[Economic Development on November 6, 2023.]
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WE'RE GOING TO CALL THIS ECONOMIC DEVELOPMENT COMMITTEE TO ORDER.AND THE FIRST ITEM WE DO NOT HAVE THE MINUTES.
WE'RE GOING TO DELAY THAT BECAUSE WE HAVE SOME ISSUES WITH THAT.
SO LET'S GO THROUGH THE FIRST BRIEFING ITEM DEVELOPMENT SERVICE MONTHLY TECHNOLOGY AND METRICS.
THANK YOU SIR. IT'S GOING TO BE OUR DIRECTOR ANDREW ESPINOSA.
COMMITTEE CHAIR AND COMMITTEE MEMBERS.
SO TO GIVE YOU A BRIEF UPDATE, OUR PRESENTATION OVERVIEW WILL COVER THE TECHNOLOGY METRICS, OUR FEE STUDY UPDATES, OUR COMMERCIAL PERMITS AND THE DASHBOARD HIRING, RECRUITMENT AND THEN ALSO NEXT STEPS.
AS YOU KNOW, WE'VE BEEN WORKING ON THE DALLAS NOW PROJECT.
WE'RE NOW IN OUR FIFTH MONTH AND WE'RE MEETING OUR CURRENT MILESTONES.
SO WE'RE VERY HAPPY ABOUT THE WORK THAT WE'RE ACCOMPLISHING.
WE'LL CONTINUE TO PARTNER WITH ITS AND GET THEIR SUPPORT WITH DATA VALIDATION AND CONVERSION.
OUR RESIDENTIAL PERMIT VOLUME INCREASED FOR THE MONTH OF SEPTEMBER.
YOU'LL NOTICE THAT IT JUMPED UP ABOUT 39%.
WE ISSUED 180 NEW SINGLE FAMILY PERMITS.
THE MEDIAN NUMBER OF DAYS TO ISSUE A PERMIT INCREASED FROM 4 TO 6.
YOU'LL SEE THAT ON THE SUBSEQUENT SLIDE.
AND FOR THAT PARTICULAR MONTH, WE ISSUED 56 NEW SINGLE FAMILY PERMITS THE SAME DAY.
100% OF OUR INITIAL REVIEWS ARE BEING PERFORMED ON TIME.
THIS SLIDE SHOWS THE NEW COMMERCIAL PROJECT PERMITTING VOLUME FOR FOR THE MONTH OF SEPTEMBER.
THE DEPARTMENT RECEIVED 22 COMPLEX COMMERCIAL PROJECTS.
WE ALSO RECEIVED 31 MINOR COMMERCIAL Q TEAM PROJECTS, WHICH WERE ISSUED THE SAME DAY.
SO OUR COMMERCIAL PERMITS ARE COMING IN AND OUT THE SAME DAY.
THIS SLIDE DEMONSTRATES THE VOLUME THAT WE HAVE FOR REMODEL PROJECTS, WITH 214, A SLIGHT DECREASE FROM THE PREVIOUS MONTH, BUT WE'RE HOLDING STEADY IN THAT PARTICULAR AREA AS WELL.
NEXT SLIDE. COMMERCIAL DASHBOARD.
AS YOU KNOW, LAST YEAR WE ROLLED OUT A RESIDENTIAL DASHBOARD, WHICH WAS VERY HELPFUL.
IT WAS ABLE TO HELP US GATHER SOME REAL, MEANINGFUL DATA AND MAKE SOME REALLY EFFECTIVE DECISIONS.
THEY'VE DONE A FANTASTIC JOB OF SOFT LAUNCHING THIS DASHBOARD.
AND WE'RE EXPECTING TO HAVE THAT ROLLED OUT IN JANUARY.
SO HOW DO WE PREVENT THAT FROM HAPPENING IN THE FUTURE? ONE OF THE THINGS THAT WE'RE PROGRESSIVELY MOVING TOWARDS IS ASKING OUR CUSTOMERS TO SUBMIT THEIR PROJECTS 100% ONLINE.
AGAIN, WE FIND THAT WHEN A CUSTOMER SUBMITS A PERMIT APPLICATION WITHOUT HAVING THE APPROPRIATE ZONING, IT TENDS TO KIND OF STAGNATE AND IT SLOWS DOWN THE ENTIRE PROCESS. AND THEN FOLKS BEGIN TO ASK, ANDREW, WHY ARE YOU SO SLOW AT ISSUING A PERMIT? AND SO IN ADDITION TO THAT, WE WANT TO ELIMINATE SOME OF THE REDUNDANCIES, AS COUNCIL MEMBER WEST HAS POINTED TO ON A COUPLE OF OCCASIONS, WE WANT TO UPDATE THAT PROCESS FLOW MAP.
WE WANT TO CREATE AND UPDATE OUR DEVELOPER GUIDE AND SIMPLIFY ANOTHER VERSION CALLED THE USER GUIDE, SO THAT IT'S VERY SIMPLE TO FOLLOW AND UNDERSTAND FOR OUR CUSTOMERS.
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ISSUANCE OF PERMITS.SO HERE ARE A FEW TOTALS FOR THE FISCAL YEAR 22-23.
SO THAT'S NOT A FULL YEAR OF DATA.
AND THEN NEW RESIDENTIAL HOMES AND ADDITIONS AND REMODELS.
OVERALL, THE ESTIMATED ECONOMIC IMPACT IS ABOUT $5.1 BILLION.
NEXT SLIDE. THIS SLIDE DEMONSTRATES THE PERFORMANCE OF DEVELOPMENT SERVICES HAS IMPROVED ON THE PAST FISCAL YEAR. YOU'LL NOTICE THERE ON THE RIGHT THE TURNAROUND TIMES FOR FISCAL YEAR 21-22 TO 22-23.
FOR EXAMPLE, COMMERCIAL PRESCREENED DECREASED BY 95%.
COMMERCIAL INITIAL REVIEW DECREASED BY 12%.
Q TEAM INITIAL REVIEW TIMES BY 43.
RESIDENTIAL PRESCREENED BY 88.
RESIDENTIAL INITIAL REVIEW BY 53.
WASTEWATER REVIEW DECREASED BY 25.
AND THEN THE TRANSPORTATION INITIAL REVIEW ALSO INCREASED BY 25%.
OUR FEE STUDY, AS YOU KNOW, OUR FEES HAVE NOT BEEN ADJUSTED SINCE 2015.
WE PARTNERED WITH A CONSULTANT TO PROVIDE A FEE ASSESSMENT, AND WE HAVE FOUND THAT SOME OF OUR FEES ARE SCATTERED THROUGHOUT DIFFERENT CHAPTERS OF THE DEVELOPMENT CODE AND ALSO THE BUILDING CODES.
SO OUR GOAL IS TO CONSOLIDATE THOSE INTO ONE USER FRIENDLY SPOT.
CURRENTLY, DSD ONLY COLLECTS 55% OF THE COST SERVICES RENDERED.
AND SO BASED UPON THE INITIAL FINDINGS, WE ARE SIGNIFICANTLY LESS THAN THE SURROUNDING CITIES.
THE TABLE ON THE RIGHT INDICATES THE FOUR DIVISIONS THAT WERE ASSESSED.
INSPECTION AND PLAN REVIEW, ENGINEERING, GIS AND SUBDIVISION.
ON THE FAR RIGHT YOU'LL NOTICE THE TOTAL AMOUNT SUBSIDIZED BY THE DEVELOPMENT SERVICES DEPARTMENT.
SLIDE 13 DEMONSTRATES JUST A HYPOTHETICAL SITUATION OR ASSESSMENT OF THE POTENTIAL FOREGONE REVENUES.
AGAIN, WE HAVE NOT ADJUSTED OUR FEES SINCE 2015.
THE TOP THREE ROWS INDICATE WHAT THOSE REVENUES THAT WERE POTENTIALLY FOREGONE AT A 3% ASSUMPTION.
AND THE BOTTOM THREE, DEMONSTRATE WHAT THOSE WOULD LOOK LIKE WITH A 5% ASSUMPTION ADJUSTMENT.
SO OVERALL, FOR THE TOP ASSUMPTION WITH 3%.
DEVELOPMENT SERVICES HAS FOREGONE ABOUT $10.6 MILLION AND $17.7 MILLION AT THE 5% ASSUMPTION.
SO JUST A LITTLE BACKGROUND ON WHAT THOSE FEES WOULD LOOK LIKE.
SO ONE OF OUR BIGGEST COMMITMENTS TO THE DEVELOPMENT COMMUNITY IS TO HAVE OPEN AND TRANSPARENT COMMUNICATION, WITH SOMETHING AS SIGNIFICANT AS THE FEE ADJUSTMENT, YOU HAVE TO HAVE PLENTY OF COMMUNICATION AND OUTREACH WITH YOUR CUSTOMERS.
ON THE LEFT YOU'LL NOTICE THOSE FOLKS THAT WE HAVE ALREADY PARTNERED WITH, AND ON THE RIGHT, YOU'LL NOTICE THAT WE'LL CONTINUE TO HAVE THOSE DISCUSSIONS WITH OUR CUSTOMERS ABOUT THIS POTENTIAL STUDY THAT WILL BE ADOPTED.
CURRENTLY, DEVELOPMENT SERVICES HAS 78 VACANT POSITIONS.
25 OF THOSE POSITIONS WERE RECENTLY ADDED OCTOBER 1ST.
AND SO WE'LL CONTINUE TO WORK AGGRESSIVELY TO FILL THOSE POSITIONS.
SO WE'RE MAKING PROGRESSIVE IMPROVEMENT IN THAT AREA.
AND WE'LL CONTINUE TO WORK ON THAT.
SO WE'LL CONTINUE OUR FEE STUDY OUTREACH WITH OUR CUSTOMERS FOR THE REST OF THE MONTH OF NOVEMBER.
WE'RE HOSTING A HIRING FAIR IN THIS MONTH AS WELL.
WE WANT TO FINALIZE OUR DALLAS DEVELOPMENT GUIDE AND USER GUIDE IN DECEMBER.
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WE WANT TO LAUNCH OUR COMMERCIAL PERMITTING DASHBOARD LATE DECEMBER, EARLY JANUARY, AND THEN, OF COURSE, DRAFT AN ORDINANCE FOR CITY COUNCIL CONSIDERATION ON THE FEE STUDY.THAT ENDS OUR PRESENTATION, AND WE ARE HERE TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.
YEAH. ANDREW. I JUST HAVE ONE QUESTION.
START ON PAGE 12 AND I HOPE ALL THE COLLEAGUES HAVE A MEMO.
SO OUR PLAN IS TO UPDATE THIS COMMITTEE AGAIN IN DECEMBER 4TH AND STRICTLY FOCUS ON THE FINDINGS FROM THE FEE STUDY AND THEN GET YOUR FEEDBACK ON.
NOW, I WANT TO MAKE SURE ON PAGE 12 TO ASK A COUPLE OF QUESTIONS ON THIS FEE STUDY RIGHT HERE.
BY LOOKING AT THIS FEE STUDY, THERE ARE FOUR ITEMS, YOU KNOW, FIRST INSPECTION PLAN REVIEW.
AND I JUST WANT TO GET CLARITY ON WHAT I'M TRYING TO GRASP RIGHT NOW.
IN INSPECTION AND PLAN REVIEW YOU ARE SAYING THAT 42% THAT WE ARE NOT GETTING RECOUPED AND WE'RE LOSING ABOUT $17 MILLION JUST ON INSPECTION PLAN REVIEW.
IS THAT A FAIR STATEMENT? YES, SIR. SO WE'VE BEEN LOSING THAT AMOUNT OF MONEY.
SINCE WHEN? THIS ASSESSMENT WAS BASED UPON LAST YEAR'S LATEST DATA, BUT EXPENSES FOR THIS YEAR.
IT IS A SNAPSHOT RIGHT NOW ON INSPECTION PLAN REVIEW WILL ALLOW SO FAR $17 MILLION, IS THAT CORRECT? YES, SIR. THAT'S CORRECT.
$17 MILLION WILL MAKE SURE YOU ALL UNDERSTAND $17 MILLION.
AND WE ARE LOSING THIS BECAUSE WE ARE NOT CHARGING THE RIGHT AMOUNT OF FEES THAT WE NEED TO COLLECT.
CHAIR IT IS BECAUSE WE HAVE NOT ADJUSTED OUR FEES.
AND YES, YOUR ASSESSMENT. SO WHEN THE LAST TIME WE ADJUSTED OUR FEES? MY UNDERSTANDING IS 2015 AND I'M LOOKING TO ASSISTANT DIRECTOR YOUNG, THAT WAS BEFORE MY TIME.
AND THE OTHERS SAID THEY HAVE ADJUSTED OUR FEES ALSO.
IS THAT A FAIR STATEMENT? THAT'S CORRECT. OKAY.
ALSO, WHY DID IT TAKE US SO LONG TO GET THIS FEE STUDY TO THE COUNCIL? WHY DID IT TAKE SO LONG? WHAT HAPPENED? CHAIRMAN, ARE YOU ASKING WHY IT TOOK EIGHT YEARS? WELL, ASKING THE FEE STUDY.
WE GOT A FEE STUDY CAN COME TO THE COMMITTEE IN DECEMBER AND I'M JUST NOW SEEING A COPY.
WHY DID IT TAKE SO LONG FOR US TO REALIZE HOW LONG WE ARE LOSING MONEY? BECAUSE WE HAVE NOT ADJUSTED FEES, AND WE DID.
WHEN DID THE COUNCIL APPROVE THE FEE STUDY? PUT IT THAT WAY. WHEN DID WE APPROVE THROUGH PROCUREMENT THAT WE NEED TO DO A FEE STUDY, WHEN DO WE AUTHORIZE THAT PROCUREMENT? COUNCIL MEMBER IF MY MIND SERVES ME WELL, I BELIEVE IT WAS THE SPRING OF 2019, AND I LOOK TO ASSISTANT DIRECTOR YOUNG TO CORRECT ME IF I'M WRONG. NO, THAT'S ACCURATE.
SO IT TOOK US ALMOST FIVE YEARS TO GET THIS STUDY TO THE BACK TO THE COUNCIL.
SO WHAT HAPPENED? I'M JUST TRYING TO FIGURE IT OUT.
COUNCIL MEMBER THANK YOU FOR THAT QUESTION.
IT'S A VERY DIFFICULT QUESTION FOR ME TO ANSWER SINCE I WASN'T HERE.
HOWEVER, I'M GOING TO DEFER TO ASSISTANT DIRECTOR YOUNG, BUT AS I BEFORE I DO, I WOULD LIKE TO SAY THAT IT IT APPEARS THAT FROM WHAT I HAVE SEEN, THERE WERE SOME CHANGES IN LEADERSHIP AND MANAGEMENT.
AND MAYOR PRO TEM GREAT QUESTION.
THE DEVELOPMENT COMMUNITY KIND OF KIND OF PUSHED BACK.
BUT I BELIEVE SINCE THEN WE'VE GAINED TRACTION.
AND ANOTHER REASON THAT WE WEREN'T ABLE TO ATTACK IT, THAT WE WERE FOCUSED ON PROVIDING BETTER CUSTOMER SERVICE, GETTING THE PERMITS OUT IN THE LAST YEAR, YEAR AND A HALF. AND SO THE MINUTE WE WERE ABLE TO PUT THIS BACK ON THE PLATE, I BELIEVE WE STARTED IN JANUARY OR FEBRUARY.
WE HAD TO HAVE A GREATER APPROACH, UNDERSTANDING THAT THERE WERE ITEMS THAT WERE MISSED.
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WE DID A DEEPER DIVE, AND I THINK THAT THE DEVELOPMENT COMMUNITY AND OUR COUNCIL WILL APPRECIATE THE TIME SPENT IN THE IN-DEPTH, IN-DEPTH OF THIS STUDY.OKAY, SO IF WE LOOK AT ENGINEERS AND WE KNOW IT'S DIFFICULT TO HIRE ENGINEERS, AND RIGHT NOW IT SHOWS 61% N EGATIVE. WE'RE LOSING.
