALL IN THE BOTTOM OF THEIR DEVELOPMENT.
I THINK IT'S JUST NOT AS APPEALING.
THE PARKING IS TRICKY AND KIND OF CONFUSING TO FIGURE OUT.
UM, WE THINK THESE, UH, STANDALONE STRUCTURES WILL BE, HONESTLY, HAVE SOME MORE PERSONALITY TO THEM AND, AND BE BETTER LOOKING AND ALSO JUST BE EASIER TO ACCESS.
AND, YOU KNOW, ONE ISSUE WITH HAVING THE RETAIL CONNECTED WITH THE MULTI IS THAT YOUR, YOUR TENANT, YOUR, YOUR USERS MIX, RIGHT? YOUR, YOUR RESIDENTS AND YOUR RETAIL USERS ARE USING THE SAME PARKING AND THEY'RE PASSING EACH OTHER.
AND SO THIS WOULD KEEP IT A LITTLE MORE SEPARATE, WHICH I THINK WOULD HELP WITH THE SAFETY COMPONENT.
UM, SO IT'S A FEW DIFFERENT THINGS, BUT WE'VE, WE'VE CERTAINLY CONSIDERED, UM, YOU KNOW, HOW TO OPERATE THIS WELL.
WE'VE ALSO HAD, UH, MEETINGS WITH, UH, THE OFFICE OF INTEGRATED PUBLIC SAFETY SOLUTIONS TO GO THROUGH THIS DESIGN, MAKE SURE THERE'S NO BLIND SPOTS, CAMERAS ARE POSITIONED PROPERLY, THE LIGHTING IS, IS ENOUGH TO KEEP IT SAFE, BUT NOT INTERFERE WITH THE, THE SURROUNDING NEIGHBORS.
UH, JUST WORKING AND WALKING THROUGH ALL OF THAT, UH, THOSE, THOSE IDEAS AND, AND CRIME PREVENTION THROUGH ENVIRONMENTAL DESIGN WASN'T TAKEN INTO CONSIDERATION AT LANCASTER URBAN VILLAGE.
UH, I THINK WE WERE, WE WERE TALKING WITH, UH, COMMUNITY PROSECUTION THAT THERE'S THIS ALLEYS THAT ARE, ARE BLIND TO, TO EVERYTHING AND, AND WHO KNOWS WHAT CAN HAPPEN IN THERE.
SO DESIGNING THIS AND MAKING SURE THAT THAT ALSO, UH, HAS TAKEN PLACE IS, IT WAS ONE OF OUR TOP PRIORITIES AS WELL OF, UH, THE DEVELOPERS US, UH, COUNCILWOMAN ARNOLD AND THE COMMUNITY.
SO EVERYBODY WAS ALL INVOLVED WITH DISCUSSION, DISCUSSING THOSE ASPECTS.
MENTIONING, UH, LIGHTING, SINCE THIS HAS NOT GONE TO C P C, THEN I'M SURE THAT WILL BE DISCUSSED THERE.
UH, THE LIGHTING ALSO, UH, OTHER SAFETY COMPONENTS.
UM, DO YOU ALL PLAN ON PUTTING A SIDEWALK, UH, OUTSIDE AROUND YOUR PARTICULAR DEVELOPMENT, ESPECIALLY ALONG, UH, LANCASTER AVENUE? SO WE, ALONG LANCASTER? YES, DEFINITELY.
SO THE, THE CORNER WHERE THE TWO RETAIL PADS ARE ON THE TOP LEFT, WE ENVISION THAT BEING VERY PEDESTRIAN FRIENDLY, BECAUSE THAT IS BASICALLY GONNA CONNECT KIND OF WITH THE DART STATION, RIGHT? AND SO THERE WILL BE PLENTY OF SIDEWALKS, KIND OF PAVILION AREAS THERE.
UM, AS FAR AS ON THE OTHER SIDES, I, THAT JUST HASN'T BEEN FINALIZED YET, SO, SO I DON'T WANNA, UH, PROMISE ONE WAY OR ANOTHER, BUT THE KIND OF THE FRONT ENTRANCE THERE, WHERE THE COMMUNITY SPACE IS, THE RETAIL, THERE'LL BE, UM, THE SURFACE PARKING ALONGSIDE THE SIDEWALKS THAT, UM, HIT THAT CORNER OF MENTOR AND LANCASTER.
UH, WE ENVISION PEOPLE BEING ABLE TO COME TO AND FROM THE DART STATION VERY EASILY.
THAT'S AN IMPORTANT PART OF THIS.
YOU HAVE INTERESTS IN EXITS, UM, NOT ONLY FROM LANCASTER, BUT WE SAY LANCASTER.
LANCASTER, YOU SAY IN, UH, FORT WORTH,
PENNSYLVANIA, STUFF LIKE THAT.
UH, HERE IS LANCASTER IN DALLAS
UM, BUT UH, I SEE THAT YOU HAVE ON MENTOR AND ATLAS, YOU HAVE, UH, SOME INTERESTS IN EXITS, UH, WITH, IS THAT, UH, UH, APPROPRIATE THAT, UH, IN OTHER WORDS, YOU DON'T NEED AN EMERGENCY EXIT FOR A FIRE DEPARTMENT OR WHAT BECAUSE OF THIS LATITUDE HERE, OR WHAT? YEAH, THAT, THAT'S CORRECT.
WE'VE, UH, WORKED WITH OUR ARCHITECTS ON THIS DESIGN AND, UM, LIKE I SAID, THIS ISN'T FINAL, BUT, UM, THAT'S BEEN TAKEN INTO ACCOUNT ON THIS, AND I WOULD HAVE TO GET SOME MORE INFORMATION ON THAT.
BUT THE ENTRAN, THE, YOU KNOW, INTERESTS WE HAVE HERE, THEY DON'T COME OUT ON THE SINGLE FAMILY SIDES.
AND SO WE DON'T ENVISION THIS CAUSING ANY BACKUP TRAFFIC ALONG THE SINGLE FAMILY ROADS, WHICH IS IMPORTANT TO US.
UM, AND I BELIEVE THIS DOES COMPLY WITH ALL FIRE ACCESS.
AND LAST QUESTION, UH, HAS IT BEEN, BEEN, UH, CONSIDERED OR, UH, IS THERE ANY TYPE OF LEEWAY IN YOUR, UH, I DON'T KNOW HOW BEST TO PUT IT SINCE I'M NOT A RETAIL PERSON OR REAL ESTATE PERSON, OR ONE OF THESE, UH, DEVELOPMENT,
[01:10:01]
UH, BRAINS, UH, BUT DO YOU GUYS HAVE, HAVE YOU DISCUSSED, I'LL JUST PUT IT THAT WAY, ANY, UH, SINCE YOU'RE DIRECTLY ACROSS FROM THE VA, SOMETIMES THERE MAY BE, THERE'S A POSSIBLE DEMAND FOR SOME TYPE OF, UH, UH, SHORT TERM HOUSING, IF YOU WILL, UH, PEOPLE WHO HAVE TO COME AND, AND, UH, YOU KNOW, LOVED ONES GOING THROUGH TREATMENTS OR THAT MAY BE TWO OR THREE DAYS A WEEK, UH, MONTH, YOU KNOW, OPERATIONS, THINGS LIKE THAT.UH, IS THERE ANYTHING IN THIS, UH, CONCEPT AND, AND I'M NOT SAYING IT HAS TO BE, I WAS JUST INTERESTED OR WHAT ANY TYPE OF DISCUSSIONS CAME UP WITH THAT AS TO, UH, BEING ABLE TO SERVICE, UH, THE VA POPULATION SINCE THEY ARE DIRECTLY ACROSS THE STREET? SURE.
NO, IT, IT'S A GREAT QUESTION.
IT'S SOMETHING THAT WE'VE BEEN DISCUSSING.
YOU KNOW, WE BELIEVE THE VA AND THEN THE DART STATION ARE THE TWO KEY DRIVERS OF THIS SUB-MARKET.
AND, YOU KNOW, I THINK WE WOULD LOVE TO PARTNER WITH THE VA.
WE'VE TALKED WITH THEM A LITTLE BIT.
NOTHING'S IN STONE, BUT WE'D LOVE TO PARTNER.
MAYBE SAY, YOU KNOW, YOU GUYS HAVE A CORPORATE LEASE FOR THREE OR FIVE UNITS OR SOMETHING OF THAT NATURE.
AND THOSE ARE AVAILABLE FOR, LIKE YOU SAID, SHORT TERM NEEDS OF, UM, THEIR USERS OR THEIR USERS' FAMILIES.
