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WE'RE GOING TO GET STARTED NOW.[Economic Development on January 6, 2025. ]
WE CALL THE ECONOMIC DEVELOPMENT COMMITTEE TO ORDER.CAN I GET A MOVE? APPROVAL. SECOND. ALL IN FAVOR, SAY AYE.
AYE. ANY OPPOSED? AYES CARRIED. NEXT ITEM.
THE FIRST ONE WOULD BE THE DALLAS HOUSING OPPORTUNITY FUND.
AND WHO'S DOING IT? BEN GILLESPIE. YES, SIR.
THE FLOOR IS YOURS. THANK YOU.
I THINK WE HAVE A PRESENTATION TO BRING UP HERE.
THIS IS OUR SECOND YEAR COMING IN FOR THE COUNCIL.
THE COMMITTEE TO PRESENT WHERE WE'RE AT THIS YEAR.
AGAIN, I'M BEN GILLESPIE, THE SENIOR DIRECTOR OF FUND INVESTMENTS.
YOU GET A LITTLE BIT CLOSER TO THAT MIC, PLEASE.
SURE. ABSOLUTELY. SO I'M BEN GILLESPIE, SENIOR DIRECTOR OF FUND INVESTMENTS FOR LIST MANAGEMENT.
AND I HAVE DAN MCDERMOTT ON MY TEAM HERE AS WELL.
GOOD AFTERNOON. JAMIE JOLLEY PRESIDENT AND CEO OF THE REAL ESTATE COUNCIL.
WE'RE PROUD TO PARTNER ON THIS INITIATIVE.
CLINTON. I'M CLINTON HILL, ALSO WITH THE REAL ESTATE COUNCIL, FUNCTIONING AS THE LOAN UNDERWRITER PARTNERING ON THIS FUND. HELLO.
DAN MCDERMOTT. I'M WITH LIZ FUND MANAGEMENT, AND I'M THE DIRECTOR OF INVESTOR RELATIONS.
OKAY, GREAT. WE'LL GO TO THE NEXT SLIDE PLEASE.
THIS IS OUR STAFF HERE. WE DO HAVE ONE CHANGE IN OUR STAFF.
TIFFANY MORENO IS OUR PRESIDENT OF FUND MANAGEMENT.
BEFORE YOU HAD DEALT WITH GEORGE ASHTON, WHO ORIGINALLY NEGOTIATED THE SERVICE AGREEMENT.
SO THEY'RE VERY MUCH INVOLVED AND AWARE OF WHAT WE'RE DOING AND SUPPORTIVE.
YES. AND JUST A LITTLE BIT ABOUT OUR TREC TEAM.
AND SHE HEADS UP OUR COMMUNITY INVESTMENT EFFORTS.
SO JUST A QUICK OVERVIEW OF THE FUND.
AS YOU KNOW WE WERE SEEDED WITH $6 MILLION FROM THE CITY.
WE WERE CHARGED WITH FINANCING 1500 AFFORDABLE UNITS BY THE YEAR 2031.
AS OF DECEMBER OF 2024, WE HAVE CREATED 553 UNITS FINANCING, ALL UNDER THE.
OH, THERE WE GO. SO WE CURRENTLY HAVE 553 UNITS TOWARDS THE 1500 UNIT GOAL.
AT LEAST HALF THE UNITS IN THE DEVELOPMENT HAVE TO BE AFFORDABLE AT 100% OR BELOW.
SEVERAL OF OUR INVESTORS REQUIRE US TO HAVE HALF THE UNITS AT 80% AMI OR BELOW.
SO WE HAVE A MORE RESTRICTIVE REQUIREMENT THERE.
AND WE'RE PURSUING BOTH NEW CONSTRUCTION AND PRESERVATION REHAB DEALS WITH LOOKING FOR MIXED INCOME HOUSING, HAVING MARKET RATE AND AFFORDABLE UNITS TOGETHER, AND LOOKING FOR DEALS IN AREAS OF HIGH OPPORTUNITY AREAS.
NEXT SLIDE PLEASE. SO PROGRESS SINCE OUR LAST TIME BEING HERE JANUARY OF 2024.
WHEN WE WERE HERE LAST YEAR, OUR FUND SIZE WAS $23 MILLION AND WE HAD 5,000,005 DEALS CLOSED.
JUST A COUPLE EXAMPLES OF HOW THE CITY'S MONEY IS BEING USED.
THE FIRST ONE BEING OAK LAWN PLACE WITH THE RESOURCE CENTER.
AND THIS IS PICTURES FROM THEIR GRAND FROM THEIR GRAND OPENING.
AND IT HAS A TUITION FREE BASED ACADEMY CHILDCARE CENTER ON THE GROUND FLOOR OF IT.
AND JUST UPDATE ON OUR FUNDRAISING.
WE HAVE A GOAL OF RAISING $46 MILLION.
WE'RE CURRENTLY AT $41.5 MILLION OR 90% TOWARDS OUR GOAL.
AND WE HAVE TILL THE END OF 2026 TO ACHIEVE THAT GOAL.
SO ALMOST TWO MORE YEARS TO GET THERE.
WE'RE FEELING PRETTY GOOD THAT WE'LL GET THERE.
THE FUND IS CURRENTLY MADE UP OF INVESTORS FROM THE CITY, SUNFLOWER BANK, TRUIST AND THE FOUR NEW INVESTORS WE BROUGHT ON LAST YEAR WERE AMEGY BANK, CHARLES SCHWAB, KEYBANK, AND BOK FINANCIAL, BETTER KNOWN AS BANK OF TEXAS.
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THEY'D LIKE TO DO MORE IN DALLAS, SO WE WERE ABLE TO BRING KIND OF BRAND NEW CAPITAL TO THE CITY THROUGH KEYBANK AND THEIR INVESTMENT.JUST WANTED TO HIGHLIGHT THAT.
SO WE CURRENTLY HAVE EIGHT DEALS CLOSED.
THESE ARE THE HIGHLIGHTED, THE EIGHT DEALS THAT WE'VE CLOSED SO FAR.
SO WE HAD A GOAL OF DOING 100 UNITS, I THINK, IN THE FIRST YEAR.
SO WE'VE ACHIEVED THAT GOAL AND SURPASSED IT.
SO JUST WANTED TO HIGHLIGHT THAT.
OVER 84% OF THEM HAVE BEEN EITHER WOMEN LED OR BLACK LED DEVELOPMENT COMPANIES.
WE HAVE ONE SUPPORTIVE HOUSING DEVELOPMENT OF METRO CARE.
AND, YOU KNOW, THE GREAT WORK THAT THEY DO WITH HOMELESSNESS AND VETERANS.
AND THEN ALL OF OUR PROJECTS HAVE SOME FORM OF WRAPAROUND SERVICES, WHETHER IT BE THE BEZOS ACADEMY, CHILD CARE CENTER, OAKLAWN, WHAT THEY DO WITH THE LGBT COMMUNITY, AND THEN METRO CARE AS WELL.
JUST WANTED TO HIGHLIGHT THAT.
NEXT SLIDE PLEASE. WE HAVE A GREAT A VERY ROBUST PIPELINE OF DEALS.
AGAIN, OUR GOAL IS TO HIT 1500 UNITS WILL BE AT 1200 UNITS BY THE END OF THE SECOND QUARTER.
AND WE STILL HAVE A PIPELINE OF OVER 200,000 UNITS IN PIPELINE WAITING TO BE FUNDED.
JUST NEED MORE DOLLARS TO GET THOSE DEALS DONE.
BUT WE ARE WELL ON OUR WAY TO HITTING THE 1500 UNIT GOAL.
AGAIN, WE WERE CHARGED WITH FINDING PROJECTS IN AREAS OF HIGH OPPORTUNITY.
THIS MAP HERE JUST SHOWS AREAS IN BLUE ARE WHERE THE CITY DEFINES AS AREAS OF HIGH OPPORTUNITY.
WE HAVE FIVE OF THE EIGHT DEALS THAT WE'VE CLOSED HAVE BEEN IN THESE BLUE AREAS.
OF THE FOUR DEALS WE HAVE UNDERWRITING NOW, TWO OF THEM ARE ALSO WILL BE UNDER BELOW I-4 BY 30.
IT WILL BE ABOVE. I-30 WILL BE A GOOD JOB OF FINDING DEALS IN AREAS OF HIGH OPPORTUNITY.
SO, THIS IS OUR RECENT SUCCESSES.
JUST WANT TO HIGHLIGHT AGAIN WE BROUGHT IN FOUR NEW INVESTORS LAST YEAR WITH $13 MILLION.
WE HAVE FIVE DEALS TARGETED WITH THOSE INVESTMENTS.
WE HAVE FOUR MORE THAT ARE UNDERWRITING WILL BE CLOSED BY THE SECOND QUARTER.
AND THE LATEST DEAL WE CLOSED THE DEAL, CALLED PARK LANE TERRACE 150 UNIT PROJECT.
THIS DEVELOPER BOUGHT AN EXISTING PROPERTY THAT'S IN VACANCY ISSUES.
THEY'RE GOING TO FILL THOSE UNITS WITH THESE NEW POPULATIONS OF REFUGEES.
AND THEN LASTLY, THE ADDITIONAL PARTNERSHIP OPPORTUNITIES.
WE HAD SOME DISCUSSIONS WITH CYNTHIA ABOUT MAYBE LEVERAGING SOME OF THE PFC RESERVES THAT ARE CURRENTLY EXISTING, AND LEARNING HOW TO MAYBE START UP A DAWN FUND WITH DAYHOFF THAT COULD BE USED TO EITHER TARGET HOME OWNERSHIP OR SEEKING OUT DEEPER AFFORDABILITY.
LOOKING FOR UNITS THAT ARE IN THE 30 TO 50% AMI.
WE CURRENTLY HAVE BEEN DOING A PRETTY GOOD JOB OF TARGETING THAT INCOME BAND.
OF THE 553 UNITS WE'VE DONE SO FAR.
200 UNITS ARE IN THAT 30% AMI INCOME BAND.
AND THEN HOME OWNERSHIP I KNOW IS A CHALLENGE FOR THE CITY.
WE'D LOVE TO. WE DO HAVE A PIPELINE OF HOME OWNERSHIP DEALS.
ONE CHALLENGE WHERE WE HAVEN'T DONE MANY TO DATE, IS THAT THE FUND DOES REQUIRE A 15 YEAR AFFORDABILITY FOR ALL OF OUR PROJECTS, WHICH IS ABSOLUTELY APPROPRIATE FOR RENTAL DEVELOPMENTS. ONE THING I'VE HEARD FROM SOME OF OUR HOME OWNERSHIP DEVELOPERS IS THAT THAT TIME FRAME CAN BE A DETERRENT TO HOME BUYERS.
WE'VE ALREADY BEEN HITTING THAT INCOME BAND AT 30% AMI.
SO I FEEL CONFIDENT WE COULD USE THOSE FUNDS APPROPRIATELY.
CHAIRMAN RIDLEY. THANK YOU, MR. CHAIR. AND THANK YOU FOR THE PRESENTATION, BEN.
I NOTICED THAT YOU IDENTIFIED SEVERAL BANKS AS NEW INVESTORS, BUT WHEN YOU ON THE PAGE THAT CHARACTERIZED THEIR INVESTMENT, AT LEAST TWO OUT OF THE THREE WERE DEBT INVESTMENT.
AND I'M JUST CURIOUS WHAT THAT COMBINATION OF TERMS MEANS.
IN YOUR PARLANCE, TYPICALLY INVESTMENT IMPLIES AN EQUITY INVESTMENT.
WHICH ARE THESE? SO, I'LL LET DAN TALK ABOUT THAT MORE.
BUT I THINK REALLY WHAT IT MEANS IS I THINK OUR ORDER OF PRIORITY OF REPAYMENT IS REALLY I THINK IT'S A DIFFERENCE WHERE THE DEBT INVESTORS WOULD GET, THEY WOULD GET REPAID PRIOR TO EQUITY INVESTORS.
SO THEY GET A LOWER RETURN VERSUS EQUITY INVESTORS.
EQUITY GET PAID LAST TO GET A HIGHER RETURN.
BUT DAN, YOU WANT TO MAYBE ADD ON TO THAT.
BEN IS CORRECT. THERE'S SEVERAL WAYS FOR POTENTIAL CRA BANKS TO PARTICIPATE.
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THEY CAN EITHER DO A GRANT, THEY CAN DO A LOAN, LIKE YOU SAID, A DEBT INVESTMENT IN THE FUND.OR THEY CAN DO EQUITY AND HAS BEEN HIGHLIGHTED.
