[Public Facility Corporation Special Meeting on November 07, 2023. ]
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UH, WE HAVE ESTABLISHED A FORUM, SO WE'LL CONTINUE ON WITH THE BUSINESS.
MOVING ON TO ITEM NUMBER THREE, PUBLIC TESTIMONY, PUBLIC COMMENTS ON ITEMS FOUR THROUGH 12.
DO WE HAVE ANY PUBLIC COMMENTS REGISTERED? SEEING NONE.
ITEM NUMBER FOUR, DISCUSSION AND APPROVAL OF THE AUGUST 22ND, 2023 BOARD MEETING.
HAVE WE CHANCE, HAVE WE HAD A CHANCE TO REVIEW AND DO WE HAVE A MOTION? SECOND.
MOTION MADE BY DIRECTOR STINSON, SECONDED BY, UH, DIRECTOR TOLEDO.
ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.
ANY OPPOSED? THE MINUTES ARE APPROVED.
DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TEAM TERM SHEET FOR SANTA FE TRAIL AT HASKELL.
IN PARTNERSHIP WITH LARKSBURG CAPITAL, LP TO BE LOCATED AT 400 ASHLINE, DALLAS, TEXAS, AARON AND ALBERT.
SO, UM, JUST WANT TO INTRODUCE REAL QUICK.
SAM MCDANIEL IS A NEW PROJECT MANAGER.
HE'S GONNA BE WORKING WITH THE PFC HERE, AND OBVIOUSLY YOU GUYS KNOW ALBERT GONNA BE TAKING A LARGER ROLE HERE.
UH, SO JUST SO YOU'RE NOT WONDERING WHO, WHO THESE PEOPLE ARE HERE, UM, WELCOME, WELCOME TO THEM.
BUT YES, THE PROJECT AT HAND, SANTA FE HASKELL.
UH, WE DO HAVE THE DEVELOPER HERE, UM, TO GIVE THEIR PRESENTATION.
SO WE'D INVITE THEM TO COME UP TO THE PODIUM HERE.
AND, UH, I THINK SAM HAS THE, THE PRESENTATION LOADED HERE.
MY NAME'S CARL ANDERSON WITH LARKSBURG CAPITAL.
WE ARE EXCITED TO PRESENT THIS PROJECT FOR YOUR CONSIDERATION THIS AFTERNOON.
WE THINK THIS IS A REALLY EXCITING URBAN, UH, INFILL PROJECT.
IT'S THE SECOND PROJECT THAT WE'RE BUILDING, AND REALLY ONLY THE SECOND PROJECT IN, UH, MODERN HISTORY TO BE BUILT ON THE SOUTH SIDE OF I 30 ON THE FAIR PARK SIDE OF I 30.
IT'S A VERY TRAIL ENGAGING PROJECT.
WE HAVE 450 LINEAR FEET OF SANTA FE TRAIL FRONTAGE.
UH, THERE'S A NEW TRAIL HEAD THAT'S BEING BUILT AT THE CORNER OF PASCHAL AND PERRY ADJACENT TO THE PROPERTY IN CONNECTION WITH THE EXPANSION OF THE TRAIL THROUGH FAIR PARK.
THE CURRENT USE IS OLD WAREHOUSE AND INDUSTRIAL BUILDINGS WITH A VERY, UH, VERY LOW TAX BASE OF $24,000, UH, VERSUS OUR, OUR PFC RENT OF $300,000 OR 12.3 TIMES THE CURRENT TAXES.
THE ZONING TODAY IS IR INDUSTRIAL RESEARCH.
WE ARE REZONING THE SITES IN CONNECTION WITH THIS, UH, REQUEST.
AND WE'RE BEING HEARD WE'VE, WE HAVE CPC APPROVAL, WE'RE BEING HEARD AT CITY COUNCIL TOMORROW AND EXPECT APPROVAL THERE BASED ON OUR CONVERSATIONS WITH THE COUNCIL MEMBERS.
SO, THIS AREA IS GENERALLY AND HISTORICALLY KNOWN AS EXPO PARK.
SO, WHICH STRADDLES BOTH SIDES OF I 30 ON THE EAST END OF DEEP ELM AND THE WEST SIDE OF FAIR PARK.
AGAIN, THIS IS OUR SECOND PROJECT.
YOU CAN SEE THE FIRST ONE THAT WAS APPROVED BY THIS BOARD THAT'S CALLED OUT AS LARGES FOR FAIR PARK SITE, JUST TO THE SOUTH AND BLUE RIGHT UP ON I 30.
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SUBJECT SITE IS HIGHLIGHTED IN GREEN.THIS WILL BE OUR FIR FOURTH PROJECT IN THE EXPO PARK AREA, AND WE'RE BUILDING ABOUT 900 UNITS WITHIN THAT MICRO MARKET.
WE'RE WELL POSITIONED AGAINST WE, AGAIN, WE TALKED ABOUT THE TRAIL FRONTAGE.
WE'RE ALSO, UH, WITHIN A FEW MINUTE WALK OF THE FAIR PARK DART STATION, WHERE ADJACENT I 30, THE SECTION OF I 30 IS SLATED TO BE DEMOLISHED AND BURIED.
UH, STARTING IN, IN ABOUT 48 MONTHS.
THERE'LL BE, THERE'S A PROPOSED DECK PARK THAT'S ADJACENT TO THE PROPOSED PROPERTY THAT'S IN, IN PLANNING NOW, AND WE THINK THE CLOSE PROXIMITY TO AREA EMPLOYERS AND DEMAND DRIVERS SUCH AS BAYLOR AND FAIR PARK, UH, MAKE THE SITE A ONE THAT'S WELL SITUATED FOR APFC PROGRAM.
I'M SURE YOU'RE ALL AWARE OF THE PROPOSED IMPROVEMENTS AND, AND SOME WHICH ARE ONGOING AT FAIR PARK.
WE THINK THIS PROJECT MAKES SENSE GIVEN THE INCREASED EMPLOYMENT RAMP UP AT FAIR PARK FOR ALL THE PROPOSED, UH, EXPANSION ITEMS, RENOVATION ITEMS, UH, THE COTTON BOWL, EC
SHELL MENTIONED THE DECK PART.
UH, THERE'S CURRENTLY A HUGE LACK OF HOUSING IN THIS NEIGHBORHOOD.
AND, UH, AGAIN, THIS IS THE, THE ONLY SECOND NEW CONSTRUCTION PROJECT IN, UH, SEVERAL DECADES TO BE BUILT HERE.
SO THE PROJECT 240 UNITS, IT'S BEING BUILT AS A WRAP PODIUM, UH, HYBRID, UH, ESTIMATED COSTS ARE $270,000 PER DOOR, UM, FENCED WITH A CONSTRUCTION LOAN AT 55% LOAN TO COST THE BALANCE COMMON EQUITY BETWEEN US AND OUR, UH, OUTSIDE PARTNER.
THERE'S GENERALLY A TWO TO $300 DELTA BETWEEN THE MARKET RATE AND 80% AMI UNITS.
WE ALSO HAVE 10% AT 60% AMI AND HAPPY TO GET INTO ANY QUESTIONS ON UNIT MIX.
WE TRIED TO SOLVE FOR A GENEROUS AMOUNT OF ONE BEDROOMS, NOT TOO MANY STUDIOS, JUST BASED ON FIRE FEEDBACK FROM FROM THE BOARD HERE.
THERE IS A SMALL RETAIL COMPONENT.
THERE'S A 2000 FOOT, UH, WHAT WE'RE CALLING CANTINA THAT WILL BE UP ON THE TRAIL THAT WILL SERVE BURGERS, BEERS ON A WEEKEND, UH, TO PEOPLE USING THE SANTA FE TRAIL.
WE'RE REZONING FROM IR TO WM U FIVE, WHICH IS A FOREIGN-BASED ZONING DISTRICT THAT WILL ALLOW FIVE LEVELS.
UH, THERE IS A HEIGHT BONUS THAT LETS US GO TO WM U EIGHT, WHICH IS EIGHT LEVELS.
IF WE HAVE PORTABLE HOUSING IN THE PROJECT.
UM, ENVIRONMENTAL, THERE'S SOME MINOR ENVIRONMENTAL ISSUES THAT ARE CONSISTENT WITH THE REST OF THE NEIGHBORHOOD THAT WE'RE WORKING THROUGH.
NEXT SLIDE, SCHEDULED TO CLOSE, ASSUMING WE GET APPROVAL HERE TODAY AND COUNCIL APPROVAL ON OUR ZONING TOMORROW.
SCHEDULED TO CLOSE THIS FRIDAY, WE WILL IMMEDIATELY GO INTO, UH, FULL DESIGN MODE IN JANUARY, PICK OFF DRAWINGS, UH, SPEND SEVERAL MONTHS DESIGNING THE PROJECT, GOING FOR PERMIT TOWARD THE END OF THE SUMMER, AUGUST, SEPTEMBER, AND ASSUMING A, UH, I GUESS A REASONABLE PERMIT TURNAROUND TIME, UH, TRIED TO START CONSTRUCTION EARLY NEXT YEAR AND AVAILABLE FOR ANY QUESTIONS.
WE'LL OPEN UP THE FLORIDA QUESTION, UH, THE BOARD OF QUESTIONS.
I'D LIKE TO START OUT WITH JUST A, A FIRST ONE ON, UH, I BELIEVE THIS IS IN, UH, DISTRICT TWO.
IT MOVED TO, UM, DISTRICT SEVEN.
DO YOU HAVE THE SUPPORT OF THE COUNCIL MEMBER? WE DO.
COUNCIL MEMBER BASAL DO IS THE COUNCIL MEMBER, AND WE HAVE THIS, THIS FOR IT.
ANY OTHER QUESTIONS OR COMMENTS? UH, DIRECTOR STINSON, GOOD MORNING.
JUST LIKE YOU TO ELABORATE ON, UH, SOME OF THE ENVIRONMENTAL ISSUES THAT YOU MENTIONED.
I THINK WE HAVE, UM, LET'S SEE.
WE HAVE SOME POTENTIAL GROUNDWATER CONTAMINATION.
WE'VE ALREADY SUBMITTED OUR APPLICATION TO THE VOLUNTARY CLEANUP PROGRAM AT TCEQ, AND IT'S, WE'VE BEEN ACCEPTED INTO THAT PROGRAM, SO I DON'T THINK THERE'S GONNA BE ANY PHYSICAL REMEDIATION.
IT'LL JUST BE, UH, BASICALLY A LINE ITEM IN THE BUDGET TO GET CLOSED OUT ADMINISTRATIVELY.
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PREVIOUSLY ON THIS SITE? UH, IT'S BEEN WAREHOUSE AND INDUSTRIAL USES, UM, YOU KNOW, FOR PROBABLY A HUNDRED YEARS.AND WE THINK WHAT HAPPENED WAS THERE WAS A DRY CLEANING RELEASE, NOT ON OUR SITE, BUT FROM A A, A GRADIENT SITE THAT THE CHEMICALS GOT INTO THE GROUNDWATER AND CAME DOWN TO OUR SITE.
WERE THERE ANY TANKS THAT WILL BE REVIEWED? NO.
UM, APPRECIATE THE PRESENTATION.
UH, REALLY EXCITED THAT SOMEONE'S WILLING, PEOPLE ASK WHAT'S, WHAT'S IT GONNA TAKE TO DEVELOP AROUND FAIR PARK? AND YOU'VE GOT THE PACKAGE AND OBVIOUSLY, UM, I'VE DONE THAT, DONE IT MULTIPLE TIMES.
SO, YOU KNOW, AS A, AS A RESIDENT OF THE CITY, I'M VERY EXCITED TO SEE THIS HAPPEN.
UM, ALSO, BAZ IS APPOINTEE, SO I I I, I'M KIND OF CURIOUS.
I, I DIDN'T WATCH THE, THE CPC.
CAN YOU SHARE A LITTLE BIT, KINDA CONCERN? DID, DO YOU HAVE THE SANTA FE TRAIL FOLKS, I'M SURE I ASSUME ARE ON YOUR SIDE? THEY ARE, YES.
ANECDOTALLY SHARE SOME THINGS? YEAH, SO THIS IS PROBABLY MONTH 16 OF THIS REZONE.
UH, IT SHOULD PROBABLY GO FASTER THAN THAT.
UM, WE'RE DOWN ZONING FROM INDUSTRIAL RESEARCH, WHICH I THINK WE CAN GO 240 FEET HIGH.
YOU CAN DO A LOT OF NASTY, UH, DIFFERENT USES ON IT TO A, UH, WALKABLE MIXED USE PROJECT THAT REQUIRES, UH, FRONTAGE ENGAGING ELEMENTS, LOTS OF TRANSPARENCY, UH, NO BLANK FACADES.
UM, SO IT'S FORM BASED ZONING, ARTICLE 13 ZONING.
SO YOU'D THINK IT'D GO FASTER.
ONE, THERE WAS A HUGE BACKUP GOING INTO IT.
IT TOOK US MONTHS TO GET A PLANNER, AND THEN WE THOUGHT WE'D GET TO PLAN COMMISSION SEVERAL MONTHS BEFORE WE DID.
IT ENDED UP TAKING PROBABLY A YEAR AND THEN GOT TO PLAN COMMISSION THE SATURDAY AFTER PLAN COMMISSION, THE BOUNDARIES WERE SCHEDULED TO BE RE SO I GUESS THE REACH DRAWN COUNCIL DISTRICT BOUNDARIES WENT TO EFFECT.
AND SO WE WERE IN DISTRICT TWO AT PLAN COMMISSION, BUT THAT FOLLOWING SATURDAY, WE WOULD BE IN DISTRICT SEVEN.
AND SO THE PLAN COMMISSIONER FOR DISTRICT SEVEN EXPRESSED, UH, CONCERN THAT SHE HAD.
SHE WAS UNAWARE OF THE PROJECT.
UM, AND SO IT WAS LIKE A THREE HOUR TURNED INTO A THREE HOUR HEARING.
UH, WE HAD OVERWHELMING SUPPORT FROM THE REST OF THE PLAN COMMISSION.
AND I THINK YOU COMMENTS LIKE, THIS IS A PERFECT CASE STUDY FOR AULI TYPE PROJECT.
YOU KNOW, IT'S, UH, VERY URBAN TRAIL, ENGAGING, WALKABLE IN FAIR PARK.
SO THERE WAS OVERWHELMING SUPPORT.
UH, WE HAD A FOLLOWED NEIGHBORHOOD MEETING THAT SHE SET UP AND HAD PROBABLY SIX PEOPLE THAT ATTENDED.
AND, UH, ALL OF 'EM WERE VERY SUPPORTIVE OF THE PROJECT.
AND BEFORE, BEFORE PLAN COMMISSION, WE HAD REACHED OUT TO DOLPHIN HEIGHTS, MUNGER PLACE, JUNIUS HEIGHTS, JUBILEE PARK, UH, FAIR PARK, SOUTH DEEP ALLEN FOUNDATION, AND FRIENDS OF SANTA FE TRAIL.
AND WE HAVE ZERO OPPOSITION IN, IN THOSE CONVERSATIONS.
AND THIS ISN'T A TRAP QUESTION, I JUST WANTED TO ASK, DID YOU, DID YOU SHARE WITH THEM THE SUBSID LEVELS AND WHAT THE AMIS WOULD BE? OR WAS IT PRESENTED TIME? IT WAS ONLY 10.
AND SO IN CONSULTATION WITH A COUPLE OF THE NEIGHBORHOOD LEADERS AND THE COUNCIL MEMBER WE HAD, AND WE HAD ALREADY GONE FROM FIVE TO 10 AND WE TALKED ABOUT POINT 10 TO 20 PROJECT AT THAT POINT WOULD NOT BE FEASIBLE.