WE'RE LOSING ALMOST $3.5 MILLION JUST ON THE ENGINEERS COSTS FOR ENGINEERS.
SO KIND OF EXPLAIN TO THAT WHY ARE WE LOSING SO MUCH? BECAUSE WE'RE NOT HAVE ENOUGH ENGINEERS.
AND WE AND HOW DO WE RECOUP THIS? I MEAN, IT'S SHOWING SHOWING WITH $3.5 MILLION LOSS, 61% OF COST.
HOW DID WE PAY FOR IT? I MEAN, HOW DO WE BALANCE IT OUT? MAYOR PRO TEM, YOU'RE CORRECT.
A LOT OF THAT IS DUE TO THE FACT THAT THERE ARE FEES THAT ARE NOT CURRENTLY ASSESSED.
IN OTHER WORDS, IF THEY'RE NOT CODIFIED, WE CANNOT CHARGE FOR THEM.
AND SO THAT IS THE BIGGEST THING THAT THAT I HAVE NOTICED, ASIDE FROM NOT PERFORMING THE ASSESSMENT AND ADJUSTING IT BASED UPON THE RECOVERY RATE, THERE ARE APPROXIMATELY 40 SERVICES THAT WE DO NOT PROVIDE OR HAVE THE ABILITY TO CHARGE A FEE FOR.
SO 97%, ALMOST $1 MILLION, WE'RE LOSING THAT.
WHY ARE WE A NEGATIVE BECAUSE OF MAYBE BECAUSE DEPARTMENTS.
DO EVERYBODY USE GIS? I MEAN HOW WE COME ABOUT THE 97% LOSS.
SO OUR GIS TEAM IS VERY FACILITATIVE AND HELPS WITH THE PUBLIC NOTIFICATION PROCESS FOR CPC, FOR PUD, FOR REZONING CASES.
AND SO A LOT OF WHAT WE DO IS PAID OUT OF THE DEVELOPMENT FUND.
OKAY. SUB DIVISION, YOU KNOW, 32% WE'RE LOSING.
MAYOR PRO TEM THE SAME RESPONSE.
AGAIN IT'S WE HAVEN'T ADJUSTED OUR FEES AND THERE ARE SOME FEES THERE THAT WE ARE MISSING OUT ON.
OKAY. SO WE CAN SAY THIS IS AN ENTERPRISE FUND RIGHT.
YES, SIR. AND IT WILL BE COST RECOVERED, RIGHT? YES, SIR. AND SO ARE YOU SAYING THAT WE LOST $22 MILLION IN THIS FUND ALREADY? SO THAT IS THE POTENTIAL IMPACT BASED UPON WHAT THE CONSULTANT'S FINDINGS DISCOVERED.
SO THE POTENTIAL IMPACT IS $22 MILLION.
IS THAT THE CONSERVATIVE IMPACT FOR YEAR 22-23 OR THE YEAR 2024? SO WHAT YEAR ARE WE TALKING ABOUT IS $22 MILLION PRESENT FUTURE OR WHAT? SO THAT IS A CURRENT SNAPSHOT NOW AND MOVING FORWARD OKAY.
COUNCIL MEMBER EXCUSE ME, MAYOR PRO TEM, I DON'T HAVE THAT INFORMATION.
SO YOU SAID ROUGHLY ABOUT $37 MILLION.
I DON'T LOOK AT I KNOW ABOUT $37 MILLION.
SO RIGHT NOW YOU'VE GOT $22 MILLION.
SO THEREFORE I KNOW WE BOUGHT ANOTHER FACILITY, YOU KNOW, TO MOVE OUR PERMIT DEPARTMENT.
SO $22 MILLION, WE'RE UNDER CHARGE OF $22 MILLION.
EVEN THOUGH WE DID $14 MILLION WORTH OF NEW PERMIT IN THE LAST THREE YEARS.
SO WE ARE UNDER CHARGING PERMIT AND THE OTHER CITIES ARE CHARGING MORE, AND THEY GET MORE MONEY AND GET MORE PROPERTY VALUE AND GET MORE PERMIT OUT.
NUMBER TWO, WE NEED TO TELL THE RIGHT STORY OUT THERE.
MY JOB IN THIS COMMITTEE IS TO FIX THIS, AND WE'RE GOING TO FIX IT RIGHT NOW.
WE UNDERCHARGING WE ARE UNDER CHARGING.
SO IT COSTS US $22 MILLION SO FAR BECAUSE WE UNDERCHARGING FOR PERMITS.
WE GOT OTHER DEPARTMENTS THAT WE ARE PAYING FOR THEIR WORK.
WE SHOULD BE CHARGING BACK TO OUR DEPARTMENTS.
AS THE PACE WE'RE GOING RIGHT NOW, WE'RE GOING TO BE IN A BIG NEGATIVE.
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AND WHEN DO YOU SEE THAT BOTTLING DROP OUT.IF WE DO NOT DO OUR FEES RAISE OUR FEES.
MAYOR PRO TEM, I BELIEVE IF MY MEMORY SERVES ME WELL, IT WAS IN THE NEXT TWO FISCAL YEARS.
THE MONEY COMES FROM COST RECOVERY.
RIGHT? SO IF THE MONEY DON'T COME FROM COST RECOVERY, HOW DO WE RECOVER MONEY? HOW DO WE END UP SUBSIDIZING PERMITS IF WE DO NOT CHARGE THE CURRENT PRICE OR CORRECT FAIR MARKET PRICE FOR COST RECOVERY? HOW DO WE BALANCE THAT OUT? MAYOR PRO TEM THAT'S THAT'S A VERY AGAIN, A VERY DIFFICULT QUESTION FOR ME TO ANSWER.
OPERATING IN THIS FASHION JUST SEEMS A LITTLE BIT IRRESPONSIBLE.
AND AS A DIRECTOR, IT'S MY JOB TO BRING THIS INFORMATION FORWARD, FINISH AND FINALIZE THE FEE STUDY.
AND AS VERNON ASSISTANT DIRECTOR YOUNG MENTIONED, WE WORKED VERY HARD ON THIS THE PAST COUPLE OF MONTHS, AND WE'VE CONTINUED TO TO DIG DOWN AND DRILL DOWN DEEPER TO TRY TO BRING YOU THE MOST ACCURATE INFORMATION.
THIS FEE STUDY WAS ALSO SHARED WITH ALL OF OUR CUSTOMERS VIA CONSTANT CONTACT.
AND I JUST WANT TO MAKE SURE THAT WE DO MARKET THIS OUT, YOU KNOW, BY DECEMBER THE 4TH, WHEN WE COME BACK TO THE COMMITTEE THAT EVERYONE KNOW WHAT WE'RE DOING, WE KNOW WE UNDERCHARGING WE KNOW WHAT OTHER CITIES ARE DOING, AND THEY'RE GOING TO SHOW THAT.
BUT I ALSO I WANT TO MAKE SURE AGAIN, I KEEP STRESSING AGAIN.
I WANT IF PEOPLE, COMPANIES OR BUSINESS IS SAYING THAT IT'S DIFFICULT US TO GET A PERMIT.
I WANT TO KNOW THEIR NAMES, THEIR TELEPHONE NUMBER AND ADDRESS.
I DON'T WANT COMPANIES CALLING US OR CALLING THE COUNCIL AND SAYING, HEY, YOUR PERMIT IS BAD.
HOW CAN WE FIX IT IF WE DON'T KNOW WHAT IS GOING ON? AND I HOPE YOU KEEP THAT RECORD THAT EVERYONE SAID THAT, HEY, WE'RE DOING A BAD JOB AND GETTING THE PERMITS OUT.
I CALL YOU AND SAY, WHAT A PROBLEM.
THEN ALL OF A SUDDEN I GOT OTHER COUNCIL MEMBERS PEOPLE CALL AND SAY, WE STILL GOT MAJOR PROBLEMS WITH PERMITS, SO WE KNOW WE DO HAVE A MAJOR PROBLEM PERMIT, BUT WE DON'T HAVE A MAJOR PROBLEM. BUT WE DO HAVE ONE MAJOR PROBLEM.
AND WE DID $14 BILLION WORTH OF BUSINESS IN THE LAST THREE YEARS, MORE THAN ANYBODY IN THE COUNTRY.
SO WE ARE DOING SOMETHING HERE.
SO WE NEED TO GET THAT NEGATIVE OUT THERE AND START AND START THINKING ABOUT POSITIVE MARKETING AND SELLING, BECAUSE THE PERMITS AND THE FEES THAT WE DO PAY FOR PUBLIC SERVICE, IF WE'RE GOING TO BE A SAFE COMMUNITY, IF WE DON'T GET THESE FEES AND PYRAMID, WE CAN'T PAY NOBODY'S JOB.
WE CAN'T HAVE NO POLICE DEPARTMENT, NO FIRE FIRE STATION DEPARTMENT.
WE CAN'T FIX THE STREET. WE CAN'T FIX THE POTHOLE BECAUSE THIS WOULD PAY THE BILL.
ALL THESE PROPERTY TAX PAY FOR ALL OUR PUBLIC SAFETY.
THERE IS A URGENT THAT WE GET THIS RESOLVED.
WE DON'T GET RESOLVED BY THE END OF THIS YEAR.
I TOO AM CONCERNED, AS IS THE MAYOR PRO TEM, WITH THE LOSS RATIO ON THE PERMIT FEES.
WILL THE DECEMBER 4TH BRIEFING WITH THE CONSULTANT HAVE A COMPARISON OF WHAT OTHER CITIES ARE DOING, WHETHER THEY'RE LOSING SIMILAR PERCENTAGES ON THEIR FEES OR ARE THEY CHARGING FULL COST RECOVERY? COUNCIL MEMBER GREAT QUESTION.
I'M NOT CERTAIN THAT THEY ACTUALLY HAVE DONE A COST ANALYSIS WITH SOME OF THE SURROUNDING CITIES.
HOWEVER, THEY DO HAVE DATA AS IT RELATES TO WHAT THEY'RE CHARGING, OKAY? AND THEY'VE GIVEN YOU THEIR PRELIMINARY CONCLUSION THAT THEY'RE CHARGING MORE THAN WE ARE FOR SIMILAR PERMITS.
YES. COUNCIL MEMBER, THE FINAL DRAFT FEE STUDY WAS SHARED.
WE ARE SIGNIFICANTLY LESS THAN ALL OF THE SURROUNDING CITIES.
NOW WHAT IS THE PLAN GOING FORWARD AFTER YOU BRIEF THIS COMMITTEE ON DECEMBER THE 4TH? WILL THERE BE AN OPPORTUNITY TO ADJUST THESE FEES BEFORE OR TO TAKE EFFECT IN JANUARY?
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SO OUR GOAL IS TO BE ABLE TO COME BACK TO YOU FULL COUNCIL LATER IN DECEMBER TO AGAIN ANSWER ANY QUESTIONS THAT MAY ARISE AND HOPEFULLY, WITH YOUR APPROVAL AND SUPPORT, BE ABLE TO MOVE FORWARD WITH THE ADOPTION OF FEBRUARY 1ST AND THEN GRADUALLY IMPLEMENT THOSE FEES OVER THE SUBSEQUENT YEARS.WELL, I'D LIKE TO SEE THAT WE ADOPT A NEW FEE SCHEDULE AS SOON AS POSSIBLE TO FORESTALL FUTURE DEFICITS IN THIS FUND. I MEAN, THIS IS WE'RE HEMORRHAGING CASH HERE.
AND WHAT HAPPENS WHEN THAT SURPLUS RUNS OUT? DO YOU HAVE TO LAY OFF PEOPLE BECAUSE IT'S AN ENTERPRISE FUND AND YOU CAN'T TAKE MONEY FROM THE GENERAL FUND? COUNCIL MEMBER HISTORICALLY, THAT'S WHAT HAS HAPPENED TO DEVELOPMENT SERVICES DEPARTMENTS OR ENTERPRISE FUNDS PER SE.
HOW IS THAT NUMBER OF PERSONNEL VACANCIES COMPARED WITH LAST MONTH'S REPORT? I BELIEVE LAST MONTH WE WERE SOMEWHERE IN THE 48-49 RANGE.
SO HIRING BASICALLY HASN'T ADDED ANY NEW PERSONNEL IN THE LAST MONTH.
SO I THINK CURRENTLY WE HAVE ABOUT 300 ON STAFF.
YOUR REPORT, GOOD STATISTICS ON SLIDE 11, PARTICULARLY IN THE COMMERCIAL AND RESIDENTIAL AREAS.
TO WHAT DO YOU ATTRIBUTE THOSE REDUCTIONS IN PERMITTING TIMES AND WILL THOSE CONTINUE AT THE CURRENT LEVEL? COUNCIL MEMBER WHAT YOU SEE THERE IN GREEN ARE REDUCTIONS IN THOSE PARTICULAR WORKFLOW PROCESSES.
AND WE ANTICIPATE THAT WE'RE GOING TO CONTINUE ON THAT TREND.
OKAY. I NOTICED ON SLIDE FIVE THAT THERE WAS A SLIGHT UPTICK IN SEPTEMBER TO SIX DAYS FOR PERMIT PROCESSING FOR RESIDENTIAL.
I THINK EARLIER IN THE YEAR, YOU REPORTED THAT THERE WAS A PRETTY SUBSTANTIAL BACKLOG OF OLD PERMIT APPLICATIONS THAT WERE MONTHS OLD. HAS THAT ALL BEEN WORKED DOWN NOW SO YOU'RE JUST PROCESSING CURRENT APPLICATIONS? ALL OF THE OLD PERMITS THAT ARE NONEXISTENT.
WE DO NOT HAVE A BACKLOG IN RESIDENTIAL.
AND, AND THOSE HAVE KIND OF DRAGGED OUT A LITTLE BIT.
BUT WHAT COMES IN IS WHAT WE'RE PUSHING OUT.
OKAY. AND IN TERMS OF COMPLYING WITH THE MANDATE OF THE STATE LEGISLATURE TO PROCESS PERMITS WITHIN 45 DAYS, ARE YOU COMFORTABLY WITHIN THAT LIMIT? AND ARE YOU RESTRICTING INTAKE OF APPLICATIONS THAT DON'T HAVE PLANNING AND ZONING? SO I'M RELATIVELY COMFORTABLE WITH WHERE WE ARE WITH THE 45 DAY SHOT CLOCK.
SO TO ANSWER YOUR QUESTION, YES, AS IT RELATES TO PROJECT SUBMITTALS, WE ARE GRADUALLY MOVING TOWARDS TELLING OUR CUSTOMERS THAT WE'RE NOT GOING TO ACCEPT PROJECTS THAT ARE NOT PROPERLY ZONED OR PLATTED, BECAUSE WE UNDERSTAND THAT'S A MONTH, MONTHS AND MONTHS LONG PROCESS.
AND SO WHILE SOME CUSTOMERS MAY PANIC WHEN THEY SEE A DENIAL NOTICE, IT'S NOT THAT THE PERMIT IS DENIED, BUT RATHER THAT THEY NEED TO WORK THROUGH A PARTICULAR PROCESS BEFORE SUBMITTING.
OKAY. AND SO YOU'RE INFORMING THEM OF THE REASON FOR THOSE DENIALS.
OKAY. AND THEN FINALLY, I NOTICED IN SLIDE SIX THAT THERE SEEMS TO BE A TREMENDOUS DOWNTURN IN THE NUMBER OF COMMERCIAL PERMITS THAT ARE BEING APPLIED FOR DURING THIS FISCAL YEAR.
EVERY MONTH, EXCEPT FOR FEBRUARY AND LAST OCTOBER THE VOLUME OF COMMERCIAL PERMITS IS HAS BASICALLY PLUMMETED.
IN SEPTEMBER, IT DROPPED FROM 24 LAST YEAR TO FOUR THIS YEAR.