IT'S IN THE WATERFALL SCHEDULE ABOUT REPAYMENT AND DIFFERENT RATES THAT ARE IN THERE.
AND WHAT TYPICALLY SECURES THE DEBT INVESTMENTS.
IT'S JUST A PROMISSORY NOTE AGAINST THE FUND FOR THE ESSENTIALLY AGAINST THE EQUITY IN THERE.
SO IF IN A SITUATION IF THERE WAS A DEFAULT SITUATION THAT WOULD BE THEY WOULD BE IN THE ORDER OF THE HIGHEST TO BE REPAID ON THAT SIDE OF THINGS. BUT THEY WOULDN'T HAVE ANY RIGHTS TO THE REAL ESTATE ITSELF.
OKAY. AND HOW DO YOU RECRUIT THESE INVESTORS, OR DO YOU APPEAL TO THEIR COMMUNITY REINVESTMENT INSTINCTS OR HOW DO YOU FIND THEM? YEAH, THAT'S A GREAT QUESTION.
SO IT IS THAT MOST OF OUR BANKS THAT COME IN AS DEBT INVESTORS ARE CRA MOTIVATED.
SO, DO YOU HAVE SOMEONE ON STAFF THAT ACTUALLY SEEKS OUT POTENTIAL INVESTORS, OR DO YOU WAIT FOR THEM TO APPROACH YOU UNDER THEIR CRA REQUIREMENTS? YEP. SO I'M ON STAFF WITH THE TEAM, THE BUSINESS DEVELOPMENT TEAM.
AND ARE THOSE LOANS AT BELOW MARKET TERMS CORRECT? YES. WHAT KIND OF RATE REDUCTION DO YOU GET FROM THEM FROM MARKET? YEAH, THAT'S A GREAT QUESTION.
BEN, DO YOU WANT TO HANDLE? YEAH. SO INITIALLY WE THE FUND STARTED IN 2022.
SO OUR INITIAL INVESTORS WERE AT ONE AND 2% FOR DEBT AND EQUITY.
SO WE'RE CURRENTLY AT THREE AND 4% FOR DEBT AND EQUITY INVESTORS.
AND YOUR GOAL WAS TO EXTEND THE AFFORDABILITY PERIOD BEYOND FIVE YEARS.
DO YOU IT SAID THAT YOU WERE EXPLORING WAYS TO DO THAT.
THEY'RE JUST SAYING THE 15 YEAR AFFORDABILITY REQUIREMENT IS JUST TOO LONG FOR BUYERS TO BUY INTO.
IF WE COULD BE SOMEWHERE IN THE 5 TO 10 YEAR RANGE FOR THAT AFFORDABLE FOR JUST, FOR SALE DEALS, THEY FELT THAT THEY COULD UTILIZE THE FUND AND THEY COULD FIND BUYERS WILLING TO ACCEPT THAT REQUIREMENT ON THEIR, ON THEIR DEED WHEN THEY BUY THE HOME.
SO THAT'S ALL WE'RE ASKING, IS IF WE CAN CONSIDER IF WE WERE TO GET ADDITIONAL FUNDS TO USE TOWARDS HOMEOWNERSHIP, IF WE COULD CONSIDER A SHORTER PERIOD OF AFFORDABILITY, BE 5 TO 10 YEARS INSTEAD OF THE 15 YEARS.
SO HAVE YOU CONSIDERED THE USE OF A LAND TRUST MECHANISM WHEREBY THE FUND RETAINS OWNERSHIP OF THE FEE SIMPLE INTEREST, BUT SUBJECT TO A LONG TERM LEASE OF THE LAND TO RETAIN CONTROL OF THE AFFORDABILITY.
YES. SO, COUNCILMAN, REALLY THAT IS A TOOL THAT WE'RE IN THE PROCESS OF CURRENTLY WORKING WITH CITY STAFF TO STAND UP AS THE DALLAS COMMUNITY LAND TRUST, AND THAT TOOL WILL HELP MAKE THIS MORE AFFORDABLE AND BE ABLE TO REALLY ADDRESS THE SINGLE FAMILY HOME ISSUE THAT WE'RE TRYING TO FIND IN THE MARKET.
GREAT. WELL, I JUST WILL CLOSE BY SAYING THAT THAT IS A PRIORITY, THAT WE NOT ONLY PROVIDE RENTAL UNITS, BUT ALSO OWNER OCCUPIED OPPORTUNITIES FOR PEOPLE THAT MEET THE INCOME REQUIREMENTS.
THANK YOU. I'M JUGGLING A COUPLE OF THINGS HERE BECAUSE HOUSING IS SUCH A VERY IMPORTANT CONVERSATION, WHICH YOU ALL KNOW THAT WE GET HIT BY THAT OFTEN HOME REPAIR FOR SENIORS SENIORS WHO HAVE BEEN IN THEIR HOMES FOR YEARS AND THEY DON'T EVEN HAVE THE FUNDING RESOURCES TO REPAIR THEIR ROOFS AND OTHER ISSUES SO THEY CAN KEEP THE ONLY SOURCE OF WEALTH THAT THEY DO HAVE, BUT HAVE NO ABILITY TO NEGOTIATE WITH IT.
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AND THOSE WHO ARE LISTENING TO US.THAT IS EXACTLY WHAT IT IS, ANOTHER TOOL TO ENGAGE INVESTMENT IN THE COMMUNITY.
BUT WHAT WE HAVE TO BE CAREFUL WITH AS WE TALK ABOUT HOUSING, WE CANNOT PUT FEAR IN PEOPLE TO THE POINT WHERE THEY'RE PLACING THEIR ONLY SOURCE OF WEALTH IN A TRUST. NOW, I THINK THAT WITH MY LIMITED EXPERTISE IN HOUSING IN THAT FIELD, WHAT I DO KNOW IS THAT I WAS INVITED TO A CONVERSATION AROUND A LAND TRUST WHEN I FIRST ARRIVED, AND WHAT I INITIALLY THOUGHT WAS GREAT AS I BEGAN TO EXPLORE MORE IS THE SITUATION IN WHICH IF YOU DON'T COMMUNICATE, YOU'RE GOING TO REGRET IT.
IS THAT YOUR UNDERSTANDING? THEY WILL NOT INHERIT.
THEY CANNOT INHERIT THAT PROPERTY.
IS THAT WHAT YOU UNDERSTAND? RIGHT. SO DIFFERENT LAND TRUSTS ARE SET UP WITH DIFFERENT CRITERIA.
BUT THERE ARE PLACES WHERE, FOR INSTANCE, YOU WOULD GO INTO THE COMMUNITY AND WORK WITH A FAMILY WHO IS AT RISK OF LOSING THEIR HOME BECAUSE THEY CAN'T AFFORD FOR THE TAXES THAT HAVE GONE UP. THE LAND TRUST, INVEST IN THE LAND, AND IT ALLOWS THEM TO KEEP THE HOME ON THE LAND IN THE FAMILY OVER TIME AND SO AND IT ALSO KEEPS IT AFFORDABLE OVER TIME.
SO I THINK THAT'S THE TOOL THAT A LOT OF COMMUNITIES HAVE FOUND SUCCESSFUL.
THERE'S ALSO OTHERS THAT GO IN AND BUILD USING THE LAND TRUST NEW CONSTRUCTION.
RIGHT. SO FOR THE THAT WAS AN ESTABLISHED NEIGHBORHOOD.
SO I NEVER WOULD HAVE BEEN ABLE TO WALK AWAY AND EVEN LOOK IN THE MIRROR HAD I SUPPORTED PUTTING THAT COMMUNITY IN A LAND TRUST BECAUSE THEY'RE THERE FOR THEIR UNDERSTANDING, THEIR THINKING THAT THEY CAN SECURE THE TRANSFERENCE OF POWER OR WEALTH TO THEIR FAMILY MEMBERS.
AND THEY WERE NOT GOING TO BE ABLE TO DO THAT.
I THINK THE LAND TRUST, THEY'RE APPEALING TO CERTAIN POPULATIONS.
AND IF YOU'RE YOUNG AND MAYBE YOU'RE A YOUNG DOCTOR AND YOU'RE MOVING AROUND TO DIFFERENT STATES AND WHAT HAVE YOU, AND, YOU KNOW, YOU DON'T HAVE A PROBLEM WITH SEPARATING THAT BECAUSE YOU'RE TRYING TO GET A LESS EXPENSIVE WAY.
IF YOU'RE STARTING OUT TO GET A HOUSE TO GET A HOME.
BUT IT'S WHEN WE INTRODUCE THIS TO ESTABLISHED NEIGHBORHOODS.
AND IF CITY STAFF IS LISTENING, CITY MANAGER, I'M GOING TO EXPRESS THAT WITH HER AS WELL.
WE NEED TO BE VERY CLEAR BECAUSE YOU HAVE CHURCHES WHO ARE WHO HAVE.
MATTER OF FACT, I THINK THE LADY IS NOW DECEASED.
NOW SOMEHOW HER CHURCH HAS SOME TYPE OF TRUST.
SO I WOULD SAY TO STAFF THAT'S LISTENING BECAUSE I'VE BEEN ANXIOUS ABOUT THIS.
WE HAVE LAND NOW IN DISTRICT FOUR, AND I'M LIKE, OKAY, THIS IS A PERFECT PLACE FOR A LAND TRUST BECAUSE IT'S COMPLETE EMPTY SPACE, YOU KNOW? SO YOU HAVE THE LANDSCAPE NOW TO DESIGN THE COMMUNITY BASED ON AFFORDABILITY.
IT'S TAKEN US TOO LONG TO GET IT DONE.
AND IF WE WANT TO BE ABLE TO DESIGN WHAT WE WANT IN OUR OWN COMMUNITIES.
WHAT'S KILLING US IS OUR OWN POLICIES.
THAT LAND HAS BEEN SITTING UP THERE IDLE.
WE FLIPPED IT. WE SOLD IT BECAUSE IT WAS OUR LAND.
I'M WAITING FOR A DEVELOPER TO COME UP WITH AN AFFORDABLE VIABILITY PLAN THAT WILL NOT JUST TURN THE NEIGHBORS OFF BY SIMPLY SAYING, YOU KNOW, AFFORDABLE IS ONE OF THOSE MARKS WE LIVE WITH BECAUSE IT'S ALWAYS TRANSLATED TO POOR BLACK AND POOR BROWN AND POOR WHITE PEOPLE.
IT'S ALWAYS ABOUT THOSE PEOPLE.
SO HOW DO YOU GET A GOOD PRODUCT IN PLACE WHERE PEOPLE WHO WANT TO INVEST IN THEIR COMMUNITY, WANT TO TAKE CARE OF THEIR PROPERTY CAN COME IN? I'M WAITING FOR IT, BUT IT TAKES US TOO LONG.
SO ALL I'M SAYING TO YOU IS TO THE CITY STAFF.
THAT'S LISTENING. COUNCIL MEMBERS, AS WE MOVE FORWARD WITH SUPPORTING THESE LAND TRUSTS.
DON'T GET CAUGHT UP BECAUSE IF YOU MISTREAT THE PEOPLE, THEY CONTINUE TO HAVE THIS WHOLE NOTION THAT THEY CAN'T TRUST US. AND THAT WAS WHAT'S GOING ON.
THAT'S WHAT HAPPENED TO ME IN 10TH STREET.
WE HAD PROMISED, WE MADE A COMMITMENT.
WE STARTED OUT, WE INITIATED A PROGRAM.
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COMPLEMENTS THE COMMUNITY THAT IS GOING IN.WE'RE NOT OVER IN OAK CLIFF WHERE I'M SPEAKING OF RIGHT NOW FOR REDBIRD.
WE'RE NOT TRYING TO GET A TON OF DUPLEXES IN THAT AREA BECAUSE YOU HAVE 300 OR $400,000 HOMES THAT ARE ALREADY UNDER VALUED BECAUSE OF OUR ZIP CODE, BUT THOSE ARE CUSTOM DESIGNED HOMES IN THOSE NEIGHBORHOODS.
AND SO WE WANT TO HAVE SOMETHING THAT COMPLEMENTS SO THAT OUR PROPERTY VALUES DON'T HIT THE GROUND.
DOES THAT MAKE SENSE WHAT I'M TALKING TO YOU ABOUT? ABSOLUTELY. SO WHAT CAN YOU ALL DO TO TRY TO.
WHAT DO WE NEED TO DO TO HELP ACCELERATE THIS CONVERSATION? AND SO YOU ALL CAN GO ON ABOUT THE BUSINESS OF WHAT YOU NEED TO DO.