AND SO WE THOUGHT, OKAY, PFC STRUCTURE PROBABLY MAKES THE MOST SENSE AND IT GETS THE MOST AFFORDABLE HOUSING UNITS ON THE GROUND.
AND SO I THINK EVERYONE WILL BE REALLY PLEASED TO SEE 50.
LAST, LAST, ANY ANYONE WHO HASN'T BEEN UPDATED, LAST THEY HEARD OF IT WAS 10.
UM, ARE WE ABLE TO ALSO, UM, YOU MENTIONED MIXED INCOME HOUSING BONUS IS, WAS THAT PART OF YOUR RE REZONE AS WELL, TO GET MORE DENSITY OR IS IT YEAH, THAT'S RIGHT.
AND IS IT FOUR STORY PODIUM? YOU SAID IT IT FIVE AND IT CAN, IT CAN GO UP TO EIGHT.
ANY OTHER COMMENTS? DIRECTOR, TAAS? NO PROBLEM.
HEARING ONE? UH, DO WE HAVE A MOTION? MOTION FOR TO APPROVE, SIR? MOTION MADE BY DIRECTOR CALLAS, SECONDED BY DIRECTOR MONTGOMERY.
UH, SAM, CAN YOU PLEASE DO A ROLL CALL? OH, ROLL CALL AGAIN? YEAH, JUST, JUST A ROLL CALL VOTE, SAM.
SO JUST READ THE NAMES OUT, OUT AND, UH, THEY'LL, THEY'LL INDICATE WHETHER THEY ARE POOR OR AGAINST THANKS.
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RONALD STINSON? UH, YES.UH, ITEM ITEM NUMBER FIVE HAS BEEN APPROVED, BUT DALLAS, PFC UNANIMOUSLY.
NOW WE ON MOVE ON TO ITEM NUMBER SIX, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET, AND INDUCING THE PROPOSED FINANCING OF UP TO $55 MILLION OF TAX EXEMPT BONDS FOR THE RIVIERA APARTMENTS AND PARTNERSHIP WITH SAVOY AND AID SERVICES OF DALLAS TO BE LOCATED AT 11,700 ELIA ROAD, DALLAS, TEXAS.
AARON, UNLESS I BELIEVE, UH, JIM, UH, PLUMBER MIGHT ALSO HAVE A, IN THE COMMENTS FOR US.
YEAH, I MEAN, JUST TO, UH, INTRODUCE THIS, THIS IS A PROJECT, UM, VERY UNLIKE ANY WE'VE DONE BEFORE AT THE PFC.
UH, FIRST OF ALL, IT'LL BE AN ACQUISITION OF AN EXISTING PROPERTY, UH, BUT ALSO BECAUSE IT IS AN ACQUISITION TARGETED TO SERVE A SPECIAL POPULATION HERE IN, IN THE CITY, UM, WITH THIS, UH, AID SERVICES OF DALLAS.
AND SO WE'RE, WE'RE REALLY EXCITED JUST TO, TO HAVE THE DEVELOPER HERE, UM, BARRETT WITH SAVOY HERE, AS WELL AS, UM, THEIR PARTNERS WITH AID SERVICES OF DALLAS, INTRODUCE THEMSELVES TO YOU GUYS AND, AND TO KIND OF LAY OUT WHAT, WHAT THE VISION IS FOR THE PROJECT AND, AND HOW THEY ENVISION THE PFC PARTNERING TO ACHIEVE THEIR GOALS.
AND SO I'M GONNA TURN IT OVER TO THEM.
UM, AND, AND IF SOMEONE'S ONLINE, IF YOU GUYS CAN MUTE, WE'RE GETTING SOME FEEDBACK HERE.
UH, IT'S A PLEASURE TO BE BEFORE YOU TODAY, UH, AND SEE SOME FAMILIAR FACES.
UM, I'M GOING TO GO AHEAD AND JUST KIND OF SAY A, SHARE A LITTLE BIT ABOUT MYSELF AND THE, AND THE ORGANIZATION.
UM, AND THEN JUST KIND OF ANSWER QUESTIONS, UH, AND PASS THE MICROPHONE.
UH, MY NAME IS TRA WELL C LIVINGSTON II.
I AM THE PRESIDENT AND CEO OF A NONPROFIT CALLED AIDS SERVICES OF DALLAS.
UH, OUR ORGANIZATION, OUR NONPROFIT, HAS BEEN BASED IN NORTH OAK CLIFF FOR ABOUT 36 YEARS, UH, FOUNDED IN 1987.
AND OUR MISSION IS TO CREATE, STRENGTHEN, AND SUSTAIN HEALTHY COMMUNITIES BY PROVIDING QUALITY, AFFORDABLE, SERVICED, ENRICHED HOUSING TO ECONOMICALLY DISADVANTAGED INDIVIDUALS AND FAMILIES WHO ARE LIVING WITH, IMPACTED BY OR AT RISK FOR HIV OR AIDS.
WE'VE DEVELOPED, UM, FIVE PROPERTIES THAT, UH, IN OUR NORTH OAK CLIFF AREA.
WE'VE ALSO DEVELOPED FOUR ADDITIONAL SENIOR PROPERTIES OUTSIDE OF THE CITY OF DALLAS IN CITIES LIKE RICHARDSON, MESQUITE, UH, FARMER'S BRANCH, AND PLANO.
UM, WE HAVE SERVED, UM, THE NEEDS OF THE NORTH OAK CLIFF COMMUNITY, UH, WHERE WE PROVIDE INTENSIVE SERVICES AND A CONTINUUM OF HOUSING FROM INDEPENDENT LIVING UNITS WITH NO SUPPORTIVE SERVICES WHATSOEVER TO INTENSIVE HOMELESS HOUSING FIRST, UM, UNITS AS WELL, KIND OF IN A CONTINUUM OF A RANGE OF, OF, OF SERVICES BASED ON INDIVIDUAL NEEDS.
WE ALSO HOUSE, UH, 35 FAMILIES ON OUR CAMPUS IN NORTH OAK CLIFF.
UM, FOR THIS PROJECT SPECIFICALLY, UM, IT HELPS MEET OUR CHALLENGE GOAL OF ACQUIRING AND DEVELOPING MORE AFFORDABLE HOUSING UNITS.
UH, WE HAVE, UH, AS A SECOND CHANCE, UM, OFTEN A SECOND CHANCE DEVELOPER.
IT IS CHALLENGING SOMETIMES FOR SOME OF OUR GRADUATING RESIDENTS TO FIND AFFORDABLE HOUSING IN THE CITY OF DALLAS.
SO OUR, OUR FIFTH DEVELOPMENT, UH, THAT WE'VE JUST COMPLETED CONSTRUCTION ON IN PARTNERSHIP WITH THE CITY OF DALLAS, DOES THAT INDEPENDENT HOUSING IN, IN NORTH LANCASTER.
UM, BUT, UM, 16 UNITS IS NOT ENOUGH, OBVIOUSLY.
UM, BUT THAT IS HOW WE CAME TO BE INTRODUCED WITH, UH, SAVOY AND EQUITY PARTNERS.
UH, THAT DEVELOPER HAS BEEN IN OUR COMMUNITY.
WE'VE PARTNERED WITH THAT DEVELOPER IN OUR COMMUNITY.
THEY'RE, THEY'VE PUT SEVERAL UNITS ONLINE THAT THEY'LL SPEAK TO, UH, BUT MORE IMPORTANTLY, THEY'VE BEEN A PARTNER TO
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OUR ORGANIZATION.UH, THEY SEE US IN THE COMMUNITY.
WE'VE WORKED TOGETHER ON JUST IN IMPROVING THE QUALITY OF HOUSING IN THAT COMMUNITY.
UM, THEY SERVED AS OUR GENERAL CONTRACTOR ON OUR LATEST CONSTRUCTION PROPERTY THAT WE DEVELOPED A SMALL THREE AND A HALF MILLION DOLLAR DEVELOPMENT OF 16 UNITS IN NORTH OAK CLIFF.
AND THEY'VE ALSO PARTNERED WITH SOME OF OUR, UM, EMPLOYMENT PROGRAM RESIDENTS THAT HAVE GRADUATED FROM OUR PROGRAM.
UM, AND AS HIRED AS MAINTENANCE TECHS AND, UM, SERVICE WORKERS IN THE MAINTENANCE SPACE.
UM, WE ARE AN ORGANIZATION THAT HAS, AGAIN, HOUSED ABOUT 2,500 PEOPLE OVER OUR TIME OF DEVELOPMENT, AND, AGAIN, CONTINUE TO HAVE AN ARRAY OF, OF HOUSING.
UM, SO WHEN YOU UNDERSTAND HOUSING IN IN DALLAS, AS FAR AS THE AFFORDABILITY, WE HAVE, UH, A MISSION TO DEVELOP MORE, UM, HOUSING OPPORTUNITIES FOR THAT SAME POPULATION IN TWO WAYS.
ONE, BY BEING A DEVELOPER OF HOUSING STOCK THAT WILL HOUSE INDIVIDUALS, UH, SPECIFICALLY, UM, COMING FROM THAT BACKGROUND.
BUT ANOTHER STRATEGY IS FOR THE BROADER COMMUNITY FOR US TO ENGAGE PRIVATE DEVELOPERS.
SO BECAUSE WE BELIEVE IF WE CAN ENGAGE PRIVATE DEVELOPERS AND WORK TOGETHER, THEN WE CAN BETTER SERVE THE POPULATION AND DEVELOP MORE UNITS FASTER.
SO THAT'S WHAT YOU SEE HERE TODAY, A GREAT PARTNERSHIP.
UM, IN THE PAST, CAPITAL HAS BEEN A CHALLENGE, YOU KNOW, NOT A SECRET TO A NONPROFIT DEVELOPER.
WE DO SERVICES AND MISSION WORK VERY WELL, BUT CAPITAL IS SCARCE BASED ON ALL OF OUR FUNDING AND SERVICES GOING DIRECTLY TO THE RECIPIENTS AND THE SERVICES THAT WE PROVIDE, UM, SIGNIFICANTLY TO THIS PROJECT.
THIS PROJECT, UM, AS YOU HEARD, IS IN NORTH, NORTH DALLAS.
UH, THE LAKE HIGHLANDS AREA IS KIND OF, UM, SPECIFICALLY, UM, TOUCHED, TOUCHED ME DIRECTLY.
I'M FROM THIS COMMUNITY, UM, PRODUCT OF RICHARDSON HIGH SCHOOL.
AND, UH, YOU KNOW, FREQUENTLY THESE APARTMENTS AS A CHILD, AS A JUNIOR HIGH STUDENT, AS A HIGH SCHOOL STUDENT, UM, COMING FROM RICHARDSON HIGH SCHOOL WITH A RIVAL LAKE HIGHLANDS.
SO I'M VERY INVOLVED IN THIS COMMUNITY AND HAVE BEEN SUCH SINCE MY GRADUATION, RETURNING BACK HOME TO THE DALLAS AREA.
ALTHOUGH I LIVE IN FAIR PARK, I STILL FROM THIS AREA.
SO THAT'S WHY THIS COMMUNITY AND TO BE ABLE TO HAVE AN OPPORTUNITY TO REDEVELOP THIS PROPERTY AND TO MAKE IT AFFORDABLE IN MY LINE OF WORK I SEE PROPERTIES, THIS, IT'S JUST UNAFFORDABLE TO, UM, MAKE IT NOT SUSTAINABLE A LOT OF TIMES TO MAKE IT AFFORDABLE.
SO THE WAY THIS PARTNERSHIP WORKS TO ALLOW IT TO BE REDEVELOPED, QUALITY HOUSING, WE'RE PROUD OF THAT.
AND AS PART OF OUR MISSION TO, TO MAINTAIN THE AFFORDABILITY.
SO THAT'S SOMETHING THAT WE'RE PROUD OF.
UM, JUST TO KIND OF RECAP AND CONCLUDE, UM, THIS PROJECT WILL NOT NECESSARILY, UM, BE 100% PEOPLE LIVING WITH HIV.
THAT IS OUR MISSION, BUT MORE IMPORTANTLY, WE'RE PROVIDING, UH, HOUSING THAT'S AFFORDABLE.
SO THAT'S WHERE THE AT-RISK PART COMES IN.
WE BELIEVE THAT PEOPLE JUST NEED SUSTAINABLE HOUSING TO, IN ORDER TO MAINTAIN THEIR HEALTH, UH, IN THE DALLAS METROPLEX, YOU CANNOT MAINTAIN HOUSING WITHOUT, UH, MAINTAIN A HEALTHY LIFE IN DALLAS WITHOUT STABLE HOUSING.
SO THAT'S WHAT WE INTEND TO DEVELOP AND TO MAINTAIN.
AND WE'LL ALSO COUPLE IT WITH SOME OF OUR ONGOING SERVICES THAT WE HAVE ACCESS TO FOR CHILDCARE, TUTORING, UM, PROPERTY MANAGEMENT TRAINING, AND OTHER SERVICES, UH, FOR OUR WORKFORCE POPULATION THAT WE, THAT WE STRIVE TO INCLUDE.
SO I'LL PAUSE HERE FOR ANY QUESTIONS.
UH, OH, YES, I I'LL GO AHEAD AND, UH, ASK ONE AS, AS IT RELATES TO, UH, ASD.
UM, I WAS, UH, GOOD FRIENDS OF THE, OF THE LATE, UH, DON MASON, UH, WE WENT TO ON SEVERAL CONVENTIONS TOGETHER.
AND, UH, HE WAS A GREAT, GREAT MAN IN DALLAS, TEXAS, AND, UH, KNEW HIM VERY WELL.
AND, UH, YOU'RE DOING A GOOD JOB TAKING OVER THE REIGNS FROM SOMEONE WHO'S HARD TO FOLLOW.
UH, AND GIVEN THAT, UM, I DID WANT TO ASK A COUPLE OF QUESTIONS.
UM, SO IN THIS AGREEMENT, UH, ASD WILL BE THE LONG TERM AND ONLY MANAGER OF THIS PROPERTY? YES, SIR.
AND THAT'S, THAT'LL BE IN THE, UH, THAT'LL BE IN THE AGREEMENT.
THAT WILL BE IN THE AGREEMENT.
AND, UM, IF YOU EVER DECIDE THAT YOU DO NOT WANT TO DO IT AGAIN, WHAT YOU WANT TO GET OUT OF IT, WHAT, WHAT WOULD HAPPEN, UM, IF WE WANT TO GET OUT OF THE DEAL? UH, I THINK THERE'S STILL REQUIREMENTS
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ON THE, UH, THAT WILL BE DEED RESTRICTIONS, BUT, UM, THAT IS NOT OUR INTENT.UM, BUT FOR THE LEGAL, OUT LEGAL IMPACT OF THAT, I WOULD HAVE TO DEFER TO MY LEGAL ON THAT, HOW THAT WOULD IMPACT THE PROPERTY.
BUT, UM, UH, JUST SO, UH, PEOPLE KNOW, UH, KING, I, I KNOW, UH, AS D'S BEEN AROUND, YOU KNOW, FOR SEVERAL DECADES AND DONE SOME GREAT WORK HERE IN DALLAS.
UH, HOW MANY UNITS, UH, DO THEY MANAGE IN DALLAS NOW, AND HOW MANY PEOPLE ARE THEY SERVING? SO WE, WE MANAGE, UH, FIVE APARTMENT COMPLEXES, HOUSING ABOUT 321 INDIVIDUALS.
