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[Economic Development on December 4, 2023.]
IT IS NOW 1:08.WE CALL THE ECONOMIC DEVELOPMENT COMMITTEE TO ORDER.
FIRST ITEM ON THE AGENDA, THE MINUTES.
CAN I GET A MOTION FOR THE MINUTES? MOTION. SECOND.
THE FIRST ITEM WE'RE GOING TO GO TO IS DEVELOPMENT SERVICE FEE UPDATE.
GOT WE GOT TWO SETS OF MINUTES.
OKAY. FIRST IS A MINUTE FOR OCTOBER 2ND, 2023 FOR DEVELOPMENT ECONOMIC COMMITTEE.
LET'S GET A MOTION FOR THAT ONE.
THAT'S ITEM A. SO MOVED, SECOND.
ITEM B APPROVE OF THE NOVEMBER 6TH, 2023 ECONOMIC DEVELOPMENT COMMITTEE MINUTE.
ANY OPPOSED? AYES CARRY. IS ANDREW AVAILABLE? [INAUDIBLE] THE DEVELOPMENT SERVICE FEE UPDATE.
GOOD AFTERNOON COMMITTEE CHAIR AND COMMITTEE MEMBERS.
I'M YOUR DEVELOPMENT SERVICES DIRECTOR.
WITH ME TODAY, I HAVE ASSISTANT DIRECTOR SAM ISKANDER, VERNON YOUNG AND DONALD DIXON.
SO HERE ARE TALKING POINTS FOR TODAY.
NEXT SLIDE. AS YOU KNOW IN 2022-23 THE DEPARTMENT COMMITTED TO IMPROVING CUSTOMER SERVICE BEING MORE RESPONSIVE TO CUSTOMERS, REDUCING RESIDENTIAL PERMITTING TURNAROUND TIMES, STANDING UP ADDITIONAL TEAMS AND RECRUITMENT TO REDUCE COMMERCIAL PERMITTING TIMES, AND THEN FINALLY TO CLOSE OUT THE STATEMENT OF WORKS AS WE MOVE FORWARD TO OUR DALLAS NOW PROJECT, WHICH IS OUR PERMITTING REPLACEMENT SYSTEM.
NEXT SLIDE. AS YOU KNOW, DEVELOPMENT SERVICES HAS NOT UPDATED ITS FEE SINCE 2015.
CURRENTLY, FEES ARE SCATTERED OUT IN DIFFERENT PORTIONS OF THE DEVELOPMENT CODE.
ON OCTOBER 2023, MGT COMPLETED THE FEE STUDY AND IT INCLUDED THE BUILDING INSPECTIONS, ENGINEERING, GIS AND SUBDIVISION TEAMS. NEXT SLIDE. THIS SLIDE IDENTIFIES THE CITIES THAT MGT RESEARCHED.
AS YOU CAN SEE, THEY'RE COMPARABLE IN SIZE AND LOCATION.
NEXT SLIDE. THIS SLIDE ILLUSTRATES THE FINDINGS AS IT RELATES TO NEW SINGLE FAMILY CONSTRUCTION PROJECTS VALUED AT $175,000. THE YELLOW GRAPH, OR EXCUSE ME, THE YELLOW COLUMN INDICATES OUR CURRENT FEE AND THE GREEN COLUMN INDICATES THE PROPOSED FEE.
NEXT SLIDE. THIS SLIDE IS FOR THE SAME TYPE OF PROJECT.
ONLY WITH CAN WE GO BACK ONE SLIDE PLEASE.
THIS SLIDE ILLUSTRATES THE SAME.
ONLY THE VALUATION INCREASES TO $225,000.
NEXT SLIDE. THE SAME FOR THIS GRAPH ONLY THE PROJECT VALUATION IS FOR $375,000.
NEXT SLIDE. THIS GRAPH ILLUSTRATES A NEW FAMILY CONSTRUCTION PROJECT FEE PLAN REVIEW AND INSPECTIONS FOR A MULTIFAMILY PROJECTS.
AS YOU CAN SEE ON THE FAR LEFT, THAT'S WHERE THE CITY OF DALLAS RESIDES.
AND AGAIN, THE GREEN IS THE PROPOSED ADJUSTMENT.
NEXT SLIDE. THIS GRAPH ILLUSTRATES THE PROJECT VALUATION AT $2 MILLION FOR A NEW COMMERCIAL CONSTRUCTION PROJECT FOR RETAIL.
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AND IT IS GOOD TO NOTE THAT THE DEVELOPMENT SERVICES DEPARTMENT, WHEN WE DID THIS RESEARCH, THIS DATA STRICTLY REFLECTS PERMITTING COSTS, PLAN REVIEW AND INSPECTIONS, NOT IMPACT FEES, WHICH SOME OTHER CITIES DO CHARGE.THIS TABLE SHARES THOSE DIVISIONS THAT WERE ASSESSED.
IF YOU LOOK AT THE BOTTOM TOTAL, THE TOTAL COST OF SERVICES RENDERED IS RIGHT AT $50 MILLION.
THE CURRENT REVENUE IS ABOUT $27 AND THE SUBSIDY IS ABOUT $22.
AS WE MENTIONED BEFORE, THE DEPARTMENT IS RECOVERING ABOUT 55% OF ITS EXPENSES AND OPERATION COSTS, AND THE $22 MILLION WAS TYPICALLY COVERED OR WOULD BE COVERED BY THE ENTERPRISE FUND RESERVES.
THIS IS A BREAKDOWN OF THE INDIVIDUAL TEAMS. THIS IS THE GIS TEAM.
NEXT SLIDE. THIS IS THE BUILDING INSPECTIONS GROUP.
NEXT SLIDE. OUR SUBDIVISION TEAM.
NEXT SLIDE. AND FINALLY, OUR ENGINEERING TEAM.
MGT ALSO ASSESSED OUR TECHNOLOGY NEEDS AND OUR COSTS.
CURRENTLY, WE HAVE A $7 MILLION COST RELATED TO TECHNOLOGY ENHANCEMENTS AND LICENSES AND USER FEES.
AND JUST SO THAT, YOU KNOW, OTHER CITIES DO THE SAME THING.
NEXT SLIDE. SO DEVELOPMENT SERVICES GENERATES APPROXIMATELY $28 MILLION IN REVENUE, BUT HAS AN OPERATING COST OF APPROXIMATELY $50 MILLION.
THAT'S HOW WE CAME UP WITH THOSE PERCENTAGES OF 55% RECOVERY RATE.
IF WE IMPLEMENTED MGTS RECOMMENDATIONS, THE DEPARTMENT COULD APPROXIMATELY COLLECT AN ADDITIONAL $22 MILLION IN REVENUE, WHICH WOULD RESULT VERY CLOSE TO 100% RECOVERY RATE.
AND THOSE ARE LISTED IN THE SUBSEQUENT SLIDES.
NEXT SLIDE. AND I WON'T BORE YOU BY READING THESE, BUT YOU CAN SEE THAT AS YOU GO THROUGH THE NEXT COUPLE OF SLIDES OUR PROPOSALS ARE TO BEGIN TO CHARGE FOR THESE SERVICES.
AND THE LAST SLIDE THAT COVERS THOSE APPROXIMATELY 40 FEES IS ON PAGE 23.
NEXT SLIDE. ONE MORE SLIDE, PLEASE.
ONE MORE. SO THE RECOMMENDATIONS IS TO CONTINUE OUR OUTREACH, AND CUSTOMER NOTIFICATION IS TO CONSOLIDATE THE FEES THAT ARE SCATTERED THROUGHOUT THE DEVELOPMENT CODE IN DIFFERENT CHAPTERS AND ALIGN THEM INTO ONE CHAPTER, AND THEN CODIFY THE REQUIREMENTS FOR HAVING AN ONGOING THREE YEAR FEE STUDY ASSESSMENT THAT ALIGNS WITH THE ADOPTION OF THE BUILDING AND FIRE RELATED CODES.
NEXT SLIDE. WE WANT TO CONTINUE OUR STAKEHOLDER OUTREACH.
WE'LL MEET WITH WHOEVER WOULD LIKE TO HAVE A DISCUSSION ABOUT THE FEE STUDY.
WE WOULD LIKE TO PROVIDE CITY COUNCIL WITH THE ORDINANCE UPDATE ON DECEMBER 13TH.
AND OUR GOAL IS TO TRY TO IMPLEMENT THE FEE STUDY BY FEBRUARY 1ST.
NEXT SLIDE. THE FINAL SLIDE DEMONSTRATES THE TIMES WE'VE MET WITH THE ORGANIZATIONS AND STAKEHOLDER GROUPS AND OUR CUSTOMERS TO TALK ABOUT THE FEE STUDY.
WE'VE ALSO POSTED THE FEE STUDY ON OUR WEBSITE.
AT THIS TIME THIS ENDS MY PRESENTATION AND WE'RE AVAILABLE FOR COMMENTS OR QUESTIONS.
OKAY, I'VE GOT SOME QUESTIONS TRYING TO START OUT WITH A PROCESS AND PROCEDURE.
I HAD NUMEROUS PHONE CALLS AND SAID THAT THE OUTREACH HAD NOT BEEN DONE, AND SOME OF THE PEOPLE SAID THAT THE DALLAS HOUSING BUSINESS ASSOCIATION, MAYBE THE TEXAS REAL ESTATE COUNCIL, THEY ARE SAYING THAT THEY WAS NOT PARTICULARLY
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INFORMED OF THE FEE STUDY.SO CAN I RESPOND TO THAT? ON PAGE 26 I SEE THE STAKEHOLDER OUTREACH.
SO TELL ME WHAT HAPPENED OR WHAT'S GOING ON.
SO COUNCIL MEMBER, WHEN WE STARTED THIS PROCESS OR STARTED TO FINALIZE IT, OUR DIRECTIVE WAS TO BE OPEN, TRANSPARENT AND COMMUNICATE WITH ALL OF OUR CUSTOMERS AS MUCH AS POSSIBLE AND AS OFTEN AS POSSIBLE.
AND SO THAT LIST WAS SPECIFICALLY PROVIDED TO CONFIRM THAT WE HAVE MET.
WE HAVE COMMUNICATED, WE HAVE INFORMED OUR CUSTOMERS AS BEST WE CAN.
WHEN WE MET WITH OUR CUSTOMERS, WE ALSO TOLD THEM AGAIN THAT THE FEE STUDY WAS OPENLY AND PUBLICLY POSTED ON OUR WEBSITE AND IF THEY HAD ANY QUESTIONS, TO PLEASE REACH OUT TO US AND THAT WE WOULD BE HAPPY TO MEET WITH THEM.
SO ALL THESE ORGANIZATIONS ON PAGE 26, YOU HAVE REACHED OUT TO EACH AND EVERY ONE OF THESE ORGANIZATIONS ON PAGE 26? YES, SIR.
AND IN PERSON OR ON PHONE OR EMAIL? WHICH ONE? SO IT'S BEEN IN PERSON AND SOME HAVE BEEN VIRTUAL MEETINGS.
SO COULD YOU IDENTIFY WHICH ONE WAS IN PERSON AND WHICH ONE WAS THE EMAIL AND WHICH ONES WERE BY PHONE? SO I'M LOOKING TO ASSISTANT DIRECTOR SAM ISKANDER.
I KNOW HE MET WITH OUR ENGINEERING COMMUNITY, IF I'M NOT MISTAKEN, THE ENGINEERING COMMUNITY WAS THE ONLY ONE THAT WE MET WITH ONLINE VIA TEAMS. THE REST WERE IN PERSON.
SO YOU ARE SAYING THAT DALLAS HOMEOWNERS BUILDING ASSOCIATION, THE TEXAS REAL ESTATE COUNCIL, ALL THESE PEOPLE DOWN THE SCHOOL DISTRICT, YOU HAD A PERSON IN PERSON MEETING WITH ALL OF THESE.
THE DALLAS INDEPENDENT SCHOOL DISTRICT, I MET WITH THEM VIA A PHONE CONFERENCE.
OKAY. SO YOU DON'T HAVE TO DO IT NOW.
SO WILL YOU PLEASE GIVE ME A LIST OF THESE ITEMS, WHICH ONE YOU MET IN PERSON, WHICH ONE YOU MET BY TELEPHONE OR WHICH ONE THEY MET BY EMAIL? WAS THE PUBLIC INFORMED? IT WAS JUST ONE ON ONE.
DID YOU MEET WITH DALLAS HOME BUILDER ASSOCIATION? JUST ALONG WITH NO ONE ELSE, JUST THEM ONE ON ONE OR WAS IT A GROUP? SO CAN YOU DO THAT? OKAY. YES, SIR.
OKAY. ANOTHER THING THAT I WANT TO MAKE SURE THAT WHEN WE DID DO THE FEE STUDY, WE DID HAVE THE CONTRACT TO DO THIS FEE STUDY MANY YEARS BEFORE, ABOUT 2 OR 3 YEARS AGO.
SO WALK ME THROUGH WHAT HAPPENED TO THE FEE STUDY AND WHY IT TOOK SO LONG, AND WHY IS IT THE SAME COMPANY WHO DID THE FEE STUDY THE TWO YEARS AGO WHO DID NOT COMPLETE IT? IS THAT THE SAME COMPANY WHO'S DOING IT NOW? COUNCIL MEMBER, THAT'S A VERY VALID QUESTION.
I'M LOOKING TO ASSIST AND DIRECTOR VERNON YOUNG, WHO WAS HERE DURING THAT TIME PERIOD, TO PROVIDE US A LITTLE HISTORY, AS I DON'T WANT TO MISREPRESENT WHAT OCCURRED.
GOOD AFTERNOON, ECONOMIC DEVELOPMENT COMMITTEE.
VERNON YOUNG ASSISTANT DIRECTOR, DEVELOPMENT SERVICES SO WHILE IT'S TRUE THAT THE FEE STUDY WAS INITIATED IN 2019, THERE WERE MULTIPLE CHANGES AND THINGS THAT PUT IT ON THE BACK BURNER AS WE NEEDED TO MAKE SURE WE'RE GETTING THE PERMITS OUT.
BUT THERE WERE MULTIPLE CHANGES THAT WAS INITIATED.
THE AS WE LOOKED AT IT, AS WE MOVED FORWARD, WE UNDERSTOOD THAT IT WAS NOT IN-DEPTH ENOUGH AND THAT WE WANTED TO MAKE SURE THAT WE CAPTURED ALL THE CATEGORIES AND THAT IT WAS FAIR AND BALANCED.
STUDY MGT HAS PERFORMED MULTIPLE STUDIES FOR MULTIPLE DEPARTMENTS, AND SO THEY ARE THE INITIAL CONTRACT, AND WE MOVED FORWARD WITH THEM SINCE THEY KNEW OUR BUSINESS AND WHERE WE WANTED TO TAKE THIS STUDY.
OKAY. SO WHEN DID MGT INITIALLY HAD A CONTRACT DO THE FEE STUDY AND WHEN DID THEY STOP AND WHEN THEY STARTED BACK UP AGAIN? OKAY. SO THEY ACTUALLY FINISHED THE INITIAL 1 IN 2019, BUT THE SAME SCENARIO PLAYED OUT AS DID WITH OUR POLICY REPLACEMENT.
IT DID NOT CAPTURE THE FULL EXTENT OF THE ITEMS. THERE WERE SOME CHANGES IN REPORTING WITH DEPARTMENTS AND DIVISIONS.
