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[00:00:01]

IT IS NOW 1:04.

[Economic Development on December 2, 2024.]

I'LL CALL THE ECONOMIC DEVELOPMENT COMMITTEE TO ORDER AND FIRST APPROVAL MINUTE.

BUT BEFORE WE DO THAT WE GOT A TYPE ERROR.

IT SHOULD BE APPROVED ON THE NOVEMBER 4TH, 2024 MINUTES.

MOVE. APPROVAL. SECOND.

ALL IN FAVOR? AYE, AYE.

ANY OPPOSED? AYES CARRIED.

NEXT ITEM.

FIRST ITEM ON THE AGENDA TODAY AFTER THANKSGIVING.

AND CHAD WEST IS IN THE HURRY BECAUSE THE SUN IS SHINING AND HE WANT TO GET BACK TO HIS JOB.

I DON'T BLAME YOU, CHAD.

THANK YOU, CHAD.

WASHING CARS. WASHING CARS.

I WASH MINE THIS MORNING CHAD.

I WASH MINE YESTERDAY, SIR.

OKAY. BRIEF ITEM A.

WHO'S DOING A BRIEFING ON ITEM A.

WE ARE SIR. WHO IS WE ARE? WHO IS WE ARE? I'M KEVIN SPATH, INTERIM DIRECTOR OF THE OFFICE OF ECONOMIC DEVELOPMENT.

TO MY RIGHT IS TAMARA LEAKE, INTERIM ASSISTANT DIRECTOR OF ECONOMIC DEVELOPMENT, AND DORSEY CLARK, SENIOR MANAGER AND MANAGER OF THE CITY CENTER TIF DISTRICT.

SO WE ARE COLLECTIVELY PROVIDING YOU WITH THIS BRIEFING TODAY.

BEFORE. SHALL WE BEGIN? OKAY. SORRY.

BEFORE WE DIVE INTO THE DETAILS OF THIS BRIEFING, I DID WANT TO PROVIDE A QUICK BACKGROUND ON HOW WE GOT TO THIS POINT.

THIS IS A PROJECT THAT THE COUNCIL HAS SEEN PREVIOUSLY FOR A RESOLUTION OF SUPPORT FOR LOW INCOME HOUSING TAX CREDIT EARLIER IN 2024. WE'VE BEEN WORKING WITH THIS DEVELOPER EVEN BEFORE THAT TIME.

SO ALMOST A YEAR ON THIS PROJECT TO GET TO THIS POINT.

THIS IS A PROPOSED MIXED USE, MIXED INCOME AND TRANSIT ORIENTED DEVELOPMENT THAT'S IN AND ADJACENT TO THE CITY CENTER TIF DISTRICT, RIGHT NEAR THE WEST END DART LIGHT RAIL STATION.

IT'S GOT A NUMBER OF PUBLIC BENEFITS, SOME OF WHICH INCLUDE THE REHABILITATION OF TWO MOSTLY HISTORIC OR MOSTLY VACANT HISTORIC BUILDINGS, THE DEVELOPMENT OF TWO SURFACE PARKING LOTS, DEEPER AND MORE AFFORDABILITY ON THE RESIDENTIAL SIDE THAN THE MINIMUM REQUIREMENT OF THE TIF DISTRICT PROGRAM.

THIS IS A HIGH OPPORTUNITY AREA.

ONE OF THE PARCELS IS CURRENTLY NOT TAXABLE AND WITH THIS PROJECT WILL BECOME TAXABLE.

THIS PROJECT ALSO WILL ACTIVATE GROUND FLOOR SPACE.

IT WILL BE A TRANSIT ORIENTED DEVELOPMENT.

IT HAS IMMEDIATE PROXIMITY TO THE EL CENTRO CAMPUS OF DALLAS COLLEGE.

IT WILL PROVIDE MUCH NEEDED EYES ON THE STREET TO HELP MITIGATE AGAINST THE BAD THINGS THAT TEND TO HAPPEN AROUND THE LIGHT RAIL STATION.

MORE RESIDENTS, MORE USERS WILL HELP DRIVE MORE DEMAND FOR RETAIL AND SERVICES IN THE WEST END HISTORIC DISTRICT.

IT WILL PROVIDE MORE THAN THE MINIMUM OF A GOOD FAITH EFFORT FOR MINORITY AND WOMEN OWNED PARTICIPATION IN CONSTRUCTION AT 40% GOAL. AND IT WILL HELP TO IMPLEMENT THE CITY CENTER TIF DISTRICT PROJECT PLAN AND THE DOWNTOWN 360 PLAN.

I WOULD MENTION THAT THE CITY CENTER TIF DISTRICT BOARD OF DIRECTORS DID REVIEW AND UNANIMOUSLY RECOMMEND APPROVAL OF THE TIF SUBSIDY PORTION OF THIS THIS DEAL. THEY DID ADD A CONDITION THAT WE'LL MENTION HERE IN A MINUTE.

SO WITHOUT FURTHER ADO, I'LL TURN IT OVER TO MISS LEE.

THANK YOU. GOOD AFTERNOON, COMMITTEE MEMBERS.

WE'RE GOING TO GO THROUGH THE BRIEFING, AND WE'LL START ON PAGE TWO WITH AN OVERVIEW OF YOUR BRIEFING.

THROUGHOUT THIS BRIEFING, WE'RE GOING TO PROVIDE A BACKGROUND ON THE TIF DISTRICT THAT THE PROPOSED PROJECT IS LOCATED IN.

WE'LL GIVE YOU SOME PROJECT INFORMATION STAFF'S RECOMMENDATION FOR A SUBSIDY FOR THE PROJECT.

AS KEVIN PREVIOUSLY MENTIONED, THE TIF BOARD'S ACTION FROM THEIR REVIEW OF THE PROJECT AND NEXT STEPS, AND THEN WE HAVE OUR APPENDICES.

SO ON THE NEXT PAGE IS THE BACKGROUND OF THE CITY CENTER TIF DISTRICT.

IT WAS ORIGINALLY CREATED IN 1996 TO BE A LONG TERM TOOL TO SUPPORT DEVELOPMENT AND STABILIZATION OF THE DOWNTOWN CORE.

IN DECEMBER OF 2022, A PORTION OF THIS TIF DISTRICT EXPIRED, WHICH WAS THE ORIGINAL AREA IN DOWNTOWN.

IN 2012, THE LAMAR CORRIDOR WEST END SUBDISTRICT WAS CREATED TO PROVIDE A SOURCE OF FUNDING TO SUPPORT ANTICIPATED REDEVELOPMENT THAT WOULD OCCUR WITHIN THE GEOGRAPHY THAT YOU SEE ON YOUR PAGE.

THE CITY OF DALLAS PARTICIPATES IN THIS TIF DISTRICT AT 90% AND DALLAS COUNTY AT 53%.

TO DATE, THE VALUE OF THE PROPERTY WITHIN THIS SUB DISTRICT HAS GROWN TREMENDOUSLY AND HAS INCREASED OVER 245% FROM ITS BASE YEAR 2012 VALUE. ALSO TO DATE, WITHIN THIS SUBDISTRICT, ONLY 267 UNITS HAVE BEEN CREATED AND 10% OF THOSE UNITS ARE INCOME RESTRICTED

[00:05:08]

AT 80% OR BELOW FOR RESIDENTS THAT MAKE 80% OR BELOW OF AMI.

NEXT PAGE, WE'LL GIVE YOU A LITTLE BACKGROUND ON THE LOCATION OF THE PROPOSED PROJECT.

THE NAME OF THE PROJECT IS WEST END LOFTS.

IT INCLUDES THE REDEVELOPMENT OF THREE SITES.

THE FIRST IS 805 ELM STREET.

SECOND IS 711 ELM STREET AND LASTLY TO 211 NORTH AUSTIN STREET.

NOW 711 ELM STREET AND 211 NORTH AUSTIN STREET IS LOCATED WITHIN THE BOUNDARIES OF THE CITY CENTER TIF DISTRICT.

THE ENTIRE PROPERTY IS LOCATED JUST SOUTH OF THE WEST END LIGHT RAIL STATION AND NORTH OF THE EL CENTRO CAMPUS.

THIS PROPERTY IS ALSO LOCATED IN THE CITY'S WEST END HISTORIC DISTRICT, AND LISTED ON THE NATIONAL REGISTER OF HISTORIC PLACES.

WEST END HISTORIC DISTRICT AND LASTLY, THIS IS A HIGH OPPORTUNITY AREA.

THE NEXT FEW PAGES PROVIDE, OR THE NEXT PAGE PROVIDES A DEPICTION TO GIVE YOU A BETTER IDEA OF THE LOCATION OF THESE PROPERTIES.

PAGE SIX.

AS MENTIONED, THERE ARE TWO STRUCTURES THAT ARE A PART OF THIS PROJECT THAT ARE HISTORIC STRUCTURES.

THE FIRST IS ON 805 ELM STREET.

IT WAS CONSTRUCTED IN 1904 AND IT CONSISTS OF FIVE STORIES ABOVE GROUND AND THEN ONE BELOW GRADE BASEMENT.

THE BASEMENT IN THE FIRST FLOOR OF THIS BUILDING WAS RENOVATED IN 2013 FOR ITS CHURCH TENANT AT THAT TIME, BUT THE REMAINING LEVELS ABOVE THE GROUND FLOOR WERE KEPT VACANT.

711 ELM STREET.

THAT STRUCTURE WAS CONSTRUCTED IN 1925, AND IT HAS ALWAYS BEEN A A SURFACE OR A PARKING GARAGE WITH OVER 100, WITH 140 PARKING SPACES AND SOME SMALL GROUND FLOOR RETAIL SPACE.

PAGE SEVEN IS A SUMMARY OF THE PROJECT.

AND SO, THE PROJECT DEVELOPER IS WEST END LOFTS LP.

YOU MAY, WHO IS THE MEMBER OF THE SYCAMORE STRATEGIES? THE WEST END LOFTS LP WAS CREATED TO EFFECTUATE THIS REDEVELOPMENT.

ZACHARY CROUCH, REPRESENTING THE DEVELOPMENT ENTITY, IS ALSO HERE IN THE AUDIENCE TO ANSWER ANY QUESTIONS YOU MAY HAVE OF THE DEVELOPER.

AND SO WITH THE PROJECT, THE 805 ELM STREET STRUCTURE WILL BE RENOVATED TO PROVIDE 56 UNITS.

THERE WILL BE NEW GROUND UP CONSTRUCTION OF A SIX STORY BUILDING TO CREATE AN ADDITIONAL 98 UNITS.

SO ON THIS SITE, THERE WILL BE 154 UNITS PROVIDED.

OF THOSE, 63 OF THOSE UNITS WILL BE INCOME RESTRICTED.

THERE WILL BE 23 UNITS AT THE 30% AMI LEVEL.

23 UNITS AT THE 60% AMI LEVEL, FOUR UNITS AT THE 70% AMI LEVEL, AND THEN 13 UNITS AT 80%.

AND THE REMAINING UNITS WILL BE AT MARKET RATE.

711 ELM STREET, WHICH IS THE PARKING GARAGE, WILL BE RENOVATED TO PROVIDE THE PARKING NEEDED FOR THE RESIDENTIAL UNITS.

IN TOTAL, THE PROJECT WILL CREATE JUST OVER 26,000FT² OF GROUND FLOOR SPACE AMONGST BOTH BUILDINGS.

AND THEN THERE WILL BE THE CREATION OF A 25,751 SQUARE FOOT PLAZA AND PROMENADE TO PROVIDE OPEN SPACE BETWEEN BOTH BUILDINGS. THE ESTIMATED TOTAL PROJECT COST IS 103.2 POINT 2 MILLION.

THIS PROJECT DID APPLY FOR LOW INCOME HOUSING TAX CREDITS, AND ON JANUARY 22ND OF 2024, THE HOUSING AND HOMELESS SOLUTIONS COMMITTEE WAS BRIEFED ON ITS APPLICATION, AND ON FEBRUARY 14TH, 2024, CITY COUNCIL AUTHORIZED A RESOLUTION OF SUPPORT FOR THIS PROJECT.

AND THEN LASTLY, ON JULY 25TH, 2024, THE TDHCA BOARD AWARDED HOUSING TAX CREDITS FOR THE PROJECT, AND IT SHOULD BE NOTED THAT THIS PROJECT SCORED THIRD OUT OF THE TOTAL 15 APPLICATIONS SUBMITTED.

AGAIN, THIS PROPERTY IS LOCATED IN A HIGH OPPORTUNITY AREA, WHICH IS DEFINED AS THOSE CENSUS TRACTS THAT HAVE A POVERTY RATE THAT IS AT 20% OR BELOW.

IN RECENT RESEARCH, IT HAS BEEN SHOWN THAT HIGH OPPORTUNITY AREAS OFTEN PROVIDE ATTRIBUTES OR ATTRIBUTES THAT HAVE A POSITIVE EFFECT ON ITS RESIDENTS. AND THAT'S ONE OF THE KEY FACTORS IN OUR REVIEWING THIS PROJECT AND THE FACT THAT IT CAN BE LOCATED IN DOWNTOWN AND IN HIGH OPPORTUNITY AREA. THIS PROJECT DID GO THROUGH THE URBAN DESIGN PEER REVIEW PANEL PROCESS, AND ON JUNE 28TH, 2024, THE PANEL REVIEWED THE PROJECT AND

[00:10:08]

PROVIDED DESIGN RECOMMENDATIONS.

THE DEVELOPER HAS AGREED TO ACCOMMODATE THE PANEL'S RECOMMENDATIONS, AND WILL CONTINUE TO WORK WITH CITY STAFF AS THEY GO THROUGH UPDATING THEIR DESIGN PLANS FOR THE PROJECT PRIOR TO BUILDING PERMIT APPLICATION.

ON PAGE 11 IS THE SITE PLAN FOR THE PROJECT AND AS YOU CAN SEE WITHIN THIS KIND OF BLUE DOTTED AREA, THE 805 ELM STREET CURRENTLY EXISTING BUILDING, RIGHT ADJACENT TO IT TO THE RIGHT IS THE NEW CONSTRUCTION THAT MAKES KIND OF A J ON THIS SITE. THEN ACROSS FROM THERE IS THE 711 ELM STREET PARKING GARAGE, AND YOU CAN SEE THE PROMENADE THAT IS BEING PROPOSED BETWEEN THE TWO DIFFERENT SITES.

THE NEXT COUPLE OF PAGES ARE JUST RENDERINGS OF THE PROJECT.

AND SO WE'LL GO TO SLIDE 15, WHICH IS OUR SOURCES AND USES.

THE APPLICANT IS PROPOSING VARIOUS SOURCES TO FUND THE PROJECT.

THE FIRST IS A PERMANENT LOAN OF 21 MILLION IN EQUITY FROM THEIR LOW INCOME HOUSING TAX CREDITS IN THEIR HISTORIC REHABILITATION TAX CREDITS, BOTH STATE AND FEDERAL, ALONG WITH A LOAN FOR THE RETAIL PORTION OF THE PROJECT, DEFERRED DEVELOPER FEE.

AND THEN IT SHOWS THE GAP OF 49 MILLION THAT HAS BEEN REQUESTED FROM THE CITY OF DALLAS.

KEVIN WENT THROUGH THE SUMMARY BENEFITS.

SO WE'LL SKIP RIGHT OVER TO THE CITY SUBSIDY THAT STAFF IS RECOMMENDING FOR THE PROJECT.

ON NOVEMBER 13TH, 2024, STAFF EXECUTED AN LOI WITH THE DEVELOPER.

THAT LOI INCLUDED AN OFFER OF $49 MILLION, WHICH WOULD BE THE CITY SUBSIDY AS GAP FUNDING TO MAKE THE PROJECT FINANCIALLY FEASIBLE.

THE CITY SUBSIDY THAT HAS BEEN PROPOSED WILL ONLY BE PAYABLE UPON COMPLETION OF THE PROJECT, AND UPON THE DEVELOPER'S SATISFACTION OF ALL TERMS AND CONDITIONS OF THE DEVELOPMENT AGREEMENT.

NOW, THE CITY SUBSIDY IS MADE UP OF TWO COMPONENTS.

THE FIRST IS THE TIF SUBSIDY, WHICH IS AN AMOUNT NOT TO EXCEED $28,275,676, WHICH WILL BE SOURCED FROM THE CITY CENTER TIF DISTRICT FUND.

AND THEN THE SECOND COMPONENT IS A GRANT IN AN AMOUNT NOT TO EXCEED $20,724,324 FROM VARIOUS SOURCES. GENERAL OBLIGATION BONDS 2024 AND 2020, 2012, AND OUR PUBLIC PRIVATE PARTNERSHIP FUND.