AND THEN WE'VE CO-DEVELOPED AN ADDITIONAL 400 SENIOR PROPERTIES, UH, IN OTHER, OTHER PARTS OF THE COUNTY.
SO TOTALING ABOUT 800, 800 UNITS TOTAL THAT ARE KIND OF UNDER OUR OWNERSHIP PORTFOLIO.
AND, UM, I ALSO WANTED TO SAY, YOU KNOW, HAVING SOCIAL SERVICES AT, UM, I DEAL WITH A NINE TO 4% TAX CREDIT DEVELOPMENTS AS WELL MY OTHER LIFE.
AND, UH, I KNOW THAT IS ONE OF THE ITEMS THAT NOW THE STATE IS REQUIRING IS TO HAVE, UH, MORE SOCIAL SERVICES OR SOCIAL ENGAGEMENT OR OPPORTUNITIES FOR ENGAGEMENT ON PROPERTIES ACROSS TEXAS.
SO I ALWAYS THINK THAT IS A GOOD THING TO HELP PEOPLE, UH, GIVE THEM A HELP, GIVE THEM A HAND UP, YOU KNOW, AND HELP THEM OUT IN THEIR DAILY LIVES.
SO I, I DO ALWAYS LIKE THOSE PARTS OF THE, UM, EQUATION THAT YOU'RE DOING HERE.
THANK YOU VERY MUCH, AND I'LL LET DIRECTOR TELLIS, THANK YOU FOR YOUR PRESENTATION.
UM, I'D LIKE TO BETTER UNDERSTAND, UH, THE BOND, THE INDUCING OF, UH, BOND FINANCING.
SO I THINK, UM, WE KIND OF JUMPED THE GUN A LITTLE ON THE QUESTIONS.
WE HAVE BARRETT HERE WHO'S, WHO'S THE, UH, PARTNER HERE.
WE WILL, WE'LL GET INTO A LITTLE MORE OF THAT, UH, SO WE COULD KIND OF SEED A COUPLE MINUTES TO HIM AND THEN HAVE SOME MORE QUESTIONS, I GUESS.
UH, AND THANKS ALSO TO JIM PLUMMER, AND THANK YOU TO THE BOARD FOR, FOR HAVING US AGAIN.
UM, SO I'M WITH, WITH VO EQUITY PARTNERS.
UM, VOY HAS SECURED SEVERAL PFC PROJECTS WITH BOTH THE CITY OF DALLAS AND SAN SAN ANTONIO HOUSING AUTHORITY OVER THE PAST YEAR TO CREATE ABOUT 900 UNITS OF, OF AFFORDABLE HOUSING.
UM, AND OVER THE PAST DECADE, WE'VE BEEN INVOLVED WITH THE OWNERSHIP RENOVATION MANAGEMENT DEVELOPMENT OF SEVERAL THOUSAND UNITS.
AND MOST OF THOSE HAVE BEEN IN THE CITY OF DALLAS.
SO WE WILL BE THE PROJECT MANAGER ON THIS.
THAT MEANS WE WILL NOT HAVE ANY OWNERSHIP, BUT WE'LL HELP WITH THE ASSET MANAGEMENT, THE FINANCING, THE CONSTRUCTION MANAGEMENT, THINGS LIKE THAT, TO, TO MAKE SURE THAT THIS PROJECT SUCCEEDS OVER A VERY LONG-TERM HOLD PERIOD, WHICH IS ASDS INTENTION.
UM, BUT AGAIN, THEY WILL BE THE SOLE OWNER OF THE PROJECT.
SO, AS TRA SAID, UH, IT'S CLEAR THAT WE'RE HERE WITH A PURPOSE, AND WE, WE THINK THAT THIS DIRECTLY ADDRESSES DALLAS'S AFFORDABLE HOUSING PROBLEM, BUT MORE DIRECTLY THAT ASD HAS AN ISSUE, UH, AS A 5 0 1 C THREE, AND THEY NEED A PLACE FOR THEIR GRADUATES TO MOVE AFTER THEY'VE GONE THROUGH JOB TRAINING, AFTER THEY'VE REALLY GONE THROUGH A CRITICAL PERIOD.
NOW THEY NEED SOMEWHERE, ONCE THEY'RE AT A 60% AMI LEVEL, ONCE, MAYBE THEY NEED EVEN MARKET RATE HOUSING, BUT MAYBE A FEW SOCIAL SUPPORT SERVICES.
AND THIS RIVIERA APARTMENTS PROJECT REALLY NEEDS THAT GOAL.
AND SO WHAT WE'RE SEEKING TODAY IS APFC PARTNERSHIP TO SECURE A TAX ABATEMENT FOR THIS 244 UNIT PROJECT BUILT IN THE 1980S.
UM, IT'S DIFFERENT THAN ANYTHING YOU'VE DONE BEFORE.
IT WOULD BE THE FIRST ACQUISITION PFC IN DALLAS.
IT WOULD ALSO HAVE THE DEEPEST AFFORDABILITY OF ANY PROJECT THAT DALLAS PF C'S EVER DONE.
AND I BELIEVE IT WOULD BE THE FIRST 5 0 1 C PRE PARTNERSHIP, UH, IN JUNE WHEN THE STATE LEGISLATURES CHANGED THE PFC RULES, IT SEEMED LIKE THE MESSAGE WAS CLEAR, AT LEAST TO US, THAT THE ONLY ACQUISITION PFC DEALS THAT COULD GET DONE HAD TO HAVE A VERY CLEAR, HAD HAD TO CLEAR VERY HIGH HURDLES.
AND WE BELIEVE THAT WE'VE WORKED INTERNALLY AS WELL AS WITH AARON AND, AND JIM PLUMMER, TO MAKE SURE THAT THIS DEAL NOT ONLY CLEARS THOSE HURDLES, BUT, BUT JUMPS VERY HIGH OVER THEM.
UM, AND SO REGARDING RENOVATION, WE'VE SET A VERY CLEAR CAPITAL EXPENDITURE PLAN TO MAKE SURE THAT THE, THE PROPERTY SUCCEEDS REGARDING AFFORDABILITY, WE PUT 75% OF THE UNITS AT 60% AMI.
UM, AND SO SOME OF THE MECHANICS BEHIND THAT THAT ARE LAID OUT IN THE MOU, BUT I JUST WANTED TO GO THROUGH THEM UNDER THE NEW LEGISLATION, A PROJECT SPONSOR HAS TWO OPTIONS WHEN IT COMES TO RENOVATION.
UH, NUMBER ONE, IF I WANNA JUST DO WHAT WE'RE KIND OF DOING ON EVERY NEW DEVELOPMENT, THAT MEANS I CAN DO 10% AT 60% AMI AND 40% AT 80% AMI.
[00:30:01]
THEN I HAVE TO SPEND 15% OF THE PROJECT COST ON RENOVATIONS.HOWEVER, IF I DO 25% AT 60% AMI AND 25% AT 80% AMI, SO DEEPER AFFORDABILITY, THEN I ACTUALLY HAVE NO RENOVATION REQUIREMENTS IN ORDER TO GET APFC.
SO WHAT WE'VE DONE IS WE CAME IN AND WE SAID, OKAY, WELL, WE KNOW WHAT THE HURDLES ARE.
IF WE DO DEEPER AFFORDABILITY, WE DON'T HAVE ANY RENOVATION REQUIREMENTS, HOWEVER, WE'RE GONNA DO BOTH.
WE'RE GONNA DO DEEPER AFFORDABILITY, IN FACT, FAR DEEPER THAN IS REQUIRED, 75% AT 60% AMI, AND WE'RE GOING TO SPEND OVER 15% OF THE ACQUISITION COSTS AND RENOVATIONS TO, TO ENSURE THE LONG-TERM SUCCESS OF THE PROJECT.
SO BELT AND SUSPENDERS ON THE RENOVATION, UH, PLAN.
AND, UM, FURTHER THAN THAT, I THINK THE, THE NEW LEGISLATION ALSO SAID, HEY, YOU HAVE TO CREATE A BIG PUBLIC BENEFIT ON ACQUISITION PFCS.
SO THEY SAID, IF YOU'RE GOING TO ABATE TAXES ON AN EXISTING PROJECT, THEN SIX, THAT TAX ABATEMENT HAS TO EQUAL TO OR EXCEED, UM, OR I'M SORRY, THE, THE RENT REDUCTION HAS TO EQUAL OR EXCEED 60% OF THE TAX ABATEMENT.
AND SO THAT MATH IS OUTLINED ON THIS SLIDE, ON THE NEXT SLIDE, SORRY, AARON, UM, OR SAM, WHOEVER'S DOING IT.
UM, BUT ESSENTIALLY WHAT WE'VE DONE IS WE'VE SAID, OKAY, WELL, THE, THE RENT REDUCTION THAT WE'RE CREATING IS EQUAL TO ABOUT $420,000, AND THE TAXES THIS YEAR ARE $580,000.
SO WE'RE CERTAINLY MEETING THE HURDLE, HOWEVER, ASD IS A 5 0 1 C THREE, AND WHEN THEY BUY THIS PROPERTY WITHOUT THE PFC, THEIR TAXES WOULD BE REDUCED TO $290,000.
SO NOW THEY'RE CLEARING THIS HURDLE BY CREATING 140% OF PUBLIC BENEFIT BASED ON THE TAXES ABATED.
SO WE'RE REALLY, AGAIN, BELT AND SUSPENDERS CREATING A LOT MORE THAN THE LEGISLATION ACTUALLY CALLS FOR.
AND I THINK THE LEGISLATORS HAD AN IDEA THAT THIS TYPE OF PROJECT MIGHT HAPPEN BECAUSE THE LEGISLATION ACTUALLY SAYS, UH, THE CALCULATION SHOULD BE MADE BASED ON THE SECOND, THIRD, AND FOURTH YEAR OF TAXES, NOT ON THE YEAR GOING IN.
AND THEN THE LAST THING I'D LIKE TO TOUCH ON IS THE GROUND RENT.
UM, WE'VE ASKED FOR $250 PER UNIT PER YEAR, WHICH ON AN ABSOLUTE DOLLARS IS LOWER THAN ANYTHING DALLAS PFC HAS EVER DONE.
UM, SO THERE MIGHT BE SOME STICKER SHOCK, BUT I WANT TO MAKE IT CLEAR THAT WE'VE ASKED FOR THAT DOLLAR AMOUNT BASED ON THE EXACT SAME CALCULATION THAT DALLAS PFC HAS USED, UH, MANY TIMES BEFORE WE'VE TAKEN, UH, THE ACQUISITION COST, THEN WE'VE TAKEN 80% OF THAT, UM, THEN WE'VE APPLIED THE MILL RATE, AND THEN WE'VE TAKEN A PERCENTAGE OF THAT.
THE ONLY DIFFERENCE HERE IS THAT WE'VE SAID, ASD, UH, GETS A 50% ABATEMENT ON ITS OWN, AND SO WE'VE TAKEN 50% OF THE, OF THE TAXES THAT WOULD'VE BEEN RECEIVED.
AND SO THERE WAS A REDUCTION IN THE INTERIM.
UM, AND SO THAT WAS THE ONE DIFFERENCE HERE BECAUSE OF THE MISSION AND BECAUSE OF THE 5 0 1 C STATUS OF THE APPLICANT.
UM, SO THOSE WERE THE THREE MAJOR THINGS.
BUT I THINK THE, THE MAIN POINT IN ALL OF THIS IS THIS PROJECT IS DIFFERENT.
THE LEGISLATION CHANGED IN JUNE, AND THIS IS A PROJECT I BELIEVE THAT WE CAN BE PROUD OF THAT AT THE NEXT LEGISLATIVE SESSION IN AUSTIN.
THIS WILL REALLY BE A MODEL PROJECT THAT DALLAS PFC COULD GO AND SPEAK ABOUT AND SAY, HEY, THE GUIDELINES CHANGED.
AND THIS IS A MODEL FOR, FOR GOING FORWARD IN THE FUTURE.
UM, SO WE'RE GRATEFUL TO BE HERE TODAY WITH THIS UNIQUE PROJECT, DIFFERENT THAN ANYTHING WE'VE DONE BEFORE AND YOU HAVE DONE BEFORE.
AND, UM, THIS IS REALLY A PIECE OF THE PUZZLE THAT'S ABSOLUTELY NECESSARY FOR, FOR THIS PROJECT TO GO FORWARD.
AND I, I JUST WANNA ADD ONE LITTLE PIECE HERE.
JIM, IF YOU COULD PIPE UP IF I SAY ANYTHING OUT OUT OF TURN.
UM, BUT I DO WANT TO POINT OUT, WE ARE INDUCING A TAX EXEMPT BOND.
SO THAT'S SOMETHING ELSE YOU GUYS HAVE NEVER DONE AS APFC.
YOU ARE AUTHORIZED TO DO IT AS AN ISSUER OF TAX EXEMPT BONDS IN THE STATE OF TEXAS.
UM, BUT WE JUST HAVEN'T DONE IT YET.
YOU KNOW, MOST OF THAT STUFF HAS BEEN DONE BY THE HFC, BUT, UM, TO FINANCE THIS, THEY'RE GONNA USE A TAX EXEMPT BOND TO, TO FINANCE THE WHOLE THING.
UM, AND SO AS PART OF OUR RESOLUTIONS THAT JIM IS PREPARED TODAY, THAT'S AN INDUCEMENT.
IS, UH, PART OF THAT, UH, JUST WANTED TO POINT THAT OUT.
UH, JIM, DID I SAY ANYTHING OUTTA TURN HERE? UH, NO.
I THINK THE ONLY THING I WANT TO ADD IS THAT TODAY
[00:35:02]
WE ARE ASKING YOU FOR A TRUE MENT.UM, WE'RE ASKING YOU, ARE YOU WILLING TO LET US WORK ON THIS PROJECT AND MOVE IT FORWARD? YOU'RE NOT BOUND TO DO THIS PROJECT.
YOU ARE NOT BOUND TO ISSUE ANY BONDS, BUT WE WANT TO START WORKING THROUGH THE PROCESS.
'CAUSE FRANKLY, WE THINK THIS IS A REALLY GOOD PROJECT.
AND SO WHAT WE'RE ASKING YOU TODAY IS TO REALLY TELL US, YES, WE WOULD LIKE TO TRY AND FIND A WAY TO MAKE THIS PROJECT WORK.
UM, WE HAVE A DRAFT TERM SHEET.
WE KNOW KIND OF WHAT THE FINANCIAL TERMS ARE.
THE BONDS HAVE NOT BEEN STRUCTURED YET, SO WE'VE GOT TO GET THOSE FINANCIAL TERMS AND BRING THEM BACK TO YOU.
BUT THE TAX EXEMPT BOND WILL BE WHAT'S COMMONLY CALLED A CONDUIT ISSUE.
YOU WOULD ISSUE THE BONDS, AND THE BONDS WOULD SAY THAT THEY ARE NOT A LIABILITY OF THE PUBLIC FACILITY CORPORATION.
THEY ARE ONLY PAYABLE FROM THE PROJECT.
AND SO THE LIABILITY FOR THESE BONDS IS OF THE DEVELOPER, AND IN THIS CASE AID SERVICES AND THE GUARANTOR.
YOU WOULD NOT HAVE LIABILITY IF THESE BONDS SOMEHOW DEFAULTED.
THIS IS A VERY COMMON STRUCTURE THAT THE HFC DOES IN EVERY TAX CREDIT DEAL.
THE BONDS ARE ONLY PAYABLE BY THE ENTITIES.
WE HAVE HAD OVER THE LAST 30 YEARS, A COUPLE OF BONDS DEFAULT, AND THERE IS NO LIABILITY ON THE ISSUE.