WHAT DO YOU ATTRIBUTE THAT TO? IS IT JUST ECONOMIC CONDITIONS? COUNCIL MEMBER GREAT QUESTION.
[00:30:01]
THE ONLY THING I CAN THINK OF THAT'S DRIVING THAT IS THE MARKET INTEREST RATES.I HAD A CUSTOMER HERE RECENTLY THAT SAID, ANDREW, DON'T ISSUE MY PERMIT.
CAN I HAVE ANOTHER EXTENSION? CAN I HAVE ANOTHER EXTENSION? I'M HOPING THAT THE INTEREST RATES ADJUST.
AND SO WHILE THAT KIND OF SOMETIMES REFLECTS NEGATIVELY ON US, WE COMPLETELY ARE EMPATHETIC TO THEIR PLIGHT BECAUSE THEY'VE INVESTED SO MUCH MONEY ON THEIR DESIGN AND WE WANT TO SEE THEIR PROJECTS REACH FRUITION.
SO I ATTRIBUTE THAT TO JUST THE MARKET.
I SHOULDN'T BE TOO LONG BECAUSE I AGREE WITH EVERYTHING YOU SAID WHEN YOU OPENED WITH THE QUESTIONS.
APPRECIATE THE UPDATE, AND I'M GLAD WE'RE GOING TO HAVE A FULL BRIEFING ON THE FEES HERE SOON.
THE FULL BRIEFING WILL ALSO BE IN DECEMBER, SO IT LOOKS LIKE A LOT OF THE WORK AND FINALIZATION IS GOING TO BE HAPPENING BETWEEN NOW AND THEN, EVEN THOUGH THE BRIEFING IS IN DECEMBER. SO IF YOU IF WE HAD COMMENTS OR MAJOR CONCERNS ABOUT THE FEES, WHICH WE MAY NOT, BUT IF WE DO, DO YOU NEED THEM LIKE THE SOONER THE BETTER.
COUNCIL MEMBER THANK YOU FOR THAT INQUIRY.
AS YOU KNOW, I'M AVAILABLE ANYTIME.
AGAIN, THIS IS THE FINAL DRAFT FEE STUDY ASSESSMENT.
BUT YES, THE SOONER THE BETTER.
NOW, MOST OF US DON'T LOVE IT WHEN IT'S DONE ON THE FLY AT THE HORSESHOE.
I'VE DONE IT MYSELF, SO I GET IT.
BUT I THINK IDEALLY WE KNOCK IT OUT BEFOREHAND IF WE CAN.
YOU SHOULDN'T BE SUBSIDIZING THIS STUFF.
AND EVERY DEVELOPER I'VE EVER TALKED TO HAS SAID, YOU KNOW, WE'LL PAY MORE FOR BETTER SERVICE.
I DO STRUGGLE WITH THE THOUGHT OF, DO WE SUBSIDIZE AFFORDABLE HOUSING DEVELOPMENTS IN THIS CASE OR NOT? AND I GO BACK AND FORTH BETWEEN THINKING WE SHOULD.
BUT THEN ON THE FLIP SIDE, I FEEL LIKE WE NEED TO KNOW WHAT AFFORDABLE HOUSING COSTS LIKE, WHAT IS THE FULL COST OF AFFORDABLE HOUSING SO WE CAN TELL OUR TAXPAYERS IT COSTS THIS TO DO THAT. AND I FEEL LIKE THE SUBSIDIES REALLY SHOULDN'T HAPPEN AT YOUR LEVEL.
IT SHOULD BE SOMEWHERE ELSE AND YOU ARE RECOVERING YOUR FULL COST.
SO THIS IS SOMETHING I'VE STRUGGLED WITH SINCE WE'VE TALKED ABOUT THESE FEES.
AND I THINK I'M THERE WHERE YOU SHOULD GET FULL COST RECOVERY HERE.
THE DEVELOPMENT ADVISORY COMMITTEE I'VE SEEN HERE ON SLIDE 13, THEY HAVE BEEN INVOLVED IN THIS.
I ASSUME YOU'VE GOTTEN SOME GOOD FEEDBACK AND GIVE AND TAKE ON I MEAN, NOBODY WANTS TO PAY FULL FEES, SO I'M SURE YOU'RE HEARING THAT RIGHT? COUNCIL MEMBER THE DEVELOPMENT ADVISORY COMMITTEE IS AN AMAZING GROUP OF FOLKS THAT ARE VERY SUPPORTIVE.
IT'S NOT THE FEES, BUT WE'RE OPEN TO FEEDBACK.
OKAY. AND THEY MEET IT'S THIRD FRIDAY.
IS THAT RIGHT. WE'RE MEETING ON A REOCCURRING 6 TO 8 WEEK SCHEDULE.
OKAY I UNDERSTAND LAST QUESTION.
AND THIS IS REALLY OFF THE FEE STUDY.
HOW IS THE THIRD PARTY REVIEW COMING AND WHAT ARE THEY WORKING ON NOW? COUNCIL MEMBER ARE YOU REFERRING TO THE SELF CERTIFICATION OR THE HOUSE BILL 14 REQUIREMENT? I'M REFERRING TO OUR THIRD PARTY PERMIT REVIEWERS.
OH I SEE, SO WE'RE STILL UTILIZING THE THIRD PARTY PLAN REVIEW TEAM.
AS WE BECOME MORE STAFFED, THAT HAS DECREASED A LITTLE, BUT WE'RE CONTINUING TO UTILIZE THEM FOR TRAINING AND TO HELP FILL IN THE GAPS. GREAT.
FIRST QUESTION. DID YOU ALL IN THE CURRENT BUDGET ASK FOR MORE POSITIONS? COUNCIL MEMBER I BELIEVE LAST FISCAL YEAR WE ASKED FOR THE CURRENT BUDGET, NOT THE CURRENT.
YES AND SO NOW YOU'RE HEMORRHAGING CASH.
[00:35:07]
FIXED. AND SO I FEEL LIKE THIS MAY HAVE BEEN DONE JUST ON PURPOSE IN ORDER TO GET YOUR WAY.YOU SHOULD. YOU DIDN'T HAVE A DRAFT OF THIS REPORT.
YOU KNEW EVEN AHEAD OF THE BUDGET AS GETTING IT APPROVED.
NO COUNCIL MEMBER THIS WAS JUST FINALIZED THIS PAST MONTH IN OCTOBER.
BECAUSE, YOU KNOW, ALMOST EVERY OTHER STUDY THAT WE DO, WE GET ANYTHING.
WE ALMOST ALWAYS GET A DRAFT OF IT AHEAD OF TIME, 30 TO 60 DAYS AHEAD OF TIME.
SO YOU CAN PUT YOUR COMMENTS, YOU CAN MAKE YOUR CHANGES.
SO YOU'RE SAYING THAT THERE WAS NO DRAFT AHEAD OF AHEAD OF YOU ALL APPROVING IT OR GETTING THE FINAL THE FINAL THIS PAST OCTOBER? I BELIEVE THERE WAS SOME DRAFTS, BUT THE ACTUAL FINAL ASSESSMENT WASN'T COMPLETED UNTIL.
WHO OVERSEES YOUR DOLLARS AND CENTS? SO ASSISTANT DIRECTOR VERNON YOUNG OVERSEES OUR BUDGET TEAM.
AND ALSO WE HAVE OUR BUDGET ADMINISTRATOR NATASHA WADE HERE WITH US TODAY.
IF YOU HAVE A SPECIFIC QUESTION AS IT RELATES TO.
I WANT TO KNOW WHO KNEW ABOUT THE HEMORRHAGING CASH BEFORE WE GOT THE REPORT.
I MEAN, I'M SORRY, BUT WE DO IT EVERY MONTH.
SO I'M JUST NOT GOING TO ACCEPT THAT WE WERE WAITING ON A REPORT THAT WE DIDN'T SEE THE REPORT COMING BECAUSE WE LIKE I SAID, EVERY MONTH WE ARE RECONCILING EVERY DEPARTMENT, EVERY EVERY PIECE.
AND I MEAN TOILET PAPER, PAPER CLIPS, PENCILS.
WE KNOW EXACTLY WHAT WE'RE SPENDING.
AND I KNOW IT'S, YOU KNOW, THERE'S A DIFFERENCE BECAUSE WE DON'T ALWAYS KNOW THE FEES COMING IN.
YOU KNOW, HOW MANY PEOPLE ARE DOING WHAT.
BUT YOU CAN STILL SEE THAT TREND WHEN YOU'RE WHEN YOU'RE LOOKING AT YOUR BUDGET.
SO NOBODY'S LOOKING AT THE BUDGET ON A MONTHLY BASIS.
COUNCIL MEMBER NARVAEZ VERNON YOUNG ASSISTANT DIRECTOR.
SO YES, WE WERE LOOKING AT THE BUDGET, BUT THERE WERE MULTIPLE ITEMS THAT WERE WERE AFFECTING THAT THE PURCHASE OF THE NEW BUILDING TO SELL THE SOFTWARE, AND THERE WERE SOME MOVEMENT AND ADJUSTMENTS. AND ALSO AS WE NAVIGATED THROUGH HOW WE BEST UTILIZE OUR THIRD PARTY VENDORS, WE SPENT A LITTLE BIT MORE THAN EXPECTED IN ORDER TO SHORE UP DEVELOPMENT AND DALLAS AND MAKE SURE PERMITS WERE GETTING OUT.
AND SO YOU ARE ACCURATE IN STATING THAT THERE WERE SIGNS THERE, BUT WITHOUT THIS FULL REPORT, IT WAS UNCLEAR EXACTLY HOW THAT AFFECTED WHERE WE WERE IN THE FUTURE. THESE NUMBERS ARE BASICALLY BASED OFF OF 2023-2024 BUDGET CALLS.
ALL RIGHT. VERY GOOD. WELL, I APPRECIATE THAT ANSWER.
SO THANK YOU. IT'S YOU CAN'T GET AROUND AN HONEST ANSWER.
RIGHT. BUT WHAT I THINK I'M GOING TO ASK FOR IS IN THE FUTURE, IF WE START SEEING A TREND AND IT'S FORMING, PLEASE WARN THIS BODY AHEAD OF TIME SO THAT WE'RE NOT HIT. THIS IS BLINDSIDING FOR US.
AND JUST I MEAN, YOU HAVE TO UNDERSTAND THAT THIS HAS BLINDSIDED US AS A BODY.
AND SO AT LEAST ME AND IT'S VERY CONCERNING.
AND SO, YOU KNOW, I'M USUALLY THE NUMBER ONE CHEERLEADER AND CHAMPION.
BUT IF WE GOT A SCREW UP, YOU KNOW, WHATEVER IT IS, YOU KNOW, I'M GOING TO CALL IT OUT.
SO I APPRECIATE THE RESPONSE OF THE ANSWERS.
JUST IN THE FUTURE, LET US KNOW AHEAD OF TIME.
AND I'M GOING TO STOP WITH THAT BECAUSE I'VE GOT AN ANSWER I CAN LIVE WITH.
THE NEXT THING IS, THERE WAS A COMMENT ABOUT FEES AND AFFORDABILITY AND HOUSING.
I'M GOING TO BE ON THE OPPOSITE END OF THAT.
I THINK IT'S ONE OF OUR TOOLS, AND WE NEED TO LOOK AT THAT AND CHECK AND SEE IF THAT IT'S IN ALIGNMENT WITH THE OTHER TOOLS THAT WE HAVE IN ORDER FOR US TO NOT STOP OR PUT A CHINK IN THE ARMOR THAT WE ALREADY HAVE IN ORDER TO CREATE MORE WORKFORCE HOUSING.
IT MIGHT NEED TO GO DOWN A LITTLE BIT.
I DON'T KNOW WHAT THAT SUBSIDY ANSWER IS.
I'M GOING TO GO WITH, IF YOU ALL ARE WORKING WITH AND NOT IN A SILO OVER HERE, AND YOU CAN WORK WITH OUR OTHER DEPARTMENTS THAT DO THESE TYPES OF SUBSIDIES OR COMPONENTS.
HOW IS THIS BEST UTILIZED? ARE WE UTILIZING IT TO THE BEST OF OUR ABILITY, AND THE SUBSIDY MAY NEED TO BE AMENDED AND CHANGED.
OH, WE YOU KNOW, WE'RE GOING TO RAISE IT UP A LITTLE BIT OR WE'RE GOING TO DECREASE IT A LITTLE BIT, JUST BASED ON THE OTHER TOOLS THAT WE HAVE, BECAUSE WE DON'T WANT TO GET RID OF A TOOL AND THEN ALL OF A SUDDEN THEN WE CAN'T GO BACK TO GETTING THAT TOOL.
SO IF YOU ALL COULD DO THAT, I THINK THAT'S THE, THE, THE BEST APPROACH THAT I WOULD SUPPORT, I WOULD NOT SUPPORT GETTING RID OF IT ALTOGETHER WITHOUT DOING SOME KIND OF A STUDY WITH THE OTHER GROUPS TO SEE IF THIS TOOL IS WORKING THE WAY IT SHOULD BE WORKING.
[00:40:06]
COUNCIL MEMBER THANK YOU FOR THAT FEEDBACK.LAST YEAR WE STOOD UP A TEAM OF FIVE TEAM MEMBERS AND WE NAMED IT THE AFFORDABLE HOUSING TEAM.
AND THEY SPECIFICALLY WORK ON NEW SINGLE FAMILY PROJECTS IN SUPPORT OF THE DALLAS HOUSING DEPARTMENT TO ENSURE THAT DEVELOPMENT SERVICES, NOT ONLY BEING A GOOD BUSINESS PARTNER, BUT BEING ABLE TO GET THOSE PERMITS IN AND OUT QUICKLY BECAUSE WE UNDERSTAND TIME EQUATES TO MONEY.
AND SO WE'LL CONTINUE TO PARTNER WITH OUR SISTER DEPARTMENTS AT ECONOMIC DEVELOPMENT HOUSING TO FIGURE OUT IF THERE'S AN OPPORTUNITY FOR US TO CONTINUE TO FACILITATE AFFORDABLE HOUSING DEVELOPMENT IN DALLAS.
ABSOLUTELY. THANK YOU. THANK YOU VERY MUCH.
THANK YOU, MR. CHAIR. CHAIRMAN STEWART, ANY QUESTION? DEPUTY MAYOR PRO TEM ARNOLD ANY QUESTIONS? CHAIRMAN BAZALDUA ANY QUESTIONS? VIRTUAL WORLD. I'M NOT GOING TO REPEAT THAT, CHAIRMAN WEST.
YOU KNOW, I JUST GOT TO ASK THIS QUESTION, AND WE NEED TO FIGURE THIS OUT.
SO CAN WE JUST PUT OUT THERE SOME KIND OF WAY THAT IF YOU GOT A PROBLEM WITH PERMITS IN THE CITY OF DALLAS, PLEASE CONTACT YOUR OFFICE.
ANDREW, PLEASE CONTACT YOU AND MAKE SURE THAT WE KIND OF STREAMLINE WHAT'S GOING ON, BECAUSE WE STILL GOT PEOPLE CALLING THE COUNCIL SAYING WE GOT PROBLEMS. AND WHAT I'M HEARING RIGHT NOW, YOU ARE SOLVING THE PROBLEM, BUT IF YOU DON'T KNOW WHAT A PROBLEM IT IS, HOW CAN YOU SOLVE THE PROBLEM? CHAIRMAN, MAYOR PRO TEM, WE'LL BE HAPPY TO DO THAT.
WHEN I CAME ON BOARD, I BLASTED OUT MY MY EMAIL, MY CONTACT INFORMATION.
WE DO HAVE A CURRENT HOTLINE OPEN FOR FOLKS TO CALL ANYTIME THEY WANT.
I THINK SOME OF OUR CUSTOMERS ENJOY TALKING TO OUR ELECTED OFFICIALS.
THEY REALLY ENJOY YOUR SUPPORT AND YOUR ADVOCACY.
