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SO WE WILL GO AHEAD AND CALL THE, UM, DESIGN DISTRICT TIP BOARD MEETING TO ORDER ON AUGUST 31ST, 2023
[ Dallas Design District TIF District Board Of Directors Meeting on August 31, 2023.]
AT 2:01 PM AND I'LL GO AHEAD AND TURN THE MEETING OVER TO OUR CHAIR.UM, I GUESS FIRST, UH, ORDER OF BUSINESS WOULD BE TO, UM, THAT'S THE MEETING FROM MEETING ON, UH, MAY 50.
AND WHERE'S THE, UH, NICHOLAS
SO THE NEXT ITEM IS AN ITEM THAT'S BEEN BROUGHT, UH, FOR US, UH, TO CONSIDER.
UH, IT'S A REQUEST FROM THE CABANA DEVELOPMENT CORPORATION.
UH, THEY APPARENTLY IS A GROUP THAT IS IN THE PROCESS OF ACQUIRING IT FROM CENTURIAN AMERICAN.
AND, UM, THEY WANT US TO, UM, I GUESS, UH, GET RID OF THE OLD, UH, UH, PROJECTION AUTHORIZATION OF 15 SOME MILLION AND AUTHORIZED 40 SOME MILLION FOR THIS NEW, UH, PROJECT.
SO I THINK AT THIS POINT, WHAT I'D LIKE TO DO IS TURN IT OVER TO OUR, UM, I CAN PRESENTATION, I CAN GO THROUGH QUICKLY FIRST.
YOU WANNA DO THAT FIRST? YEAH.
UM,
SO, UM, THIS IS A STAFF PREPARED POWERPOINT.
I'LL JUST KIND OF HIT THE HIGHLIGHTS.
AND THEN WE DO HAVE THE DEVELOPMENT TEAM HERE FOR QUESTIONS AS WELL AS, UM, OPPORTUNITY FOR PUBLIC, UM, COMMENTARY.
SO, UM, CAN YOU PROCEED THE NEXT SLIDE? UH, NEXT SLIDE.
SO, UM, JUST A LITTLE BIT OF QUICK BACKGROUND.
SO, THE DESIGN DISTRICT WAS ESTABLISHED IN 2005, AMENDED IN 2013.
UM, THE CABANA HOTEL PROPERTY WAS ALWAYS ANTICIPATED TO BE A, UM, CATALYST PROJECT IN THE SOUTHERN PART OF THE DESIGN DISTRICT.
IT WAS OWNED BY, UM, DALLAS COUNTY AT THE TIME THAT THE TIP WAS ESTABLISHED, UM, WAS A JAIL AT THAT TIME.
WE ALWAYS KIND OF KNEW IT COULD HAVE BEEN A REDEVELOPMENT SITE AT SOME POINT, SO IT WAS INCLUDED IN THE BOUNDARY.
UM, WE'VE HAD, UH, TAXABLE VALUE INCREASE TO DATE OF, UM, OVER A BILLION IN THE DISTRICT.
UM, TO DATE, THERE'S BEEN A LITTLE OVER 3000 RESIDENTIAL UNITS CREATED IN THE TIP DISTRICT, BUT ONLY 63 OR 2% ARE, UM, INCOME RESTRICTED.
SO THIS IS THE PROJECT LOCATION, UM, THERE AS THE, UM, BAN PROPERTY AT THE SOUTHERN END OF THE DESIGN DISTRICT.
SO, UM, A LITTLE BIT OF HISTORY ABOUT THE PROPERTY.
IT WAS, UM, DEVELOPED BY A LAS VEGAS HOTELIER, UH, J SARNO.
ANOTHER A NUMBER OF TIMES, UM, WAS HELD BY THE COUNTY AS A JAIL FACILITY IN 2017, CENTURY AMERICAN PURCHASED THE PROPERTY AND THEY HAD, UM, PLANS FOR REDEVELOPMENT.
UM, WE'LL KIND OF GO INTO THAT BRIEFLY LATER.
UH, THE PROPERTY IS ON THE, UH, NATIONAL REGISTER OF HISTORIC PLACES.
UM, THIS IS THE EXISTING CONDITION OF THE BUILDING.
SO IT'S, YOU KNOW, CLEARLY A BLIGHT IN THE SOUTHERN PART OF THE DISTRICT, UM, SUBJECT TO VANDALISM, UM, WITH IT BEING A VACANT BUILDING AND THE OTHER KIND OF SURROUNDING CONDITIONS.
SO THE PROPERTY ITSELF IS A LITTLE OVER THREE ACRES.
IT'S ACTUALLY, UM, A COUPLE OF BUILDINGS, UM, PARKING STRUCTURE.
UM, MOST OF THE ORIGINAL FEATURES HAVE BEEN, UM, DEMOLISHED OR ALTERED.
THE AREA SURROUNDING IT IS CHALLENGED WITH THE ELECTRICAL SUBSTATION AS WELL AS, UH, LIMITED STREET ACTIVITY.
UH, JUST, THERE'S BEEN A NUMBER OF, UH, PLANS AND, UM, STRATEGIES FOR THE AREA.
AND THIS, UM, AND A NUMBER OF THEM IT TALKS ABOUT WE NEED TO REDEVELOP, UM, UNDERUTILIZED PROPERTY, PROVIDE BETTER, UM, PEDESTRIAN IN TRANSIT AND, UM, RECREATIONAL CONNECTIONS, AS WELL AS, UM, PROMOT OR WHAT HAPPENS OUR NEXT SLIDE.
SO IN SUMMARY, FOR THE, THE CABANA, UM, MISSED INCOME HOUSING PROJECT, IT HAS BEEN REVIEWED BY, UM, THE COUNCILS HOUSING AND HOMELESS SOLUTIONS COMMITTEE.
UM, WAS GIVEN SUPPORT FOR PURSUING 9% OF LOW
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INCOME TAX CREDITS.UM, THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, UM, WENT THROUGH ITS RANKING PROCESS AND THE PROJECT WAS THE HIGHEST SCORING, UM, PROJECT IN, UM, THAT APPLICATION CYCLE FOR REGION THREE URBAN PROJECTS.
UM, QUICK SUMMARY OF THE PROJECT.
SO, UM, THE CABANA, UM, DEVELOPMENT, UM, SYCAMORE DEVELOPMENT IS THE DEVELOPMENT ENTITY.
THERE'S, YOU KNOW, A COMPLICATED, UM, OWNERSHIP STRUCTURE WHICH WE'LL SHARE, UM, BRIEFLY IN THE, THE APPENDICES.
SO THE PROJECT WOULD, UM, REDEVELOP THE PROPERTY DELIVERING 160 UNITS THAT ARE MIXED INCOME IN QUITE A BAND OF, UM, RANGE OF INCOMES, ANYWHERE FROM 30% A M I TO MARKET RATE, UM, IN A VARIETY OF, UM, UNIT WELL.
SO THE PROJECT ITSELF IS ESTIMATED TO COST OVER 116 MILLION, UM, TO DELIVER THE, UM, THE MIXED INCOME, MULTIFAMILY STRUCTURED PARKING, AS WELL AS, UM, RESTORING THE, UM, AMENITIES OF THE PROPERTY, THE, THE POOL AND COURTYARD AREAS.
SO IN TERMS OF, UM, YOU KNOW, MIXED INCOME DEVELOPMENT AND THE HOUSING TAX CREDITS, UM, A NUMBER OF AMENITIES WILL BE, BE PROVIDED BOTH PHYSICAL AMENITIES, UM, AND THE UNITS, THE EXTERIOR, AS WELL AS RESIDENTIAL SERVICES TO SUPPORT, UM, SOME OF THE LOW AND MODERATE INCOME RESIDENTS.
SO, JUST A QUICK CONCEPTUAL PLAN THAT SHOWS THE BUILDINGS AS WELL AS, UM, AN ILLUSTRATION OF THE, THE STREET STATE, UM, IMPROVEMENTS TO, TO CREATE THAT BETTER, UM, PEDESTRIAN PRESENCE AROUND THE SITE, PARTICULARLY ON SLOCUM STREET, WHICH IS NOW, IT IS VERY MUCH SORT OF NOT VERY WALKABLE AND, UM, HOSPITABLE FOR PEDESTRIANS.
UH, JUST A QUICK LOOK AT A MORE DETAILED, UM, SITE PLAN FOR THE, THE PROPERTY.
UM, THERE'S A RENDERING OF THE PROJECT, UM, FROM THE, UM, THE STEM SUPPORT VIEW.
UM, WE CAN KIND OF GO PAST THESE ELEVATIONS REAL QUICKLY.
SO THE, UM, URBAN DESIGN PEER REVIEW PANEL, UH, REVIEWED THE PROJECT, UM, MADE A NUMBER OF RECOMMENDATIONS, AND THE DEVELOPER HAS RESPONDED TO THOSE SUGGESTIONS TO THE SATISFACTION OF THE, THE PANEL.
AND AS A FINAL STEP, ONCE THEY'RE AT THE PERMIT STAGE, THEY'LL SHARE THOSE PLANS WITH, UM, URBAN DESIGN STAFF FOR A FINAL REVIEW.
UH, NEXT STEP, UH, THIS IS THE OVERALL PROJECT BUDGET, UM, ESTIMATED BUDGET, UM, LIKE I SAID, UH, OVER 116 MILLION.
UH, THE PROPOSED SOURCES, AS YOU CAN SEE, UM, THERE'S A, THERE'S A LOAN AS WELL AS HISTORIC TAX CREDIT EQUITY, LOW INCOME HOUSING TAX, CREDIT EQUITY, AND A DEFERRED DEVELOPMENT FEE.
SO THE RECOMMENDED, UM, TIF SUBSIDY IS A NOT TO EXCEED 41 MILLION, WHICH IS COMPRISED OF AN ESTIMATED, UM, COST FOR ENVIRONMENTAL REMEDIATION, DEMOLITION, PUBLIC INFRASTRUCTURE, AS WELL AS AN ECONOMIC DEVELOPMENT GRANT AS A WAY TO MAKE THE PROJECT ECONOMICALLY VIABLE.
SO, UM, THIS IS A LITTLE BIT UNUSUAL, BUT BECAUSE OF, UM, INTEREST COSTS THESE DAYS AND TRYING TO KIND OF MINIMIZE THE GAP FOR THIS PROJECT, WE'RE RECOMMENDING THAT THESE TIF SUBSIDY BE, UM, MADE IN A COUPLE OF INSTALLMENTS.
UH, ONE OF 5 MILLION AT THE CLOSING OF THE PROPERTY, WHICH WILL BE SECURED BY DEED OF TRUST, AS WELL AS THE GUARANTEE.
AND THE PROPERTY IS AT 50% COMPLETION, ANOTHER 5 BILLION.