COMMUNITY LAND TRUST IS A SEPARATE TOOL.
AND THAT WE'RE WORKING WITH COUNCIL AND STAFF ON.
AND IT WILL COME BACK TO THE HOUSING COMMITTEE PROBABLY FEBRUARY IS WHAT WE'RE GUESSING.
SO THAT'S A SEPARATE CONVERSATION.
THIS TOOL HERE TODAY, I MEAN, YOU SEE THE PIPELINE IN THE PRESENTATION.
AND I THINK YOU SHARED THIS MORNING, BEN, THAT THAT FROM THE TIME THAT WE CLOSED WITH THE BANKS, AND WE IDENTIFY THE FUNDING, WE'RE PUTTING THAT INTO MOTION WITHIN FOUR MONTHS. THAT'S RIGHT. ON AVERAGE.
ALL RIGHT. SO I HEARD THE TERM COMMUNITY LAND TRUST.
SO YOU ALL ARE NOT GOING TO BE INVOLVED IN THAT.
SO HELP ME TO GET UNDERSTANDING TODAY.
ARE WE NOT? GOOD AFTERNOON. THORAX AND ASSISTANT DIRECTOR OF DEPARTMENT OF HOUSING, COMMUNITY DEVELOPMENT.
THE REAL ESTATE COUNCIL HAS BEEN WORKING ON STANDING UP AN INDEPENDENT NONPROFIT.
THEY INTEND TO APPLY TO US FOR MUNICIPAL DESIGNATION IN FEBRUARY OR MARCH.
ONCE STAFF RECEIVES AN APPLICATION FOR THAT DESIGNATION, WE WILL SCORE IT, EVALUATE IT, AND THEN PRESENT IT TO HOUSING COMMITTEE FOR VALIDATION BEFORE BRINGING THAT TO CITY COUNCIL FOR APPROVAL.
SO IS THIS TREC IS THAT YOU REPRESENT TREC? YES. CORRECT. IS IT 2025 THAT YOU'RE TALKING ABOUT GETTING THIS INFORMATION? YES. IN THE NEXT COUPLE OF MONTHS IS WHEN WE ANTICIPATE RECEIVING OUR PROPOSAL.
RIGHT. SO WE'VE BEEN WORKING WITH A CONSULTANT THAT DOES THESE ACROSS THE NATION.
AND WE WANT TO IMPLEMENT BEST PRACTICES.
SO WE'VE PARTNERED WITH KEY PARTNERS IN THE COMMUNITY.
AND WE'RE STANDING UP A SEPARATE ENTITY OUTSIDE OF TREC.
WE WILL BE ONE OF SEVERAL PARTNERS THAT ARE PART OF THAT ENTITY.
BUT THE DEVELOPERS, THE PROGRAM THAT YOU'RE DESCRIBING HERE, COULD YOU NOT WORK WITH THIS COMMUNITY LAND DEVELOPER TO IMPLEMENT SOME OF THESE PROGRAMS? I THINK THAT'S THE GOAL WE'RE TALKING ABOUT.
THAT'S CORRECT. ALL RIGHT. BECAUSE THIS IS WHAT I'M AND I SEE THE CHAIR TRY TO RING THE BELL ON ME.
DO I NEED TO COME BACK? BECAUSE THIS IS VERY IMPORTANT TO ME.
BECAUSE YOU'RE SAYING NO, THAT'S NOT THE PROGRAM.
YOU'RE SAYING, WELL, YES, WE CAN.
SO I'M SAYING THERE ARE TWO DIFFERENT PROGRAMS, TWO DIFFERENT.
WE'RE TALKING ABOUT TWO DIFFERENT TOPICS.
YEAH. LET'S GET BACK TO THE MAIN TOPIC.
WHAT WERE THEY TRYING TO DO? IS CHAIRMAN IS GIVING US THE UPDATE ON THE OPPORTUNITY FUNDING AND HOW THE FUNDING THEY NEED TO LEVERAGE TO GET MORE MONEY FOR THE FUNDING.
YOU ARE TALKING ABOUT A LAND TRUST.
SO WE DO TAKE IN CONSIDERATION WHAT YOU'RE TALKING ABOUT, PEOPLE OWNING HOMES.
HOW CAN THEY DO IT? WE DO UNDERSTAND THE LAND BANK.
BUT RIGHT NOW WE'RE JUST TALKING ABOUT THE FUNDING WHICH THEY RAISE.
RIGHT NOW, THEY'RE AT 41 MILLION.
THIS IS THE PROCESS, HOW 0THEY DID IT.
AND THEY DID GIVE US AN UPDATE ON HOW THEY USED THE MONEY AND RAISE MONEY.
THAT'S ALL THEY'RE DOING TODAY.
NOTHING ELSE. OKAY. SO THANK YOU CHAIR.
SO TO YOU, CHAIR, I THINK WHERE I'M LOSING, MAYBE I'M MORE OPTIMISTIC THAN WHERE WE ARE.
SO WE'LL GET WITH STAFF, TOO, SO WE CAN GET AN UNDERSTANDING.
AND SO THAT YOU'RE GIVING THIS REPORT PERHAPS I MISSED THE REPORTS ON DISTRICT FOUR.
THANK YOU. CHAIR. YEAH, THANK YOU VERY MUCH.
ANYBODY IN THE VIRTUAL WORLD WANT TO SPEAK? CHAIRMAN WEST, GO AHEAD.
GREAT. WELL, I APPRECIATE THE UPDATE.
AND THANK YOU, CHAIRMAN, FOR BRINGING THIS TO THE COMMITTEE.
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I REALLY LIKE HOW YOU HAVE GONE OUT AND REALLY FOUND PLACES IN HIGH OPPORTUNITY AREAS FOR US TO INVEST, YOU KNOW, UTILIZE THE CITY $6 MILLION AND THEN TAKE THIS ADDITIONAL LEVERAGING PRIVATE CAPITAL TO PUT AFFORDABILITY INTO IT.I DON'T THINK I'VE SEEN A BETTER SPREAD OF AFFORDABILITY IN THE CITY FROM ANY OF OUR OTHER PROGRAMS, AND I REALLY THINK FROM AN INVESTMENT STANDPOINT, THIS IS SHOWING US THAT THIS PRIVATE PARTNER, PUBLIC PRIVATE PARTNERSHIP HERE IS REALLY THE WAY TO GO IF WE WANT TO FIND THE HIGH OPPORTUNITY AREAS FOR AFFORDABLE HOUSING. SO GREAT JOB ON THAT.
I WANT TO COMMEND TREC FOR PROPOSING THIS AND FOR BRINGING THIS TO DALLAS SO THAT WE CAN MAKE THE DALLAS HOUSING OPPORTUNITY FUND A REALITY.
I DO SUPPORT UTILIZING THE HFC AND THE PFC FUNDS FOR ADDITIONAL OPPORTUNITIES IN THIS IN THIS REALM HERE. SO I'M HOPING ROBIN AND THOR YOU HEAR THAT.
AND YOU GUYS, YOU KNOW WE YOU BRING THOSE PROPOSALS TO US IN THE FUTURE? I GUESS, YOU KNOW, I'M CURIOUS IF WE APPROACHED BANK OF AMERICA TO SEE IF THEY WANTED TO PARTICIPATE IN THIS.
BANK OF AMERICA IS THE CITY'S MAIN DEPOSITORY.
THEY MAKE A LOT OF MONEY OFF THE CITY THROUGH INTEREST RATES.
DID THEY WERE THEY APPROACHED? HEY, CHAD. YES, I CAN TAKE THAT.
BUT WE HAVEN'T BEEN ABLE TO SUCCESSFULLY MOVE THOSE CONVERSATIONS ALONG, SO WE DEFINITELY WOULD BE OPEN IF THERE WAS ANY YOU KNOW, PARTNERSHIP THAT YOU COULD DO TO MOVE THAT CONVERSATION ALONG TO AS WELL.
WE'D BE OPEN TO HAVE THEM PARTICIPATE.
WELL, I KNOW WE JUST RENEWED THEIR.
THANK YOU FOR THAT. I KNOW WE JUST RENEWED THEIR CONTRACT WITH THE CITY.
WE NEED TO ENGAGE THEM IN THESE CONVERSATIONS.
AND IF THEY'RE NOT GOING TO PARTICIPATE, I'D LIKE TO UNDERSTAND WHY PUBLICLY.
WE DO HAVE BOND FUNDS DEDICATED FOR HOUSING.
HAVE WE CONSIDERED UTILIZING THOSE BOND FUNDS FOR THE DALLAS HOUSING OPPORTUNITY FUND? GOOD AFTERNOON, COUNCILMEMBER WEST.
ROBIN BENTLEY WITH THE CITY MANAGER'S OFFICE.
YES. ALL TOOLS ARE ON THE TABLE.
WHAT WE'RE TALKING ABOUT TODAY IS OUR FIRST PHASE OF THE PLAN.
AND WHEN IT STARTED TO TRACK AND LIST CREDIT, NONE OF US KNEW IF IT WAS GOING TO WORK.
SO YES, I'M CONFIDENT WE'LL BE BRINGING A SECOND PHASE BACK TO COUNCIL AT SOME POINT IN THE FUTURE.
AWESOME. AND THEN MY LAST POINT IS I DON'T WANT TO GLOSS OVER THIS EITHER.
THE FACT THAT YOU HAVE SUCH A HIGH RATE OF WOMEN AND MINORITY CONTRACTORS AND YOU'RE REALLY EMPOWERING THESE, I THINK IN A LOT OF CASES, SMALLER SCALE DEVELOPERS TO GET STARTED AND GET INTO THE INDUSTRY, THAT'S JUST THAT'S JUST FANTASTIC AND GOOD JOB WITH THAT AS WELL.
I REALLY AM HAPPY TO SEE WHERE THIS HAS GONE.
DEVIN MAYOR PRO TEM ANY QUESTIONS OR QUESTIONS AT THIS TIME, MR. CHAIR? THANK YOU, CHAIRMAN RIDLEY.
JUST A COUPLE OF ADDITIONAL QUESTIONS.
I NOTICED IN ONE OF THE LATER PAGES OF THE PRESENTATION YOU MENTIONED THAT YOU WOULD BE OPEN TO ADDITIONAL CONTRIBUTIONS OR INVESTMENT BY THE CITY. AND I'D LIKE TO KNOW WHAT YOU WHAT MOTIVATED THAT STATEMENT? IS IT THAT YOU THINK THAT YOU WILL HAVE ADDITIONAL UNMET NEEDS FOR CAPITAL OR IS IT BECAUSE YOU THINK THAT ADDITIONAL INVESTMENT BY THE CITY WOULD BE APPROPRIATE TO CARRY THE GOALS OF THE HOUSING OPPORTUNITY FUND BEYOND THE CURRENT METRICS THAT YOU NEED TO MEET.
AND WHAT ARE YOU THINKING IN TERMS OF DOLLARS? I MEAN, I THINK IT'S BOTH.
WE'RE GOING TO MEET THE GOALS THAT ARE SET IN FRONT OF US.
NOW, THE $46 MILLION RAISED 1500 UNITS.
BUT WE WE CLOSED ON $13 MILLION OF NEW FUNDING IN NOVEMBER.
WE ALREADY HAVE DEALS LINED UP FOR THAT MONEY.
WE'RE GOING TO CLOSE THOSE DEALS AND BE OUT OF MONEY AGAIN UNTIL WE GET THE NEW INVESTORS ONLINE.
SO WE'RE IN NEED OF MORE MONEY.
THE MONEY IS A PROBLEM TO GET MORE DEALS DONE.
SO IF WE THIS COULD BE A $75 MILLION FUND, IF WE HAD MORE SUPPORT FROM FOUNDATIONS, THE CITY AND LARGER BANKS, WE'VE DONE A GREAT JOB WITH OUR REGIONAL BANKS SUPPORTING THE FUND. WE NEED SOME MORE SUPPORT FROM THE FOUNDATIONS FROM LARGER BANKS.
THIS COULD BE A BIGGER, MORE SUCCESSFUL FUND.
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BUT SO WE WERE APPROACHED WITH AN IDEA OF LEVERAGING DIFFERENT DOLLARS TO TRY TO MEET LOWER INCOME BANDS AND TO SUPPORT HOME OWNERSHIP.BUT AS FAR AS OUR GOALS HERE, WE'RE GOING TO MEET IT, RIGHT.
WITHOUT ADDITIONAL CITY INVESTMENT, I ASSUME IS WHAT YOU'RE SAYING.