UH, WE, WE WOULD LOVE TO HAVE A PARTNERSHIP WITH THEM, AND WE'D LOVE TO HAVE PEOPLE THAT WORK THERE, YOU KNOW, COME LIVE HERE.
WELL, I WOULD ENCOURAGE THAT IF, IF THAT'S POSSIBLE WITHIN THIS STRUCTURE, BUT I WOULD DEFINITELY ENCOURAGE THAT.
AND THEN, UH, FINALLY, EVEN THOUGH I SAID THAT, WHAT WAS MY FINAL ONE, BUT THIS IS IT,
SO WE, WE HAVE NOT HAD ANY CONVERSATIONS DIRECTLY WITH DART.
UH, WE HAVE WELCOME THOSE, BUT, UM, FRANKLY THAT, THAT HAS NOT BEEN SOMETHING THAT'S BEEN DISCUSSED YET.
UM, COLIN, IF YOU HAVE ANY MORE INSIGHT? YEAH, I MEAN, I THINK WE'LL DEFINITELY REACH OUT TO THEM, UH, AS PART OF THIS PROCESS, AS WELL AS THE FACT THAT THERE'S AN RFP OUT FOR OTHER ACTUALLY DART OWNED SITES.
AND I THINK THAT WHOLE PROCESS WILL PROBABLY MAKE THEM REEVALUATE.
I WOULD HOPE REEVALUATE ALL OF LIKE THE INCREASED TRAFFIC THAT THEY MAY BE HAVING AT SOME OF THEIR STATIONS.
AND I WOULD HOPE THAT THEY HAVE A OVERALL PLAN.
WE HAVEN'T, I HAVEN'T HAD ANY CONVERSATIONS DIRECTLY WITH DART YET, BUT OBVIOUSLY THIS IS, UH, AN ONGOING PLAN.
AND I, I WOULD HOPE THAT THIS SITE COULD BE INCLUDED IN, IN THEIR EVALUATION OF THE INCREASED RIDERSHIP OVERALL OVERALL, THEIR, THEIR, THEIR STATIONS.
I'D ENCOURAGE YOU TO PUT A PIN ON THAT, MR. HINES, AND HOPEFULLY SO, SO THIS WILL DEFINITELY BE, UH, UH, I'M IN FAVOR, UH, OF THIS, UH, PARTICULAR DEVELOPMENT.
AND SINCE IT CAN BE TIED, IF YOU WILL, TO UH, UH, THIS TRANSIT, WE CAN LOOK AT THAT AS A T O D, BUT IT WILL BRING INCREASED DEVELOPMENT.
AND THIS DOT COR, THIS, UH, UH, LANCASTER DOT CORRIDOR IS THE ORIGINAL CORRIDOR THAT WAS LAID BY.IN DALLAS.
AND THEREFORE, I WOULD JUST SAY THAT THE, UH, TRANSIT STATION, WHICH WILL SERVICE THESE INDIVIDUALS HERE, LI TENANTS, UH, IS WHOLLY OUT OF DATE AND CAN USE SOME, UH, DOLLARS FROM DO TO, UH, ENHANCE THAT.
THANK YOU FOR THIS DIRECTOR POST.
WELL, I WORKED ON THE VERY FIRST, UH, MR USE AT A TRANSIT STATION IN DALLAS MOCKINGBIRD STATION, AND IT'S BEEN A REAL SURPRISE TO ME THAT ALL OF THE DART STATIONS HAVEN'T HAD THE SAME KIND OF DEVELOPMENT.
SO I THINK THERE'S INCREDIBLE OPPORTUNITY HERE, AND MR. STINSON'S QUESTIONS ARE RIGHT ON POINT, UH, ABOUT THE OPPORTUNITY THERE.
UM, I HAVE UNDERSTOOD THAT ONE OF THE REAL PROBLEMS HERE, AT LEAST I'VE UNDERSTOOD THIS FOR 20 YEARS, UM, THE REAL PROBLEM IS THAT YOU DON'T HAVE MANY OF THE, UH, VETERANS, HUNDREDS OF PEOPLE THAT ARE COMING TO THE VA HOSPITAL EVERY DAY RIDING DART.
AND SO IT, IT JUST, IT DIDN'T WORK FROM THAT PERSPECTIVE.
SO THERE OUGHT TO BE SOMETHING THAT CAN BE DONE TO MAKE IT ALL WORK THE WAY IT'S SUPPOSED TO WORK.
UM, KYLE, WHAT IS IN PD 8 55 CURRENTLY? UH, I, I DON'T, ACTUALLY, I DON'T HAVE, BECAUSE THIS PROPERTY'S IN PD 8 55.
IT IS, YEAH, THAT'S, THAT'S RIGHT.
AND, AND SO IT CURRENTLY PERMITS A VARIETY OF USES ON THIS SITE.
I THINK YOU'RE JUST LOOKING FOR A COUPLE VARIANCES AS FAR AS CORRECT, AS FAR AS POSSIBLY PARKING, DENSITY,
[01:15:01]
DENSITY, FOUR AREA AND PARKING WOULD BE THE THREE VARIANCES WE WOULD SEE.AGAIN, THEY'RE, THEY'RE FAIRLY CLOSE.
FOR EXAMPLE, THE DENSITY IS AT 250 UNITS RIGHT NOW, AND WE'RE LOOKING FOR 330.
SO, UM, IT'S, IT, THERE'S NO DRASTIC DIFFERENCES IN WHAT WE HAVE NOW AND WHAT WE NEED, BUT THERE ARE SOME VARIANCES.
AND THEN, UM, THE PRESENTATION THAT WE RECEIVED SAYS THAT, UH, LARO IS CURRENTLY IN ITS DUE DILIGENCE PHASE.
SO HOW FAR ALONG ARE YOU IN YOUR DECISION MAKING IN GOING FORWARD ON A PROJECT LIKE THIS? SURE.
SO WE WERE AWARDED THE SITE IN 2021, AND, UM, TH THIS IS THE BIGGEST NEXT STEP FOR US, RIGHT? AND SO THIS, UH, AS KYLE MENTIONED EARLIER, THE, THIS PROJECT WILL NOT WORK WITH, WITHOUT THE PFC, UH, TAX ABATEMENT.
AND SO, UM, YOU KNOW, WE, WE ARE READY TO GO ON THIS SITE IF, UM, ONCE WE GET THIS APPROVAL AND THEN WORK WITH THE CITY TO GET THE ZONING AND, AND URBAN DESIGN FIGURED OUT.
UM, SO THIS IS, WE'VE REALLY BEEN WAITING ON THIS MEETING SO WE CAN, UH, TAKE NEXT STEPS.
AND DO YOU KNOW WHEN THE, THE DETAILS, UH, WILL BE WORKED OUT WITH THE CPC? IS THAT ON THE AGENDA? WE, WE ARE NOT ON THE AGENDA AS OF NOW.
UH, WE WANTED TO MAKE SURE THIS PASS THROUGH, UH, THIS COMMITTEE AND THAT WOULD HOPEFULLY BE IN THE NEXT SEVERAL MONTHS.
IDEALLY, WE WOULD LOVE TO BREAK DOWN, UH, NEXT YEAR, EARLY NEXT YEAR.
UM, BUT THAT THIS WHOLLY DEPENDENT ON THE CITY AND WORKING THROUGH THOSE OPEN ITEMS. OKAY.
AND IS THERE ANY ISSUE WITH THE FINANCIAL PARTNERS OR ANYTHING AT THIS POINT? NO, THERE'S NOT.
WE THINK WE HAVE A VARIETY OF CAPITAL PARTNERS WE'VE USED ON PRIOR, UH, DEALS THAT'D BE REALLY INTERESTED IN DOING A SITE SUCH AS THIS ONE.
APPRECIATE, APPRECIATE THE PRESENTATION.
I KNOW GETTING, UH, A THOUSAND UNIT CHALLENGE WAS YOU TOOK IT PERSONALLY AND THIS HOPEFULLY, YOU KNOW, WE'LL GET YOU A LONG WAY TOWARDS THAT, REALLY.
NOT REALLY ABOUT THE PROJECT, CAUSE I'D LOVE THE PROJECT AND THE LOCATION, ET CETERA.
BUT WITH, UH, SHERMAN'S DEAL NEXT DOOR, IS THERE A CONCERN THAT THERE'S, UH, A CONCENTRATION OF POVERTY, UM, LAWSUIT OR LETTER FROM MIKE DANIEL IN YOUR FUTURE? I MEAN, HAVE Y'ALL BROACHED THAT OR IS THAT NOT AN ISSUE? CUZ THIS ISN'T A LIE TECH DEAL.