AGAIN, IT'S SECURED BY THE DEED OF TRUST AND THE GUARANTEE.
AND THEN ONCE COMPLETED, UM, INSTALLMENT THREE AND POSSIBLY ADDITIONAL INSTALL INSTALLMENTS DEPENDING ON THE AVAILABILITY OF CASH, UM, WOULD BE PROVIDED.
UH, ONE THING THAT'S UNIQUE THAT WE'VE TALKED ABOUT DOING IN THE PAST, BUT WE HAVEN'T ACTUALLY DONE UNTIL NOW, IS RECOMMEND THAT WE HAVE A POST-CONSTRUCTION AUDIT OF THE PROJECT.
UM, SOME OF THE COSTS ARE, SEEM A LITTLE HIGH, BUT WE DIDN'T WANNA ARBITRARILY, UM, HIGH UP, YOU KNOW, CERTAIN THINGS IN THE BUDGET AND CAUSE PROBLEMS FOR THE, THE BASIS FOR THEIR TAX CREDIT EQUITY.
SO WHAT WE'VE DONE IS HAD A PROVISION THAT IF THEIR ACTUAL COSTS FALL BELOW 116 MILLION BASED ON A POST-CONSTRUCTION INDEPENDENT AUDIT, WE WOULD POTENTIALLY ADJUST THE TIPS SUBSIDY DOWNWARD FOR EVERY A HUNDRED THOUSAND.
BELOW THE 116, WE WOULD ADJUST OUR FUNDING DOWN BY 35,000.
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SO, UM, IF THE BOARD SUPPORTS THE PROJECT, WE WOULD BE LOOKING AT GOING TO THE ECONOMIC DEVELOPMENT COMMITTEE AND CITY COUNCIL FOR FINAL APPROVAL.SO IN THE ATTENDANCE, JUST A QUICK OVERVIEW OF THE DEVELOPMENT TEAM.
UM, JUST A QUICK LITTLE DIAGRAM OF THE OWNERSHIP STRUCTURE.
YOU KNOW, TAX CREDIT PROJECTS ARE SORT OF A COMPLICATED ANIMAL.
THE DEVELOPER CAN ANSWER QUESTIONS ABOUT THAT LATER.
UM, SO ONE THING TO NOTE THIS PROJECT IS, UM, VERY CLOSE TO WHAT WE CALL HIGH OPPORTUNITY AREAS.
THE PROPERTY SURROUNDING PROPERTY ITSELF IS, UM, IS BLIGHTED, BUT IT'S VERY CLOSE TO, TO DOWNTOWN AND UPTOWN HIGHLAND PARK IN TERMS OF DELIVERING, UM, HOUSING OPPORTUNITIES FOR LOW MODERN INCOME PEOPLE AND FOLKS PROXIMITY TO, TO JOBS AND OTHER AMENITIES.
UH, I WON'T GO INTO ALL THE CONDITIONS OF THE AGREEMENT.
A LOT OF THESE ARE VERY COMMON.
WE HAVE A MINIMUM INVESTMENT REQUIREMENT.
UH, WE WILL REQUIRE THAT, UM, THE AFFORDABILITY PERIOD FOR THE TIFF PURPOSES IS 15 YEARS.
OH, DID WE JUST LOSE OUR PRESENTATION? SO, ONE THING TO NOTE.
SO THE TIFF REQUIREMENTS ARE A 15 YEAR AFFORDABILITY PERIOD.
BECAUSE OF THE LOAN HOUSING TAX CREDITS, WE'LL BE GETTING AFFORD FIVE YEAR AFFORDABILITY PERIOD FOR UNITS.
I THINK SHE'S JUST GONNA RELOAD IT.
A LOT OF THIS IS PRETTY STANDARD IN TERMS OF QUARTERLY REPORTING, UM, COMPLIANCE WITH DESIGN GUIDELINES.
UM, WE WILL ASK FOR A, UM, A LOCAL HIRING PLAN, UM, FOR ANY JOBS CREATED BY THE PROJECT.
UH, WE'LL ALSO REQUIRE THAT, UM, 70% OF THE, UM, PROJECT BE LEASED AND OCCUPIED BEFORE WE START THE, THE THIRD AND ADDITIONAL INSTALLMENTS OF THE PROJECT.
UH, MINOR MODIFICATIONS CAN BE APPROVED.
DEADLINE EXTENSIONS UP TO 12 MONTHS BY THE TIP BOARD.
SO THIS IS, UM, IMPORTANT TO NOTE.
SO IF THIS PROJECT'S APPROVED, WE STILL HAVE OVER 45 MILLION OF WHAT I CALL BUDGET CAPACITY FOR THE TIF DISTRICT.
UM, I DID SOME CONSERVATIVE REVIEW OF OUR, UM, EXISTING CASH AS WELL AS, UM, PROJECTIONS FOR WHAT WE MIGHT COLLECT IN REVENUE JUST BASED ON KNOWN PROJECTS.
AND CONSERVATIVELY, UM, WE'RE LOOKING AT HAVING AT LEAST 24, 20 5 MILLION IN AVAILABLE FUNDING, EVEN IF THIS PROJECT'S APPROVED.
AND POTENTIALLY MORE JUST DEPENDING ON THE PACE OF DEVELOPMENT AND PROPERTY GROWTH.
SO THAT'S SOMETHING THAT, UM, YOU KNOW, HADN'T BEEN SHARED UP FRONT.
'CAUSE THERE MAY BE SOME CONCERNS THAT THIS PROJECT WOULD TAKE UP ALL OF THE CAPACITY OF THE TIF DISTRICT.
UM, AS OF TODAY, WE WOULD STILL HAVE, UM, AVAILABLE CASH.
AND THEN THROUGH THE END OF THE TERM, THE TIF DISTRICT.
LIKE I SAID, WE ANTICIPATE HAVING AT LEAST 24 MILLION FOR ADDITIONAL PROJECTS AND POTENTIALLY MORE.
AND WE HAVE ALSO SET ASIDE CASH FOR ALL OF OUR EXISTING OBLIGATIONS, INCLUDING THE 7 MILLION THAT WE HAVE FROM, FOR THE FRAIL PROJECT.
SO THAT CASH HAS ALREADY BEEN SET ASIDE SEPARATE FROM ANY, UM, PLEDGE FOR THIS PROJECT.
THESE ARE THE AMOUNTS FOR THE CURRENT FISCAL YEAR.
UM, THIS IS THE ESTIMATES FOR THE ENTIRE, THE REMAINING LIFE, THE DISTRICT.
UM, SO JUST A QUICK, UM, MENTION OF THE, THE PRIOR, UH, TIP AUTHORIZATION.
WE DID HAVE A HOTEL PROJECT THAT WAS PROPOSED THAT, UM, COMMITTED 15.5 MILLION TO UNFORTUNATELY, UM, BASED ON COVID DELAYS AND OTHER CHALLENGES THAT, UM, DEVELOPERS DECIDED NOT TO GO FORWARD WITH THAT PROJECT AND DID FORMALLY, UM, REQUEST THAT WE RESCIND, UM, THAT PREVIOUS FUNDING AWARD SUBJECT TO CITY COUNCIL APPROVING MS NEWTON'S INCENTIVES AND THE CLOSING ON THE PROPERTY.
SO WAS THAT 18 MILLION INCLUDED IN YOUR ACCOUNT ISSUES? NO, THAT WAS TAKEN OUT.
YEAH, BUT YOU'RE SAYING WE HAVE 24 MILLION ON WE WILL HAVE THAT.
THE ESTIMATE IS THAT WE'LL HAVE 24 MILLION IN CASH, SO THE END OF THE TERM.
YEAH, AND THAT'S CONSERVATIVE TRYING TO GET SOMEBODY IN AT THE END OF THE TERM.
IN OTHER, IT'S CONSERVATIVE, UH, CONSERVATIVELY WE WILL, AND THIS IST YOU KNOW, ANNUALLY ALONG THE WAY, BUT, UH, BETWEEN NOW AND THE END OF, OF THE LIFE, I ESTIMATE THAT WE WOULD HAVE AT LEAST 24 MILLION ALONG THE WAY FOR OTHER PROJECTS AND POSSIBLY MORE, WE HAVE MORE BUDGET CAPACITY, JUST REVENUE.
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SO AS OF NOW, EVEN SETTING ASIDE THE OBLIGATIONS, WE ALREADY HAVE, WE HAVE 22 MILLION IN UNOBLIGATED CASH LOG NOW, AND WE'LL CONTINUE TO COLLECT MORE FUNDING.SO IF WE NET OUT WHAT WE'RE POTENTIALLY COMMITTING TO THIS PROJECT BETWEEN OUR EXISTING CASH AND WHAT A CONSERVATIVELY PROJECT WILL COLLECT EVERY YEAR, WE SHOULD HAVE AT LEAST 24 MILLION BETWEEN NOW AND THE END OF THE DISTRICT TO FUND OTHER THINGS.
AND POSSIBLY MORE DEPENDENT ON THE GROWTH OF THE DISTRICT.
LET'S SAY WE'RE, WE'RE AT YEAR MINUS ONE OR TWO AND WE'RE TRYING TO GET TO USE THAT.
IS THERE A WAY TO EXTEND THE, THE, THE TIP WITHOUT, WELL, WE'VE BEEN TALKING ABOUT THAT, BUT, BUT WE'VE GOT THESE BIG PROJECTS WANTING TO, IF WE COMMIT TO A PROJECT AND WE'RE UNDER CONTRACT, WE CAN MAKE THOSE COMMITMENTS AND THEN THE, THE LIFE OF THE TERM ENDS, BUT THOSE COMMITMENTS ARE IN PLACE, UM, IN TERMS OF LIKE MOVING FORWARD WITHOUT COMMITMENTS THAT WOULD THE CITY COUNCIL DECISION THAT WE COULD EXTEND THE TERM.
BUT WE HAVE IN A FEW CASES, UM, WRAPPED UP DISTRICTS LIKE CEDARS AND STATE THOMAS, AND WE'VE BASICALLY CONTRACTUALLY COMMITTED THAT CASH.
BUT IT'LL TAKE A WHILE TO IMPLEMENT PROJECTS.
BUT AS LONG AS WE CONTRACTUALLY COMMIT THEM BEFORE THE END OF THE TERM, WE'VE BEEN ABLE TO LET THINGS GET BUILT AFTER THE LIFE OF THE DISTRICT, IF THAT MAKES SENSE.
I THINK THAT WAS THE END OF THE, YEAH, THAT WAS THE END OF THE OFFICIAL PRESENTATION.
AND THE DEVELOPMENT TEAM IS HERE TO ANSWER ANY QUESTIONS.
AND I KNOW WE DO HAVE SOME, UM, PUBLIC COMMENTS.