ON PAGE 18, WE PROVIDE A BREAKDOWN OF THE PROPOSED TIF SUBSIDY.

WHAT YOU SEE IN THIS CHART IS A BREAKDOWN OF THE SUBSIDY BASED UPON THE ESTABLISHED BUDGET FOR THE CITY CENTER TIF DISTRICT, BUT IT ADDS UP TO THE 28 POINT ROUGHLY 3 MILLION THAT WE'RE PROPOSING IN CITY CENTER TIF FUNDS FOR THE PROJECT.

OUR RECOMMENDATION ALSO COMES WITH OUR STANDARD TIF FUNDING CONDITIONS.

KEVIN ALREADY MENTIONED THE 40% MWBE PARTICIPATION REQUIREMENT.

OUR OPERATING AND MAINTENANCE AGREEMENT REQUIREMENT FOR 20 YEARS FOR ALL OF THE NONSTANDARD IMPROVEMENTS THAT ARE CONSTRUCTED, WHICH WOULD INCLUDE THE PROMENADE AND THE OPEN SPACE THAT THEY ARE PROPOSING.

THE CITY WILL NOT EXECUTE THE DEVELOPMENT AGREEMENT UNTIL THE DEVELOPER HAS PROVIDED EVIDENCE THAT ALL OF THEIR FUNDING SOURCE OF ALL OF THEIR FUNDING SOURCES, COMMITMENTS. AND THEN LASTLY, WHAT WE DO FOR ALL OF OUR PROJECTS IS WE HAVE A POST-CONSTRUCTION AUDIT WHERE WE VERIFY THAT THE DEVELOPER MET ALL THE TERMS AND CONDITIONS OF THE DEVELOPMENT AGREEMENT AND THEN DETERMINE WHETHER OR NOT THEY ARE ELIGIBLE FOR PAYMENT.

AND SO LASTLY, THE TIF DISTRICT OR THE TIF BOARD OF DIRECTORS MET ON NOVEMBER 19TH, 2024, TO CONSIDER THIS PROJECT AND RECOMMENDED UNANIMOUSLY APPROVAL OF THE TIF FUNDING IN THE 20.83 MILLION AS GAP FUNDING FOR THE PROJECT.

THERE WAS ONE CONDITION THAT THE TIF BOARD ADDED TO THEIR RECOMMENDATION OF APPROVAL AND IS THAT AND IT'S FOR THE DEVELOPER TO MAKE THE BEST EFFORTS TO PROVIDE A MINIMUM OF TWO SQUARE FEET PER RESIDENTIAL UNIT FOR PET RELIEF FACILITIES.

THE BOARD OF DIRECTORS FOR THIS PARTICULAR TIF DISTRICT IS MADE UP OF DOWNTOWN PROPERTY OWNERS, AND SO THEY ARE KEENLY AWARE OF THE ISSUES THAT MOST PROJECTS NEED TO PROVIDE SPACE FOR THE PETS OF THEIR RENTERS.

AND SO THIS IS THEIR EFFORT TO ENSURE THAT THIS PROJECT DOES THAT.

[00:15:04]

AND THEN LASTLY, THIS WILL GO BEFORE CITY COUNCIL ON DECEMBER 11TH.

AND WITH THAT, IT CONCLUDES MY PRESENTATION.

I'M HERE TO ANSWER ANY QUESTIONS YOU MAY HAVE.

CHAIRMAN RILEY. THANK YOU, MR. CHAIR. WHAT IS THE USE FOR THE 711 ELM STREET PARKING GARAGE? NOW, WHO USES IT? THE RESIDENTS OF THE BUILDING WILL USE THE PARKING GARAGE.

OH, RIGHT NOW? YES. NOT NECESSARILY SURE, I BELIEVE YOU CAN RENT SPACES IN THAT GARAGE.

WELL, I'M JUST WONDERING IF THERE WILL BE CAPACITY FOR THE NEW RESIDENTS IN THE 154 UNITS IN THAT EXISTING GARAGE.

YES, THERE WILL BE.

WILL YOU TURN YOUR MIC ON? DORSEY CLARK. YES, THERE WILL BE.

THERE'S 140 SPACES.

THAT GARAGE WILL GET A FULL RENOVATION, AND THOSE 140 SPACES WILL BE USED FOR THE RESIDENTS, THE DEVELOPER PLANS TO PURCHASE THE PROPERTY FROM THE CURRENT OWNER AND USE IT FOR THIS PROJECT.

OKAY. AND HAS ANYONE DONE A STRUCTURAL ASSESSMENT OF THE TWO HISTORIC BUILDINGS TO ENSURE THAT THEY'RE VIABLE FOR THEIR NEW INTENDED USES? THAT WILL BE SOMETHING THAT THE DEVELOPER WILL BE ABLE TO ANSWER.

ZACH [INAUDIBLE], SYCAMORE STRATEGIES.

WE'VE HAD THORNTON TOMASETTI DO STRUCTURAL SURVEYS ON BOTH PROPERTIES.

THEY'RE BOTH CONSIDERED VIABLE PRETTY MINIMAL STRUCTURAL WORK NEEDED TO BE DONE ON EITHER PROPERTY.

AND TO GO BACK TO THE PARKING QUESTION BECAUSE ONE OF THE BUILDINGS IS HISTORIC, THERE'S NO PARKING REQUIRED FOR THE UNITS IN THE HISTORIC STRUCTURE, ONLY PARKING REQUIRED FOR THE UNITS IN THE NEW CONSTRUCTION PORTION.

OKAY, SO YOU BELIEVE THAT THE OLDER PARKING GARAGE WILL PROVIDE SUFFICIENT PARKING FOR THE NEW BUILDING? YES, WE DO, ESPECIALLY WITH THE PROXIMITY TO THE DART LINE.

RIGHT. AND DO YOU INTEND TO REQUEST THE CITY ABANDON NORTH AUSTIN STREET? IT LOOKS LIKE IT'S BEING CONVERTED FROM VEHICULAR USE TO PEDESTRIAN USE.

YES, WE DO PLAN TO DO THAT.

OKAY. AND HOW WILL YOU PLAN TO FUND THE $49 MILLION GAP ON AN INTERIM BASIS UNTIL THE PROJECT IS COMPLETED AND THE CITY PAYS THAT.

WE ALREADY HAVE DEBT COMMITMENT TO FUND THAT, TO BRIDGE THE TIF.

OKAY. AND THEN FINALLY, WILL THE ANTIOCH CHURCH BE STAYING AS A TENANT, OR WILL THEY BE LEAVING, OR HAVE THEY ALREADY LEFT? THEY ARE IN THE PROCESS OF MOVING TO A NEW LOCATION.

OKAY. I THINK THAT'S ALL I HAVE, MR. CHAIR. THANK YOU.

ANYONE ELSE? [INAUDIBLE] AFTER THANKSGIVING, YOU MAY BE RELIEVED.

LET'S GET TO THE NEXT ITEM, ITEM B.

CHAIRMAN. ITEM B, IF HEATHER LEPESKA WOULD COME JOIN ME.

THIS IS A VERY EXCITING BUSINESS DEVELOPMENT PROJECT THAT HEATHER HAS BEEN WORKING ON FOR SEVERAL MONTHS.

IT'S A CHAPTER 380 GRANT OFFER TO SECURE A RELOCATION AND EXPANSION OF A BUSINESS.

I'LL LET HEATHER TALK ABOUT IT.

SURE. THANK YOU.

HEATHER LEPESKA, ASSISTANT DIRECTOR FOR THE OFFICE OF ECONOMIC DEVELOPMENT.

CAN YOU GET A LITTLE CLOSER TO THE MIC, PLEASE.

I KNEW THAT WAS COMING UP.

OKAY. IS THAT BETTER? OKAY. SO, HUGO GLOBAL IS A NORTH CAROLINA BASED COMMERCIAL AVIATION FACILITY.

THEY DO REPAIR AND OPERATIONS FOR AVIATION ENGINES.

THERE, THEY CURRENTLY HAVE A FACILITY IN CARROLLTON.

THEY'RE ADDING A NEW PRODUCT LINE FOR AVIATION ENGINE SUPPORT.

AND THE CARROLLTON FACILITY IS INSUFFICIENT FOR THE NEW WORK.

THEY NEED MORE SPACE.

SO THAT, SO THEY ARE LOOKING TO EXPAND IN DALLAS OR RELOCATE WORK TO GREENSBORO, NORTH CAROLINA.

THE PROJECT LOCATION IN DALLAS IS 11124 GOODNIGHT LANE IN DISTRICT SIX, AND IT'S A 290,000 SQUARE FOOT FACILITY THAT IS CURRENTLY UNDER CONSTRUCTION, ALMOST COMPLETE.

THE COMPANY PLANS TO INVEST THE WOULD LEASE THE PROPERTY FOR TEN YEARS WITH A FIVE YEAR EXTENSION, AND MAKE AN INVESTMENT OF 17.5 MILLION IN TENANT IMPROVEMENTS AND THE FFA AND MACHINERY.

AND THEN THE 76 JOBS THAT ARE CURRENTLY IN THE CARROLLTON FACILITY WOULD RELOCATE TO DALLAS, AND AN ADDITIONAL 98 JOBS WOULD BE CREATED AT THE DALLAS FACILITY.

SO THE MINIMUM JOB CREATION AT DALLAS WOULD BE 170 TOTAL JOBS.

[00:20:04]

THE MINIMUM AVERAGE ANNUAL SALARY IS $85,000.

THE GRANT AMOUNT WILL DEPEND ON THE LOCAL HIRING, SO IF THEY ACHIEVE A 25% OR HIGHER LOCAL HIRING, THE GRANT AMOUNT WILL BE 350,000.

IF THEY ACHIEVE A 35% OR HIGHER LOCAL HIRING, THE GRANT AMOUNT WILL BE 500,000.

ALL THE JOBS MUST BE CREATED BY DECEMBER 31ST, 2027.

THE COMPANY WILL ALSO ENTER A WORKFORCE PARTNERSHIP WITH EITHER DALLAS COLLEGE, DALLAS ISD, UNT DALLAS OR PAUL QUINN COLLEGE NO LATER THAN JANUARY 1ST, 2027 TO HELP ENSURE A LOCAL HIRING PIPELINE.

THE GRANT IS TO BE PAID BY JUNE 30TH, 2028.

THE COMPLIANCE PERIOD IS FOR FIVE YEARS AND WE HAVE REPRESENTATIVES FROM THE COMPANY HERE, IF YOU HAVE ANY QUESTIONS FOR THEM.

ANY QUESTION? CHAIRMAN. THANK YOU CHAIRMAN.

THANK YOU, CHAIRMAN. I'M JUST I'M IN SUPPORT OF THIS.

I THINK THIS IS A GREAT IT'S ALWAYS GREAT TO BRING A NEW BUSINESS THAT'S IN THE REGION.

BUT THAT WANTS TO BE INSIDE OF THE CITY OF DALLAS AND ESPECIALLY WITH THE JOBS THAT IT WILL CREATE.

AND, YOU KNOW, I ALWAYS LIKE THESE STAIR STEP AWARDS, IF THEY HIT THOSE NUMBERS OF LOCAL HIRING THAT ARE ACTUALLY DALLAS RESIDENTS.

BECAUSE IF WE'RE INVESTING, THEN DALLAS RESIDENTS SHOULD BE ABLE TO BE THE ONES TO GET THOSE JOBS.

AND SO THIS IS IT'S WORKING ALL THESE LAST YEARS AND IT'S GETTING BETTER AND BETTER EVERY, EVERY SINGLE TIME.

SO, I FULLY SUPPORT THIS AND HOPE WE'LL BE WELCOMING THEM TO DALLAS VERY, VERY SOON.

THANK YOU, MR. CHAIR.

ANYONE ELSE? JUST A COUPLE OF QUESTIONS.

YOU SAID HOW MANY NEW JOBS CAN BE CREATED? 98. AND THE AVERAGE PAY IS WHAT, 85,000? 85,000 AND AVERAGE PAY? YES. AND HOW MANY OF THOSE WOULD BE RESIDENT IN THE CITY OF DALLAS? SO 25% IS THE FLOOR.

AND THEN IF IT'S 35%, THE GRANT GOES UP TO $500,000.

OKAY. THANK YOU.

ITEM C, KEVIN, YOU'RE UP AGAIN.

YES, SIR.

OKAY. ITEM C, HEATHER IS GOING TO STAY.

ITEM C IS ABOUT AMENDMENTS AND UPDATES TO THE CITY OF DALLAS ECONOMIC DEVELOPMENT INCENTIVE POLICY.

SO, FOR THE BENEFIT OF THE COMMITTEE.

JUST TO REMIND WHERE WE'VE BEEN.

THE ECONOMIC DEVELOPMENT INCENTIVE POLICY WAS INITIALLY AUTHORIZED BY THE CITY COUNCIL IN JANUARY OF 23.

IT UNDERWENT SOME AMENDMENTS IN MARCH OF 24.

AND WE'VE BEEN OPERATING UNDER THAT THAT INCENTIVE POLICY FOR THE TWO YEAR PERIOD THAT IT WAS AUTHORIZED.

SO, IT'S NOW COMING TO ITS TO ITS CONCLUSION.

IT WAS ONLY AUTHORIZED FOR TWO YEARS, SO IT EXPIRES AT THE END OF THE YEAR.

ALSO, FOR PURPOSES OF CHAPTER 312 OF THE TAX CODE, WHICH IS THE TAX CODE CHAPTER THAT GOVERNS TAX ABATEMENTS, WE'RE REQUIRED TO HAVE GUIDELINES AND CRITERIA THAT GOVERN THOSE TAX ABATEMENTS.

THERE'S A WHOLE SECTION IN OUR INCENTIVE POLICY THAT SERVES AS THE GUIDELINES AND CRITERIA FOR TAX ABATEMENTS.

AND SO BY STATE STATUTE, WE'RE ALSO REQUIRED TO HOLD A PUBLIC HEARING AND ADOPT THE GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENTS.

AND THEN ALSO AUGUST 1ST OF THIS YEAR.

YOU MAY RECALL THAT THE CITY MANAGER ANNOUNCED THE THAT SHE WAS DISSOLVING THE SMALL BUSINESS CENTER AND HAVING OTHER DEPARTMENTS ABSORB CERTAIN FUNCTIONS.

SO THE OFFICE OF ECONOMIC DEVELOPMENT DID ABSORB SEVERAL FUNCTIONS RELATED TO SMALL BUSINESS DEVELOPMENT.

AND SO THAT IS THE PURPOSE OF THE AMENDMENTS THAT WE'RE BRINGING TO YOU TODAY.

AND HEATHER WILL WALK YOU THROUGH THE DETAILS OF THIS.

WE ACTUALLY HAVE SOME SLIDES ALSO.

BUT HEATHER, IF YOU COULD HIT THE HIGH POINTS FIRST AND THEN WE CAN DIVE INTO THE DETAILS.

SO THANK YOU. SURE.

THANK YOU. SO IF YOU IF YOU WANT TO GO TO PAGE SIX OF THE SLIDES, BUT WE'RE RECOMMENDING THE FOLLOWING CHANGES.

ONE IS THE ADDITION OF A SMALL BUSINESS PROGRAM THAT WILL INCLUDE A CITYWIDE SMALL BUSINESS ASSISTANCE PROGRAM AND A COUNCIL DIRECTED SMALL BUSINESS PROGRAM.

WE ARE PROPOSING TO ADD AN INNOVATION PROGRAM.

WE ARE PROPOSING AN AMENDMENT TO THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND AND PROGRAM STATEMENT, AN AMENDMENT OF THE SOUTHERN DALLAS INVESTMENT FUND AND PROGRAM STATEMENT AMENDMENT OF THE NEIGHBORHOOD EMPOWERMENT ZONE NINE AND TEN, JUST TO ADD THEM INTO OUR INCENTIVE POLICY.

AN AMENDMENT TO THE COMMUNITY DEVELOPMENT PLAN TO ALIGN IT WITH OUR OTHER INCENTIVE PROGRAMS, AND THEN OTHER GENERAL CLEANUP AND MINOR TECHNICAL CORRECTIONS.

AND I CAN GO THROUGH MORE DETAILS ON WHAT THESE ARE.

OR I CAN JUST ANSWER QUESTIONS, WHATEVER YOU PREFER.

YOU GOT THE FLOOR.

OKAY. I CAN GO THROUGH THE SMALL BUSINESS PROGRAMS AND THEN WE CAN BECAUSE THOSE ARE THE NEWEST THINGS AND THEN WE CAN.

OH, YEAH.

CAN YOU, CAN YOU BRING UP THE SLIDES FOR EXHIBIT A?

[00:25:16]

YEAH. AND IT'S PAGE SEVEN.

WELL THEY HAVE.

OH. OOPS.