THIS IS NOT, YEAH, IT'S NOT A LIE TECH DEAL.
AND WE'VE AL ALREADY WORKED WITH OUR OFFICE OF FAIR HOUSING TO, UH, TO CONFIRM THAT IT DOES AFFIRMATIVELY FURTHER FAIR HOUSING.
THAT WAS PART OF THE, THE THOUSAND UNIT CHALLENGE PROCESS.
UH, AND I THINK ONE OF THE BENEFITS HERE IS THAT WE DO HAVE TRUE MIXED INCOME.
WE HAVE THE MARKET RATE, THE 80% AND THE 60%.
SO I JUST DON'T, I DON'T WANT YOU TO SEE, I DON'T WANT THIS TO GET DERAILED AT THE LAST MINUTE BY A LETTER COMING FROM THAT LAW FIRM.
JUST OUT OF NOWHERE I'VE SEEN IT HAPPEN.
BUT, YOU KNOW, I'M JUST, I WANNA BROACH THAT.
I'M SURE Y'ALL ARE, YOU KNOW, YOU'RE WELL VERSED IN THAT.
THE OTHER POINT IS, IS, UM, ON THIS PROJECT AND, AND THE OTHER ONE, YOU KNOW, I KNOW THERE'S LIKE TD TIFFS AND THERE'S BARBELL TIFFS.
I THINK THE UNIVERSITY HILLS TIFF IS TIED TO THE, THE DEAL UP ON CAMPBELL AND COY.
SO DO, DO THE VARIOUS TIFF BOARDS REALIZE THAT SOME OF THEIR TIF REVENUE, AND I THINK YOU WROTE THAT EARLIER, THAT SOME OF THOSE REVENUE PROJECTIONS AREN'T GONNA TAKE PLACE.
SO I MEAN THE, WELL, I I WAS GONNA SAY THAT THE UNIVERSITY HILLS DEVELOPMENT IS, ISN'T ACTUALLY IN THE, IT'S NOT IN, IT IS CALLED UNIVERSITY HILLS, BUT IT'S NOT ACTUALLY IN THE UNIVERSITY HILLS TIF DISTRICT.
BUT I, I HAVE AN OFFICE JUST DOWN THE HALLWAY FROM KEVIN SPA, RIGHT.
ASSISTANT DIRECTOR IN OFFICE ECONOMIC DEVELOPMENT.
AND WE TALK ALL THE TIME ABOUT THE VARIOUS PFCS THAT WE HAVE AND OKAY.
CAUSE IT'S EITHER, I MEAN, THEY WOULD LOVE TO DO AFFORDABLE HOUSING THEMSELVES THROUGH TIF DISTRICTS.
YOU GET 20%, UH, AFFORDABLE UNITS, UH, IN, IN EXCHANGE FOR THE SUBSIDIES OR WHATEVER.
UM, IT DOES MEAN IT DOES CONTINUE TO CREATE THE TIF REVENUE.
HOWEVER, UM, THIS IS THE TOOL THAT WE HAVE IN FOR CAUSING OUR MORE OF A ACTUAL HIGHER, LIKE, MIXED INCOME PROJECTS.
SO, UH, BUT WE ARE IN COMMUNICATION.
I'M NOT TRYING TO DISSUADE YOU FROM DOING PROJECTS.
I JUST WANNA MAKE SURE, YOU KNOW, THERE, THERE ARE UNINTENDED CONSEQUENCES IN TIFF REVENUES IN THE FUTURE, WHAT HAVE YOU.
I, I'LL JUST CON CONTINUE ON THAT POINT.
UM, I THINK THIS IS A GREAT PROJECT.
UM, THIS IS IN A TIF DISTRICT, BUT IT'S CITY OWNED, HENCE NOT REALLY ON THE TAX ROLL AT THE MOMENT.
SO THE IDEA THAT YOU'RE NOT ROBBING PETER TO PAY PAUL IS NOT REALLY APPLICABLE HERE.
I ALSO THINK FROM A LARGER PERSPECTIVE, I MEAN, TIFF'S BEEN AROUND A WHILE HERE AND IT PROBABLY NEEDS A LITTLE BIT OF A KICKSTART.
THIS PROJECT IS THE KICKSTART FOR THIS TIF DISTRICT.
AND SO I THINK THAT'S ONE REASON TO LIKE IT IS BECAUSE, YOU KNOW, I MEAN YOU NEED CASH, YOU NEED TO GENERATE CASH FOR THE PROJECT, BUT, UM, THIS CAN DO THAT, UH, INDEPENDENTLY.
SO I THINK THAT'S ONE REASON TO ACTUALLY LIKE IT.
[01:20:01]
I JUST HAD A FEW OTHER COMMENTS.UM, UH, THE, THE, THE TERM SHEET STILL REFERS TO THE LAND CONTRIBUTION COMING FROM LAVORO.
SO THAT JUST NEEDS TO BE FIXED.
UM, THE WAY I UNDERSTOOD IT, IT WAS KIND OF CONFUSING, UH, IN THERE.
SO, YOU KNOW, OBVIOUSLY THE CITY'S THE ONE THAT'S, THAT'S PROVIDING THE LAND AND, YOU KNOW, IT WILL HAVE TO GET OVER TO, TO THE PSU ONE WAY OR ANOTHER.
UM, I CERTAINLY, UH, APPRECIATE YOUR ANSWER ON THE RETAIL TOO.
THAT, UH, THE DIFFERENCE DRIVING BY, UH, UH, LANCASTER, UH, IT IS THAT INLINE PROBLEM.
SO I THINK THAT THIS IS, IS A VERY GOOD WAY TO, TO DEAL WITH THAT AND, AND GOOD LUCK, UH, GETTING, UH, UH, THE RIGHT TENANTS IN THERE.
I THINK THAT WOULD BE A REAL GAIN HERE.
ON THE OTHER QUESTIONS I HAD JUST ARE REALLY, ARE REALLY FOR STAFF.
AND, AND AGAIN, I I I REALLY LIKE THIS PROJECT.
THIS IS, I THINK THIS IS WHY WE DO, UH, THIS MORE THAN THAT PROJECT, YOU KNOW, ON, ON UNDEVELOPED LAND INTO THE SOUTH, FURTHER, MUCH FURTHER SOUTH.
UM, TWO TERM POINTS THAT WERE IN THE, IN, IN THE TERM SHEET DID KIND OF BOTHER ME.
SO I REALLY WANNA HEAR WHY STAFF WAS OKAY WITH THESE THINGS.
FIRST WAS THE 9.5% RETURN, PREFERRED RETURN ON EQUITY, THAT'S HIGHER THAN ANY OF OUR DEALS.
I MEAN, I DON'T, I MEAN, I'M NOT HEARING WHY THIS, THEY NEED A HIGHER PERCENTAGE THAN OTHER DEALS.
AND THEN SECOND, THERE WAS A, A A, A CAP ON THE CITY'S OR THE PFCS MISCELLANEOUS EXPENSES CAPPED TO 235,000.
I HAVE NO IDEA WHERE THAT THAT NUMBER CAME FROM OR WHY IT'S THERE.
I ASSUMED THAT WOULD BE PUT IN, IN THE PROJECT BUDGET, BUT THAT WOULD BE A HARD CAP ON OUR EXPENSES OF THE PFC.
I WAS KIND OF SURPRISED TO SEE THAT I, I HAVE NO WAY OF GUESSING THAT IT WAS GOOD OR BAD OR ANYTHING, BUT I JUST DIDN'T, BUT I ALSO JUST KIND OF FEEL LIKE, WHY DO WE EVEN NEED A CAP, UH, IN THIS, IN THIS DEAL? I DON'T KNOW IF THAT BUBBLES UP TO THE PEN PENCILING OR WHATEVER, BUT, BUT I, I, I GUESS I WOULD WANT TO KNOW FROM THE STAFF'S PERSPECTIVE WHY THOSE PREFERRED RETURNS HIGHER THAN MOST OF OUR OTHER DEALS AND WHY THERE'S THERE IT WAS ACCEPTABLE TO HAVE THAT CAP IN THERE.
SO THE CAP, UH, WAS JUST A CLARIFICATION OF LAVORO.
UH, OUR, OUR DPFC CORPORATION COUNCIL BRACEWELL CHARGES $200,000 FLAT FOR EACH OF OUR DEALS.
AND THEN OUR FINANCIAL ADVISOR, FEDERAL TOP CHARGE IS $35,000 PER DEAL AND THEY'RE PAID FOR OUT OF THE CLOSING COST.