I DID, PETER, ON YOUR STACK, THERE ARE SOME, SOME EMAIL LETTERS AND AT SOME POINT WE CAN ALSO, FOR THE VIRTUAL FOLKS, WE CAN SHARE THAT INFORMATION AS WELL.
SO, UM, DO YOU ALL HAVE ANYTHING THAT YOU WANTED TO ADD TO THIS PRESENTATION BEFORE WE DISCUSS IT? A FEW THINGS, IF YOU DON'T MIND, MR. CONNOR.
UM, AND, AND ZACH, I WANT TO ADD SOME AS WELL.
UM, I'D LIKE TO START AT THE END FIRST BECAUSE I THINK IT'S A PRETTY INSIGHTFUL CONCERN ABOUT HOW DO YOU HANDLE PROJECTS AT THE END OF THE TIP TERMS. UM, I AGREE WITH SUE.
IF, IF THE THING'S GONNA END AND YOU'VE GOT SOMEBODY COMING IN AND THEY NEED, YOU KNOW, THE TIFF OBVIOUSLY IS A WAY TO MAKE PROJECTS VIABLE THAT OTHERWISE WOULDN'T BE.
UM, YOU CAN GET THAT DONE CONTRACTUALLY.
I WOULD ALSO POINT OUT THOUGH THAT UH, UH, COUNCILOR
UM, PART OF THAT IS IT HASN'T DONE AS MANY PROJECTS AS FAST AS I THINK PEOPLE THOUGHT IT WOULD.
UM, THERE WAS SO MUCH ACTIVITY IN THE AREA, YOU KNOW, AND IT, IT, TO ME, IT SEEMED LIKE THERE SHOULD BE MORE PROJECTS COMING THROUGH.
AND THERE WAS KIND OF A PAUSE HERE, DUNNO EXACTLY WHY, BUT IT SEEMS PRETTY CLEAR THAT THERE'S STILL DEMAND OUT THERE FOR, UM, TO FUNDING.
AND SO I THINK, UM, THIS COUNCIL, YOU KNOW, IT'S CHANGED TWO MEMBERS SINCE IT DID THIS, BUT IT EXTENDED THE, UH, DOWNTOWN CONNECTION TIFF.
UM, AND THEY'RE, YOU KNOW, PRIOR TO COVID WE'VE BEEN MOVING AWAY FROM TIFF A LITTLE BIT AND TRYING TO WIND SOME OF 'EM UP.
UM, BECAUSE THERE WAS A SENSE THAT PLACES THAT HAD TO FUNDING AVAILABLE MIGHT BE ACTUALLY SELF-SUFFICIENT, YOU KNOW, AT THAT POINT.
AND OF COURSE COVID SHOWED US THAT DOWNTOWN IS NOT SELF-SUFFICIENT.
SO I THINK THERE'S, I DON'T THINK THERE'S GONNA BE A POLITICAL PROBLEM WITH EXTENDING A LIFE OF THIS TIFF.
UM, THE OTHER THING I WOULD POINT OUT IS, UM, THE FAIR HOUSING ISSUE HERE IS PRETTY IMPORTANT.
UM, THE TIFF GUIDELINE OF 15 YEAR AFFORD AFFORDABILITY IS PERFECTLY REASONABLE.
THAT MAKES A LOT OF DEALS DOABLE.
DEVELOPERS WHO ARE NOT NECESSARILY AFFORDABLE HOUSING DEVELOPERS, YOU'RE DEALING WITH THE MOST ACTIVE, AFFORDABLE HOUSING DEVELOPER IN THE CITY AT THIS POINT.
AND SOMEBODY WHO HAS THE LAST TWO TOP RATED T D H C A PROJECTS IN THE STATE.
THIS DEVELOPER YOU'RE TALKING ABOUT? YEAH.
SO WHAT, WHICH ARE THOSE PROJECTS THAT YOU'VE DONE? THE, THE, UH, PROJECT THEY GOT THE HIGHEST SCORE IN 21 IS CALLED CYPRESS CREEK.
IT'S JUST SOUTH OF FOREST ON 75.
AND THEN THIS ONE WAS THE HIGHEST SCORE AS SO POINTED OUT, UM, IT, THE,
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THE EX WON BANNER.BUT IT HASN'T BEEN DONE, BUT, BUT AT LEAST IT'S BEEN AWARD.
UM, YOU DON'T NORMALLY GET THIS LEVEL OF AFFORDABILITY ON A TIP PROJECT AND I, IT'S, YOU KNOW, THEY CAN SPEAK FOR THEMSELVES, BUT I THINK THAT'S ONE OF THE THINGS THAT STAFF IS LOOKING AT, IS IN RELATIONSHIP TRYING TO SQUARE UP THE POLICY OF THE TIF WITH THE, UM, HOUSING POLICY OF THE CITY.
THIS MAKES A VERY NICE MATCH FOR THOSE TWO.
UM, AND I THINK THE OTHER THING TO THINK ABOUT THERE IS THAT THIS, THIS DISTRICT, THE DESIGN DISTRICT, UM, IS, HAS A COMPLETE DURP OF AFFORDABLE HOUSING TO THE POINT THAT IT COULD BECOME A PROBLEM, UH, FROM A FEDERAL FAIR HOUSING STANDPOINT AT SOME POINT.
UM, AND I, I THINK THAT THE TIFF BOARD HAS A GREAT OPPORTUNITY TO AVOID ANY SORT OF CRITICISM DOWN THE ROAD OF LACK OF, UH, FURTHERING AFFIRMATIVELY, FURTHERING FAIR HOUSING, WHICH I THINK IS THE, UH, THE GOAL THAT WE'VE ALL BEEN GIVEN BY THE, THE FEDS.
UM, SO AGAIN, WITH THE POST-CONSTRUCTION AUDIT, IF FOR SOME REASON THINGS GET A LITTLE BIT BETTER THAN THEY THINK RIGHT NOW IN TERMS OF CONSTRUCTION COSTS, AND WE ALL HOPE THAT IT DOES, UH, THEN YOU COULD SAVE SOME ON THAT AS WELL.
BUT I THINK THAT THE, THAT THE, THE BENEFITS YOU'RE GETTING OUTTA THIS PROJECT COMPARED TO YOUR NORMAL TIFF APPLICANT, UM, THE KEEPING IT IN LINE WITH BOTH THE CITY AND THE FEDERAL
AND I REALLY THINK THE TIFF IS GONNA BE EXTENDED.
SO YOU HAVE, YOU HAVE, LIZ FORD HAS QUITE A BIT OF MONEY TO PLAY WITH.
OBVIOUSLY YOU WANT CREATIVE PEOPLE ON TIF BOARDS 'CAUSE YOU'RE, YOU'RE LOOKING AT PROJECTS THAT THE PRIVATE SECTOR CAN'T FIGURE OUT HOW TO DO.
SO WE WOULD APPRECIATE YOU, UH, GIVING US THE THUMBS UP ON THIS.
IT'S ONE THAT I CAN TELL YOU VERY CONFIDENTLY THAT, UH, COUNCIL MEMBER VIS WANTS TO SEE.
I JUST WANTED TO SAY MY, UH, WEBEX APP IS DRAINING MY BATTERY AT AN EXTRAORDINARY RATE.
UH, I DON'T KNOW HOW LONG, MUCH LONGER.
I CAN'T SEE HOW MANY OTHER BOARD MEMBERS ARE, ARE ON.
UH, BUT, UH, I I MAY HAVE TO DROP OFF UNEXPECTEDLY.
YEAH, WE, WE WILL LOSE A QUORUM IF YOU DROP OFF.
UM, DID YOU, REAL QUICK, IF I MAY, IF THERE'S NO QUORUM, THERE'S NO VOTE.
SO LUIS, IS THERE A PLACE YOU CAN GET TO? I CANNOT, UNFORTUNATELY.
WE'RE DO THE DEAL WITH IT AS WE DEAL WITH IT.
HUH? WHAT'D YOU SAY, LUIS? OH, I SAID PLEASE.
NO, THERE IS NO RUSH, BUT I, I JUST WANTED TO LET YOU KNOW THAT I MAY DROP OFF.
UM, DID, DID YOU HAVE SOMETHING ELSE YOU WANTED TO ADD? UM, SURE, I MEAN, JUST A LITTLE BIT OF BACKGROUND.
UM, WE'VE GOT THREE, UH, 9% AWARDED TAX CREDIT PROJECTS IN ST.
DALLAS AND ADDITIONAL ONE PLANO, TWO MORE IN TEMPLE AND ONE IN TYLER.
THESE ARE THE ONES YOU'VE COMPLETED THAT ARE ALL, THEY'RE ALL IN, UH, ONE'S COMPLETED.
THE REST ARE IN VARIOUS STAGES OF DEVELOPMENT, BUT I'VE BEEN DOING AFFORDABLE HOUSING SINCE 2016.
UM, THESE ARE THE ONES THAT WE'RE ACTUALLY PRINCIPAL IN A BUNCH OF OTHER HAVE BEEN COMPLETED THAT WE'RE NOT A PRINCIPAL IN.
BUT, UM, SINCE THEN WE'VE BEEN AWARDED, YOU KNOW, IN EXCESS OF $150 MILLION IN TAX CREDITS TO DO THESE DEALS.
THIS WILL BE OUR SECOND DEAL THAT WAS LAYERED WITH TIF SUBSIDY.
WE DID ONE IN FOR WORTH AVENUE CORRIDOR DISTRICT AS WELL.
UM, IT'S, YOU KNOW, THE STRUGGLE TO PUT AFFORDABLE HOUSING IN GOOD AREAS IN DALLAS IS EXTREMELY DIFFICULT.
UM, TIFFS DO GIVE US THE OPPORTUNITY TO DO THEM IN PLACES THAT IT WOULD NOT OTHERWISE BE FEASIBLE.
UM, WE HAVE AN EXTREMELY, I WOULD SAY, NARROW WINDOW OF HOW WE MAKE THESE PROJECTS WORK.
WE, WE DON'T CONTROL HOW MUCH WE CHARGE AND RENT WHEN THOSE AFFORDABLE UNITS.
SO, UM, I KNOW THAT'S A HUGE TIP ASK.
SO ON YOUR LIKE, SIDE WAS CREEK, HOW, HOW IS THAT PERFORMED? THAT ONE'S UNDER DEVELOPMENT RIGHT NOW.
UM, SO THE ONES THAT YOU, WHICH ONE HAVE YOU COMPLETED? UH, TYLER AND THEN, UM, FORWARD THAT ONE.
UM, BUT I CAN TELL YOU THAT THE STATEWIDE OCCUPANCY LEVEL OF AFFORDABLE HOUSING DEVELOPMENT IN TEXAS IS OVER 98%.
SO I MEAN, IT'S NOT A MATTER OF HOW THESE PERFORM, THEY PERFORM.