WITHIN FOUR HOURS, THE ISSUE WAS RESOLVED SO THEY KNOW WHO TO GO TO.
THEY ENJOY TALKING TO YOU, BUT WHEN YOU GET THOSE, PLEASE SEND THEM OVER TO US.
OUR TEAM IS EXTREMELY RESPONSIVE, BUT YES, WE'LL CONTINUE TO ADVERTISE THAT.
BUT WE ARE NOT ADMINISTRATION.
YES, SIR. I JUST WANT TO MAKE SURE THAT PEOPLE WHO LISTEN, YOU KNOW, WE NEED A MARKET OUT THERE.
IF YOU GOT A PROBLEM, YOU KNOW YOUR OFFICE IS OPEN.
YOU KNOW, CALL THE RIGHT OFFICE AND Y'ALL WILL TAKE CARE OF IT.
Y'ALL DON'T NEED TO CALL THE COUNCILMAN.
YOU KNOW, WHEN Y'ALL CAN TAKE CARE OF THE PROBLEM.
YOU KNOW, YOU KEEP CALLING US, AND WHEN THEY CALL US, WE FEEL LIKE YOU AIN'T DOING YOUR JOB.
SO LESS CALLS WE GET THE BETTER OFF WE ARE.
DEPUTY MAYOR PRO TEM, THANK YOU.
EVERYTHING PRETTY MUCH I'VE HEARD IN THE COMMENTS, BUT WHAT I.
WHAT I AM DOING AT THIS PARTICULAR TIME IS DOING ANOTHER STATEMENT OF SUPPORT FOR THIS TEAM.
AND I KNOW THAT YOU ALL ARE GOING THROUGH A LOT OF ROCKY ROADS, BUT I SIMPLY COMMEND ONCE AGAIN THE LEADERSHIP THAT CITY MANAGER BROADNAX HAS PUT IN PLACE.
SO BUT I APPRECIATE THAT AND I'M JUST BEING KIND OF LIGHTHEARTED WITH IT.
AND MAYBE THAT'S THE OTHER CONVERSATION WHERE WE'RE NOT GETTING THE DEVELOPMENT THAT WE NEED IN THE SOUTHERN SECTOR, AND THAT MAY BE ANOTHER BRIEFING, BUT RIGHT NOW I'M NOT GETTING THOSE CALLS.
GET OUT THE KITCHEN. BUT YOU'RE STILL COOKING, SO WE APPRECIATE IT.
THANKS. CHAIRMAN NARVAEZ, THANK YOU.
AND THIS IS THE FOLLOW UP ON WHAT THE CHAIRMAN JUST MENTIONED ABOUT DEVELOPERS AND FOLKS CALLING US.
YES, I HAVE NO ISSUE TALKING TO STAKEHOLDERS, CONSTITUENTS AND ALL OF THAT.
BUT THE HARD PART WITH THIS IS THAT WITH THESE ISSUES, THEN YOU'RE BRINGING US INTO ADMINISTRATION AND THE CHARTER AND OUR RULES STRICTLY SAY WE'RE NOT SUPPOSED TO BE IN ADMINISTRATION.
AND THEN ONCE THIS BOX OPENS, THEN WHAT HAPPENS IS ALL OF A SUDDEN, NOW WE'RE IN ADMINISTRATION AND YOU AROUND THE ENTIRE CITY, AND THAT CAN AND EVERY ENTITY THAT WE'RE A PART OF AND THAT CAN CAUSE ISSUES IN THE FUTURE AND PROBABLY WHY CERTAIN FOLKS ARE INVOLVED IN ADMINISTRATIVE DUTIES ON THE
[00:45:08]
FULL COUNCIL THAT SHOULDN'T BE INVOLVED IN ADMINISTRATIVE DUTIES.AND IT'S VERY IMPORTANT THAT WE GET US OUT OF BEFORE BEFORE IT GETS TOO DOWN THE RABBIT HOLE.
AND THEN IT'S JUST SOMETHING WE'RE NOT SUPPOSED TO BE DOING.
SO LIKE MY OFFICE GETS THE CALLS AND WE TRY TO JUST SEND IT TO YOU AND YOU HANDLE IT.
AND I DON'T KNOW IF YOU NOTICE, WE NEVER RESPOND TO ANYTHING ELSE.
AND THEY TRY TO KEEP CCING US ON EVERYTHING.
AND BUT I NEVER SAY A WORD BECAUSE IT'S NOT MY JOB TO BE AN ADMINISTRATIVE DUTIES.
THAT'S Y'ALL'S JOB. OUR JOB IS JUST TO SET THE POLICY AND HELP YOU GUYS WITH ADVICE AND THINGS.
SO PLEASE LISTEN TO WHAT HE'S SAYING THERE.
SO, YOU KNOW, LET'S BE CLEAR ON THAT.
THANK YOU FOR YOUR SUPPORT COUNCIL MEMBER.
JUST A QUICK ADDITIONAL REQUEST WHEN WE ARE BRIEFED ON DECEMBER THE 4TH, I WOULD LIKE TO HEAR A RECOMMENDATION FROM YOU, YOUR STAFF OR THE CONSULTANT AS TO HOW FREQUENTLY THE DEPARTMENT SHOULD REEVALUATE THEIR FEES SO THAT WE AREN'T EIGHT YEARS DOWN THE ROAD AND FIND THAT WE'VE DUG ANOTHER $22 MILLION HOLE.
COULD YOU DO THAT FOR US? ABSOLUTELY. COUNCIL MEMBER I CAN ANSWER IT NOW AS WELL, IF YOU'D LIKE.
I DIDN'T ANTICIPATE THAT YOU WOULD.
SO I'D LIKE TO SEE A DEFAULT THAT WE REEVALUATE EVERY YEAR.
SO CURRENTLY WE ADOPT THE NEW BUILDING AND FIRE RELATED CODES EVERY THREE YEARS.
AND SO WE GO THROUGH THE AMENDMENT PROCESS ON THAT REOCCURRING BASIS.
MY GOAL IS TO CONSOLIDATE ALL THE DEVELOPER FEES INTO ONE CHAPTER.
THANK YOU. NEXT ITEM IS BRIEFING ITEM C, KEVIN SPATH.
I THINK THAT IS BETWEEN DISTRICT ONE AND DISTRICT SIX.
I DON'T KNOW HOW Y'ALL SPLIT A GROCERY STORE.
OKAY. NATASHA, ARE YOU PULLING IT UP? THANK YOU. I'M KEVIN SPATH, ASSISTANT DIRECTOR WITH THE CITY'S OFFICE OF ECONOMIC DEVELOPMENT.
I MANAGE THE WHAT'S KNOWN AS THE CATALYTIC REAL ESTATE DEVELOPMENT TEAM WITHIN OUR OFFICE.
OF COURSE ROBIN BENTLEY IS OUR DIRECTOR.
AND WITH ME ALSO IS DORSEY CLARK, WHO MANAGES THE FORT WORTH AVENUE DISTRICT.
SO THIS BRIEFING HAS TWO MAJOR PARTS.
YOU KNOW, WE OUR TEAM DOES 1 OR 2 MAJOR PLAN AMENDMENTS OF TIF DISTRICTS EVERY YEAR.
SO THIS TIME AROUND, WE'VE BEEN WORKING ON A PLAN AMENDMENT FOR THE FORT WORTH AVENUE TIF DISTRICT.
ON OCTOBER 10TH, THE FORT WORTH AVENUE TIF DISTRICT BOARD DID REVIEW AND UNANIMOUSLY RECOMMEND APPROVAL OF THIS PLAN AMENDMENT, AS WELL AS THE FUNDING INCENTIVE FOR THE PROJECT THAT WE'LL ALSO DESCRIBE HERE.
NEXT SLIDE. SO AGAIN, WE'LL HIT WE'LL HIT THE PLAN AMENDMENT FIRST AND THEN HIT THE PROJECT SECOND.
JUST A LITTLE BIT OF BACKGROUND ON THE FORT WORTH AVENUE TIF DISTRICT.
WE ARE NOW IN YEAR 16 OF A 22 YEAR TERM.
NEXT SLIDE. JUST A COUPLE OF HIGH POINTS HERE.
THE TIF DISTRICT HAS ONLY MET ONLY REACHED ABOUT 31% OF ITS STATED GOAL IN TERMS OF CREATING RESIDENTIAL UNITS, AND ONLY 19.8% OF ITS STATED GOAL IN TERMS OF ATTRACTING NEW COMMERCIAL AND RETAIL DEVELOPMENT.
THE TIF DISTRICT HAS FUNDED FOUR PROJECTS TO DATE, AND THOSE INCLUDE SYLVAN 30 APARTMENT PROJECT OR MIXED USE PROJECT, AND THOSE THAT DOES HAVE AFFORDABLE UNITS IN IT.
[00:50:01]
AND ALSO DISTRICT WIDE FUNDS ARE BEING USED IN THE COLLECTIVE PROJECT, WHICH I BELIEVE THIS BODY SAW A FEW MONTHS BACK.NEXT SLIDE. SO HERE'S THE REASON FOR THIS.
THERE'S ONLY SIX YEARS REMAINING ON THE TIF DISTRICT TERM, AND ONLY $13.2 MILLION OF NPV OF THE BUDGET, OUT OF A TOTAL BUDGET OF $69.5 MILLION, ONLY $13.2 IS ACTUALLY BEEN GENERATED AND COLLECTED.
SO IN THE BOTTOM LINE IS THE TIF DISTRICT HAS BEEN UNDERPERFORMING.
IT'S ONLY ACHIEVED 19% OF ITS PLANNED BUDGET.
THE FIRST IS TO PROVIDE FUNDING CAPACITY FOR PROGRAMS ADDRESSING HOMEOWNER STABILIZATION, HOME REPAIR AND DISPLACEMENT MITIGATION, TO PROVIDE FUNDING CAPACITY TO SUPPORT DISTRICT WIDE INITIATIVES, INCLUDING SUBSTANTIAL PUBLIC INFRASTRUCTURE AND PUBLIC FACILITIES NEEDS SUCH AS A FIRE STATION, AND TO PROVIDE FUNDING CAPACITY FOR GAP FUNDING FOR REDEVELOPMENT PROJECTS OF VACANT AND UNDERUTILIZED PROPERTIES.
LOTS OF PROPERTIES ALONG WEST COMMERCE AND PROPERTIES ALL OVER THE DISTRICT ARE RIPENING FOR CONVERSION FROM INDUSTRIAL USES TO MIXED INCOME HOUSING AND SMALLER BOUTIQUE OFFICES.
NEXT SLIDE. HERE'S A MAP THAT SHOWS THE PINK IS THE EXISTING FORT WORTH AVENUE TIF DISTRICT.
THE BLUE IS THE PROPOSED AREA TO BE ADDED TO THE TIF DISTRICT.
IT'S 372 ACRES, PRIMARILY WELL, IT'S ALL WEST OF SYLVAN, SOUTH OF SINGLETON FOR THE MOST PART, BUT ALSO INCLUDING THE LAKE, LAKE WEST SHOPPING CENTER AND EVERYTHING BASICALLY BETWEEN SINGLETON AND COMMERCE WITH A FEW PROPERTIES SOUTH OF COMMERCE.
AND THEN ALSO YOU CAN SEE THE BLUE TRIANGLE AT HAMPTON AND FORT WORTH AVENUE.
THAT IS THE PROJECT TO FACILITATE.
SO THE CITY'S PARTICIPATION IS SUPPOSED TO DROP THIS YEAR TO 55%.
AND WE THINK BY EXPANDING THE DISTRICT BOUNDARY AND LEVELING THE CITY'S PARTICIPATION, THAT THIS PLAN AMENDMENT ATTEMPTS TO ALLOW SUFFICIENT TAX INCREMENT TO BE COLLECTED SO THAT THE TIF DISTRICT'S BUDGET CAPACITY IS MAXIMIZED AND THE TIF DISTRICT'S PLAN CAN BE MORE FULLY IMPLEMENTED BY THE END OF THE TERM, WHICH IS 2029.
NEXT SLIDE. SO OUR PROPOSED PLAN AMENDMENT, WE'RE TRYING TO MARRY UP AND ALIGN THE OBJECTIVES OF THE TIF DISTRICT WITH THE BUDGET CATEGORIES.
THIS AGAIN WOULD PROVIDE BUDGET CAPACITY FOR PROGRAMS ADMINISTERED BY THE CITY'S HOUSING DEPARTMENT.
SO WE'RE WE'RE ADDING MORE MEAT TO THE BONE IN THE PLAN TO BE ABLE TO USE SOME OF THE TAX INCREMENT TO HELP THE HOUSING DEPARTMENT FUND THEIR HOMEOWNER STABILIZATION, HOME REPAIR, AND DISPLACEMENT MITIGATION PROGRAMS. NEXT SLIDE.
THE PLAN AMENDMENT WILL ALSO EXPRESSLY ACKNOWLEDGE THAT TIF DISTRICT FUNDS CAN BE USED IN OR OUT OF THE DISTRICT BOUNDARY IF THOSE PROPOSED AMENDMENTS BENEFIT THE ZONE FOR THE PURPOSES OF AFFORDABLE HOUSING, AREAS OF PUBLIC ASSEMBLY, WHICH ARE PARKS AND ALSO PUBLIC INFRASTRUCTURE.
THE KEY POINT HERE ON THIS THIRD BULLET IS THAT THE PROPOSED PLAN AMENDMENT SHIFTS THE BUDGET CAPACITY AMONG BUDGET CATEGORIES, BUT DOES NOT ACTUALLY CHANGE OR INCREASE THE TOTAL DISTRICT BUDGET.
THIS IS A CHART SHOWING THE THE BUDGET CATEGORIES.
THE RED IS WHAT'S BEING PROPOSED TO CHANGE VERSUS THE BLACK WHICH IS THE EXISTING.
THE KEY POINT HERE IS THE AFFORDABLE HOUSING BUDGET CATEGORY.
THE SECOND ONE DOWN CURRENTLY HAS $5 MILLION IN BUDGET CAPACITY.
WE'RE PROPOSING TO RAISE THAT TO $15 MILLION FOR THE PURPOSES I JUST DESCRIBED.
NEXT SLIDE. SO AGAIN THIS IS A RECAP OF THE RECOMMENDATION ON THE PLAN AMENDMENT ITSELF.
TO NUMBER ONE INCREASE THE BOUNDARY BY 372 ACRES.
NUMBER TWO, MAINTAIN THE CITY'S 70% PARTICIPATION THROUGH THE REMAINING SIX YEARS OF THE TERM.
AND NUMBER THREE, TO REDEFINE AND REALLOCATE BUDGET CATEGORIES.
SO NOW WE'LL MOVE TO THE NEXT SLIDE TO TALK ABOUT THE PROJECT.
[00:55:10]
THE SOUTHERN SECTOR.THE PROPOSED PROJECT AND THE PROPOSED DEVELOPER IS VISTA PROPERTY COMPANY.
THEY HAVE AN ESTABLISHED AND PROVEN TRACK RECORD, REDEVELOPING VACANT AND UNDERUTILIZED RETAIL PROPERTIES AND ALSO DEALING WITH THE CITY AND ECONOMIC DEVELOPMENT PARTNERSHIPS. AND IN FACT, THIS IS THE SAME DEVELOPER THAT RECENTLY COMPLETED A PARTNERSHIP WITH THE OFFICE OF ECONOMIC DEVELOPMENT TO REDEVELOP AND REVITALIZE THE SHOPPING CENTER AT BUCKNER AND PEAVEY, AND WAS ABLE TO LAND THE RIO GRANDE LATIN GROCER TO BACKFILL THAT VACANT BUILDING. ALSO, I WOULD MENTION THAT THE FORT WORTH AVENUE TIF DISTRICT DID REVIEW AND RECOMMEND APPROVAL OF THE PROPOSED SUBSIDY FOR THIS PROJECT.
NEXT SLIDE. JUST AS JUST THE LOCATION.