AND SO WE WE REVISITED IT FOR, FOR IF I RECALL, IF I, IF I RECALL, THERE WERE
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ISSUES AT THAT POINT IN TIME THAT WE NEEDED TO ADDRESS IN OUR PERFORMANCE AND THAT THE THAT IT WAS NOT A GOOD TIME TO MOVE FORWARD.THE FEE STUDY IN 2019, IT WAS NOT COMPLETE IN 2019.
WHEN YOU STARTED OR WHEN IT WAS COMPLETED, WHEN WAS IT COMPLETED? IT NEVER COMPLETED IN 2019.
RIGHT. IT WAS COMPLETED FOR WHAT WAS ASKED AT THAT POINT IN TIME.
BUT IT WAS NOT IT WAS NOT IN-DEPTH ENOUGH.
AND THERE WERE STATEMENTS IN THE DEVELOPMENT COMMUNITY THAT THAT THERE WAS A DISCONNECT IN THE WAY WE WERE PROCESSING PERMITS AND THE TIMELINES. AND SO WE AGAIN, WE PUT IT ON HOLD TO RELOOK AT THE POLICY REPLACEMENT, THE BUILDING.
AND THEN COVID HIT AND IN MARCH OF 2020.
OKAY, WE'RE GOING TO REVISIT IT.
AND WE HAD ANOTHER ASSISTANT CITY MANAGER THAT WE REPORTED TO AT THAT TIME.
OKAY. SO MY UNDERSTANDING IS IN 2019 WHEN MGT HAD DID A FEE STUDY DURING THE COVID, YOU KNOW, 2021, 22, DID YOU EVER AT THAT TIME UPDATE ANY COMMITTEE WHAT WAS GOING ON? NO, SIR. IT WAS PUT ON THE BACK BURNER UNTIL AROUND DECEMBER OF 2022.
AND THAT'S WHEN WE DETERMINED, THROUGH WORKING, THROUGH GETTING SOME OF THE PERMIT TIMELINES DOWN THROUGH THE COMMERCIAL ISSUES THAT WERE GOING ON AT THAT TIME AND THE ISSUES THAT WERE GOING ON, WE DETERMINED NOW WE HAD ENOUGH STAFF AND FOLKS TO REFOCUS ON THIS.
AND WHEN WE LOOKED AT IT, WE UNDERSTOOD THAT IT DID NOT CAPTURE ALL OF OUR ACTIVITIES.
THEY MGT DID WHAT THEY WERE ASKED.
BUT BASED ON OUR FINDINGS AND WHAT'S HAPPENED IN THE IN THE 2 OR 3 YEARS IN BETWEEN THAT TIME, AGAIN, WE WANTED TO GO MORE IN DEPTH AND CAPTURE EVERYTHING THAT OUR DEPARTMENT DID. OKAY.
I KNOW WE GOT A WHOLE LOT OF DIFFERENT FEE STRUCTURE.
YOU KNOW, WE'RE TRYING TO ACCUMULATE.
OKAY. TELL ME, HOW DO WE RECOUP? I SEE 22 MILLION, BUT IT'S REALLY MORE THAN 22 MILLION.
GOT TECHNOLOGY. YOU GOT ANOTHER 5 MILLION.
YOU ADD TO THAT IT'S REALLY ABOUT $27 MILLION THAT WE LOST.
SO HOW DO WE HOW DO WE RECRUIT $27 MILLION.
AND YOU ARE SAYING THAT RIGHT NOW HOW MUCH MONEY DO WE HAVE LEFT IN THE RESERVE FUND.
ANSWER THAT FOR ME. COUNCIL MEMBER, ANY SUBSIDIES COME OUT OF OUR ENTERPRISE RESERVE FUND.
WE DON'T TAKE ANY MONEY FROM THE GENERAL FUND.
WE'RE SUPPOSED TO BE 100% OPERATIONAL, JUST LIKE A SMALL BUSINESS WOULD BE.
AS FAR AS WHAT'S ACTUALLY IN THE RESERVES, I WILL DEFER TO ASSISTANT DIRECTOR YOUNG.
I BELIEVE IT'S RIGHT AROUND 12 MILLION, 13 MILLION RIGHT NOW.
SO WE GOT $12 MILLION IN RESERVE RIGHT NOW, RIGHT? YES, SIR. AND THAT IS INCLUDING THE $27 MILLION THAT WE HAVE NOT RECOUPED.
RIGHT. THE 22 MILLION HERE AND PLUS THE TECHNOLOGY ABOUT 5 MILLION THERE ABOUT $27 MILLION.
IS THAT CORRECT. WE'RE MISSING THOSE ITEMS ON FULL COST RECOVERY, AT THE CURRENT RATE THERE IS A POTENTIAL THAT WE COULD BE A NEGATIVE IF WE DON'T MAKE ADJUSTMENTS.
SO WHAT ABOUT ALSO THE COST THAT WE JUST ACQUIRE A BUILDING ON STEAM.
IS THAT CALCULATED IN THIS NUMBER.
OUR PURCHASES OF SEVEN 800 NORTH STEMMONS ARE NOT CALCULATED HERE BECAUSE IT DOESN'T REALLY IT'S NOT PART OF THE FEE STUDY, BUT IT DID IMPACT OUR RESERVE FUND. SO HOW MUCH IS THAT? IF I'M NOT MISTAKEN, I'M LOOKING AT MY BOSS, BUT I BELIEVE IT WAS 14 MILLION IS WHAT WE PAID.
HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE.
MAJID ALGAFARI, ASSISTANT CITY MANAGER FOR ECONOMIC DEVELOPMENT AND CONVENTION.
WHAT WE STARTED WITH WAS A VERY HEALTHY RESERVE.
BUT ANTICIPATING THAT WE'RE GOING TO BE ACQUIRING A BUILDING FOR DEVELOPMENT SERVICES THAT WAS PLANNED FROM THE 2010 AND SO ON.
AND THAT WAS AN AGREEMENT BY THE DEPARTMENT AND DEVELOPERS THAT WE WERE GOING TO DO THIS.
WE HAD ABOUT $40 MILLION IN THE RESERVE THAT HAS BEEN EATEN UP RIGHT NOW TO ABOUT $13 MILLION, $12 MILLION IN THE RESERVE, PLUS WHAT WE ANTICIPATE TO BE OUR OPERATIONAL REVENUES, WHICH IS ABOUT $27 MILLION.
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IN 2025, WE'RE GOING TO BE $5 MILLION IN THE RED.HOW MUCH? $5 MILLION IN THE RED.
OKAY I'M LOOKING AT RIGHT HERE.
WE GOT $41 MILLION RIGHT NOW THAT WE GOT TO MAKE UP.
$41 MILLION AND I DON'T KNOW THE COST OF 50 MILLION.
AND WE HAD A RESERVE OF PROBABLY OF 40 MILLION.
SO WE'RE REALLY IN THE NEGATIVE RIGHT NOW.
YOU KNOW, THE INSPECTOR FEE ENGINEERS, YOU KNOW, SUBDIVISION OR WHATEVER, WE'RE LOSING THAT.
SO WE GOT TO RECOUP SOMEWHERE DOWN THE ROAD IN ORDER TO BALANCE OUT.
AND SO IT IS COST RECOVERY IN THE ENTERPRISE FUND.
SO WE'RE NOT RECOVERING OUR COSTS.
SO WE GOT TO MAKE SOME KIND OF DECISION.
HOW DO WE DO AND HOW DO WE RECOVER OUR COSTS.
BECAUSE RIGHT NOW IT'S AN ENTERPRISE FUND.
SO IT WOULD NOT AFFECT OUR GENERAL FUND.
IS THAT CORRECT? COUNCIL MEMBER IF WE CANNOT COVER OUR COSTS, WE WOULD HAVE TO CUT STAFF.
YOU HAVE TO CUT STAFF. SO I WANT TO MAKE SURE WE UNDERSTAND THAT.
SO I WANT TO PUT EVERYTHING ON THE DEAL.
IF WE DO NOT RECOVER OUR COSTS, WE'RE GOING TO HAVE TO CUT STAFF.
AND THAT'S THE ONLY WAY THAT WE CAN FIGURE THIS, BALANCE THIS OUT.
SO WHAT WE'RE DOING IS ONE THING I'M TRYING TO MAKE SURE THAT EVERYONE UNDERSTAND THAT WE DID NOT RAISE OUR FEES FOR MANY, MANY YEARS. AND BECAUSE WE'RE NOT WE DID NOT RAISE OUR FEE FOR MANY, MANY YEARS.
IT COSTS US RIGHT NOW, IF WE DO NOT RAISE OUR FEES, WE'RE GOING TO HAVE TO CUT STAFF.
AND NOW IF WE CUT STAFF, THAT MEANS THAT PERMIT IS GOING TO BE IN A WORSE CONDITION THAN EVER BEEN BEFORE, BECAUSE WE DON'T HAVE ENOUGH STAFF, BECAUSE WE ARE TRYING TO INCREASE STAFF TO GET THAT DONE.
SO OUR RESPONSIBILITY AROUND HERE IS TO EDUCATE THE COLLEAGUES HERE.
AND I'VE BEEN LOOKING AT THIS AND TRYING TO FIGURE THIS OUT.
HOW ARE WE GOING TO DO THESE FEES CHANGES? BUT I WANT TO MAKE SURE ALL OUR COLLEAGUES KNOW WHAT CONDITION WE'RE IN RIGHT NOW.
AND I WANT TO KNOW THE PUBLIC KNOW WHAT CONDITION WE'RE IN RIGHT NOW.
AND SO WE'RE HERE TO WORK THIS OUT TO GET THIS DONE.
SO I WANT YOU TO GO BACK TO THEM.
WE NEED TO GO BACK TO THE STAKEHOLDERS.
I GOT A WHOLE LIST OF QUESTIONS HERE WITH A WHOLE LOT OF STAKEHOLDERS.
I DON'T KNOW, ALL THE COLLEAGUES GOT THIS QUESTION.
WE'RE NOT GOING TO GO THROUGH ALL OF THIS.
I'LL GIVE IT TO [INAUDIBLE] AND MAKE SURE THAT IT WAS SPREAD OUT TO STAFF.
SO IT WOULD NOT BE FAIR TO US.
SO I'LL GIVE YOU THIS ALL THESE QUESTIONS WHEN THEY ASK.
AND WITH THAT, I'M GOING TO OPEN IT UP TO COLLEAGUES.
THANK YOU. CHAIR, I APPRECIATE YOUR YOUR COMMENTS AND QUESTIONS AS WELL.
AND I ALSO GOT I RECEIVED THE REAL ESTATE COUNSEL'S CONCERNS.
CERTAINLY. CAN WE BRING UP THE LAST SLIDE, THE VERY LAST ONE ABOUT THE ENGAGEMENT.
OKAY. AND SO WHEN WAS THE STUDY ACTUALLY PUBLISHED THAT CAME OUT? IT WAS IN OCTOBER COUNCIL MEMBER WAS IT OCTOBER 27TH, I BELIEVE SO, YEAH.
WE PUT OUT A MEMO ON OCTOBER 27TH.
DO YOU THINK IT'S IT'S REALISTIC THAT YOU CAN HAVE ALL THE CONVERSATIONS YOU NEED TO HAVE BEFORE? ARE YOU ASKING US TO HAVE A VOTE ON THE 13TH OF DECEMBER? THAT WAS THE REQUEST, YES.
COUNCIL MEMBER IS IT REALISTIC FOR THE DEPARTMENT TO HOLD ALL OF THE MEETINGS YOU NEED TO HAVE AND TRY TO WORK THROUGH THESE THINGS BEFORE DECEMBER 13TH? IT'S A VERY TIGHT TIMELINE, COUNCIL MEMBER.
BUT LIKE EVERYTHING ELSE WE'VE BEEN DOING THIS YEAR HAD A VERY TIGHT TIMELINE.
I UNDERSTAND THAT AND I'M SYMPATHETIC.
I DO SUPPORT FULL COST RECOVERY.
AS THE CHAIRMAN SAID, WE'RE GOING TO BE IN THE RED.
WE'RE NOT GOING TO BE ABLE TO RUN THE DEPARTMENT WITHOUT IT.
I FEEL LIKE WE'RE LOOKING AT THIS THROUGH ONE LENS RIGHT NOW, THE LENS OF HERE'S WHAT IT COSTS, LET'S GO GET SOME MORE MONEY VERSUS HERE'S WHAT IT'S COSTS. HOW DO WE CUT SOME OF THOSE COSTS AND BE MORE EFFICIENT?
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AND I DON'T SEE THAT THIS REPORT WAS NOT INTENDED TO DO THAT.THAT SHOULD BE SOMETHING WE SHOULD BE TALKING ABOUT HOW WE BECOME MORE EFFICIENT.
WE'VE GOT TO. HOW DO WE COMPARE TO PEER CITIES? YOU KNOW, IF IT COSTS US $1,000 TO PROCESS A SINGLE FAMILY PERMIT, I'M MAKING THAT NUMBER UP.
IF IT COSTS US THAT, WHAT DOES IT COST? FORT WORTH? WHAT DOES IT COST? HOUSTON? ARE WE COMPARABLE TO OUR PEER CITIES? I'D LIKE TO KNOW THAT BEFORE I WOULD VOTE ON SUPPORTING SOME HUGE FEE INCREASE.
DO YOU UNDERSTAND? COUNCIL MEMBER? I DO UNDERSTAND THAT THAT IS A WOULD BE A VERY COMPREHENSIVE ASSESSMENT AND VERY COSTLY TO GO OUT AND ASSESS OTHER CITY OPERATIONS AND SEE WHAT IT COSTS THEM TO PROCESS A SINGLE FAMILY PERMIT, BUT THAT'S DEFINITELY AN OPPORTUNITY THAT CAN BE EXPLORED.
I APPRECIATE YOUR CANDOR ON THAT.
I WOULD GUESS INDUSTRY COULD PROBABLY PROVIDE YOU WITH SOME PRETTY QUICK ANSWERS TO THAT.
IF YOU ASK, ASK THEM FOR THAT.
AND I GUESS THE OTHER QUESTION I HAVE IS IF WE'RE GOING TO BE RAISING THE FEES THIS MUCH.
SO WHAT DOES THE CONSTRUCTION INDUSTRY GET OUT OF THIS? ARE THEY GOING TO GET BETTER SERVICE? YOU KNOW, IF I BUY A $5 CAR WASH OR A $50 CAR WASH, I EXPECT A DIFFERENT CAR WASH IF I GO FOR THE $50 CAR WASH, IF WE'RE GOING FROM BASE LEVEL TO PREMIUM WITH THESE FEES, ARE WE GOING TO SEE PREMIUM SERVICE? COUNCIL MEMBER, WHAT OUR COMMITMENT IS, IS TO CONTINUE WHAT WE'VE DONE THIS PAST YEAR, WHICH WAS BE AGGRESSIVE WITH RECRUITMENT, ENHANCE OUR TECHNOLOGY, GET IT ACROSS THE FINISH LINE, ADD ADDITIONAL TEAMS TO CONTINUE THE SAME DAY PERMITTING.
WE'RE THE ONLY CITY IN THIS AREA THAT DOES SAME DAY PERMITS.
CONTINUE TO TRAIN AND INVEST IN OUR TEAM MEMBERS.
INCENTIVIZE THEM THROUGH CERTIFICATION PAY.
AND SO AS LONG AS I'M HERE COUNCIL MEMBER YOU HAVE THAT COMMITMENT FROM ME, THAT THAT'S WHAT'S GOING TO COME OUT OF WHATEVER FEE IS IMPLEMENTED OR IS NOT IMPLEMENTED. I UNDERSTAND, AND I'M NOT GOING TO GO THROUGH THESE QUESTIONS.