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YOU KNOW, WE'RE PARTNERED WITH, UH, A PARTNER THAT HAS, YOU KNOW, 10,000 UNITS.SO, UM, THAT'S UNCAP THAT'S NOT, YOU KNOW, THE ISSUE.
THERE'S SO LITTLE AFFORDABLE HOUSING THAT THESE DEALS ALL.
ONE THING TO POINT ABOUT THIS, THIS IS TRUE MIXED INCOME.
SO IT'S NOT HAVING ALL AFFORDABLE UNITS OF ONE BUILDING.
IT REALLY IS, IT'S GOT MARKET RATE AS WELL.
HOW, HOW DOES THAT WORK AS FAR AS HAVING MARKET RATE ON THE OTHER? DO THEY HAVE ANY PROBLEMS, UH, OCCUPANCY THAT WAY? I MEAN, UH, GENERALLY WE, WE GET UNDERWRITTEN AND ABOUT 10% DISCOUNTED MARKET RATE RENTS BECAUSE OF THAT.
HOWEVER, UM, THE PORTFOLIO THAT WE WORK WITH THAT'S BEEN MIXED INCOME IN THE SAME KIND OF SENSE, HAS BEATEN THAT UNDERWRITING BY 15 TO 20% PRETTY MUCH EVERY TIME.
SO, UM, I THINK IT'S A CONCERN ON THE FRONT END.
AND THEN ONCE YOU GET THE PROPERTY UP AND RUNNING, IT'S FAR LESS OF A CONCERN.
I MEAN, JUST FOR ME PERSONALLY, I MEAN, I THINK THE, OBVIOUSLY YES, WE, WE NEED MORE HOUSING AND WE NEED IT ENCLOSED.
WE NEED IT WHERE IT'S NEAR, UM, UH, TRANSIT, WHERE IT'S NEAR MARKETS AND, AND, AND, UH, THINK THAT PEOPLE CAN ACCESS, SO FROM THAT STANDPOINT, YOU KNOW, SUPPORT ANY KIND OF EXTRA HOUSING, WILLING HOUSING.
UM, SO I THINK THAT, UH, BUT I HAVE SOME OTHER QUESTIONS I'D LIKE TO ASK.
UH, WHAT WE'RE, WHAT WE'RE SEEING? WELL, I GOT A FEW MORE COMMENTS.
SO I WILL SAY THAT, UM, A LOT OF THE TIPS ARE REALLY UNDERPERFORMING WHEN IT COMES TO HOUSING.
AND THE REASON FOR THAT IS ONCE THE RENTAL RATES GET SO HIGH, NOBODY WANTS TO BOTHER WITH THE TIP BECAUSE THEY DON'T WANNA TAKE ON THE AFFORDABILITY.
UM, SO FORT WORTH AVENUE HAD THOUSANDS OF UNITS DEVELOPED WITHOUT USING THE TIP.
THE DESIGN DISTRICT IS THE SAME THOUSANDS OF UNITS DEVELOPED WITHOUT USING THE TIP BECAUSE IN, IN, YOU KNOW, THE ECONOMIC STANDPOINT, IT JUST DOESN'T MAKE SENSE TO TAKE THAT AFFORDABLE HIT FOR THE TIP, THE TIP INCENTIVE.
UM, AND ONCE YOU GET TO THAT POINT, REALLY THE MULTIFAMILY DEVELOPERS JUST FOUND TO IGNORE IT.
THEY JUST STOP, YOU KNOW, ENGAGING WITH THE TIFF AND DOING AFFORDABLE HOUSING IN THESE TIFF DISTRICTS.
AND, YOU KNOW, COMING FROM, YOU KNOW, ALL I DO IS AFFORDABLE HOUSING.
UM, 80%, SORRY, ALL OF WHAT I DO IS AFFORDABLE HOUSING.
AND SO THE TIFF DISTRICTS ONLY PRODUCE 80% A M I UNITS, UNITS.
WE'RE PRODUCING 30 TO 80% A M I UNITS.
THE BIGGEST NEED IN THE CITY OF DALLAS IS 30 TO 60% A M I.
AND THERE'S NOT A SINGLE UNIT IN THE DESIGN DISTRICT THAT HAS THAT, UM, INCOME BREAKDOWN.
SO THAT, THAT'S THE LAST THING YOU WANNA ADD.
UM, DO YOU HAVE ANY COMMENTS OR QUESTIONS? YEAH, I DID.
SO I'M REACHING THESE EMAILS THAT CAME IN, SUE, AND I THINK THIS QUESTION'S MOSTLY FOR YOU.
AND I MEAN, THEY'RE KIND OF OPEN-ENDED.
THEY'RE BASICALLY EXPRESSING CONCERN.
UM, I'M JUST CURIOUS, DID A TEAM WORK AT ANY OPTIONS WITH, YOU KNOW, SLIDING SCALE UP UP TO 41 MILLION OR IT IS A NOT TO EXCEED NUMBER, SO IT'S NOT A 41 MILLION.
THERE'S A COUPLE OF CHECKS AND BALANCES.
ONE, WHEN IT COMES TO THE PUBLIC INFRASTRUCTURE, THAT HAS TO BE PROVED UP BY WHAT THE ACTUAL COSTS ARE IN TERMS OF THE GRANT COMPONENT.
THAT POST-CONSTRUCTION AUDIT, WE'RE GONNA LOOK AT, IS THEIR BUDGET END UP BEING BELOW OR DID THE COST END BEING BELOW 160 MILLION AND THEN WE CAN ADJUST THAT GRANT COMPONENT DOWN OR TWO.
SO THERE ARE SOME CHECKS AND BALANCES.
SO NOT TO EXCEED, BUT THAT DOESN'T MEAN THAT IT'S A GUARANTEED 41.
THERE ARE SOME MOVING FACTORS I SUE YOU WANNA TALK ABOUT? OH YEAH.
SO, UM, ONE THING THAT WASN'T IN THE, THE PRESENTATION FOR THE BOARD WAS WE DID HAVE AN OUTSIDE UNDERWRITER THAT'S, UM, REVIEWED THE PROJECT.
UM, YOU KNOW, BASED ON THAT REVIEW AND THE CURRENT CONSTRAINTS FOR THE TAX CREDIT STRUCTURE, UM, YOU KNOW, THEY'VE MAXIMIZED THEIR, THEIR PRIVATE DEBT, THEY'VE MAXIMIZED WHAT'S ALLOWED BY THE TAX CREDITS.
YOU KNOW, THEY COULD GET MORE TAX CREDITS, THEY WOULDN'T NEED AS MUCH TIP FUNDS, BUT JUST THERE ARE SOME REALITIES ABOUT SOME RESTRICTIONS ON THE AMOUNT OF TAX CREDITS THEY CAN GET.
SO BASED ON THAT, AND YOU KNOW, THERE WAS A LITTLE BIT OF CONCERN THAT SOME OF THE SOFT COSTS WERE HIGH, BUT AGAIN, BECAUSE OF THE WAY THE TAX CREDIT FORMULATION HAPPENS, IF WE ARBITRARILY SAID NO, CUT THIS LINE ITEM, IT JUST SORT OF SCRAMBLES THEIR WHOLE, THEIR WHOLE DECK.
SO WE WOULD RATHER JUST MOVE FORWARD WITH A PROVISION TO DO THAT POST-CONSTRUCTION AUDIT AND DEAL WITH ADJUSTMENTS THAT WAY RATHER THAN ARBITRARILY SAY, GO CUT THE SLIDE ITEM JUST BECAUSE WE THINK IT MIGHT BE A LITTLE HIGH.
AND I COULD ADD A LITTLE BIT MORE TO THAT.
THIS IS GONNA BE THE MOST SCRUTINIZED, UH, DEVELOPMENT YOU'VE EVER SEEN FINANCIALLY BECAUSE WE'RE ALSO GETTING FEDERAL TAX CREDIT.
SO WE'RE GOING THROUGH AUDITS THAT WAY.
WE HAVE TO DO A COST CERTIFICATION.
UM, SO WE HAD TO GO THROUGH T D H C UNDERWRITING, WE HAD TO GET A PLAN COST REVIEW FROM AN OUTSIDE PLAN COST REVIEWER.
[00:30:01]
ALL WAS COMPLETED ALREADY.AND YOU KNOW, IT SAID WE HAD A $10 MILLION, UH, DEVELOPER FEE.
MOST OF THAT'S DEFERRED INTEREST RATES HAVE ALREADY MOVED EVEN MORE OF THAT'S DEFERRED.
UM, IF I TOLD YOU WHAT WE PROFIT AS A AFFORDABLE HOUSING DEVELOPER, LET'S JUST SAY THAT WITH THIS PROJECT, WE END UP WITH A $3 MILLION DEVELOPER FEE.
AND THEN WE'LL PROBABLY END UP SOMEWHERE IN THE THREE TO $400,000 A YEAR IN CASH FLOW RANGE FOR $170 MILLION PROJECT.
IF YOU TOLD A CONVENTIONAL DEVELOPER, THOSE ARE THE NUMBERS AND THAT'S WHAT YOU'RE DOING.
NOT A SINGLE CONVENTIONAL DEVELOPER'S GOING TO DO THAT, THAT'S JUST ENTIRELY TOO MUCH RISK FOR A VERY LOW REWARD.
BUT WE ARE VERY MISSION DRIVEN AND THIS IS WHAT WE DO, IS WE DO AFFORDABLE HOUSING AND IT'S EXTREMELY IMPORTANT.
AND WHEN YOU DO A PROJECT LIKE THIS, IT'S A, A VERY UNIQUE OPPORTUNITY.
AND NUMBERS HONESTLY DON'T MAKE SENSE IN TERMS OF A RISK REWARD ANALYSIS FOR THE DEVELOPER SIDE.
IT DOESN'T MAKE SENSE, BUT IT IS JUST, YOU KNOW, A GREAT OPPORTUNITY TO LEAVE A MARK ON THE CITY OF DALLAS AND TO PUT AFFORDABLE HOUSING IN A PROPERTY THAT IT WOULD NEVER BE IN OTHERWISE.
WE ALSO DID SOME ANALYSIS OF, WE LOOKED AT DOWNTOWN PROJECTS BECAUSE THERE'S BEEN A LOT OF RESIDENTIAL CONVERSIONS THERE WITH THIS, THIS IS NEW FOR, WE'VE NEVER DONE ANYTHING LIKE THIS FOR IN THIS DISTRICT, BUT THERE'S BEEN A NUMBER DOWNTOWN AND ON A, UM, PER UNIT BASIS, UM, YOU KNOW, THE SUBSIDY PER UNIT IS MUCH LOWER HERE AND WE'RE GETTING, UM, 40% AFFORDABLE FOR 45 YEARS COMPARED TO 10% AFFORDABLE FOR ONLY 15.