SO IT'S, THEY JUST WANTED TO, TO CLARIFY CAUSE I DON'T, I WOULD LOVE TO CAP THE PROJECT BUDGET ITEMS THAT THEY HAVE.
YEAH, WELL IT'S NOT LIKE, IT'S NOT LIKE BRACE WELL'S GONNA COME AND ASK FOR MORE MONEY, UH, OR HILLTOP.
CUZ THESE ARE ALL JUST, IT'S JUST A FLAT FEE AS PART OF WHAT THEY EARNED.
WELL, I NEVER KNOWING THOSE TWO NUMBERS THAT YOU JUST SAID TO ME, I MEAN, I CAN SEE HOW WE ADDED UP TO 2 35.
BUT I GUESS IT'S A MATTER OF PRINCIPLE.
I I MEAN, WHY, I MEAN, THERE'S NO OTHER ROOM FOR ANY OTHER EXPENSE THAN THOSE TWO NOW.
AND WE DON'T ANTICIPATE HAVING OTHER EXPENSES BEYOND, BEYOND THAT.
THERE'S THIS, THAT'S JUST, WE DON'T, I DON'T KNOW.
I, THERE, THERE'S, AS, AS WE, AS WE WORK THROUGH THESE, THESE DEALS, I HAVEN'T HAD ANY, ANY OTHER EXPENSES POP UP.
DO YOU HAVE A STATEMENT THAT SURE.
SO WHEN WE NEGOTIATE THE FINAL DOCUMENTS, THE LEASE WILL HAVE THAT, IF THERE ARE ANY EXPENSES OF THE PFC THROUGHOUT THE LIFE OF THE LEASE, THAT THOSE EXPENSES WOULD BE COVERED BY THE TENANT, NOT BY PFC.
SO IF THERE WAS TO BE SOMETHING THAT CAME UP, LIKE LET'S SAY FOR EXAMPLE, UM, THE, THE TENANT WASN'T PAYING SOME TYPE OF EXPENSE RELATED TO THE PROJECT AND THERE WAS A LIEN PLACE ON THE PROJECT, IF YOU AS A LANDLORD, WHICH THAT CHANCE OF THAT HAPPENING IS PRETTY SOME, BECAUSE PROBABLY THE LENDER'S GONNA COME IN AND TAKE CARE OF IT.
BUT LET'S JUST SAY YOU CAME IN AND YOU PAID THAT AMOUNT, UH, TO YOUR UTILITY PROVIDER, WHOMEVER TO REMOVE THE LIEN THEY WOULD HAVE WOULD BE THE OBLIGATION, THE TENANT TO REIMBURSE YOU.
SO THOSE, THOSE TERMS WILL BE, I THINK THAT THIS MISCELLANEOUS EXPENSES ARE JUST IN CONNECTION WITH THE CLOSING, BUT THEN GOING FORWARD, THE THE DEAL DOCUMENTS WILL ALLOW FOR YOU TO BE REIMBURSED FOR YOUR EXPENSES.
AND I JUST THINK THAT'S PROBABLY WHY WE DON'T NEED TO PUT A HARD NUMBER IN THE TERM SHEET.
THAT'S ALL TERM SHEET IS NOT MY WELL, OKAY.
IT WILL POINT THAT OUT SO THAT WE WE DO HAVE, THEN, THEN, THEN IT SHOULDN'T HAVE BEEN, WELL IT STILL SHOULDN'T BE PUT IN IF IT THAT WAY.
UM, I MEAN, I I SAY THAT BECAUSE IF WE DRAFT THE TERM SHEET, IT'S, IT, YOU CALL IT NON-BINDING, BUT I KNOW ALL THE TERMS, THE DEAL TERM BE BASED ON IT AND IF WHEN YOU NEGOTIATE THE DOCUMENT, THE LSB LICENSE TO THE TERM SHEET.
SO I I I WISH IT WAS AS SIMPLE AS, AS IT SOUNDS, BUT I'VE, I'VE DONE A FEW NEGOTIATIONS LIKE THAT MYSELF.
SO THAT'S, I MEAN, I'M, I'M NOT GONNA HOLD MY VOTE UP ON ANYTHING LIKE THAT, BUT I JUST DON'T SEE WHY WE WOULD NEED TO START PUTTING IN HARD NUMBERS IN THE TERM SHEET OR SOMETHING LIKE THAT.
I MEAN, DOES THE APPLICANT HAVE ANYTHING TO SAY IN RESPONSE? IT'S SOMETHING WE'VE BEEN DISCUSSING WITH, WITH KYLE AND JIM, AND THAT'S, THAT'S OKAY.
THOSE ARE THE TERMS THAT WE'VE BEEN DISCUSSING,
[01:25:01]
SO, OKAY.HOW ABOUT THE 9.5%? SO THE 9.5% IS, IS BASED ON WHATEVER THEIR, THEIR FINANCIAL, UH, PARTNERS ARE REQUIRING AS, AS A WHAT THEY DEEM AN ACCEPTABLE RETURN ON THIS DEVELOPMENT.
WE'VE, THIS WAS ACTUALLY, I ACTUALLY RECEIVED THIS TERM SHEET, UH, EVEN PRIOR TO THIS BOARD EXISTING, AND IT WAS, I I BELIEVE IT WAS EVEN OVER 10 AT THAT POINT.
AND WE'VE GOT IT DOWN TO 9.5%.
THERE IS AN INHERENT AMOUNT OF RISK ON THIS DEAL, THIS SITE.
AS, AS WE SAW, THE TROUBLES THAT, UH, THAT HAVE OCCURRED AT THE LANCASTER URBAN VILLAGE.
THIS WILL TAKE PROBABLY A, A CONSIDERABLE ABOUT MORE SECURITY AT THE BEGINNING OF THE LIFE OF THE PROJECT.
UM, I, THIS IS WHAT WAS RELAYED TO US AND THAT WAS THE, THE RETURN THAT THEY COULD, COULD LIVE WITH AND OKAY, THAT'S A PROJECT COST.
THAT'S NOT A, THAT'S, THAT'S NOT A RETURN OR NON-INVESTMENT.
WELL, PROJECT COST IS RELATED THOUGH.
SO LIKE OUR OPERATING EXPENSES, FOR EXAMPLE, FOR THIS PROJECT, I'M GLAD YOU MENTIONED SECURITY ARE, ARE MUCH HIGHER FOR THIS THAN A, YOU KNOW, A MARKET RATE DEAL WOULD BE, WHICH IS FINE, BUT THAT'S SOMETHING THAT IS A TRUE, UH, COST OF THE RISK THAT, THAT KYLE WAS MENTIONING.
UH, THAT RELATES TO THE OVERALL RETURN.
REPEAT THAT AND IT IS CLEAR THAT I, I MISSED THE FIRST PART OF THAT.
I WAS JUST SAYING LIKE, IN, IN OUR INTERNAL UNDERWRITING RIGHT, OUR, OUR OPERATING EXPENSES, SO, YOU KNOW, PAYROLL AND, YOU KNOW, JUST THE THE VARIOUS THING, UTILITIES, THINGS TO RUN THE PROPERTY, UM, ARE MORE EXPENSIVE HERE.
I WAS SAYING THERE IS AN ADDED SECURITY ELEMENT HERE THAT WOULDN'T MAYBE NECESSARILY BE ON ANOTHER PROJECT.
UM, AND, AND WE BAKED THAT INTO OUR UNDERWRITING BECAUSE WE THINK IT'S SOMETHING THAT'S NECESSARY IN TALKING WITH SERGEANT STEVENS AND, AND CITY COUNCIL AND WE'RE PUTTING UP THE LAND SO THAT, THAT ELEMENT OF RISK IS, IS NOT HERE.
UM, WE WOULD LOSE THE ASSET OF SHOULD THIS ALL GO WRONG.
AND SO ON SALE, HANDS ALL ARE YOU, ARE YOU, WOULD YOU LIKE TO MAKE A MOTION OR, UH, I, I WANTED TO HEAR THAT.
THE STAFF RESPONSE TO THE QUESTION.
I THINK WE'RE JUST SAYING THIS SITE HAS BEEN INHERENTLY A HIGHER RISK IN DEVELOPING IT.
THAT'S WHY THE CITY GIVEN AWAY.
I WOULD LIKE, SO THEY'RE, THEIR INVESTORS ELABORATE ON THAT POINT.
THEIR INVESTORS ARE PROBABLY JUST REQUIRING A LITTLE HIGHER, UH, RETURN THAN, THAN USUAL.