I GUESS WHAT I WOULD JUST ASK FROM OUR INDUSTRY FOLKS WHO ARE HERE IS TO WORK WITH STAFF.
IF IT'S A VERY LENGTHY DOCUMENT, THOUSANDS OF CATEGORIES OF PERMIT FEES, IF THERE ARE SOME THAT INDUSTRY AGREES WITH AND ARE LIKE, YOU KNOW, WE GOT IT, THERE'S THERE'S NO PROBLEMS. WE CAN JUST MARK THOSE OFF THE LIST AND HONE DOWN TO THE ONES THAT WE HAVE ISSUES WITH.
IT WOULD BE NICE TO KNOW WHAT THAT FOCUS LEVEL IS.
ARE WE LOOKING AT A REAL PROBLEM WITH 10% OF THE FEES? WE'RE LOOKING AT A PROBLEM WITH 100% OF THE FEES.
FOR THOSE OF US THAT REALLY WANT TO GET IN THE WEEDS ON THIS, I WOULD LIKE TO KNOW THE ANSWER TO THAT AND BE ABLE TO HONE IN ON WHAT ARE THE ONES THAT ARE THE REAL STICKING POINTS FOR INDUSTRY, AND WE MIGHT NOT AGREE WITH THE INDUSTRY.
WE'RE HEMORRHAGING CASH IN YOUR DEPARTMENT AND THAT NEEDS TO STOP.
THAT ALSO MEANS THAT WE HAVE BEEN SUBSIDIZING PRIVATE INDUSTRY FOR SEVERAL YEARS BY BELOW COST RATES FOR PERMITS, AND THEREFORE THEY ARE, I THINK, IN A WEAK POSITION HISTORICALLY TO CLAIM THAT THESE INCREASES THAT ARE BEING PROPOSED ARE EXCESSIVE WHEN THEY HAVE BEEN RECEIVING ESSENTIALLY A SUBSIDY FOR MANY YEARS.
BUT THAT'S THE FOCUS OF MY QUESTIONS HERE.
THE COMPARISON THAT YOU DID ON SEVERAL PAGES OF THE POWERPOINT WITH OTHER CITIES, FEES FOR DIFFERENT TYPES OF PERMITS, THOSE OTHER CITIES ARE ALL BOUND BY THE 100% COST RECOVERY LIMITATION THAT DALLAS IS.
ARE THEY NOT? YES, SIR. AND SO DON'T THOSE ALREADY REPRESENT AN INDICATOR OF THE RELATIVE EFFICIENCY OF YOUR DEPARTMENT IN RELATION TO OTHER CITIES? BECAUSE I NOTICED THAT ALMOST ALL OF THE PERMIT COMPARISONS INDICATED THAT EVEN WITH THE PROPOSED INCREASE IN FEES, DALLAS WAS STILL ON THE LOW END OF OTHER CITIES SURVEYED IN TERMS OF COMPARABLE COMPARISON OF SIMILAR
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PERMITS. AM I NOT CORRECT? COUNCIL MEMBER I WOULDN'T DISAGREE WITH YOU.EVEN WITH THE PROPOSED INCREASES.
WE'RE STILL NOT ANYWHERE NEAR THE TOP END IN ALL OF THOSE COMPARISONS, CORRECT? YES, SIR. SO I PERSONALLY DON'T SEE A NEED FOR SOME SORT OF IN-DEPTH SURVEY OF EFFICIENCY OF OTHER DEPARTMENTS IN RELATION TO OURS.
AS A RESULT, I DON'T HAVE ANY PROBLEM WITH INCREASING THE FEES.
I THINK THAT THE INCREASED FEES, AS PROPOSED, SHOULD BE INSTITUTED AS SOON AS POSSIBLE, SO THAT WE DON'T END UP PUTTING YOUR ENTERPRISE RESERVE FUND INTO A NEGATIVE CONDITION.
SO I SUPPORT WHAT YOU'RE TRYING TO DO IN TERMS OF OUTREACH TO THE DEVELOPMENT COMMUNITY.
WHAT KIND OF PRESENTATION DID YOU MAKE TO THESE VARIOUS ORGANIZATIONS ON THIS OUTREACH PAGE? DID YOU HAVE A DRAFT VERSION OR A SCHEDULE OF PROPOSED FEE INCREASES, OR DID YOU JUST GO TO THEM AND SAY, WE'RE CONSIDERING INCREASING OUR FEES? WHAT DO YOU THINK ABOUT THAT? COUNCIL MEMBER WHEN WE MET WITH OUR DEVELOPMENT COMMUNITY, BASED UPON THE ACTUAL WORKING GROUP, WE WOULD GIVE PRESENTATIONS, WE SHARED THESE GRAPHS, MAYBE NOT THIS ONE WITH THE YELLOW AND GREEN COLORS, BUT WE SHOWED WHERE WE COMPARED TO OTHER CITIES AND WE WERE VERY HONEST AND OPEN.
OKAY, SO YOU HAVEN'T PREVIOUSLY SHARED THE PROPOSED INCREASES IN THE DIFFERENT FEES WITH THE COMMUNITY? NOT NOT THE FINAL DOCUMENT THAT WENT OUT ON OCTOBER 27TH, LIKE COUNCIL MEMBER WEST MENTIONED, BUT NOT IN DRAFT FORM EITHER.
CERTAINLY. WHAT KIND OF RESPONSE DID YOU GET AT THE OUTREACH MEETINGS? NONE. OKAY.
I'M NOT SURE WHAT KIND OF RESPONSE YOU'RE GOING TO GET.
OTHER THAN A GENERAL COMPLAINT THAT, GEE, YOUR FEES ARE GOING UP, WHICH I WOULD ANTICIPATE THEM SAYING, BUT THEY CAN'T REACH INTO YOUR DEPARTMENT'S FINANCES AND IDENTIFY WHERE YOU COULD CUT COSTS AND THEREFORE REDUCE THE FEES.
WE'RE NOT TRYING TO MAKE A PROFIT CENTER OUT OF THIS.
DO YOU HAVE A THOUGHT AS TO WHAT YOUR PLAN WILL BE? COUNCIL MEMBER WHEN I JOINED THE TEAM, I MADE IT VERY CLEAR THAT WE WERE GOING TO BE HONEST, OPEN AND TRANSPARENT, HAVE REAL, MEANINGFUL ENGAGEMENT WITH THE DEVELOPMENT COMMUNITY SO THAT WE COULD HEAR AND FEEL THEIR PAIN COMING OUT OF THE PANDEMIC.
I REALIZED THAT WE NEEDED TO PARTNER WITH THE DEVELOPMENT COMMUNITY, AND WE'VE DONE THAT THROUGH ONGOING STAKEHOLDER OUTREACH ENGAGEMENT. THAT'S ONE OF MY NUMBER ONE PRIORITIES.
AND SO IN THIS PARTICULAR CASE, NOTHING CHANGES.
WE WILL CONTINUE TO PARTNER WITH THE DEVELOPMENT COMMUNITY AND WORK WITH THEM TO COMMUNICATE HOW WE'RE IMPROVING, HOW WE'RE DOING, AND ANY PROPOSED CHANGES THAT MIGHT IMPACT THEIR BUSINESS OPERATIONS.
WELL, AND AS A FINAL COMMENT, I WOULD COMMEND YOU FOR DOING WHAT YOU HAVE DONE TO INCREASE THE RESPONSIVENESS OF YOUR DEPARTMENT AND TO REDUCE THE TURNAROUND TIME ON PERMITS.
AND THAT, FRANKLY, IS THE BOTTOM LINE FOR DEVELOPERS IS HOW LONG DOES IT TAKE TO GET A PERMIT? AND I THINK THAT'S FAR MORE IMPORTANT AND PRIORITY FOR THEM THAN WHETHER YOU'RE GOING TO INCREASE THE FEE 5 OR 10% OR WHATEVER THE PERCENT IS.
AND SO YOU HAVE RESPONDED TO THE PRINCIPAL CONCERN BY REDUCING THE TIME TURNAROUND.
AND I THINK THEY SHOULD BE WILLING TO PAY THE COST OF DOING THAT.
[00:35:01]
THANK YOU, MR. CHAIR.THANK YOU SO MUCH FOR LETTING ME JOIN THE COMMITTEE TODAY.
I HAD A COUPLE OF QUESTIONS, AND WHILE IT SOUNDS LIKE NOW THAT THE STUDY'S BEEN RELEASED AND INDUSTRY CAN REACT TO THE FIGURES, ENGAGEMENT CAN CONTINUE, BUT I HOPE THAT IT'S ALSO RESPECTED THAT THERE ARE SOME REAL REALITIES AROUND THESE NUMBERS.
BUT NOW SO MUCH PROGRESS HAS BEEN MADE.
SO MY QUESTIONS ARE ABOUT THE DEVELOPMENT ENTERPRISE FUND RESERVE, BECAUSE WHEN IT'S NOT GOING TO FUND A BUILDING OR SUBSIDIZE THESE FEES, WHAT ARE SOME OF THE THINGS WE WOULD WANT TO HAVE THAT RESERVE HELD FOR? WHAT ARE THE TYPES OF EXPENSES WE WOULD WANT TO HAVE THAT FUND AVAILABLE FOR? THANK YOU FOR THE QUESTION, COUNCIL MEMBER, WE'VE JUST PURCHASED THE POLICY REPLACEMENT SYSTEM.
THAT'S A 10,000,000 MILLION DEAL THAT REQUIRES ANNUAL UPGRADES EVERY SINGLE TIME.
AH PROJECT DOCKS, THE ACTUAL DOCUMENTATION SUBMITTED SERVICES.
THAT'S ANOTHER SYSTEM THAT WE NEED TO UPGRADE.
WE'VE LOST SO MANY PEOPLE TO TO THE INDUSTRY.
AND YOU KNOW, WHEN THE INDUSTRY IS PAYING A SENIOR ENGINEER 200, $250,000, WHERE WE'RE PAYING A SENIOR ENGINEER, 110, $120,000, THERE'S GOT TO BE THAT PAY PLAN THAT ANDREW HAS TALKED ABOUT.
TRAINING, UPKEEPING THE BUILDING, WORKING TOGETHER WITH OTHER DEPARTMENTS.
THERE'S A LOT OF FEES THAT WE DON'T CHARGE FOR THAT.
AND IN ANY OPERATION YOU NEVER KNOW WHAT HAPPENS.
YOU NEED TO HAVE RESERVE TO BE ABLE TO OPERATE, WHETHER IT'S AN ENTERPRISE FUND.
SO THAT IS WHY IT'S CRITICAL TO REPLENISH THIS FUND, TO BE ABLE TO DRAW FROM.
IS THIS RELATED TO DALLAS OWNING UTILITIES OR THAT WE SOME CITIES DO AND WE DO NOT HAVE A POWER UTILITY? OR WHY DO WE NOT CHARGE THAT FEE? COUNCIL MEMBER THANK YOU FOR THAT QUESTION.
I'M LOOKING TO OUR DEVELOPMENT SERVICES ENGINEER, SAM ISKANDER, TO KIND OF PROVIDE A LITTLE HISTORY ON THE IMPACT FEES AND WHY THE CITY OF DALLAS MAY NOT CHARGE THOSE FEES. GOOD MORNING OR GOOD AFTERNOON.
SORRY. SAM ISKANDER, ASSISTANT DIRECTOR I HONESTLY DON'T KNOW THE ANSWER.
THE CITY OF DALLAS HAS NEVER CHARGED IMPACT FEES FOR UTILITIES.
SO IT'S BEEN ON THE DEVELOPER TO EITHER PROVIDE UPSIZING OF DOWNSTREAM SYSTEMS, OR TO DO SOMETHING ON SITE TO ENSURE THAT THERE WOULD BE NO ADVERSE IMPACTS ON ANYBODY DOWNSTREAM.
SO YOU'RE SAYING DALLAS GETS AT THAT BUT JUST A DIFFERENT WAY? NO, NO OKAY.
ALL RIGHT. THIS IS WHAT CAUGHT MY EYE ON THIS GRAPH.
IT SAYS FEES AND GRAPH ARE STRICTLY FOR PERMITTING PLAN REVIEW AND INSPECTION SERVICES.
THE CITY OF DALLAS DOES NOT CHARGE UTILITY IMPACT FEES AS OTHER CITIES DO.
THAT'S CORRECT. THAT IS CORRECT.
WELL, IN MY EXPERIENCE, HAS BEEN THAT WE WE TEND TO ADDRESS THIS IN A ONE OFF SITUATION.
IT MAKES IT VERY INCONSISTENT.
AND SO I'M SEEING A HEAD NODDING OVER THERE.
DR. PEREZ. SO I WOULD JUST SAY THAT, MR. CHAIR, THIS MAY BE SOMETHING THAT YOU ALL WANT TO EXPLORE OR THAT WE WANT TO EXPLORE FURTHER I UNDERSTAND.
[00:40:01]
STAKEHOLDERS SURPRISES AND SURPRISE EMAILS BECAUSE IT'S IT SHOULD BE DONE AND MASSAGED BEFORE IT GETS TO US.AND I FEEL LIKE THIS IS JUST AN OLD CONVERSATION.
I AM VERY POSITIVE ABOUT THAT.
WE'VE MADE BIG CHANGES AND YOU ALL KNOW THAT.
I GIVE YOU ALL BIG UPS WHEN YOU'RE DOING VERY WELL.
IT'S LIKE, HOW ARE WE SUPPOSED TO MAKE A DETERMINATION AND A DECISION IF WE DON'T HAVE ALL THE INFORMATION AND, AND, AND NOBODY CAN ANSWER WHY WE DON'T CHARGE IMPACT FEES, BUT EVERY OTHER CITY IN THE STATE DOES.
IT'S NOT LIKE EVERYBODY'S BEEN HERE FOR FIVE MINUTES.
WE'VE BEEN HERE. I'VE BEEN HERE SIX YEARS.
MOST OF THE PEOPLE HERE IN MANAGEMENT HAVE BEEN HERE THAT ENTIRE TIME.
SO WHAT'S THE ANSWER? I WANT TO KNOW WHY WE'RE NOT CHARGING THAT IF EVERYBODY ELSE DOES.
I CAN'T SPEAK FOR THE PAST I'VE.
I MEAN, IMAGINE I'M GOING TO HAVE TO.
I'M GOING TO HAVE TO PUSH BACK ON THAT MAGIC.
I OWN IT NOW. I'M GOING TO PUSH BACK ON MAGIC.
I'M GOING TO PUSH BACK ON THAT MAGIC.
BECAUSE YOU WERE OVER TRANSPORTATION AND INFRASTRUCTURE FOR MANY YEARS.
THOSE IMPACT FEES WEREN'T BEING CHARGED THEN.
NOW WE'RE FINDING OUT ABOUT IT NOW.
AND SO IT'S LIKE I'M JUST SAYING IT'S IT'S NOT A I DIDN'T KNOW.
IT'S A WE JUST KEPT GOING WITH THE THAT'S THE WAY WE ALWAYS DO IT.
AND THAT'S THE WORST THING YOU CAN DO IN CITY GOVERNMENT.
AND SO JUST LET'S GET THIS RIGHT.