THAT'S RIGHT. DO YOU ANTICIPATE CONTINUING TO WORK ON AFFORDABLE HOUSING PROGRAMS AFTER YOU MEET THOSE GOALS, OR WILL THAT BE THE END OF WHAT YOU'RE DOING? NO. SO, AS LOANS ARE REPAID, WE WILL RECYCLE THOSE THAT MONEY INTO ADDITIONAL AFFORDABLE HOUSING DEALS.
OKAY. AND AT THAT POINT, WOULD YOU BE LOOKING TO THE CITY TO ADD ADDITIONAL INVESTMENT IN ORDER TO ADD ADDITIONAL HOUSING UNITS BEYOND THOSE CURRENTLY CONTEMPLATED? WELL, I THINK AS THE CITY CONTINUES TO IDENTIFY THE NEEDS WITHIN THE CITY FOR AFFORDABLE HOUSING, I THINK THIS IS ANOTHER TOOL.
AND IF WE HAD MORE MONEY, WE COULD DEFINITELY GROW THE IMPACT.
WE HAVE DEVELOPERS THAT ARE IN THE QUEUE.
AND TO THAT END MISS BENTLEY, WE MIGHT PLANT THE IDEA IN STAFF'S MINDS ABOUT USING THE HOUSING TRUST FUND FOR AN ADDITIONAL INVESTMENT, SINCE THAT MONEY IS UNENCUMBERED FOR SPECIFIC PROJECTS.
I THINK THIS WOULD BE AN APPROPRIATE USE OF SUCH FUNDS.
I THINK PROBABLY JUST AS IMPORTANT TO THE FUND AS THE CITY'S FUNDING IS THAT WE EXPAND THE SCOPE.
SO, IT'S BEEN MENTIONED WHEN WE STOOD THIS UP, IT WAS JUST FOR MULTIFAMILY FOR 1500 UNITS.
IT WAS A VERY SPECIFIC ASK IN EXCHANGE FOR OUR FUNDING.
A NEW AREA OF WORK IN THE CITY AND BUILDING OFF OF THE HOUSING DEPARTMENT'S POLICY.
THANK YOU. CHAIRMAN NARVAEZ, THANK YOU AND THANK YOU ALL FOR THE PRESENTATION.
I'VE BEEN LISTENING TO ALL OF IT.
AND IT'S THE OPPORTUNITY FUND IS EXCELLENT, EXCELLENT, EXCELLENT, EXCELLENT.
AND I DO WANT TO JUMP ON THE COATTAILS OF MY COLLEAGUE HERE TO THE LEFT OF ME, MR. RIDLEY, ABOUT THE TRUST FUND, BECAUSE I THINK THAT WAS THE WHOLE IDEA WAS, YOU KNOW, SOMEBODY PAYS A FEE IN LIEU OF AFFORDABLE HOUSING IS THAT WE GET AFFORDABLE HOUSING. AND I KNOW, YOU KNOW, AT THE BEGINNING IT'S, YOU KNOW, A MILLION HERE, 2 MILLION, 3 MILLION IS A LOT OF MONEY, BUT IT'S NOT A LOT OF MONEY WHEN YOU'RE BUILDING AN APARTMENT COMPLEX OR BUILDINGS AND THINGS OF THAT NATURE.
BUT THEN IT'S HOW DO WE GET MORE FOLKS INTO HOUSING? BECAUSE IF YOU JUST SAW THE LAST CENSUS DATA, THE CITY OF DALLAS GREW LIKE A LITTLE OVER 2000 PEOPLE, LIKE 2200 PEOPLE.
AND WE DO HAVE A VERY STRONG, YOU KNOW, SINGLE FAMILY, YOU KNOW, RESIDENTIAL.
WE'RE GOING TO PROTECT THOSE. AND WE'VE GOT TO.
BUT AT THE SAME TIME IT'S LIKE WHERE CAN THIS DENSITY GO? WHERE CAN THIS LIGHT DENSITY GO.
BECAUSE NOT ALL NEIGHBORHOODS WANT EVEN LIGHT DENSITY.
BUT SOME DO. AND IT'S HOW DO WE DO ALL OF THAT? AND THAT'S WHERE THIS OPPORTUNITY FUND CAN REALLY HELP NAVIGATE.
YOU KNOW, THE DEVELOPERS YOU SAID LONG LIST.
AND THAT'S THE WAY THAT WE CAN HELP DO SOME OF THAT.
SO I LIKE WHAT MR. WEST SAID WITH SOME OF THE BOND FUNDS, THE TRUST FUND, I MEAN, WE HAVE DOLLARS AND ANYTHING THAT'S UNENCUMBERED.
HOW CAN WE GET IT INTO THE RIGHT HANDS OF THE RIGHT FOLKS THAT WANT TO BE PART OF THIS PROGRAM SO THAT YOU KNOW, I MEAN, EVEN COUNCIL MEMBERS NOW ARE AT A POINT, LIKE DEPENDING ON HOW MANY KIDS THEY HAVE, YOU KNOW, OR FAMILY MEMBERS THAT THEY, YOU KNOW, HAVE TO TAKE CARE OF COULD ACTUALLY, YOU KNOW, NOT REALLY.
WE CAN'T BECAUSE WE'RE COUNCIL MEMBERS.
BUT IF THAT WAS OUR SALARY, IT'S LIKE YOU COULD ACTUALLY QUALIFY FOR SOME TYPE OF ASSISTANCE.
AND IT'S DEFINITELY NOT GOING TO BE THE SAME $60,000 A YEAR IN 2030.
AND SO THAT'S WHERE, YOU KNOW, WE REALLY NEED TO START LOOKING AT THESE TYPES OF DIFFERENT TYPES OF PROGRAMS WHERE THERE IS CITY DOLLARS INVOLVED, BUT DOESN'T HAVE ALL THE CITY REQUIREMENTS OR THE FEDERAL REQUIREMENTS OR THE STATE REQUIREMENTS.
IF YOU KNOW THAT YOU CAN BYPASS BECAUSE IT'S A DIFFERENT FUND THAT CAN HELP GET THOSE FOLKS INTO THOSE TYPES OF PROGRAMS. KIND OF LIKE A CHOTO.
[00:35:01]
EVEN THOUGH YOU'RE NOT THE CHOTO, IT'S LIKE YOU'RE JUST THE FUNDER, RIGHT? AND SO YOU CAN HELP OUT WITH THOSE FOLKS AS WELL.SO I THINK THIS IS A GREAT PROGRAM.
RIGHT. AND IT'S GOING TO TAKE, YOU KNOW, A LOT OF MONEY TO GET THERE BECAUSE LIKE YOU SAID, IF YOU IF THERE WAS $75 MILLION IN THE FUND, YOU HAVE $75 MILLION WORTH OF PROJECTS READY, YOU KNOW, TO START HELPING OUT WITH IF THERE'S 100 MILLION, 200 MILLION, IT DOESN'T MATTER.
THEY JUST DON'T, YOU KNOW, THEY NEED THAT GAP.
AND WE CAN'T DO IT BY OURSELVES EITHER.
BECAUSE WE'RE NOT A BANK EITHER.
AND I'M DEFINITELY IF THERE'S ANY HELP NEEDED, I'M SURE OUR CHAIRMAN, OUR FEARLESS CHAIRMAN WOULD BE MORE THAN HAPPY TO, YOU KNOW, DO SOME CALLS OR HELP CONNECT US WITH THOSE BIG BANKS THAT MAYBE AREN'T, YOU KNOW, REALLY LISTENING SO MUCH.
I KNOW CHAIRMAN'S GOT SOME NUMBERS IN HIS PHONE.
WE DON'T USE A ROLODEX ANYMORE, BUT, YOU KNOW, LIKE.
AND PEOPLE ARE LIKE, WHAT'S A ROLODEX NOW OUT THERE? AND SO IT'S LIKE.
BUT, YOU KNOW, AND SO, SO DO THE REST OF US, RIGHT? SOME OF US HAVE CONNECTIONS TO DIFFERENT ENTITIES THAT MAYBE CAN HELP AS WELL.
EVEN THOUGH Y'ALL CUT ALL THESE AMAZING DEALS ALL THE TIME, IT'S LIKE THEY STILL, YOU KNOW, THEY GET A LITTLE, YOU KNOW, LIKE, OH, YEAH, I BETTER TAKE THAT CALL AND THEN WE'LL LET Y'ALL RUN WITH IT AFTER THAT.
BUT ANY HELP YOU ALL NEED, PLEASE.
I'M MORE THAN WILLING TO HELP, AND I DON'T WANT TO SPEAK FOR MY CHAIRMAN, BUT, YOU KNOW, BUT I'M SURE HE'S ALWAYS WILLING TO HELP ME, SO I'M SURE HE'S WILLING TO HELP ANYBODY ELSE, BUT ANY OF US, BECAUSE AFFORDABLE HOUSING IS, IS STILL ONE OF OUR TOP, TOP PRIORITY ISSUES HERE IN THE CITY OF DALLAS.
AND I WANT TO CATCH UP TO SAN ANTONIO.
YOU KNOW, AS QUICKLY AS WE CAN BECAUSE.
AND THAT'S GOING TO TAKE UNITS.
I HEAR THAT CHAIRMAN WEST MADE A STATEMENT.
ON THAT RECALL, BANK OF AMERICA HAD RENEWED THEIR CONTRACT.
DID I MISS THAT? I'M NOT SURE. I'LL CHECK WITH JACK.
I DON'T THINK SO. SO? SO I THINK WE'RE IN THE PROCESS.
I KNOW THEY HAD A BRIEFING IN THEIR COMMITTEE, BUT I DON'T THINK THEY SAW THE CONTRACT.
I KNOW THAT WE HAD SOME CONCERN WITH BANK OF AMERICA.
I JUST WANT TO PUT IT ON THE RECORD.
SO WILL YOU CHECK ON THAT AND MAKE SURE THEY ARE PART OF THIS ISSUES? BECAUSE I KNOW WHEN WE SPOKEN TO ALL THE BANKS IN THE CITY OF DALLAS RIGHT NOW, THERE'S NUMEROUS OF BANKS IN THE CITY OF DALLAS THAT HAVE THE SAME AMOUNT OF MONEY, BANK OF AMERICA. OR MAYBE MORE MONEY THAN BANK OF AMERICA IS WILLING TO DO.
AND I KNOW THAT I CAN THANK COUNCILMAN RESENDEZ, YOU KNOW, WHO BROUGHT ALL THE BANKS FORWARDS.
AND WE DID HAVE A GOOD BRIEFING ABOUT THE BANK.
SO, LET US CHECK ON THAT WITH BANK OF AMERICA AND WITH THAT FUNDING WITH THE BANKS.
YOU KNOW, I BELIEVE THERE ARE I'M LOOKING AT THAT CHASE.
I THINK WE DO BUSINESS WITH CHASE BANK.
I DON'T SEE THEIR NAMES ON THIS LIST.
ALSO, I DON'T WANT TO CALL ALL THE BANKS OUT, BUT THERE ARE SOME BANKS DOWN HERE.
IT'S NOT ON THIS LIST THAT WE DO BUSINESS WITH THE CITY OF DALLAS.
MAY I CLARIFY? NO, YOU'RE ABSOLUTELY RIGHT.
WE'RE IN CONTRACT FINALIZATION WITH JPMORGAN CHASE TO MOVE OVER TO THEM.
WE DID EXTEND OUR CONTRACT WITH BANK OF AMERICA.
SO WE'RE IN THIS WEIRD TRANSITION PERIOD RIGHT NOW, BUT WE AGREE WITH YOU.
WE SHOULD BE LOOKING AT ALL THE BANKS THAT WE DO BUSINESS WITH.
RIGHT. I KNOW WE'RE SEEING THE CONTRACT, BUT I WAS NOT ON YOUR COMMITTEE.
BUT I THOUGHT THAT WE EXTENDED FOR A REASON.
WE HAD TO EXTEND IT FOR A REASON.
BUT ALSO, I DON'T WANT TO BRING IT UP TO EVERYONE HERE.
SO EVERYBODY SHOULD BE THERE AND ALSO CHASE.
OKAY. THIS IS THE LAST QUESTION BECAUSE CHAIRMAN THANK YOU.
BUT THANK YOU FOR MENTIONING THAT AND STRENGTHENING THAT INTRODUCING IT.
FIRST OF ALL, MR. WEST, AND OF COURSE, CHAIR, YOU HAVE TO HAVE STRONGER SHOULDERS TO KEEP PUSHING IT OUT THERE.