AND I DON'T EVEN KNOW THAT IT'S, THAT IT'S OUT OF LINE WITH OTHER, OTHER RETURNS.
WE'VE BEEN SUCCESSFUL BECAUSE WE ARE THE CITY OF DALLAS, THAT WE HAVE, UH, A GREAT REAL ESTATE MARKET HERE TO DRIVE DOWN THESE PREFERRED RETURNS, UH, ELSEWHERE IN THE STATE.
YOU MAY SEE DIFFERENCE SUMMER IF, IF YOU'RE LOOKING AT YES.
LIKE YOU MAY, SO WE, WE HAVE SEEN HIGHER RETURNS BEING DEMANDED IN OTHER AREAS THAT, UH, DIRECTOR PAUSE.
I MEAN, I, I ASSUMED AND HOPED, UM, THAT, UH, HILLTOP SECURITIES AND BRACEWELL WERE GETTING PAID, BUT I, I NEVER KNEW WHAT THE STRUCTURE WAS.
SO I JUST HAVE A QUESTION AND, UH, THIS PROBABLY WON'T SURPRISE YOU, MR. HINES, BUT WHAT HAPPENS IF THE DEAL NEVER GETS FINALIZED? FOR EXAMPLE, THEY NEVER GET THEIR ZONING, AND SO THE DEAL JUST KIND OF GOES AWAY.
HOW DO, WHO PAYS THEM THEN? NOBODY.
IT'S, IT'S ESSENTIALLY WORKING PRO BONO UNTIL THE, THE PROJECT AND THAT'S CLOSE.
THAT'S THE DEAL WE HAVE WITH THEM.
YES, WE ARE NOT ON THE HOOK FOR ANY, ANY FEES.
IF THERE'S SOME OUTSTANDING, IF WE HAVE SOME SORT OF RESEARCH OR LEGAL OPINION THAT WE SEEK, UH, WE HAVE HOURLY RATES THAT THEY COULD POTENTIALLY CHARGE.
HOWEVER, I'VE NEVER ACTUALLY SEEN THAT.
UM, BRACEWELL IS ALSO OUR BOND COUNSEL FOR THE HFC AND I ASK THEM QUESTIONS ALL THE TIME ABOUT VARIOUS ASPECTS, AND I'VE NEVER ACTUALLY SEEN A BILL FROM THEM.
SO, UH, IT'S, IT'S BASED ON THE, THE CLOSING AND NOBODY GETS PAID UNLESS THE, THE DEAL ACTUALLY IS CONSUMMATED.
JUST LIKE WHAT HAPPENS TO US IN COMMERCIAL REAL ESTATE DOESN'T CLOSE, DON'T GET PAID, YOU KNOW,
UH, I'LL ALSO LIKE TO READ IN THE RECORD, UH, AARON, UH, THAT, UH, DIRECTOR TOLEDO, UH, HAD TO LEAVE FOR AN APPOINTMENT AT ONE 20.
SO THIS RECORD ON THE RECORD THAT HE HAD TO LEAVE AT ONE 20 AND IT IS NOW ONE 30.
DO YOU HAVE A COMMENT? UM, YEAH.
SO, UM, THE FIRST IS GREAT PROJECT.
AND SO I, I WANT TO, I MEAN, THE BYLAWS SPECIFICALLY STATE IN SUPPORT OF THE COMPREHENSIVE HOUSING POLICY.
SO I, I WANT TO KIND OF, I'M, I'M GONNA LOOK AT THIS THROUGH THAT LENS OF HOUSING.
UM, SO THERE ARE SEVERAL CONCESSIONS THAT WE'VE MADE ON THIS PARTICULAR PROJECT THAT WE HAVE NOT MADE
[01:30:01]
ON OTHER PROJECTS.UM, THE LAND IS FIRST AND FOREMOST.
SO, UM, TELL ME YOUR UNDERSTANDING OF THE HOUSE, THE THOUSAND UNIT CHALLENGE.
SO CITY OWNED LAND, THAT, THAT'S VACANT AND THEN UNDERUTILIZED AREAS.
AND THE GOAL WOULD BE, YOU KNOW, I BELIEVE ALL THE SITES WERE EITHER RIGHT NEXT TO OR CLOSE TO, UH, TRANSIT STOP START STOPS, SUCH AS THIS ONE.
AND THEY WANTED TO REVITALIZE THAT LAND.
SO I KNOW THAT SEVERAL OTHER, I THINK KYLE MENTIONED, UM, ARE SEEKING THE PFC STRUCTURE ON THEIR SITES.
I THINK THERE'S MAYBE A, A SINGLE FAMILY RENTAL.
I, I'M NOT SUPER FAMILIAR WITH THE OTHERS, BUT, AND I BELIEVE THE CITY'S CONTRIBUTING THE LAND ON THOSE AS WELL.
AND SO, UH, TO ME IT'S A, YOU KNOW, CREATIVE WAY FOR THE CITY TO REVITALIZE LAND.
SO WHERE DOES THE THOUSAND UNITS COME IN? CAUSE THAT'S REVITALIZATION.
REVITALIZATION COULD BE A HOTEL, IT COULD BE RETAIL, IT COULD BE ANYTHING.
UM, SO WHERE DOES THE THOUSAND UNIT COME IN FROM YOUR UNDERSTANDING? THE CITY SEES A LACK OF AFFORDABLE HOUSING, AND I SAY AFFORDABLE, TRULY MIXED INCOME HOUSING, RIGHT? AS WE'VE PROPOSED HERE.
AND, UM, THEY THOUGHT THOSE SITES COULD PRODUCE AT AT LEAST A THOUSAND UNITS, THIS WOULD BE 330 OF 'EM.
AND SO, UM, RATHER THAN, YOU KNOW, THIS WOULD BE THREE 30 UNITS, MIXED INCOME UNITS, I, I SHOULD SAY.
AND, UM, THE, YOU KNOW, THE CITY SEES THESE SITES AS, AS THAT IS BEING THE HIGHEST AND BEST USE, I GUESS, OVER MAYBE, UH, YOU KNOW, ANY OTHER TYPE OF USE.
SO, UM, WITH THAT IN MIND, I'M, I'M GONNA KIND OF DIVE IN AND I'LL HIT SOME, SOME POINTS.
I THINK, UM, AGAIN, GREAT PROJECT, NOT A, IN MY VIEW, NOT THE RIGHT USE FOR THE PUBLIC FACILITY CORP, UM, AS A HOUSING PROJECT.
UM, AND HERE ARE A FEW REASONS WHY.
SO FIRST OF ALL, THE LAND IS GIFTED.
EVERYBODY ELSE THAT WE HAVE DEALT WITH AND ALL THE OTHER PFCS THAT WE'VE APPROVED, UM, HAVE BEEN PURCHASED AND THEN GRANTED TO THE PFC.
UM, AND SO THE PFC IS NET POSITIVE ON THE BALANCE SHEET.
UM, THE SECOND, AS SCOTT JUST POINTED OUT, A HIGHER PREP, UM, THAN OTHERS.
SO THERE'S CONCESSION NUMBER TWO, UM, THE RETAIL TAX EXEMPTION WE TALKED ABOUT.
UM, AND THEN THERE'S ALSO A, UM, A LOWER, UM, INCREASE, UM, ANNUALLY.
SO IT'S 2%, AND WE'RE IN A ROUGHLY 8%, UM, INFLATIONARY ENVIRONMENT RIGHT NOW.
SO WE'RE GONNA CAP THAT 2% FOR THE NEXT 10 YEARS.
UM, SO THAT'S GONNA SIGNIFICANTLY LOWER THE, UM, THE LEASE BASE AS IT WERE.
ANOTHER THAT'S JUST A, A FOURTH CONCESSION I THINK WE'RE AT NOW.
AND THEN THE MOST IMPORTANT FROM MY VIEW IS THAT THE AAMI MIX IS NOT EVEN YOU.
YOU CAN DO MIXED INCOME AND STILL DO AFFORDABLE, AND A THOUSAND UNIT CHALLENGE IS A THOUSAND AFFORDABLE UNITS.
OKAY? SO JUST TO BE VERY CLEAR, IT'S A THOUSAND UNITS AT 120% AAMI BELOW.
THAT'S WHAT THE A THOUSAND UNIT CHALLENGE IS.
AND SO THIS IS 115, GIVE OR TAKE, UM, AND ONLY 10% OF THOSE ARE AT 60% AAMI.
SO WE, WE DON'T HAVE A CONCESSION ON AFFORDABILITY EITHER.