TWO SETS OF NUMBERS. OKAY, OKAY.

KEEP. KEEP GOING.

RIGHT THERE. WE JUST DID THAT ONE.

OH, WAIT. BACK UP.

SORRY. TWO.

GO BACK. TWO.

THERE YOU GO. OKAY, SO UNDER THE SMALL BUSINESS PROGRAM, THERE ARE TWO COMPONENTS.

ONE IS A PROPOSED CITYWIDE SMALL BUSINESS ASSISTANCE PROGRAM.

THIS WOULD BE, AS THE NAME INDICATES, A CITYWIDE PROGRAM TO PROVIDE GRANT ASSISTANCE TO DALLAS SMALL BUSINESSES FOR PHYSICAL IMPROVEMENTS AS THEY MOVE AND GROW INTO DALLAS PHYSICAL LOCATIONS.

THE ASSISTANCE PROGRAM REQUIRES A MINIMUM INVESTMENT, SO THAT WOULD BE $150,000 FOR TARGET AREAS AND 250,000 FOR NON TARGET AREAS.

75% OF THE PROJECT COSTS MUST BE FROM NON CITY SOURCES, AND THE TERM WOULD BE A FIVE YEAR AGREEMENT TERM.

THE AWARD WOULD BE A BASE AWARD OF 15%, WITH A MAXIMUM AWARD OF 300,000IN TARGET AREAS AND 100,000 IN NON-TARGET AREAS IF THE PROJECT COMMITS TO A JOB CREATION.

THE AWARD WOULD INCREASE UP TO 25% OF THE PROJECT COST, WITH A MAXIMUM AWARD OF 400,000 IN TARGET AREAS AND REMAINING AT 100,000IN NON-TARGET AREAS, AND THESE WOULD BE PROCESSED BY ADMINISTRATIVE ACTION.

NEXT SLIDE.

AND THEN FOR THE COUNCIL, CITY COUNCIL DISTRICT SPECIFIC SMALL BUSINESS PROGRAM.

THIS WOULD BE FOR COUNCIL MEMBERS WITH IDENTIFIED DISCRETIONARY FUNDS FOR THEIR INDIVIDUAL COUNCIL DISTRICTS.

AND THEY DESIRE TO CREATE A SMALL BUSINESS PROGRAM FOR THEIR DISTRICT.

SOME OF THE EXAMPLES THAT WE'VE HEARD MENTIONED ARE FACADE IMPROVEMENT PROGRAMS ON COMMERCIAL CORRIDORS, FOOD TRUCK PROGRAMS, OR NEIGHBORHOOD RETAIL PROGRAMS. SO UPON CITY COUNCIL APPROVAL OF A PROGRAM STATEMENT THAT WOULD BE APPENDED TO OUR ECONOMIC DEVELOPMENT INCENTIVE POLICY AND WOULD BE SOMETHING THAT WE WOULD BE ABLE TO IMPLEMENT UNDER THE INCENTIVE POLICY.

NEXT SLIDE.

AND THEN FOR THE INNOVATION PROGRAM, THIS IS TO FURTHER THE GROWTH OF THE MAYOR'S TASK FORCE ON INNOVATION AND ENTREPRENEURSHIP AND LOOK AT SPURRING AND INCUBATING INNOVATION FOR SPONSOR ORGANIZATIONS WHO ARE LOOKING FOR SOME PLACE BASED SUPPORT.

THE FUNDS WOULD BE AWARDED ON A NEGOTIATED BASIS.

THEY WOULD, AS AN AGGREGATE NEED TO CREATE 25 PERMANENT FULL TIME JOBS THAT PAY A LIVING WAGE, DOCUMENT A MINIMUM CAPITAL INVESTMENT OF 2 MILLION OR MORE.

AND DOCUMENT THAT THEY HAVE VENTURE CAPITAL OF OTHER FUND RAISING OF $2 MILLION AND GENERATE A POSITIVE FISCAL RETURN ON INVESTMENT.

AND THEN ALL LOCATIONS FOR RECIPIENTS OR SUB RECIPIENTS MUST BE WITHIN THE CITY OF DALLAS.

AND THE AWARDS CAN CONSIST OF A GRANT TO THE SPONSOR ORGANIZATION OR OTHER ECONOMIC DEVELOPMENT ASSISTANCE.

AND WHAT WE WERE ENVISIONING IS RENT REDUCTION IN CITY OWNED FACILITIES SO THAT YOU COULD CREATE AN INCUBATOR SPACE.

AND THEN AS SUCCESS, THE INCUBATED BUSINESSES ARE SUCCESSFUL, THE PARENT ORGANIZATION COULD PROVIDE GRANT PAYMENT FOR THAT.

SO YOU'RE CREATING A PIPELINE OF INNOVATIVE COMPANIES WITHIN THE CITY OF DALLAS.

AND SO THOSE ARE REALLY THE TWO SMALL BUSINESS OR THREE SMALL BUSINESS PROGRAMS. JUST A NOTE ON THE SOUTHERN DALLAS OR SOUTH DALLAS FAIR PARK OPPORTUNITY FUND, THERE WERE A FEW CHANGES TO THAT PROGRAM STATEMENT THAT THE BOARD APPROVED AT THEIR MEETING LAST WEEK. AND SO THE YOU KNOW, WE REMOVED THE REFERENCES TO THE SMALL BUSINESS CENTER.

WE'RE CLARIFYING THAT GRANT PAYMENTS SHALL NOT BE MADE MORE THAN QUARTERLY UNDER THE HUMAN DEVELOPMENT PROGRAM.

WE'RE CLARIFYING THAT THE THIRD PARTY MATCH CAN COME FROM THIRD PARTY FUNDING SOURCES OR CASH ON HAND THAT THE ORGANIZATION MIGHT HAVE.

AND WE'RE CLARIFYING THAT THE THAT INVENTS THE GRANT RECIPIENT IS LOCATED ENTIRELY WITHIN THE SOUTH DALLAS FAIR PARK SERVICE AREA.

THE GRANTEE MUST DOCUMENT THAT AT LEAST 90% OF THE PEOPLE SERVED MUST BE RESIDENTS OF THE SERVICE AREA, AND THEN FINALLY, THAT THE NOFA CAN BE ISSUED UP TO TWO TIMES A YEAR INSTEAD OF IT MUST BE ISSUED TWO TIMES A YEAR.

AND THEN THE FINAL KIND OF PROGRAM STATEMENT CHANGES THAT WE'RE MAKING ARE RELATED TO THE SOUTHERN DALLAS INVESTMENT FUND.

AND IN THAT, AGAIN, WE'RE REMOVING REFERENCES TO THE SMALL BUSINESS CENTER, AND WE'RE ALIGNING THE USE OF THE FUNDS TO FURTHER THE ECONOMIC DEVELOPMENT INCENTIVE TOOLS, RATHER THAN IT BEING ITS OWN FUNDING PROGRAM.

AND WE ARE MAINTAINING THE REQUIREMENT THAT PROJECTS RECEIVING FUNDING UNDER THIS PROGRAM BE LOCATED IN SOUTHERN DALLAS, BUT IT WILL JUST GO AWAY AS ITS OWN PROGRAM.

[00:30:04]

IT'LL JUST MAKE IT EASIER FOR US TO USE IT AS A FUNDING SOURCE.

ANYTHING ELSE TO. OH, WELL.

OKAY. AND THEN KEVIN REMINDED ME I SKIPPED OVER SLIDE 11.

SO ON THE COMMUNITY DEVELOPMENT PLAN, THE ONLY CHANGE THAT WE'RE MAKING THERE IS WE ARE ALIGNING THE JOB CREATION CRITERIA TO TEN JOBS INSTEAD OF 25 JOBS, WHICH ALIGNS WITH OUR OTHER INCENTIVE PROGRAMS. NEXT QUESTION. OKAY.

SO AND THEN IN TERMS OF THE PROCESS AND NEXT STEPS, ON DECEMBER 11TH, CITY COUNCIL WILL CALL THE PUBLIC HEARING TO BE HELD ON JANUARY 8TH.

AND THEN FOLLOWING THE PUBLIC HEARING ON JANUARY 8TH, CITY COUNCIL WILL BE ASKED TO APPROVE THE RECOMMENDED AMENDMENTS TO THE INCENTIVE POLICY AND THE RELATED PROGRAM STATEMENTS. AND THEN WE WILL HAVE A REVISED INCENTIVE POLICY FOR THE PERIOD OF TWO YEARS, AS REQUIRED BY SECTION 312 OF THE TEXAS TAX CODE.

FOR TAX ABATEMENTS.

CHAIRMAN RIDLEY. THANK YOU, MR. CHAIR. HEATHER, THANK YOU FOR THE PRESENTATION.

I'M INTRIGUED BY THE INNOVATION PROGRAM.

WHAT WILL THE DEFINITION OF AN INNOVATIVE ENTERPRISE BE, AND WHO WILL DETERMINE THAT A PARTICULAR BUSINESS OR BUSINESS PLAN QUALIFIES UNDER THIS INNOVATION PROGRAM? SO WE'VE GONE A LITTLE BIT BACK AND FORTH ON THAT, AND WE'VE HAD SOME DISCUSSIONS ABOUT THAT.

THE YOU KNOW, I THINK WE WOULD WANT TO LOOK AT THE TARGET INDUSTRIES THAT, YOU KNOW, HEALTH CARE FINTECH, THAT JUST THE GENERAL INNOVATION CATEGORIES THAT THE MAYOR HAS INDICATED AND THAT WE'VE BEEN WORKING ON WITHIN OUR DEPARTMENT.

AND WE CAN DEVELOP A LIST FOR YOU IF YOU WOULD WANT THAT.

AND SO THE BIGGER CRITERIA IS THAT THERE'S A PARENT ORGANIZATION THAT'S ACTUALLY APPLYING FOR THE FUNDING SO THAT IT'S, YOU KNOW, IF IT'S A, YOU KNOW, SOMEBODY LIKE THE DEC OR SOMEBODY LIKE THE A HEALTH ORGANIZATION THAT WANTS TO CREATE AN INCUBATOR FOR SMALLER BUSINESSES THAT ARE WANTING TO DO THIS.

IT COULD ALSO BE A GROUP THAT IS LIKE THE INTERNATIONAL CHAMBER THAT WANTS TO DRAW INTERNATIONAL BUSINESSES IN THAT SPACE.

SO THE KEY COMPONENT IS THAT THERE IS A PARENT ORGANIZATION THAT IS APPLYING FOR THE FUNDING.

THEY'VE DEMONSTRATED THAT THEY'VE RAISED ADDITIONAL FUNDING.

THEY'VE DEMONSTRATED THAT THE SUBRECIPIENTS ARE CREATING THE JOBS.

AND THAT'S HOW THEY WOULD BE AWARDED FUNDING.

SO NOTHING IS PROVIDED UP FRONT.

IT'S ALL ON THE BASIS OF THEIR SPINNING OFF ADDITIONAL BUSINESS.

OKAY. I JUST, THAT WORD INNOVATIVE TO ME IS SUBJECT TO A LOT OF DIFFERENT KINDS OF INTERPRETATIONS.

AND SO I WOULD JUST SUGGEST THAT YOU HAVE SOME PRETTY SPECIFIC GUIDELINES FOR INTERPRETING THAT PHRASE SO THAT THE INNOVATION PROGRAM DOESN'T BLEED INTO OTHER PROGRAMS LIKE THE COMMUNITY DEVELOPMENT, AND REMAINS A DISTINCT KIND OF PROGRAM THAT WE CAN THEN MARKET TO POTENTIAL APPLICANTS AS SOMETHING THAT IS PRETTY FIXED IN TERMS OF WHAT IT'S INTENDED TO INCENTIVIZE. YES, THAT MAKES SENSE.

THANK YOU. THANK YOU, MR. CHAIR. MAYOR PRO TEM BAZALDUA.

THANK YOU, CHAIRMAN. AND THANK YOU ALL FOR YOUR PRESENTATION AND Y'ALL'S WORK ON GETTING THIS UPDATED.

I KNOW THAT THE SMALL BUSINESS CENTER AND THE SOUTH DALLAS OPPORTUNITY FUND ARE THERE'S BEEN A LOT OF QUESTIONS IN MY DISTRICT SPECIFICALLY SO HAPPY THAT WE'RE COMING TO RESOLUTION THERE.

I WANTED TO ASK, THOUGH, ABOUT THE CURRENT POLICY.

AND WITH US HAVING THIS OPENED UP THE LIVABLE WAGE LANGUAGE THAT EXISTS.

IT'S TIED TO THE MIT.

WHAT GUARDRAILS DO WE HAVE FOR OVERSIGHT ON THAT? AND I ASK FOR, YOU KNOW, WE JUST DID ONE SPECIFICALLY WITH SOUTH FAIR, FOR INSTANCE.

AND I KNOW THAT THE OVERARCHING PARENT COMPANY, IF YOU WILL, IS SOUTH FAIR, BUT THEY'RE GOING TO HAVE TENANTS, RIGHT, AND AUNT IRENE'S IS ONE IN PARTICULAR.

IS AUNT IRENE'S HELD TO THE SAME STANDARD OF LIVABLE WAGE? NO. SO IN THAT CASE, THE LIVABLE WAGE REQUIREMENT IS DIRECTLY FOR THE ENTITY RECEIVING THE INCENTIVE.

SO BECAUSE SHE'S A TENANT, THEY DON'T HAVE THAT RESPONSIBILITY.

BUT I WOULD ADD THAT WE AND IF YOU GO BACK TO THESE KINDS OF DEALS, THOSE ARE REAL ESTATE BASED TRANSACTIONS.

[00:35:03]

AND WHAT WE DO IS WE REQUIRE THAT ENTITY THAT'S RECEIVING OUR FUNDS TO MAKE BEST EFFORTS OR COMMERCIALLY REASONABLE EFFORTS TO HAVE A LOCAL HIRING PLAN WHERE THEY WILL ENCOURAGE STRONGLY ENCOURAGE THEIR TENANTS TO USE THE SAME SOURCES, THE SAME, REACH THE SAME REQUIREMENTS IN TERMS OF LIVABLE WAGE.

SO WE CAN'T WE'RE NOT CONTRACTING DIRECTLY WITH THEM, SO WE CAN'T ENFORCE IT DIRECTLY WITH THEM.

BUT WE CAN ENFORCE THE, THE, THE ENTITY RECEIVING THE FUNDS AND ASK THEM TO MAKE BEST EFFORTS TO FORCE EVERYBODY ELSE TO DO THAT.

WELL, THAT'S ONE OF THE REASONS I WAS ASKING.

SO IS THERE IS THERE NOT MORE EXPLICIT LANGUAGE THAT COULD HELP US ACCOMPLISH? I MEAN, I THINK THAT THERE'S A SOMEWHAT OF A LOOPHOLE, IF YOU WILL, AROUND LIVABLE WAGE BEING A REQUIREMENT. AND I'D LIKE TO SEE US GET SOME MORE TEETH BEHIND THAT.

AND IF WE LOOK BACK A FEW YEARS AGO THE TOM THUMB, FOR INSTANCE, AT REDBIRD, THAT'S ANOTHER EXAMPLE THAT I WAS GOING TO ASK SPECIFIC TO THE LIVABLE WAGE.

THAT ONE WAS 380, RIGHT.

WELL, THE TOM THUMB WAS THE ACTUAL RECIPIENT OF THAT INCENTIVE.

SO YES, THEY WERE REQUIRED TO ACTUALLY MEET THAT.

AND WE WOULD CHECK THAT EVERY YEAR.

BUT IN REAL ESTATE DEVELOPMENT, WE'RE TYPICALLY CONTRACTING WITH THE GROUP THAT OWNS THE BUILDING AND IS THE LANDLORD OF THE BUILDING.

SO THERE IS IT'S AN INDIRECT RELATIONSHIP WITH ANY TENANTS WHO ARE ACTUALLY DOING THE JOB CREATION.

AND I GET THAT.

THAT'S WHY I'M ASKING IF THERE IS ANY WAY FOR US TO LOOK AT LANGUAGE THAT COULD HELP US ACCOMPLISH THAT EVEN WITH OUR REAL ESTATE DEALS, BECAUSE WE'RE ABLE TO HOLD TOM THUMB, FOR INSTANCE, FOR THAT OTHER EXAMPLE, ACCOUNTABLE.

BUT I AM CURIOUS ON WHAT OVERSIGHT YOU SAID THAT YOU CHECK EVERY YEAR, BUT THEN WHAT RECOURSE DO WE HAVE AS A CITY? AND, I MEAN, HOW DO THEY HOW DO WE MAINTAIN IN PERPETUITY THAT THOSE JOB WAGES CONTINUE TO GROW WITH THAT YEARLY INDEX. WELL, FOR BUSINESS DEVELOPMENT INCENTIVES LIKE THE ONE THAT'S ON THE AGENDA TODAY THEY WON'T EVER GET PAID IF THEY DON'T DEMONSTRATE COMPLIANCE.