AND IF DECEMBER 13TH IS NOT THE RIGHT DATE, I DON'T WANT TO RUSH THIS BECAUSE EVERY TIME WE RUSH SOMETHING ON THIS BODY AND I HAVE HAD ENOUGH EXPERIENCE NOW GOVERNING HERE AND AT THE SCHOOL DISTRICT, EVERY TIME, EVERY SINGLE TIME WE RUSH POLICY, WE END UP WITH POOR POLICY.
AND THAT'S JUST THE EXPERIENCE I'VE HAD.
AND I FEEL LIKE THAT'S WHAT'S HAPPENING RIGHT NOW, IS THAT WE'RE RUSHING THIS BECAUSE WE HAVE NOT DONE WELL, AND NOW WE'RE HEARING ABOUT ALL THESE DEFICITS AND THESE BUDGET CUTS, AND WE'RE GOING TO LOSE PEOPLE.
AND THAT'S NOT A POSITIVE THING FOR ME TO HEAR ON THIS BODY, ESPECIALLY THIS COMMITTEE.
AND WE'LL BE HERE TILL MY LAST DAY.
AND YOU DON'T HAVE TO PUT UP WITH ME TOO MUCH LONGER.
BUT AS LONG AS I'M HERE, I SWORE AN OATH.
SO I WANT TO KNOW THE ANSWER OF WHY WE HAVEN'T CHARGED THOSE.
GIVE ME THAT INFORMATION AND LET'S GET THIS RIGHT.
AND IF THESE STAKEHOLDERS ARE ALL MESSAGING ME THAT THEY HAVEN'T BEEN TALKED TO, THEY HAVEN'T BEEN TALKED TO, I DON'T KNOW HOW YOU'RE GOING TO TALK TO ALL OF THEM BEFORE THE 13TH. WHAT'S TODAY? THE SECOND, THE THIRD, THE SECOND.
YOU DON'T HAVE A FULL TEN DAYS.
UNLESS YOU ARE ALL GOING TO WORK MORE WEEKENDS AND I KNOW YOU ALL ARE TIRED OF THAT.
I'M JUST TIRED OF THIS CONVERSATION OF TRYING TO PUT THIS TOGETHER AND GET THIS RIGHT.
I HAVE MET WITH EVERY SINGLE OF THESE STAKEHOLDERS OVER THE PAST 4 OR 5, SIX YEARS, OVER AND OVER AND OVER, AND THEY'VE ALL GIVEN ME VERY SIMILAR PLANS, VERY SIMILAR IDEAS, VERY SIMILAR BECAUSE THEY'RE NOT JUST IN DALLAS.
BUT HOW MANY OF YOU ALL ARE JUST ONLY OPERATING IN DALLAS? THEY'RE ALREADY SITTING THERE. YOU RAISE YOUR HAND.
THEY HAVE ALL THE PLANS FROM ALL THE OTHER CITIES.
IT SHOULDN'T HAVE TAKEN US THIS LONG TO GET HERE.
I EXPECT, I EXPECT IN THE NEW YEAR THAT WE'RE GOING TO HAVE A PLAN ON HOW WE'RE GOING TO GET THIS.
ALL RIGHT. I WANT TO SEE IT IN PAPER.
AND THIS DOES NOT SHOW US THAT WE'RE GETTING IT RIGHT.
IT'S NOT OUR RESIDENTS JOBS TO SUBSIDIZE THIS DEPARTMENT.
GET US THE RIGHT. IF THE IMPACT FEES AREN'T EVEN IN HERE.
SO WE'RE NOT EVEN CHARGING THE RIGHT THING IN ORDER TO STAY LOW.
THIS ALL AFFECTS EVERY SINGLE THING, EVERY POLICY THAT WE WANT TO DO HERE IN THE CITY OF DALLAS.
YOU ALL AFFECT EVERY SINGLE PORTION OF THAT.
AND IF WE'RE NOT BRINGING IT THE RIGHT REVENUE TO SUPPORT YOUR DEPARTMENT, THAT MEANS WE'RE NOT BRINGING IN THE RIGHT REVENUE TO SUPPORT THIS ENTIRE CITY OF 1.4 MILLION PEOPLE, AND THE NINTH LARGEST CITY IN THE NATION SHOULD NOT BE SUFFERING LIKE THIS AND TRYING TO FIGURE IT OUT.
[00:45:09]
OVER AND OVER AND OVER, AND I'M TIRED OF IT.I WANT TO SEE RESULTS AND I WANT TO SEE THEM FAST.
YOU KNOW, I'M NOT GIVING YOU ALL ANOTHER YEAR.
YOU MIGHT HAVE THREE MONTHS WITH ME AT THIS POINT.
THANK YOU VERY MUCH, MR. CHAIR. MR. CHAIRMAN, THE ONE QUESTION YOU BROUGHT UP, THE IMPACT FEE.
IT CAME UP MANY, MANY DISCUSSION.
SO WITH SOMEONE THERE, TELL US WHY WE HAVE NOT PUT IMPACT FEES THERE.
I'M SORRY, MR. CHAIRMAN. [INAUDIBLE] CAME UP MANY, MANY TIMES.
AND FOR SOME REASON THEY HAVE NOT DONE SO.
GIVE THEM A CHANCE TO EXPLAIN WHY.
MR. CHAIR, THERE HASN'T BEEN A POLITICAL WILL, AND I APPRECIATE COUNCIL MEMBER NARVAEZ TELLING ME THAT I THINK THE DEPARTMENT OVER THE PAST YEAR AND A HALF HAS MOVED LEAPS AND BOUNDS IN OPERATION.
THERE IS A LOT OF WRONG OPERATIONAL THINGS IN THE DEPARTMENT.
WHEN THIS TEAM TOOK IT OVER AND THEY FIXED SO MANY OPTIONS, SO MANY OPERATIONS, WE FIXED THE FEES, WERE FIXING THE FEES THAT WORKED ON THE PROCESSES THAT PUT IN DEVELOPMENT SERVICES GUIDE THERE, THERE CHANGING THE SYSTEM, THE OUTDATED SYSTEM THAT HAS BEEN THERE FOR 20 YEARS THAT NOBODY HAD TOUCHED, AND THEY'RE WILLING TO SPEND THEIR TIME ENERGY.
I HAVE TWO ASSISTANT DIRECTORS WHO SPENT 16 HOURS A DAY WORKING.
I KNOW THAT BECAUSE I BOTHERED THEM EVERY SINGLE DAY FROM THE MORNING TO THE NIGHT TIME.
I KNOW THEY'RE WORKING HARD AND TO UNDO 50 YEARS OF, PARDON MY LANGUAGE, CRUD.
IT TAKES WHILE WE'VE WORKED ON THE OPERATION.
IT'S IT'S NOT EASY TAKING AND STEERING THE SHIP IN THE RIGHT DIRECTION ALL AT ONCE.
AND THAT'S BEEN THE FRUSTRATING THING.
I WHEN I WAS OVER THE THE INFRASTRUCTURE GROUP, I SUGGESTED TO COUNCIL SEVERAL TIMES, EVEN DURING THE BOND PROGRAM, THAT WE WANTED TO CHARGE IMPACT FEES.
THERE'S NOT A POLITICAL WILL FOR IT.
AND THAT'S THE CHALLENGING PART OF IT.
NOW, I WOULD LOVE TO TAKE ON THAT.
AND MR. NARVAEZ IS 100% RIGHT.
WE NEED TO CHANGE THAT TO DO IT THE RIGHT WAY.
AND THAT'S FRUSTRATING FOR ME BECAUSE I KNOW WE'VE SPENT SO MUCH TIME AND ENERGY DURING THE BOND, DURING THE IMP, DURING DURING A LOT OF THE TRANSPORTATION STUDIES AND ALL OF THAT, EVEN TRANSPORTATION IMPACT FEES.
AND I DON'T WANT TO PUT WORDS IN THEIR MOUTH, BUT WE HAVE TO DO IT LEGALLY, MORALLY AND ETHICALLY.
AND SO WE HAVE TO DO OUR DUE DILIGENCE IN THIS.
SO MAJID, WHAT CHAIRMAN WAS SAYING AND WHAT I'VE BEEN HEARING WITH STAFF, WHY WE HAVE NOT BEEN CHARGED THE IMPACT FEES.
SO I WANT TO MAKE SURE EVERYONE CLEAR AND UNDERSTANDING IT, HOW IT CAME UP ABOUT IMPACT FEES.
IT HAS CAME UP MANY, MANY YEARS ABOUT IMPACT FEE, MAYBE IN ANOTHER DEPARTMENT, ANOTHER SETTING.
BUT DR. PEREZ, CAN YOU JUST GIVE SOME INSIGHT? BECAUSE I THINK EVERYONE NEEDS TO KNOW WHY WE HAVE NOT BEEN CHARGING THE IMPACT FEE, AND WE SHOULD BE CHARGING IMPACT FEES BECAUSE OTHER CITIES DO CHARGE IMPACT FEE. BUT A STUDY DID NOT RECOMMEND WE SHOULD CHARGE IMPACT FEE.
BUT THAT CAME OUT WITH THIS STUDY BECAUSE I ASKED THAT BEFORE WHY WE'RE NOT DOING SO.
I'M JUST TRYING TO GIVE STAFF A CHANCE TO EXPLAIN WHY WE HAVE NOT BEEN DOING IMPACT FEES.
SO IT'S FAIR TO EVERYBODY BECAUSE WE ALL HERE WORK TOGETHER AS ONE.
HONORABLE CHAIR ROBERT PEREZ, ASSISTANT CITY MANAGER.
SO YEAH, I THINK HISTORICALLY WE'VE IDENTIFIED IMPACT FEES AS A MECHANISM THAT WE DO NOT HAVE.
WE DID ACTUALLY PUT FUNDING INTO THE FY 20 BUDGET TO ACTUALLY DO THAT STUDY.
[00:50:02]
AND SO GIVEN THAT WE'RE IN THE IN THE MIDST OF COVID AND THEN SOME OF THE PERMITTING CHALLENGES, WE DECIDED IT PROBABLY WOULDN'T BE THE BEST OPPORTUNITY OR THE BEST TIME TO TO IMPOSE THAT NEW FEE, GIVING OUR PERMITTING ENVIRONMENT.AND SO NOW THAT THE DEPARTMENT HAS COME, HAS COME ALONG AND DONE A GREAT JOB AS FAR AS IMPROVING THE PROCESSES, THAT'S SOMETHING THAT WE ARE EXPLORING NOW AND WE ACTUALLY HAVE, I THINK WE DISCUSSED A MEMORANDUM BY BRIEFING OR BRIEFING BY MEMORANDUM AND TRANSPORTATION COMMITTEE, IN WHICH WE WOULD DISCUSS AND EVALUATE A NUMBER OF FEES TO INCLUDE THE IMPACT FEES, BOTH FOR STREETS AND FOR TRANSPORTATION.
AND WE'VE ACTUALLY HAD SOME SOME TOUCH POINTS WITH AT LEAST ONE OF THE STAKEHOLDERS IN THE AUDIENCE AS FAR AS BEING PART OF THAT GROUP AS WE MOVE FORWARD ON ON THOSE PROCESSES. SO HISTORICALLY BEFORE 2020, WE NEVER DID IT IN 2020.
WE WANTED TO DO IT, BUT WE DIDN'T.
OKAY. I JUST WANT TO MAKE SURE THAT, YOU KNOW, SOMETIME THAT WE WE DO ANSWER THE QUESTION IN SOME DEPARTMENT AND SOME WE'RE NOT ON THE SAME COMMITTEE, YOU KNOW, TRANSPORTATION COMMITTEE, SOME ECO, SOME OF OUR OWN COMMITTEE.
BUT I KNOW IT DID COME UP ON MANY TIMES THERE.
MAYOR PRO TEM ARNOLD, SHE HAVEN'T SPOKE YET.
I DEFINITELY CAN SPEAK TO THAT.
SO I KNOW IT'S GOING TO TAKE TIME.
WE DO APPRECIATE YOUR WORK, BUT I WOULD LIKE TO ADDRESS THE ISSUE OF THE OUTREACH.
AND SO WE'VE GOT TO TAKE CARE.
WE MUST TAKE CARE OF THE SHORTCOMINGS THAT WE SEE HERE.
SO IF WE'RE NOT REALLY CHARGING TO DO BUSINESS IN DALLAS NUMBER ONE, WE'RE GOING TO HAVE TO DO THAT.
THAT'S JUST THE NATURE OF THE BEAST AND THE TIME THAT WE'RE LIVING IN.
SO IT'S NOT A COMFORTABLE CONVERSATION TO HAVE, BUT IT'S REALISTIC.
AND ONCE AGAIN, COVID WE KNOW HAS BROUGHT ABOUT A WHOLE NEW MINDSET AND EXPERIENCE.
AND IT'S ALSO GIVEN US SOME QUESTIONS THAT WE HAVE NO ANSWERS TO.
IS THIS, YOU KNOW WHAT'S HAPPENING TO EMPLOYMENT? PEOPLE DON'T WANT TO WORK.
YOU'RE PUBLISHING, YOU'RE TRYING TO GET FOLKS TO COME IN THE ENGINEERS AND THEY'RE GOING THE FEW THAT ARE HERE, AS YOU STATED, GOING FOR THE HIGHER SALARIED POSITIONS. AND SO WE TRY TO LURE THEM HERE.
AND THEN IF YOU HAVE ALL OF THIS DYSFUNCTIONALISM, THEN THERE IS A CONCERN.
SO I WILL I DON'T KNOW AT THIS POINT.
WELL, YOU KNOW, I'M JUST TRYING TO CHECK WITH THE LAWYERS.
SO, AS I STATED, THANK YOU AGAIN FOR YOUR WORK.
I DON'T GET THE IMPRESSION THAT THEY ARE JUST LOLLYGAGGING AROUND, BUT WE NEED TO HAVE THIS CONVERSATION SO THE COMMUNICATION IS THERE AND THAT THE PARTNERS IN BUILDING THE CITY OF DALLAS ARE ALSO AT THE TABLE.
NOT TO BELABOR THE POINT, BUT SO WE CAN UNDERSTAND BETTER THE PROCESS.
AND THAT'S WHAT I WOULD LIKE TO BE ABLE TO DO.
I EVEN HAD A CONVERSATION TODAY, AND I'LL THROW THIS IN JUST AS A COMMERCIAL WITH MR. TRAVIS REYNOLDS HERE HELPING ME TO UNDERSTAND ABOUT DEVELOPMENT.
AND SO IT'S GOOD FOR US TO HAVE THE CONVERSATION.
[00:55:05]
BUT THOSE ARE ALL MY WORDS FOR THIS PARTICULAR TOPIC CHAIRMAN.COUNCILMAN RIDLEY. THANK YOU, MR. CHAIR. JUST A QUICK FOLLOW UP.
DR. PEREZ, I TEND TO AGREE THAT WE SHOULD CONSIDER HAVING A DISCUSSION ABOUT WHETHER WE CHARGE IMPACT FEES GOING FORWARD, BUT THAT DOESN'T NEED TO IMPACT WHAT'S BEING PROPOSED BY THE DEPARTMENT TODAY IN TERMS OF THE FEES FOR BUILDING PERMITS, ISN'T THAT CORRECT? YES, SIR. THAT'S CORRECT.
OKAY. AND I THINK TIME IS OF THE ESSENCE.
WE'RE HEMORRHAGING CASH EVERY DAY AT THE TUNE OF MILLIONS OF DOLLARS OVER THE YEAR.