UM, THIS IS YOUR FIRST BOND ISSUE TO LOOK AT.
UM, AND, BUT IT IS A VERY, VERY COMMON STRUCTURE, UM, USED THROUGHOUT THE STATE.
AND I'LL BE HAPPY TO GO INTO MORE DETAIL.
ALTHOUGH I TELL YOU THE, THE FINANCING'S NOT COMPLETELY STRUCTURED AT THIS POINT.
UM, WE WILL GET CLOSER AND WE'LL BRING THAT BACK TO YOU FOR YOUR CONSIDERATION.
UM, AND YOUR ACTIONS TODAY ARE SIMPLY TELLING US, HEY, GO TRY TO PUT THIS DEAL TOGETHER AND BRING IT BACK TO US FOR FINAL IMPROVEMENT.
UH, WHAT TYPE OF TIMELINE ARE YOU LOOKING AT IN THIS NEGOTIATION? HOW LONG WILL IT TAKE Y'ALL TO STRUCTURE THE BOND ISSUE AND BE READY TO COME BACK? SURE.
SO WE HAVE THE UNDERWRITING COMPLETED WITH JEFFERIES.
UM, SO OVER THE NEXT SEVERAL WEEKS, WE SHOULD BE WORKING ON, UH, A BOND PACKAGE READY FOR SALE, ESSENTIALLY.
SO ARE YOU EXPECTING WE WOULD BE BACK IN DECEMBER OR JANUARY? HOPEFULLY DECEMBER.
SO, UM, IN TERMS OF THE TRANSITION RULES UNDER HOUSE BILL 2071, WE BELIEVE THIS PROJECT MEETS THOSE RULES.
AND I WILL TELL YOU THAT THERE HAS NOT BEEN ANOTHER DEAL LIKE THIS DONE WITH THIS LEVEL OF DEEP AFFORDABILITY IN THE STATE.
UM, SO I DO BELIEVE THAT, THAT AT THE END OF THE DAY, THIS WILL BE A PROJECT THAT WILL BE HELD UP BY THE LEGISLATURE AS SAYING, YES, THIS IS THE TYPE OF THING THAT WE WANTED YOU TO GO DO IN THE ACQUISITION SCENARIO.
DIRECTOR TALLIS, I JUST WANNA MAKE SURE I UNDERSTAND, UM, THE PAYMENTS THAT WOULD WE WOULD BE RECEIVING ARE LESS THAN WHAT THE CURRENT PROPERTY TAXES ARE.
SOMETHING WE HAVE REALLY NOT DONE BEFORE.
AND THEN WE ADD THAT TO, AND I'M NOT SAYING THERE'S NOT A NEED FOR THIS TYPE OF FINANCING, RIGHT.
UM, WE JUST LOOKING AT HOW WE ARE VIEWED BY THE PUBLIC, AND, UM, MAKING SURE WE THINK THROUGH THAT.
IF WE APPROVE THIS, WE'RE NOT GONNA BE SUBJECT TO ADDITIONAL CRITICISM, WHICH WE HAVE BEEN SUBJECT TO ON ON MANY TIMES.
[00:40:01]
I, I, I'M NOT SAYING THERE'S NOT A NEED FOR THIS TYPE OF, OF HOUSING, I'M SAYING IT'S A LITTLE BIT OUTSIDE OUR WHEEL BOX.AND THAT'S, THAT'S WHY WE HAVE ALL THESE DISCLAIMERS.
YOU KNOW, WE, WE KNOW IT'S, IT'S A LITTLE OUTSIDE OF OUR NORM.
UM, BUT IT'S, I MEAN, OBVIOUSLY YOU GUYS ARE THE ONES WITH THE VOTES.
IS IT, IS IT WORTH THE PERCEIVED POLITICAL OR, OR, YOU KNOW, SOCIAL RISK TO SAY, ALL RIGHT, YOU KNOW, WE, WE SEE THIS PROJECT, IT'S VALID ENOUGH TO, TO DEVIATE FROM OUR NORM TO, TO KIND OF GIVE THEM A LITTLE BIT OF A BREAK ON, ON THOSE RENT PAYMENTS TO, TO REALLY GET SOMETHING WORTHWHILE DONE.
SO, AND DIRECTOR TAAS, WHAT WE BELIEVE IS THAT THE RENT REDUCTION THAT WE'LL BE MAKING AT THIS PROPERTY IS OVER $400,000 A YEAR.
AND THE TAXES AT THIS PROPERTY WOULD BE $290,000 A YEAR.
SO THE PUBLIC BENEFIT CREATED AT THIS PROJECT IS FAR IN EXCESS OF WHAT THE TAXES WOULD'VE BEEN, WHICH IS A, A VERY RARE THING, UH, AMONGST ALL THESE DEALS.
COMMISSIONER TALLIS, LET ME ADDRESS THAT DIRECTLY WITH A COUPLE THINGS.
ONE, TAX CREDIT DEALS ARE DONE EVERY DAY WITH 75% AT 60%, AND 25%, OFTEN AT A 70 OR 80% NUMBER.
UM, AND THEY DO NOT GET CRITICIZED BECAUSE THE NEED FOR THE 60% UNITS IS SO GREAT IN THE COMMUNITY.
BUT WE RAN THIS THROUGH OUR TYPICAL ANALYSIS.
WE LOOKED AT WHAT ARE THE, THE RENT REDUCTIONS AND WHAT IS THE INCOME THAT COMES TO YOU, AND WHAT PERCENTAGES OF THE TAXES DOES THAT EQUAL OVER A 15 YEAR PERIOD? AND THAT ACTUALLY EQUALS 73.73% OF THE TAXES OVER A 15 YEAR PERIOD, WHICH IS PRETTY COMPARABLE TO MANY OF THE PROJECTS THAT WE HAVE DONE THAT HAVE 10% AT 60% AND 40% AT 80.
SO FROM A COMMUNITY BENEFIT PERSPECTIVE, THIS PROJECT IS ON PAR WITH YOUR OTHER PROJECTS THAT YOU HAVE DONE IN COMPARING THE RENT REDUCTION PLUS THE INCOME TO THE TAXES THAT WOULD BE PAID.
AND, AND BY THE WAY, THAT CALCULATION WAS DONE ON FULL TAXES.
UM, SO WE THINK THAT, THAT THIS PROJECT MEETS THE NORMAL TAX METRIC, AND WE THINK THAT DELIVERING 75% AT 60% WILL BE VIEWED VERY FAVORABLY IN THE COMMUNITY.
DIRECTOR OF TOLEDO AFTERNOON, APPRECIATE THE, UH, PRESENTATION.
UM, UH, IT'S A LOT TO UNPACK, SO I'M NOT SAYING WE'RE GONNA SAY YES OR NO TODAY, BUT, YOU KNOW, CERTAINLY WARRANTS A MORE OF A CONVERSATION, BUT MOST OF MY QUESTIONS ARE ANSWERED, UH, REGARDING THE BOND.
AND, UM, KIND OF CURIOUS AS THAT.
I WAS, ONE, ONE QUESTION THAT COMES UP IS, ARE WE BEING, IS THE CITY BEING REWARDED FOR INDUCING THE BOND OUTSIDE OF THE LEASE? I JUST, I JUST, YOU KNOW, JUST FOOD FOR THOUGHT, FORGETTING WHAT, $55 MILLION OR, OR WHATEVER IT IS THAT TO, TO, TO NOT COME OUT OF POCKET AT ALL FOR THE ENTIRE DEVELOPMENT, YOU KNOW, MAKES ME KIND OF WONDER, YOU KNOW, THE, THE NEXT PERSON THAT COMES IN AND ASKS FOR THAT, WHAT DO, WHAT DO WE TELL THEM? SO I JUST, JUST THROW THAT OUT THERE.
CAN I ANSWER THAT BEFORE WE MOVE ON? I'M SORRY.
CAN I ANSWER THAT BEFORE WE MOVE ON? PLEASE DO.
PLEASE JUMP THE, IN THIS PARTICULAR DEAL, BECAUSE IT'S A NON-PROFIT DEAL, SAVOY HAS WAIVED ITS DEVELOPER FEE, BUT WE HAVE NOT, WE'RE CHARGING A 0.7% DEVELOPER FEE IN THIS TRANSACTION.
UM, AND WE DON'T NORMALLY CHARGE A DEVELOPER FEE.
WE'RE GETTING OUR NORMAL $250,000 UPFRONT FEE.
WE'LL GET OUR 25% OF SALES TAX SAVINGS, UM, AND WE WOULD GET 2% ON THE SALE OF THE PROJECT.
AND SO I THINK YOU CAN ANSWER PEOPLE BY SAYING THAT, YES, WE ARE BEING COMPENSATED THROUGH THE PROJECT FOR THE ISSUANCE OF THE BONDS.
UM, THE OTHER THING I WANT TO POINT OUT THAT IS, I THINK GONNA BE VIEWED FAVORABLY THAT NOBODY HAS MENTIONED THIS IS ONLY A 30 YEAR LEASE.
SO INSTEAD OF HAVING A 75 YEAR DEAL, THIS ONE RIGHT NOW IS 30 YEARS.
AND AT THE END OF 30 YEARS, THEY CAN EITHER EXTEND OR THEY CAN BUY YOU OUT BY PAYING YOU A FEE OF 7% OF THE FAIR MARKET VALUE OF THE PROJECT.
[00:45:01]
UM, THE QUESTION I HAD WAS, UM, THIS, YOU KNOW, CERTAINLY SUPPORTIVE OF, OF PROVIDING AFFORDABILITY AND THE RICHON SCHOOL DISTRICT IN GOOD AREAS AND, AND WHAT HAVE YOU.BUT QUESTION HERE IS THAT PORTION OF DISTRICT 10, I THINK IS KNOWN.
THERE IS A HUGE NIMBY WE DON'T WANT ANYMORE.
WE HAVE OUR SHARE OF LIGHTS ACT.
THEY'RE GETTING A HOMELESS HOTEL ON FOREST.
THERE'S ANOTHER DEAL ON, YOU KNOW, THERE'S TWO OTHER THINGS ON BOARD.
SO THIS, THIS PARTICULAR COMMUNITY KIND OF FEELS LIKE THEY'VE, YOU KNOW, THEY'VE CERTAINLY ABSORBED THEIR SHARE OF LITECH AND LITECH TYPE DEALS.
I DON'T REPRESENT THAT COMMUNITY, SO THAT'S NOT REALLY, UM, I'M NOT GONNA TAKE IT ANY FURTHER.
I DO WANNA ASK THOUGH, DID YOU TALK TO COUNCILMAN MAGOO OR COUNCILWOMAN, UH, STEWART ABOUT THIS PROJECT? WE REACHED OUT.
UH, SO IT'S A NEW COUNCIL COUNCILWOMAN, SO WE DO NOT HAVE A, AN EXISTING RELATIONSHIP WITH HER, BUT WE'VE REACHED OUT AND HAVE NOT HEARD BACK.
AGAIN, AND I, I REALIZE IT'S ALREADY BEING USED FOR MULTIFAMILY.
I REALIZE IT'S ALREADY, YOU KNOW, BELOW MARKET RATES.
BUT I, I, I DO WANNA BRING THAT UP.
AND IT CERTAINLY, YOU KNOW, A QUESTION THAT, YOU KNOW, IT'S, UM, DON'T WANNA MAKE ANY DECISIONS WITHOUT, YOU KNOW, HAVING THAT KNOWLEDGE, BECAUSE IF THIS WERE A LIFE TECH DEAL, BRAND NEW, YOU TEAR DOWN A PARKING LOT, IT WOULD NEVER PASS.
IT WOULD BE CONCENTRATION OF POVERTY.
I MEAN, YOU KNOW, LIGHT BY BLANK.
SO I WANNA UNDERSTAND THE, UM, THE DEBT REAL QUICK.
UM, FIRST OF ALL, ON PAGE 79, IT SAYS THE HFC, I'M ASSUMING THAT'S THE MEANT TO BE THE PFC IS ISSUING THE DEBT.
UM, AND THEN SECONDLY, SINCE THIS IS OUR, OUR FIRST, UM, ISSUANCE, JIM, IS IT COMMON, UM, TO HAVE A HUNDRED PERCENT DEBT, UM, WITHOUT A, AN EQUITY COMPONENT? IT IS, IT IS NOT COMMON IN A TAX CREDIT DEAL OR OTHER DEALS, BUT IT IS COMMON IN A 5 0 1 C THREE FINANCING OR AN ESSENTIAL FUNCTION BOND FINANCING.
THE DEBT WILL REQUIRE, IT'LL HAVE A SERIES A COMPONENT, WHICH YOU WOULD THINK OF AS THE FIRST LIE DATA THAT HAD A SERIES B COMPONENT, WHICH I WILL TELL YOU EFFECTIVELY REPLACES THE EQUITY.
AND IT WILL BE A HIGH INTEREST RATE, HIGH RISK COMPONENT THAT WILL BE PRIVATELY PLACED, UM, WITH SOMEBODY WHO IS WILLING TO STEP IN AND TAKE THAT CHANCE.
I DON'T KNOW WHETHER SAVOY HAS AGREED TO BUY THAT DEBT OR NOT.
UM, BUT IT WOULDN'T SURPRISE ME IF THEY HAD NOT AGREED TO BUY THAT DEBT.
AND, YOU KNOW, ALONG THOSE LINES, WHAT'S OUR RISK FOR, UM, NOT FINDING A MARKET, UM, FOR THIS DEBT THAT, THAT HAPPENED TO THE HFC RECENTLY? IT HAS, UH, ON HFC PROJECTS, THE DIFFERENCE BETWEEN HFC PROJECTS, AND THESE ARE THE, THE NEW CONSTRUCTION HFC PROJECTS ARE TYPICALLY TRADING STILL AT, YOU KNOW, FOUR AND A HALF, 5% CAP RATES.
AND THIS PROJECT IS AT A SIGNIFICANTLY HIGHER CAP RATE.
SO THERE'S CASHFLOW TO SUPPORT THE BONDS.
SO NOW I'M GOING TO KIND OF DIVE INTO SOME OF THE OTHER THINGS THAT, UM, UM, THIS, THE DEEPER AFFORDABILITY, UM, BECAUSE NOW I THINK YOU'RE RIGHT.
YOU KNOW, THERE, THERE'S A, A RISK HERE, UM, WITH, I THINK THERE ARE REASONS FOR IT, AND IT'S UP TO US COLLECTIVELY.
AND CERTAINLY WHEN THIS IS PRESENTED TO COUNCIL TO ARTICULATE, UM, THOSE REASONS WHY, UM, I, I THINK THE FOREGONE TAXES, UM, NEED TO REFLECT, UM, AID SERVICES OF DALLAS BEING THE, THE, UH, THE OWNER VERSUS WHAT FANTASY LAND WOULD LOOK LIKE IF WE PUT UP A MARKET RATE, UM, DEAL THERE.
UM, AND THAT, AND THAT'LL BE PRETTY SIGNIFICANT.
UM, SO THE, THE OTHER PIECE IS, UM, DEEPER AFFORDABILITY.
SO BARRETT, UM, AND HUNT, YOU AND I HAVE CHATTED ABOUT HAVING A TRANCHE AT AT 30%.
AND, UM, TRI, WELL, MAYBE YOU CAN CAN SPEAK TO THIS BECAUSE YOU GUYS MENTIONED IT KIND OF, UM, AT ONE POINT DURING OUR CONVERSATION.