UM, SO, YOU KNOW, BY THE TIME YOU, YOU LAYER IN ALL OF THAT AND HALF YOUR, UM, UNIT, I MEAN, JUST LOOKING AT THE SITE PLAN, SO ROUGHLY A THIRD OF THE LAND USE IS GONNA BE RETAIL, WHICH WE DON'T DO.
AND THEN HALF OF THAT IS GONNA BE MARKET, WHICH ISN'T WHAT THE A THOUSAND UNIT CHALLENGE IS.
I JUST THINK THAT, YOU KNOW, WE'VE WHITTLED AWAY AND, UM, GIVEN A LOT OF CONCESSIONS FOR NOT MUCH AFFORDABILITY.
NOW, I WOULD FEEL VERY DIFFERENTLY ABOUT THIS IF IT WAS CAPPED AT 120%, UM, AND NOT 50% MARKET RATE.
BUT IF WE SAID 50% OR 40%, 80% AAMI, 10% AT 60, AND THEN THE REST UP TO 120, THAT'S FINE.
THAT'S, THAT'S AFFORDABLE BY THE DEFINITION OF THE CITY OF DALLAS.
SO, UM, OVERALL, I, I JUST, I DON'T, IT, IT DOESN'T, THERE ARE TOO MANY CONCESSIONS, UM, FOR WHAT WE ARE RECEIVING, UM, ULTIMATELY, WHICH SHOULD BE A AFFORDABLE HOUSING.
AND, UH, ONE, ONE FINAL COMMENT, JUST BECAUSE I, I THINK, YOU KNOW, WE HAVE TO TALK ABOUT THESE THINGS.
WE HAVE TO CALL THESE THINGS OUT.
UM, ONE OF THE OTHER, AND THIS IS, UH, WE, IT IS PART OF OUR PURVIEW AND SOMETHING THAT WE NEED TO ALWAYS BE MINDFUL OF.
UM, BUT THE HOUSING EQUITY AUDIT WAS FINISHED UP RECENTLY WITH SOME RECOMMENDATIONS AROUND THAT.
AND OVERALL, THE, UH, THE TAKEAWAY THAT I GOT IS WE NEED MORE EQUITY ALL THE WAY THROUGH THE HOUSING TRANSACTION, ALL THE WAY THROUGH THE ECOSYSTEM.
SO THAT'S BUILDERS, DEVELOPERS IN ADDITION TO RESIDENTS.
AND WHEN I LOOK AT RIN, IT'S JUST NOT A, A DIVERSE LEADERSHIP TEAM.
AND I THINK THAT'S SOMETHING THAT WE NEED TO BE AWARE OF.
[01:35:01]
UM, AND WE HAVE M W B E, UM, TO ASSIST WITH THAT.UH, BUT THERE'S NOTHING LIKE STRAIGHT UP, I KNOW IT HELPS MY BOTTOM LINE TO BE MORE DIVERSE, UM, AS A COMPANY.
AND I THINK THAT'S SOMETHING THAT, UH, WE SHOULD, THAT'S A LENS THAT I WILL ALWAYS LOOK THROUGH, AND I THINK IT'S A LENS THAT, UH, THAT WHEN I LOOK AT IT AT LOOK AT TRANSIT THROUGH THAT LENS JUST DOESN'T MEASURE UP.
DO WE STILL HAVE A QUORUM? YEAH, WE STILL HAVE A, I JUST TO SPEAK TO THE MIXED INCOME ASPECT OF THIS AND A THOUSAND UNIT AFFORDABLE HOUSING CHALLENGE, I, IF THIS IS ALL INCOME RESTRICTED, I DON'T THINK THIS PASSES OUR OFFICE OF FAIR HOUSING'S REVIEW.
UH, THE, THE AREA, IT NEEDS MARKET NON-INCOME RESTRICTED UNITS TO BE ABLE TO GROW INCOMES IN THE AREA TO ATTRACT MORE HOUSING DEVELOPMENT.
AND I THINK IF, IF JUST KNOWING AND INTERACTING WITH MY OFFICE OF OF FAIR HOUSING, THEY WOULD SAY, WELL, WE NEED TO HAVE AT LEAST A, A LARGE PORTION, I GET IT EVERY DAY, A LARGE PORTION OF NON-INCOME RESTRICTED UNITS.
AND I DON'T THINK THAT IF WE WERE TO, IF I MEAN, IT WAS LIKE VICTOR HAD, OR DIRECTOR TOLEDO HAD SAID THAT, YOU KNOW, DO WE GET A LETTER SAYING THAT THIS IS CONCENTRATED POVERTY? THE, THE WHOLE POINT OF THIS WAS TO DO THAT AND WHAT THE ULTIMATE GOALS OF THE THOUSAND UNIT AFFORDABLE HOUSING CHA, LIKE, THE REASON THIS WAS SELECTED BY THE, UH, THE PANEL THAT ACTUALLY REVIEWED THESE, THERE WAS THREE DIFFERENT APPLICATIONS FOR THIS SITE.
AND OUR PLANNING AND URBAN DESIGN GROUP WAS SAT ON THAT BOARD AND OR ON THE, THE REVIEW PANEL.
AND I THINK THE RETAIL COMPONENT TO IT WAS A BIG CONTRIBUTING FACTOR BECAUSE THAT'S WHAT THE COMMUNITY HAS TOLD US, IS THEY WANT, THEY WANT TO ACTIVATE THIS SITE, THEY WANT MIXED USE.
AND WHETHER OR NOT THAT'S TECHNICALLY IN THE PURVIEW OF THE PFC, THIS IS THE DEAL THAT WAS BROUGHT TO COUNCIL FOR COUNCIL TO APPROVE.
I KNOW THAT IT WAS, IT WAS SUPPOSED TO BE A THOUSAND UNITS.
WE'RE NOT AT A THOUSAND UNITS.
UM, BUT I'LL JUST SAY THAT'S KIND OF THE REASONING BEHIND WHY.
BUT WHAT IS THE, WHAT WAS THE COUNCIL APPROVAL? COUNCIL APPROVAL WAS THIS ESSENTIAL SITE PLAN WAS PRESENTED TO THEM.
AND AFTER WORKING WITH THE COMMUNITY AND, AND COUNCILWOMAN ARNOLD, MAKING SURE THAT WE HAVE THE, THE VARIOUS USES AT THE SITE WAS THIS, AND THEY WERE, THEY WERE PRESENTED THAT THIS WOULD BE A PFC STRUCTURE.
UH, THE ONLY WAY THAT IT WOULD PENCIL IS A PFC STRUCTURE.
THERE'S, THERE'S VARIOUS CONCESSIONS THAT WE HAVEN'T HAD TO MAKE, BUT THIS ISN'T, THIS WAS, WE'RE TRYING TO MAKE THIS AS MARKET RATE AS POSSIBLE BECAUSE THAT'S WHAT THE AREA ACTUALLY NEEDS.
AND WE'RE TRYING TO INCREASE, PROVIDE THAT MIX OF MIX OF INCOME.
SO I DON'T, I DON'T DISAGREE WITH THAT AT ALL, KYLE, THAT, UM, IT NEEDS MARKET RATE.
WHAT I'M SAYING IS, FOR THE CONCESSIONS THAT WE'VE MADE, WE ALWAYS HAVE GONE FOR DEEPER AFFORDABILITY ON THOSE CONCESSIONS.
WE SAW IT WITH JPI, UM, JUST A LITTLE BIT AGO.
SO WHENEVER WE HAVE CONCESSIONS, IT'S FOR SOMETHING, AND TYPICALLY IT'S FOR DEEPER AFFORDABILITY.
AND I THINK WE'VE MADE A LOT OF CONCESSIONS.
WHEN YOU START WITH FREE LAND, YOUR COST BASE IS ON THE LAND IS ZERO.
UM, THEN WE, THAT'S A CONCESSION IN AND OF ITSELF.
AND SO I JUST, I FEEL LIKE WE'VE MADE TOO MANY CONCESSIONS FOR NOT ENOUGH IN IMPACT.
KYLE, WOULD IT BE IN THE ANNE WITH A POSSIBLE FOR THE DEVELOPER TO, UH, COME BACK AND PERHAPS BRING ANOTHER PROPOSAL THAT'S, UH, PERHAPS NEXT MONTH THAT PERHAPS ADDRESSES SOME OF THESE CONCERNS THAT WE HEAR AROUND THE TABLE? OR, UH, ARE YOU, ARE, DO YOU HAVE A TIMEFRAME IN WHICH THAT, UH, YOU WILL, THE DEAL WILL FALL THROUGH? UH, IF IT'S NOT ENACTED UPON TODAY, WE'RE NOT GONNA LOSE SITE CONTROL, BUT WE HAVE BEEN
I MEAN, I CAN'T SPEAK TO, I MEAN, I HAVE EXPLAINED THAT THIS CONVERSATION WAS GONNA HAPPEN IF WE DIDN'T MOVE THE PREFERRED RETURN DOWN TO 8%.