WE NEED TO ADOPT THESE FEE INCREASES TO CHARGE THE REAL COST OF OUR IMPROVED SERVICE TO THE DEVELOPERS WHO HAVE BEEN DEMANDING THAT SERVICE. SO I ENCOURAGE YOU TO PROCEED EXPEDITIOUSLY WITH YOUR PROPOSAL.
IS [INAUDIBLE] STILL HERE? OKAY. [INAUDIBLE].
I THINK THE GUIDANCE, WHAT YOU'RE GOING TO DO IS, NUMBER ONE, THERE'S A WHOLE LOT OF QUESTIONS THAT NEED TO BE ANSWERED, YOU KNOW, FROM THE STAKEHOLDERS AND STAKEHOLDERS IF I CAN GET IT IN.
I KNOW Y'ALL WROTE SOME QUESTIONS TODAY AND WE GOT THOSE TODAY.
SO WHATEVER QUESTION THAT CAME IN TODAY, WE'RE GOING TO GIVE THEM BACK TO YOU BY THURSDAY.
IF YOU GOT SOME MORE QUESTIONS TURN THOSE IN.
WE'LL GET THEM BACK TO YOU BY FRIDAY.
SO I WANT EVERYTHING ADDRESSED BY FRIDAY BEFORE 5:00.
SO EVERYBODY AT LEAST HAVE THEIR QUESTION ANSWERED OKAY.
THE NEXT ITEM WOULD BE D UPDATE AND INVESTMENT AFFORDABLE HOUSING FINANCIAL GOAL.
SO, ROBIN, YOU DOING DEE? YES. GOOD AFTERNOON, COMMITTEE MEMBERS.
ROBIN BENTLEY WITH ECONOMIC DEVELOPMENT.
I KNOW THE AGENDA, SAYS GEORGE ASHTON, MANAGING DIRECTOR OF LISC, HIS BRIEFING.
BUT HIS FLIGHT TO DALLAS WAS CANCELED THIS MORNING.
AND JUST BY WAY OF BACKGROUND, YOU ALL PROBABLY REMEMBER TWO YEARS AGO, ALMOST EXACTLY TWO YEARS AGO, IN DECEMBER OF 2021, THE COUNCIL AGREED TO PUT $6 MILLION OF SEED FUNDING INTO THE NEW DALLAS HOUSING OPPORTUNITY FUND.
AND THE REQUIREMENTS WE PUT ON THE MANAGERS OF THE FUND, TREC AND LISC WERE TO RAISE AN ADDITIONAL $40 MILLION AND TO BUILD 1500 UNITS OF HOUSING AND TO COME BACK ONCE A YEAR AND TELL US HOW IT'S GOING.
GOOD AFTERNOON AND THANK YOU AGAIN.
THANK YOU. WE CAN GO TO THE NEXT SLIDE, THAT NEXT ONE, PLEASE.
SO YOU MAY KNOW, LISC IS OUR NATIONAL COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION, WE ARE LOOKING AT IN 38 CITIES, WE MANAGE ABOUT $800 MILLION IN INVESTMENTS. LISC FUND MANAGEMENT, A SUBSIDIARY OF LISC, AND WE ARE REGISTERED INVESTMENT ADVISER WITH THE SEC.
AND THIS IS OUR LEADERSHIP TEAM HERE.
NEXT SLIDE PLEASE. LISC DOES NOT HAVE A LOCAL OFFICE IN DALLAS.
AND OF COURSE LINDA IS HERE AS WELL TODAY.
NEXT SLIDE PLEASE. THIS IS A QUICK HIGH LEVEL OVERVIEW OF THE FUND.
WE CALL IT. THE FUND WAS SEEDED BY $6 MILLION FROM THE CITY OF DALLAS.
OUR GOAL IS TO FINANCE UP TO 1500 AFFORDABLE HOUSING UNITS BY 2031.
THE REQUIREMENTS TO BE INTO THE FUND IS THE PROJECT HAS TO BE LOCATED WITHIN THE CITY OF DALLAS, AND FOR EACH PROJECT, AT LEAST HALF OF THE UNITS HAVE TO HAVE RENTS THAT ARE AFFORDABLE AT 120% OF THE AREA MEDIAN INCOME OR BELOW.
FOCUS ON THE FUND, WE WILL SUPPORT NEW CONSTRUCTION AS WELL AS PRESERVATION AND RENOVATION PROJECTS.
WE ARE LOOKING TO FIND PROJECTS THAT ARE MIXED INCOME IN NATURE, AND ALSO LOOKING FOR PROJECTS THAT ARE LOCATED IN AREAS OF HIGH OPPORTUNITY. SO SINCE WE SIGNED OUR GRANT AGREEMENT IN THE SECOND QUARTER OF 2022, WE HAVE SIGNED ON TWO
[01:00:05]
NEW INVESTORS. WE'VE RAISED $17.5 MILLION OF ADDITIONAL DEBT AND EQUITY, IN ADDITION TO THE 6 MILLION FROM THE CITY.WE'VE CLOSED ON FIVE DEALS, WHICH WE'LL TALK ABOUT IN MORE DETAIL FURTHER.
SO RAISED $17 MILLION AND CLOSED ON FIVE DEALS THAT ARE UNDER CONSTRUCTION RIGHT NOW.
WE'VE PUT OUT $22 MILLION INTO DEALS THAT ARE UNDER CONSTRUCTION.
WE HAD A GROUNDBREAKING AT KIVA EAST, WHICH MAYOR JOHNSON PRESIDED OVER.
TO DATE WE HAVE $2,022 MILLION RAISED IN LESS THAN A YEAR AND A HALF.
WITH TWO AND A HALF YEARS LEFT TO GO TO REACH THE GOAL OF 46 MILLION BY 2026.
WE HOPE TO EVENTUALLY HAVE A 50 TO $60 MILLION FUND BY THE END OF 2024.
I WOULD JUST POINT OUT ONE NOTE AT THE BOTTOM THERE.
ALL 300 UNITS THAT ARE UNDER CONSTRUCTION SHOULD BE COMPLETED AND LEASED UP BY THE END OF 2024.
SO WE ARE VERY MUCH ON TRACK TO EXCEED OUR GOAL OF 1500 UNITS.
WE HAVE ALMOST 2000 UNITS IN OUR PIPELINE THAT WE'RE CURRENTLY UNDERWRITING.
THE BLUE AREAS HERE ON THE MAP ARE AREAS THAT THE CITY HAS IDENTIFIED AS AREAS OF HIGH OPPORTUNITY.
SO I THINK WE'VE DONE A GOOD JOB OF FINDING A MIX OF DEALS THROUGHOUT THE CITY.
AND LASTLY, THE CHALLENGES THAT WE'VE SEEN SO FAR WITH THIS FUND IS THE 15 YEAR AFFORDABILITY RESTRICTION, WHICH IS IMPORTANT FOR RENTAL PROJECTS, HAS BEEN A CHALLENGE FOR US ON FUNDING FOR FOR SALE HOUSING DEALS.
WE WOULD PROBABLY LOOK AT SOME POINT TO SEE IF WE CAN GET THAT CHANGED, TO BE MORE IN LINE WITH THE CITY'S REQUIREMENTS FOR FOR SALE DEALS OF 5 TO 7 YEARS AND OF COURSE, THE BANKING ENVIRONMENT. WITH A LOT OF THE LARGER BANKS CUTTING BACK ON THEIR CONSTRUCTION FINANCING AND THE RATES INCREASING HAS CREATED LARGER GAPS IN OUR DEALS.
WITH THAT IN THE COMMITTEE, I SEE CHAIRMAN WEST.
THANKS CHAIRMAN. I APPRECIATE THE UPDATE AS ALWAYS, AND YOUR HARD WORK ON THIS HOUSING IS OUR BIGGEST CHALLENGE IN THE CITY RIGHT NOW IN MY OPINION, AND WE'VE GOT TO TAKE IT SERIOUSLY AS A CITY, AND WE'VE GOT TO WORK WITH OUR STAFF AND OUR INDUSTRY PARTNERS.
AND GLAD TO SEE YOU GUYS AT THE TABLE.
WHAT CAN WE DO AS A COUNCIL TO HELP YOU? I MEAN, ANY HELP YOU CAN DO WITH GETTING THE WORD OUT THERE AND THE GOOD WORK THAT WE'RE DOING, ESPECIALLY WITH BANKS AND INVESTORS, JUST TO LET THEM KNOW THE GOOD WORK THAT WE'RE DOING. AND WE'RE ALWAYS LOOKING FOR MORE INVESTORS INTO THE FUND.
THAT'S THE BIGGEST KIND OF CHALLENGE WE HAVE IS FINDING MORE INVESTORS INTO THE FUND.
HERE'S HOW IT WILL BENEFIT YOU.
IT'S GOING TO BENEFIT THE CITY.
HERE'S HOW IT WILL BENEFIT YOU, OR AT LEAST NOT LOSE YOU MONEY.
THAT WAS VERY HELPFUL TO GET THE WORD OUT, BECAUSE I DO THINK THERE IS THIS MISUNDERSTANDING OF WHAT WE'RE TRYING TO ACCOMPLISH WITH THE AFFORDABLE HOUSING AND THE FACT THAT THIS IS MIXED INCOME.
THE HARDEST CHALLENGE WE HAVE IS MOSTLY IN FUND RAISING.
WE HAVE NO PROBLEMS IN GETTING DEALS BECAUSE THERE ARE A LOT OF OPPORTUNITIES THAT ARE THERE THAT FRANKLY, DON'T HAVE FINANCING, AND THIS IS THE PERFECT VEHICLE FOR THAT. SO WHAT WE HAVE TOLD INVESTORS, WHICH ARE MOSTLY MAJOR FINANCIAL INSTITUTIONS, IS THIS IS A READY, PROJECT, READY FUND TO BE ABLE TO FUND IMMEDIATELY
[01:05:05]
AND CLOSE PROJECTS QUICKLY BECAUSE OUR PROCESS IS PRETTY STREAMLINED, BUT THEY ARE LOOKING FOR A HIGHER RETURN THAN WHAT WE'VE BEEN ABLE TO PROVIDE, AND WE HAVEN'T REALLY GOTTEN ANY SUPPORT FROM THE PHILANTHROPIC COMMUNITY IN DALLAS.SO THE MAJORITY, I CAN'T SAY EVERY SINGLE ONE BECAUSE THERE'S A LOT OF THOSE.
THEY JUST DON'T FIND THIS TO BE AN ATTRACTIVE INVESTMENT FOR THEM AT THIS PARTICULAR TIME.
FROM THE LARGE BANK PERSPECTIVE AND SOME OF THE SMALLER BANK PERSPECTIVES, IT'S THE RETURN.
AND WE DID ACTUALLY CHANGE OUR RETURN PARAMETERS EARLIER THIS YEAR IN RESPONSE TO THE INCREASING INTEREST RATE ENVIRONMENT, BUT THAT STILL DID NOT DRIVE MUCH INVESTMENT.
AND I HAVE A, I GUESS, A FOLLOW UP POINT AND THEN A QUESTION.
SO THE POINT BEING, WE HAVE A LOT OF PEOPLE TALKING TO US ABOUT HOW CITY DO SOMETHING ABOUT HOUSING AND ASKING US HOW THEY CAN HELP. THIS IS A CALL TO ACTION.
THIS IS AN OPPORTUNITY TO DO SO.
MAYBE NOT AS GREAT AS IN THE MARKET, BUT YOU DO MAKE SOME.
AND THEN MY QUESTION IS ONE OF THE CRITIQUES OF THE MONEY IN OUR BOND THAT'S PROPOSED FOR HOUSING IS THAT THERE'S NO SHOVEL READY PROJECTS IDENTIFIED FOR THAT, AND THAT THERE HASN'T BEEN A TRACK RECORD OF PUSHING OUT BOND MONEY FOR HOUSING.
IS THIS A LEGAL AVENUE? WHEREAS IF WE HAD $20 MILLION OR WHAT HAVE YOU THAT'S ALLOCATED IN THE BOND FOR HOUSING.
IT COULD BE POURED INTO YOUR TRUST THE LIST TRUST FOR HOUSING PROJECTS.
AND THIS IS THIS IS AN ANSWER.
AND AGAIN, WE HAVE CLOSED MORE DEALS FASTER, AND I WILL I HAVE TO APPLAUD OUR TEAM AT THE REAL ESTATE COUNCIL AND BEN AND HIS HIS FOLKS, WE CLOSED DEALS FASTER THAN THEY EVER SAW ANY OTHER FUND CLOSED DEALS IN THE COUNTRY WHEN THEY STARTED THESE FUNDS UP.
THE DEALS ARE HERE AND THEY'RE READY TO CLOSE.
SO THE ANSWER TO THE QUESTION IS WE'VE GOT THE PIPELINE.
SO THAT WILL BE I DON'T NEED TO GET INTO IT NOW, BUT THAT'S COMING.
THANKS, CHAIRMAN NARVAEZ, THANK YOU VERY MUCH, MR. CHAIRMAN. FIRST, THANK YOU ALL FOR YOUR COMMITMENT TO OUR CITY.
I KNOW THIS IS NOT LIKE YOU'RE GETTING PAID TO DO IT.
IT'S NOT LIKE YOU'RE JUST, YOU KNOW, HAVE AN EXTRA DAY TO DO ALL OF THIS.
BECAUSE WE CAN'T EXPECT THE WAY WE'VE BEEN DOING IT ON THE BACKS OF DEVELOPERS.
BECAUSE YOU CAN ONLY GIVE US SO MUCH AND THEN IT DOESN'T WORK RIGHT.
RIGHT. THE STATE JUST DID SOMETHING FOR HIGHER FEES AND PARKLAND DEDICATION.
SO AND THAT'S THE PART WHERE I DON'T THINK EVERYBODY ALWAYS UNDERSTANDS, AND PROBABLY A LOT OF US DO, BECAUSE WE'RE IN THAT INSIDER BASEBALL TYPE THING WHERE IT'S LIKE, OH, I DIDN'T KNOW HOW EVERYTHING WENT INTO A BUILDING, A HOUSE SIX YEARS AGO.
AND IT'S LIKE, WOW, IT'S IT COSTS A LOT.
AND PEOPLE STILL THINK THAT, LIKE, WHATEVER HAPPENED TO $150,000 HOUSE? I'M LIKE, BABY, THAT'S GONE.
THAT DOES NOT EXIST IN THIS ANYWHERE IN DALLAS ANYMORE, MUCH LESS PROBABLY THE COUNTRY.
BUT BECAUSE OF YOUR DEDICATION AND YOUR WORK WITH THIS, THIS IS A WAY.
[01:10:03]
AND I MEAN, I KNOW LINDA, YOU KNOW, MINE BUILDERS OF HOPE.AND YOU ALL HAVE HELPED THAT ORGANIZATION DO SO MUCH.
AND NOT JUST IN WEST DALLAS, BUT NOW IT'S SPREADING ACROSS THE ENTIRE CITY.
AND THANKS TO JAMES ARMSTRONG, WHO'S OUR LEADER THERE, HE LEARNED HOW HE KNEW HOW TO CONNECT THE DOTS AND GET FOLKS TO THE RIGHT TABLE IN ORDER FOR IT TO GET THE FUNDING THAT WE NEEDED IN ORDER TO DO THAT.
BUT THIS IS A NEW TOOL FOR US THAT CAN MOVE THINGS FASTER.
AND TO HEAR THAT Y'ALL ARE MOVING THINGS FASTER THAN ANYBODY ELSE IN THE COUNTRY, CONGRATULATIONS.
THAT SHOWS YOUR COMMITMENT AND WHAT YOU ALL ARE GOING TO DO.