YOU ALL KNOW WE HAVE A PROBLEM WITH GOING BEYOND 30, AND THAT IS SOMETHING THAT YOU KNOW THAT MY COMMISSIONER, MY RESIDENT CONSTITUENT, ROBERT PETRIE, AS WELL AS HIS CONSTITUENT TALKS ABOUT ALL THE TIME.
[00:40:04]
SO WE KNOW HOUSING IS A PART OF IT AND THE CHALLENGE WITH THESE BANKS, BUT WE'RE NOT TRYING TO COME DOWN AND DO A SHAKE, A SHAKE DOWN.I WANT TO MAKE SURE WE SAID THAT WE DON'T WANT TO COME ACROSS LIKE THAT.
WE DON'T WANT FOLKS TO TAKE THAT IN THE WRONG DIRECTION.
BUT WHAT WE WANT TO BE VERY CLEAR ABOUT IS THAT WE ARE A CITY, A DIVERSE CITY, AND WE ARE WAY PAST AND WE SHOULD BE, EVEN THOUGH WE ARE HAVING SOME CONCERN MOVING FORWARD WITHIN THIS NEXT ADMINISTRATION.
THERE'S NO REASON THAT WE CAN'T GET HOUSING AND BANKS ACROSS THIS TRINITY TO INVEST IN THE UNDERSERVED COMMUNITIES THAT THAT ARE REALLY SORELY PAINTING RIGHT NOW, BUT I WILL TELL YOU COMMITTEE AND TO CHAIR.
AND I HAVE TO DIGRESS JUST A SECOND.
SO PLEASE KNOW THAT IT IS GERMANE.
WE JUST CELEBRATED THE OPENING OF THE DREAM CENTER OVER HERE OFF OF EWING.
THAT'S DOING QUITE A BIT OF WORK IN THIS CITY.
THEY WERE SO EXCITED ABOUT THE NUMBER OF BANKS THAT THEY WERE BROUGHT ACROSS.
I THOUGHT WE HAD WON SEVERAL LOTTERIES BECAUSE THEY WERE ABLE TO GET BANKERS TO COME ACROSS AND INVEST IN THE COMMUNITY, SO IT'S SOMETHING WE HAVE TO KEEP PUSHING.
CHAIR AND CITY MANAGER NEEDS TO DO IT.
WE'RE NOT TRYING TO SHAKE THEM DOWN.
BUT IF THE PASTORS PICK UP MONEY ON A SUNDAY, TAKE IT TO A BANK ON MONDAY.
THERE'S A PROBLEM IN DALLAS, TEXAS.
SO WE MUST STAY STRONG AND DON'T BACK UP CHAIR.
AND I KNOW THAT YOU WANT, BUT IT'S ALL ABOUT DOLLARS AND CENTS.
SO OUR SENSE NEEDS TO FOLLOW OUR DOLLARS.
WE HAVE GOOD SENSE BUT WE CAN'T CONTINUE TO OPERATE WHERE COMMON SENSE IS NOT COMMON ANYMORE.
DOES THAT MAKE SENSE? ALRIGHT, WELL, THANK YOU SO VERY MUCH.
THANK YOU. CHAIR. CHAIRMAN, IF YOU DON'T MIND TOO, I, I NEED TO ALSO SAY THAT TREK HAS WORKED CLOSELY BOTH WITH BANK OF AMERICA AND CHASE, AND THEY BOTH ARE INVESTING IN OUR MILL CITY INITIATIVES WHICH ARE SOUTH OF 30.
SO THEY ARE PARTNERS IN DIFFERENT WAYS.
AND I KNOW THAT YOU'RE REALLY WORKING SOME OF THE NATIONAL RELATIONSHIPS.
BUT AGAIN, THEY ARE INVESTING IN OTHER AREAS OF OUR WORK, AND I REALLY APPRECIATE THAT.
BUT THE POINT IS, WE JUST LOOK AT THAT AGENDA.
WE DIDN'T SEE THEIR NAME HERE.
SO THEREFORE, YOU KNOW MORE INC DEVELOPMENT.
THANK YOU. LET'S DO THE NEXT ITEM PLEASE.
I THINK WE HAVE JOHN STEPHENS HERE WITH THE CITY OF DALLAS ECONOMIC DEVELOPMENT CORPORATION UPDATE.
I KNOW IT SAID A PRESENTATION.
BUT WE DO KNOW THAT THE ECONOMIC DEVELOPMENT CORPORATION IS GOING TO COME TO THE FULL COUNCIL FOR THE FULL BRIEFING SOMETIME IN FEBRUARY TO GET AN UPDATE, BUT SINCE THERE WAS SO MUCH STUFF GOING ON WITH THE ECONOMIC DEVELOPMENT CORPORATION, THE UPDATE, WE HAD SOME MORE PEOPLE ON THE BOARD.
SO IT GIVES US AN OVERALL VIEW OF WHAT'S GOING ON.
THANK YOU. LOOK CLOSE TO THE MIC, PLEASE.
CHAIRMAN ATKINS, WE'RE GLAD TO BE HERE.
AND THANKS FOR THE INVITATION.
AS YOU SAID, I'M JOHN STEPHENS.
I'M CURRENTLY ON THE COMMUNITIES FOUNDATION OF TEXAS BOARD OF DIRECTORS.
I THINK MOST OF YOU KNOW GILBERT.
HE'S THE VICE CHAIR AND SENIOR VICE PRESIDENT OF COMMUNITY BANKING AT BOK FINANCIAL.
AND HE'S A REALLY WELL-KNOWN COMMUNITY VOLUNTEER AND SERVANT TO THE COMMUNITY.
SHE'S ACTUALLY IN A MUCH WARMER PLACE, AND SO SHE SENDS HER REGARDS.
FIRST, LET ME START WITH CLEARLY OUR MISSION STATEMENT IS PRETTY SIMPLE AND STRAIGHTFORWARD.
IT'S TO PROMOTE DALLAS AS A GLOBALLY COMPETITIVE BUSINESS DESTINATION THAT FOSTERS ECONOMIC OPPORTUNITIES FOR ALL MEMBERS OF THE CITY.
OUR BOARD INCLUDES 15 DEDICATED MEMBERS OF THE LOCAL COMMUNITY FOR VOLUNTEERING THEIR TIME AND TALENTS TO BENEFIT THE EDC, THE CITY AND ITS CITIZENS. OUR MEMBERS HAVE EXTENSIVE EXPERIENCE IN LOCAL AND FEDERAL GOVERNMENT, FINANCE AND INVESTMENT, COMMUNITY BANKING, FUNDRAISING, THE ARTS, REAL ESTATE, ENTREPRENEURSHIP AND LEGAL MATTERS.
[00:45:03]
THIS PAST YEAR WITH THE CITY COUNCIL, WITH YOUR APPROVAL, WE ADDED TWO MEMBERS TO OUR BOARD MR. CHRIS HEINBAUGH, THE CHIEF ADVOCACY OFFICER OF THE AT&T PERFORMING ARTS CENTER, AND AMBASSADOR JEANNE JOHNSON PHILLIPS, THE FORMER U.S.REPRESENTATIVE TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT.
OUR OFFICERS INCLUDE MYSELF AS CHAIR, MR. GERST AS VICE CHAIR, MR. ARDO FUENTES AS THE SENIOR VICE PRESIDENT OF FINANCE AND INVESTMENTS AT STIFEL FINANCIAL SERVICES, AS OUR TREASURER AND MISS DANIELLE DUNCAN MORENO, WHO IS A PARTNER IN THE LOCAL LAW FIRM OF BELL AND NUNNALLY AS OUR SECRETARY, AND ALL 15 MEMBERS OF THE BOARD SHARE THE MISSION OF CREATING ECONOMIC GROWTH FOR THE CITY.
AS YOU KNOW, THE ORGANIZATION WAS ESTABLISHED IN LATE 2022 BY THE CITY COUNCIL WITH FORMATION DOCUMENTS, AN INITIAL INTERLOCAL AGREEMENT, A BOARD OF DIRECTORS AND ONE TIME FUNDING COMMITMENT.
UNLIKE MOST EDC'S THAT YOU MAY SEE AROUND THE STATE AND THE COUNTRY, WE DO NOT CURRENTLY RECEIVE ANY SHARE OF LOCAL SALES TAX REVENUES THROUGHOUT 2023.
THE BOARD ENGAGED IN A SERIES OF STARTUP TASKS, A CEO SEARCH PROCESS, AN OUTREACH EFFORT TO PROMOTE THE EDC AND THE CITY. WE PRESENTED A NUMBER OF CONFERENCES, INCLUDING THE INTERNATIONAL ECONOMIC DEVELOPMENT CONFERENCE THAT WAS HELD RIGHT HERE IN DALLAS AND MADE OUTREACH TO VARIOUS COMMUNITY GROUPS, GOVERNMENT REPRESENTATIVES AND BUSINESSES, AND COORDINATED WITH THE CITY MANAGERS AND THE CITY OFFICE OF ECONOMIC DEVELOPMENT. THIS PAST YEAR HAS BEEN VERY BUSY FOR US.
BUILDING RELATIONSHIPS WITH THE GOVERNOR'S ECONOMIC DEVELOPMENT OFFICE AND THE TEXAS EDC AND ATTENDING BUSINESS DEVELOPMENT TRIPS THEY CO-SPONSORED TO INDIA, TAIWAN, KOREA AND JAPAN.
WE CONTINUE OUR OUTREACH TO THE GOVERNOR'S ECON DEVELOPMENT OFFICE AND THE TEXAS EDC, AS WELL AS DALLAS BASED SITE SELECTORS AND REAL ESTATE DEVELOPMENT COMPANIES.
WE ALSO REACHED OUT TO NUMEROUS SUCCESSFUL EDC ACROSS TEXAS AND THE COUNTRY TO LEARN MORE ABOUT BEST PRACTICES AND WHAT WE CAN LEARN FROM THEIR PRIOR EXPERIENCES.
SOME OF OUR MOST IMPORTANT EFFORTS HAVE BEEN TO CONNECT WITH LOCAL COMMUNITY GROUPS, UNDERSTANDING THEIR GOALS AND HOW WE CAN COLLABORATE FOR THE BENEFIT OF DALLAS AND ITS CITIZENS.
MEETINGS WITH VISIT DALLAS, DALLAS SPORTS COMMISSION, DOWNTOWN DALLAS, INC., SOUTHERN DALLAS REPRESENTATIVES, THE LEADERSHIP AT UNT AND AT UTD AND NUMEROUS OTHER ORGANIZATIONS HAVE BEEN BOTH BENEFICIAL FOR OUR ORGANIZATION AND ENCOURAGING.
I HOPE YOU FOUND THAT OUR WORK ON THE 7800 STEMMONS PROCESS, AND OUR PARTICIPATION IN PITCHES FOR NEW BUSINESSES ARE GOOD EXAMPLES OF HOW WE CAN ADD VALUE THROUGH OUR COLLABORATION.
LINDA MCMAHON OFFICIALLY STARTED WITH US ON JULY 1ST.
AS WELL AS ESTABLISHING A LEAN BUT HIGH QUALITY STAFF.
WE HIRED AN AUDITOR, LEGAL COUNSEL AND AN EMPLOYEE BENEFIT PROVIDER.
WE PROVIDED THAT AUDIT, AS WELL AS OUR CURRENT YEAR BUDGET TO THE CITY EARLIER THIS YEAR.
WE HAVE ALSO INITIATED A FUNDRAISING FEASIBILITY STUDY AND AN EFFORT TO CREATE AN ONGOING REVENUE STREAM THAT WOULD LEAD TO OUR SELF-SUSTAINABILITY.
[00:50:05]
IMPORTANTLY, WE HAVE PUT TOGETHER A STRATEGIC PLAN THAT WILL BE OUR GUIDE FOR OUR EFFORTS GOING FORWARD.WE THEN ESTABLISH OUR GUIDING PRINCIPLES OF INVESTMENT AND GROWTH.
THAT'S INVESTMENT THROUGHOUT THE CITY.
SPECIFICALLY, THOUGH IN THOSE UNDEVELOPED AREAS, BE GLOBALLY COMPETITIVE, NOT JUST LOCALLY, NOT JUST THE DFW AREA, NOT JUST IN THE STATE OF TEXAS, NOT IN THE US, BUT GLOBALLY COMPETITIVE.
BE INCLUSIVE AND EQUITABLE, GROWTH AND OPPORTUNITY FOR ALL AND BE GREAT STEWARDS.
BE PRUDENT MANAGERS OF ALL THE RESOURCES, FINANCIALS AND OTHERS.