UM, BUT, UH, HELP ME UNDERSTAND, 'CAUSE MY, MY THOUGHT PROCESS IS I DO THINK WE NEED DEEPER AFFORDABILITY AND, AND THERE'S A, UH, UH, THERE'S A NEED FOR 30% AMI, UM, THAT'S VERY APPARENT.
UM, AND SO I HAD, I HAD ASKED FOR YOU ALL TO CONSIDER A, A 5% TRANCHE AT 30% AMI, UM, WHICH WOULD BE WHAT, UM, 14 UNITS, SOMETHING LIKE THAT.
UM, BUT TRA WELL, YOU WERE, YOU WERE SAYING THAT, UM, YOU HAVE OTHER OPTIONS
[00:50:01]
FOR THAT, AND THAT THIS IS A, A, THIS PROPERTY SERVES A DIFFERENT PURPOSE THAN PERHAPS WHAT, UM, SOME OF THE OTHER PROPERTIES YOU OWN, THAT, THAT WOULD HOUSE 30% AMI.SO CAN YOU SHARE A LITTLE BIT ABOUT THAT? SURE.
UM, OUT OF OUR FOUR UNITS THAT WE'VE DEVELOPED, UH, THEY'RE ALL 30%, UH, OR BELOW AS A CAP.
UM, OUR RECENT, OUR MOST RECENT DEVELOPMENT HAS A 30 TO 80%, UM, AMI.
UM, BUT FOR THIS PROPERTY, QUITE FRANKLY, BASED ON THE SERVICES AND THE PARTNERSHIPS THAT WE WOULD HAVE FOR SUBSIDY OPPORTUNITIES, UM, MORE THERE, IT'S MORE THAN LIKELY THAT WE WOULD HAVE SEVERAL UNDER THE 30%.
I WAS JUST SUGGESTING THAT THE RESTRICTED AND THE, THE CRITERIA BEING SET, UM, MANDATING, IT WAS A LITTLE BIT MORE RESTRICTIVE.
BUT, UH, NOT THAT I DOUBTED THAT WE WOULD HAVE MORE THAN 14 AT THAT 30% AMI AND IF I'M, IF I'M NOT CONFUSING THINGS.
SO HOW MANY UNITS DO YOU HAVE AT 30% AND BELOW NOW? UM, 105.
AND, UH, BY THE WAY, UM, STAFF ALL THE WAY AROUND IT, IT'D BE REALLY HELPFUL TO HAVE THESE PACKETS EARLIER, UM, BECAUSE THESE ARE OUR CONVERSATIONS THAT WE CAN START TO HAVE, AND I THINK THIS IS A REALLY IMPORTANT CONVERSATION, AND WE KIND OF, UM, SQUEEZED IT IN INSIDE OF A DAY.
SO I'M ASKING QUESTIONS I DON'T KNOW THE ANSWER TO RIGHT NOW, UM, WHICH IS NOT THE NORM.
SO VERA, WHAT, TELL US THE IMPACT OF ADDING 30% UNITS.
'CAUSE I, YOU RAN THOSE NUMBERS TO SEE WHAT IT WOULD LOOK LIKE.
SO SHARE WITH EVERYONE, UM, WHAT YOU CAME UP WITH AND WHAT IT WOULD LOOK LIKE IF WE, WE ADDED A TRANCHE AT 30%.
SO THE MATH BEHIND IT IS THAT IF I SWITCH A 60% UNIT WITH A 30% UNIT, THAT'S A FURTHER RENT REDUCTION OF ABOUT $500.
SO THAT UNIT COSTS $6,000 A YEAR IN RENT A DECREASE.
UM, AND THE GROUND RENT NOW THAT WE'VE ASKED FOR IS, IS 60,000 PER YEAR.
SO IF WE TAKE, AS YOU SAID, 5% OF THE UNITS AND SWITCH THEM FROM 60% TO 30% AMI, WELL NOW OUR INCOME GOES DOWN $72,000.
AND SO TO OFFSET THAT, WE WOULD NEED THE GROUND RENT TO GO BELOW ZERO OR ESSENTIALLY TO ZERO TO HAVE A WASH IN THE ECONOMICS OF THIS DEAL.
AND, UM, FOR THE, THE BROADER BOARD, UH, YOU KNOW, MY MY POINT IN THAT IS THAT, UM, THERE IS AN OPPORTUNITY TO, TO HAVE DEEPER AFFORDABILITY IF WE THINK THAT THAT'S A, UM, THAT'S A NEED.
IN THIS PARTICULAR CASE, I'M STILL NOT A HUNDRED PERCENT CERTAIN.
I, I, I JUST DON'T KNOW, YOU KNOW, UM, UM, IT, IT SEEMS LIKE IT, UM, BUT I DON'T KNOW THAT A HUNDRED PERCENT.
UM, BUT IN DOING THAT, UM, I, I RECOGNIZE THAT THIS DEAL'S A LITTLE BIT DIFFERENT, YOU KNOW, AND THIS IS NOT BARRETT, UM, WHAT YOU AND SETH WOULD NORMALLY DO.
UM, AND, AND SO, YOU KNOW, IF WE DO WANT TO HAVE SOME DEEPER AFFORDABILITY, WE'RE, WE'RE GONNA HAVE TO FIND A PLACE TO PARTICIPATE IN THAT AS A, AS APFC.
UM, AND, UH, YOU KNOW, THAT'LL, THAT'LL TAKE SOME PENCIL SHARPENING.
UM, BUT, UM, I, I, IT JUST, IT FEELS LIKE WE MIGHT BE LEAVING SOME 30% UNITS ON THE, ON THE TABLE IF, IF WE DON'T FULLY EXPLORE THIS.
UM, UH, TO ECHO SOME OF THE, UH, CONCERNS HERE WITH THE REST OF, UH, MY PEERS, UM, LET ME ASK A COUPLE OF QUESTIONS.
FIRST, UH, MR. LEVIS LIVINGSTON, THE THIRD, LET ME ASK YOU A COUPLE OF QUESTIONS.
YOU AND I HAVE KNOWN EACH OTHER MANY YEARS, UM, AS I USED TO BE, UH, IN THE FIELD OF EPIDEMIOLOGY AND, UH, AM FAMILIAR WITH A LOT OF THE, UH, GRANTS AND GRANT MANAGEMENT AND SUPPORTIVE SERVICES THAT ARE OFFERED TO THOSE INDIVIDUALS AND THEIR FAMILIES WHO ARE AFFECTED BY HIV AND AIDS ALSO DID A LOT OF, UH, MONITORING, UH, CONSULTATIONS WITH STAFF AND, AND, UH, MANAGEMENT
[00:55:01]
TO HOPEFULLY FURTHER, UH, THE GOALS THAT, OF THE MONIES THAT YOU WERE AWARDED, UH, BASED ON THE PARTICULAR FUNDER AT THAT TIME, UH, THAT WAS THE STATE.SO, SOME OF MY QUESTIONS RIGHT NOW ARE GONNA COME FROM SOME OF THOSE PERSPECTIVES PERSPECTIVE.
UH, WILL THERE BE SUPPORTIVE SERVICES HERE AT THIS PARTICULAR PROPOSED DEVELOPMENT? YES.
WOULD YOU, UH, LET JUST EXPOUND REAL QUICKLY, BRIEFLY, WHAT SUPPORTIVE SERVICES ARE THAT MAY BE REQUIRED FOR THIS PARTICULAR POPULATION.
SO, YOU KNOW, TRADITIONALLY WITH A LOWER INCOME, UM, PROPERTY, YOU MIGHT HAVE CHALLENGES WITH INCOME OR FINANCIAL MANAGEMENT.
UM, SO FINANCIAL, UM, EDUCATION IS A PART OF OUR SERVICES.
BUDGETING CLASSES AND SKILLS BUILDING CLASSES, AS WELL AS JUST A PATHWAY BACK TO EMPLOYMENT.
SO WE DO VOCATIONAL SERVICES, UH, VOCATIONAL RESOURCES, RESUME BUILDING AND THINGS OF THAT NATURE TO PREPARE INDIVIDUALS FOR WORK.
WE ALSO DO AN EDUCATION PATHWAY, UH, SERVICE WHERE WE'RE COORDINATING AND WORKING WITH THE COMMUNITY COLLEGES TO HELP INDIVIDUALS FIND A PATH TOWARDS A CAREER.
AND THEN LASTLY, WE DO VOLUNTEERISM AS WELL, BECAUSE WE THINK NO MATTER WHERE THEIR INDIVIDUAL CAN BE, WHETHER THEY'RE IN EMPLOYED OR IN EDUCATION, THEY CAN VOLUNTEER AND DO SOMETHING, UH, TO, TO ENGAGE SOCIALLY, WHICH IS ALSO A SKILL TOWARDS INDEPENDENCE.
SO THOSE ARE THE, SOME OF THE, THE, THE MINIMAL SERVICES THAT EVERYONE'S IN AN INDIVIDUAL INDIVIDUALLY BASED AS FAR AS THOSE NEEDS THAT THEY MIGHT HAVE.
AND OBVIOUSLY, THIS PROPERTY IS CURRENTLY OCCUPIED.
UM, SO SOME OF THOSE SERVICE PROVISIONS WILL BE AVAILABLE, UM, BECAUSE THOSE ARE THE THINGS THAT WE ALREADY OFFER.
WILL THERE BE MEDICAL SERVICES AND CASE MANAGEMENT SERVICES THERE ON SITE? THAT IS A PART OF OUR COORDINATION, THE CAPABILITY.
UM, WE WILL HAVE, UH, ACCESS TO NOT ONLY MEDICAL, UH, ENGAGEMENT, UH, MEDICAL ASSESSMENTS, UM, AND SOMETIMES TRANSPORTATION.
IS THIS PROJECT, UH, THE NECESSARY, UH, APARTMENTS THAT WILL BE, UH, IN THE MIX THAT WE HAVE BEEN DISCUSSING, UM, WILL THAT BE ONLY FOR HIV POSITIVE INDIVIDUALS? WE, WE WILL NOT MAKE THE PROPERTY EXCLUSIVE TO INDIVIDUAL HIV.
HOW WILL YOU DECIDE, UH, BASED ON THE OPPORTUNITY THAT WE WILL HAVE A OPEN WAITING LIST, UH, FOR THE OPPORTUNITY AND NOT SOLICIT OR MARKET EXCLUSIVELY FOR HIV POSITIVE? SO THE QUESTION STRICTLY COMES FROM THE FACT THAT YOU GUYS ARE A NONPROFIT, UH, THEREFORE YOU RECEIVE YOUR MONIES FROM THE STATE, COUNTY, FEDERAL, UH, TO TREAT AND TO PROVIDE SUPPORTIVE SERVICES FOR HIV POSITIVE INDIVIDUALS.
UH, YOU KNOW, WE ALL LAW THOSE EFFORTS, BUT IN THIS PARTICULAR VENUE, UH, DEALING WITH, UH, THE CITIZENS' MONEY TAX EXEMPT EXEMPTIONS THAT WE AWARD, UH, FOR VIABLE PROJECTS, USUALLY IT WAS BASED ON INCENTIVIZATIONS TO PARTICULAR AREAS OF TOWN.
SO IN MY MIND, I'M TRYING TO WRAP THIS AROUND, HOW DOES THIS INCENTIVIZE AN AREA WHEN YOU MAY BE EXCLUSIVE, YOU'RE PARTNERING WITH US CITY, BUT YOU MAY BE, UH, EXCLUSIVE TO SERVING ONLY ONE NICHE, ONE POPULATION.
AND HOW DO YOU MAKE THE DETERMINATION IF I AS AN INDIVIDUAL OR ANYBODY, UH, SO TO SPEAK, THAT COMES IN AND THEY MEET THE REQUIREMENTS, BUT YOU NEED TO KNOW PERHAPS WHETHER THEY ARE PART OF YOUR PARTICULAR POPULATION THAT YOU SERVE? GREAT QUESTION.
SO IN OUR PARTICULAR CASE, UH, WE DO HAVE, AND AS YOU KNOW, WE ARE, WE HAVE TO MAINTAIN COMPLIANCE AND ELIGIBILITY, COMPLIANCE ON ANY UNIT THAT WE ARE, UH, SUBSIDIZING FOR OR RECEIVE FOR FUNDING FOR SERVICES FOR.
IT REQUIRES US TO, UM, TO MAINTAIN THAT COMPLIANCE.
THAT'S WHY THIS PARTNERSHIP IS SO LUCRATIVE, BECAUSE IT ALLOWS US THE AFFORDABILITY PIECE FOR AN INDIVIDUAL PERIOD DESPITE, UH, ANY DIAGNOSIS.
SO, UH, FOR EXAMPLE, OUR WAITING LIST CONSISTS OF ABOUT 335
[01:00:01]
INDIVIDUALS CURRENTLY.SO WE'RE NOT ABLE TO HOUSE, UH, THE INDIVIDUALS THAT ARE APPLYING FOR OUR HOUSING NOW.
UM, BUT WE ARE ALWAYS HELPING THEM GETTING LINKED TO HOUSING PROVIDERS IN THE COMMUNITY, THE BROADER COMMUNITY THAT ARE NOT EXCLUSIVE TO HIV, RIGHT? SO WE HAVE A BROAD NETWORK OF PROVIDERS, OF, OF SERVICES FOR PEOPLE THAT ARE NOT LIVING WITH HIV JUST AS WELL.
AND SO FOR THIS PROPERTY WOULDN'T BE EXCLUSIVE TO HIV, BUT IT WOULD BE EXCLUSIVE TO THOSE NEED AFFORDABLE HOUSING.
NOW, IF THEY IDENTIFY THAT THEY HAVE HIV NEEDS, UH, WE WILL CONNECT THEM.
IF THEY IDENTIFY THAT THEY ARE AT RISK FOR HIV BASED ON, UM, UNHEALTHY LIFESTYLE PRACTICES, THEN WE WILL ALSO MAKE THOSE CONNECTIONS.
SO WE HAVE A NETWORK OF SERVICE PROVIDERS THAT WILL ENABLE US TO PROVIDE THE HOUSING AND THE PLATFORM FOR THEM TO PROVIDE ENGAGEMENT FOR SERVICES THAT WILL NOT BE EXCLUSIVELY GIVEN BY US AS AN ORGANIZATION.
THEY'RE THROUGH OUR PARTNERSHIPS WITH MOU ORGAN, UH, PARTNERSHIPS THAT WE HAVE IN THE COMMUNITY.
WE'VE DONE THAT FOR 36 YEARS BECAUSE WE CANNOT PROVIDE ALL OF THE SERVICE NEEDS THAT AN INDIVIDUAL MAY HAVE.
SO WE DEPEND ON THE PARTNERSHIPS THAT WAY.
WILL ALL OF THE, UH, APARTMENTS, WILL ALL OF THE RESIDENTS BE EMPLOYED WHO WILL BE LEASED THESE APARTMENTS? DEFINITELY, UM, NOT, UH, I CANNOT SAY THAT THEY WILL ALL BE EMPLOYED.
AGAIN, IT'S NOT OUR INTENT TO VACATE THE PROPERTY, EITHER THE PROPERTY IS OCCUPIED.
UM, WE WANT TO HAVE SERVICES AVAILABLE THAT GO INSIDE, GO LINK WITH OUR, OUR SERVICE NETWORK, BUT THERE MAY BE INDIVIDUALS THAT ARE RECEIVING SUBSIDY AND ARE UNEMPLOYED.
UM, BUT WE, WE WILL NOT REQUIRE THEM TO BE EMPLOYED, GAINFULLY EMPLOYED TO, TO RESIDE THERE.
BUT WE WILL BE WORKING WITH ANYONE TOWARDS INDEPENDENCE.