SO WE CHECK IT THE FIRST TIME.

AND THEN A LOT OF TIMES THERE'S ONGOING COMPLIANCE FOR A FIVE YEAR PERIOD, A SEVEN YEAR PERIOD.

AND SO EVERY YEAR THERE'S AN ANNUAL REVIEW OF THAT THAT THEY'RE STILL IN COMPLIANCE.

SO WE CHECK EMPLOYMENT ROSTERS.

WE GO TO THE LOCATION OF BUSINESSES.

WE MEET WITH HR.

WE LOOK AT PERSONNEL FILES.

I MEAN IT'S THAT LEVEL OF DETAIL WHEN IT'S A BUSINESS THAT WE ARE CONTRACTING WITH DIRECTLY, I JUST WOULD JUST ASK THAT ON REAL ESTATE DEALS SPECIFICALLY THAT WE ARE ABLE TO HOLD THE SAME FEET TO THE FIRE, FIGURING OUT A WAY FOR US TO INCENTIVIZE.

I THINK THAT, I MEAN, ESPECIALLY WHEN IT COMES TO SOUTHERN DALLAS AND THE REVITALIZATION OF OUR DILAPIDATED SHOPPING CENTERS DINNERS OR THE DIFFERENT DEVELOPMENTS THAT WE'D LIKE TO SEE MONEY PUMPED INTO.

I THINK THAT IT'S GREAT TO SEE A FACELIFT, BUT FOR SUSTAINABILITY MOVING FORWARD, I'D LIKE TO SEE THESE OPERATIONS ACTUALLY HAVE VIABLE TENANTS AND BE HELD TO A HIGHER STANDARD.

WE HEAR YOU AND I THINK WE'LL HUDDLE UP WITH THE CITY ATTORNEY'S OFFICE.

WHAT I WOULD SAY IS SOME REAL ESTATE DEVELOPMENTS ARE SPECULATIVE, INSOFAR AS THEY DON'T KNOW WHO THEIR TENANTS WILL BE OR EVEN WHAT THEIR USES MIGHT BE AT, YOU KNOW, AT THE TIME THEY COME THROUGH US.

BUT FOR SURE, WE'LL HAVE A WE'LL GET INTO THE DETAILS ON THAT.

I UNDERSTAND THAT, BUT THEY'RE ALSO ASKING FOR MONEY FROM US.

SO I JUST WANT US TO BE ABLE TO HAVE SOME SORT OF LEG TO STAND ON.

I MEAN, WE I'VE SEEN SEVERAL DEALS WHERE THEY'RE, YOU KNOW, IT'S UP IN THE AIR.

YOU DON'T EVEN KNOW WHO THESE TENANTS ARE BEING FILLED WITH.

BUT AGAIN, IN ORDER FOR US TO HAVE VIABLE, SUSTAINABLE TENANTS IN THESE PLACES, I THINK THAT PROVIDING SOME MORE STRINGENT GUARDRAILS ON WHAT THAT WOULD LOOK LIKE FOR THE LANDOWNERS WOULD BE HELPFUL, SO THAT WE CAN NOT HAVE SOME OF THE SAME ISSUES THAT I KNOW I HAVE IN DISTRICT SEVEN.

THANK YOU. DULY NOTED.

THANK YOU. THANK YOU, MR. CHAIR. CHAIRMAN NARVAEZ.

THANK YOU, CHAIRMAN.

SO, MY QUESTION IS KIND OF SIMILAR, EXCEPT FOR IT HAS TO ACTUALLY DO WITH THE BUSINESSES.

AND DO WE HAVE AN ABILITY OR A WAY TO MAKE SURE THAT THEY HAVE A CERTAIN PERCENTAGE OF THE BUILDING SPACE IS LEASED TO ACTUAL LOCALLY OWNED BUSINESSES WHERE THEY, YOU KNOW, OR IS THERE A WAY TO DO A BONUS WHERE IF THEY, YOU KNOW, THE RESIDENT OR THE OWNER LIVES IN THE ACTUAL AREA OR THAT WAY YOU CAN ALSO HELP STABILIZE WITH THE ACTUAL PEOPLE THAT ARE IN THE COMMUNITY FOR THE COMMUNITY, INSTEAD OF SOME OUTSIDE ENTITY THAT'S COMING IN AND LEASING TO WHO

[00:40:06]

KNOWS WHO FROM WHO KNOWS WHERE.

THAT MAY NOT HAVE THE SAME INTEREST INSIDE OF THE CITY AS A LOCALLY OWNED NEIGHBORHOOD PERSON MIGHT.

YEAH. I MEAN, THAT'S A GOOD QUESTION.

AND I GET WHAT YOU'RE TRYING TO DO IS CREATE VIBRANT NEIGHBORHOODS WITH NEIGHBORHOOD BUSINESSES AND BUSINESS OWNERS.

WE DON'T HAVE THAT IN HERE RIGHT NOW, BUT WE DO REQUIRE THAT THE SMALL BUSINESSES HAVE 20 OR FEWER EMPLOYEES SO THAT IN THAT CITYWIDE.

SO IT IS SCALED, HOPEFULLY MORE SKILLED, AT LEAST FOR THE SMALL BUSINESS PROGRAM, TO BE MORE OF THAT NEIGHBORHOOD BASED.

VERY GOOD. AND THEN FROM THERE ALSO, IT'S, YOU KNOW, IS THERE A WAY TO DO SOMETHING THAT HELPS ALREADY LOCALLY OWNED BUSINESSES THAT MAYBE WANT TO MOVE INTO A NEW, NEW, NEW PLACE, BUT ALSO HELP THEM SO THAT THEY CAN BE PREPARED FOR BECAUSE OBVIOUSLY THE RENT WILL BE HIGHER.

THEIR BUSINESS MODEL MAY NOT BE PREPARED FOR THAT CHANGE, BUT HOW DO WE HELP THEM SO THAT THEY DON'T GET PUSHED OUT? BECAUSE WHEN WE'RE TALKING ABOUT STABILIZATION, IT'S VERY EASY TO ALSO END UP DOING GENTRIFICATION.

AND IN ORDER TO STAY AWAY FROM THAT, WE HAVE TO DO SOME WHAT I CALL GENTRIFICATION, WHICH IS THE PEOPLE WHO RENT IS PEOPLE IN SPANISH.

AND SO IF WE CAN MAKE SURE THAT THOSE FOLKS, THAT WE HELP THEM SURVIVE AS WELL, BECAUSE IT'S VERY IMPORTANT THAT WE KEEP THOSE LOCALLY OWNED BUSINESSES THAT HAVE BEEN THERE FOR GENERATIONS, THAT THEY DON'T GET PUSHED OUT EITHER, BECAUSE THE MINUTE YOU PUSH THAT OUT, THEN WE END UP PUSHING OUT A LOT OF RESIDENTS AS WELL.

SO HOW DO WE MAINTAIN STABILITY AT THE SAME TIME HELPING THEM GROW AND NOT BE MOVED AWAY? SO THIS IS SET UP THAT IF THEY'RE EITHER GOING INTO INITIAL OR THEY'RE EXPANDING.

SO WITH THAT NEW INVESTMENT, THAT WOULD WORK.

SO IF AS LONG AS THEY'RE MEETING THE MINIMUM CAPITAL INVESTMENT, SO IF THEY'RE ALREADY THERE, BUT THEY WANT TO MOVE INTO A LARGER FACILITY, IT'S $150,000 OF INVESTMENT, THEY WOULD BE ELIGIBLE FOR THAT SMALL BUSINESS FUNDING.

VERY GOOD. AND I'LL GIVE AN EXAMPLE.

IN WEST DALLAS WE HAD WHEN TRINITY GROVES STARTED GETTING BUILT ACROSS THE STREET, THERE WAS A IT'S MY FAVORITE TACO PLACE IN DALLAS.

SO IT WAS CALLED TACOS MARIACHI.

BUT HE WAS IN AN OLD BUILDING, YOU KNOW, BEEN THERE FOR A WHILE AND THEN HIS BUILDING WAS GOING TO GET SCRAPED.

AND, YOU KNOW, NOW THERE'S AN APARTMENT BUILDING NEXT DOOR.

BUT THEY HAD ALWAYS WORKED WITH HIM THAT WHEN IT GETS SCRAPED THAT HE WAS GOING TO MOVE INTO THAT NEW BUILDING AND NOW HE'S TACOS MILAGRO.

AND IT'S, YOU KNOW, WINNING AWARDS ALL OVER THE PLACE.

SO IT'S ONE OF THOSE THINGS THAT, YOU KNOW, TO GIVE THE EXAMPLE OF KEEPING SOMEBODY WHO'S ALREADY THERE AND NOT PUSHING OUT MY FAVORITE TACO PLACE IN ALL OF DALLAS, RIGHT. AND BUT, YOU KNOW, BUT THAT'S ALSO FOR OTHER PEOPLE, RIGHT.

THAT THEIR STORE OR WHERE THEY GO BUT THAT BUSINESS OWNER WOULD TOTALLY STAY.

THEY JUST MAYBE DON'T HAVE THE EITHER DON'T HAVE THE, THEY JUST DON'T HAVE THE RESOURCES AND THE CAPABILITY IN ORDER TO STAY WHEN IT BECOMES SOMETHING BRAND NEW.

SO IF WE CAN MAKE SURE THAT HAPPENS AS WELL.

SO OBVIOUSLY, YOU KNOW, WE WANT THEM TO PAY A LIVING WAGE, YOU KNOW, AND IF THEY EXPAND, THEY'RE GOING TO NEED MORE EMPLOYEES.

THAT'S A GOOD THING.

AND ESPECIALLY FOR THE NEIGHBORHOOD.

SO IT'S KIND OF ALL FITS TOGETHER.

BECAUSE WE WANT TO MAKE SURE WE KEEP EVERYBODY AROUND AS MANY AS WE CAN HELP STABILIZE, BUT ALSO GROW BECAUSE WE ALSO ARE VERY SIMILAR TO, I THINK, WHAT YOU KNOW, THEY HAVE IN SOUTH DALLAS, YOU KNOW, WE WANT TO WE WANT THE NEW COFFEE SHOP, WE WANT THE NEW RESTAURANT, WE WANT THE, YOU KNOW, WE WANT A DRY CLEANER, ALL OF THOSE THINGS. BUT WE ALSO DON'T WANT TO LOSE OUR PANADERIA.

WE DON'T WANT TO LOSE, YOU KNOW, OUR YOU KNOW, PLACES THAT WE ALREADY HAVE BECAUSE THEY GET PUSHED OUT FOR OTHER REASONS.

SO THIS IS ALL GREAT.

IT'S JUST HOW DO WE HELP MAKE THOSE THINGS HAPPEN? SO THANK YOU. THANK YOU, MR. CHAIR. JUST FOLLOWING UP ON DEPUTY MAYOR PRO TEM AND CHAIRMAN NAVARRO'S.

SINCE WE GOT THE SMALL BUSINESS, AND IF A REAL ESTATE DEVELOPER, COME IN AND SAID, I WANT TO BORROW X AMOUNT OF DOLLARS TO BUILD A, A STRIP CENTER, FOR EXAMPLE.

HE WILL COME IN AND SAY, THIS IS WHAT I NEED TO BUILD THE STRIP CENTER, AND HERE IS MY GAP.

AT THE SAME TIME, IF HE BRINGS IN THE SUB TENANT WITH HIM, THE SUB CAN GO TO THE SMALL BUSINESS AND THEY CAN GET MONEY AND WE CAN HOLD THEM ACCOUNTABLE FOR THE SMALL TENANT.

AND SO THAT'S WHEN THE SMALL BUSINESSES COME INTO PLAY.

IF YOU SELL IT ON THAT SAME IDEAL.

I THINK THAT THAT'S THE WAY THAT I THINK THAT MAYOR PRO TEM BAZ.

AND WHAT WE CAN DO IS SINCE WE DO HAVE A SMALL BUSINESS, SINCE THE SMALL BUSINESS IS WITH ECONOMIC DEVELOPMENT, YOU WILL BE ABLE TO DO THAT IF THE REAL ESTATE COME IN AND SAY, OH, BY THE WAY, I GOT A STARBUCKS COMING IN.

BY THE WAY, I GOT A MCDONALD'S COMING IN, I GOT A WINGFIELD COMING, WHATEVER.

WE CAN HOLD THEM ACCOUNTABLE TO MAKE SURE THERE IS MINIMUM WAGE.

IT'S THAT SOMETHING THAT CAN BE DONE WITH THE SMALL BUSINESSES IN THE SAME? GREAT COMMENT.

[00:45:01]

AND YEAH, I WOULD CERTAINLY ECHO THAT IS A BENEFIT NOW THAT WE MANAGE THE SMALL BUSINESS PROGRAM.

BUT WHEREAS BEFORE WE DIDN'T REALLY KNOW WHAT THE SBC WAS WORKING ON, WE WOULD, YOU KNOW, TRY TO COORDINATE WITH THEM AS BEST WE COULD.

BUT YOU'RE ABSOLUTELY RIGHT.

NOW WE HAVE TWO PROGRAMS WE CAN DO, ONE WITH THE OWNER, DEVELOPER OF THE ACTUAL DEVELOPMENT, AND WE CAN ALSO BRING PROSPECTIVE TENANTS IN THROUGH OUR SMALL BUSINESS PROGRAM. ABSOLUTELY.

OKAY. I'LL JUST ALSO ADD THAT THE WAY THE SMALL BUSINESS PROGRAM IS SET UP RIGHT NOW, IF THEY DO PAY AT LEAST FIVE LIVING WAGE JOBS, THEY GET A BOOST ON WHAT THAT GRANT PAYMENT WOULD BE. SO IT'S I MEAN, IT'S HARD TO MAKE WAGES FOR SMALL BUSINESS LIKE, ESPECIALLY WHEN THEY'RE STARTING OUT.

AND SO WE DIDN'T WANT TO HAVE THAT BE THE NUMBER ONE CRITERIA BECAUSE WE'RE LOOKING AT THAT INVESTMENT AND WE'RE LOOKING AT BUILDING THE NEIGHBORHOOD.

BUT WE ALSO FELT LIKE IF THERE WAS A COMMITMENT TO CREATING THAT LIVING WAGE, SMALL BUSINESS GROWTH, THEY SHOULD GET REWARDED FOR THAT.

OKAY. ALL RIGHT.

DEPUTY MAYOR PRO TEM, THANK YOU TO DO IT.

THANK YOU, CHAIR. AND THANK YOU ALSO FOR YOUR COMMENTS.

I THINK THAT'S GOOD.

I JUST WANTED TO MAKE SURE THAT IT'S EXPLICIT BECAUSE I SEE THAT THERE'S I MEAN, IT'S PRETTY EXPLICITLY DEFINED.

EARLIER IN THE, THE POLICY ITSELF, BUT IN THE NEW LANGUAGE THAT YOU'RE BRINGING IN, IT SAYS LIVABLE WAGE.

IN THE OUTLINE OF THE SMALL BUSINESS PROGRAM, CREATING THE LIVABLE WAGE JOBS.

BUT I WOULD LIKE TO SEE US BE ABLE TO JUST AS AN EXAMPLE, A HYPOTHETICAL EXAMPLE THAT WAS GIVEN THAT WE HAVE SOMETHING ON THE BOOKS THAT IS GOING TO BE ABLE TO HOLD THEM ACCOUNTABLE ON THE TENANT SIDE, BECAUSE I ABSOLUTELY WANT OPPORTUNITIES, I WANT I AGREE WITH WHAT MR. NARVAEZ SAID. I MEAN, THAT'S WHY I WAS VERY PLEASED WITH WHAT Y'ALL DID WITH THAT DEAL WE JUST APPROVED FOR SOUTH DALLAS AND BRINGING IN IRENE'S, YOU KNOW, I MEAN, THIS IS GOING TO BE A HUGE UPGRADE FOR HER BUSINESS.

IT'S GOING TO BE A HUGE UPGRADE FOR THE CITY.

BUT AT THE SAME TIME, I DON'T WANT, I DON'T WANT, YOU KNOW, THESE VACANCIES TO START GETTING FILLED UP.

AND WE'RE NOT AT THE SAME TIME PROVIDING SUSTAINABLE, LIVABLE WAGE JOBS IN THE COMMUNITY AND THAT THEY STILL HAVE TO GO OUT OF THE COMMUNITY IN ORDER TO MAKE ANY REAL, LIVABLE WAGES.

THAT'S THE ONLY DISCREPANCY I'M TRYING TO SEE.