THIS LEADS TO OUR STRATEGIC INITIATIVES OF BUSINESS DEVELOPMENT AND MARKETING, ORGANIZATIONAL STABILITY AND REAL ESTATE AND DEVELOPMENT WITH OUR SPECIFIC MAJOR GOALS OF MARKETING THE CITY OF DALLAS GLOBALLY, ATTRACTING AND EXPANDING JOBS, INVESTMENT AND ECONOMIC GROWTH FROM BOTH EXPANSION OF CURRENT DALLAS BUSINESSES AND ATTRACTION OF NEW ONES, AND REIGNITE DALLAS OPPORTUNITIES AND REAL ESTATE TO MAXIMIZE CITYWIDE GROWTH, GROWTH AND INVESTMENT GROWTH AND JOBS AND GROWTH IN CITY REVENUES.
WE'RE OFF TO A GOOD START, BUT THERE IS MUCH MORE TO DO AND WE'LL NEED YOUR SUPPORT.
WITH THAT, I THANK YOU FOR YOUR TIME AND I'LL OPEN IT UP TO ANY QUESTIONS YOU MIGHT HAVE.
ANYONE THE BOARD HAD A QUESTION.
AND THANK YOU FOR THE PRESENTATION.
MR. STEVENS, I'M JUST CURIOUS.
YOU PROVIDED A LITANY OF THINGS THAT YOU HAVE DONE TO FORM THE EDC AND GET IT UP TO SPEED, AND I APPLAUD YOU FOR GETTING THAT DONE AND YOUR STAFF.
AND AT THIS POINT, I'M CURIOUS, HOW WILL YOU FIRST DEPLOY THAT INFRASTRUCTURE, THAT ORGANIZATION, TOWARD MEETING THE OBJECTIVES OF THE EDC? YEAH, SO I WOULD, AND I'LL ASK GILBERT TO JUMP IN AT ANY POINT IN TIME.
I'D SAY THE FIRST WE'RE ALREADY USING IT.
WE'RE ALREADY USING IT TO REACH OUT TO BUSINESSES, FOR EXAMPLE, AND TALK TO THEM ABOUT HOW THEY MIGHT CONSIDER EXPANDING THEIR LOCATIONS WITHIN THE ONES THAT ARE HERE IN DALLAS, EXPANDING THOSE WE'RE ALREADY USING IT TO DO OUTREACH MEETINGS WITH REAL ESTATE OWNERS AND DEVELOPERS, AND SEEING WHAT THEY MIGHT WANT TO DO OR WHAT OPPORTUNITIES THEY MIGHT SEE, OR WHAT WE COULD DO TO HELP THEM MAKE INVESTMENTS.
I CAN TELL YOU THAT SPECIFICALLY THROUGH SOME BUSINESS CONTACTS THAT WE'VE HAD SAT IN ON 3 OR 4 PITCHES THAT CAME THROUGH THE BUSINESS COMMUNITY TO PEOPLE OUTSIDE ABOUT MOVING AND INVESTING HERE AND TRYING TO MAKE THOSE PITCHES AND HAVE TALKED TO, AS YOU CAN IMAGINE, THINGS THAT WE HAVE TO KEEP CONFIDENTIAL, BUT HAVE TALKED TO A FEW COMPANIES THAT ARE INTERESTED IN MOVING THEIR HEADQUARTERS HERE.
I THINK THE KEY FOR US IS IN THE COLLABORATION WITH COMMUNITY LEADERS, WITH THE BUSINESS COMMUNITY AND WITH THE CITY TO MAKE SURE THAT WE PUT TOGETHER A PACKAGE AND PRESENT OPPORTUNITIES THAT MAKE SENSE FOR EVERYBODY.
DO YOU HAVE ANY PLANS TO CREATE PUBLICITY FOR YOU AND YOUR MISSION? FOR EXAMPLE, IN AIRPORTS AND OTHER CITIES THAT I TRAVEL TO? I HAVE SOMETIMES SEEN A PLACARDS ABOUT THEIR LOCAL ECONOMIC DEVELOPMENT CORPORATION OR WHAT ARE YOU PLANNING TO DO IN THAT ARENA? YEAH. RIGHT NOW WE'RE GOING THROUGH A MARKETING PLAN DEVELOPMENT, AND THOSE WILL BE ONE OF THOSE CONSIDERATIONS.
I WILL ALSO MENTION TO YOU, THOUGH, THAT WITHIN THE SCOPE OF THE STEWARDSHIP AND BEING CAREFUL, WE ARE BEING CAREFUL WITH THE DOLLARS IN TRYING TO MAKE SURE THAT WHATEVER MARKETING DOLLARS WE DO SPEND HAS A RETURN ON IT.
WHAT I WILL TELL YOU, THOUGH, IS WE DID PRESENT AT THE INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL.
I MEAN, WE HOSTED AN EVENT AND PRESENTED THERE.
WE DID PARTICIPATE IN THE AFRICAN US AFRICAN COUNCIL.
WE HAVE TRAVELED TO ALL THOSE COUNTRIES.
AND QUITE FRANKLY, SOME OF THAT, SOME OF THAT TRAVEL MONEY WAS DONATED.
YOU KNOW, SO AT VERY LOW COST WITH THE GOVERNOR.
SO WE ARE REALLY WORKING TO DO JUST WHAT YOU'RE SAYING.
WE HAVE NOT DONE WHAT YOU, WHAT YOU SPECIFICALLY GAVE AN EXAMPLE OF.
[00:55:01]
I DON'T WANT TO, I DON'T WANT TO MISLEAD ANYBODY.AND WE'RE JUST CAREFUL ABOUT THE DOLLARS.
AND WE DO HAVE A FOCUS ON THE SOUTHERN SECTOR.
WE THINK THERE'S SOME OPPORTUNITIES IN THE SOUTHERN SECTOR THAT ARE IMPORTANT.
AND WHAT WILL YOUR LONG TERM FUNDING SOURCE BE? A COUPLE OF THINGS. ONE, WE COULD, WE WOULD THINK OF GETTING, IF YOU WILL, IS INVESTORS, WHAT WE CALL AS INVESTORS.
SOME WOULD SUGGEST THEY'RE MEMBERS, BUT GROUPS OF THE BUSINESSES AND OTHER POTENTIALLY NONPROFIT FOUNDATIONS WHO FIND THAT OUR WORK WOULD HELP THEM IN THEIR ECONOMIC OR IN THEIR, YOU KNOW, SOCIAL GOALS OF THE FOUNDATIONS AND GENERATING JOBS, GENERATING ECONOMIC RESULTS FOR OUR CITIZENS AND USING THAT AS A KIND OF A MEMBERSHIP OR AN INVESTMENT ROLE.
AND THEN WE'LL SET UP SPECIFICALLY TO GIVE YOU AN EXAMPLE, WE MIGHT HAVE A CLUSTER AROUND ARPA-H OR THE BIOTECH MEDICINE THAT, YOU KNOW, THE FEDERAL GOVERNMENT AWARDED AND THAT THAT OFFICE IS LOCATED AT PEGASUS PARK.
SO MAYBE HAVING ONE THERE OR WITH TECHNOLOGY.
THE ARPA TECHNOLOGY FUND WAS ESTABLISHED AT SMU.
AND SO MAYBE HAVE A TECHNOLOGY CLUSTER AND FORM IT AROUND THOSE KINDS OF SPECIFIED CATEGORIES TO GET PEOPLE TO PARTICIPATE AND TO SPONSOR. AND THEN QUITE FRANKLY, COMMIT TO CONTRIBUTIONS.
WE REALLY NEED TO HAVE A LOT MORE SUCCESS.
EXCUSE ME, A LOT MORE SUCCESS BEFORE I CAN FEEL LIKE WE'RE A SUSTAINABLE, LONG TERM ORGANIZATION.
SO THE CITY PROVIDED SOME SEED MONEY FOR YOUR ESTABLISHMENT, DID IT NOT? WHAT WAS THAT AMOUNT? 8 MILLION.
THAT WAS $7 MILLION. 7 MILLION? YEAH. THANK YOU.
AND, COUNCILMAN, IN THE LONG TERM, WE KNOW THAT WE'RE GOING TO MAKE MONEY FROM DEALS.
WE'RE GOING TO BE DOING DEALS, MAKING DEALS HAPPEN, AND ULTIMATELY, WE'RE GOING TO HAVE TO BE SELF-GENERATING REVENUE ON OUR OWN, NOT RELYING ON THE CITY, NOT RELYING ON, YOU KNOW, PHILANTHROPIC DOLLARS.
THIS WILL ALWAYS BE A PART OF IT.
BUT WE'RE GOING TO ACTUALLY BE GENERATING DOLLARS FROM BUSINESSES, FROM DOING BUSINESS ACTIVITIES.
MOST OTHER EDCS AROUND THE STATE GET MONEY FROM THE SALES TAX.
THAT BEING THE ONE OF THE SALES TAXES, WE CAN'T.
WE'RE NOT AVAILABLE TO DO THAT.
THE OTHER WAY THEY DO IT IS BY MANAGING PROPERTIES AND DOING TRANSACTIONS.
SOME OF THEM OWN PARKING FACILITIES.
THEY OWN JUST A VARIETY OF THINGS.
WE'RE NOT IN THAT BUSINESS YET, NOR NO, BUT WE'LL SEE WHERE THINGS TAKE US OVER TIME.
THANK YOU, MR. CHAIR. THANK YOU.
ANYONE ELSE? VIRTUAL WORLD? CHAIRMAN WEST.
I AM CHIMING IN ON THIS PARTICULAR ELEMENT.
I KNOW THAT, YOU KNOW, THERE ARE SOME REAL WAS SOME RELUCTANCE, AND I'M STILL HOPING THAT THIS IS ABLE TO GET GOING IN SUCH A WAY THAT WE CAN PUT IT ON STEROIDS.
BECAUSE IT'S SO SORELY NEEDED AS WE MOVE FORWARD.
AND I KNOW THAT MANY OF US WILL NOT BE ON THE COUNCIL WHEN YOU REALLY SEE IT MATURE, BUT I HOPE THAT WE CAN DO SOMETHING TO IT, EVEN TO PUT AN INFUSION OF SOME CASH SOMEWHERE ELSE TO HELP.
ARE THEY? ARE THESE MEMBERS PAID? NO. WANT TO COME CLOSE TO THE MIC? THEY WANT TO MAKE SURE OUR BOARD MEMBERS ARE NOT.
AND THEY PUT IN THEY DO PUT IN A LOT OF TIME.
GILBERT. GILBERT PUTS IN A LOT OF TIME ON THIS.
AND IT'S A REAL VALUABLE TIME.
TIME WE COULDN'T AFFORD TO PAY FOR IT.
TIME IS YOUR TIME AS A VOLUNTEER AND EXPERTISE.
YES. AND SO WE APPRECIATE THAT.
BUT I JUST SIMPLY HOPE THAT'S ALL I HAVE RIGHT NOW IS HOPE.
AND THAT'S ALL THE PEOPLE HAVE IS HOPE.
RIGHT NOW, OUR PEOPLE ARE STILL AT THAT POINT WHERE THEY DON'T SEE.
SO IT'S HARD FOR THEM TO HAVE FAITH IN WHAT WE ARE TALKING ABOUT.
MEMBERS OF THIS COUNCIL AND THE STAFF MEMBERS, THEY'RE STILL WANTING TO SEE SOMETHING.
AND THEY WANT US TO COME THROUGH.
[01:00:10]
MUST GET OUT OF OUR OWN WAY SO THAT WE CAN HELP THE PEOPLE WHO DEPEND ON US THE MOST.AND COUNCILMAN ALSO WANT TO ADD WE WORK CLOSELY WITH THE CITY'S ECONOMIC DEVELOPMENT DEPARTMENT.
THEY ARE A GREAT PARTNER FOR US.
I MEAN, THERE ARE RESOURCES THERE.
YOU KNOW, THERE ARE CERTAIN THINGS STATUTORILY THAT THE CITY HAS CONTROL OVER.
AND ON ANOTHER NOTE, I DO WANT TO MENTION COUNCILMAN RIDLEY.
I AM ONE OF THOSE BANKS THAT IS A MEMBER OF THE HOUSING FUND.
BY THE WAY, MY BANK, BANK, BOK, BANK OF OKLAHOMA, BANK OF TEXAS.
IT WAS ON THE HE WANTS TO MAKE SURE EVERYBODY KNOWS HE WAS ON THAT.
IT WAS ON THE PRESENTATION WITH THAT.
NUMBER ONE, I KNOW WE GOT AN ECONOMIC DEVELOPER CORPORATION.