WE FOCUS ON THE INCOME OF THE HOUSEHOLD.
SO IT'S ONE OF OUR GOALS TO HELP THAT IN HOUSEHOLD BRING INCOME INTO THAT HOUSEHOLD.
UM, SO THAT'S AN ONGOING EFFORT, BUT BECAUSE THE TIMETABLE ON THAT IS INDIVIDUALLY BASED, WE WILL NOT MANDATE YOU TO BE EMPLOYED AS PART OF THE CRITERIA, UH, TO LIVE THERE.
AND FINALLY, UM, SOME OF YOUR GRANTS ALLOW FOR PAYMENT OF SPACE, CORRECT? YES.
LIKE OFFICE SPACE, YOU MEAN I'M HEADING THERE? YES.
SO YOU WOULD HAVE AN OFFICE SPACE, IF YOU WILL, UH, THAT IS PAID FOR BY OTHER GRANTS AND IS TYING IT, UH, LET'S SAY A SATELLITE QUESTION, IF YOU WILL, OR THERE'S SOME TYPE OF, UH, SPACES THAT ARE PAID FOR THAT WOULD BE LIVING SPACES WHERE 100%, 50%, 30% OF A PARTICULAR DOLLAR OR GRAND AMOUNT WOULD GO TOWARD INSISTING INDIVIDUALS, UH, FOR THEIR RENT TO BE PAID.
UH, I, I DON'T THINK I UNDERSTOOD THE QUESTION.
WELL, DO YOU HAVE MONIES FROM YOUR, UH, FUNDERS THAT ALSO PAY FOR YOUR, UH, POPULATION OR SOME PART OF THAT POPULATION TO BE HOUSED? YES.
WE, I'LL, I'LL ADD TO THAT, UM, HOPWOOD FUNDS AS AN EXAMPLE.
SO WE DO HAVE HOPWA FUNDS, UM, BUT IN ORDER TO MAINTAIN COMPLIANCE, WE DON'T LEASE TO OURSELVES, UH, FROM OUR OWN HOPWA FUNDS.
IF WE'RE GETTING RENTAL ASSISTANCE OR HOPWA RELATED, UH, RENTAL ASSISTANCE, WE WILL NOT, AND YOU CANNOT LEASE TO YOURSELF WHEN YOU'RE GETTING THE PAYMENT THAT THE TENANT IS PAYING FOR LEASING ASSISTANCE AND COLLECTING IT.
YOU CAN'T DO, BUT YOU CAN CHOOSE ONE OR THE OTHER.
SO, AND, AND AGAIN, WE'RE A VAST PROVIDER IN THE COMMUNITY.
WE'RE ONE OF THE LARGEST HOPPER PROVIDERS, AND HOUSING ACCESS IS A HUGE BARRIER FOR MOST OF THE HOPPER RECIPIENTS.
SO THIS PROPERTY WILL ALLOW US TO PARTNER WITH THE DALLAS COUNTY, WHO HAS A BROAD WAIT LIST OF PEOPLE THAT ARE HOPWA ELIGIBLE THAT JUST NEED A SECOND CHANCE, UH, LEASING OPPORTUNITY.
UM, AND THERE ARE OTHER SEVERAL UNDERSTAND NONPROFITS THAT HAVE THOSE.
SO THEY WILL BE LEASING, THEY WILL BE A PART OF THE MARKETING MATERIAL TO ALLOW, UH, RESIDENTS TO LIVE THERE.
WE JUST WON'T PAY THE SUBSIDY AND COLLECT IT, IF YOU UNDERSTAND WHAT I'M SAYING? YES.
IT'S SO GOOD TO SEE YOU, UH, ONCE AGAIN.
UM, I AM CONCERNED THOUGH, UM, THAT, UM, LOT INFORMATION THAT HAS JUST COME UP BEFORE US, UH, RIGHT NOW THAT, UH, I DIDN'T EVEN KNOW
[01:05:01]
WAS PART OF THE MIX, IF YOU WILL, FAR AS PFC AND, AND, UH, HIS DUTIES.MR. PLUMMER HAS BROUGHT UP A LOT.
AND I DON'T KNOW IF, UH, AT SOME POINT WE NEED TO HAVE SOME TYPE OF A MEETING OR SOME EXECUTIVE PERHAPS, WHERE WE NEED TO, UH, DISCUSS SOME OF THESE ISSUES BECAUSE, UM, THIS IS ALL TOTALLY NEW.
AND IF SOMETHING IS, IS, UH, LET'S JUST SAY AS DEEP AS THIS NOW WE'VE, WE'VE EVOLVED TO SOMETHING ELSE, IF I CAN USE THAT TERM.
UH, YOU GUYS HAVE LEFT ME AND I ASSUME, UH, THE REST OF THIS, UH, BOARD, YOU'VE LEFT US OUT OF THE MIX.
SO I DO MY BEST TO PREPARE AS MUCH AS POSSIBLE.
AND, UM, LAST WEEK WITH EACH ISSUANCE OF THIS PACKET, I TEAR IT APART AND I TRY TO STAY ABREAST OF THINGS AS BEST AS POSSIBLE BECAUSE THAT'S PART OF MY DUTY.
SO I TRY TO BE THE PROFESSIONAL IN THIS, AND I, I, I DON'T MEAN TO BE REALLY DRESSING YOU GUYS DOWN, BUT IF YOU TAKE IT LIKE THAT, THAT'S, I'M JUST SINCERE IN WHAT I'M SAYING.
UH, IN OTHER WORDS, UH, I JUST FEEL LIKE I'VE, I'VE, UH, L UM, HEARD A LOT NOW, BUT YET I DON'T KNOW ANYTHING THAT I'M SUPPOSED TO KNOW.
AND SO THESE TYPE OF THINGS CANNOT BE DECIDED.
IT CAN'T BE DECIDED RIGHT NOW AT THE FLIP OF A SWITCH.
SO, ONCE AGAIN, I FEEL LIKE, UM, I'M BEING ASKED AND I'M JUST SPEAKING FOR MYSELF.
I'M, I FEEL LIKE I'M BEING ASKED TO RUBBER STAMP THIS PROPOSAL, YET THERE IS SO MUCH IN THIS THAT DOES NOT MEET TO ME THE INITIAL REQUIREMENTS OF THE STRUCTURE THAT I HAVE BEEN ENVISIONING AND HAVE BEEN HERE FOR TWO YEARS WORKING WITH, AND THIS IS BRAND NEW, BUT YOU GUYS SAY THAT YOU'VE BEEN WORKING ON THIS, YOU KNOW ABOUT IT, BUT WE DON'T, I DON'T KNOW ANYTHING ABOUT IT.
SO LET, LEMME STEP IN JUST A, JUST BE KINKO, YOU WANT TO RESPOND? YEAH, BUT I'M DOING MY BEST NOT TO SHOW, UM, HOW UNCOMFORTABLE I AM WITH THIS.
AND I'M USING THAT TERM LIGHTLY UNCOMFORTABLE.
UH, I WANT TO TREAT EVERYBODY WITH RESPECT, BUT I FEEL THAT I HAVE BEEN DISRESPECTED IN THIS PROCESS.
SO YOU GUYS HAVE GIVEN ME SOMETHING AND NOW I FEEL LIKE, HEY, WHERE'D THIS COME FROM? BECAUSE WE, WE, WE HAVEN'T DONE ANYTHING LIKE THIS.
AND THEN THIS IS, UH, THIS IS TAXPAYER DOLLARS AND YOU'RE ASKING US TO JOIN IN SOME CONCEPT WITH NON-PROFIT.
AND NOW DO OTHER NON-PROFITS COME IN AND THEY WANT TO BUILD A 20 STORY BUILDING WITH SUCH AND SUCH AND SUCH AND SUCH, AND THEN THEY'RE OUT OF IT IN 20 OR 30 YEARS, AND WE'RE LEFT WITH WHAT ARE WE GOING TO CARRY ON THE SERVICES? ARE WE GOING TO CARRY ON THE MISSION OF WHAT'S LEFT ONCE THEY EXIT? WHO'S GOING TO TAKE CARE OF IT? AND IT'S A, UM, TAX EXEMPT PROJECT.
UH, I'LL, I'LL ALLOW YOU TO GO AHEAD AND RESPOND.
I, I APOLOGIZE, BUT RIGHT NOW, YOU HAVEN'T JUST STEPPED ON MY FEET.
YOU JUST BOTHERED MY SPIRIT AND, AND I, I REALLY DON'T LIKE THIS AT THIS PARTICULAR POINT.
SO THAT, THAT CERTAINLY WASN'T THE ATTENTION.
AND OBVIOUSLY, YOU KNOW, WE CAME AND BROUGHT THIS PROJECT BEFORE YOU GUYS KNOWING IT WAS DIFFERENT AND KNOWING THAT IT WOULD TAKE MULTIPLE MEETINGS TO UNDERSTAND IT ALL.
AND SO WITH THAT IN MIND, THAT'S WHY WE WANTED TO GET THEM IN FRONT OF YOU TO EXPLAIN THIS CONCEPT AND TO EXPLAIN THE IDEA, RIGHT? WE, WE HAD NO INTENTION OF HAVING YOU SAY, YOU KNOW, WE APPROVE EVERY DETAIL OF THIS DEAL WITHOUT, YOU KNOW, GETTING SOME MORE TIME TO MARINATE ON IT.
AND AS WE WELL KNOW, YOU GUYS, YOU GUYS LIKE TO DISCUSS THIS AND, AND MAKE VERY DELIBERATE AND, UH, CAREFUL DECISIONS.
AND SO IT CERTAINLY WAS NOT OUR EXPECTATION THAT, THAT YOU GET THE FINAL APPROVAL HERE.
SO, UH, I APPRECIATE THE REMARKS.
YOU KNOW, I APPRECIATE THE, THE FEEDBACK AND, YOU KNOW, WE'LL, WE'LL DO A BETTER JOB.
BUT, UM, THAT BEING SAID, THIS WAS A, A, AN OPPORTUNITY TO, TO LOOK AT SOMETHING DIFFERENT AND TO PERHAPS BRING IT BEFORE YOU GUYS AS A BOARD.
UM, LIKE I SAID, YOU GUYS HAVE THE VOTES.
WE JUST BRING TO YOU THIS INFORMATION SO THAT YOU CAN, YOU CAN UNDERSTAND IT THE BEST YOU CAN.
AND, AND WE'RE HERE TO SUPPORT AND, AND HELP YOU THROUGH THE PROCESS.
AND SO WE UNDERSTAND THIS IS PART OF THAT PROCESS.
THIS IS HOW IT WORKS, RIGHT? YOU, YOU GUYS ALL HAVE THIS OPPORTUNITY TO, TO MAKE COMMENTS TO CONVERSE WITH THE DEVELOPER AND, AND THE NON-PROFIT PARTNER.
[01:10:01]
UM, AND SO THAT'S WHAT WE'RE DOING HERE.AND I, I, UH, APPRECIATE AND RESPECT YOUR, YOUR THOUGHTS.
UH, DIRECTOR STINSON, UM, PERHAPS, UH, YOU KNOW, I, I SHOULD ALSO LIKE TO ACKNOWLEDGE, I DO APPRECIATE, UH, YOU KNOW, THE WORK OF, UH, ASD.
AND, UH, I ALSO LIKE THE IDEA ABOUT, UH, GETTING INTO, UH, UH, REHAB AT A LOWER TERM AT LIKE A 30 YEAR TERM.
'CAUSE I THINK THAT'S REALLY, THAT'S THE ONLY WAY YOU CAN DO REHABS ON A STRUCTURE THAT WAS BUILT IN THE EIGHTIES.
UH, SO I AM POSITIVE ABOUT THOSE.
UH, ON THAT NOTE, UH, DIRECTOR PALACE, THANK YOU.
UM, I THINK IN FAIRNESS TO, TO THE APPLICANT, UM, THIS IS REALLY AT LEAST ON THE FRINGES OF OUR WHEELHOUSE.
AND, UM, TO BE FAIR, MAYBE WE SHOULD, I WOULD LIKE TO MAKE A MOTION TO DEFER SO WE CAN FURTHER UNDERSTAND, UH, THE PROPOSED PROJECT AND UNDERSTAND IT AS IT RELATES TO UTILIZATION OF TAXPAYER KNOWLEDGE.
SO I'M MOVING TO DEFER TO AT LEAST THE NEXT MEETING.
I HAD, UH, RECOGNIZED DIRECTOR CALLIS, UH, UM, AND HE DOES HAVE A MOTION ON THE FLOOR.
UH, DIRECTOR REYES, WOULD YOU LIKE TO, UH, SECOND THAT MOTION, OR YOU, ARE YOU MAKING A COMMENT? YES, I, I, I JUST WANTED TO MAKE A COMMENT.
UM, I'VE, I'VE, I WANT TO ECHO SOME OF THE SENTIMENTS THAT HAVE BEEN EXPRESSED TODAY BY MY COLLEAGUES, UH, PARTICULAR WHAT DIRECTOR STINSON JUST SAID.
UM, AND, AND AS MUCH AS I SEE THAT THERE IS A NEED FOR THIS TYPE OF SERVICES AND HOUSING, UM, AT THE END OF THE DAY, YOU KNOW, WE'RE RESPONSIBLE FOR THE, FOR, FOR WHATEVER MECHANISMS OR, OR FUNDINGS THAT WE APPROVE TO MAKE THIS HAPPEN.
UH, YOU KNOW, I I I, AND THIS IS NO KNOCK ON THE STAFF, I JUST FEEL THAT WE, WE WEREN'T INCLUDED IN THE, I GUESS, IN THE SAUCE MAKING OF THIS CONVERSATION.
AND I THINK, I THINK THAT'S SOMETHING MAYBE THAT WE NEED TO ADDRESS AS A, AS A BODY, UH, AT SOME POINT.
THAT IF THERE ARE NEW, THAT, THAT IF THERE, THERE THERE'S ANY CREATIVITY GOING ON, ON, ON, ON HOW DO WE MAKE THIS HAPPEN, THAT WE NEED TO BE THERE FROM THE ONSET AND NOT BE, AND NOT HAVE WHAT WE HAPPEN TODAY, RIGHT? WHAT WE SAW TODAY, WHICH WAS, YOU KNOW, WE RECEIVED SOMETHING THAT WE WERE NOT, UH, FULLY UNDERSTANDING WHAT, WHAT, WHAT WE HAD.
AND, AND THE FACT THAT THE, YOU KNOW, THE INFORMATION TRICKLED THAT, THAT DID NOT MAKE IT ANY, ANY, ANY BETTER.
SO, UM, I I, I JUST LIKE TO BE ABLE TO, UH, I GUESS I WILL SECOND IF THERE IS A MOTION TO FURTHER CONSIDER THIS, THIS PROJECT AT, AT A LATER DATE AFTER WE HAVE SOME, SOME INTERNAL COMMUNICATION OR INTERNAL CONVERSATIONS AMONG US, AND OBVIOUSLY WITH STAFF, UH, TO HAVE A BETTER UNDERSTANDING OF, OF, OF WHAT IT IS THAT WE'RE ACTUALLY GETTING INTO.
UH, YOU KNOW, AND, AND, AND I KNOW I, I TRUST JAKE, UH, TO HIS POINT, YOU KNOW, THAT HE'S ASKING US TO EXPLORE THIS.
BUT, YOU KNOW, AT THE MOMENT, MY APPREHENSION IS THAT I, I, I WOULDN'T, I WOULDN'T BE ABLE TO SUPPORT IT UNTIL I GET FURTHER EXPLANATION.