AGAIN, IT'S WEDGED IN BETWEEN THE HAMPDEN, REDMOND AND FORT WORTH AVENUE.
THE PROPERTY WAS REZONED BY THE CITY COUNCIL IN MARCH OF THIS YEAR.
SO YOU MAY RECALL THAT COMING ACROSS YOUR AGENDA.
A COUPLE OF PICTURES OF THE EXISTING CONDITIONS.
IT HAS ALMOST 37,000FT² OF OBSOLETE RETAIL BUILDINGS.
ALL OF THESE STRUCTURES WILL BE DEMOLISHED, REMEDIATED IF NECESSARY.
DEMOLISHED WITH ALL NEW CONSTRUCTION PROPOSED WITH THIS PROJECT.
NEXT SLIDE. HERE'S A QUICK SUMMARY OF THE PROJECT.
THE FIRST BUILDING TO BE CONSTRUCTED BY THE DEVELOPER WILL BE APPROXIMATELY 23,350FT², A ONE BUILDING AND THAT WILL BE BUILD TO SUIT FOR SPROUTS FARMERS MARKET GROCER.
THE SECOND BUILDING WILL ALSO BE CONSTRUCTED BY THE DEVELOPER, A SMALLER 6,700 SQUARE FOOT SPECULATIVE MULTI-TENANT BUILDING, AND A THIRD BUILDING THAT WILL BE CONSTRUCTED AND OWNED BY OTHERS PURSUANT TO A GROUND LEASE WITH THE DEVELOPER.
THERE WILL ALSO BE NEW, PUBLICLY ACCESSIBLE GREEN SPACE APPROXIMATELY 3,500FT², AS WELL AS VARIOUS SITE IMPROVEMENTS INCLUDING GRADING, PAVING, UTILITIES, PARKING IMPROVEMENTS, IRRIGATION, LANDSCAPE IMPROVEMENTS, LIGHTING, PERIMETER STREETSCAPE IMPROVEMENTS FOR A TOTAL PROJECT COST AT ESTIMATED OF $21.2 MILLION.
NEXT SLIDE. THE PROJECT WAS REVIEWED BY THE CITY'S URBAN DESIGN PEER REVIEW PANEL AND MADE A NUMBER OF RECOMMENDATIONS, MOSTLY AIMED AT IMPROVING THE SITE'S WALKABILITY, HOW IT DEALS WITH PEDESTRIAN PATHWAYS, AND HOW IT ENHANCES THE DESIGN FOR THE OPEN SPACE THAT WILL BE PROVIDED.
THE DEVELOPER HAS MADE CHANGES TO ACCOMMODATE ALL OF THOSE RECOMMENDATIONS.
NEXT SLIDE. A COUPLE OF RENDERINGS HERE.
YOU CAN SEE THE PROPOSED FAÇADE OF THE BUILDING THAT WILL HAVE THE SPROUTS.
NEXT SLIDE. THIS IS THE PROPOSED SITE PLAN.
MUCH OF THE SITE PLAN ACTUALLY IS REGULATED BY THE ZONING.
AND SO THE ZONING DOES DICTATE VERY SPECIFIC TREATMENTS IN TERMS OF PERMEABLE PAVERS WHERE THE HOW BIG THE MAXIMUM FRONT YARD CAN BE FOR A SPECIFIC BUILDING IF THE OPEN SPACE IS PROVIDED, WHICH IT IS.
THE PLACEMENT OF THE DRIVE IN OR DRIVE THROUGH FOR ANY BUILDINGS, A MINIMUM OF 30% OF STREET FACING FACADES NEED TO BE TRANSPARENT OR HAVE PAINTED ART. PEDESTRIAN PATHWAYS MUST BE CLEARLY MARKED AND DIRECTLY CONNECTING TO THE PERIMETER SIDEWALKS, AND LOTS OF ENHANCED LANDSCAPING AND MORE TREE PLANTING THAN WHAT IS REQUIRED BY THE CITY'S CODE.
NEXT SLIDE. HERE'S A ZOOM IN ON THE OPEN SPACE.
SO JUST TO REMIND THE GROUP THAT THE ZONING THAT WAS APPROVED BY THE CITY COUNCIL ACTUALLY REQUIRES THIS OPEN SPACE TO BE PROVIDED, WHICH LIMITS THE SIZE OF THE BUILDING THAT THE DEVELOPER CAN ACTUALLY BUILD.
AND SO THE PANEL, THE PEER REVIEW PANEL DID MAKE RECOMMENDATIONS ABOUT HOW TO ENHANCE THE DESIGN.
AND YOU CAN SEE IT WILL HAVE A SHADE STRUCTURE.
SO THERE ARE SPECIFIC SITE ACCESSIBILITY IMPROVEMENTS AND STORM WATER IMPROVEMENTS.
I DID MENTION IT WILL HAVE BIOSWALES IN THE PARKING LOT, PERVIOUS PAVERS AND ENHANCED SIDEWALKS.
[01:00:04]
NEXT SLIDE. THIS IS THE BUDGET TOTAL COST AGAIN OF $21.2 MILLION.SO THE EQUITY FROM THE DEVELOPER WOULD BE A TOTAL OF THE DEVELOPER EQUITY LINE.
YOU SEE THERE AT $3.8 MILLION PLUS THE EQUITY IN THE FORM OF THE LAND CONTRIBUTION.
SO THE TOTAL EQUITY IN THE PROJECT WILL BE $6.5 MILLION, WHICH IS ABOUT 31% OF THE CAPITAL STACK A SENIOR BANK LOAN FOR $8.3 MILLION AND THEN THE CITY SUBSIDY THAT WE'LL TALK ABOUT HERE OF $6.3 MILLION MAKES UP THE TOTAL CAPITAL STACK.
NEXT SLIDE. SO THE CITY SUBSIDY THAT WE HAVE REACHED AGREEMENT IN A LETTER OF INTENT WITH THE DEVELOPER FOR IS NOT TO EXCEED OF $6.3 MILLION. THE CITY SUBSIDY HAS ACTUALLY TWO PIECES.
AND THAT IS DISCRETIONARY TO COUNCIL DISTRICT ONE.
AND SO THE COUNCIL MEMBER IS COMMITTED TO PUTTING THOSE DISCRETIONARY FUNDS INTO THE PROJECT.
THE SECOND PART OF THE CITY SUBSIDY IS A TIF SUBSIDY OF NOT TO EXCEED $5,124,811.
AND YOU CAN SEE THE ELIGIBLE CATEGORIES THROUGH THE DISTRICTS BUDGET CATEGORIES.
SOME OF IT WILL BE IN DEMOLITION AND ENVIRONMENTAL REMEDIATION, SOME OF IT WILL BE IN THE PUBLIC INFRASTRUCTURE IMPROVEMENTS AND THE OPEN SPACE, AND SOME OF IT WILL BE A GRANT FROM THE TIF DISTRICT. NEXT SLIDE.
SO AS USUAL, THERE ARE LOTS AND LOTS OF CONDITIONS AND DETAILED TERMS ADDED TO THE CITY INCENTIVE THAT WILL BE BAKED INTO THE DEVELOPMENT AGREEMENT. ON THIS SLIDE, I'LL BRING YOUR ATTENTION TO THE FINAL BULLET, WHICH IS THAT THE DEVELOPER WILL BE REQUIRED TO EXECUTE A 15 YEAR LEASE TO SECURE THE SPROUTS FARMERS MARKET GROCERY STORE IN BUILDING ONE.
LOTS MORE OTHER CONDITIONS, MOST OF WHICH ARE STANDARD.
WE HAVE NEGOTIATED A MINIMUM OF 40% PARTICIPATION WITH THIS PROJECT AND THIS DEVELOPER.
THE FIRST BULLET HERE FOR ALL PERMANENT EMPLOYMENT OPPORTUNITIES CREATED BY THE OPERATION OF THE SPROUTS GROCERY STORE THE DEVELOPER WILL BE REQUIRED TO SUBMIT A WRITTEN PLAN TO THE OFFICE OF ECONOMIC DEVELOPMENT, DESCRIBING HOW THE DEVELOPER AND THE SPROUTS WILL USE AND DOCUMENT COMMERCIALLY REASONABLE EFFORTS TO RECRUIT AND HIRE RESIDENTS OF THE CITY OF DALLAS, AGAIN FOR A GOAL OF 40% DALLAS RESIDENTS.
NEXT SLIDE. SO THAT BRINGS US TO SUMMARY OF OUR RECOMMENDATION ON THE CITY SUBSIDY.
AGAIN, IT'S A NOT TO EXCEED OF $6.3 MILLION, WITH A PORTION OF THAT BEING AN ECONOMIC DEVELOPMENT GRANT FUNDED WITH COUNCIL DISTRICT ONE DISCRETIONARY BOND FUNDS AND A TIF SUBSIDY IN AN AMOUNT NOT TO EXCEED $5,124,811.
NEXT SLIDE. AND THIS WILL BE OUR FINAL SLIDE.
SO JUST AGAIN, THE TIF BOARD DID REVIEW AND UNANIMOUSLY RECOMMEND APPROVAL ON OCTOBER 10TH.
OCTOBER 25TH THE COUNCIL DID AUTHORIZE A PUBLIC HEARING TO BE HELD ON NOVEMBER 8TH.
AND SO THIS WEDNESDAY ON NOVEMBER 8TH, THE COUNCIL WILL BE ASKED TO HOLD A PUBLIC HEARING ABOUT THE PROPOSED AMENDMENTS AND AT THE CLOSE OF THAT PUBLIC HEARING TO POTENTIALLY APPROVE THE RESOLUTION THAT AUTHORIZES THE CITY SUBSIDY FOR THE PROJECT.
WITH THAT, I'LL STOP AND TAKE QUESTIONS.
THANK YOU, MAYOR PRO TEM, AND APPRECIATE THE UPDATE.
GREAT JOB, AS ALWAYS TO OUR HARD WORKING ECONOMIC DEVELOPMENT TEAM.
A COUPLE OF QUESTIONS ON THE OVERALL TIF ITSELF.
OBVIOUSLY SUPPORTIVE OF THE EXPANSION AND AMENDMENTS TO THE USES OF THE FUNDS.
ENVIRONMENTAL REMEDIATION I THOUGHT YOU MENTIONED IT IS MENTIONED AND IT'S ACTUALLY A LINE ITEM.
CAN THAT INCLUDE LIKE ENHANCEMENTS TO CREEK AND LIKE THE EROSION CONTROL ISSUES?
[01:05:07]
NO. UNDER STATE LAW, THAT IS IN REFERENCE TO BUILDINGS LIKE ASBESTOS AND LEAD BASED PAINT AND BUT STORM WATER IMPROVEMENTS ARE CONSIDERED PUBLIC IMPROVEMENTS.THAT'S WHAT I MEANT TO SAY, STORM WATER.
OKAY. SO STORM WATER CAN BE USED.
IT CAN TRANSLATE OVER TO THE CREEK ENHANCEMENTS.
I WAS LOOKING AT ONE THING AND THINKING OF ANOTHER.
AND THEN ON THE ACTUAL SPROUTS PROJECT, TWO THINGS.
ONE IS I SEE MY FRIEND COLTON'S HERE, AND WE HAD SPOKEN EARLIER.
ONE OF THE REQUESTS BY THE NEIGHBORS AS PART OF THIS TIF PACKAGE WAS TO HAVE LOCALLY SOURCED ARTISTS WORK ON THE STAIRCASE FROM FORT WORTH AVENUE INTO THE PEDESTRIAN IMPROVEMENTS IN THE DEVELOPMENT.
MY UNDERSTANDING FROM THE DEVELOPER IS THAT IS, THAT'S ACCEPTABLE.
AND THE OTHER THING IS SOMETHING I JUST NOTICED NOW ON SLIDE 20, THE OPEN SPACE, THE ONE OF THE THINGS THAT CAME OUT OF THE SURVEY THAT WE DID, WHICH HAD LIKE CLOSE TO A THOUSAND PEOPLE, IS THAT THEY WANTED A CLEAR, OPEN SPACE FOR KIDS TO RUN AROUND AND PLAY IN.
I THINK THIS IS VERY BEAUTIFUL HERE, BUT I THINK IT KIND OF TAKES AWAY FROM THAT PURPOSE.
DO YOU UNDERSTAND WHAT I'M SAYING? I THINK SO. TWO THINGS I WOULD SAY IS, NUMBER ONE, THE CITY'S URBAN DESIGN PEER REVIEW PANEL EMPHASIZED THE SHADE ELEMENT AND THAT IF IT WASN'T SHADED, IT WOULDN'T BE HEAVILY UTILIZED.
FOR PLAY AREAS, BUT MAYBE THERE'S A HAPPY MEDIUM SOMEWHERE WHERE WE CAN FIGURE THAT OUT.
I THINK SO I ALWAYS WONDER IF FOLKS WHO DESIGN THIS HAVE KIDS BECAUSE LIKE [INAUDIBLE] AND YOU SAY WHAT YOU WANT ABOUT SYLVAN AND 30S DESIGN, BUT [INAUDIBLE] HAS A BIG GRASSY FIELD IN FRONT OF IT WITH NO SHADE, AND THERE ARE HUNDREDS OF KIDS THERE EVERY WEEKEND.
AND THAT'S ONE OF THE REASONS WHY THE SURVEY WAS SO SPECIFIC OF WE NEED A PLACE, WHETHER THERE'S A PLAYGROUND EQUIPMENT HERE OR IT'S A WIDE OPEN FIELD WITH SOME TREES ON THE PERIMETER THAT IS THAT WAS LOUD AND CLEAR FROM MY NEIGHBORS THAT THEY WANT THAT AT THIS LOCATION, SO I'LL LEAVE IT AT THAT.
ANYWAY, APPRECIATE WE'D LIKE TO HAVE MY COLLEAGUES SUPPORT ON THIS PORTION OF IT.
THANK YOU. COUNCILMAN RIDLEY, THANK YOU SIR.
FIRST, THANK YOU, MR. CHAIR. ON WHEN DISCUSSING SLIDE FIVE, YOU INDICATED THAT THIS TIF HAS UNDERPERFORMED ITS EXPECTATIONS AT ONLY 19% OF THE BUDGET, WHICH I TAKE IT TO MEAN THAT IT WAS ANTICIPATED THAT $65 MILLION IN INCREMENTAL REVENUE WOULD BE RAISED BY THIS POINT IN TIME. AND SO I'M FACED WITH THE QUESTION OF WHY IT IS UNDERPERFORMED TO THIS EXTENT.
DO YOU HAVE A THEORY ON THAT? SURE. DORSEY CLARK.
I WENT BACK AND LOOKED AT THE 2006 PROJECTIONS, AND THEY WERE VERY AGGRESSIVE AS FAR AS NOT JUST DEPRECIATION, BUT WHAT DEVELOPMENT WOULD COME ON BOARD REALLY EARLY.
SO I DID LOOK TO DATE WHERE WE HAVE IN ACTUALITY 13.2 NPV.
THE 2006 PROJECTIONS ASSUMED THAT WE WOULD BE AT 49.4% TODAY.
OKAY. AND SO WILL YOU BE PRESENTING MORE REALISTIC ASSUMPTIONS ON THIS, PARTICULARLY THE NEW PORTION AFTER THE BOUNDARY AMENDMENT? IN ORDER TO KEEP THE BUDGET AS IT IS THE EVEN WITH THE CHANGE AND KEEPING THE 70% PARTICIPATION IN
[01:10:07]
GROWING, WE'RE STILL HAVING TO BE PRETTY AGGRESSIVE ON THE PROJECTIONS TO GET TO THAT TOTAL BUDGET.SO THE LAST THING WE WANTED TO DO WAS LOWER THE BUDGET AND NOT GET TO DO THE THINGS THAT WE KNOW THAT THE DISTRICT NEEDS IF AND WHEN WE'RE ABLE TO COLLECT THAT. SO THEY'RE AGGRESSIVE STILL THE PROJECTIONS.