IF Y'ALL FEEL THAT THE LANGUAGE IS THERE AND I KNOW YOU'RE GOING TO TALK WITH THE ATTORNEYS, THEN THAT'S FINE.

I JUST WANT TO MAKE SURE THAT THE DEFINITION EARLIER IN THE POLICY IS APPLICABLE TO THE NEW LANGUAGE THAT YOU'RE ADDING IN FROM THE SMALL BUSINESS CENTER. THANK YOU.

THANK YOU, MR. CHAIR.

NEXT ITEM, KEVIN.

HEATHER, YOU'RE DISMISSED.

WOW. GOLLY.

OKAY, WELL, NOW I GET TO ENLIST ASSISTANT CITY MANAGER, INTERIM ASSISTANT CITY MANAGER ROBIN BENTLEY'S HELP.

ITEM D. OKAY, SO EVERYONE HOPEFULLY REMEMBERS THE CITY COUNCIL DEVELOPMENT AGREEMENT, INCENTIVE DEAL THAT WAS APPROVED IN JUNE OF 2022 FOR UNIVERSITY HILLS PHASE ONE CATALYST PROJECT AS PROPOSED BY HOQUE GLOBAL.

SO OUR ITEM EXPLAINS A WHOLE BUNCH OF BACKGROUND.

BUT BASICALLY THE END OF 23, HOQUE GLOBAL HAD BEEN REQUIRED UNDER THE PREVIOUS DEAL TO EXECUTE THAT AGREEMENT.

THAT DID NOT HAPPEN FOR A VARIETY OF REASONS.

HOWEVER, SINCE JANUARY OF 2024, HOQUE GLOBAL HAS BEEN ACTING IN GOOD FAITH TO MAKE VERY SUBSTANTIVE PROGRESS WITH LOTS OF CITY DEPARTMENTS TO ADDRESS LOTS OF OUTSTANDING ISSUES AND SOME OF THOSE ISSUES INVOLVE CREATING URBAN DESIGN GUIDELINES, WHICH ARE ATTACHED TO THIS ITEM TODAY. COORDINATING WITH HOMEBUILDERS TO IMPROVE HOME DESIGNS.

COORDINATING WITH DALLAS WATER UTILITIES TO FINALIZE PLANS FOR A WASTEWATER INFRASTRUCTURE IMPROVEMENT.

RECEIVING APPROVAL OF THREE PRELIMINARY PLATS FOR THE ENTIRE PROPERTY.

COORDINATING WITH THE CITY ARBORIST TO DEAL WITH TREE MITIGATION REQUIREMENTS.

SUBMITTING A FLOODPLAIN FILL PERMIT.

SO HOQUE GLOBAL HAS BEEN DOING LOTS OF THINGS OVER THE LAST YEAR, AND WE'VE BEEN NEGOTIATING AMENDMENTS TO THAT 2022 DEAL. IN ANTICIPATION OF EVENTUALLY GETTING TO THIS POINT, I WOULD MENTION ALSO ON AUGUST 14TH OF 2024, CITY COUNCIL DID AUTHORIZE CONDITIONAL CONSENT TO AND PERMISSION FOR THE CREATION OF THE UNIVERSITY HILLS MUNICIPAL MANAGEMENT DISTRICT, OR THE MMD AND HOQUE GLOBAL HAD REPRESENTED AT THAT TIME THAT THAT RESOLUTION WAS ALSO A REQUIREMENT FOR THEM TO BE ABLE TO ACTUALLY CLOSE ON THE PURCHASE OF THIS 279 ACRE SITE.

SO, AS I MENTIONED, WE'VE BEEN NEGOTIATING THESE AMENDMENTS, AND ARTHUR SANTAMARIA WITH HOQUE GLOBAL IS HERE TODAY.

[00:50:05]

IF YOU HAVE SPECIFIC QUESTIONS FOR HIM.

I'LL MENTION 2 OR 3 SPECIFIC ITEMS THAT ARE BEING PROPOSED TO BE AMENDED, AND THEN WE'LL GO FROM THERE.

SO NUMBER ONE IS WE ARE PROPOSING TO INCREASE THE CITY SUBSIDY, SPECIFICALLY THE PUBLIC PRIVATE, THE PGP GRANT PORTION BY 01,750,000. AND THAT IS FOR A VERY SPECIFIC REASON.

DALLAS WATER UTILITIES HAD BEEN PLANNING TO PROVIDE A WASTEWATER INFRASTRUCTURE LINE THAT SERVES THIS ENTIRE AREA.

THROUGH THEIR UNSERVED AREAS PROGRAM, WHICH WAS DEVELOPED BACK IN 2020.

AND THAT'S PROJECT AREA 75-4-C WELL, HOQUE GLOBAL HAS REQUESTED TO BE REQUIRED TO CONSTRUCT AND DELIVER AND RECEIVE CITY ACCEPTANCE OF THAT PUBLIC INFRASTRUCTURE ITEM.

IT'S A VERY SPECIFIC THING THAT'S REQUIRED INSTEAD OF DWU DELIVERING IT.

HOQUE GLOBAL WOULD BE DELIVERING IT? THEY THINK THEY CAN DO IT FASTER, CHEAPER AND WITH BETTER COORDINATION WITH ALL OF THEIR PRIVATE DEVELOPMENT ACTIVITIES THAT THEY'RE GOING TO BE DOING.

SO THIS ITEM WOULD INCREASE THE CITY SUBSIDY FOR 1,750,000.

AND THEN THAT 1,750,000 IS ACTUALLY GOING TO BE CONTRIBUTED BY DALLAS WATER UTILITIES FOR THE MONEY THEY WOULD HAVE SPENT TO DELIVER IT THEMSELVES AND TRANSFER IT TO THE CITY'S PUBLIC PRIVATE PARTNERSHIP FUND, WHICH IS THE FUND THAT WE MANAGE AND USE FOR THIS DEVELOPMENT AGREEMENT.

ALSO PROPOSING TO EXTEND VARIOUS MATERIAL DATES AND DEADLINES, MOSTLY BY 18 TO 24 MONTHS, WHICH IS MOSTLY THE, YOU KNOW, THE DURATION OF THE DELAY SINCE 2022.

IN CONSIDERATION OF THESE CHANGES, WE'VE NEGOTIATED A COUPLE OF DIFFERENT THINGS IN CONSIDERATION.

ADDITIONAL $2 MILLION OF MINIMUM INVESTMENT THAT'S GOING TO BE REQUIRED OF THE DEVELOPER.

THE DEVELOPER IS ALSO GOING TO BE REQUIRED TO SELL AN ADDITIONAL 50 SITES FOR SINGLE FAMILY HOMES, AND ALSO GOING TO BE REQUIRED TO CONSTRUCT A COMMUNITY AMENITY CENTER WITH A POOL.

I WOULD NOTE IN YOUR IN THE COMMITTEE ITEM AT THE BOTTOM OF THE SECOND PAGE AND ON TO THE THIRD PAGE ARE THREE VERY SPECIFIC THINGS THAT ARE MOSTLY IMPORTANT TO THIS WHOLE THING, WHICH IS THERE ARE THREE AMENDED DEADLINES THAT THE DEVELOPER HAS AGREED TO ACHIEVE.

THE FIRST IS EXECUTING THE DEVELOPMENT AGREEMENT ITSELF.

SO THE DEADLINE IS NOW GOING TO BE THE LATTER OF 30 DAYS AFTER CITY COUNCIL APPROVES THE AMENDMENTS, AND 30 CALENDAR DAYS AFTER THE CITY DELIVERS A CITY SIGNED VERSION OF THE AGREEMENT INCORPORATING THOSE AMENDMENTS.

SO THAT WOULD BE ON OR ABOUT JANUARY 11TH OF 2025.

THE CITY ATTORNEY'S OFFICE DOES HAVE A FINAL DRAFT OF THE AGREEMENT PREPARED AND WILL BE INCORPORATING THE AMENDMENTS, ASSUMING THAT THE CITY COUNCIL APPROVES THOSE AMENDMENTS ON DECEMBER 11TH.

THE SECOND DEADLINE THAT'S GOING TO BE CHANGED IS THE DEADLINE TO PURCHASE THE PROPERTY.

THE DEVELOPER WILL PURCHASE THE ENTIRE 279 ACRES FROM VM FUND ONE LLC, WHICH IS CENTURION AMERICAN ENTITY, WITHIN 90 CALENDAR DAYS OF THE DEVELOPER'S EXECUTION OF THE AGREEMENT.

SO THAT WOULD MAKE IT ON OR ABOUT APRIL 11TH OF 2025.

AND THE THIRD AMENDED DEADLINE IS THE DEVELOPER'S DEADLINE TO SECURE CONSTRUCTION FUNDING, SO THE DEVELOPER WOULD BE REQUIRED TO SECURE AND PROVIDE EVIDENCE OF ALL CONSTRUCTION FINANCING WITHIN THE LATER OF JUNE 30TH OF 2025 AND 180 DAY CALENDAR DAYS AFTER DEVELOPER'S EXECUTION.

SO THAT'S ON OR ABOUT JUNE 30TH.

IF DEVELOPER FAILS TO COMPLY WITH ANY OF THOSE THREE AMENDED DEADLINES I JUST DESCRIBED, THE CITY WILL RESCIND ALL AUTHORIZATIONS AND FUNDING COMMITMENTS PROVIDED BY THE PREVIOUS RESOLUTION AND AS AMENDED BY THIS NEW ONE, AND WE WILL TERMINATE THE AGREEMENT.

IF THE AGREEMENT HAS BEEN EXECUTED, THERE WILL BE NO CURE PERIOD FOR ANY OF THESE THREE AMENDED DEADLINES.

IF THEY BLOW THE FIRST ONE, WE'RE DONE.

IF THEY BLOW THE SECOND ONE, WE'RE DONE.

IF THEY BLOW THE THIRD ONE, WE'RE DONE.

ANY QUESTIONS? DEPUTY MAYOR PRO TEM.

THANK YOU, MAYOR PRO TEM.

I I DO HAVE QUESTIONS.

I KNOW YOU SAY THAT THEY'RE ACTING IN GOOD FAITH, BUT I ALSO KNOW THAT THEY HAVE OTHER PROPERTIES THAT WE'RE LOOKING AT THE SAME STAGNANT STATE OF WORK.

WHEN WE LOOK HOLISTICALLY AT ENTITIES WHO ARE NOT IN GOOD STANDING WITH OTHER PROJECTS, WHY IS IT THAT THEY ARE BEING GIVEN THE BENEFIT OF THE DOUBT HERE? AND I ALSO WANT TO JUST GO A STEP FURTHER AND SAY THAT I FEEL THAT, YOU KNOW, I DON'T WANT TO THROW TOO MANY ACCUSATIONS OUT THERE, BUT THIS IS ANOTHER EXAMPLE OF THE BIG GUYS

[00:55:09]

GETTING A LOT BIGGER PIECE OF THE PIE AND OPPORTUNITY.

AND WE'RE, IN MY OPINION, GIVING THEM A GREAT BENEFIT OF THE DOUBT WHEN A LOT OF THESE INCENTIVES ARE NOT AFFORDED TO THE SMALLER GUYS AND ON THE SMALLER GUYS SCALE, AND WE'VE SEEN IT SEVERAL TIMES, THEY CANNOT DELIVER IN THE CERTAIN TIME PERIODS THAT WE HAVE, OR THEY STRUGGLE WITH THEIR OWN FINANCING BECAUSE THEY DON'T HAVE THE STANDING.

SO I'M JUST WONDERING WHEN WE LOOK AT THESE GLOBAL CORPORATIONS LIKE THIS.

WHY WE'RE ALLOWING FOR THEM TO BUY UP LAND AROUND OUR CITY AND NOT HOLD THEM ACCOUNTABLE AND COME BACK TO THEM WITH OUR WALLETS OPEN? GOOD AFTERNOON, COMMITTEE MEMBERS, ROBIN BENTLEY WITH THE CITY MANAGER'S OFFICE.

IT IS A FAIR QUESTION, AND I KNOW THAT THIS COMPANY HAS BEEN IN THE NEWS A LOT RELATED TO DEALS THEY'VE DONE IN OTHER CITIES.

IN DALLAS, WE'VE DONE TWO WHERE COUNCIL HAS APPROVED TWO DEALS WITH THEM, UNIVERSITY HILLS, WHICH WE'RE BRINGING BACK TODAY, WHICH THEY DID DEFAULT ON, AND THE NEW PARK PROJECT, WHICH SO FAR THEY ARE STILL IN GOOD STANDING ON AND WE DON'T HAVE ANY ISSUES ON THAT ONE.

I KNOW THEY DID HAVE ISSUES ON A DEAL IN FORT WORTH AND A DEAL IN MANSFIELD.

IT IS HARD TO TELL IF THOSE WERE MARKET RELATED, IF THEY WERE DEAL SPECIFIC ON THIS ONE.

ALL OF THE CITY FUNDING IS TIED TO THE INFRASTRUCTURE.

AND SO WE DECIDED ON THIS DEAL.

IT IS GOOD FOR DALLAS TO GET THIS PROPERTY INTO ONE COMPANY WITH AN EFFORT TOWARD THE INFRASTRUCTURE CREATION.

WE NEED THAT DONE REGARDLESS.

AND SO WHETHER OR NOT THE DEVELOPER IS ABLE TO ACTUALLY DO THE DEAL, WE WILL WALK AWAY WITH CONSOLIDATED LAND OWNERSHIP AND INFRASTRUCTURE INSTALLED.

I HAD MY COKE AND ARTHUR IN MY OFFICE THIS MORNING PROMISING ME THIS DEAL WILL HAPPEN.

THEY ARE READY TO GO AS SOON AS WE GET DRAFTS FROM THE CITY ATTORNEY'S OFFICE.

THEY'RE READY TO CLOSE THE LAND PURCHASE.

THE FINANCING CLOSING AND OUR CLOSING WILL ALL HAPPEN ON THE SAME DAY.

SO I KNOW WE LAID OUT THREE DEADLINES, BUT PRACTICALLY IT'S ALL GOING TO HAPPEN TOGETHER AND THEY'RE READY TO GO.

SO I HAVE FAITH IN THIS ONE.

BUT LIKE KEVIN SAID, WE'RE THIS IS A SHORTER LEASH.

WE REALLY NEED THIS DEAL TO ACTUALLY MOVE FORWARD OR WE NEED TO BE DONE AND MOVE ON.

AND I THINK THE DEVELOPER IS VERY CLEAR ON THAT.

AND ARTHUR IS HERE IF YOU WANT TO HEAR IT STRAIGHT FROM HIM.

BUT WE WANT THIS DEAL TO HAPPEN.

IT'S IMPORTANT FOR SOUTHERN DALLAS AND THE INFRASTRUCTURE HAS TO HAPPEN.

AND THAT'S WHERE OUR MONEY WOULD GO.

AND AGAIN, WE DON'T PAY A DIME UNTIL THE END.

SO THERE'S REALLY NO RISK TO THE CITY EXCEPT FOR THE WATER LINE.

THANK YOU. AND TIME AND TIME AND TIME AND TIME MATTERS.

SO THAT'S WHERE I'M REALLY WANTING TO FOCUS.

I'D LIKE I'D LIKE TO MAKE SURE THAT YOU KNOW, AS YOU MENTIONED, I GET THAT WE WOULD HAVE THE INFRASTRUCTURE DONE, THAT WE WOULD WE HAVE RECOURSE TO, TO SAVE THE CITY'S INVESTMENT. HOWEVER, DO WE HAVE THE ABILITY TO PUT IN HERE IF THIS IS THE ROUTE THAT'S BEING GOING THAT WE ARE CHOOSING TO GO DOWN, IN MY OPINION, IN A LEAP OF FAITH, AND THAT'S FINE.

IT'S A BENEFIT OF THE DOUBT, LEAP OF FAITH, BUT LET'S CALL IT WHAT IT IS.

IF THAT IS THE CASE, WE'RE DOING THIS BECAUSE THE BENEFIT OF DOUBT IS BEING GIVEN THAT THEY COULD DO IT ONLY NOT ONLY CHEAPER, BUT ALSO FASTER THAN DWU.

IS THERE ANYTHING IN HERE THAT SPECIFIES THERE WILL BE NO CHANGE ORDERS? BECAUSE THIS IS THIS IS PRETTY TEXTBOOK AND Y'ALL ARE GOING TO COME UP, COME BACK TO US A YEAR FROM NOW AND TELL US THAT MATERIALS HAVE GONE UP OR X, Y AND Z, AND THEN WE'RE GOING TO END UP PAYING IT ON THE BACK END, WHEN WE COULD HAVE PROBABLY KEPT IT WITH DWU AND HAD IT MATERIALIZE A LOT FASTER AND NOT PUT OUR EGGS IN THE BASKET OF AN ENTITY THAT HASN'T REALLY DELIVERED FOR US. IT'S A FAIR QUESTION AND IN FACT, IF YOU ASK HOQUE GLOBAL, THEY THINK THEIR ESTIMATE WAS 2.5 MILLION TO DELIVER THAT WASTEWATER INFRASTRUCTURE. AND DALLAS WATER UTILITIES DISAGREES.