SO FROM THAT PERSPECTIVE, WE'RE GETTING MORE AFFORDABILITY AT LESS PER UNIT COST TO RENOVATE HERE THAN WE HAD SOME OF THE DOWNTOWN PROJECTS.
WELL, AND ONE THING I WOULD ADD TO THAT IS BACK TO THE POINT OF THE AFFIRMATIVELY FURTHERING FAIR HOUSING.
SOME OF YOU ALL PROBABLY REMEMBER THAT IT WAS A TIFF GRANT TO FOREST CITY, OR YEAH, IT WAS TO FOREST CITY FOR THE MERCK PROJECT THAT STARTED HUD THREATENING THE CITY WITH TENS OR POSSIBLY HUNDREDS OF MILLIONS OF DOLLARS IN, UH, CLAWBACKS.
UM, AND, AND CUTTING OFF FROM AFFORDABLE HOUSING FUNDS IN THE FUTURE.
AND, YOU KNOW, IT, WE DIDN'T KNOW AS MUCH THEN AS WE KNOW NOW.
IT'S NOT LIKE TRYING TO BLAME THE PEOPLE WHO MAKE THOSE DECISIONS, BUT AN INVESTMENT IN AFFORDABLE HOUSING ON A PROJECT OF THIS SCALE ESSENTIALLY PROVES UP THE COMMITMENT OF THIS BOARD TO FAIR HOUSING IN A WAY THAT WILL ALLOW YOU TO CONSIDER ANY OTHER PROJECT THAT DOESN'T HAVE AN AFFORDABLE HOUSING COMPONENT WITHOUT ANY FEAR THAT ANYBODY'S GONNA COME PAPERS PARTIALLY LATER.
MORE QUESTIONS? MORE QUESTION.
YOU MIGHT HAVE LOST SOME, I THINK, I THINK I'M
IS THAT FACTORING IN THE, THE $4 MILLION DEVELOPER CONCESSION IS, THERE'S SOMETHING IN THE ECONOMIC STACK, RIGHT? THAT'S 4 MILLION DEVELOPER.
BUT THE DEVELOPER FEE IS A FUNCTION OF THE CONSTRUCTION COST.
SO WE'RE AUDITING THE ACTUAL CONSTRUCTION COSTS.
AND GENERALLY, OUR UNDERWRITER DID SAY THAT THEIR DEVELOPER FEE IS BUDGETED AND IS IS ON THE LOWER SIDE FOR COMPARABLE PROJECTS TOO.
SO WE'RE UNDERWRITING IS, WE'RE UNDERWRITING TO T D H G A STANDARDS AND WE'RE UNDERWRITING TO THE TIP BOARD STANDARDS.
I COULD DO TWO TOTALLY DIFFERENT SETS OF NUMBERS BASED ON DIFFERENT GUIDELINES FROM EACH.
LIKE WE'RE ONLY ALLOWED 6%, 2%, 6% ON OUR CONSTRUCTION CONTRACT.
THAT'S THE LIMITATIONS THAT DOESN'T EXIST IN THOSE END.
SO IT'S A VERY DIFFERENT WAY OF ALLOCATING THINGS AND, AND TRUMP CAN MEET BOTH KIND OF UNDERWRITING STANDARDS.
MAYBE OUR SOFT COSTS GET HIGHER, BUT THAT'S PROBABLY 'CAUSE THEY'RE ALLOCATED A LITTLE DIFFERENTLY BASED ON E D H C A STANDARDS THAN THEY WOULD CONVENTIONAL.
UM, QUESTIONS, UM, REGARDING THAT ADEQUATE, I'M PRETTY SURE 'CAUSE IT LUCKY MORE THAN THE IT WAS VERY OVER.
UM, ARE ANY OF THE DEPARTMENTS ACROSS, UH, RIVERFRONT, ANY OF THOSE? UH, OR THEY ACROSS RIVERFRONT,
SO THIS IS THE LARGEST T D H D A PRODUCT THAT WAS TURNED OUT THIS YEAR.
WE'RE ALWAYS ON THE LARGEST SIDE, SO WE HAVE THE CAPACITY
[00:35:01]
TO DO THOSE KINDS OF THINGS.UM, AND I'M NOT FAMILIAR WITH ALL THOSE.
I JUST, I KNOW THERE'S SOME OF THIS, BUT THERE'S SOME THINGS THAT YOU DO, SO SOME EVIDENCE TO CORRECT.
AND WE, WE PARTICIPATE IN ALL THOSE PROGRAMS. WE HAVE CERTAIN, UM, MENU OF ITEMS THAT WE'RE ALLOWED TO KIND OF PICK FROM, AND THAT'S ACTUALLY IN OUR LAND USE RESTRICTION AGREEMENT.
WE DO IT, UM, AND WE DO IT WELL.
UM, IS THERE NO PUBLIC TRANSIT NEARBY THE DART? IT IS DARK LINE? NO.
THE DART RAIL VICTORY, DART RAIL VICTORY ABOUT, THAT'S SIX TENTHS OF THE MODEL.
THERE IS A DARK PROJECT THAT IS NOT IMMINENT, BUT IT DOES EXIST IN THEIR LONG RANGE PLAN TO BUILD A TUNNEL FROM THE DESIGN DISTRICT TO VICTORY STATION.
I DON'T, I CAN'T GIVE YOU A TIMEFRAME FOR THAT, BUT, UM, IF IT EXISTS, WE, ACCORDING TO PEOPLE I'VE TALKED TO, THE PRICE OF TUNNELING HAS COME DOWN SO MUCH THAT IT MAY ACTUALLY BE PRETTY FEASIBLE SOON.
AND THEN, UM, I'M ASSUMING THAT CHILDREN, WE HAVE KIDS.
SO WHAT, WHAT DO YOU, HOW DO YOU PROVIDE THAT KIND OF SECURITY? DO YOU DISPENSE IT OR WHAT DO YOU DO? OH YEAH, IT'S ABSOLUTELY GONNA BE FENCED, BUT WE'RE ALSO GONNA REALLY ENCOURAGE PEOPLE TO USE, SO STEM WILL BE THE MORE THAT RIGHT SEVEN WILL BE LIKE THE, THE DRIVE IN CIRCULATION, BUT THE, THE WALKING CIRCULATION WILL DEATH SLOGAN.
AND THAT WAS PART OF THE URBAN
UM, CAN YOU EXPLAIN THE HIGH OPPORTUNITY AREA, AND I WAS LOOKING AT THAT GRAY AREA VERSUS THE OTHER, THE GRAY AREA LOOKED LIKE IT WAS UP TOWN AND ALL THAT.
DOES THAT MEAN THAT THAT'S GRAPHICALLY A DIFFERENT PERIOD? SO THIS WAS ABOUT ONE, I WANNA SAY IT WAS ONE POINT OFF ON THE POVERTY.
UM, IT WAS I THINK 21% POVERTY VERSUS 20.
SO I MEAN, ANYBODY WHO THE DESIGNERS RIGHT KNOW AREA BASED ON RENTS THAT ARE BEING CHARGED WITH THE MARKET RATE UNITS.
UM, BUT, YOU KNOW, I WOULD PROBABLY LOOK BACK AT THE CENSUS DATA THAT'S GOING TO BE RELEASED THIS YEAR.
AND I'M, I'M GONNA
UM, BUT WHEN WE APPLIED, THERE ARE TWO DIFFERENT WAYS TO SCORE IN T D H C A, IT'S HIGH VIRGINIA, WHICH IS 20% OR LOWER POVERTY, AND THEN THERE'S CONSERVATIVE REVITALIZATION PLAN AND ACTUALLY TIPS AND TURNS QUALIFIES AS A CONSERVATIVE REVITALIZATION PLAN.
SO WE QUALIFIED UNDER THAT CONSERVATIVE REVITALIZATION PLAN FOR T D H C A SCORING.
BUT WE DID PASS UP THEIR HOUSING REVIEW AND THINGS LIKE THAT AS WELL.
UM, AND THEN LET'S SEE, UH, SUE, YOU TALKED ABOUT THE STATUS
UM, ANOTHER QUESTION I HAD, UH, I THINK, I THINK MY ONLY LAST QUESTION, AND THIS IS, YOU KNOW, MORE OF A GLOBAL THING, IS WE ONLY HAVE SO MUCH LEFT AND WE GOT THE SEED INFRASTRUCTURE PROBLEM BECAUSE THIS, THE DISTRICT IS BASICALLY FALLING APART INFRASTRUCTURE WISE TO DO THESE NEW PROJECTS.
SO DO WE HAVE ENOUGH TO DO THOSE QUICK ENOUGH BEFORE THE END? AND THAT'S EXTENDED GREAT.
BUT TO ME THAT IS WHAT OUR BOARD NEEDS TO THINK ABOUT.
AND AS LONG AS THEY THINK THAT, YEAH, YOU KNOW, THIS IS A BETTER USE THAN BUILDING THE INFRASTRUCTURE, THEN LET'S SAY, YOU KNOW, I DON'T KNOW ELSE I CAN PUT, I MEAN THAT'S, IT'S, IT'S REALLY, IT'S A TRADE OFF AND, UH, ARE WE GONNA HAMSTRINGING SOME OF THE, THE OTHER DEVELOPMENTS THAT WE WANT TO DO THAT COULD MAYBE PROVIDE MORE ECONOMIC DEVELOPMENT OR MAYBE PROVIDE EVEN MORE HOUSING OF SOME SORT, YOU KNOW, UM, I DON'T KNOW.
AND THEN THAT'S NOTHING AGAINST A PROJECT PER SE, IT IS JUST A SIMPLE FACT OF TRADE OFFS.
AND SO I THINK THAT, UM, DID YOU SAY WE LOST OUR, OUR VOTE? YEAH, WE DID.
SO WE COULD FINISH THE DISCUSSION AND THEN MY SUGGESTION WILL BE THAT WE HAVE A REGULAR MEETING ALREADY SCHEDULED SEPTEMBER 11TH.
I, AND I THINK THAT'LL GIVE EVERYBODY TIME TO SUGGEST IT.
AND SO WE'VE GOT A LOT OF INFORMATION TODAY.
UM, I THINK THAT IT'S REALLY GOOD THAT WE CAN DO THAT.
UM, AND, UM, ONE THING I'LL SAY YOUR POINT ABOUT INFRASTRUCTURE AND SOME OTHER TIP DISTRICTS, THAT MAY BE THE PROBLEM HERE.
SOMETIMES WE HAVE THE CASH, BUT WE HAVE TO FIGURE OUT WHO'S GONNA IMPLEMENT IT.
SO IF IT'S NOT TIED TO A DEVELOPER, DOES THE CITY HAVE THE CAPACITY TO TAKE ON A PROJECT? SO THAT'S WHAT WE'RE RUNNING INTO IN SOME CASES WHERE WE HAVE TIP CASH, BUT NOBODY CAN REALLY IMPLEMENT STUFF.