I WILL LEAVE THAT TO THE DEVELOPER AND, AND LET THEM DECIDE.
HOWEVER, UM, THERE'S NOT A MOTION ON THE FLOOR RIGHT NOW.
YEAH, I MEAN, I'LL SH I, I, I'D HAVE TO GET BACK TO YOU ON THE TIMING IN TERMS OF IF, UM, YOU KNOW, IF NEXT MONTH WOULD BE HOW, HOW THAT WOULD AFFECT THINGS FOR US.
UM, SO, HI, I'M STEVE REYNOLDS.
I'M THE PRESIDENT OF TRINTECH.
DONE A VERY GOOD JOB HERE LEADING, UM, THE PRESENTATION.
WHAT I CAN TELL YOU IS THAT IS DIFFERENT ABOUT THIS SITE IS MANY OF YOU HAVE ALREADY POINTED OUT THERE, THERE'S ONE PARTICULAR POINT THAT IS DEFINITELY DIFFERENT THAN THE JPI SITE.
THIS IS AN URBAN DEVELOPMENT, MEANING THAT IT HAS A STRUCTURED PARKING GARAGE, WHICH ADDS CONSIDERABLE COST TO THE PROJECT.
[01:40:01]
OFFSET BY THE RENTS THAT WE CAN CHARGE FOR THAT BECAUSE RENTS ARE LIMITED BY WHAT THE MARKET CAN, CAN BEAR.UM, THE RENTS ARE NOT HERE IN THIS LOCATION THAT THEY ARE IN OTHER LOCATIONS THAT SUPPORTS A MORE COMPLICATED DEVELOPMENT.
UM, SO THAT HAS TO BE FACTORED IN.
I CAN TELL YOU AS A VERY LARGE MARKET RATE DEVELOPER, UH, THAT THE PREFER RATE THAT IS PROPOSED HERE, I PAY ON EVERY ONE OF MY DEALS.
I, I WOULD WELCOME A LOWER OPPORTUNITY, BUT IN ORDER TO ATTRACT CAPITAL, ESPECIALLY TO A LOCATION LIKE THIS, THERE IS A RISK-BASED EVEN IN, IN JUST A RISK-BASED PREMIUM IN DEVELOPMENT IN GENERAL.
BUT THERE'S ALSO ANOTHER RISK BASED ELEMENT HERE, UH, THAT WE HAVE TO TAKE INTO CONSIDERATION.
SO I CAN TELL YOU THAT, YOU KNOW, THAT NINE AND A HALF IS WHAT THE MARKET HAS TOLD US THAT IT WILL REQUIRE IN ORDER TO ENGAGE IN A DEVELOPMENT PROJECT AND IN A DEVELOPMENT PROJECT OF THIS LOCATION.
SO TO LOWER THAT MEANS I RISK CAPITALIZING THE DEAL, PERIOD.
UH, SO I'M NOT SURE HOW I CAN COME BACK TO YOU WITH A DIFFERENT ALTERNATIVE IN TERMS OF CAPPING THE COST.
I MEAN, I, THAT'S, I MEAN, WE CAN, WE CAN REMOVE THAT.
I MEAN, THAT'S, KYLE'S TOLD YOU THAT THAT'S WHAT IT IS, AND IT'S NOT GOING TO BE HIGHER THAN THAT.
SO I'M HAPPY WITH, WITH REMOVING THAT, IF THAT HELPS.
BUT, UM, IN ORDER TO MAKE MATERIAL CHANGES TO THE COST, THE, THE COST STRUCTURE OF THE CAPITAL THAT HAS BEEN, YOU KNOW, WORKED ON TO ENSURE THAT WE CAN BUILD WHAT WE PRESENT AND ATTRACT CAPITAL TO, TO FINANCE IT, WE HAVE, UH, UH, ANY MORE COMMENTS FROM, UH, THE FLOORING ITEM NUMBER SEVEN.
AND, UH, FORGIVE ME IF, UH, ON, ON ZOOM, I, I CAN'T SEE EVERYBODY.
IF YOU HAVE A COMMENT, IF YOU COULD WAVE YOUR HAND, SEEING NONE, ANY OTHER COMMENTS FROM THE FELLOW DIRECTORS? DO WE HAVE A MOTION ITEM? ITEM NUMBER, ITEM NUMBER SEVEN, DISCUSSION, APPROVAL, RESOLUTION.
I'M PREPARED TO, UH, TO VOTE ON, UH, MOVING THIS ALONG, APPROVING IT, BUT ALSO IN FAVOR IF THE, UH, BOARD WOULD LIKE TO, UH, UH, STUDY THIS A BIT LONGER UNLESS MOVE ON.
WE'RE WE HAVE A, I DON'T HEAR A SECOND TO A TABLE.
SO, YES, I'LL, I'LL MAKE A MOTION THEN THAT I VOTE THAT WE APPROVE THIS PARTICULAR, UH, TERM SHEET.
I, I VOTE THAT WE, UH, APPROVE THIS PARTICULAR TERM SHEET FOR TROBE.
IS IT VAL TRO VALOR? TRO VALOR IN THE CITY OF DALLAS, TEXAS HERE AT, UH, 45, WHAT IS IT? 45 15 SOUTH LANCASTER.
ALL WE KNOW YOU'RE FROM FORT WORTH,
WE HAVE A, UM, MOTION TO APPROVE ITEM NUMBER SEVEN BY, UH, DIRECTOR STINSON, SECONDED BY DIRECTOR RUSSELL.
AND WE HAVE, UH, ROLL VOTE PLEASE.
UM, I'M GONNA VOTE FOR THE MOTION.
UM, I, I MEAN, I'M NOT A NUMBER CRUNCHER, UH, AND I THINK WE SHOULD BE EXTREMELY CAUTIOUS ABOUT A 9.5, WHATEVER THE MARKETS ARE.
UM, I DIDN'T VOTE FOR THE PRIOR ONE AT 8% RETURN.
UM, I, I, I VIEW THE RISKS DIFFERENTLY HERE, AND THE SOURCES OF POSSIBLE DEVELOPMENT ARE DIFFERENT.
THIS IS A, I THINK A SPECIAL SITE.
IT, IT, IT'S GOT, UM, THE NEED, UH, AND THE LACK OF OTHER ALTERNATIVES HERE TO MAKE THIS HAPPEN.
AND SO I DO FEEL THAT THIS, THIS JUSTIFIES THE 9.5%, WHEREAS OTHER PROJECTS MAY NOT JUSTIFY EIGHT.
SO, UH, THAT IS THE DECISION I THINK WE'RE TASKED WITH.
AND, AND IT'S, IT CAN BE A HARD DECISION AND I'M, AND I WANT, YOU KNOW, I, I MEAN, WE'VE GOT NUMBER OF CRUNCHERS ON STAFF.
UH, BUT, YOU KNOW, A LOT OF THOSE NEGOTIATIONS HAPPEN WITHOUT US BEING AROUND.
AND I WANNA MAKE SURE NEXT TIME KYLE FEELS LIKE THE NUMBERS ARE LOW, THAT WE SUPPORT THAT TOO, AND THAT WE'RE NOT PRESENTED SORT OF MORE OF A GUN TO OUR HEAD.
WELL, IS THIS GOOD? IS THIS A GOOD ENOUGH DEAL AFTER NOT REALLY KNOWING ALL THE THINGS THAT MIGHT, MIGHT HAVE BEEN GOING ON.
SO I THINK IT'S VERY IMPORTANT FOR US TO, TO PRESSURE THAT, YOU KNOW, WE'RE JUST NOT GONNA TAKE ANY NUMBER THAT'S THROWN AT US AND WE'LL, WE WILL LOOK AT OTHER DEALS AND, AND, AND TRULY WEIGH THEM OUT AND NOT FEEL LIKE EIGHT PERCENT'S ALWAYS OKAY.
IT WILL VARY, AT LEAST FROM MY PERSPECTIVE.
[01:45:01]
SO THIS DEAL, EVEN 9.5, IT BOTHERS ME, BUT I STILL THINK IT'S WORKING.SO I, I JUST WANT TO SAY, OKAY, WE HAVE A MOTION.
UH, AARON, IF YOU COULD CALL THE ROLL, PLEASE.