AND THAT'S WHY DALLAS WATER UTILITIES IS ONLY WILLING TO CONTRIBUTE 1.75.

SO, IT'S WHATEVER IT TAKES FOR THEM TO DELIVER IT.

THEY'RE REQUIRED TO DELIVER IT PER OUR AMENDMENT.

WHATEVER IT COSTS THEM, THEY'RE ONLY GETTING 1.75 FROM US.

THEY'RE WILLING TO EAT ANY COST OVERRUNS.

AND SO WITH AMENDING THIS DEVELOPMENT AGREEMENT, CAN IT NOT BE LIKE EXPLICIT THAT WE WILL NOT EVEN OFFER CHANGE ORDERS? SURE. WE CAN ADD THAT, THAT ANY OVERAGES ARE AT THE DEVELOPER'S RISK.

I THINK EVERYONE UNDERSTANDS THAT.

BUT WE CAN MAKE THAT REALLY EXPLICIT.

PERFECT. AND WHEN YOU WERE MENTIONING THE OTHER PROJECTS, WERE YOU TALKING ABOUT THE PILGRIM PRIDE? NO, THAT'S ANOTHER DALLAS PROJECT.

WE'RE NOT AT THIS POINT.

THEY'VE NOT APPLIED FOR ANY INCENTIVES FOR THAT PROJECT.

SO I STILL THINK IT'S IMPORTANT TO LOOK AT THEIR PORTFOLIO AND SEE HOW PROACTIVE THEY ARE BEING, BECAUSE IF THEY'RE JUST SITTING ON LAND, THAT'S NOT A PARTNER THAT WE NEED TO BE INCENTIVIZING WITH FOR ECONOMIC DEVELOPMENT.

[01:00:01]

THANK YOU.

COUNCILWOMAN ARNOLD.

THANK YOU. THIS IS A VERY I WANT TO BE VERY CLEAR AND SUCCINCT IN MY STATEMENT, AND I SURELY HOPE THE CITY MANAGER'S LISTENING, AND I HOPE THE CITY COUNCIL MEMBERS ARE LISTENING.

BUT THIS IS A SITUATION THAT COUNCIL MEMBERS NEED TO STAY WOKE ON.

YOU NEED TO DO YOUR RESEARCH ON ALL OF THESE PROJECTS THAT WE HAVE VOTED ON WITH TAXPAYERS DOLLARS TO SUPPORT THESE ADVENTURES.

NOW YOU'RE CORRECT.

I HAVE SEEN THE HEADLINES.

I WAS ACTUALLY SHOCKED BY THE HEADLINES, ESPECIALLY THOSE I SAW COMING OUT OF FORT WORTH.

I'M LOOKING FOR HEADLINES TO COME OUT OF DALLAS.

THAT SPEAKS TO THE VOTE THAT WE MADE YEARS AGO.

HAVEN'T SEEN A THING.

WHAT I HAVE SEEN OVER THE YEARS IS THAT WE CONTINUE WITH THIS SAME BEHAVIOR, WHERE WE GIVE THESE DEVELOPERS AN OPPORTUNITY.

WE VOTE AROUND THE HORSESHOE.

WE VOTE ON A DEAL.

WE TALK ABOUT A TARGET DATE.

THEN THEY GET THESE OPPORTUNITIES TO DEFER.

AND EVERY TIME THEY DEFER, IT COSTS US MORE IN TERMS OF TAXPAYERS DOLLARS.

BECAUSE AS SOON AS WE VOTE ON $1 MILLION SUBSIDY, $1 MILLION IS NOT WORTH $1 MILLION TWO DAYS LATER.

SO WHAT WE HAVE NOW WITH THIS DEVELOPER AND I DON'T HAVE TO GO INTO ALL OF IT.

COUNCIL MEMBER KIND OF WENT THROUGH SOME OF IT.

BUT WHAT I DO KNOW IS THIS.

I HAD AN OPPORTUNITY TO CELEBRATE UNIVERSITY HILLS.

NOTHING HAS HAPPENED.

WE NOW HAVE AND I WANT YOU TO EXPLAIN THIS TO ME.

YOU TALKED ABOUT THE MMD.

WAS THE MMD THAT YOU ALL TALKED ABOUT, WAS THIS THE ONE THAT WAS RECENTLY VOTED ON BY THOSE CONSTITUENTS WHERE THEY VOTED ON A DIRECTOR FOR THE MMD? OR DO YOU WHO HANDLES THAT, THAT EDUCATION TO THE COMMUNITY? OKAY. SO, AN MMD IS CREATED AT THE STATE LEVEL, NOT BY THE CITY.

THE CITY IS NOT EVEN A PARTY TO THE CREATION OF IT.

BUT YES, THE UNIVERSITY HILLS MMD DID HAVE AN ELECTION ON NOVEMBER 5TH, AND THEY DID APPROVE A PERMANENT BOARD OF DIRECTORS.

ALL RIGHT. I SAW THAT BECAUSE YOU HAD SOME CONSTITUENTS WHO CONTACTED ME ABOUT IT BECAUSE THEY WERE CONFUSED.

SO, WHAT IS THE MMD MEAN FOR THOSE CONSTITUENTS? WELL, AN MMD IS ESSENTIALLY AN ENTITY THAT CAN ISSUE BONDS.

AND SO I IMAGINE THAT'S HOW THIS DEVELOPER WILL BE USING IT.

BUT I WOULD DEFER TO OUR DEVELOPER REPRESENTATIVE TO ANSWER THAT QUESTION.

ALL RIGHT. SO, NO NEED TO DO THAT.

I BELIEVE THAT AT ONE POINT.

AND I AND I'M GOING TO CONTINUE TO RESEARCH THIS BECAUSE I DO SPEAK ON THAT AS I'M ASKED TO SPEAK, BECAUSE THERE IS SOME CONFUSION AROUND HOW THOSE MONIES ARE GOING TO BE COLLECTED. WILL THE FOLKS IN THAT MMD SECTION DISTRICT BE TAXED? AND SO THEY NEED TO UNDERSTAND THAT.

SO, IF THAT IS ALREADY IN MOTION, AND I DON'T KNOW THAT IT IS BECAUSE I HAVEN'T GOTTEN TO THE RIGHT ANSWER, BUT I THINK IT'S UNFAIR TO A COMMUNITY TO TALK ABOUT A TAXING ENTITY THAT MAY TRIGGER AT SOME POINT, WE DON'T KNOW.

AND THE DEVELOPER IS STILL NOT DELIVERING.

NOW, THE NEXT QUESTION YOU MENTIONED HERE ABOUT THE 50 SITES, WHERE ARE THOSE 50 SITES LOCATED THAT THEY'RE RESIDENTIAL, THEY'RE REQUIRED TO SELL? IN PHASE ONE.

SO THESE ARE INDIVIDUAL SINGLE FAMILY LOTS THAT HAVE BEEN PRE SOLD, PLATTED AND PRE-SOLD TO D.R.

HORTON LENNAR HOMES FOR CONSTRUCTION OF SINGLE FAMILY HOMES.

SO WOULD THESE IF YOU HAVE A MAP, I JUST WANT TO BE CLEAR.

ARE THESE THE PROPERTIES THAT WERE ONCE OWNED BEHIND SOUTH OAK CLIFF OFF SOUTH MARCELLUS AND 35 BECAUSE THAT WAS THE THAT WAS INITIALLY OWNED BY MR. HOGUE GLOBAL.

AND THOSE WILL BE FOR RESIDENTIAL.

NO. THESE ARE ALL PART OF THE PHASE ONE AREA SOUTH OF UNIVERSITY OF NORTH TEXAS AT DALLAS.

JUST CHECKING BECAUSE I'M GOING TO DOUBLE CHECK ON THAT, BECAUSE ON THAT DEAL WE WERE BASICALLY SHAFTED AS A COMMUNITY.

AND I'M PUTTING THAT ON THE RECORD.

NO COMMUNICATION WHEN YOU WALKED OFF, DIDN'T KNOW WHAT HAPPENED.

THAT WAS THE DISRESPECT TO DISTRICT FOUR, SOUTH MARCELLUS BEHIND SOUTH OAK CLIFF HIGH SCHOOL.

NOW AS WE TALK ABOUT MOVING ON, I WOULD STRONGLY SUGGEST THAT THIS COUNCIL DO DUE DILIGENCE AND THAT WE CONTINUE TO PUSH FOR A CHANGE AND AMENDMENT IN HOW WE DO BUSINESS AS A CITY IN LIGHT OF WHAT WE HAVE JUST EXPERIENCED IN THIS LAST ELECTION. TAXPAYERS ARE NOW ASKING US TO DO THE RIGHT THING WITH THEIR TAXPAYERS DOLLARS.

I HEAR YOU NOW SAYING WE'RE GOING TO GIVE THEM ANOTHER CHANCE, AND WE'RE GOING TO DO ONE, TWO AND THREE.

WHEN YOU DO YOUR RESEARCH, COUNCIL MEMBERS AND TAXPAYERS WHO ARE LISTENING, WE'VE GIVEN THEM ENOUGH TIME TO PROVE THEMSELVES WORTHY OF RECEIVING AND BUILDING ON TAXPAYERS

[01:05:05]

DOLLARS. SO, IF WE DON'T DO WHAT WE NEED TO DO, IT'S GOING TO BE CALLED APRIL FOOL'S AND IT'S APRIL FOOL'S ON THE TAXPAYERS WHO HAVE GIVEN US THE CHARGE OF TAKING CARE OF BUSINESS.

THIS PARTICULAR DEVELOPER RIGHT HERE AND THIS DEVELOPMENT IS VERY PAINFUL FOR ME BECAUSE OF THE FACT THAT IT IS AROUND UNT.

THAT WAS SUPPOSED TO BE SUCH A GREAT HOPE FOR THIS CITY AND THE SOUTHERN SECTOR.

THEY HAVE LET US DOWN, AND I'M SAYING THAT I'M GOING TO CONTINUE TO SAY IT AS I AM ASKED TO SPEAK ON IT, AS FOLKS ASK ME THE QUESTIONS, BECAUSE WHEN YOU DO YOUR RESEARCH, YOU'RE GOING TO FIND THAT THERE ARE SEVERAL OTHER PROJECTS THAT THAT THEY'RE CONNECTED TO, EVEN IF THEY'RE NOT FUNDED BY THE CITY.

THERE'S ONE RIGHT DOWNTOWN.

I BELIEVE IT'S PART HE WAS PARTNERED TO BUY PART OF THIS BANK OF AMERICA BUILDING.

SO IN CLOSING, WE MUST CHANGE OUR POLICIES.

SO IF THESE FOLKS DON'T HAVE MONEY WHEN THEY COME TO THE TABLE AND THEY CAN'T PROVE THEMSELVES WORTHY OF THE TAXPAYERS DOLLARS, THEY DON'T NEED TO BE GIVEN AN OPPORTUNITY TO KEEP PLAYING WITH US.

BECAUSE I PROMISE YOU, THESE ARE GOING TO BE SOME OF THE EXAMPLES THAT PROPOSITION S WILL LEAD TO, BECAUSE WE'RE NOT DOING THE RIGHT THING WITH TAXPAYERS DOLLARS.

CHAIRMAN, I'M GOING TO CLOSE ON THAT.

I APPLAUDED YOU ON THAT.

I KNOW THAT UNT IS IN DISTRICT EIGHT, BUT UNT WAS PUT HERE IN THIS CITY AS A LIGHT AND A BEACON IN THE SOUTHERN SECTOR.

YOU'VE GIVEN HIM PROBABLY WE'VE GIVEN HIM MORE CHANCES THAN WE HAVE WITH SUPPORTING ROBERT PETRIE.

AND I KNOW HE'S FOUGHT FOR YEARS FOR EQUITY.

AND WE TREATED HIM LESS THAN.

AND SO WE'RE GIVING THIS OPPORTUNITY TO JUST KEEP PLAYING AROUND WITH TAXPAYERS DOLLARS.

AND IT IS NOT A GOOD REPORT TO GET TO TODAY.

THANK YOU SO VERY MUCH FOR LISTENING, BUT WE MUST STAY WOKE AND WE MUST STAY VIGILANT ON THIS PARTICULAR PROJECT.

AND THANK YOU COUNCILWOMAN.

I DIDN'T HEAR THE QUESTION THAT HAD BEEN ADDRESSED ABOUT MY COLLEAGUES.

AND THESE ARE THE SAME QUESTIONS I'VE BEEN ADDRESSED FOR THE LAST THREE AND A HALF YEARS.

SO NUMBER ONE ON DWU WE HAVE STARTED A INFRASTRUCTURE WHICH NEEDS TO BE COMPLETED.

I DID ASK YOU TO GET WITH ATTORNEYS TO MAKE SURE THAT IF THEY START INFRASTRUCTURE, THEY GOT COMPLETED.

WE'RE NOT GOING TO DO IT. SO WE'RE STILL WAITING ON LEGAL FOR AN ATTORNEY.

WITH THAT THEY ALSO GOT A CLOSE ON THE PROPERTY AND ASKED FOR THE INFORMATION THERE.

I CAN'T HELP TO HAVE FAITH IN THE PROJECT, BUT I GOT CONCERNED.

I BEEN HAD A CONCERN FROM DAY ONE, SO I'D BEEN ON THE RECORD.

SO IT DOESN'T HIDE UNDER THE SHEET RIGHT THERE.

BUT ALSO, I DO KNOW THAT WE ARE THE POLICY MAKERS.

YOU ARE THE ADMINISTRATION.

YOU BRING THE DEAL TO US, WE ACCEPT IT OR WE DENY IT.

SO I'M HOLDING YOU RESPONSIBILITY, YOU AND THE ATTORNEYS RESPONSIBILITY TO SAY WHAT YOU'RE SAYING TODAY.

THIS IS THE TERM OF THE CONTRACT.

THIS IS HOW YOU'RE GOING TO MONITOR THE CONTRACT.

IF THE CONTRACT IS NOT FOLLOWED THROUGH, THE CONTRACT WILL BE DEFAULT.

WE TURN IT UP AND WE GO AND TRY TO FIND SOMEONE ELSE.

I DID MEET WITH YOU THIS WEEK OR LAST WEEK ABOUT THIS PROJECT.

YOU KNOW MY CONCERN. I DO HAVE CONCERN ON THIS PROJECT.

AND MY COLLEAGUES HAD CONCERN THE PROJECT.

BUT I WANT EVERYTHING IN WRITING.

I WANT TO MAKE SURE THAT ATTORNEYS GET TO US, THAT IF THEY DON'T FINISH THEIR PROJECT, THOSE THREE THINGS, IF THEY DON'T FINISH, I WANT IT IN WRITING.

OKAY. BEFORE WE VOTE ON IT.

UNDERSTOOD. THANK YOU.

NEXT ITEM. OKAY, CHAIRMAN.

NEXT ITEM IS ITEM E.

SO THIS IS JUST A HEADS UP ABOUT AN UPCOMING AGENDA ITEM THAT WILL BE ON DECEMBER 11TH.

AGENDA. THIS IS OFFICE OF PROCUREMENT SERVICES THAT HAS HANDLED A REQUEST FOR COMPETITIVE SEALED PROPOSALS PROCESS ON OUR BEHALF.

AND SO, THIS IS FOR OUR UNDERWRITING SERVICES.

GROW AMERICA IS THE HAS BEEN IDENTIFIED THROUGH THIS PROCESS AS THE MOST ADVANTAGEOUS PROPOSER.

THEY ARE OUR INCUMBENT, THE EXISTING UNDERWRITING SERVICE PROVIDER.

THAT AND HAS BEEN SINCE 2018.

IN OUR OPINION, THEY PROVIDE GOOD SERVICE.

WE'VE BEEN PAYING ABOUT 11,000 PER UNDERWRITE SINCE 2018 WITH NO ANNUAL INCREASES.

THIS NEW CONTRACT PROPOSES A LITTLE UNDER 15,000 PER UNDERWRITE.

MOST OF THAT COST WILL BE PASSED ON TO THE APPLICANT OF REAL ESTATE DEVELOPMENT INCENTIVE APPLICANTS.

AND SO, WE ANTICIPATE RECOVERING A LOT OF THE, THE COST OF THIS CONTRACT THROUGH OUR APPLICATION PROCESS.

[01:10:09]

SO THIS IS JUST AN FYI.

IT'S A PROCUREMENT ITEM.