AND AGAIN, NOT JUST THE EXPLANATION FOR TODAY, BUT AN UNDERSTANDING WITH, UH, WITH STAFF THAT IN THE FUTURE, ANYTHING THAT YOU GUYS ARE, UH, INTERPRETING FROM THE, FROM THE POLICIES AND THE LAWS AND HOW THIS PROCESS WORKS, I, I DON'T HAVE AN ISSUE WITH CREATIVITY.
WHAT I HAVE AN ISSUE WITH IS NOT BEING INCLUDED IN THOSE CONVERSATIONS, BECAUSE AT THE END OF THE DAY, I, WHETHER IT'S ME AS AN INDIVIDUAL, A REPRESENTATIVE OF MY DISTRICT, OR US AS A BODY, UH, WE, WE HAVE TO GIVE THE FINAL APPROVAL.
SO I, I JUST HOPE THAT WE'RE ABLE TO FIGURE THAT, THAT OUT AND, AND, AND NOT, UM, LET THIS HAPPEN AGAIN.
UM, AND, AND AGAIN, I'M, I'M, I'M, I'M, I, I REALLY WANT, UH, I, I REALLY DO NOT WANT THE APPLICANT TO FEEL THAT, THAT WE'RE NOT SUPPORTIVE OF, OF, OF SUCH A PROJECT.
UH, BUT YOU KNOW, AT THE END OF THE DAY, WE, WE, WE, WE, WE, WE, WE ARE RESPONSIBLE FOR OUR, OUR NEIGHBORS TAX
[01:15:01]
DOLLARS, AND THAT'S WHO, AT THE END OF THE DAY, WE HAVE TO GO BACK AND ANSWER TO WHEN, WHEN WE APPROVE THESE PROJECTS.AND IF THERE'S A MOTION TO, UH, TO, TO SECOND TO HOLD THIS PROJECT UNTIL FURTHER, UH, DISCUSSION, UH, I, I CAN ALSO MAKE THAT MOTION OR, OR SECOND THAT MOTION.
DIRECTOR REYES, UH, THE CHAIR HAD RECOGNIZED A MOTION WAS MADE BY DIRECTOR TALLIS TO A DEFERRED DISCUSSION.
AND THIS ITEM NUMBER SIX TO THE NEXT WRIGLEY SCHEDULED BOARD MEETING.
AND YOU, I BELIEVE, HAD SECONDED THAT MOTION.
UM, SAM, CAN YOU GO TO A ROLL CALL, VOTE PLEASE.
DISCUSSION, OR I'M SORRY, UP FOR DISCUSSION, PLEASE.
UM, 'CAUSE I, I THINK, SO FIRST AND FOREMOST, UM, I APPRECIATE YOU ALL BEING HERE AND, UH, AND GOING THROUGH THIS PROCESS.
UH, I, IT'S A, THIS IS A REALLY GOOD PROJECT AND, YOU KNOW, WE, WE ALL DO WHAT IS IN OUR SKILLSET TO CREATE BETTER OUTCOMES FOR THE CITY.
AND THAT'S WHAT YOU GUYS AT VOY ARE DOING.
THAT'S WHAT YOU AT AID SERVICES DALLAS DID.
UM, I, I THINK WE, UH, YOU KNOW, I, I SUPPORT THE, THE MOTION TO DEFER, UM, BUT IT'S ALSO NOT FAIR TO SAY DEFER.
AND THEN LET'S JUST TALK ABOUT IT NEXT TIME.
SO WHAT ARE SOME OF THE THINGS THAT, UM, PERSONALLY I WOULD LIKE TO, UM, I'D LIKE TO SEE, I REALLY WANNA EXPLORE 30% AMI UNITS, UM, A 5% TRANCHE AT 30% AMI, UM, AND JIM AND, AND AARON AND ALBERT, YOU KNOW, THAT THAT MEANS THAT WE MIGHT HAVE TO BRING BACK A, WELL, WE WOULD HAVE TO BRING BACK A DIFFERENT TERM SHEET, UM, BUT I'D LIKE TO EXPLORE THAT.
UM, I ALSO WANT TO HAVE AN UNDERSTANDING OF HOW WE'LL MONITOR YOUR CAPEX EXPENDITURE.
I MEAN, FIVE AND A HALF BILLION IS A LOT OF MONEY
AND I'D LIKE TO, UM, HAVE A GOOD HANDLE ON THAT.
UM, AND THEN, UM, SOMETHING RON, THAT YOU, YOU KIND OF BROUGHT UP CONTINGENCY PLANNING.
YOU KNOW, WHAT, WHAT HAPPENS IF YOU ALL GO AWAY? UM, BECAUSE THIS, THIS IS CENTERED ON, ON AID SERVICES AT DALLAS, AND, UM, AND THERE'S A LOT OF RISK, EVEN NONPROFITS THAT HAVE BEEN AROUND FOR DECADES.
THERE'S JUST A LOT OF RISK WITH THAT.
SO, UM, I, I'D LIKE TO UNDERSTAND THAT.
BUT, UM, THANK YOU ALL FOR, FOR DOING THIS WORK.
UM, I APPRECIATE IT AND LOOK FORWARD TO, TO CONTINUING OUR DISCUSSIONS.
KEN, THE ONE THING I'D LIKE TO ADD IS THAT ON, ON THE RENOVATION FOR ACQUISITION DEALS, THE TIMELINE'S VERY DIFFERENT THAN DEVELOPMENT.
SO WITH A LAND SELLER, YOU CAN MAYBE PUSH THE TIMELINE 30 DAYS OR ANOTHER 90 DAYS TO WAIT FOR ANOTHER MEETING.
ANOTHER DECISION ON THESE ACQUISITION DEALS, IT'S NOT QUITE SO SIMPLE.
SO IT'S LIKELY THAT THIS VOTE WILL ACT AS MORE OF A POCKET VETO.
THIS OPPORTUNITY WILL GO AWAY.
UM, SO I JUST WANT TO ADD THE GRAVITY TO THE DECISION.
WE HAVE MADE AND SECONDED TO DEFER.
UM, ITEM NUMBER SIX TO THE NEXT REGULARLY SCHEDULED MEETING, UH, SAM, CAN YOU PLEASE CALL RO RONALD STINSON? YES.
RAUL REYES, THAT WAS A YES TO DEFER, I'M SORRY, VICTOR TOLEDO.
UH, WE APPRECIATE Y'ALL COMING.
UH, WE HAVE DEFERRED ITEM NUMBER SIX TO OUR NEXT REGULARLY SCHEDULED MEETING.
UH, WE LOOK FORWARD TO SEEING YOU THEN.
UH, ITEM NUMBER SEVEN, DISCUSSION AND APPROVAL OF A RESOLUTION APPROVING THE TRANSACTION FOR BANYAN FLATS LOCATED AT 2020 NORTH BECKLEY AVENUE, DALLAS, TEXAS, INCLUDING THE EXECUTION OF ALL DOCUMENTATION NECESSARY TO CARRY OUT THE TRANSACTIONS AUTHORIZING THE PURCHASE OF THE LAND FOR THE PROJECTS AND OTHER MATTERS IN CONNECTIONS FOR THEREWITH, AARON AND ALBERT.
YEAH, SO THESE NEXT FOUR ARE JUST THE FINAL APPROVAL OF THESE TRANSACTIONS THAT, UM, WE'VE INDUCED.
THEY'VE NOW BEEN NEGOTIATED APPROVED MOUS, THEY'VE BEEN TO CITY COUNCIL AND APPROVED.
AND THESE ARE JUST THE FINAL DOCUMENTS.
UH, THIS IS LARGELY THE, THE REASON THAT WE DELAYED THIS MEETING A COUPLE WEEKS SO THAT WE CAN GET ALL THESE CLOSED IN TIME.
OBVIOUSLY WITH THE RATE ENVIRONMENT AS IT IS, PEOPLE ARE ANTSY TO GET, GET EVERYTHING FINALIZED.
[01:20:01]
AND, UH, SO AGAIN, UM, THIS IS THE BANYAN STEEL.UM, THIS IS THE, THE 289 UNIT DEVELOPMENT.
THAT'S, UM, IT'S ALREADY STARTED CONSTRUCTION, SO THIS ONE WILL BE UP AND OPERATING, UH, QUITE SOON.
UM, AND SO IF YOU HAVE ADDITIONAL QUESTIONS, UM, WE ARE, WE'RE HAPPY TO ANSWER KEN.
DR. MONTGOMERY, UM, SO THESE ARE FINAL DOCUMENTS, IS THAT RIGHT? YES, THEY ARE, SIR.
INCLUDING THE LEASE, JIM? YEAH, YEAH.
WE HAVE FINAL LEASE DEVELOPMENT AGREEMENT, REGULATORY
I, I WOULD, I WOULD LIKE, I DON'T HAVE, UM, I DON'T HAVE A PARTICULAR INTEREST ON ANY OF THE COMPONENTS TO THESE FOUR THAT WERE OUT OF THE ORDINARY.
UM, BUT I WOULD LIKE TO SEE THE LEASES.
I WOULD, I DO WANT TO ON BANYAN, THERE'S A COUPLE OF THINGS THAT CHANGED FROM THE TERM SHEET THAT I WANT TO POINT OUT TO YOU.
UM, AARON INCLUDED THE ORIGINAL TERM SHEET, AND BANYANS GOT A COUPLE OF THINGS THAT HAVE CHANGED.
FIRST, THE TERM SHEET SAYS THAT YOU WOULD GET THE STANDARD 15% AFTER THE RETURN OF DEBT AND EQUITY.
THAT HAD TO BE CHANGED TO A 2% OF GROSS, BECAUSE THIS IS AN OPPORTUNITY ZONE BY FINANCING.
AND WE COULD NOT BE VIEWED AS HAVING A SHARE OF THE NET PROFITS, BUT WE CAN BE VIEWED AS HAVING A SHARE OF THE GROSS.
THE 2% NUMBER IS COMPARABLE TO THE 15% NUMBER AT THE ANTICIPATED CAP RATE.
UM, IF THE CAP RATE GOES UP, THE 2% NUMBER IS HIGHER.
IF THE CAP RATE GOES DOWN THE 2% NUMBER'S A LITTLE LOWER.
UM, THE SALE OF THIS PROJECT CANNOT OCCUR FOR 10 YEARS.
'CAUSE IT'S AN OPPORTUNITY ZONE.
UM, BUT IT WILL BE ROUGHLY EQUIVALENT.
UM, THE OTHER PARTS OF THIS THAT ARE DIFFERENT IS THERE'S NO SALES TAX SHARING BECAUSE THE PROJECT IS ALMOST COMPLETELY BUILT.
UM, AND I HAVE CHANGED YOUR RESOLUTION FROM THE ONE THAT IS IN THE BOARD PACKET TO SIMPLY REFLECT IF YOU'RE NOT JUST BUYING THE LAND, BUT YOU'RE BUYING AN EXISTING PROJECT.
OTHER THAN THAT, UM, THIS PROJECT IS ON PAR WITH THE TERM SHEET, UM, AND IS SET TO CLOSE NEXT WEEK.
ANY OTHER QUESTIONS? JUST, JUST REAL QUICK.
SEE, I HAVE NO PROBLEM WITH ANY OF THOSE.
IN FACT, JIM, I'D PROBABLY RATHER HAVE 2% OF GROSS THAN 15% OF WHAT I ALWAYS AIR QUOTE IS CARRIED INTEREST ANYWAY.
UM, BUT I'D LIKE TO SEE THOSE CHANGES BEFORE WE WE APPROVE IT.
THAT IS A BIT OF A PROBLEM ON ALL OF THESE.
ALL OF THESE ARE SET TO CLOSE BEFORE THE END OF THE MONTH.
YEAH, WE, IT, I, I'M NOT SUGGESTING THAT WE HOLD IT UP, BUT LET'S, LET'S GO THROUGH THE CHANGES ON, ON THE OTHER THREE TOO.
WOULD YOU LIKE TO TAKE THEM ONE AT A TIME, OR WOULD YOU LIKE ME TO RUN THROUGH ALL FOUR OF THEM? LET'S DO ONE AT A TIME.
AND, AND OH, BY THE WAY, JUST TO NOTE, WE, WE HAVE PROVIDED NOTICE TO THE TAXING ENTITIES THAT WAS REQUIRED BY THE STATUTE, AND WE HAVE POSTED THE UNDERWRITING FOR THESE PROJECTS ON THE WEBSITE 30 DAYS BEFORE THIS MEETING.
AND THAT WAS, AS YOU KNOW, ONE OF THE REASONS WHY WE DELAYED THIS MEETING FOR THE TWO WEEKS AS WE'RE RECALIBRATING OUR SCHEDULES TO THE NEW STATE LAWS.
SO, UM, THANK YOU ONCE AGAIN, UH, FELLOW MEMBERS OF THE BOARD FOR YOUR PATIENCE AND CONSIDERATION IN THIS DELAY.
SO WE COULD BE IN COMPLIANCE WITH THE STATE LEGISLATURE.
DO WE HAVE ANY OTHER COMMENTS OR QUESTIONS ON ITEM NUMBER SEVEN? DIRECTOR TALLIS, WHO'S GONNA MAKE A MOTION? YES, SIR.
MOTION FOR APPROVAL WAS MADE BY DIRECTOR TALLIS, SECONDED BY DIRECTOR TOLEDO.
WE'LL MOVE TO, UH, ANY FURTHER DISCUSSION.
[01:25:03]
IS A MOTION MADE TO APPROVE ALL THESE TOGETHER? NO SERVICE.RONALD STINSON, ITEM NUMBER SEVEN.
UH, DIRECTOR RA REYES
WHO, WHO'S FOOL WHO'S FOOLING AROUND WITH THE SCREEN.
ITEM NUMBER SEVEN HAS BEEN APPROVED.
MOVING ON ITEM NUMBER EIGHT, DISCUSSION AND APPROVAL OF A RESOLUTION APPROVING THE TRANSACTION FOR MAPLE HIGHLINE, LOCATED AT 59 0 8 MAPLE AVENUE, DALLAS, TEXAS, INCLUDING THE EXECUTION OF ALL DOCUMENTATION NECESSARY TO CARRY OUT THE TRANSACTIONS, AUTHORIZING THE PURCHASE OF THE LAND FOR THE PROJECTS AND OTHER MATTERS IN CONNECTION, THEREWITH, AARON AND ALBERT.
I'LL, I'LL JUST DEFER TO JIM ON ALL THESE FOR ANY, UM, NOTABLE CHANGES TO BENLEY.
THERE, THERE ARE NO NOTABLE CHANGES TO THE TERM SHEET.
UH, THIS PROJECT IS UNDER CONSTRUCTION, UM, AND WE'LL CLOSE NEXT WEEK OR THE WEEK AFTER.
UM, AND ONCE AGAIN, THE RESOLUTION WILL BE AMENDED TO REFLECT THAT YOU'RE ACTUALLY PURCHASING A LAND AND THE EXISTING PROJECT.
UM, BUT THIS, EVERYTHING HERE IS EXACTLY ACCORDING TO THE TERM SHEET THAT YOU HAVE PREVIOUSLY APPROVED POINT OF INFORMATION.
WHERE IS THE, UH, WHERE ARE THE NOTIFICATIONS POSTED? JACKIE? WHERE, WHERE EXACTLY? IT'S, IT'S THE REGISTRAR CITY WEBSITE.
OH, IS ONAR REGISTRAR UNDER OUR MEETING.
THOSE ARE JUST LETTERS THAT WE SEND CERTIFIED MAIL.
SO, ANY OTHER QUESTIONS OR COMMENTS? DIRECTOR MONTGOMERY, UH, MOVE TO APPROVE.