THE STATE OF TEXAS HAS THE ECONOMIC DEVELOPER CORPORATION ALSO.
AND IT KIND OF WORKED A LITTLE DIFFERENT.
I KNOW OTHER CITY HAS ECONOMIC DEVELOPMENT CORPORATION.
YOU KNOW WE COMPETE AGAINST BUT THEY HAVE A FUNDING SOURCE.
SO, THEREFORE, THE BIGGEST PROBLEM THAT WE HAVE IN THE CITY OF DALLAS, WHEN WE ESTABLISHED THE ECONOMIC DEVELOPMENT CORPORATION, WE DON'T HAVE A CONTINGENT FUNDING SOURCE FOR THAT ESTABLISHMENT.
SO, BUT ALSO, I WAS HEARING ABOUT MARKETING ON VERY, VERY PARTICULAR ABOUT MARKETING.
WE CANNOT CHANGE THAT MARKETING.
IF WE DON'T, WE'RE GOING TO MISS BRAND OUR WHOLE OPPORTUNITY.
SO, ROBIN, I GOTTA MAKE SURE THAT I PUT THAT OUT THERE AND MARKETING THE ONE THING, ONE THING THAT WE HAVE NOT DONE, I DO I DO KNOW THAT ECONOMIC DEVELOPMENT IS DOING A GREAT DEAL OUTSIDE MARKETING, YOU KNOW, GOING INTO EAST COAST, WEST COAST OR WHEREVER ELSE.
IT TAKES A WHOLE LOT OF MONEY TO MARKET YOUR PRODUCT.
THEY DON'T COME TO SUDBURY BECAUSE OF SUDBURY.
WE GOTTA DO A BETTER MARKETING PROCESS, BUT ALSO THE FUNDING.
SO, I KNOW THE OTHER CITY, THEIR FUNDING SOURCE WITH SALES TAX, EVERYTHING ELSE.
SO, ROBIN, I KNOW YOU'RE OVER THERE, ROBIN, BUT FOR ALL OF THIS ECONOMIC DEVELOPMENT CORPORATION TO GO FORWARD, THEY GOT TO HAVE SOME KIND OF FUNDING SOURCE.
THEY GOT TO DEPEND ON THE FUNDING SOURCE.
YOU CANNOT OPERATE A BUSINESS ON VOLUNTEERS.
YOU KNOW, VOLUNTEERS CAN DO SO MUCH WORK.
YOU KNOW, IF YOU HIRE SOMEBODY, YOU CAN'T FIRE THEM BECAUSE THEY DO THE JOB.
SO, WE GOT TO FIND SOME KIND OF WAY TO HAVE ADMINISTRATION.
I KNOW WE GOT A NEW CEO THERE, BUT YOU GOT TO HAVE ADMINISTRATION.
YOU GOT TO HAVE PEOPLE ACTUALLY WORKING THERE.
SO, THEREFORE, I KNOW YOU'LL COME IN FEBRUARY.
YOU KNOW, TO GIVE US AN UPDATE.
I ADVISE YOU TO GIVE US A BUDGET UPDATE.
I'LL ADVISE YOU TO SAY, WHAT ARE YOU GOING TO TAKE FOR THE NEXT ONE YEAR? THE NEXT FIVE YEARS? THE NEXT TEN YEARS, YOU KNOW.
DO YOU HAVE TO HIRE PERSONNEL? YOU KNOW? IF SO, WHAT TYPE OF PERSONNEL? HOW SO? WHERE YOUR OFFICE IS GOING TO LOCATE AT.
WHAT IS YOUR STRUCTURE? HOW ARE YOU GOING TO MAINTAIN? YOU KNOW, I DON'T WANT YOU TO HIRE A GREAT CEO.
SO YOU GOT TO BRING THAT TO US.
SO THEY GIVE PLENTY OF TIME IN FEBRUARY WHEN YOU COME HERE TO HAVE THAT BUDGET LINE UP.
WHAT ARE YOU GOING TO BE THE NEXT YEAR, THE NEXT FIVE YEARS? THE NEXT TEN YEARS? IF WE DON'T HAVE THAT, I WON'T BE SITTING HERE.
IT TOOK ME ALMOST 20 YEARS TALKING ABOUT ECONOMIC DEVELOPMENT CORPORATION.
AND SO, WHAT'S GOING TO HAPPEN AFTER THAT.
SO, WE'RE GOING TO SPEND WE GOING TO INVEST $7 MILLION.
ALL OF A SUDDEN, WE DON'T HAVE A FUNDING SOURCE.
WE'RE GOING TO KILL THE GOOSE THAT LAYS THE GOLDEN EGGS OR WHAT.
SO, ROBIN. SO THEREFORE, ROBIN, I KNOW, BUT WE DON'T WANT TO KILL THE ECONOMIC DEVELOPMENT CORPORATION, THE ECONOMIC DEVELOPMENT COMMITTEE THAT WE HAVE, THE ECONOMIC DEVELOPMENT BUSINESS THAT WE HAD A CITY OF DALLAS WITH THE PUBLIC PRIVATE PARTNERSHIP.
SO, WE GOT TO BALANCE THE TWO OUT.
WE GOT TO BALANCE. WE GOT TO WORK TOGETHER.
SO, HOW IS THAT GOING TO FIT IN? I DON'T KNOW, BUT PLEASE, IN FEBRUARY, PLEASE HAVE SOME KIND OF FOUNDATION TO HOW WE'RE GOING TO GO FORWARD.
AND CHAIRMAN ATKINS, I COMMIT TO YOU THAT WE WILL DO THAT.
[01:05:06]
COMMITTEE CALLS.IT TAKES TIMES TO GROW THE TREE AND, AND YOU KNOW, AND, YOU KNOW, HARVEST THE FRUIT.
AND SO WE NEED WE NEED TIME TO DO THAT.
SO, WE NEED TO HAVE THIS LONG STANDING NATURE.
AND WE WILL COMMIT TO GIVE YOU AN UPDATE.
SO, THERE'S AND REWIND COMPLETELY.
YEAH. REWIND SAID THAT WE ARE IN THE BUDGET RIGHT NOW.
SO IS THIS GOING TO BE IN OUR BUDGET FOR NEXT YEAR? YOU KNOW I WON'T BE HERE, BUT THE BUDGET SEASON ALREADY STARTED SO I DON'T KNOW THE ECONOMIC DEVELOP CORPORATION GOING TO ASK HEY WE NEED X AMOUNT OF DOLLARS.
SO WE NEED A PLAN, WE NEED A BUSINESS PLAN.
UNDERSTANDING WE DON'T HAVE THAT SALES TAX, NO SALES TAX DOLLARS.
SO WE'RE LOOKING AT, AS JOHN MENTIONED, WHETHER IT BE INVESTMENTS, WHETHER IT BE MEMBERSHIPS, WHATEVER THE CASE MAY BE, WE ARE LOOKING AT WAYS TO MAKE SURE WE'RE ECONOMICALLY VIABLE SO WE CAN CONTINUE TO GROW IN THE FUTURE.
WE'VE SAT DOWN WITH OVER 20 SEPARATE FUNDERS IN THE LAST THREE MONTHS, TWO MONTHS.
OKAY. AND TALK TO THEM ABOUT IT.
WE JUST I WANT TO MAKE SURE I DON'T OVERSTATE HOW MUCH FACTUAL KNOWLEDGE OR COMMITMENTS WE HAVE YET.
SO IN THE ECONOMIC COOPERATION, ARE YOU LOOKING FOR AN INVESTOR TO GET A RETURN ON THEIR DOLLARS, OR HOW ARE YOU TRYING TO LURE THE INVESTORS, THE FUNDERS? I MEAN, YOU KNOW, WHAT IS THE? WHAT IS THE CATCH? YEAH, IT'S ALL GOING TO DEPEND ON EACH INDIVIDUAL SOURCE.
SOME OF THE ORGANIZATIONS THAT I'VE SEEN MAY NOT, MAY WANT TO DO FUND MAYBE SPECIFIC PROJECTS OR SPECIFIC ONE ORGANIZATION I'VE BEEN INVOLVED WITH, HIS HAS FUNDED A FUNDRAISING PROGRAM TO ALLOW THE ENTITY TO GET.
SO THEY'LL PAY ALL THE FEES WITH REGARD TO FUNDRAISING.
AND THEN YOU GUYS GOT TO GO DO THAT.
SO WE'RE GOING TO BE FLEXIBLE.
AND THESE INCLUDE CORPORATIONS.
THESE INCLUDE PRIVATE WEALTH INDIVIDUALS.
AND THESE INCLUDE NONPROFIT FOUNDATIONS.
BUT, COUNCILMAN, TO KIND OF CLARIFY YOUR QUESTION, WE'RE NOT SAYING YOU INVEST X AMOUNT OF DOLLARS.
YOU GET X AMOUNT OF RETURN, A FIXED RATE OF RETURN, ANYTHING LIKE THAT.
WE'RE TALKING ABOUT BRINGING OPPORTUNITIES TO DALLAS BY BRINGING THESE BUSINESSES TO DALLAS, THE BENEFIT IT CAN HAVE ON THOSE POTENTIAL INVESTORS, WHETHER IT BE A CLIENT THAT HAD, THAT BRINGS NEW CLIENTELE TO THEM AND TO THEIR BUSINESS, SUPPORT THEIR BUSINESSES.
THE EXISTING BUSINESSES THAT THAT ARE HERE, YOU KNOW, A VIBRANT DALLAS, A VIBRANT AND PARTICULARLY A VIBRANT IN THE UNDERSERVED AREAS AND A MORE VIBRANT SCHOOL SYSTEM, SAFETY SYSTEM AND SO FORTH THAT COMES WITH THAT IS GOING TO BENEFIT THOSE BUSINESSES AND THEIR EMPLOYEES THAT ARE ALREADY HERE.
SO IT'S NOT A, IT'S NOT A, IT'S A VERY STRAIGHTFORWARD STORY.
IT MAY ALSO HELP THEM WITH ADDITIONAL CUSTOMERS.
AND DEPENDING UPON WHAT BUSINESS YOU'RE IN, YOU KNOW, THEY BUY MORE ELECTRIC, THEY BUY MORE POWER.
THEY BUY MORE PHONES. THEY BUY MORE FOOD.
YOU KNOW, BRINGING JOBS AND ECONOMIC GROWTH.
OKAY. AND TO, TO MAKE MYSELF CLEAR, YOU KNOW, I KIND OF LOOK AT CIVITAS FOR THE GOOD EXAMPLE.
YOU KNOW. YOU KNOW, WHEN WE START SILVER TOPS, IT WAS A SMALL BUSINESS.
YOU KNOW, THE PEOPLE INVEST MONEY BASED ON RETURN ON THEIR, IN DOLLARS, WHATEVER.
I'M JUST TRYING TO MAKE SURE THAT WE BUILD.
I MEAN, IN ORDER FOR THE ECONOMIC DEVELOPMENT CORPORATION TO BE A BIG ASSET TO THE CITY OF DALLAS, WE'RE TALKING ABOUT HUNDREDS OR HUNDREDS OF MILLIONS OF DOLLARS AND BILLIONS OF DOLLARS IN ORDER TO BE SHORT OF GOOD ON THEIR BALANCE SHEET.
SO THEREFORE, YOU DON'T HAVE TO ANSWER THE QUESTION.
WE'RE LOOKING AT A RETURN ON OUR INVESTMENT THAT GOT TO BE RETURN ON INVESTMENT.
SO THEREFORE, THERE'S GOT TO BE INVESTMENT MEMBERSHIP TO MAINTAIN THE FOUNDATION CONSTANTLY.
WE DON'T HAVE TO. WE DON'T NEED IT RIGHT NOW.
BUT THAT'S MY THOUGHT RIGHT THERE.
GIVE YOU BACK A CELLPHONE FROM A BANKER, YOU KNOW?
[01:10:02]
NO, WE CLEARLY UNDERSTAND WHAT WE'VE GOT.WE HAVE TO COME UP WITH A SOLUTION FOR LONG TERM FINANCIAL VIABILITY OF THE ORGANIZATION.
AND THAT'S WHAT WE'RE AGGRESSIVELY WORKING ON TO DO THAT AND THAT.
AND THAT WON'T COME FROM JUST ONE AREA.
IT MAY COME SOME MAY COME FROM INVESTMENTS; SOME WILL COME FROM EARNED INCOME.
IT'LL BE A VARIETY OF REVENUE SOURCES THAT WILL COMPILE TO MAKE SURE THAT WE'RE AN ONGOING ENTITY.