OKAY NOW THE 70% PARTICIPATION RATE THAT YOU'RE RECOMMENDING, THAT MEANS THAT THE CITY COLLECTS ONLY 30% OF THE INCREMENTAL REVENUE FROM DEVELOPMENT, AND THE OTHER 70% GOES TO THE TIF DISTRICT.
OKAY. AND THE BLUE AREA THAT YOU PROPOSE BE ADDED, HOW DID YOU ARRIVE AT THAT PARTICULAR BOUNDARY AND THAT AREA OF 372 ACRES? WHAT WERE YOUR CRITERIA? A LOT OF DRIVING, JUST TRYING TO BALANCE, LOOKING AT WHAT IS NATURALLY OCCURRING ALONG SINGLETON AND TRYING TO HARNESS SOME OF THAT AND LOOKING AT YOU CAN SEE IN SOME OF THE PICTURES YOU HAVE THIS KIND OF NATURALLY DEVELOPING CREATION OF NEW HOMES, NEW MULTIFAMILY, NEXT TO HOMES, WHERE YOU MIGHT WANT TO WORK ON SOME HOMEOWNERS STABILIZATION.
SO AS MUCH OF THAT ADDITIONAL 372 ACRES CURRENTLY VACANT OR ABANDONED BUILDINGS.
YES, A LOT IS PRIMED FOR DEVELOPMENT NOW.
SO ON SLIDE 11, I'M NOT SURE I FULLY UNDERSTOOD WHAT THE NUMBERS IN RED INDICATE.
THE NOTE SAYS CHANGES FROM ORIGINAL CURRENT BUDGET SHOWN IN RED.
CURRENTLY $37 MILLION THREE TIMES AS MUCH.
CAN YOU EXPLAIN THAT? YEAH. SO THE RED NUMBERS ARE WHAT'S EXISTING.
THE ALLOCATION OF THE BUDGET IN THE EXISTING PLAN FOR THE DISTRICT.
THE BLACK IS WHAT WE WOULD BE PROPOSING TO CHANGE IT TO.
SO YOU CAN SEE THAT THE TOTAL $69 MILLION DOESN'T CHANGE AT THE BOTTOM.
WE'RE PROPOSING TO SHIFT THE ALLOCATION OF THAT $69 MILLION DIFFERENTLY THAN IT IS CURRENTLY.
OKAY, SO WHEN YOU SAY AND READ THAT CURRENTLY PUBLIC INFRASTRUCTURE IMPROVEMENTS ARE BUDGETED AT $37 MILLION, YOU WANT TO REDUCE THAT TO $12 MILLION.
THAT'S QUITE AN IMBALANCE IN MY MIND.
IS $12 MILLION SUFFICIENT FOR THE NEEDED PUBLIC INFRASTRUCTURE IMPROVEMENTS, PARTICULARLY WITH THE EXPANSION OF AREA? YES, WE THINK SO.
I WOULD ALSO ADD THAT THESE ARE THE ALLOCATIONS IN A BUDGET ARE NOT ARE THERE'S WIGGLE ROOM AND WE HAVE THE ABILITY TO MAKE ADJUSTMENTS AND ALSO BRING BACK IF WE WERE FACED WITH A HUGE UNANTICIPATED INFRASTRUCTURE PROJECT OF $37 MILLION AND WE CAN COME BACK TO THE TO THE TIF BOARD AND THE COUNCIL.
SO THIS WOULD HAVE HAD A LANDSCAPE PLAN, OR AT LEAST A DEVELOPMENT PLAN APPROVED BY THE PLAN COMMISSION AND COUNCIL TO CHANGE THE LANDSCAPED AREA.
WOULDN'T YOU HAVE TO GO BACK THROUGH THAT PROCESS AGAIN? WE'RE NOT PROPOSING TO CHANGE THE LANDSCAPE AREA AS IT WAS APPROVED CONCEPTUALLY WITH THE PD.
WHAT WE'RE PROPOSING TO DO IS FILL THE GAP CREATED BY THE REQUIREMENT FOR THE DEVELOPER TO PROVIDE THAT ADDITIONAL STUFF, IF THAT MAKES SENSE. SO WHAT YOU'VE ILLUSTRATED ON SLIDE 20 IS WHAT WAS APPROVED BY THE COUNCIL AS PART OF THE REZONING.
RIGHT. IT TOOK THE ZONING REQUIREMENT AND THIS KIND OF JUST.
YES. THERE'S NOTHING THAT IS DIFFERENT THAN WHAT WAS APPROVED BY ZONING HERE.
THIS IS JUST KIND OF FILLING IN THE BLANKS THERE.
OKAY, SO YOU DON'T PROPOSE TO GO BACK TO THE READ THROUGH THE REZONING PROCESS TO CHANGE? I'M SURE THAT'S THE LAST THING THAT COLTON WOULD WANT TO DO.
[01:15:02]
THANK YOU, MR. CHAIR.I'LL JUST START OFF BY JUST GIVING A QUICK, BRIEF HISTORY.
SO FORT WORTH AVENUE TIF DOES LIE ALMOST 50/50 BETWEEN DISTRICT ONE AND DISTRICT SIX AROUND I-30.
AND I HAD STARTED BY ASKING FOR AN EXPANSION, NOT AN EXPANSION, BUT A NEW TIF FOR WEST DALLAS AND IN ORDER TO MAKE CHANGES HAPPEN THAT WE DESPERATELY NEED IN OTHER PARTS OF WEST DALLAS.
AND IT CAME BACK THAT THE CAPACITY FOR US AS A CITY THAT WE HAD ALREADY HIT OUR THRESHOLD THAT WE HAD SET OR SO RIGHT THERE, THAT AN EXPANSION, I MEAN, A NEW TIF, JUST IT'D BE LIKE THREE BLOCKS OR SOMETHING.
SO IT WOULDN'T WORK FOR ACTUALLY BRINGING IN THE DOLLARS THAT WE NEED TO CHANGE AN AREA.
SO I ALSO THEN TOOK THE IDEA OF WHAT OUR CHAIRMAN HAD DONE MANY TIMES AND TO DO A BARBELL TIF, AND THAT WASN'T GOING TO WORK EITHER, BECAUSE AGAIN, OUR CAPACITY HAS BEEN HIT.
BUT WHERE WE ARE AT CAPACITY, WE'RE NOT AT CAPACITY.
TECHNICALLY. WHEN YOU LOOK INSIDE OF THE TIFS AND THE TIF WAS VERY UNDERFUNDED AND WHICH IS WHAT YOU'RE SEEING, AND THERE ARE MAJOR INFRASTRUCTURE NEEDS THAT WERE KIND OF MENTIONED, STREET REPAIR, A FIRE STATION.
AND SO THEN SINCE I'VE DONE IT ONCE, WE'VE GOT TO DO IT AGAIN.
IT WOULD BENEFIT. AND SO THIS IS A WAY TO DO IT.
BUT WE'VE GOT TO GET THE ALLOCATIONS CORRECT, WHICH IS WHERE YOU'RE SEEING THE DOLLARS CHANGE.
BUT THEN THE EXPANSION GETS US THE FULL FUNDING OF THE TIF.
AND AT THE SAME TIME IT EXPIRES AT THE SAME TIME AS THE TIF ORIGINALLY WOULD.
IT WAS BEST TO KEEP IT ALL IN ONE, AND I THINK IT'S SIX YEARS FROM NOW.
STILL, THE FORT WORTH AVENUE TIF AND THE EXPANSION WILL ALL EXPIRE AT THE VERY SAME TIME, WHICH WILL THEN BRING US TO A NEW SET OF CAPACITY FOR SOMEWHERE ELSE, WHICH I WON'T GO INTO WHERE I'D LIKE IT, BECAUSE IT WILL BE A BODY'S DECISION.
AND WE'VE GOT TO LOOK AT THE ENTIRE CITY TO MAKE SURE IT WORKS RIGHT.
AND SO WITH ALL OF THIS BEING DONE, THIS IS WHERE YOU'RE SEEING THESE DOLLARS.
AND I PROBABLY SHOULD HAVE GONE FIRST TO EXPLAIN SOME OF THIS.
BUT THIS WAS ALL OF THIS WAS THE IDEA OF A COUNCIL MEMBER WHO WAS TRYING TO GET THE STREETS REPAIRED, THE FIRE STATION, AND A FEW OTHER THINGS FOR WHAT'S ALREADY ADJACENT TO OR INSIDE OF THE TIF.
BUT WE DIDN'T HAVE THE FUNDING FOR IT IN THERE.
AND BY DOING THIS, THE DEVELOPER, THANK YOU ALL FOR BEING WITH INSIDE THE TIF DISTRICT.
AND AND THIS WILL HELP US FOR THE EXPANSION AREA BECAUSE WE HAD THOUGHT OF A DIFFERENT ONE THAT WOULD BE THE RIGHT EXPAND THE RIGHT FUNDING, START THE CATALYST.
I CAN TELL YOU THAT BEING SOMEBODY WHO REPRESENTS WEST DALLAS AND NORTHWEST DALLAS, I HAVE TONS OF POCKETS, RIGHT, OF AREAS THAT I CAN'T GET THE DEVELOPMENT OR WE COULDN'T GET THE DEVELOPMENT.
AND AS I LOOK AT THE REST OF THE CITY AND THIS IS THE HARD PART, IS YOU GET YOU'RE HERE LONGER AND THEN YOU LEARN SO MUCH AND THEN IT'S LIKE, OH, NOW, NOW YOU KNOW, YOU'RE IN YOUR LAST TERM. AND IT'S LIKE ALL THAT KNOWLEDGE IS LIKE, I GOT TO USE IT, RIGHT.
AND ME AND THE CHAIRMAN WE'VE BEEN TALKING ABOUT IT AS WELL, IS DEVELOPERS DON'T WANT TO COME TO CERTAIN PARTS OF THE CITY, NOT BECAUSE OF THE LOCATION AND WHERE THE PEOPLE THAT ARE THERE OR THE INCOME LEVELS, WHICH IS WHAT GETS PERPETUATED ACROSS WHAT IT IS, IS THAT THE INFRASTRUCTURE IS NOT THERE.
AND WE AS A CITY REQUIRE THOSE DEVELOPERS TO PAY FOR THAT INFRASTRUCTURE.
[01:20:01]
THAT'S A LOT OF GAS, THAT'S A LOT OF ELECTRICITY.STREET SIDEWALKS, YOU KNOW, YOU NAME IT, IT'S ALL GOT TO BE REDONE.
AND THAT'S PROBABLY AN ALL, YOU KNOW, WELL OVER A $20-22 MILLION PROJECT.
AND I'M MAKING UP THAT NUMBER BECAUSE I HAVE NO IDEA.
BUT IT WOULD NOT BE, YOU KNOW, WHAT IS AVERAGE FOR THE MARKET RATE FOR THE CITY.
AND, YOU KNOW, AND THEN YOU ADD ON AND YOU ADD ON.
AND SO IF IT'S ON THE DEVELOPERS BACK, WHICH IS A GOOD IDEA FOR MOST DEVELOPMENTS, IT'S NOT FOR AREAS THAT ARE UNDER HAVE BEEN UNDER HAVE BEEN DISENFRANCHISED.
I MEAN, DIVESTED IS THE WORD I WAS MEANING DIVESTED ACROSS THE ENTIRE CITY.
SO BY DOING THIS, THIS WILL HELP GET SOME AREAS THAT HAVE BEEN DIVESTED, BUT ALSO SOME AREAS THAT WE ARE DESPERATELY TRYING TO ELIMINATE AND GET RID OF INDUSTRIAL, BECAUSE NOW IT'S SURROUNDED BY RESIDENTIAL THAT WE CAN GET THESE THINGS TO MOVE ON.
THESE FOLKS THAT ARE THERE DO WANT TO MOVE.
THEY WANT TO LEAVE OR IT'S ALL BEEN BOUGHT UP.
BUT NOBODY CAN DEVELOP BECAUSE OF THE WHAT IT WOULD ACTUALLY COST IS NOT AFFORDABLE.
THAT'S JUST NOT JUST THE WORK.
IT'S ALSO HOW DO YOU GET THE FUNDS.
AND SO THOSE ARE THE THINGS THAT PEOPLE ARE LOOKING AT.
AND SO WE WANT WE DESPERATELY NEED THE GROCERY STORE.
AND EVEN THOUGH IT'S NOT IN SIX, IT'S IN ONE.
I'VE BEEN A BIG PROPONENT OF THE GROCERY STORE AND I LIKE THE ELEMENTS THAT CAME.
AND I AGREE WITH MR. WEST ABOUT THE PLAY AREA, BUT I THINK THAT THAT CAN BE MASSAGED OUT, I HOPE, WITHOUT HAVING TO REDO THE ZONING CASE, BECAUSE WE DON'T WANT TO DO THAT.
I DON'T WANT TO DO THAT BECAUSE WE'RE THERE.
WE WANT TO GET THIS THING STARTED FASTER BECAUSE WE NEED THAT GROCERY STORE AS SOON AS POSSIBLE.
BUT AT THE SAME TIME, I'M ALSO NOT GOING TO I'M NOT GOING TO BE OVER BIG ON THE RUNNING AROUND, BECAUSE I STILL WANT THOSE DISTRICT ONE PEOPLE HANGING OUT AT [INAUDIBLE] AND THE SYLVAN 30 PROJECT, BECAUSE WE DON'T WANT THAT TO NOT DO WELL, BECAUSE THE CLIENTELE IS PROBABLY REALLY MORE FROM SOUTH OF 30 THAN THEY ARE FROM NORTH OF 30.
SO AND ALL IN ALL, AND THIS IS I DEFINITELY SUPPORT THIS.
BUT IT IS EXACTLY WHAT I WAS THINKING AS FAR AS WHAT NEEDED TO BE DONE.
SO THANK YOU TO OUR ECONOMIC DEVELOPMENT STAFF FOR THINKING VERY DIFFERENTLY AND OUTSIDE OF THE BOX, BUT INSIDE OF THE TIF BOX, RIGHT, IN ORDER TO FIX IT AND MASSAGE IT. AND I THINK THAT'S WHAT I HOPE THAT YOU ALL CAN DO ON OTHER TIFS THAT ARE UNDERPERFORMING IS LET'S RETHINK THEM.
LET'S SEE WHAT WE THOUGHT WAS RIGHT 20 YEARS AGO, 25 YEARS AGO IS NOT EVEN CLOSE TO THE MENTALITY OF WHAT IS ACTUALLY HAPPENING WITH DEVELOPMENTS AND WHAT WE, EVEN AS A BODY HAVE DONE.
THERE WAS NO RACIAL EQUITY PLAN BACK THEN.
NONE OF THOSE EXISTED WHEN THE VAST MAJORITY OF OUR TIFS WERE CREATED.
AND SO THAT'S ALSO ANOTHER REASON WHY THEY'RE NOT WORKING.
AND THAT'S NOT THE JOURNEY WE ALL ENDED UP TAKING, BUT THE JOURNEY WE'RE ON IS GOING TO GET US IT'S GOTTEN US A MUCH BETTER DEVELOPMENT, A BETTER GROCERY STORE AND BETTER ELEMENTS AND WILL HELP EVERYONE AND ESPECIALLY THAT NEIGHBORHOOD, WHICH IS A VERY GOOD MIXTURE OF DIFFERENT PEOPLE AND DIFFERENT RACES AND ETHNICITIES, RELIGIONS.
AND WE'RE AN ECLECTIC AREA THAT'S KIND OF, YOU KNOW, IT'S REALLY INTERESTING TO DRIVE AROUND BECAUSE WE'RE NOT SO COOKIE BUTTER, WHAT DO YOU CALL IT WHERE THEY'RE ALL LIKE COOKIE.
COOKIE CUTTER THINKING WHAT'S COOKIE BUTTER.
AND SO I THINK THAT THIS IS REALLY GOOD.