I DON'T SEE ANY HANDS.

SO LET'S GO TO THE NEXT ITEM.

I'LL DO ITEM F.

OKAY. GO AHEAD. ITEM F IS GOOD NEWS.

SO YOU'LL REMEMBER 2 OR 3 YEARS AGO, WE WERE ACCREDITED FOR THE FIRST TIME THROUGH OUR NATIONAL ECONOMIC DEVELOPMENT ORGANIZATION AS ONE OF, I THINK, ONLY 68 ENTITIES.

83 NOW. OKAY.

IT'S GROWN A LITTLE BIT, BUT REGARDLESS, GLOBALLY, 83 AGENCIES HAVE BEEN ACCREDITED AND NOW DALLAS HAS BEEN REACCREDITED FOR THE SECOND TIME.

SO CONGRATULATIONS TO KEVIN AND THE TEAM.

AND WE JUST WANTED TO SHARE THE GOOD NEWS WITH THE COMMITTEE.

OKAY. GOOD NEWS.

SO NEXT ITEM G.

NEXT ITEM IS ANDREA OR EMILY.

G. I KNOW I WAS.

I HAVE SOME QUESTIONS. ALL RIGHT.

WELL THEY'RE WALKING UP HERE I'LL JUST BRIEF AT G.

THERE WERE SOME BOARD OF ADJUSTMENT RULES APPROVED BY THE BOARD.

THERE WAS A RED LINE THAT WAS SUPPOSED TO BE ATTACHED TO THIS MEMO.

THANK YOU, COUNCIL MEMBER RIDLEY FOR CATCHING IT WAS NOT, SO IT WAS DISTRIBUTED TO ALL OF YOU BY EMAIL.

THEY'RE VERY MINOR CHANGES, BUT THEY DO REQUIRE COUNCIL APPROVAL.

AND SO WE'RE BRINGING THEM TO THE COMMITTEE TO PUBLICLY VET THOSE BEFORE THEY GO TO COUNCIL ON THE 11TH.

AND ANDREA IS HERE IF YOU HAVE.

OKAY. LET ME GET WITH CHAIRMAN RIDLEY, BECAUSE THERE WERE SOME RED LINES I DIDN'T SEE.

SO REALLY, YOU WANT TO GO AHEAD? YES. I NOTICED THAT SECTION 11 M, ALTHOUGH PRESENT IN THE EXISTING DRAFT, HAS BEEN RELETTERED AND RELOCATED WITHIN THE NEW AMENDED VERSION.

AND IT ADDRESSES THE PROCEDURE FOR THE BOARD TO DECLARE A NONCONFORMING, USE NONCONFORMING AND SET A DEADLINE FOR ITS TERMINATION.

AND I'M CONCERNED ABOUT MAKING THAT A PART OF THE NEW AMENDMENTS WHILE WE'RE STILL CONSIDERING HOW TO RESPOND TO SB 929.

THAT REQUIRES US TO COMPENSATE ANY ENTITY THAT OWNS A NONCONFORMING USE.

THANK YOU SO MUCH.

CHAIR RIDLEY, FOR THE FOR THIS POINT, YES, WE DID TALK INTERNALLY.

I THINK WE ALL AGREED THAT IF THERE ARE ANY CHANGES WITH OUR CODE AMENDMENT, WE'LL AUTOMATICALLY COME BACK AND AMEND THE RULES OF THE BOARD OF ADJUSTMENT, BECAUSE SINCE WE DIDN'T HAVE A PER SE CODE AMENDMENT TO COMPLY WITH SB 929, WE COULDN'T AMEND THE RULES AHEAD OF THE CODE AMENDMENT.

SO WHATEVER THE COUNCIL OUTCOME WOULD BE FOR SB 929, WE WILL COME BACK AND AMEND THE RULES OF BDA TO MAKE SURE THAT THEY COMPLY, AND THEY ARE BOTH ON THE SAME AMENDMENT.

WHEN WILL THE CITY'S RESPONSE TO 929 BE BROUGHT BEFORE THE COUNCIL.

I THINK WE HAVE IT TENTATIVELY.

CAN I ANSWER THAT FIRST REAL QUICK BEFORE WE, LET ME GET INTO THIS.

OKAY. WE DO HAVE A ITEM THAT THAT RELATES TO DISTRICT EIGHT AND WHICH I'M GOING TO DEFER IT BECAUSE 929 IS A LEGAL QUESTION.

WE NEED TO GET BRIEFED ON THIS ITEM FIRST BEFORE WE MAKE ANY RULING GOING FORWARD.

THAT BRIEFING THAT THE ATTORNEY ON ME WITH ATTORNEY TODAY AT AROUND 330 OR 3:00 TO GIVE US ADVICE, WHAT WE SHOULD DO, WE SHOULD NOT PUSH SOMETHING BEFORE WE HEAR IT, SB 929.

AND THERE IS A THERE'S A FULL COUNCIL BRIEFING ON 929 IN JANUARY.

IN JANUARY, BUT I WANT TO DO NOTHING NOW BEFORE WE GET THE BRIEFING.

SO THIS ITEM IS NOT GOING TO GO TO WILL NOT GO TO THIS.

IT WILL BE IT WILL BE DEFERRED. OKAY.

IT WILL BE DEFERRED TO FEBRUARY.

OKAY. I'M JUST CONCERNED ABOUT US BEING CONSISTENT WITH 929.

I GOT YOU. THANK YOU, CHAIR.

THANK YOU. WE'LL NOTE THAT.

OKAY. ITEM H.

ITEM H IS ALSO GOOD NEWS.

SO OUR DATA TEAM AND I BELIEVE WE'VE GOT A COUPLE OF MEMBERS OF THAT TEAM HERE.

WE'RE AUDITING OUR COMMERCIAL PERMITTING DASHBOARD.

AND THEY FOUND THAT SOME STAFF MEMBERS WERE ENTERING COMMERCIAL PERMITS IN THE SYSTEM WITH A PREFIX COM, AND SOME WERE ENTERING COMMERCIAL PERMITS WITH THE PREFIX C, O, M, M.

AND OUR NEW SYSTEM THAT WILL LAUNCH IN 2025, THAT WILL BE A DROP DOWN MENU AND PEOPLE WON'T HAVE THE FREEDOM TO TYPE IN.

BUT AT THIS POINT THEY'RE TYPING IN AND THEY WERE TYPING TWO DIFFERENT WAYS.

AND SO OUR COMMERCIAL PERMITTING DASHBOARD WAS ONLY CAPTURING PART OF THE COMMERCIAL PERMITS.

NOW THAT THEY'VE EXPANDED IT AND CLEANED IT UP AND PULLED IN ALL THE COMMERCIAL PERMITS, IT'S ACTUALLY REALLY GOOD NEWS.

ALL OF THE DATES WENT DOWN, ALL OF OUR TURNAROUND TIMES WENT DOWN.

[01:15:04]

OUR MEDIAN APPROVAL FOR NEW COMMERCIAL PERMITS DROPPED FROM 311 DAYS.

I WANT TO SAY TO SOMETHING LIKE 200 AND 215.

AND EVERY MONTH, ESSENTIALLY SINCE THE SUMMER, WE HAVE BEEN IN THE UNDER 300 RANGE.

SO IT'S ALL REALLY GOOD NEWS.

IT'S JUST WE CAUGHT A DATA ISSUE.

AND THANK YOU TO THE DATA TEAM FOR CATCHING IT AND CLEANING IT UP IN A VERY SHORT TURNAROUND TIME, BUT WE WANTED TO BE TRANSPARENT AND LET YOU ALL KNOW.

THAT'S WHY THE NUMBERS SUDDENLY LOOK MUCH BETTER IS BECAUSE THEY CAUGHT THIS MISSING DATA AND FOLDED IT IN.

AND THAT WENT PUBLIC YESTERDAY.

SO THE PUBLIC DASHBOARD NOW HAS ALL OF THE UPDATED DATA AS WELL.

CHAIRMAN RIDLEY. THANK YOU, MR. CHAIR. SO THIS IS GOOD NEWS.

ANYTIME THE PROCESSING TIME PERIOD DECLINES.

AND I KNOW THAT YOU'RE FOCUSING ON THE COMMERCIAL PERMITS, BUT THE LAST FEW MONTHS YOU MENTIONED HAVE BEEN DECLINING.

AND I'M CURIOUS, IS THAT BECAUSE OF REDUCED PROCESSING TIME ON A PERMIT BY PERMIT BASIS, OR IS IT A RESULT OF FEWER PERMITS TO PROCESS? I THINK IT'S A RESULT OF A FEW THINGS.

I THINK IT'S STREAMLINING OF EFFORTS BY THE TEAM.

I THINK IT'S THE NEW PREDEVELOPMENT PROCESS.

SO FOLKS ARE COMING IN AND GETTING BETTER CUSTOMER SERVICE ON THE FRONT END.

SO THEY'RE SUBMITTING A BETTER PRODUCT, REQUIRING FEWER TURNS.

AND THEN THE EFFORT TO CLOSE OUT ALL OF THE OLD DEAD PERMITS, I THINK, IS ALSO PROBABLY GOING TO HELP IN THE LONG TERM.

EVERY ONCE IN A WHILE, YOU'LL SEE A MONTH WHERE THE APPROVAL MEDIAN WILL JUMP TO 8 OR 900 DAYS.

AND THAT'S BECAUSE THEY APPROVED ONE PERMIT THAT'S BEEN SITTING THERE FOR 2 OR 3 YEARS.

IF WE GET RID OF THOSE OUT OF THE SYSTEM, WE'LL STOP SEEING THOSE DATA SPIKES AND WE'LL START SEEING A MORE REALISTIC TURNAROUND TIME.

SO ALL OF THE EFFORTS COMBINED, IF YOU LOOK AT THE LAST SIX MONTHS, EVERYTHING IS JUST REALLY IMPROVING IN THE RIGHT DIRECTION.

THAT'S PROPS TO EMILY AND THE TEAM.

SO HAVE YOU FINISHED CLEARING OUT THE STALE PERMIT APPLICATIONS.

NOT QUITE YET. I THINK THERE ARE 70 OR 80% FINISHED.

SHOULD BE DONE BY THE END OF THIS YEAR.

GOOD. THANK YOU, MR. CHAIR. CHAIRMAN WEST.

THANK YOU, CHAIRMAN.

I THINK THAT ANSWERED MOST OF MY QUESTIONS.

I DIDN'T HEAR YOU SAY THE ACTUAL AMOUNT OF OLD PERMITS THAT WERE CANCELED OR MOVED OUT.

WHAT WAS THAT NUMBER? IT'S CLOSE TO 10,000.

AND WE HAVE BEEN CLOSING THAT.

MOST OF THEM, YEAH, IT IS ALMOST 10,000.

THERE ARE 10,000 OLD PERMITS IN THERE THAT ARE DRAGGING OUR NUMBER DOWN.

THAT IS CORRECT.

YES. OKAY.

ALL RIGHT. NOT ANYMORE.

WE'RE ALMOST DONE WITH THEM.

BUT YES, THERE HAVE BEEN.

YEAH, THAT'S GREAT NEWS.

AND THEN SO OUR, OUR AVERAGE MEDIAN DAYS FOR THE APPROVAL OF A NEW COMMERCIAL PERMIT IS GOING TO GO DOWN TO 215 DAYS.

DO WE KNOW HOW WE COMPARE TO SISTER CITIES ON THE 215 DAYS.

YEAH, ACTUALLY.

IS SAM HERE? FIRST OF ALL, LET ME JUST CONGRATULATE SAM ISKANDER, WHO OVER THE THANKSGIVING HOLIDAY FINISHED PASSING ALL OF HIS BUILDING OFFICIAL CERTIFICATION EXAMS AND IS NOW OFFICIALLY THE CITY'S BUILDING OFFICIAL.

CONGRATULATIONS. INTERIM THIS WHOLE TIME.

ALL RIGHT. YES.

THANK YOU. GOOD NEWS.

HE PASSED THREE TESTS WITHIN FIVE MONTHS.

THAT'S A VERY SHORT PERIOD OF TIME.

VERY QUICK. HE'S BEEN WORKING HARD.

SAM'S ALSO BEEN LEADING THE EFFORT TO CLOSE OUT ALL THE OLD INACTIVE AND DEAD PERMITS.

SO HE'S BEEN WORKING HARD OVER TIME FOR US.

BUT, SAM, COULD YOU RESPOND TO THAT LAST QUESTION? I DON'T KNOW IF YOU CAUGHT IT. YES.

COULD YOU PLEASE REPEAT THE QUESTION AGAIN? I'M SORRY. HOW DOES. SO YOUR DATE, IF ONCE WE GET EVERYTHING CLEARED OUT, ACCORDING TO THIS MEMO, ALL THESE 10,000 OLD PERMITS, THE APPROVAL OF A NEW COMMERCIAL PERMIT SHOULD DECREASE FROM 302 DAYS TO 215 DAYS AS OUR MEDIAN TIME FRAME.

HOW DOES THAT 215 DAY TIME FRAME PERIOD COMPARED TO SISTER CITIES LIKE HOUSTON, AUSTIN, YOU KNOW, ATLANTA, KANSAS CITY, WHAT HAVE YOU. OKAY. THANK YOU FOR THE QUESTION.

YES. SO THERE WAS ANOTHER CITY THAT REACHED OUT TO US WORKING ON A PROJECT OF TRYING TO FIGURE OUT WHERE EVERYBODY STANDS FROM THE DATE THAT A PROJECT IS SUBMITTED UNTIL THE DATE THE PROJECT IS APPROVED.

AND I'M WORKING WITH THEM TO TRY TO GET THAT DATA AS WELL, BECAUSE I THOUGHT THAT WAS VERY IMPORTANT TO US.

BUT IN GENERAL, WHAT I'M BEING TOLD IS AROUND 250 BUSINESS DAYS IS ABOUT AN AVERAGE, A GOOD AVERAGE TO BE AROUND.

AND THE REASON BEING IS BECAUSE MOST CITIES A PERMIT IS GOOD FOR 180 DAYS, AND IF A PERMIT IS NOT ISSUED WITHIN 180 DAYS, THEY CAN REQUEST AN EXTENSION FOR ANOTHER 180 DAYS.

SO ON AVERAGE, I MEAN, MOST PROJECTS ARE NOT GOING TO TAKE THAT LONG.

BUT ON AVERAGE, WHEN YOU TAKE THE ONES THAT REQUEST EXTENSIONS VERSUS THE ONES THAT DON'T ARE, WHAT I'M HEARING IS AROUND 250 IS A GOOD, REASONABLE PLACE TO

[01:20:07]

BE, BUT I'M STILL TRYING TO GET THOSE NUMBERS AND COMPARE WITH OTHER CITIES.

BUT RIGHT NOW I ONLY HAVE THAT ONE CITY.

HOW DO YOU.

THIS IS A LITTLE BIT MORE OF A THEORETICAL QUESTION, BUT YOU CAN MAKE THE NUMBERS LOOK REALLY GREAT IF, IF OUR, IF WE HAD SUPER INTENSE APPLICATION PROCESS TO SUBMIT THE COMMERCIAL PERMIT TO BEGIN WITH.

IF THERE WAS, IF IT WAS SO INTENSE THAT THEY WOULD NEVER YOU COULDN'T MAKE A MISTAKE BY SUBMITTING IT RIGHT.

BUT THEN IT GETS TO THE POINT WHERE IT'S JUST NOT EVEN USER FRIENDLY IF IT BECOMES THAT COMPLICATED TO SUBMIT.

HOW DO YOU STRIKE A BALANCE BETWEEN TRYING TO ENSURE WE GET THE BEST APPLICATIONS POSSIBLE BEFORE WE REVIEW THEM BUT ALSO MAKING IT USER FRIENDLY ENOUGH TO WHERE THERE IS GOING TO BE SOME PUNTING BACK AND FORTH OF THE PERMIT EARLY ON.

DOES THAT MAKE SENSE? THAT'S A HARD QUESTION.

SO JUST TO GENERALLY RESPOND TO THAT, I THINK IT IS A CULTURE AND ATTITUDE CHANGE IN THE DEPARTMENT.

AND EMILY, EVERYONE AT THIS TABLE HAS HEARD ME SAY THIS, THAT PLANNING AND DEVELOPMENT IS AN ECONOMIC DEVELOPMENT DEPARTMENT.

THEY ARE NOT HERE TO BE CODE COMPLIANCE.

THEY ARE NOT HERE TO BE A GOTCHA DEPARTMENT OR TO SAY NO.

THEY ARE HERE TO HELP.

TO HELP. THEY ARE THE EXPERTS ON THE CODE, AND THEY'RE HERE TO HELP DEVELOPERS GET TO A PERMIT.

AND SO THAT'S LITTLE CHANGES.

