[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,