AND I HAVE TO SAY THAT THEY PROBABLY WOULDN'T HAVE COME IF IT WASN'T FOR MR. WEST'S AND STAFF'S VISION THEN NOT FROM ECO DEV, BUT FROM THE OFFICE OF HOMELESS SOLUTIONS TO TAKE THE AND BUY THE MIRAMAR HOTEL TO HELP HELP OUR FOLKS THAT ARE NEEDING A SECOND CHANCE, BUT NOT AT A AS A SECOND LIKE THE
[01:25:03]
IN BETWEEN. IT'S NOT A SHELTER, RIGHT? AND IT'S NOT PERMANENT HOUSING, BUT A PLACE IN BETWEEN THAT PEOPLE DESPERATELY NEED SO THAT THEY DON'T FALL BACK INTO HOMELESSNESS.THE CRIME RATE HAS JUST REDUCED DRASTICALLY IN THE AREA.
IT'S NOT THAT UP THE STREET FROM MY HOUSE WHERE I LIVE.
SO, YOU KNOW, I'M LIVING EXACTLY IN THIS AREA.
AND SO I KNOW WHAT IT'S HELPED.
AND BECAUSE OF THAT, WE'RE GETTING BETTER COMPANIES, BETTER DEVELOPMENTS.
PEOPLE WANT TO BE IN THIS AREA NOW, AND THIS EXPANSION WILL REALLY HELP US A LOT.
AND I HOPE THAT THE WE ALSO APPROVE THE PROJECT DOLLARS BECAUSE WE NOT.
I CAN'T SPEAK FOR ONE AS MUCH AS I CAN FOR THE SIX DISTRICT SIX SIDE, BUT I THINK MR. WEST IS PROBABLY THERE AND WILL ECHO IT.
AND I THINK THAT AS A WHOLE, WE REALLY WE'RE REALLY GETTING THIS RIGHT.
AND IT DID TAKE A LITTLE LONGER THAN EXPECTED, BUT I'D RATHER HAVE AN AMAZING PROJECT THAN AN OKAY PROJECT, LIKE LIKE WE DID WITH SYLVAN 30, SYLVAN 30 IS JUST AN OKAY PROJECT. I WASN'T AROUND FOR IT, SO DOESN'T MATTER.
BUT WHAT I CAN TELL YOU IS THAT THIS ONE'S GOING TO BE A REALLY FANTASTIC PROJECT ONCE IT'S DONE.
SO I DON'T KNOW IF THAT'S AN AMENDMENT LATER, BUT IF IT IS ANYTHING THAT BRINGS IN LOCAL ARTISTS TO DO MURALS OR ANYTHING INSIDE, WHICH IS SOMETHING WE STARTED IN DISTRICT SIX A LONG TIME AGO WHEN I FIRST GOT HERE WAS, YOU KNOW, REALLY PUSHING FOR THAT.
AND I CAN TELL YOU THAT PEOPLE LOVE THAT KIND OF THING WHEN THEY WALK IN AND THEY'RE LIKE, THEY SEE, YOU KNOW, THE NEIGHBORHOOD NAME OR THEY SEE THEIR, YOU KNOW, THEIR HIGH SCHOOL MASCOT SITTING ON THE SIDE OF THE BUILDING THAT'S LOCAL TO THE AREA.
THOSE KIND OF THINGS JUST MEAN SOMETHING TO A COMMUNITY, BECAUSE IT SHOWS THAT THAT DEVELOPER AND WHATEVER COMPANIES ARE THERE THAT THEY'RE, YOU KNOW, THEY'RE IN TUNE WITH THE NEIGHBORHOOD AND THE COMMUNITY, AND THEY WANT TO BE PART OF THAT COMMUNITY AND THAT NEIGHBORHOOD.
AND THAT WAS JUST SUCH A COOL THING THAT WHEN THE COMMUNITY SAW IT THAT THEY WERE THEY JUST THEY FELT A SENSE OF PRIDE IN THAT THIS WAS ACTUALLY THEIRS AND WHICH IT IS BECAUSE IT'S A FIRE STATION, BUT IT WAS JUST A COOL ELEMENT TO JUST BRING IT ALL TOGETHER.
AND I APPRECIATE MR. WEST SUPPORT ON WANTING THE SAME THING AND SOMETHING SIMILAR, AND WANT TO THANK SPROUTS FOR TAKING THIS LONG JOURNEY WITH US, BUT I FEEL LIKE WE'RE ALMOST THERE, SO DON'T GIVE UP ON US.
I THINK WE'RE ON THE FIVE YARD LINE, AND NEITHER ONE OF US IS GOING TO CHAT AND I ARE GOING TO FUMBLE THIS FOOTBALL, AND WE'VE GOT A GREAT QUARTERBACK RIGHT OVER HERE LEADING US IS OUR CHAIRMAN. SO THANK YOU COLLEAGUES, AND I HOPE YOU'LL SUPPORT SUPPORT ALL OF THIS.
WITH THAT WE GOT A BRIEFING MEMO ON THE UPCOMING AGENDA.
WE DON'T NEED A MOTION ON THIS RIGHT.
IT'S ALREADY SCHEDULED FOR COUNCIL.
IS THAT CORRECT? THAT'S RIGHT.
AND WE'LL BRING A FLOOR MOTION ON THE LOCAL ARTISTRY ON THE STAIRWAY.
AND SO CHAD HAD AN AMENDMENT TO THAT HE WANTED TO ADD SOMETHING TO IT.
WE'RE JUST GOING WRITE IT UP. SO WE HAD FOR THE HORSESHOE.
SO YOU CAN DO IT NOW AND WE'LL BRING IT ON.
JUST GOING GO AHEAD AND DO IT NOW.
WE DO IT NOW AND THEN THAT WAY AND ADD IT TO IT.
GO AND MAKE A MOTION. ALL RIGHT.
SO THE MOTION IS FOR THE COMMITTEE TO RECOMMEND THIS MOVING FORWARD WITH THE AMENDED LANGUAGE OF ADDING A LOCAL ARTIST INSPIRED AND STAIRCASE ELEMENTS LEADING OFF OF FORT WORTH AVENUE INTO THE PEDESTRIAN ZONE.
GOT A SECOND ANY MORE DISCUSSION? ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSED? AYES CARRIED. [INAUDIBLE] DO YOU HAVE ANY QUESTION ON THAT? ON. SORRY. KEEP IT, KEEP IT.
WE'RE ALL GOOD. THANK YOU. OKAY, WE GOT A BRIEF ITEM D AND WE GOT AN UPCOMING AGENDA E AND F, SO IT'S F DEVIN MAYOR PRO TEM [INAUDIBLE].
JUST THE WAY. IT'S THE WAY IT'S WORDED.
[01:30:01]
IT STEMMED FROM ECHODALE AND THEY NEED THEY NEED TO ADDRESS IT SO IT'S ON THE RECORD.SO ITEM F IS A REQUEST FOR A MINOR AMENDMENT TO AN EXISTING CHAPTER 380 GRANT AGREEMENT BETWEEN THE CITY AND THE GOLDEN SEEDS FOUNDATION. THE ONLY AMENDMENT THAT WE'RE REQUESTING IS A 12 MONTH EXTENSION OF THE COMPLETION DATE.
SO QUICK LITTLE BIT OF QUICK BACKGROUND.
IN MAY OF 2019, BEFORE FORMER MAYOR RAWLINGS LEFT OFFICE.
YOU MAY RECALL THAT PROPOSITION I, WHICH IS THE ECO DEV HOUSING PROPOSITION FROM 2017.
THERE WAS SOME FUNDS THAT WERE ALLOCATED DISCRETIONARY FUNDS ALLOCATED TO THE MAYOR.
IN MAY OF THAT YEAR OF 2019, WE TOOK AN ITEM TO COUNCIL THAT AUTHORIZED A GRANT AGREEMENT WITH THE GOLDEN SEEDS FOUNDATION NOT TO EXCEED $500,000.
THE SOURCE OF THOSE FUNDS WAS THE MAYOR'S PROPOSITION I FUNDS.
THAT AGREEMENT ALLOWED FOR THE GOLDEN SEEDS FOUNDATION TO BE REIMBURSED FOR CAPITAL COSTS ASSOCIATED WITH NEIGHBORHOOD ENHANCEMENTS IN THE BOTTOM NEIGHBORHOOD, AND THOSE COULD HAVE INCLUDE ANYTHING RELATED TO ART INSTALLATIONS, STREET SIGN TOPPERS, NEIGHBORHOOD ENTRY SIGNAGE, LANDSCAPING ENHANCEMENTS, LIGHTING, AND ANY OTHER IMPROVEMENTS THAT WOULD ENHANCE THE SAFETY, NEIGHBORHOOD IDENTITY, OR ESTHETICS OF THE BOTTOM NEIGHBORHOOD.
SO IN 2022, AFTER COVID AND EVERYTHING, THE GOLDEN SEEDS FOUNDATION DID COMPLETE ABOUT 12 STREET LIGHTS ON MONROE STREET.
AND ALSO THEY INSTALLED ALMOST 40 SIGN TOPPERS AT ALMOST EVERY INTERSECTION IN THE BOTTOM.
SO THROUGH THAT AGREEMENT, GOLDEN SEEDS WAS THEY HAD TO PROVIDE THE FUNDING IN ADVANCE OR ON THE FRONT END, AND THEY WERE REIMBURSED THROUGH THIS GRANT AGREEMENT, $128,000. SO THE GRANT HAS AN UNEXPENDED BALANCE OF $371,000.
AND THEN IN MARCH OF THIS YEAR, THE GOLDEN SEEDS FOUNDATION CAME TO THE OFFICE OF ECONOMIC DEVELOPMENT WITH THE REQUEST TO ASSIGN THAT UNEXPENDED $371,000 FROM GOLDEN SEEDS TO THE CITY'S PARKS AND REC DEPARTMENT.
BECAUSE THE PARKS AND REC DEPARTMENT IS ALREADY WORKING ON A PROJECT TO IMPROVE, ELOISE LUNDY PARK IN THE BOTTOM AND THE GOLDEN SEEDS FOUNDATION SIMPLY DIDN'T HAVE THE CAPACITY TO ADVANCE $371,000 AND WAIT FOR REIMBURSEMENT.
SO IN ORDER TO GET THE FUNDS TO BE DEPLOYED IN A WAY THAT WAS EXPEDITIOUS, BUT ALSO WITHIN THE CONFINES OF THE GRANT AGREEMENT AND THE ORIGINAL INTENT, WHICH WAS NEIGHBORHOOD IMPROVEMENTS IN THE BOTTOM.
THE GOLDEN SEEDS FOUNDATION REQUESTED THIS EXTENSION OF ONE YEAR.
THE PARKS DEPARTMENT IS WILLING TO TAKE ON THE RESPONSIBILITY OF DEPLOYING THE REMAINING $371,000 INTO THE PARKS PROJECT THAT THEY'RE ALREADY PLANNING TO DO IN ELOISE LUNDY PARK, BUT THEY DO WANT THAT 12 MONTH EXTENSION OF TIME TO GIVE THEM THE ABILITY TO ACTUALLY COMPLETE THE PROJECT.
SO THAT'S REALLY WHAT THIS IS ABOUT.
HAVE I LEFT OUT ANYTHING? LET ME SEE. I THINK YOU DID A GREAT JOB.
MAYOR PRO TEM, YOU GOT A QUESTION? I DON'T HAVE A QUESTION. I WANTED THAT TO BE ON THE RECORD BECAUSE WE WERE DEALING WITH TWO DIFFERENT ADMINISTRATIONS IN TERMS OF DISCRETIONARY MONEY.
WE FROM A DISTRICT FOUR SIDE HAD ALREADY ALLOCATED SOME FUNDS TO PRIOR TO THIS AGREEMENT OR THIS REQUEST FOR RENOVATION OF THE ELOISE LUNDY PLAYGROUND.
AND SO THIS CAME UP IN THIS IN LIGHT OF THE FACT THAT THERE ACTUALLY THE TIMELINE FOR THIS FUNDS HAD PROBABLY EXPIRED ALMOST TWO YEARS AGO IN THE MIDDLE OF AT THE END OF COVID, I BELIEVE IT WAS.
AND SO IT'S JUST THE WAY IF THIS IS GOING TO HELP EXPEDITE.
AND THAT'S WHAT I WANTED TO MAKE SURE I'M HEARING.
IF THERE'S AN EXTENSION TO ONE YEAR, THEN I AM EXPECTING THAT THE TIMELINE FOR THE UPGRADE WILL BE COMPLETE WITHIN THE YEAR.
SO IS THAT WHAT PARKS IS SAYING, OR IS IT ONLY A PORTION OF IT THAT SPEAKS TO THE DISCRETIONARY MONEY THAT WILL BE COMPLETED AND NOT THE ARPA MONEY? THANK YOU FOR THE QUESTION.
CHRISTINA TURNER-NOTEWARE WITH THE PARKS DEPARTMENT, I THINK CAN ADDRESS THAT QUESTION.
YES, MA'AM. THANK YOU FOR THE QUESTION.
THE INTENT WAS TO ACTUALLY HAVE THE PROJECT DONE WELL WITHIN THE YEAR, BUT WE WANTED TO HAVE THE YEAR EXTENSION JUST IN CASE WE HAD ANY ISSUES WITH EQUIPMENT ORDERING OR LAG TIMES AND LEAD TIMES AND THINGS OF THAT NATURE.
[01:35:07]
SO THE END OF THE TIME YEAR, THE YEAR WOULD BE 2024 OF NOVEMBER.IT WOULD ACTUALLY BE DECEMBER 31ST DECEMBER.
BUT YOU UNDERSTAND WHAT I'M TRYING TO GET TO.
I WANT TO KNOW IF THE TIMELINE IS GOING TO SAY IF TODAY, WHEN WE HAVE THIS CONVERSATION, WHAT'S THE NEXT STEP? THE NEXT STEP BASICALLY IS ONCE THESE FUNDS ARE ALLOCATED, WE'VE BEEN WORKING INTERNALLY TO DO A DESIGN.
OUR FACILITY SERVICES CREWS ARE ACTUALLY GOING TO BE DOING THE WORK OUT THERE.
SO, CHAIRMAN, WHAT I'M TRYING TO GET WE DON'T HAVE TO TAKE THIS ITEM.
IS THIS ITEM GOING TO THE CITY COUNCIL FOR APPROVAL? YES, YES. IT HAS TO GO TO COUNCIL IN DECEMBER, DECEMBER 1ST IN THE MEETING.
AND THEN BECAUSE WE ARE WORKING IN-HOUSE THERE WOULD BE MINIMAL RFPS OUT OR ALL OF ITS IN-HOUSE SO DO WE KNOW NOW YET? WE DON'T KNOW THAT YET. THE PLAYGROUND ITSELF MAY NEED TO GO OUT FOR A RFP JUST BECAUSE INTERNAL CREWS HAVE A LITTLE BIT OF DIFFICULTY DOING THE SOFT SURFACE, THE SOFT POURED SURFACE. AND THAT'S DEFINITELY WHAT WE WANT TO DO OUT THERE TO IMPROVE THE PLAYGROUND.
SO THERE WILL BE IN-HOUSE ELEMENTS.
THERE MAY BE A FEW EXTERNAL ELEMENTS THAT WE NEED TO DO AS WELL.
AND WE'LL WORK ON THE GROUND, THE BLUE RIBBON ANNOUNCEMENT AND ALL.
HOPEFULLY WITHIN THREE MONTHS AFTER THAT, 2 OR 3 MONTHS AFTER WE COMPLETE IT.
YES. THANKS. GIVING YOU A LITTLE LEAD TIME, CHAIRMAN I'M DEFINITELY EXCITED.
AND COUNCIL MEMBERS, I KNOW YOU REALIZE THAT WE'RE VERY EXCITED, BUT WE STILL HAVE TO MAKE SURE THAT WE HAVE THE RESOURCES AND THE LABOR FORCE TO GET THESE PROJECTS DONE. I WOULD NOT WANT TO SEE THIS PROJECT MOVE INTO 2032.