SO MR. WEST JUST SAID, WHAT CAN WE DO? AND I LOOK FORWARD, IF YOU THINK OF ANYTHING ELSE, BECAUSE YOU GAVE US A BIG ONE.
LET'S DO ONE OF THOSE OUTREACH WORKSHOPS OR WHATEVER IT WAS IN DISTRICT SIX.
I KIND OF THINK THAT NORTHWEST DALLAS AREA MIGHT BE ACTUALLY THE BETTER AREA THAN WEST DALLAS, OR MAYBE EVEN IN THE DESIGN DISTRICT OR I MEAN, I'VE GOT SO MUCH DISTRICT AND EVERYBODY ALWAYS FOCUSES ON WEST DALLAS AND WE FORGET ABOUT ALL THE REST.
AND THERE'S A LOT OF AREAS PRIMED FOR REDEVELOPMENT THAT ARE JUST EMPTY PLACES IN THE ESPECIALLY OF THE UPPER STEMMONS CORRIDOR, WHERE WE CAN PROBABLY ADD IN A LOT OF HOUSING AND OTHER THINGS AS WE GET IT RIGHT.
THANK YOU. AND IF YOU WANT TO COMMENT ON ANYTHING PLEASE DO.
I WILL ADD I'D LOVE TO SEE US DO SOMETHING IN NORTHWEST DALLAS.
I THINK THERE'S A GREAT OPPORTUNITY THERE.
THE FIRST PROJECT THAT WE CLOSED, WHICH WAS KIVA EAST, HAD A BASIS ACADEMY FREE CHILDCARE.
THAT'S JUST WE'D LOVE TO DO THAT MODEL IN OTHER LOCATIONS.
QUESTION ABOUT THE DEPENDENCE THAT YOU HAVE IN YOUR BANK DEALS ON THE CRA REQUIREMENTS, WERE ALL OF THOSE BANK DEALS AND OUTGROWTH OF MEETING COMMUNITY REINVESTMENT ACT GOALS? EVERY SINGLE ONE OF THEM WILL MEET THEIR CRA GOALS.
SO WHAT ARE THE IMPLICATIONS OF THIS FREEZE ON INVESTMENTS IN QUARTER TWO, QUARTER THREE, UNDER THE CRA AS LISTED IN YOUR CHALLENGES? WELL, FIRST OF ALL, CRA IS BEING HAS BEEN REWORKED.
AND SO WE HAVEN'T REALLY DUG INTO THAT.
BUT FRANKLY, IT HAS NOT HAD AN IMPACT.
AND THEIR DESIRE TO TAKE A LESSER RETURN, EVEN THOUGH EVERYTHING WE'VE DONE NOT ONLY THROUGH THIS INVESTMENT BUT ALSO THROUGH COMMUNE INVESTORS IN THE LOANS THAT WE MAKE, ALL ARE CRA QUALIFIED.
SO UNFORTUNATELY, IT HASN'T REALLY PUSHED THE NEEDLE FOR US.
AND I WISH THAT WAS THE CASE, BUT IT HASN'T WORKED WELL.
IS THIS FREEZE FOR A CERTAIN PERIOD OF TIME? HOW LONG WILL THAT LAST? THEY'RE CLAIMING IT HAS TO DO WITH THE INTEREST RATE ENVIRONMENT.
AND THE RETURNS THEY'RE LOOKING FOR ARE NORTH OF 5%, WHICH IS VERY NICE RETURN.
BUT IT'S NOT THE TARGET ANYMORE.
SO IS THIS GOING TO CUT OFF ALL BANK FINANCED DEALS UNTIL THIS FREEZE ENDS? WELL, I CAN'T SPEAK TO ALL BANK FINANCE DEALS, BUT I WILL TELL YOU, BANKS ARE NOT DOING AN AWFUL LOT OF TRANSACTIONS IN THAT THAT LEVEL, ITS NEW NORMAL. AS WE'VE BEEN LEARNING IN THE REAL ESTATE COUNCIL THROUGH REGULAR DEVELOPERS, NOT JUST AFFORDABLE, BUT YOU KNOW, THEY'RE WANTING A HIGHER INTEREST RATE ON TRANSACTIONS. AND SO THOSE INTEREST RATES RIGHT NOW ARE HOVERING CLOSE TO 8% VERSUS WHAT HAPPENED A FEW YEARS AGO, WHICH WAS SUB THREE AND FOUR. THE NEW NORMAL IS PROBABLY GOING TO BE IN THE 6 TO 8% RANGE.
AND, YOU KNOW, TO THE POINT OF ADDRESSING THE OTHER ISSUES THAT WE HAD DISCUSSED EARLIER.
THE MARKET HAS SLOWED DOWN SIGNIFICANTLY.
THERE ARE DEALS HAPPENING, BUT IT'S SLOWED DOWN SIGNIFICANTLY IN OUR CAPITAL MARKETS.
[01:15:03]
PARTNERS HAVE BEEN VERY TRANSPARENT ABOUT THE FACT THAT THE REAL ESTATE INDUSTRY AS A WHOLE, BECAUSE OF THE CAPITAL COST OF CAPITAL, IS SLOWING DOWN SIGNIFICANTLY AND WILL FOR THE NEXT FEW MONTHS AT LEAST.WE'RE HOPING IT'S GOING TO TURN AROUND BEFORE THE END OF THE YEAR OF 24.
BUT WOULD YOU JUST FOR THE FOR THE BENEFIT OF THE COMMUNITY THAT MAY BE LISTENING.
WHAT DOES CRA MEAN? COMMUNITY REINVESTMENT ACT IT IS THE IT'S THE FEDERAL LAW THAT REQUIRES BANKS INVEST IN THE COMMUNITIES IN WHICH THEY SERVE.
AND THERE'S SEVERAL DIFFERENT TESTS UNDER THAT.
SOME OF IT IS INVESTMENT, WHICH WOULD BE AN INVESTMENT IN A FUND LIKE THIS.
SO IF THEY'RE MAKING A SMALL BUSINESS LOAN TO A BUSINESS THAT HAS LESS THAN $1 MILLION IN REVENUE, THEY WILL BE ABLE TO RECEIVE CRA CREDIT TOWARDS THEIR GOALS. IF THEY'RE MAKING A LOAN FOR A MORTGAGE, PARTICULARLY IN LOW INCOME COMMUNITIES OR LOWER LEVEL MORTGAGES, SMALLER MORTGAGES TO LOW INCOME FAMILIES, THOSE ALSO CREDIT.
AND THEN THE SERVICE SIDE OF THE EQUATION IS IF THEY'RE VOLUNTEERING ON A BOARD, IF THEY'RE ASSISTING YOU IN ANY KIND OF ENDEAVOR OR ENDEAVORS RELATIVE TO NONPROFITS THAT SERVE LOW INCOME COMMUNITIES, THEN THAT ALSO IS PART OF THE TEST.
AND AS AS A BANK GOES THROUGH.
I'M SORRY IF I'M BELABORING THIS.
NO, NO, NO. BUT AS A BANK GOES THROUGH THEIR ANNUAL REVIEW WITH REGULATORS LIKE THE FEDERAL RESERVE OR THE OFFICE OF THE COMPTROLLER OF THE CURRENCY, THEY HAVE CERTAIN REQUIREMENTS TO INVEST IN THE COMMUNITIES IN WHICH THEY SERVE.
SO YOU STATED THAT YOU'RE HAVING A DIFFICULT TIME WITH THE BANKS.
WOULD YOU GIVE THAT STATEMENT? AGAIN, I WANT TO MAKE SURE THAT WE HEAR WHAT'S GOING ON WITH YOUR MEETINGS WITH THE BANKS REGARDING THIS FUND AND SUPPORTING.
SO WE HAVE BEEN SUCCESSFUL WITH A FEW BANKS, OBVIOUSLY, TRUIST AS WELL AS SUNFLOWER.
AND WE'RE TALKING TO ANOTHER BANK RIGHT NOW WHO'S VERY INTERESTED IN MAKING A $5 MILLION INVESTMENT.
THAT'S THAT'S MY ASSESSMENT OF WHY THEY'RE SAYING NO.
SO WHERE I AM, AND I JUST HAPPEN TO HAVE MY NOTES ALREADY PREPARED, THE THE CONCERN FOR ME IS THAT SOME OF THE STAPLE NAMES THAT HAVE YEARS, HAVE FOR YEARS CREATED THIS WHOLE SYSTEM OF INEQUITY AS IT RELATES TO REDLINING.
AND SO I STILL HAVE I MEAN, THIS IS PROBABLY ALMOST A YEAR WHEN WE HAD THIS CONVERSATION ABOUT THE BANKS HERE IN THE CITY OF DALLAS AND THE RELATIONSHIP THAT WE HAVE.
NOW. WE KNOW THAT WE WANT DALLAS TO BE A PLACE WHERE PEOPLE CAN WORK, YOU KNOW, PLAY, INVEST.
AND WE OFTEN HEAR ABOUT THE CHURCHES WHO BRING THE MONEY COLLECTED ON SUNDAY, AND THEY BRING IT ON MONDAY TO THE BANKS, AND THEN THEY CAN'T GET A LOAN FROM THAT VERY BANK TO DO A PROJECT RELATIVE, FOR EXAMPLE, TO HOUSING.
AND SO I AM DEEPLY CONCERNED ABOUT THE PUSH BACK TO CONTINUE WHAT I FEEL IS PRETTY MUCH A PRACTICE OF THE SYSTEMIC PRACTICE OF ENHANCING AND PUTTING MORE MUSCLE TO THE RED LINE.
YOU'RE PUTTING MORE RED INK THERE SO IT BECOMES A DEEPER, DEEPER RED TO MAKE SURE WE UNDERSTAND THAT WE'RE GOING TO DO WHAT WE WANT TO DO WHEN WE WANT TO DO IT, AND NOT BE A PARTNER OF THE PROSPERITY THAT I THINK WE COULD REAP BENEFITS FROM IF WE HAD THEM.
IN TERMS OF GIVING BACK TO THE COMMUNITY THAT GIVES TO THEM.
SO I DID WANT TO PUT THAT CONVERSATION OUT THERE.
ONCE AGAIN, IT'S VERY IMPORTANT THAT WE GO BACK AND AS A AS A CITY TO HAVE THAT CONVERSATION.
[01:20:05]
AND PERHAPS AS WE TALKED ABOUT BRINGING THE INDUSTRY, WE NEED TO BRING THE INDUSTRY TO US SO THAT WE CAN HAVE A CONVERSATION ABOUT WHERE WE'RE TRYING TO GO AS A CITY.NOW, THE NEXT QUESTION I WANTED TO GET CLARIFICATION IN YOUR WITH YOUR, I GUESS, EXPERTISE, I BELIEVE I HEARD YOU SAY THAT THERE'S ALSO NOT A NOT A WILLINGNESS TO GET PHILANTHROPIC DOLLARS INTO THIS PROGRAM.
I MEAN, WHAT IS YOUR TAKE ON THAT? I MEAN, I UNDERSTAND IS THERE MONEY? SURE. YOU KNOW. I.
WE HAVE MET WITH THE MAJOR FOUNDATIONS AND, AND THEY JUST HAVE DECLINED AT THIS PARTICULAR TIME TO MAKE AN INVESTMENT REALLY NOT SPECIFIC TO THE FACT THAT THEY DON'T BELIEVE THAT THIS IS THE RIGHT THING.
I WOULD GUESS SOMETHING THAT'S MORE FLASHY, BECAUSE I TEND TO SEE MORE DOLLARS GOING TO THOSE PROJECTS, AS OPPOSED TO SOME OF THE BASICS OF THE QUALITY OF LIFE THAT WE'RE PUSHING FOR. AND WE KEEP TALKING ABOUT THE NEED FOR HOUSING.
NOW, I WILL SAY THIS ALSO FROM THE SOUTHERN SECTOR, SOME OF MY GROUPS WHERE THEY WANT TO HAVE MORE MARKET RATE HOMES AND NOT NECESSARILY THE AFFORDABLE WITH THE TAX CREDITS BECAUSE THEY WANT TO HAVE A DIFFERENT LEARNING LIVING EXPERIENCE.
AND I GET THAT. AND I KNOW WE'VE GOT TO CONTINUE TO PUSH IN THOSE HIGH OPPORTUNITY AREAS FOR SURE.
BUT I THINK OVERALL WE NEED TO LOOK AS A COUNCIL AT THE BEHAVIOR, THE PROFILES, THE WILLINGNESS OF INDIVIDUALS WHO COME TO US AND ASK US FOR HELP IN WHAT IN SOME OF THEIR ENDEAVORS.
BUT THEN WHEN WE ASK TO INVEST IN THE VERY PEOPLE WHO CARRY THE HEAVY LOAD OF PROPERTY TAXES AND THEY'RE STRUGGLING TO GET TO MAKE ENDS MEET AND AND WE'RE GLUING, WE'RE ROBBING FROM PETER TO PAY PAUL SO WE CAN BE A PART OF THIS CITY THAT KEEPS PROMISING, PROMISING THEM THAT WE ARE TRYING TO DO BETTER.
WE SAY THAT AS A CITY, BUT WE'RE NOT.
WE'RE THOSE PARTNERS WHO ARE STILL COMING TO US FOR FOR HELP.
THEY'RE NOT, THERE'S NO RECIPROCITY.
AND SO, I MEAN, I REMAIN CONCERNED.
SO WE'RE NOT SOUNDING LIKE A BROKEN RECORD.
WE NEED MORE HOUSING. WE KNOW, WE KNOW THAT.
BUT WHAT CAN WE DO BETTER TO GET THOSE PHILANTHROPIC DOLLARS TO BE INTERESTED IN THE QUALITY OF LIFE AND EQUITY IN THE CITY AS WE PREACH. SO THAT'S MY CONCERN.
I WISH I HAD THE ABILITY TO TO WRITE A CHECK MYSELF.
BUT BUT THAT'S VERY TROUBLING.
SO WE GET A DIFFERENT, I GUESS, A DIFFERENT RESPONSE TO HOW THEY CAN HELP US BECOME A STRONGER CITY.
THANK YOU. THANK YOU, DEPUTY CHAIRMAN BAZALDUA.
THANK YOU ALL FOR THE PRESENTATION AND FOR ALL YOUR PARTNERSHIP IN DISTRICT SEVEN SPECIFICALLY.
BUT ACROSS OUR CITY, I JUST WANT TO KIND OF HIGHLIGHT A FEW THINGS.
THERE WAS THERE WAS AN EDITORIAL ARTICLE THAT CAME OUT TODAY IN THE DALLAS MORNING NEWS THAT I THINK WAS MISLEADING TO THE PUBLIC AND INSINUATED ESSENTIALLY THAT IT WOULD BE A WASTE OF OUR DOLLARS AT A TIME LIKE THIS IN A BOND PACKAGE FOR HOUSING AND BASICALLY EVERYTHING THAT WE'VE HEARD FROM YOU ALL.
I THINK THAT, OF COURSE, THIS IS SET UP TO REACH SOME AMBITIOUS GOALS.
RIGHT. IS IT SAFE TO SAY THAT YOU DON'T THINK THAT THESE GOALS WOULD BE ACCOMPLISHABLE WITHOUT THIS MECHANISM? THEY WOULD NOT BE. THEY WOULD NOT BE.