BUT I, I WOULD THINK THAT WE COULD LEVERAGE THIS
[00:40:01]
TO DO A LOT AND, BUT THEN AGAIN, YOU KNOW, UNDERSTAND, UNDERSTAND THE TRADE OFFS.SO, UM, NICHOLAS, ARE YOU, ARE YOU, ARE YOU, UH, YOU GOT ANYTHING THAT YOU WANNA THROW IN HERE OR ANY QUESTIONS? YOU'RE ON MUTE.
I JUST WANNA THINK ABOUT ALL THIS ONE, ONE MORE THING.
SAY AGAIN? UH, JUST, I'M JUST PROCESSING THE INFORMATION.
IT'LL BE NICE TO HAVE SOME TIME TO THINK ON THIS.
UM, SO I THINK AT THIS POINT IF THERE'S, UH, SOME COMMENTS FROM SOME OF THE PEOPLE THAT ARE HERE.
I THINK, I DON'T BELIEVE MY, AND THEN I THINK WE HAVE, AND CHARLOTTE HERE, I DON'T KNOW IF CHARLOTTE WANTS TO SAY ANYTHING.
UM, BUT UM, SINCE ED'S HERE, CHARLOTTE, WHY DON'T YOU GO AHEAD AND THAT WAY IF YOU NEED TO RUN IN.
UM, SO MY NAME IS CHARLOTTE CARR AND I AM WITH H N CAPITAL PARTNERS.
WE ARE ONE OF THE BIGGEST LANDOWNERS IN THE DALLAS DESIGN DISTRICT, AND WE ACTUALLY OWN THE DESIGN CENTER, WHICH IS RIGHT NEXT TO THE OLD KAVANA HOTEL SITE.
UM, I THINK WE'RE A BIT CAUGHT OFF GUARD THAT WE WEREN'T NOTIFIED ABOUT THIS UNTIL FRIDAY.
DIDN'T REALLY HAVE TIME TO KIND OF WRAP OUR HEADS AROUND WHAT THIS PROJECT IS ABOUT, WHO THE DEVELOPER IS, WHAT ARE YOUR QUALIFICATIONS FOR THIS PROJECT.
BUT YOU KNOW, WE'RE ON THE GROUND THERE DAY IN AND DAY OUT.
WE SEE THE INFRASTRUCTURE PROBLEMS, WE KIND OF SEE WHAT'S GOING ON ON THE GROUND THERE.
AND YOU KNOW, UNFORTUNATELY WE DON'T THINK THAT YOU GUYS NEED ALL $41 MILLION TO DO YOUR PROJECTS.
WE KNOW THAT THERE'S TAX INCENTIVES.
WE KNOW THAT YOU CAN GET OTHER FUNDING THROUGH HUD.
UM, WE'RE OBVIOUSLY PROPONENTS OF LOW INCOME HOUSING AND WE DO THINK THAT YOU SHOULD GET A PORTION OF THE TIFF FUNDING, BUT 41 MILLION JUST FEELS LIKE A LOT WHEN THERE'S A TON OF WORK THAT CAN BE DONE IN THE DESIGN DISTRICT.
AND, YOU KNOW, THE ORIGINAL USE OF TIFF FUNDS, YOU KNOW, IS REALLY TO HELP WITH SEWER PROBLEMS, YOU KNOW, TO CREATE SIDEWALKS.
AND AS YOU GUYS KNOW, WE HAVE THE HIGHLINE CONNECTOR THAT WASN'T EVEN FULLY FUNDED.
AND THERE ARE A LOT OF THINGS THAT NEED TO BE DONE WITH THAT PROJECT AND THINGS THAT, YOU KNOW, PEOPLE ALL OVER DALLAS ARE GONNA REAP THE BENEFITS OF.
AND, YOU KNOW, I'M DISAPPOINTED THAT I HADN'T EVEN SEEN THIS PRESENTATION UNTIL NOW.
UM, NO ONE FROM THIS DEVELOPMENT COMPANY HAS REACHED OUT TO US TO KIND OF TELL US ABOUT THIS PROJECT TO KIND OF INFORM US OF THE BENEFITS OF IT.
UM, IT JUST FEELS LIKE THIS IS BEING JAMMED THROUGH REALLY QUICKLY.
UM, AND I KIND OF URGE THE BOARD TO REALLY THINK ABOUT IF WE WANNA DEDICATE $41 MILLION SOLELY TO THIS PROJECT, BECAUSE THERE'S A LOT MORE THAT CAN BE DONE WITH THAT MONEY
MR.
LIKE I HAD AN IN-PERSON MEETING WITH
I MET, WENT, GAVE A FULL PRESENTATION ON THE PROJECT, BROUGHT OFF THE ARCHITECTURALS TO AGEN CAPITAL'S OFFICE.
SO TALK ABOUT YOUR TIMELINE TOO.
YEAH, I MEAN THAT, I THINK THAT WAS OVER A MONTH AGO.
I WENT TO THE CAPITAL OFFICES AND BROUGHT MY ENTIRE ARCHITECTURAL PACKAGE IN.
HAD A WHOLE MEETING WITH VIVIN TO DISCUSS THIS AND DISCUSS ALL THE FINANCIALS BASED ON THIS PROJECT.
I DON'T KNOW THAT WE'RE KIND ABOUT FEEDBACK.
ARE YOU GIVING? WELL, I SUPPORT AT THAT MEETING, SO YEAH, I MEAN, I CAN SPEAK ON BEHALF OF VIPIN.
I DON'T THINK THAT HE PROBABLY UNDERSTOOD THE FULL SCOPE THAT THIS WAS GONNA BE $41 MILLION.
AND I KNOW FOR A FACT THAT HE DIDN'T REALIZE THAT.
SO EVEN IF THAT DID COME ACROSS IN YOUR MEETING, HE DIDN'T LEAVE UNDERSTANDING THAT.
AND I KNOW THAT HE'S NOT A PROPONENT OF THAT HE BELIEVES IN WHAT YOU'RE DOING, BUT HE THINKS THAT YOU GUYS NEED TO EITHER GO RAISE CAPITAL AND WE NEED TO LOWER THE AMOUNT OF FUNDS ALLOCATED TOWARDS THIS PROJECT.
I MEAN, JUST SAYING IN A PUBLIC MEETING THAT THE DEVELOPER NEVER REACHED OUT TO YOU IS A LITTLE DISINGENUOUS, EVEN IF YOU DIDN'T UNDERSTAND THE PRESENTATION.
I, SO SANDRA, UH, ANYTHING ELSE CHARLOTTE? NO, THAT'S IT FROM OUR END.
IF WE CAN QUICKLY HAVE DEVELOPER COMMENT ON THE, THE PERCEIVED URGENCY AT THE TIMELINE.
THE URGENCY IS ACTUALLY REAL AND IT'S IMPOSED BY THE STATES RULES.
SO WE, WE DON'T HAVE THE FLEXIBILITY TO GO RAISE CAPITAL.
WE DON'T HAVE THE FLEXIBILITY TO BRING IN EQUITY.
I I JUST TOLD YOU WHAT WE MAKE ON THESE DEALS.
THAT DOESN'T CREATE AN I R RETURN FOR OUTSIDE EQUITY.
THIS IS, UH, AN EXTREMELY UNIQUE PROJECT.
THERE'S NO WAY TO REHAB THE CABANA HOTEL FOR $5 MILLION, FOR $10 MILLION OR EVEN THE $15 MILLION THAT WAS ALREADY GIVEN BY THE TIFF.
IT'S JUST THAT WE'RE GONNA WORK IN THIS ENVIRONMENT WITH 8% CONSTRUCTION LOANS AND WITH CONSTRUCTION RATES THE WAY THAT THEY'RE, WE'RE LEVERAGING EVERYTHING WE POSSIBLY CAN, WHICH INCLUDES DEFERRING MOST OF OUR DEVELOPMENT FEE, HISTORIC TAX CREDITS, LOW INCOME HOUSING TAX CREDITS.
[00:45:01]
COMPLICATED CAPITAL STACK.THERE IS NO MORE MONEY AVAILABLE FOR HU FOR US.
UM, WE, THIS IS ONE OF THE MORE COMPLEX CAPITAL TAX WE'RE EVER GONNA SEE TO CREATE AFFORDABLE HOUSING AND 30% A M I AND WHEN I'M TALKING ABOUT 30% A M I, THOSE ARE UNITS THAT RENT FOR UNDER $600 A MONTH.
AND THAT'S FOR PEOPLE THAT MIGHT BE ON SOCIAL SECURITY DISABILITY THAT HAVE PROBLEMS. AND RIGHT NOW THE CITY OF DALLAS IS NOT SUPPORTING THAT KIND OF HOUSING BECAUSE THERE'S NO MONEY TO SUPPORT IT.
SO LEVERAGING LIVE TECH LEVERAGING STORE TAX CREDITS AND LEVERAGING THE TIP IS THE WAY WE CAN MAKE THOSE UNITS HAPPEN THAT DOESN'T EVEN COVER THE EXPENSES OF THE UNIT.
SO THOSE ARE UNITS THAT ACTUALLY LOSE MONEY EVERY SINGLE MONTH.
SO I, I MEAN, I'M SURE THAT EVERYBODY THINKS THAT YOU CAN MAKE UP ON THE, ON THE MARKET, RIGHT? SO THAT'S WHAT MAKE UP YEAH.
THEY WILL BE REALLY SMALLER UNITS THEN YOU VENDOR MARKET RATES PROBABLY LARGER.
YEAH, THEY, IT HAS TO BE SPREAD THROUGHOUT THE ENTIRE UNIT MIX.
IT HAS TO BE SPREAD ON EVERY FLOOR.
THAT'S A FAIR HOUSING VIOLATION TO JUST SEGREGATE THEM TO CERTAIN UNITS AND CERTAIN SIZES AND ALL THOSE THINGS.
SO, AND THE FINISHERS IN THE DEVELOPMENT AGREEMENT THAT THE FINISHES HAVE TO BE IDENTICAL, THE MARKET RATE AND THE AFFORDABLE, SO THESE ARE WILL BE THE SAME.
THEY WON'T BE THE SAME FINISH OUT.
SO THESE ARE EXTREMELY HIGH QUALITY 4 MILLION UNITS, WHICH DOESN'T HAPPEN IN THE STATE DALLAS EITHER.
I'M PROBABLY ONE OF THE VERY FEW DEVELOPERS THAT'S ACTUALLY CREATING THESE 30% OF FOUR MILLIONS.
AND THIS IS THE ONLY 9% HOUSING TAX CREDIT APPLICATION THAT WAS AWARDED IN DALLAS THIS YEAR.
AND YOU REALLY, YOU REALLY NEED TWO AND THREE BEDROOM UNITS IN THE 60%.