ANY OTHER QUESTIONS? OKAY IN THE QUESTION ON ITEM D OR E.
WHICH ONE? THANK YOU, MR. CHAIR D.
I WASN'T AWARE OF THIS PREVIOUSLY.
I'D LIKE TO UNDERSTAND IT BETTER AND PARTICULARLY ITS PERFORMANCE TO DATE.
HOW SUCCESSFUL HAS THIS BEEN IN TERMS OF NUMBER OF LOANS, VOLUME OF LOANS AND IMPROVEMENTS MADE? SIR, THANK YOU FOR THE QUESTION.
AND I WOULD ADMIT THAT THIS IS ONE OF THE MORE UNIQUE TOOLS IN OUR TOOLBOX, AND WE CAN GO INTO DETAILS ABOUT THE LAST SEVEN YEARS OF MARKETING THAT WE'VE DONE TO TRY AND GET THE WORD OUT ABOUT THIS TOOL.
AND RYAN DOSS, WHO'S A COORDINATOR IN OUR OFFICE.
SO REAL QUICK IF WE JUMP AND MAYBE GIVE YOU A QUICK OVERVIEW OF WHAT IT IS, IT'S A FINANCING MECHANISM AND IT HELPS BUILDING OWNERS ACCESS NON CITY FUNDS FOR COMMERCIAL, INDUSTRIAL AND MULTIFAMILY PROPERTIES FOR LONG TERM LOANS TO DO CLEAN ENERGY, WATER CONSERVATION OR ENERGY EFFICIENCY IMPROVEMENTS TO BUILDINGS.
THAT'S IT. AND IT'S A VOLUNTARY PROGRAM.
PROPERTY OWNERS CONTRACTUALLY AGREE TO HAVE AN ASSESSMENT PLACED ON THEIR PROPERTY BY THE CITY IN EXCHANGE FOR SECURING A THIRD PARTY LOAN FROM A NON CITY CAPITAL PROVIDER.
SO THAT'S HOW THE PROGRAM WORKS IN A NUTSHELL.
I MEAN, IF WE JUMP TO NATASHA, MAYBE SLIDE 11.
SO THE CITY CREATED THIS PROGRAM AND THE COUNCIL AUTHORIZED IT IN 2016.
WE WERE THE FIRST CITY ENACTED PROGRAM IN THE STATE.
THE ENABLING LEGISLATION WAS CREATED IN 2013.
AND THEN WE SPENT ABOUT FOUR YEARS OF STAFF TIME TRYING TO GET A PROGRAM UP AND RUNNING.
SO YOU CAN SEE ON T HE PACE PROGRAM.
THERE YOU GO. SLIDE 11 PLEASE.
SO THIS IS SO IN SEVEN YEARS WE'VE BEEN ABLE TO CLOSE THIS SLIDE SAYS TEN PROJECTS.
WE ACTUALLY CLOSED OUR 11TH PROJECT LAST FRIDAY.
AND SO THESE ARE THE PROJECTS.
THEY'RE SCATTERED ALL OVER THE CITY.
[01:40:01]
BUT YOU CAN SEE WHAT THE SUCCESS HAS BEEN.I THINK STATEWIDE, MRS. HEYDINGER CAN CAN SPEAK TO THIS.
THEY HAVE THEY ARE PROGRAM ADMINISTRATORS FOR EVERY CITY AND COUNTY PROGRAM IN THE STATE.
SO THERE'S BEEN LIKE OVER 80 PROJECTS ACTUALLY FINANCED WITH PACE REPRESENTING $455 MILLION STATEWIDE. BUT IN THE CITY OF DALLAS, WE HAVE OVER WELL OVER A QUARTER OF THAT VOLUME AND TRANSACTION AMOUNT.
I THINK WE'RE AT $125 MILLION OUT OF THE CITY, OUT OF THE STATE'S $455 MILLION.
SO MAYBE I COULD TURN IT OVER TO MISS HEYDINGER TO GIVE A LITTLE BIT MORE FLAVOR TO THAT RESPONSE.
WE ARE. WE ARE VERY GRATEFUL FOR THE CITY'S LEADERSHIP, THE STAFF AND THE EDUCATION THAT HAS BEEN DONE IN DALLAS IS JUST FAR EXCEEDS WHAT WE'VE SEEN ELSEWHERE, AND THE NUMBERS SHOW IT.
PROJECTS IN THE STATE RANGE FROM $70,000 TO $48.5 MILLION.
BUT WHAT HAS HAPPENED HERE IS YOUR ECONOMIC DEVELOPMENT TEAM.
THEY'VE HAD US MEET WITH YOUR HOUSING TEAM, YOUR PERMIT ENFORCEMENT TEAM, REALLY TRYING TO FIND ALL KINDS OF CREATIVE WAYS TO HELP YOUR BUSINESSES REDUCE THEIR ENERGY AND WATER BILLS AND IN SO DOING, FREE UP THEIR CORE CAPITAL SO THEY CAN HIRE MORE PEOPLE AND AND FOCUS ON THEIR MAIN WORK.
THE PUBLIC BENEFIT OF THIS PROGRAM UNDER THE TEXAS PACE ACT, WHICH PASSED IN 2013, IS TO FREE UP ENERGY AND WATER RESOURCES TO HELP THE CITY DEAL WITH GROWTH.
WE'RE HONORED TO BE A PART OF IT.
SO HOW IS THIS PROGRAM BENEFICIAL TO THE INDIVIDUAL PROPERTY OWNER, AS OPPOSED TO THEM GOING OUT IN THE PRIVATE MARKET AND OBTAINING A LOAN FROM A LENDING INSTITUTION FOR THE SAME IMPROVEMENTS? THAT'S A GREAT QUESTION.
EQUIPMENT LOANS, WHICH IS BASICALLY WHAT WE'RE TALKING ABOUT A ROOF, A BOILER, AN HVAC SYSTEM, NEW LIGHTING, SOLAR, IT'S VERY EXPENSIVE UPFRONT, AND IT HAS A VERY LONG RETURN ON INVESTMENT, SO IT PROBABLY WON'T BREAK EVEN FOR 5, 10, 15 YEARS.
BECAUSE THESE ARE EQUIPMENT LOANS.
THEY'RE VERY RISKY FOR LENDERS, AND THERE'S NO COLLATERAL TO TAKE BACK IF THERE'S A FAILURE TO PAY.
SO TRADITIONAL LENDERS WANT TO SEE A RETURN.
THEY WANT THESE PAID OFF VERY QUICKLY, WHICH CREATES A CASH FLOW PROBLEM FOR AN OWNER.
AND NORMAL BUSINESSES NEED THAT CASH TO RUN THE BUSINESS.
SO THIS PROGRAM IS DESIGNED TO REDUCE THE RISK TO LENDERS.
SO WE'VE TAKEN AN EQUIPMENT LOAN WHICH IS THE RISKIEST LOAN.
SO THEY'LL LOAN OVER A MUCH LONGER PERIOD OF TIME.
SO WHEN YOU STRETCH OUT PAYMENTS LONG ENOUGH, THE SAVINGS EXCEED THE COST.
THESE LITERALLY PAY FOR THEMSELVES.
BUT WHAT WE'VE DONE, WHAT YOU'RE WHAT YOU'VE DONE.
AND WE WE FACILITATE THROUGH QUALITY CONTROL FOR THE CITY AND THESE PROJECTS IS ELIMINATE THE CASH FLOW PROBLEM. AND SO WHAT WE END UP WITH IS HELPING BUSINESSES WHO HAVE DEFERRED MAINTENANCE.
OR DEVELOPERS WHO WANT TO CONSTRUCT NEW FACILITIES TO ENCOURAGE THEM TO GO ABOVE CODE TO GET TO THE SAVINGS SO THAT THEY GET ACCESS TO CAPITAL.
THIS IS VERY COMPETITIVE, PRICED BECAUSE OF THE MECHANISM THE CITY HAS CREATED, BUT THE COST AND THE CASH FLOW ISSUES IN THE MARKET WITHOUT THIS VERY CREATIVE MECHANISM, MAKE IT IMPOSSIBLE FOR MOST OF THESE BUSINESSES TO DEAL WITH DEFERRED MAINTENANCE.
AND SO THE WAY THIS PROGRAM, SO THE WAY THIS WORKS, IS THAT THE CITY, UPON APPLICATION, WILL CREATE A SPECIAL ASSESSMENT ON THE PROPERTY TO DEFRAY THE COST OF THE IMPROVEMENTS.
SO THE TAX PAYMENTS FOR THE SPECIAL ASSESSMENT ARE REALLY THE LOAN REPAYMENT.
AM I UNDERSTANDING THAT? THAT IS CORRECT.
JUST WANT TO MAKE SURE I UNDERSTAND THE WORD DEFRAY.
THE CITY DOES NOT GUARANTEE THESE PAYMENTS.
YOU DON'T HAVE TO MAKE THEM IF THEY'RE NOT PAID.
BUT YOU THERE'S NO COST TO THE CITY.
[01:45:04]
OKAY, BUT THE MONEY FLOWS THROUGH THE CITY.IN OTHER WORDS, WE GET THE TAX PAYMENT AND THEN WE REMIT IT TO THE LENDER? IN ALMOST EVERY STATE.
WE DON'T HAVE THE SOFTWARE, WE DON'T HAVE THE PEOPLE.
AND SO ONE OF THE CREATIVE THINGS THAT HAPPENED IN TEXAS, WHICH IS NOW BEING COPIED IN OTHER STATES, IS THAT THE CONTRACT BETWEEN THE CITY OF DALLAS AND THE PACE LENDER, THE CITY SAYS YOU GET THE RIGHT TO THE STREAM OF PAYMENTS AS THEY COME IN.
AND WE WERE ABLE TO AVOID A LOT OF BUREAUCRACY THAT WAY.
IT IS THE ONLY CITY THAT HAS CHARGED A FEE, BECAUSE BEST PRACTICES REQUIRE THAT THE SAVINGS EXCEED THE COST OVER THE LIFE OF THE ASSESSMENT THAT HAS BEEN A CHALLENGE FOR SOME OF THE PROPERTY OWNERS.
SO I HAVE TOTAL CONFIDENCE IN THE PROJECTS THAT ARE APPROVED BY THE CITY.
CERTAINLY THERE MUST BE SOME STAFF TIME INVOLVED.
HOW DO WE RECOVER THE COST OF THAT STAFF TIME? GREAT QUESTION.
I WOULD SAY, AS SHE WAS SAYING BEFORE WE SUNK FOUR YEARS OF STAFF TIME INTO GETTING THE PROGRAM GOING AND EVEN GETTING THE ENABLING LEGISLATION APPROVED.
AND THEN WE WERE THE FIRST CITY TO CREATE STAND UP THE PROGRAM.
AND AT THAT TIME, WE ESTABLISHED A TIER OF FEES THAT WOULD BE COLLECTED AT CLOSING TO RECOVER THE COSTS THAT WE HAD ALREADY SUNK OF FOUR YEARS OF OUR TIME INTO.
AND THE COST TO ACTUALLY ADMINISTER THAT SPECIFIC TRANSACTION.
SO NOW, SEVEN YEARS LATER, WE'VE COLLECTED FEES ON SEVEN OR ALMOST ALL OF OUR TRANSACTIONS.
SO WE HAVE A SURPLUS FOR SEVERAL YEARS.
WE'RE NOT GOING TO BURN THROUGH THAT FOR A COUPLE MORE YEARS.
SO EVERY PROGRAM IN THE STATE DOESN'T CHARGE A FEE BUT US.
SO NOW WE'RE PROPOSING TO REMOVE THE FEE.
SO COST RECOVERY OF THE ADMINISTRATIVE TIME WOULD BE COVERED BY THE SURPLUS IN THAT FUND FOR A CERTAIN PERIOD OF TIME. YES, WE HAVE SEVERAL YEARS OF SURPLUS AT THIS POINT.
COUNCIL MEMBER RIDLEY, TEXAS SPACE AUTHORITY IS A 501C3 NONPROFIT.
TEXAS PACE AUTHORITY PREPARES ALL OF THE CONTRACTS.
WE REVIEW ALL THE ENGINEERING.
WE DO ALL OF THE ALL OF THE WORK IN PREPARATION FOR THESE TO CLOSE.
BUT WE HAVE DONE ALL OF THE PROJECT WORK IN PREPARATION FOR REVIEW.
WE ARE REIMBURSED BY GRANTS AND USER FEES PAID BY THE OWNERS AT CLOSING.
SO THE WHOLE EFFORT OF WHAT WE DO ACROSS THE STATE IN THE 93 LOCAL GOVERNMENTS WE SERVE IS TO NOT CREATE WORK FOR THE LOCAL GOVERNMENT. THE [INAUDIBLE] REASON WE HAVE BEEN SO SUCCESSFUL HERE, THOUGH, AND LET'S BE VERY CLEAR ABOUT IT, IS THE EXTRAORDINARY INSIGHT AND WORK IN LEADERSHIP OF ECONOMIC DEVELOPMENT.
I THINK THIS IS A GREAT PROGRAM.
[01:50:04]
WHILE, I GUESS WE CAN DEFER THAT DECISION FOR A FUTURE DATE.MAYOR PRO TEM. THANK YOU, CHAIR.
AND I WANT TO THANK, OF COURSE, COUNCIL MEMBER RIDLEY FOR GETTING INTO THAT QUESTION.
REMEMBER, THIS IS NOT CITY FUNDING AT ALL.
NO. DIDN'T YOU SAY WE ARE CHARGING FEES? SURE. WE'LL GET THAT TO YOU.
YEAH. I WANT TO SEE HOW MUCH HAS BEEN.
IF WE'RE CHARGING FEES, HOW MUCH HAVE WE CHARGED TO DATE AND WHERE IS IT? AND WHAT DO WE WHERE IS IT BEING ALLOCATED TO? IT'S A IT'S A FUND THAT IS MANAGED BY OUR OFFICE.
AND AGAIN WE USE IT TO REIMBURSE BACK TO THE GENERAL FUND WITH EVERY BUDGET YEAR.
BUT WE CAN GET YOU. THAT'S A VERY GOOD POLITICAL ANSWER.
BUT I WANT TO KNOW SPECIFICALLY WHERE THE MONEY IS GOING.
AND THAT GOES TO THE GENERAL FUND, BUT SPECIFICALLY WHEN IT GETS TO THE GENERAL FUND, WHERE IS IT GOING? SO THAT'S WHY I NEED IT IN WRITING FROM YOU NOW, BECAUSE IT OFTEN, YOU KNOW, OFTEN TIMES WE HAVE THAT STATEMENT.
AND COUNCIL MEMBER GATES AND I USED TO ALWAYS TALK ABOUT THIS.
NO COST TO THE NO COST TO THE TO THE CITY, NO COST.
THERE'S ALWAYS A COST OF DOING BUSINESS.
AND THANK YOU SO VERY MUCH, MR. SPATH. AND THANK YOU, CHAIRMAN.
SO THEY. IS THAT CORRECT? THAT'S RIGHT. AND WE'LL SEND A MEMO OUTLINING ALL OF THE FEES SO FAR.
AT THIS POINT OUR ADMINISTRATOR DOES THE BULK OF THE DEAL WORK.
SO IT REALLY IS A MINIMAL AMOUNT OF STAFF TIME ON EACH DEAL AT THIS POINT.
WHEREAS THE FIRST FEW YEARS WHEN WE WERE CREATING THIS WHOLE CLOTH, IT WAS A DIFFERENT PROPOSITION.
NO ONE WILL TAKE OUR PROGRAM IF WE CONTINUE TO CHARGE FEES.
OKAY. IS THERE ANY OTHER QUESTIONS ON ANOTHER ITEM? IT IS NOW 2:54 JOINT ECONOMIC COMMITTEE IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.