AYE, UH, ALAN IS, DID HE REJOIN ONLINE OR IS ALAN GONE? NO, HE'S, HE'S, HE'S GONE.
UH, WE HAVE APPROVED, UH, ITEM NUMBER SEVEN AND, UH, JUST, JUST AS A NOTE, KYLE, UH, YOU KNOW, THIS, THIS, THESE ARE THE TYPE OF ISSUES THAT AS WE MET IN THE GOVERNANCE COMMITTEE, THAT PERHAPS THE FINANCE COMMITTEE, YOU KNOW, COULD TALK ABOUT, UH, WHENEVER, WHENEVER THEY MEET, SO THAT THEY CAN, UH, PERHAPS HAVE SOME PARAMETERS AND SUCH PRESENTED, YOU KNOW, IN FUTURE APPLICATIONS.
THAT'S JUST AN IDEA OF CHAIR'S PRIVILEGE TO MAKE A COMMENT.
UH, NOW WE MOVE TO ITEM NUMBER EIGHT, BRIEFING ON THE GOVERNANCE COMMITTEE MEETING HELD ON THURSDAY, JUNE 16TH, UH, 2022 BY, UH, DIRECTOR MONTGOMERY.
AND I'LL, UM, I, I KNOW WE'RE, WE'RE, UM, AT TIME, SO I'LL MAKE THIS VERY QUICK.
UM, WE, TO BE CLEAR, WE DID NOT TAKE ANY VOTES.
WE DON'T HAVE ANY OFFICIAL RECOMMENDATIONS FOR THE BOARD.
UM, WE DISCUSSED A, A NUMBER OF ITEMS, UM, THAT, THAT WE WILL ULTIMATELY, UH, NEED TO ADDRESS.
AND, UM, I'M HAPPY TO, TO SEND ANYONE A, UH, UM, A COPY OF THE AGENDA IF YOU WANT TO TAKE A LOOK AT IT.
AND, UM, AND, UH, LET ME KNOW IF YOU HAVE ANY COMMENTS OR ANYTHING WE NEED TO, UM, TO CONSIDER.
OVERALL, I WOULD, I WOULD SAY, UM, OVERALL I WOULD SAY THIS, THAT THE, THE MEETING I HAD, AS KYLE ALL KNOWS, UM, THE, THE MEETING, THE GOVERNANCE COMMITTEE MEETING THAT WE HAD ON THURSDAY, UM, FOLLOWED A PRETTY, UM, PFC CENTRIC WEEK IN DISTRICT NINE.
AND WE HAD A, A COUPLE OF, UH, OF, UH, TOWN HALLS.
AND, UM, I JUST, VICTOR, UH, WAS ABLE TO, TO MAKE IT, AND ZIN WAS ABLE TO MAKE IT, UM, JUST, AND, AND IT WAS WITH THE COMMUNITY AND, AND TALKING THROUGH WHAT THE PFC MEANS, WHAT IT'S DESIGNED TO DO.
AND OUT OF THOSE CONVERSATIONS, ONE OF THE THINGS THAT, UM, BECAME APPARENT IS THAT WE HAVE AN ENFORCEMENT MECHANISM AND AN ENFORCEMENT TOOL THAT'S NOT AVAILABLE IN OTHER PLACES.
UM, FOR INSTANCE, ON IF, IF YOU THINK ABOUT PARKING, THE ZONING OR THE CITY PLAN COMMISSION CAN ARTICULATE THE, THE PARKING, UM, PARAMETERS.
WHAT THEY CAN'T DO IS HAVE ANY KIND OF ENFORCEMENT MECHANISM TO MAKE CERTAIN THAT THOSE ARE FOLLOWED AND THE PFC DOES.
AND SO THEY'RE NOW NOT ON EVERYTHING, BUT THERE WE DO HAVE SOME, UM, THINGS IN, IN OUR PURVIEW AND SOME TOOLS THAT WE CAN USE AS PART OF THE ULTIMATE, UM, TERMS OF THE LEASE.
UM, THAT WOULD FURTHER WHAT THE COMMUNITY WANTS.
AND, UM, YOU HAVE SCOTT POINTED OUT THE, THE MAX ON THAT LAST, UM, DEAL WITH, UH, IRIN AND, UM, THE, THE CAP ON, UM, ON MAINTENANCE.
WELL, WHEN, WHEN WE DO THAT, THAT TAKES AWAY ONE OF THOSE TOOLS, UM, BECAUSE NOW WE, THERE IS A, WE CAN ONLY GO SO FAR, UM, UNDER THAT PROVISION.
SO I THINK IT'S, UH, IT'S WORTH, UM, PAYING ATTENTION TO.
I SAY ALL THAT TO, TO SAY THAT, UM, WITHIN THE GOVERNANCE COMMITTEE, WE'RE GONNA SUSS OUT ALL OF THESE THINGS AND, UM, PUT SOME STRUCTURE AND SOME, UM, POLICIES AND PROCEDURES FOR LACK OF A BETTER TERM WITH THEM.
UM, AND THAT'S REALLY, UH, WHAT WE TALKED ABOUT, UM, LAST WEEK.
SO, UH, AND THERE WERE SOME OTHER THINGS THAT I, I HIT ON MASTER LEASE ENFORCEMENT.
THAT WAS A, A BIG, UM, TOPIC OF DISCUSSION.
AND WE ALSO TALKED ABOUT TENANT BILL OF BRIGHTS, UM, AND WE DISCUSSED HOW TO, UM, HOW TO DO OUR REPORTING.
[01:50:01]
REPORT BACK TO THE GOVERN GOVERNING BODY, UM, WHICH IN THIS CASE THE CITY COUNCIL AND THEN THE TWO, RIGHT NOW THE TWO COMMITTEES THAT HAVE PURVIEW AND ECONOMIC DEVELOPMENT, HOUSING OR HOMELESSNESS.SO, UM, THERE, THERE'S A LOT IN THERE AND I, I THINK E EVEN OUR DISCUSSION TODAY WAS REALLY IN THE WEEDS.
AND, AND, AND WHAT WE'RE GONNA TRY TO DO IS CREATE SOME, UM, SOME STRUCTURE TO THAT, SOME, UM, CONSISTENCY WITH ALL OF THAT AND, UH, AND BRING IT BACK TO THIS BOARD IN THE FORM OF, UM, POLICIES, PROCEDURES, AND GOVERNANCE.
UM, KEITH, THANK YOU FOR, UH, FOR JOINING.
AND, UM, I LOOK FORWARD TO CONTINUING THOSE CONVERSATIONS.
WE'RE GONNA BE QUARTERLY, UM, FOR THE TIME BEING AND AS WE HAVE SPECIFIC ISSUES, MIGHT BE MORE OFTEN, BUT FOR NOW WE'RE GONNA START IT QUARTERLY.
I TRIED TO DO IT AS, AS QUICKLY AS I COULD.
UH, MOVING ON ITEM NUMBER NINE, FUTURE ITEMS, A POTENTIAL CHANGE TO CORPORATION BYLAWS TO ALLOW AN OPEN-ENDED APPLICATION WINDOW.
YEAH, THAT'S PENDING COUNCIL APPROVAL.
I HOPE TO GET IT ON THE COUNCIL AGENDA AUGUST, LATE AUGUST FOR US TO CONSIDER AND ADOPTING, UH, THOSE NEW BYLAWS.
BUT AS EVERYBODY KNOWS, REAL ESTATE DEALS COME ON THE MARKET ALL THROUGHOUT THE YEAR AND, UH, AND HAVING OUR ABILITY TO RECEIVE APPLICATIONS ONLY OCCUR THREE MONTHS OUT OF THE YEAR, UM, JUST DOESN'T REALLY WORK FOR THE NATURE OF REAL ESTATE DEVELOPMENT.
SO, UM, I'LL BE PRESENTING THAT TO COUNSEL FOR APPROVAL AND WE'LL TRY TO GET THAT UPDATED AND I'LL KEEP EVERYBODY ABREAST OF WHERE WE'RE AT IN THAT PROCESS.
UH, MOVING ON TO ITEM NUMBER 10.
ASSUMING THERE'S NO OTHER NEW BUSINESS OR ANYTHING, UH, I HAVE A MOTION TO ADJOURN.
AND BEFORE EVERYBODY LEAVES, YOU MIGHT WANNA KNOW THAT THE MAYOR HAS JUST RELEASED A MEMO, UM, THAT SAYS THAT HE AND THE UM, CITY MANAGER HAVE COME TO AN AGREEMENT, UH, TO MOVE FORWARD IN THE SAME TOGETHER, TOGETHER.