LIKE INSTEAD OF JUST HITTING DENY PICKING UP THE PHONE AND CALLING AND SAYING, HEY, HERE'S WHAT I NOTICED.

CAN YOU MAKE A QUICK CORRECTION? IT'S A CULTURAL CHANGE, BUT THIS LEADERSHIP TEAM IS ON BOARD.

AND SO I THINK YOU'LL SEE MORE AND MORE, INSTEAD OF JUST A DENIAL, YOU'LL GET A PHONE CALL AND AN INQUIRY AND SOME HELP.

I'M GLAD TO HEAR THAT.

I'VE BEEN SITTING ON THIS COMMITTEE, I THINK, FOR FIVE YEARS NOW, AND WITH SOME OF MY COLLEAGUES UP HERE, AND I CAN TELL, LIKE THE TONE OF OUR INTERACTION WITH PERMITTING HAS CHANGED BECAUSE IT'S GOTTEN BETTER.

AND SO I THINK THAT'S THANKS TO THE LEADERSHIP.

I KNOW WE'RE STILL NOT PERFECT, BUT I FEEL BETTER ABOUT IT.

AND I DO FEEL LIKE STARTING FROM.

YES. AND WE'RE GOING TO KEEP WORKING TOWARDS YES IS WAY BETTER THAN I REMEMBER HAVING THAT CONVERSATION.

I'M NOT GOING TO NAME ANYBODY.

BUT WHERE WE WERE LIKE, YOU KNOW, IT'S YOU'RE STARTING FROM A NO.

AND WE WANT YOU TO START FROM YES.

HOW DO WE GET YOU TO GUESS? AND SO I FEEL LIKE THAT'S THE IMPRESSION I GET FROM THIS TABLE TODAY.

SO I'M HAPPY TO SAY THAT.

THANK YOU. YEAH. I JUST WANT TO SAY ONE THING.

WHAT YOU JUST SAID ON PERMITS.

YOU KNOW, I'M GOING TO DATE MY AGE.

SIX YEARS AGO, WE DIDN'T HAVE THIS PROBLEM.

THE REASON WHY THE PROCESS.

YOU HAD AN ARCHITECT WHO WAS IN CONTROL.

THEN ALL OF A SUDDEN, EVERYBODY WANTED TO GO TO PROJECT MANAGER.

YOU KNOW, WHEN ARCHITECT WENT CONTROL, HE HIRED A CONTRACTOR, THE CONTRACTOR RESPONSIBILITY.

HE HAD ALL THE MECHANICAL, THE ELECTRIC OR THE PLUMBING AND THE MECHANICAL ENGINEERS THEY HAD, THEY PULLED THEIR PERMIT BECAUSE THEY HAD A MASTER.

THEN RIGHT NOW WE START WITH PROJECT MANAGER.

WE GOT A WHOLE LOT OF PROJECT MANAGERS DO NOT NEED TO BE A PROJECT MANAGER IN TRYING TO PULL A PERMIT.

AND SO THEY ASKED A PROJECT MANAGER, GO PULL A PERMIT.

IT SHOULD BE THE ELECTRIC MASTER WITH ELECTRIC MASTER.

IT SHOULD BE A PLUMBER MASTER A MECHANICAL.

SO YOU GOT ALL THESE DIFFERENT ENTITIES GOING PUT A PERMIT.

AND I TALKED TO A WHOLE LOT OF CONTRACTOR, A WHOLE LOT OF OWNERS WHO ARE TRYING TO BUILD SOMETHING.

THEY CALL ME. I SAID, DON'T CALL ME, GO CALL VERNON, BECAUSE, WELL, I HIRED THIS CONSULTANT TO DO THIS.

AND THE CONSULTANT DON'T KNOW NOTHING ABOUT MECHANICAL.

HE KNOW NOTHING ABOUT CONSTRUCTION, BUT HE GO TRY TO PERMIT.

THEN THEY GET DOWN THERE, THEN THEY TALK TO SOMEONE ON JEFFERSON.

THEN YOU GOT ALL THE PROBLEMS THAT GO AROUND.

SO THEREFORE, IF WE SEE IT TAKE 180 DAYS, THAT'S PERFECT.

WE'RE NOT IN A PERFECT SOCIETY.

SO YOU JUST TAKE 20 DAYS ON EARTH.

SO YOU LOOK AT 200, 220 DAYS BECAUSE OF THE STRUCTURE.

SO I THINK WE NEED TO EDUCATE THE OWNERS, THE DEVELOPER WHO GOT THE MONEY.

YOU ARE PAYING THESE PEOPLE TO DO A JOB, AND MOST OF THE PEOPLE YOU'RE PAYING TO DO THE JOB CAN'T DO THE JOB.

THEY'RE NOT QUALIFIED TO DO THE JOB.

AND WE NEED TO TELL THEM, HEY, YOU GOT A PERSON DOWN HERE TRYING TO GET A PERMIT.

THEY DON'T EVEN KNOW WHAT HE'S DOING.

AND YOU CALL US THE PROBLEM.

AND WE HEAR TAKING THE PHONE CALL, AND WE ARE TRYING TO BE A PROJECT MANAGER OR ARCHITECT AND TRYING TO PUSH YOUR PERMIT THROUGH.

AND WE KNOW OVER THERE ON JEFFERSON WHERE THEY TURN ALL THEIR PAPERWORK IN, THEY HAVEN'T PAID THE BILL.

AND WE GET CAUGHT IN THE MIDDLE OF THIS, AND I'M SICK AND TIRED OF GETTING CAUGHT IN THE MIDDLE, BECAUSE SOMETIMES THOSE OWNERS IS HIRING THE WRONG PEOPLE WHO ARE NOT QUALIFIED TO GO DOWN ON JEFFERSON AND PUT A PERMIT.

SO I GOT MY $0.02 OUT.

CHAIRMAN RIDLEY.

I THINK STEWART WAS NEXT.

CHAIRWOMAN STEWART.

[01:25:02]

I JUST HAVE TO STOP AND GO BACK A PARAGRAPH OR TWO AND SAY THE MOST AMAZING THING I'VE HEARD IN THE LONGEST TIME.

ASSISTANT CITY MANAGER BENTLEY, AS YOU SAID, WE MADE A SMALL CHANGE.

I THINK IT'S A HUGE CHANGE TO GO FROM DENYING SOMETHING TO PICKING UP THE PHONE.

THAT PHRASE, PICKING UP THE PHONE.

I MEAN, IN THIS IN TODAY'S WORLD, NO ONE DOES THAT.

WE ONLY EMAIL AND TEXT.

BUT TO HAVE A CONVERSATION WITH SOMEBODY AND TO SEE WHAT WE CAN DO TO HELP.

REALLY? THAT'S.

YOU'VE MADE MY DAY, MY YEAR.

THANK YOU FOR THAT SMALL CHANGE THAT REALLY IS DRAMATICALLY HUGE IN TERMS OF ITS IMPACT, I THINK, ON EVERYBODY IN YOUR DEPARTMENT, BUT THE PEOPLE IN THE CITY WHO ARE INTERACTING WITH THE CITY.

SO THANK YOU, THANK YOU, THANK YOU.

REALLY. THANK YOU, MR. CHAIR. JUST TO FOLLOW UP, I AM NOT COMFORTABLE RESTING ON OUR LAURELS AT 215 DAYS.

WHEN YOU THINK ABOUT THE FACT THAT THAT'S A SEVEN MONTH PERIOD OF TIME TO OBTAIN A COMMERCIAL BUILDING PERMIT.

NOW, I ASSUME THAT THAT'S FOR BRAND NEW CONSTRUCTION, NOT RENOVATION.

THAT'S A DIFFERENT NUMBER.

CORRECT. REMODELING IS QUICKER.

ALL OF THE OTHER COMMERCIAL PERMIT CATEGORIES ARE QUICKER.

THIS IS ONLY BRAND NEW.

THE MOST COMPLICATED COMMERCIAL PERMIT TYPE, BRAND NEW CONSTRUCTION.

WELL, DO YOU SEE POTENTIAL FOR REDUCING THAT NUMBER WITH THESE NEW, MORE PRODUCTIVE SYSTEMS IN PLACE? I DO. I HAVE A LOT OF FAITH IN THE TEAM, AND I HAVE A LOT OF FAITH IN THE CULTURE CHANGE.

AND SO YES, I DO THINK WE'LL CONTINUE TO SEE PROGRESS.

OKAY, GOOD. PLEASE CONTINUE ON THAT COURSE.

CHAIRMAN NARVAEZ THANK YOU, MADAM CHAIRMAN.

AND I WANT TO ECHO WHAT MY COLLEAGUES HAVE SAID ABOUT THE IMPROVEMENTS AND BECAUSE I WHEN I FIRST GOT HERE WITH YOU TO NOW I'VE BEEN ON THIS COMMITTEE SINCE I CAME TO CITY HALL, AND MR. ATKINS HAS TAUGHT ME A WHOLE LOT.

AND ONE OF THE WHOLE LOTS WAS THAT PERMITTING WAS NEVER LIKE THIS BEFORE, AND IT JUST SPIRALED OUT OF CONTROL.

AND THERE HAVE BEEN SOME NOT NICE THINGS SAID FROM THIS DAIS RIGHT.

AND I DON'T KNOW WHAT ALL THE CHANGES WERE, WHETHER THEY WERE MINOR CHANGES THAT WERE REALLY HUGE OR WHAT IT TOOK. BUT IT TOOK THIS LEADERSHIP HERE TO DO IT.

AND YOU SHOULD BE PROUD OF YOURSELVES AND PROUD OF YOUR ENTIRE TEAM THAT HAS STUCK WITH YOU AND THOSE THAT WERE WILLING TO MAKE THOSE SIMPLE CHANGES, LIKE PICK UP THE PHONE. WHICH IS A MIRACLE, RIGHT? BECAUSE YOU KNOW, THE OTHER DAY I NEEDED TO TALK TO THIS MAJOR RETAIL COMPANY.

I'M NOT GOING TO PUT THEM ON BLAST BECAUSE IT WASN'T THAT BIG OF A DEAL.

BUT I COULD NOT GET A HUMAN BEING ON THE PHONE.

IT WAS LIKE THIS AI THING, AND IT KEPT TELLING ME IT WAS AN AI BOT AND LIKE BOUNCING BACK AND FORTH AND IT WAS LIKE I WAS SO FRUSTRATED, RIGHT.

BECAUSE IT'S LIKE I COULD NOT GET AHOLD OF, YOU KNOW, SOMEBODY TO SPEAK TO.

AND BY THE TIME I FINALLY DID, IT WAS LIKE I WAS JUST SO RELIEVED.

AND THEY GOT MY ISSUE FIXED IN LIKE, 10S.

AND THAT'S THE SAME THING HERE, LIKE, YOU KNOW, BUT IT IS ALSO SOME OF THESE FOLKS THAT ARE HIRED TO DO CERTAIN JOBS THAT HAVE ZERO IDEA WHAT THEY'RE DOING, BECAUSE I CAN'T TELL YOU HOW IN THE PAST THEY STARTED FLOODING US WITH THOSE ISSUES.

RIGHT. Y'ALL, Y'ALL KNOW ALL THESE STORIES AND, LIKE, AND THEN SOMEBODY FROM PERMITTING WOULD COME AND THEY'D GO INVESTIGATE.

THEY'D TAKE, WHICH IS A LOT OF WASTED TIME BECAUSE THEN IT'S LIKE, WELL, NOW NOBODY'S DOING ANY WORK ON APPROVING PERMITS BECAUSE THEY'RE ALL INVESTIGATING THE MISTAKES AND OTHER ONES RIGHT.

AND IT WAS ALL LIKE COMPUTER ERROR, YOU KNOW, HUMAN ERROR, USER ERROR.

WELL, THEY NEVER SENT US THE FORM.

AND YOU LOOK IT UP, IT'S LIKE THE FORM SITTING THERE.

THEY JUST DIDN'T PUSH THE BUTTON ON THE COMPUTER THAT WOULD SEND IT SO THAT Y'ALL WOULD GET IT.

YOU KNOW, IT'S LIKE IT WAS SIMPLE THINGS LIKE THAT.

RIGHT? BUT GETTING THOSE FIXED AND BUT NOBODY PICKED UP THE PHONE TO TELL THEM AND OR, YOU KNOW, THE REVERSE.

AND SO IT'S LIKE.

THIS IS GOING TO BE A BREATH OF FRESH AIR.

I AGREE. WE'RE NOT GOING TO SIT ON OUR LAURELS AND JUST THINK, OH, YOU KNOW, BECAUSE YOU KNOW.

YOU KNOW, WE GOT SOME THINGS GOING.

WE GOT TO KEEP IT UP AND WE GOT TO PROVE AND PROVE AND GET IT TO THAT NEXT LEVEL, THAT NEXT LEVEL.

AND WE'RE GOING TO GET IT BACK THERE.

AND I JUST WANT TO TELL YOU GREAT JOB.

KEEP IT UP.

YOU KNOW DON'T STOP BECAUSE THIS FEELS GOOD TO NOT HAVE TO SAY THINGS THAT AREN'T SO KIND FROM UP HERE ABOUT PERFORMANCE WHEN I KNOW EVERYBODY WHO'S SITTING OVER THERE.

NOT YOU ALL WEREN'T THE PROBLEMS RIGHT BEFORE, BUT THE PEOPLE BEFORE WERE TRYING TO FIX IT, AND THEY JUST WERE NOT ABLE TO FIGURE OUT HOW TO DO IT.

AND I DON'T KNOW, YOU MUST JUST COME FROM AN OLD SCHOOL OF PICK UP THE PHONE BECAUSE I COME FROM THAT OLD SCHOOL AS WELL.

SO, THANK YOU FOR THAT.

[01:30:02]

AND I'M GOING TO REMEMBER THAT FOR THE FUTURE AS WELL AS PICK UP THE PHONE, BECAUSE IT DOES MEAN A LOT.

RIGHT. BUT IT ALSO HELPS YOU UNDERSTAND WHAT'S REALLY GOING ON BECAUSE THINGS ARE LOST IN TRANSLATION VIA TEXT OR EMAIL OR WHATEVER IT IS, BECAUSE YOU ALL HAVE A WAY OF SAYING THINGS OR HOW YOU, YOU KNOW YOUR LANGUAGE THAT YOU ALL SPEAK IN PERMITTING, RIGHT? YOU ALL SPEAK A CERTAIN LANGUAGE.

I SPEAK COUNCIL MEMBER AND THEN RESIDENTS SPEAK RESIDENT AND THE CONSULTANTS SOMETIMES DON'T SPEAK RIGHT.

THEY DON'T UNDERSTAND ALL OF THESE TERMS UNTIL YOU'VE WORKED IT, OR YOU'VE BEEN WITH EACH OTHER LONG ENOUGH, AND THEN WE CAN GET THOSE GOING.

SO THANK YOU FOR THAT.

LET'S KEEP IT UP. AND MR. CHAIR, THIS IS GOOD.

I'M GLAD THAT WE'RE I'M GLAD YOU FINALLY GOT SOMETHING DONE.

SO THANK YOU, MR. CHAIR.

THANK YOU GUYS FOR THE NICE WORDS.

I'LL JUST WRAP UP BY SAYING I'VE BEEN NOTHING BUT IMPRESSED WITH THE LEVEL OF TALENT AND EXPERTISE IN THE PLANNING AND DEVELOPMENT DEPARTMENT, BOTH ON THE PERMITTING SIDE AND THE ZONING SIDE AND THE PLANNING SIDE.

THESE ARE SMART EXPERTS, AND I DON'T KNOW EVERYTHING THAT THEY DO.

I'M STILL LEARNING, BUT I THINK THEY JUST NEEDED TO BE EMPOWERED TO GO.

AND THANK YOU TO EMILY AND HER TEAM FOR SPREADING THAT MESSAGE AND CHANGING THE CULTURE.

IT'S A GREAT TEAM. IT'S A FUN DEPARTMENT TO WORK WITH.

SO THANK YOU FOR THE NICE WORDS.

FORMER COUNCIL MEMBER DAVE NEWMAN, YOU GOT SOMETHING TO SAY? YOU'VE BEEN HERE ALL. YOU SURE YOU WEREN'T THAT QUIET ON THE COUNCIL WHEN YOU WAS HERE? WHAT? ROBIN, THIS LAST ITEM.

RIGHT. THANK YOU ALL AGAIN.

PERMIT. Y'ALL CAME A LONG WAY.

LET'S KEEP THE GOOD WORK UP.

BECAUSE IF WE CAN'T GET PERMITS, WE CAN'T PAY THE BILLS.

SO IT IS NOW 2:35.

I CALL THE ECONOMIC DEVELOPMENT TO BE ADJOURNED.

THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.