ITEM EIGHT, SECOND MOTION HAS BEEN MADE TO APPROVE ITEM EIGHT.
ITEM NUMBER EIGHT, BY DIRECTOR MONTGOMERY.
ALRIGHT, SINGLE FURTHER DISCUSSION.
UH, SAM, IF YOU TAKE A VOTE, PLEASE.
UH, WOULD THE RECORD INDICATE ITEM NUMBER EIGHT HAS BEEN APPROVED? ITEM NUMBER NINE, DISCUSSION AND APPROVAL OF RESOLUTION APPROVING THE TRANSACTION FOR BI BISHOP EIGHTH, LOCATED AT 5 0 5 AND FIVE 10 WEST EIGHTH STREET, DALLAS, TEXAS, INCLUDING THE EXECUTION OF ALL DOCUMENTATION NECESSARY TO CARRY OUT THE TRANSACTIONS, AUTHORIZING THE PURCHASE OF THE LAND FOR THE PROJECTS AND AUTHORIZING THE DALLAS PUBLIC FACILITY CORPORATION TO SERVE AS A GENERAL CONTRACTOR AND OTHER MATTERS IN CONNECTION, THEREWITH, AARON AND ALBERT WITH NOTES FROM JIM.
THIS IS A, A NEW CONSTRUCTION PROJECT THAT HAS NOT BEGUN YET, BUT IS SUPPOSED TO CLOSE BEFORE THE END OF THE MONTH.
UH, ALL TERMS ACCORDING TO THE ORIGINAL TERM SHEET.
UM, AND ALL FINANCING IS IN HAND.
AND, UM, THIS ONE A AND ACTUALLY THE NEXT ONE ARE JUST STRAIGHT UP APPROVALS ACCORDING TO THE TERM SHEETS, DIRECTOR MONTGOMERY, I'M GONNA PUT THESE TOGETHER.
ITEM NINE AND ITEM 10, SECOND MOTION HAS BEEN MADE AND SECONDED BY DIRECTOR TEIS TO APPROVE BOTH ITEMS NINE AND ITEM 10.
UH, SAM, CAN YOU MOVE TO VOTE,
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PLEASE? YEP.VICTOR TOLEDO APPROVE AND MONTGOMERY APPROVE.
LET THE RECORD REFLECT THAT ITEMS NINE AND NUMBER 10 ON TODAY'S AGENDA HAVE BEEN APPROVED BY THE BOARD.
ITEM NUMBER 11, REVIEW AND DISCUSSION OF THE DALLAS PUBLIC FACILITIES CORPORATION TREASURER'S REPORT.
ALBERT PACKET, I DUNNO IF EVERYBODY'S HAD A CHANCE TO REVIEW IT.
UH, OR IF YOU HAVE ANY QUESTIONS.
I MEAN, SO THIS, SORRY FOR THE GROWING PAINS HERE.
WE'RE, WE'RE TRANSITIONING STAFF AND, AND DOING A, A FEW NEW THINGS.
SO, UH, FEELS A LITTLE CLUNKIER THAN NORMAL, BUT BEAR WITH US.
TREASURER, RIGHT? I WILL DEFER.
BUT, UM, GOING FORWARD, THIS WILL BE A MONTHLY, UM, ITEM ON THE AGENDA, JUST LIKE OUR PIPELINE.
UH, WE'RE, WE'RE SLOWLY, YOU KNOW, RAMPING UP OUR, OUR STAFFING CAPABILITIES.
AND SO THIS IS ONE OF THE ITEMS THAT'S BEEN LAGGING AND, AND WE'RE KIND OF TRYING TO CATCH UP YET.
SO THIS IS AS OF JULY 31ST, SO I DON'T SEE, UH, AN ITEM ON THE SCREEN TO REVIEW, UM, NOR DISCUSS.
UH, I DON'T KNOW IF THIS IS WITHIN THE
AND WE, WE'VE ACTUALLY, UH, HAD CONVERSATIONS WITH OUR INSURANCE BROKER, AND SAM ACTUALLY JUST GOT AN EMAIL FROM HIM THIS MORNING, SO WE CAN TALK OFFLINE MORE ABOUT THOSE DETAILS.
I SEEING NO OTHER REVIEW DISCUSSION.
MOVE ON AROUND NUMBER 12, REVIEW AND DISCUSSION OF THE DALLAS PFC PIPELINE REPORT.
ALBERT, AGAIN, THIS IS JUST GONNA BE A MONTHLY REPORT THAT YOU'RE GONNA HAVE IN YOUR PACKETS.
IT'S A DISCUSSION ONLY, THERE'S NO ACTION ON THIS ITEM.
UM, BUT YOU'LL GET THIS MONTHLY UPDATE.
WE'RE STILL FINE TUNING THIS A LITTLE BIT.
WE'RE PLUGGING IN A COUPLE MORE DATES, SPECIFICALLY WORKING AT WHEN ITEMS GO TO COUNCIL, WHEN WE COME BACK FROM FINAL BOARD APPROVAL, WE'RE ALSO AMENDING A COUPLE OF OTHER ITEMS THAT, UH, THE DEPARTMENT HEADS HAVE ASKED FOR, COUNCIL HAS ASKED FOR IN TERMS OF CALCULATING SOME OF THESE TAX OF MAINTENANCE AND SO FORTH.
SO THIS IS GONNA BECOME A LITTLE MORE COMPREHENSIVE, BUT AGAIN, IT DOES LIST EVERY PROJECT, JUST SO YOU KNOW WHERE IT IS IN THE PROCESS, WHETHER IT'S GOING TO THIS BOARD OR COUNCIL ALREADY WHERE IT'S ACTUALLY IN CONSTRUCTION.
I BELIEVE WE'VE ALL, UH, SEEN THE REPORT IN OUR, IN OUR PACKETS.
UM, MAY I ASK, UH, A QUESTION, AARON OR ALBERT, UM, IN THE WAY THE, THE CITY PUBLISHES THAT AGENDA, DO WE HAVE A SPOT WHERE WE CAN PUT, UH, NEW ITEMS FOR CONSIDERATION OR ITEMS FOR DISCUSSION? I MEAN, I WOULD, I WOULD DEFER TO LISA HARRIS.
SHE'S THE ONE WHO TELLS US WHETHER WE'RE, WE'RE BREAKING THE TOMA KIND OF, UH, GUIDELINES.
BUT LISA MAS FOR THE DALLAS CITY ATTORNEY'S OFFICE, THE TEXAS OPEN MEETINGS ACT REQUIRES SOME SPECIFICITY IN TERMS OF WHAT WILL BE DISCUSSED.
WE CANNOT HAVE A GENERIC DESCRIPTION OF JUST NEW ITEMS WITHOUT SOME KIND OF DESCRIPTION.
IF WE GAVE SOME, UM, DESCRIPTION IN TERMS OF NEW POTENTIAL PROJECTS AND MAYBE IDENTIFIED EITHER DEVELOPER OR AN ADDRESS, THAT COULD BE SOMETHING.
UM, SO I WOULD NEED TO KNOW A LITTLE BIT MORE ABOUT WHAT Y'ALL YOU'RE ENVISIONING IN ORDER TO, UM, MAYBE SUGGEST SOME POSSIBLE WORDING.
WELL, I JUST, I'LL, I'LL GO AHEAD AND ASK YOU WHY WE'RE HERE AND WHY WE'RE STILL IN SESSION.
UM, THERE'S A COUPLE OF ITEMS, UH, HOUSEKEEPING ITEMS MOSTLY THAT WE NEED TO ASK QUESTIONS ABOUT.
AND, UH, AS YOU KNOW, IT'S, SO SOMETIMES IT'S HARD TO DO, UH, IN AN EMAIL FORMAT AND, UH, YOU KNOW, EMAILING ALL THE BOARD MEMBERS SEPARATELY.
FOR EXAMPLE, IN THE MINUTES TODAY, FROM AUGUST 22ND, WE APPROVED THE MINUTES THAT WE APPROVED TODAY.
UH, SO IT WAS READ IN THE RECORD TODAY, UM, A PRESENTATION,
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A DISCUSSION OF SOCIAL MEDIA AND CONSULTANT SERVICES OFFERED BY DASH SOCIAL.UM, WE HAD TALKED ABOUT, UH, IN THE MINUTES FROM LAST MONTH, UM, YOU KNOW, PERHAPS SEEKING AND, AND LOOKING INTO A SOCIAL MEDIA.
AND SO IT'S AN ITEM LIKE THAT.
IT'S PART OF WHAT WE'RE IN OUR MINUTES, BUT PERHAPS WE MIGHT WANNA BRING IT UP FOR DISCUSSION TO SEE IF WE HAVE ANY OTHER IDEAS OR IF WE WANT TO DEFER IT TO A COMMITTEE.
YEAH, I WOULD SAY UPDATE ON CONSULTANT SERVICES OR SOCIAL MEDIA, UM, SERVICES.
SO THAT WOULD BE SOMETHING THAT YOU WOULD DIRECT STAFF TO ADD TO THE AGENDA FOR A REGULAR OR HAVE A REGULAR UPDATE ON OPEN CONTRACTS THAT Y'ALL ARE CONSIDERING.
OPEN DIRECTOR EXTENS, LEMME ASK A QUICK QUESTION.
UM, UNDER THE HEADING OF OLD BUSINESS, IS THAT STILL USED IN A FORMAT, SO TO SPEAK? IS THAT STILL RELEVANT? YEAH, TEXAS OPEN MEETING BAG REQUIRES A LITTLE BIT MORE SPECIFICITY.
THEY'VE SINCE DECIDED WE CAN'T HAVE SOMETHING THAT'S WITH OUR NEW BUSINESS OR YEAH, I UNDERSTAND THAT.
SO, UM, LET'S JUST SAY OLD BUSINESS OR WHATEVER TITLE WOULD COME UP WITH, THEN WOULD YOU HAVE BULLET POINTS THAT WOULD NEED TO, UH, SPECIFY EXACTLY WHAT YOU'RE GONNA SPEAK OF, SO TO SPEAK? YEAH.
WITH, WITH, IT DOESN'T HAVE TO BE, YOU KNOW, PINPOINT POSITION, BUT IT NEEDS TO GIVE THE PUBLIC IN GENERAL SOME, UM, INFORMATION SO THEY CAN DETERMINE WHETHER OR NOT THEY WANT TO LISTEN OR ATTEND THAT PARTICULAR MEETING.
SO ACCORDING TO THIS PARTICULAR, UH, ITEM THAT, UH, WE WOULD, WE, UH, WANTED TO, UH, DISCUSS, WHICH WAS A SOCIAL MEDIA PROPOSAL, THEN THAT NEEDS TO BE STATED AS SUCH.
OR YOU COULD JUST SAY, WHAT IF IT'S NOT SPECIFIC? WELL, IF IT'S NOT A PART OF A REPORT FROM STAFF, WHICH IT DOESN'T SOUND LIKE IT IS, LIKE THERE WAS ANY PREPARATION FOR THAT.
NO, WE HAD A PREP, WE HAD A PRESENTATION ON THAT LAST TIME.
BUT AT YOUR LAST MEETING, RIGHT? I DON'T KNOW.
I ATTENDED THAT AUGUST OR JULY OR IT, IT WAS IN AUGUST.
YEAH, I ATTENDED THAT MEETING.
SO THAT PARTICULAR PRESENTATION POSTED, WE NEEDED TO DISCUSS WHETHER WHAT WE WERE GONNA DO EXACTLY.
SO IT SHOULD HAVE BEEN POSTED.
IN ORDER TO HAVE, AND I WOULD SUGGEST HAVING AN UPDATE ON SOCIAL MEDIA, UM, CONSULTANT SERVICES OR SOMETHING TO THAT EFFECT.
WELL, WOULD THE, WOULD THE CITY HAVE AN ISSUE WITH, UM, PERHAPS ONE WEEK BEFORE THE AGENDA IS POSTED, IF I SEND OUT AN EMAIL TO, UH, ALL THE BOARD MEMBERS AND ASK THEM IF THEY HAVE ANY ITEMS, UH, YOU'D LIKE TO BRING UP FOR DISCUSSION, AND THEN WE CAN SPECIFICALLY REFERENCE THAT THERE COULD BE A REGULAR PROCESS THAT OKAY.
UM, YOU IDEALLY YOU'RE GONNA HAVE YOUR STAFF THAT IS COORDINATING THAT SO THAT WE ARE AVOIDING A WALKING FORUM.
SO IDEALLY YOU'RE GONNA DIRECT STAFF TO REACH OUT TO THE MEMBERS TO SUBMIT, UM, ITEMS THAT THEY WOULD LIKE TO HAVE ADDED TO THE AGENDA.
JUST SO THERE'S SOME HOUSEKEEPING ITEMS THAT THEY TEND TO GET PUT OFF AND NEXT THING YOU KNOW, IT'S LIKE TWO MONTHS LATER AND WE HAVEN'T DONE IT, SO I WOULD PREFER TO SEE IT IN THE RECORD.
A NUMBER TO MAKE SURE THAT ME AND WHOEVER FOLLOWS AFTER ME.
YOU KNOW, UH, UNDERSTANDS WHAT'S HAPPENING.
AND A NUMBER OF THE, UH, EITHER BOARDS OR COMMISSIONS THAT WE COVER HAVE A SYSTEM TO CAPTURE THOSE TYPES OF ITEMS. ARE THEY HAVE A REGULAR STAFF UPDATE AND THEY WOULD, YOU WOULD JUST PUT BULLETS UNDER THE STAFF UPDATE TO THE BOARD ON PENDING ITEMS. OKAY.
WELL, UH, AARON AND ALBERT, MAYBE WE COULD, UH, ADD THAT AS PART OF A REPORT TO STAFF UPDATES.
AND I, UH, WE CAN DO IT THAT WAY.
WE QUESTION, UM, THAT HOPEFULLY WE'RE NOT TREADING ON ANYBODY'S TOES, MAINLY THE STATE.
UM, IN THE SAME VEIN, IF STAFF REACHES OUT TO US, WE COULD REACH OUT TO STAFF, SAY, HEY, I'D LIKE TO CONSIDER A, B, C, D AT THE, UH, NEXT MEETING.
AND SO IT'S USUALLY IT'S THE CHAIR'S DISCRETION, WHAT TO INCLUDE.
SO IF THE CHAIR SIGNS OFF ON IT, THAT WOULD BE GREAT.
AND IF, SEE, THAT'S WHY IT WOULD BE GOOD.
TO JUST LET THE CHAIR SAMPLE US AND THEN HE COULD SEND IN ONE EMAIL.
BUT THEN YOU'VE GOT THE ISSUE OF THE WALKING FORUM.
I KNOW SOMETIMES, BUT WE ARE, THEY LIKE TO MAKE IT EASY.
THEY LIKES TRANSPARENCY AND IDEALLY YOU'RE GONNA HAVE YOUR STAFF THAT'S GONNA COORDINATE THAT SO THAT Y'ALL ARE NOT EXPOSED TO ANY ACCUSATION OF HAVING A WALKING FORM.
THANK YOU VERY MUCH FOR THE CLARIFICATION.
THAT MOVES US TO ITEM NUMBER, UH, 13 ADJOURN.
YOU HAVE A MOTION FROM, UH, DIRECTOR TALLIS
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TO ADJOURN, SECONDED BY, UH, DIRECTOR MONTGOMERY.ALL THOSE IN FAVOR, ADJOURNING SIGNIFY BY SAYING AYE.
NOVEMBER 7TH, 2023, MEETING OF THE DALLAS PUBLIC FACILITIES CORPORATION IS HEREBY ADJOURNED.