SO BECAUSE THAT'S WHERE YOU GET, UH, FAMILIES THAT ARE REALLY EITHER TEETERING OR REALLY GETTING BACK ON THEIR FEET.
THERE'S A, THERE'S A FACILITY BY MY HOUSE CALLED, UH, INTERFAITH HOUSING THAT TAKES FAMILIES THAT ARE HOUSING INSECURE, PUTS THEM IN THE FACILITY.
UM, THIS IS, UH, THIS IS 600 FEET FROM MY HOUSE, UM, PUTS THEM IN THE FACILITY, UM, GET SOME JOB TRAINING AND CHILDCARE SO THEY CAN GET JOBS SO THAT THEN THEY CAN GET APPLY FOR AND GET, UH, VOUCHERS THROUGH THE COUNTY OR THROUGH D H A.
AND THEN THEY WOULD GO TO REALLY UNITS THAT WE'RE TRYING TO CONSTRUCT AND THEY NEED THE TWO, THREE BEDROOM BECAUSE THEIR KIDS INVOLVED.
WHAT, WHAT WE'RE GOING BACK TO IS THIS URGENCY.
WE, WE HAVE A VERY STRICT TIMELINE THAT'S IMPOSED BY BOTH T D H C A AND THE I R S TO GET THESE UNITS ON THE GROUND TO GET THIS FUNDING COMMITTED.
T D H C HAS GUIDELINES ABOUT WHEN THAT NEEDS TO HAPPEN, AND IT NEEDS TO HAPPEN BASICALLY IN SEPTEMBER.
SO THAT'S WHAT WE'RE PUSHING FOR.
UM, THERE'S NO WAY TO MAKE THIS PROCESS.
IT'S NOT LIKE WE'RE GONNA HAVE
UM, AND DID YOU HAVE ANYTHING YOU WANTED TO ADD? WELL, I, I'M HERE BECAUSE I GUESS I WAS THE PLAN COMMISSIONER AND THE COUNCIL PERSON, THE, THEY HELP CREATE THE DISTRICT TO START WITH THE PD 6 21.
I WAS ON THE COUNCIL AND THE TIP WAS APPROVED AND THE P WAS APPROVED.
SO IF THERE'S SOMEBODY THAT HAS SOME HISTORY OF THE DISTRICT, THAT'S ME.
ONE THING I DID NOT KNOW, AND I, ONCE THE, I LEFT THE COUNCIL AND I WAS ON THE COUNCIL PHILLIP, WHEN, UH, THE, UH, PROJECT YOU MENTIONED, UM, THE ONE THAT, UH, WHAT WAS IT, IT FOR IT, UH,
YEAH, THAT WAS A LOWER BILL DRIVEN THING BECAUSE SHE WANTED TO TAKE ALL THE TIP ON, PUT 'EM, SHE GOT, SHE DID NOT LIKE DEVELOPERS COMING IN AND, AND ASKING FOR A HANDOUT AS SHE CALLED IT, THAT I'M GONNA TAKE ALL THE $10.
I REMEMBER THE MEETING WE FLEW TO WHEREVER IT WAS, AND VINCE ZEKI CREATED THE, THE DEAL.
AND I DIDN'T REALIZE IT CREATED SUCH A, A PROBLEM, BUT I LEFT IN I SEVEN.
I DON'T THINK ANYBODY DID IT WELL, BUT I, I REMEMBER THOSE MEETINGS VERY WELL, UH, BECAUSE SHE WANTED TO GET ALL THE MONEY TIED UP AT ONE TIME.
AND I, I DIDN'T REALIZE THAT WAS THE LITIGATION BECAUSE AFTER YOU LEAVE THE COUNCIL AND SUE AFTER I LEFT, MAYBE YOU, PHILLIP, YOU CAN TELL ME, I KNOW WHAT WE CREATED THE TIP FOR, BUT IT SOUNDS LIKE THE DIRECTION AND ALL OF THAT CHANGED AFTER OH FIVE, IN OH FIVE WAS THE FIRST TIME THAT THE STATUTE ALLOWED TO FUNDING TO BE DONE IN THE FORM OF GRANTS LOANS.
BUT INITIALLY WE DIDN'T DO A WHOLE LOT OF THAT.
BUT AS JUST FINANCIAL MARKETS HAVE CHANGED, I DON'T SAY IN THE LAST, YOU KNOW, FIVE ATTEND YEARS, PARTICULARLY MORE AND MORE OF OUR TI PROJECTS HAVE A BRAND COMPONENT.
IN FACT, WHEN WE TOOK THE, UM, IT WAS ORIGINALLY A DESIGNED DISTRICT AND NOW IT'S BEEN SOLD, BUT IT WAS THE, THE TRAMMELL PROB A RESIDENTIAL PROJECT THERE AT TURTLE CREEK AND, UM, LEVY, THEY CAME IN AND HAD LIKE A BRAND COMPONENT OF SOMETHING LIKE 7 MILLION AT THAT TIME.
[00:50:01]
OH MY GOSH.BUT IT WAS, YOU KNOW, THE DENSITY
AND SO EVER SINCE THEN, PARTICULARLY WITH MAJOR, UM, CONVERSIONS, THERE'S JUST A LARGE GRANT COMPONENT AND IT'S ALLOWED BY STATE LAWS.
WE'RE THE SAME SOURCE OF FUNDS.
SO IT'S STILL BASED ON REVENUE BEING GENERATED, BUT IT'S JUST AN ABILITY TO DO GAPS AND EVERYTHING IN ADDITION TO PUBLIC INFRASTRUCTURE.
WE ALWAYS DO LOOK AT PUBLIC INFRASTRUCTURE FIRST.
LIKE IF THERE'S INFRASTRUCTURE NEEDS FOR THE PROJECT, WE'RE GONNA WANNA FUND THAT FIRST.
AND IF THERE'S STILL A FINANCIAL GAP AND IT'S FEASIBLE FOR US TO HELP BUILD A GAP, WE'LL DO A GRANT COMPONENT TO THE TOO.
WELL, WHEN I, WHEN, WHEN THAT CAME THROUGH TO THE COUNCIL IN
BUT, UH, I DON'T REMEMBER US EVER TALKING ABOUT RESIDENTIAL IN THE DISTRICT.
I DON'T REMEMBER THAT BEING SOMETHING THAT WE'VE DISCUSSED.
UM, THE OTHER THING I'LL SAY WE'VE DONE IN OTHER DISTRICTS, AND NOW THAT THIS ONE IS POTENTIALLY A FEW YEARS FROM WINDING DOWN, IS TO START DEVELOPING A FINAL STRATEGY FOR LIKE, WHAT ARE THE PRIORITIES FOR USING THE REST OF THE FUNDING.
AND SO THAT'S SORT OF A, A PLANNING EXERCISE THAT WE MIGHT WANNA THINK ABOUT DOING.
WELL THE REASON I ASK THOSE QUESTIONS IS THE, THE GOAL WAS TO, TO GET THE INFRASTRUCTURE REPLACED IN THE DESIGN DISTRICT AS THESE, AND THERE'S VERY, THERE'S SEVERAL, AS WE KNEW WHEN WE CREATED THE PD, THERE WERE SEVERAL LARGE TRACKS OF LAND THAT HAVE POTENTIAL FOR VERY INTENSE DEVELOPMENT.
UH, HARWOOD OWNS ONE OF THOSE.
UH, THE, THE LADY, UH, THAT IT USED TO BE, UH, THE VIRGIN HOTEL IN DUNHILL, THE GROUP THAT BOUGHT THAT IS, HAS A GREAT DEAL OF HOLDINGS THEY BOUGHT FROM CROW.
UH, ED EWING IS ANOTHER LARGE PROPERTY OWNER.
THE MAVERICKS ARE ANOTHER LARGE PROPERTY OWNER.
AND TO DEVELOP ANY OF THOSE TRACKS WITH ANYTHING, YOU'RE GONNA HAVE TO HAVE INFRASTRUCTURE CHANGE.
AND THERE'S A GOOD EXAMPLE OF IS THE, THEY'VE BEEN NEEDING TO REPLACE THE SANITARY SEWER LINE AND THEY'RE HOLDING ALL THE BUILDING PERMITS FOR RESIDENTIAL IN THE, IN ON JEFFERSON BECAUSE IT IS AT CAPACITY.
AND I DON'T KNOW HOW THIS MEETS THAT OTHER THAN THE FACT THAT IT WAS ALREADY HAD BUILT, AND I DON'T KNOW IF IT'S PART OF THE CAPACITY WHEN YOU GO TO PULL A BUILDING PERMIT, THEY'RE ONLY BUILDING PERMITS THAT HAVE RESIDENTIAL COMPONENTS TO 'EM BECAUSE OF THE FIXTURE COUNT, BECAUSE OF HOW MANY TOILETS YOU'RE GONNA FLUSH.
I DON'T KNOW WHAT YOU'RE GONNA RUN UP AGAINST WHEN YOU GO PULL A BUILDING.
WE'VE ALREADY LOOKED INTO WHAT WE NEED TO REPLACE FOR THIS PROJECT, AND I DON'T KNOW THAT BECAUSE THAT'S
I THINK WE'RE, WE'RE ALLOCATED, UH, ABOUT $3 MILLION TO INFRASTRUCTURE OUTSIDE WHEN THE, WHEN IT WAS A PRE-RELEASE FACILITY FOR STER AND THERE WERE 280 SOME ODD TOILETS.
ANYTHING ELSE? UH, IT, IT IS JUST THE, AND WHEN I WAS A COUNTY PERSON, I SUPPORTED A GREAT NUMBER OF GRIDS OF AFFORDABLE UNITS.
THEY WEREN'T THE MIX INCOME, OBVIOUSLY IT, THE PROJECTS THAT GOT SOME DEVELOPERS IN TROUBLE THAT YOU KNOW, BUT UH, WHAT I'M TALKING ABOUT THE ONES DOWN PINNACLE PARK, WE BUILT SEVERAL.
I MEAN, SO I'M VERY SUPPORTIVE OF THAT.
I JUST, THIS LOCATION IS BAFFLING TO ME FOR A RESIDENTIAL COMPOUND OR A RESIDENTIAL COMPLEX.
IT IS SANDWICHED BETWEEN THE INDUSTRIAL PARK AND THE, THE FREEWAY.
AND HOW DO YOU PUT FAMILIES IN THERE WHEN YOU'VE GOT KIDS THAT, I MEAN LITERALLY THAT'S I 35 AND THE ACCESS ROAD.
I DON'T KNOW THAT IF YOU WERE DOING A ZONING AND A LAND USE PLAN AND GOING INTO THE PLAN COMMISSION, THE CLAIM COMMISSION WOULD NOT APPROVE.