AND KNOWING THAT AND WHERE THE MARKET HAS DICTATED US AND THE STRUGGLE THAT WE'RE HAVING WITH FINANCIAL INSTITUTES, IN ADDITION TO JUST AS DEPUTY MAYOR PRO TEM MENTIONED, THAT IT'S NOT NECESSARILY THE SEXY PLACE TO WRITE A CHECK IN THE PHILANTHROPY WORLD, WOULD YOU SAY THAT IT IS IT'S IMPERATIVE AT THIS TIMING FOR US TO BE WILLING TO INVEST IN HOUSING, SPECIFICALLY WITH WHEN WE'RE LOOKING AT THE DEBT IN OUR CITY? THE BIGGEST INVESTMENT WE CAN MAKE IN THE FUTURE OF THIS CITY IS MORE HOUSING.
WE CAN'T GROW OUR ECONOMY UNLESS WE HAVE A PLACE FOR PEOPLE TO LIVE.
AND SO A LOT OF PEOPLE HAVE HEARD ME SAY THIS OVER AND OVER AND OVER.
[01:25:02]
THE BIGGEST THING YOU CAN, YOU CAN DO TWO THINGS FOR A FAMILY.AND SO OUR INVESTMENT IN MORE HOUSING IS CRITICAL TO THE FUTURE OF THIS CITY.
THANK YOU FOR THAT I DO YOU MIND ALSO JUST TOUCHING BECAUSE OF THESE DIFFERENT VARIABLES THAT HAVE BEEN BROUGHT UP TODAY, IT ALMOST SEEMS THAT OUR BACKS ARE SOMEWHAT AGAINST THE ROPE WHEN IT COMES TO OUR OPTIONS.
AND WHEN IT'S FRAMED IN THE DALLAS MORNING NEWS TO THE PUBLIC THAT IT WOULD BE NOT THE BEST USE OF OUR DEBT BECAUSE OF PAYING INTEREST FOR INSTANCE, CAN YOU JUST GIVE ME A LITTLE BIT OF YOUR EXPERTISE OPINION TO THAT POINT SPECIFICALLY? BECAUSE FROM WHAT I'VE GATHERED IS THAT IF WE DON'T HAVE ANY OTHER OPTIONS, THAT IT'S GOING TO END UP COSTING US A LOT MORE THAN THE SMALL AMOUNT OF INTEREST THAT IT WOULD TAKE TO REACH SUCH OPTIMISTIC GOALS THAT THIS TOOL WOULD BRING.
WELL, I DID NOT READ THE OP ED YET, SO SORRY I CAN'T ANSWER TO THAT SPECIFIC.
BUT YOU KNOW, JUST TO COMPARE OURSELVES TO AUSTIN, THE CITY OF AUSTIN HAS ISSUED OVER $1 BILLION WORTH OF BONDS, WHICH HAS REALLY BEEN SIGNIFICANT IN THE HISTORY OF THEIR CITY.
AND I WAS INVOLVED IN THE FIRST BOND ELECTION WHEN THEY WENT FOR 25 AND $50 MILLION.
OF COURSE, THAT CITY HAS GOT A LOT OF OTHER ISSUES, AND I THINK WE HAVE A GREAT OPPORTUNITY.
THE BONDS ARE A GREAT WAY FOR US TO BE ABLE TO FINANCE THE NECESSARY HOUSING THAT HAS TO OCCUR AT EVERY LEVEL, AND I THINK THAT'S THE MOST IMPORTANT THING THAT PEOPLE NEED TO UNDERSTAND.
AND THEY'RE NOT LIVING IN THE CITY OF DALLAS BECAUSE THEY CAN'T AFFORD IT.
AND SO WE'VE GOT A LOT OF OPPORTUNITIES TO INVEST.
INFRASTRUCTURE IS VERY CRITICAL AS WELL AS HOUSING INVESTMENT.
AND HAVING EVERY TOOL OP AS AN OPPORTUNITY IS THE MOST IMPORTANT THING THAT WE CAN BE DOING AS A CITY IS TRYING TO FIGURE OUT WAYS TO SOLVE FOR THE PROBLEM THAT THERE'S NOT ENOUGH MONEY IN, YOU KNOW, THERE'S A LOT OF PEOPLE THAT ARE BUILDING VERY HIGH END HOMES, BUT THERE'S NOT ENOUGH MONEY THAT'S REALLY HELPING SUBSIDIZE WORKING PEOPLE.
THANK YOU. AND I'M REALLY GLAD YOU JUST BROUGHT UP AUSTIN'S BOND PROPOSITION.
I MEAN, IT'S BEEN SUCH SO, SO SUCCESSFUL.
AND YOU JUST CITED $1 BILLION NUMBER.
AND IT'S BROUGHT IN A LOT OF FEDERAL DOLLARS THAT WOULD THEN THAT WOULD NOT HAVE BEEN THEY WOULD NOT HAVE BEEN AFFORDED HAD THEY NOT MADE THAT BIG INVESTMENT IN THEIR BOND PACKAGE.
IS THAT ACCURATE? THAT BILLION DOLLARS WAS OVER A PERIOD OF TIME.
OKAY. NO, I JUST WANT TO MAKE SURE THAT BECAUSE I THINK THAT WE'RE SHOOTING FOR A VERY LOW END.
SO THANK YOU SO MUCH FOR THIS.
THANK YOU. MR.. OMAR, I THINK YOU GOT A QUESTION.
THEN WE GOT TWO MORE ITEMS. WE GOT TO GET OUT. ONE QUESTION THAT CAME FROM A STAKEHOLDER, IT'S HOW HAS THE PROCESS BEEN WITH GETTING THE MONEY OUT THE DOOR IN REAL ESTATE . TIME IS MONEY AND DELAYS COULD EASILY KILL THE DEAL.
WHAT HAS THE PROCESS BEEN IN PAPERING THE DEALS AND GETTING THE THROUGH FUNDS OUT THE DOOR? YEAH, I THINK I GET WHAT THEY'RE ASKING THERE.
SO HOW EASY IT'S BEEN TO GET MONEY OUT.
AND WHAT IS THE TIMELINE? I GUESS IT'S A SIMPLER QUESTION.
WE'RE READY TO GO. IT'S REALLY THE DEAL THAT'S USUALLY NOT READY TO GO.
ONCE THE DEAL COMES IN. WE CAN CLOSE WITHIN 90 DAYS.
THAT WAS MY ONLY QUESTION THAT I HAD LEFT.
AND I'M SURE OUR STAKEHOLDER APPRECIATES YOU ANSWERING IT.
THANK YOU, MR. CHAIR, AND THANK YOU ALL, YOU KNOW, FOR THE COMMENT ON ON HOUSING AND APPROVING IT.
[01:30:01]
I KNOW THAT WE AT THE CITY, YOU KNOW, WITH ALL THE BANKS HERE, YOU KNOW, WE ALL HAVE A VERY, VERY DIFFICULT REMEMBER, RIGHT NOW WE DO HAVE A CONTRACT COMING UP WITH OUR BANK, YOU KNOW, BANK OF AMERICA.SO YOU LOOK AT THAT, WHAT THEY'RE DOING.
SO, YOU KNOW, IT'S A WHOLE LOT OF BIG BOYS IN THE IN THE POOL RIGHT NOW.
SO THAT OPPORTUNITY TO TALK TO THEM BECAUSE WE DID HAVE A RESOLUTION ABOUT THOSE BANKS.
BUT WHY CAN'T THEY CONTRIBUTE MORE TO THE CITY OF DALLAS.
WE GOT NUMEROUS SHOVEL READY PROJECTS.
CHAIRMAN WEST. SO IF YOU'RE NOT AWARE OF GET WITH [INAUDIBLE].
WE HAVE SOME READY TO BE SHOVELED AND WITH THE BONDS.
SO THEY'RE JUST NOT THE ONLY THING.
BUT THANK YOU FOR THE OPPORTUNITY FOR Y'ALL TO PRESENT THAT BECAUSE THIS IS A PROJECT.
WE NEED TO MAKE SURE WE FUND THIS PROJECT.
SO YOU'LL MOVE TO ANOTHER PROJECT TO GET DONE.
OKAY. WITH THAT NEXT ITEM WOULD BE FORWARD.
MS. CHILDS. I THINK SHE'S GOING TO DO IT.
OKAY. THANK YOU CHAIR AND COMMITTEE MEMBERS.
ANDREA GILLIS WITH PLANNING AND URBAN DESIGN.
CURRENTLY THE INTERIM DIRECTOR.
I JUST WANTED TO PROVIDE A BRIEF UPDATE ON FORWARD DALLAS JUST WE'RE IN A VERY CRUX OF A MOMENT OF THE REVIEW PROCESS, SO I WANTED TO GIVE YOU A HEADS UP ON THAT, MAINLY DISCUSSING THIS MORNING OR THIS AFTERNOON JUST ABOUT PROCESS AND WHERE WE'RE AT IN THE PROCESS AND WHEN YOU CAN POTENTIALLY ANTICIPATE THIS PLAN GOING FORWARD TO YOU, NEXT SLIDE PLEASE.
YOU CAN GO TO THE NEXT SLIDE PLEASE.
SO HERE'S WHERE WE'RE AT IN THE PROCESS.
AS MANY OF YOU ARE WELL AWARE, WE HAVE HAD A LOT OF PROCESS SO FAR ABOUT TWO AND A HALF YEARS.
I WILL SAY THAT LARGELY IT WAS VERY IMPORTANT TO HAVE THIS AMOUNT OF PROCESS TO DATE, BECAUSE WE REALLY NEEDED TO GET THE COMMUNITY UP TO SPEED.
I THINK WE HAVE A LOT OF THAT.
THERE ARE STILL DISCUSSIONS TO BE HAD NOW THAT A PLAN, A DRAFT PLAN IS OUT.
THAT'S WHEN YOU START TO SEE THOSE DETAILS AND WHAT WE REALLY MEAN BY CERTAIN THINGS.
WE'VE HAD A VISION PLAN FROM 2006, BUT WE HAVEN'T HAD A LAND USE PLAN THAT GUIDES ZONING DECISIONS AND OTHER DECISIONS WITHIN THE CITY, AND IT WAS REALLY IMPORTANT TO MAKE THAT DISTINCTION AND TO MAKE SURE THAT WE HAD A LOT OF COMMUNITY CONVERSATIONS ABOUT WHAT A LAND USE PLAN MEANT, WHAT IT COULD DO, AND REALLY SOMETIMES, EVEN MORE IMPORTANTLY, WHAT IT CANNOT DO.
IT DOESN'T SOLVE EVERYTHING OVERNIGHT.
AND THAT'S A BIG ISSUE AS WELL, BECAUSE THERE ARE A LOT OF ISSUES THAT WE HAVE IN THE CITY FROM ZONING AND DEVELOPMENT RELATED, THAT PEOPLE WANT TO SEE THINGS HAPPEN SOONER THAN LATER. SO THERE WAS A LOT OF THAT DIALOG AS WELL.
SO WE'VE HAD A LOT OF, AS I SAID, COMMUNITY ENGAGEMENT, A LOT OF MEETING OUT IN THE COMMUNITY, A LOT OF ONE ON ONES WITH CPC COMMISSIONERS, WITH COUNCIL MEMBERS.
SO WHERE WE'RE AT RIGHT NOW IS A COMMITTEE OF THE CPC HAS BEEN SET UP.
IT'S THE COMPREHENSIVE LAND USE PLAN COMMITTEE.
THEY HAVE BEEN MEETING FOR OVER A YEAR, DEDICATING ACTUALLY CLOSE TO A YEAR AND A HALF, MAYBE A LITTLE BIT MORE OF TIME IN THE DEVELOPMENT OF THE PLAN, GETTING TO THE POINT TO BE ABLE TO REVIEW A DOCUMENT.
THERE WAS A DOCUMENT THAT WAS PUBLISHED IN SEPTEMBER, A FIRST DRAFT.
AND SINCE THAT TIME, THE COMPREHENSIVE LAND USE PLAN COMMITTEE HAS BEEN MEETING EVERY OTHER WEEK, EVERY OTHER TUESDAY, TO REALLY COMB THROUGH THAT DOCUMENT. SO WE HAVE NOT ONLY THE PLAN, THE MAP, WE ALSO HAVE THE DOCUMENT WITH THE RECOMMENDATIONS, WITH THE FUTURE LAND USE RECOMMENDATIONS, AS WELL AS THE IMPLEMENTATION RECOMMENDATIONS.
NEXT SLIDE PLEASE. SO AS I MENTIONED, A LOT OF COMMUNITY ENGAGEMENT.
THIS IS WHAT LED US TO GET OUR KEY THEMES WITHIN THIS PLAN ARE DRIVING PRINCIPLES THROUGH THIS PLAN.
I WILL JUST POINT OUT WE HAVE HAD, YOU KNOW, 200 PLUS IN-PERSON EVENTS AND YOU CAN SEE ALL THE INTERACTIVE, YOU KNOW WHAT? WHAT'S REALLY BEEN SUCCESSFUL IN A LOT OF WAYS IS WE ALSO SET UP A VIRTUAL ENVIRONMENT FOR PEOPLE TO CHECK OUT.
[01:35:05]
A LOT OF PEOPLE CAN'T MAKE MEETINGS.SO WE RECEIVED A LOT OF INPUT THERE TOO AS WELL.
SO OUT OF THAT, THESE HAVE BEEN OUR DRIVING PRINCIPLES STEMMING FROM A LOT OF COMMUNITY INPUT.
WHAT ARE WE GOING TO DO ABOUT THESE ISSUES THAT WE HAVE IN SOME OF OUR COMMUNITIES? HOUSING ACCESSIBILITY.
THERE WAS A LOT OF CONVERSATION ABOUT THAT JUST A FEW MINUTES AGO.
WHAT DOES THAT LOOK LIKE FROM A LAND USE PERSPECTIVE? ECONOMIC DEVELOPMENT AND REVITALIZATION.
HOW DO WE BETTER UTILIZE OUR TRANSIT CORRIDORS AND THE DART STATIONS, AND HOW DO WE BETTER UTILIZE THEM FROM A LAND USE PERSPECTIVE AND HAVE THEM WORK SMARTER FOR US AND FOR PEOPLE WHO WANT TO LIVE AND WORK IN THOSE AREAS? AND THEN URBAN DESIGN.
WE'VE REALLY TRIED TO INFUSE THE PLAN, THE DRAFT PLAN AND THE LAND USE RECOMMENDATIONS WITH A LOT OF URBAN DESIGN RECOMMENDATIONS TO REALLY BE SPECIFIC ABOUT WHEN WE SAY X TYPE OF DEVELOPMENT, WHAT DOES THAT MEAN? AND PROVIDE ENOUGH FLEXIBILITY IN THAT, BUT ALSO PROVIDE ENOUGH GUIDANCE SO THAT WE'RE STARTING TO GET QUALITY, MORE QUALITY DEVELOPMENT AND QUALITY DESIGN WITHOUT ALL OF THIS BACK AND FORTH AND BACK AND FORTH AT DIFFERENT COMMITTEE MEETINGS.
NEXT SLIDE PLEASE. SO WE'VE GOT MULTIPLE COMPONENTS TO THE PLAN AS I MENTIONED.
SO THE THEMES THE PLACE TYPE DESCRIPTIONS.
THAT IS A FUTURE LAND USE CONCEPT.
SO IT'S JUST THAT I'LL SHOW YOU THIS IN THE NEXT SCREEN.
AND THEN WE ALSO HAVE AN IMPLEMENTATION PLAN.
AND WE HAVE TRIED TO MAKE THAT IMPLEMENTATION PLAN PRETTY STREAMLINED.
SO WE DON'T HAVE A 200 PAGE DOCUMENT WHERE YOU JUST FEEL OVERWHELMED AT THE END OF IT.
LIKE, HOW ARE WE EVER GOING TO WHERE DO YOU EVEN START? SO WE'VE TRIED TO MAKE IT AND VET IT WITH THE DIFFERENT DEPARTMENTS, DIFFERENT AGENCIES.
WE'VE ALSO WE HAVE A TECHNICAL REVIEW COMMITTEE THAT'S BEEN REVIEWING THIS DOCUMENT AS WELL.
SO REALLY TRY TO MAKE THESE ACTIONABLE ITEMS. NEXT SLIDE PLEASE. AND SO OUR PLACE TYPES, IT'S REALLY ALONG THE SAME LINES AS FUTURE LAND USE CONCEPTS.
BUT WHEN YOU'RE DOING A CITYWIDE LAND USE PLAN, WE CAN'T GO PROPERTY BY PROPERTY.
SO WE'RE DEFINING WHAT ARE CERTAIN PLACES WITHIN THE CITY AND WHAT DO THOSE WHAT ARE THOSE PLACES FEEL? WHAT ARE THE INTENSITY OF THOSE PLACES? WHAT IS THE MIX OF LAND USES WITHIN THAT AREA, AND WHAT ARE THE INTENSITIES THERE? SO IT IS MORE ABOUT DEFINING CERTAIN PLACES, HOW THEY FEEL AND HOW THE DIFFERENT USES WORK TOGETHER.
AND SO OUT OF THAT, WE'VE DEVELOPED THE PLACE TYPE MAP.
I WILL SAY I HAVE A COUPLE OF THE PLACE TYPES AND BOXES RIGHT NOW, AND I WANTED TO POINT THAT OUT.
SO THIS IS THAT WE DO HAVE AN UPDATED DRAFT.
THE MOST RECENT THE WE ACTUALLY JUST PUBLISHED IT, THE UPDATED MAP, BUT THIS WAS FROM AUGUST 31ST.
SO ON THAT, WE'VE ALSO UPDATED SOME OF THE THE PLACE TYPES, THE FUTURE LAND USE PLACE TYPES, THROUGH A LOT OF DISCUSSION WITH THE COMPREHENSIVE LAND USE PLAN COMMITTEE, AND SORT OF TWO OF THE GROUPINGS THAT I WANT TO POINT EVERYONE OUT TO AND COMMITTEE MEMBERS AND ANYONE WHO MAY BE LISTENING TO THIS, BECAUSE WE WILL WE HAVE AN UPDATED WE HAVE A MEETING COMING UP WITH THE COMPREHENSIVE LAND USE PLAN COMMITTEE ON TUESDAY.
THERE HAS BEEN A LOT OF DISCUSSION AROUND OUR RESIDENTIAL AREAS AND HOW WE ARE ADDRESSING HOUSING OPTIONS WITHIN OUR RESIDENTIAL AREAS, SPECIFICALLY OUR LOWER INTENSITY RESIDENTIAL AREAS.
SO WE TALK ABOUT DIFFERENT CONCEPTS.
AND REALLY A LOT OF THE DISCUSSION IS ABOUT EQUITY.
WHY SHOULD ONE AREA HAVE TO ACCOMMODATE MORE HOUSING THAN ANOTHER AREA? AND THESE PREDOMINANTLY ARE AREAS THAT ARE SINGLE FAMILY RESIDENTIAL.
[01:40:04]
WHEREAS AFTER 1950 OR 1960 IT WAS A DIFFERENT KIND OF SUBDIVISION.WE HAD DIFFERENT ZONING RULES.
SO HOW DO WE TREAT THOSE TWO DIFFERENT KINDS OF NEIGHBORHOODS TO MAKE SURE THAT WE'RE LOOKING AT IT EQUITABLY AND THAT WE'RE FIGURING OUT HOW TO FAIRLY ACCOMMODATE HOUSING THROUGHOUT THE CITY.
SO WE'RE STILL WORKING ON THAT.
THE COMPREHENSIVE LAND USE PLAN COMMITTEE HAS SOME RECOMMENDATIONS.
THEY ARE LOOKING AT CONSOLIDATING SOME OF THE RECOMMENDATIONS FOR OUR LOWER DENSITY RESIDENTIAL AREAS, BUT TALKING VERY MUCH ABOUT CONTEXT SENSITIVITY AND HOW WE ARE STRENGTHENING OUR NEIGHBORHOODS.
AND THEN WE'VE HAD A TON OF DISCUSSION ABOUT OUR INDUSTRIAL PLACE TYPES AND OUR INDUSTRIAL LAND USES, AND HOW WE, FROM AN ENVIRONMENTAL JUSTICE PERSPECTIVE, ADDRESS ADJACENCY ISSUES, HOW WE ADDRESS TRANSITIONING AREAS, HOW WE DEFINE AREAS THAT PROBABLY ARE GOING TO STAY INDUSTRIAL, AND THEN HOW DO WE MAKE SURE THAT WE ARE ADDRESSING THE SURROUNDING AREAS.
SO THERE'S ACTUALLY ANOTHER PLACE TYPE THAT IS MOST LIKELY GOING TO BE INSERTED IN HERE, THE LOGISTICS HUB, TO SORT OF ADDRESS THE BIG LARGE SCALE WAREHOUSES THAT YOU ALL KNOW WE TALK A LOT ABOUT.
AND THEN THE FLEX COMMERCIAL, WHICH ACTUALLY STARTED OUT TO BE THE TRANSITION AREA, IS NOW STARTING TO THINK ABOUT, IT'S NOT EVERY CIRCUMSTANCE, THERE'S NOT EVERY INDUSTRIAL USE IS AN INCOMPATIBLE LAND USE WITH SOMETHING YOU CAN COEXIST WITH SMALLER SCALE INTERNALIZED INDUSTRIAL USES.
SO HOW DO WE THINK ABOUT THAT AND WHERE IS THAT GET ACCOMMODATED WITHIN THE CITY? NEXT SLIDE PLEASE.
SO WHAT'S NEXT? WE ARE LOOKING AT BY THE END OF THIS WEEK TO HAVE AN UPDATED DRAFT OF THE PLAN THAT INCORPORATES ALL OF THE COMPREHENSIVE LAND USE PLAN COMMITTEES RECOMMENDATIONS, COMMENTS THAT WE RECEIVED OVER THE PAST, WELL, SINCE SEPTEMBER SINCE THE FIRST DRAFT WAS PUBLISHED.
SO WE RECEIVED MORE INPUT THERE.
SO ACCOMMODATING ALL OF THAT INFORMATION ON DECEMBER 12TH COULD BE WE'LL CROSS OUR FINGERS.
BUT YOU KNOW, IF IT'S NOT, IT'S NOT.
IT COULD BE THE LAST COMPREHENSIVE LAND USE PLAN COMMITTEE.
WHAT WE WOULD LIKE TO SEE IS THAT IDEALLY AT THE END OF MAY, THAT THERE IS A CPC RECOMMENDATION TO CITY COUNCIL AND THAT CITY COUNCIL REVIEW AND PUBLIC HEARINGS COULD BEGIN IN JUNE AT THE LATEST AND IDEALLY BEFORE YOUR RECESS.
AND WITH THAT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS.
ANYONE HAVING A QUESTION ON THE COMMITTEE? NO. CAN YOU BE BRIEF? BECAUSE WE GOT ONE MORE, TWO MORE WE GOT TO DO.
GO AHEAD. I CAN DEFINITELY BE BRIEF.
CHAIR, THANK YOU FOR YOUR WORK ON THIS.
I IT'S BEEN A LONG TIME COMING.
IF WE COULD HAVE CLEAR GUIDANCE ON HOW WE'RE GOING TO ACCOMPLISH SOME OF THESE GOALS.
I ALSO WOULD LIKE TO KNOW IF YOU COULD HAVE IT COUPLED WITH SOME TYPE OF BRIEFING FOR WHAT THIS IS GOING TO DO FOR NON-COMPLIANT PROPERTIES ONCE EVERYTHING IS PASSED.
WHAT WHAT ARE WE DOING TO WORK FOR, WITH WITH OTHER DEPARTMENTS TO HAVE TOOLS TO LIGHTEN THE BURDEN ON SOME THAT MAY HAVE TO FIND A NEW HOME IF YOU WILL.
NOT NECESSARILY HOMES, BUT THE INDUSTRIAL BUSINESSES SPECIFICALLY.
[01:45:05]
SUPPORTIVE AND THAT WE HAVE TO, YOU KNOW, WORK TOGETHER MOVING FORWARD LIKE WE HAVE ALREADY IN JOPPA.SO IF THAT'S ALL THAT MY REQUEST IS, I KNOW YOU KNOW THAT MY FOCUS AREAS AND THANK YOU FOR ALL OF YOUR WORK AND YOUR COUNTLESS OUTREACH, ALL OF THOSE MEETINGS HAVE REALLY HELPED US GET TO THIS POINT.
THANK YOU. REALLY FANTASTIC JOB, ANDREA, ON THE OUTREACH AND ON KEEPING US UPDATED.
SO AS YOU KNOW, THE THERE'S BEEN A MEMO FILED BY SEVERAL OF US ON STAFF LOOKING AT MINIMUM LOT SIZE REFORM, WHICH WE WE'RE NOT WE'RE NOT WE'RE NOT GOING TO TALK WHAT WE'RE GOING TO DO.
IF YOU READ THAT, WE'RE GOING TO MOVE IT TO HOUSING.
SO THEREFORE I DON'T WANT TO PREEMPT THAT HOUSING DEAL I IRRELEVANT I KNOW I'M TRYING TO KEEP IT GENERIC BECAUSE IT'S ON THE AGENDA. IT'S GOING TO BE DEFERRED TO HOUSING ON DECEMBER 8TH.
I UNDERSTAND THAT I'M NOT GETTING INTO THE DETAILS.
OKAY. OKAY. I'M TRYING TO MAKE SURE, STAY ON TOPIC.
WOULD IT BE HELPFUL FOR YOU AND YOUR STAFF FOR US TO HAVE A DISCUSSION OF THAT BEFORE FORWARD DALLAS IS FINALLY PASSED AND FOR THAT TO BE OPENED UP, OR IS THAT IS THAT DISCUSSION SOMETHING THAT SHOULD WAIT UNTIL AFTER FORWARD DALLAS IS FULLY PASSED AND ENACTED? I THINK THE DISCUSSION CAN BE HELPFUL.
HAVING A DISCUSSION, HAVING A CONVERSATION.
I DON'T THINK THAT THERE WILL BE ANYTHING THAT WOULD BE PASSED OR BE PREPARED BEFORE FORWARD DALLAS GETS ADOPTED, BUT I THINK THE CONVERSATION IS HELPFUL, AND IT DOVETAILS NICELY INTO SOME OF THE CONVERSATIONS THAT WE'VE BEEN HAVING ABOUT RESIDENTIAL USES.
OKAY, SO OPENING IT UP IS NOT GOING TO CONFLICT WITH YOUR WORK? NO. THANK YOU. I'M GOING TO CUT YOU OFF, CHAIRMAN.
I KNOW, I KNOW, BUT LET ME CLARIFY.
WE WAS GOING TO HAVE THIS DISCUSSION WITH THE 2 TO 4 UNIT HOUSING AND MENTAL RESIDENTS TODAY.
SO THE DAY DEADLINE WOULD BE NOVEMBER 8TH WHEN THE MEMO CAME.
SO FORWARD DALLAS HAS NOT BEEN COMPLETED.
SO FORWARD DALLAS HAD TO BE COMPLETED BEFORE THIS WOULD BE IMPLEMENTED IN A POLICY.
SO JUST GETTING AHEAD OF FORWARD DALLAS AND GETTING AHEAD OF ZOAC.
SO PROCESS WISE THIS IS REALLY PREMATURE TO GET AHEAD OF THAT.
AND THE FORWARD DALLAS, FORWARD DALLAS IS NOT COMPLETED.
FORWARD DALLAS TO BE COMPLETED FIRST, THEN IT GOES TO ZOAC.
YOU WANT TO CLARIFY THAT I SEE YOU GOT YOUR LIGHT ON.
NO I'D LIKE TO CLARIFY THAT THAT THE MEMO JUST ASKS FOR THE DISCUSSION TO BE OPEN.
IT WASN'T ASKING FOR A POLICY TO BE PASSED AT ANY POINT LIKE NEXT WEEK OR NEXT.
THE WORD AFFORDABLE HOUSING WAS IN THERE, AND IT CONFUSED A WHOLE LOT OF PEOPLE.
AND WE GOT A WHOLE LOT OF CALLS ABOUT THE TV SCRIPT ON THERE.
AFFORDABLE HOUSING IS NOT AFFORDABLE HOUSING, SO PEOPLE ASK A WHOLE LOT OF QUESTIONS.
SO WE WANT TO GET IT CORRECTED.
SO THAT'S WHY THE MEMO CAME UP AND THAT'S WHY WE SENT THE HOUSING IS NOT AFFORDABLE HOUSING WITH THE TWO FOUR UNIT HOUSING IS NOT AFFORDABLE HOUSING. IT'S A MISUNDERSTANDING.
YOU KNOW, WE'RE JUST TRYING TO CLARIFY.
AND MY MAIN THING HERE IS ECONOMIC DEVELOPMENT.
SINCE IT WAS A ZONING DEAL, YOU KNOW, A COLD CHAIN A COMPANY CANNOT DEVELOP.
IT NEEDS TO GO BACK TO THE COMMUNITY AND HOLD US UP.
IN A WAY, WE'RE SAYING THE SAME THING.
YEAH, YOU'RE SAYING THE SAME THING.
BUT BUT THE PRESS PLAYED IT ANOTHER WAY.
GO AHEAD. I JUST WANTED TO SAY, I DO THINK THAT IT'S IMPORTANT FOR US TO HAVE THE DISCUSSIONS.
MR. CHAIR, BUT I KNOW I'M TRYING TO COUNT A LITTLE SINCE CHAD WENT A LITTLE LEEWAY.
SO, MY DEAR, LET EVERYBODY TALK.
WHAT I'M SAYING IS PERTAINING TO SOMETHING ON THIS AGENDA.
SO THERE'S NO POINT OF ORDER. I'M SAYING THIS, BUT THANK YOU.
FORWARD DALLAS IS NOT COMPLETED.
WE'VE BEEN WORKING ON FORWARD DALLAS FOR 20 YEARS, 20 YEARS, AND IT'S STILL NOT COMPLETED.
[01:50:04]
OKAY WITH THAT? WELL, WE ALREADY DID THIS MEMO.SO THE NEXT ITEM IS A BRIEFING, I BELIEVE REGARDING NEW MARKET TAX CREDIT.
GOOD AFTERNOON, COMMITTEE MEMBERS.
WE'RE HERE TO ANSWER QUESTIONS IF YOU HAVE ANY.
ANYONE HAVE NO QUESTIONS ON THE PARK YMCA? CHAIRMAN BALZADUA, IT'S IN YOUR DISTRICT.
I DON'T HAVE ANY QUESTIONS, BUT I'M REALLY EXCITED ABOUT THIS PROJECT.
ANYONE ELSE HAVE ANY QUESTION? YOU DID A GREAT PRESENTATION, ROBIN.
AND I WILL ADJOURN THE ECONOMIC DEVELOPMENT COMMITTEE.
THANK YOU. THANK YOU, MR. CHAIR.
* This transcript was compiled from uncorrected Closed Captioning.