I DON'T THINK THIS, THE RESIDENTIAL COMPOUND THAT, BUT THAT'S WHAT YOU THINK YOU COULD BUILD TO MAKE IT SUCCESSFUL.
I GUESS IT'S, IT'S, IT'S, IT'S, IT'S WHERE Y'ALL ARE HEADED WITH THIS, BUT THOSE ARE MY CONCERNS THAT THIS, WE HAVE NOT FINISHED OUT THE INFRASTRUCTURE THAT'S NECESSARY IN THE DESIGN DISTRICT.
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TRACKS OF LAND.IN FACT, I'VE ASKED MIKE SEVERAL TIMES TO GET BEFORE, UH, OMAR AND FOR YOU TO FIGURE OUT CAN WE, AND I, I WISH WE COULD GET THOSE LARGE DEVELOPERS TOGETHER TO FIGURE OUT WHERE THEY'RE GOING AND HOW DO WE EXTEND THIS TIP BECAUSE THEY'VE GOT PROBABLY A BILLION DOLLARS WORTH OF DEVELOPMENT.
I DON'T KNOW IF THEY'RE TALKING ABOUT RESIDENTIAL OR IF THEY'RE GONNA GO ALL OFFICE OR COMMERCIAL AND RETAIL BECAUSE THEY DON'T WANT TO DO THE AFFORDABLE, I HAVE NO EARTH IDEA.
I OWN PROPERTY IN THE DISTRICT.
SINCE I LEFT THE COUNCIL, THIS HAS BEEN MY FOCUS.
I'M ONLY HERE BECAUSE I CARE ABOUT THE DESIGN.
YEAH, SO BETWEEN NOW AND OUR NEXT MEETING AND WHOEVER HAS THE BEST GEAR TO COUNCIL S AT LEAST HAVE A CHAT ABOUT THIS EXTENSION EXTENDING IT.
I MEAN I THINK THAT THAT IF WE HAD SOME KIND OF INDICATION THAT AT LEAST A POSSIBILITY, I THINK IT WOULD HELP US WITH, YOU MIGHT WANNA ADVISE.
SO FROM AN ETHICS PERSPECTIVE, WHAT CAN OR CAN TALK ABOUT.
FIRST OF ALL, THE CITY COUNCIL APPROVED A NEW ECONOMIC DEVELOPMENT INCENTIVES POLICY IN JANUARY OF THIS YEAR.
IN THAT POLICY, IT REVISED THE TIFF PROGRAM POLICY ABOUT EXTENSIONS, CREATIONS, OR EXPANSIONS OF TIF DISTRICTS.
UM, SO THERE IS A NEW POLICY THAT GOVERNS THE CONDITIONS UNDER WHICH THE CITY COUNCIL WOULD CONSIDER AN EXTENSION OF A TERM OF A TIP DISTRICT.
SO COUNCIL MEMBER NARVA IS CAN, WHILE HE CAN VOICE HIS PREFERENCE FOR AN EXTENSION, THE REALITY IS IT'S GOVERNED BY A POLICY OR SET OF POLICIES AND THAT REQUIRES THE FULL COUNSEL TO APPROVE THAT.
UM, ONE OF THE SPECIFIC CRITERIA CRITERION THAT GOVERN THE POTENTIAL FOR AN EXTENSION IS THE REQUIREMENT THAT AN EXISTING TIP DISTRICT, UM, BEING MATCHED UP WITH A BELOW MARKET AREA OF THE CITY, LIKE WE, WE CALL IT A BARBELL.
SO STRONGER MARKET AREAS ARE MATCHED UP WITH MAR WEAKER MARKET AREAS AND THERE'S A, A ROBINHOOD EFFECT OR THE STRONGER MARKET AREA SUBSIDIZES THE WEAKER MARKET AREA.
IF A TIF TERM EXTENSION WERE TO BE CONSIDERED FOR THE DESIGN DISTRICT, IT WOULD HAVE TO HAVE SOME COMPONENT OF A BARBELL, UH, CONCEPT WHERE IT DOESN'T GET TO KEEP EVERYTHING IT CREATES, IT HAS TO SUBSIDIZE A WEAKER MARKET AREA.
SO JUST KEEP IN MIND THAT YES, THERE MAY BE A PREFERENCE TO EXTEND THE DISTRICT, BUT IT'S NOT A GUARANTEE.
THERE ARE POLICY HURDLES TO OVERCOME AND THINGS TO BE FIGURED OUT.
THERE'RE ALWAYS, THERE ARE ALWAYS POLICY HURDLES, THERE'S ALWAYS POLITICAL WILL, THERE'S ALWAYS A LOT OF THINGS THAT GO INTO THESE SITUATIONS.
I'M JUST SAYING IF, BECAUSE OBVIOUSLY WE'RE GONNA HAVE TO REALLY MOVE FAST TO, TO USE UP THAT OTHER BEFORE THE END AND USE IT FOR INFRASTRUCTURE.
AND, AND I WOULD ALSO ADD THAT WHEN TIP DISTRICTS EXPIRE NOW UNDER THE CURRENT NEW POLICY, UM, THERE'S SOMETHING NEW CALLED THE INFRASTRUCTURE INVESTMENT FUND.
WHAT THAT IS IS A FUND THAT CAN BE USED TO PROVIDE INFRASTRUCTURE IN INFRASTRUCTURE DESERTS OR PARTS OF THE CITY THAT HAVE NO INFRASTRUCTURE.
UH, AND THEY ARE THE, THE SOURCE OF THE FUNDING FOR THAT FUND IS THE AMOUNT OF FUNDING THE CITY CONTRIBUTES TO A TIP DISTRICT IN ITS FINAL YEAR.
SO IN THIS PARTICULAR DISTRICT, THE CITY WE ESTIMATE WOULD BE CONTRIBUTING $8 MILLION TO THE TIP DISTRICT IN ITS LAST YEAR, 2027.
SO IF THE TIP DISTRICT WERE NOT TO BE EXTENDED, THEN IN 2029, $8 MILLION WOULD BE USED TO START FUNDING THE INFRASTRUCTURE FUND THAT IS CAN BE DEPLOYED CITYWIDE FOR INFRASTRUCTURE DESERTS AND AREAS, VERY POOR AREAS THAT LACK INFRASTRUCTURE ALTOGETHER.
UM, SO YOU SAY THAT TOGETHER, YOU MEAN THEY DON'T HAVE ANY SEWER? CORRECT.
THERE ARE LARGE SWATHS OF SOUTHERN, SOUTHERN PART OF THIS CITY THAT HAVE NO INFRASTRUCTURE AREAS AROUND U N T DALLAS.
BUT THERE'S NO DEVELOPMENT THERE RIGHT NOW EITHER.
WELL, THERE IT IS A CHICKEN AND EGG PROBLEM.
THERE'S NO DEVELOPMENT BECAUSE IT'S TOO COSTLY TO PROVIDE INFRASTRUCTURE TO MAKE THE LAND DEVELOPABLE.
SO THIS NEW FUND IS A NEW CONCEPT, HASN'T ACTUALLY BEEN FUNDED YET.
I THINK THIS YEAR IS, THE NEXT YEAR WILL BE CEDAR THE FIRST YEAR THAT, UM, CEDARS AND THE OLDER PART OF CITY CENTER THAT HAVE SUNSET WILL BEGIN TO START FUNDING OR PUTTING MONEY INTO THAT FUND AND IT'LL BE A POOL OF FUNDS FOR A 10 YEAR PERIOD.
UM, CITY COUNCIL DECIDES WHERE THOSE FUNDS GO, BUT THE IDEA IS THAT THEY SHOULD GO IN TARGET AREAS.
SO YOU'RE SAYING WE WE'LL PROBABLY LOSE OUR,
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WE DON'T EXTEND IT.WE LOSE OUR LAST YEAR OF FUNDING THE YEAR AFTER IT EXPIRES.
THE AMOUNT THAT WAS CONTRIBUTED IN THE FINAL YEAR WOULD BE, BUT ESSENTIALLY WE LOSE THAT LAST YEAR.
YOU STILL FUND EVERYTHING THROUGH THE EXPIRATION, BUT ONCE IT EXPIRES THE NEXT 10 YEARS, WHAT THE EQUIVALENT OF GOES TO THIS FUND INSTEAD OF THE GENERAL CODE? YEAH.
BUT I SORT THAT'S, THIS WAS, I THOUGHT THIS AREA IN THE DESIGN DISTRICT IS IN THE GRAY AREA, WHICH IS THE AREA THAT ALLOWS FOR AFFORDABLE HOUSING OR THE DEEDED OF IT.
UH, WE USED TO CALL IT UH, THE CENSUS TRACK, THE AFFORD, WHERE YOU COULD BUILD AFFORDABLE UNITS, THE CENSUS TRACK, YOU CALL IT.
SO TARGET AREAS ARE WHERE THE INFRASTRUCTURE FUNDS CAN BE SPENT.
AND ASKING HERE, I MEAN THE TARGET AREA.
BUT, BUT IT, IT, IT'S BASED ON THE CENSUS, SO AREAS THAT HAVE MORE THAN 20% POWER BE RATE.
SO YES, CURRENTLY BASED ON THE 2020 CENSUS.
SO, UH, PHILOSOPHICALLY YES, THOSE FUNDS COULD BE DEPLOYED IN THIS AREA, ASSUMING IT'S STILL A TARGET AREA AFTER THE NEXT CENSUS.
THAT'S WHY WE'RE THE TECHNOCRATS.
AND YOU GUYS, I THINK THEY'VE CERTAINLY CHANGED.
CERTAINLY CHANGED THE TIPS IN THE LAST ONE.
GOT THE INFORMATION WE NEED FROM YOU GUYS.
UM, UH, I THINK THE REST OF US ON THE BOARD AND DIGESTIVE AND, AND, UM, COME BACK ON 11TH, SEPTEMBER 11TH, 2:00 PM 11TH WE HAVE, IS THAT OUR, YES, IT'S OUR NORMAL
I'LL DEFINITELY GO AHEAD AND SEND THE CALENDAR IN.
YEAH, IT WAS ON OUR ADOPT DATES, BUT USUALLY UNLESS I HAVE THE MEETING IS KIND OF FOR REAL.
I DON'T OFTEN PUT IT ON THE CALENDAR, BUT I'LL GO AHEAD AND SEND, THAT WOULD BE 2:00 PM YEAH, I'LL GO AHEAD AND SEND THE CALENDAR INVITE FOR ADDRESS SO EVERYBODY HAS ON THE CALENDAR.
UH, ANYTHING ELSE EVERYBODY? THANK Y'ALL FOR, UH, ATTENDING THOSE OF YOU, UH, THERE ON THE, THE VIRTUAL.
UH, DO I HAVE A, A MEETING TO ADJOURN? MOTION ADJOURN.
WE'RE NOT, YEAH, YOU, THANK YOU EVERYBODY.