RIGHT. CHAIRMAN RILEY, LAST QUESTION.
GO AHEAD. WELL, IT'S MORE A REQUEST THAN A QUESTION.
MR. CHAIR, GIVEN THE IMPORTANCE OF THIS BRIEFING, AND I ASSUME IT'S AN ANNUAL UPDATE, I'D LIKE TO REQUEST THAT THESE GENTLEMEN OR OTHER REPRESENTATIVES OF THE EDC RETURN TO THIS COMMITTEE IN SIX MONTHS TO GIVE A SUPPLEMENTAL UPDATE, PARTICULARLY ON THE MECHANISMS THAT YOU IDENTIFY FOR LONG TERM SUSTAINABLE FUNDING.
YES, SIR. NO PROBLEM WITH THAT.
WITH THAT, WE'RE GOING TO GO TO THE ITEM BRIEFING C.
THANK YOU ALL VERY MUCH FOR YOUR TIME.
GOOD AFTERNOON CHAIR. I'M KEVIN SPATH, INTERIM DIRECTOR OF THE OFFICE OF ECONOMIC DEVELOPMENT.
ITEM C IS A MEMO REGARDING AN AGENDA ITEM ON WEDNESDAY.
SEEING NONE, LET'S GO TO ITEM D.
THANK YOU, CHAIRMAN. ITEM D IS ALSO INFORMATIONAL.
TO JOIN ME REAL QUICK IN CASE THERE'S QUESTIONS DIRECTED TO HIM.
BUT THIS IS ABOUT ROLAND PARISH PARK.
THIS IS PHASE ONE OF THE IMPROVEMENTS TO CREATE THE PARK.
AND ASSUMING FAVORABLE ACTION BY THE BOARD THIS THURSDAY, IT WOULD BE COMING TO JANUARY 22ND CITY COUNCIL FOR FULL ACTION, SO THE PARKS AND RECREATION DEPARTMENT IS A LEAD DEPARTMENT TO DELIVER THE PARK, INCLUDING THE DESIGN AND CONSTRUCTION OF PHASE ONE OF ROLAND PARISH PARK.
THAT SCOPE INCLUDES A WHOLE BUNCH OF STUFF, INCLUDING SITE PREPARATION, DEMOLITION, GRADING, TREE PRESERVATION, STORMWATER IMPROVEMENTS, WATER IMPROVEMENTS, WASTEWATER IMPROVEMENTS, AND ALL OF THE VERTICAL IMPROVEMENTS TO TURN THAT AREA INTO A PARK, INCLUDING AN ATHLETIC FIELD WITH A TRACK, BLEACHERS, SPORTS LIGHTING, BASKETBALL COURT, A PICNIC PAVILION, CHILDREN'S PLAYGROUND, WALKING TRAILS, OFF STREET PARKING LOTS, LANDSCAPING, IRRIGATION, AND ALL THE NECESSARY PARK ACCOUTERMENTS.
AND SO DURING THE DESIGN PHASE OF THIS PARK THE OFFICE OF ECONOMIC DEVELOPMENT DID COORDINATE WITH THE PARKS AND RECREATION DEPARTMENT TO ENSURE THAT THE STREETSCAPE IMPROVEMENTS ALONG KEIST EAST AND CEDARCREST BOULEVARDS WERE NOT IGNORED, AND SO WE'VE ENSURED THAT THE SCOPE OF THE PROJECT WILL INCLUDE NICE NEW WIDE SIDEWALKS ALONG KEAST AND CEDARCREST, ALL OF THE NECESSARY ADA IMPROVEMENTS, AND LOTS OF NEW PEDESTRIAN SCALE LIGHTING ALONG THE PERIMETER OF THE PARK.
SO THE PARK DEPARTMENT DID ISSUE.
THEY FINISHED DESIGN IN SEPTEMBER.
THEY ISSUED A COMPETITIVE SEALED PROPOSAL IN SEPTEMBER.
AND SO, THE PARK AND RECREATION DEPARTMENT HAS SELECTED THE MOST, WHAT DO YOU CALL IT? THE MOST ADVANTAGEOUS, BEST VALUE PROPOSER OUT OF THREE.
AND SO THAT'S THE CONTRACT THAT THEY'LL BE BRINGING TO THE PARK BOARD ON THURSDAY.
IT'S AN AMOUNT NOT TO EXCEED $8,008,297.
THE POINT OF THE MEMO HERE IS, OF COURSE, BECAUSE THE PARK AND RECREATION DEPARTMENT BASED ON THAT $8 MILLION CONSTRUCTION COST, REALIZED VERY RECENTLY THAT THEY WERE A LITTLE BIT SHORT ON AVAILABLE FUNDING.
AND SO THEY APPROACHED THE OFFICE OF ECONOMIC DEVELOPMENT WITH A REQUEST TO COVER THAT GAP.
[01:15:01]
SO WE'RE RECOMMENDING $3 MILLION OF INFRASTRUCTURE INVESTMENT FUND BE USED TO FILL THE FUNDING GAP, SO THAT THE PARKS AND RECREATION DEPARTMENT CAN DELIVER THIS, THIS SCOPE OF THIS PROJECT WITHOUT ANY REDUCTION OR COST CUTTING OR VALUE ENGINEERING.AND SO THAT'S THE ITEM AVAILABLE FOR ANY QUESTIONS.
CHAIRWOMAN, ON THE THINGS IN YOUR DISTRICT, WE APPRECIATE THAT ACKNOWLEDGMENT AT THIS POINT I'M I REALLY AM MORE THAN I CAN'T FIND THE WORD RIGHT NOW BECAUSE IT'S PAST EXCITEMENT.
YOU ALREADY KNOW THAT MR. O'CONNOR AND MR. SPATH. I'M JUST REALLY BEYOND THAT.
IT'S ALMOST LIKE THE DRONE SHOW AT THE FAIR PARK.
I MEAN, WHEN YOU ALL OF THESE VISIONS OF OK, YOU PLEASE REPEAT THAT WORD AGAIN.
MR. KEVIN SPATH ACCOUTERMENTS.
ACCOUTERMENTS? I DON'T SPEAK FRENCH, BUT THAT'S THE WORD I HEARD.
BIG WORD. I KNOW I'M VERY FAMILIAR WITH IT.
I WAS VICE PRESIDENT OF MY FRENCH CLUB.
I'M WEAK BECAUSE I'M VERY EXCITED ABOUT THIS.
AND. BUT JUST IT IS NOT ABOUT ME.
SO I WOULD JUST SAY TO CHAIRMAN, THIS IS A VERY IMPORTANT INVESTMENT TO THE CHAIR, TO THE CHAIR COMMITTEE MEMBERS RIGHT NOW, I COULDN'T, I CAN'T EVEN PIN THE EMOTIONS BEHIND THIS INVESTMENT AND WHAT WILL COME TO THAT COMMUNITY THAT'S LONG OVERDUE. SO I'LL BE WORKING ON PENNING A RESPONSE, I THINK BETWEEN ME AND MY.
SOMETIMES I TRY TO MAKE US LAUGH BECAUSE YOU HAVE TO LAUGH SOMETIMES TO KEEP FROM CRYING.
AND THIS NEIGHBORHOOD HAS BEEN MOURNING FOR YEARS.
SO THANK YOU FOR BRINGING IT TO US.
THANK YOU, CHAIR, FOR SUPPORTING IT.
AND THANK YOU SO MUCH DAY. I BELIEVE IN DALLAS.
MICHELLE STEWART, I KEEP TELLING EVERYBODY IT'S 2025 AND OUR BRAINS ARE JUST KIND OF CLICKING IN, GETTING BACK SLOW. IT'S SLOW.
I JUST WANT TO SAY CONGRATULATION TO THE PARKS DEPARTMENT AND THE ECO DEV DEPARTMENT FOR WORKING TOGETHER AND WHAT A WONDERFUL, WONDERFUL SPOT TO DO THAT I HAD THE PRIVILEGE OF BEING IN THIS PARK I THINK SEVERAL MONTHS BACK, AND IT IS A BEAUTIFUL PIECE OF LAND.
THE TREES ARE BEAUTIFUL, AND I AM ABSOLUTELY SURE THAT THIS NEIGHBORHOOD WILL JUST LOVE THIS SPACE.
AND I LOOK FORWARD TO SEEING THOSE IMPROVEMENTS.
AND CONGRATULATIONS TO EVERYBODY WHO'S WORKED ON IT.
MOST OF ALL, CONGRATS TO CHAIR ARNOLD.
CHAIRMAN REALLY? THANK YOU, MR. CHAIR.
JUST SOME PROCEDURAL QUESTIONS.
WHY WAS THERE A $3 MILLION GAP? IS IT BECAUSE THE BIDS CAME IN THAT MUCH HIGHER THAN THE COST PROJECTIONS THE PARK DEPARTMENT PROVIDED? YES, SIR. RYAN O'CONNOR, DEPUTY DIRECTOR OF DALLAS PARKS AND RECREATION.
THIS THIS PROJECT HAS BEEN A RATHER LENGTHY PROJECT.
BUT AS COUNCILWOMAN ARNOLD WILL DESCRIBE, IT'S GOING TO BE HUGELY IMPACTFUL.
BUT IT DIDN'T HAVE A VERY NEAT FUNDING SOURCE, LIKE A LOT OF PROJECTS THAT WE DO AROUND HERE, SUCH AS A BOND PROGRAM, IT WAS REALLY A KIND OF AMALGAMATION OF EQUITY FUNDS AND OTHER SOURCES.
BUT THE BOTTOM LINE WAS THIS IS GOING TO BE ABOUT A $10 MILLION PROJECT, AND WE JUST DIDN'T HAVE THE FUNDS AVAILABLE TO DO ALL THE SCOPE THAT WE NEEDED TO DO FOR THAT COMMUNITY. AND SO THEREFORE, WE WORKED VERY CLOSELY WITH THE ECONOMIC DEVELOPMENT, AND THEY WERE ABLE TO PROVIDE A SOLUTION.
SO IS THIS A SAY FIRST TIME EVENTS THAT YOU'VE HAD TO GO TO ECHO DEV TO OBTAIN GAP FINANCING? OR IS THIS? IS THERE A PRECEDENT FOR THIS? YES, SIR. THERE IS.
ECONOMIC DEVELOPMENT HAS BEEN A GREAT PARTNER TO THE PARK SYSTEM, AND RECENTLY THEY WERE A PARTNER WITH US IN HELPING TO ACQUIRE ADVENTURE LANDING, WHICH WAS ON YOUR MOST PREVIOUS COUNCIL AGENDA.
[01:20:01]
SO THEY HAVE BEEN A DEPARTMENT THAT WE'VE WORKED WITH CLOSELY TO TRY TO PUSH SOME FORWARD THESE REALLY IMPACTFUL PROJECTS.AND WILL THE FUNDING THAT PARKS IS PROVIDING COME FROM YOUR ANNUAL BUDGET OR ARE THOSE BOND FUNDS? SO IT'S A COMBINATION OF EQUITY FUNDS, COUNCIL SPECIFIC EQUITY FUNDS, ALONG WITH A VERY SIGNIFICANT DONATION FROM MR. PARISH AND MR. SPATH, YOU INDICATED IN THE MEMO THAT THE $3 MILLION GAP FUNDING FROM YOUR OFFICE WILL BE FROM THE NEW INFRASTRUCTURE INVESTMENT FUND.
AND I'M JUST CURIOUS, WHAT IS THE SOURCE OF THOSE FUNDS.
IS THAT GENERAL REVENUES? SO THE INFRASTRUCTURE INVESTMENT FUND WAS AUTHORIZED AND CREATED BY THE COUNCIL WHEN THE COUNCIL APPROVED THE ECONOMIC DEVELOPMENT INCENTIVE POLICY IN 2023. THE FUND NEVER EXISTED BEFORE.
IT GETS ITS FUNDING EACH YEAR THROUGH THE COUNCIL'S BUDGET APPROVAL PROCESS.
BUT THE FUNDING IS REALLY EQUIVALENT TO THE SAME AMOUNT OF EXPIRED TIF DISTRICT FUNDS THAT ARE COMMITTED BY THE CITY TO THOSE EXPIRED TIF DISTRICTS.
SO IN IN THE INSTANCE OF THE FIRST 3 OR 4 YEARS OF THIS FUND THE ORIGINAL ZONE OF THE CITY CENTER TIF DISTRICT AND THE CEDARS TIF DISTRICT BOTH EXPIRED AT THE END OF 2022.
SO THE AMOUNT THAT THE CITY IS CONTRIBUTING FROM THOSE TO THOSE TIF DISTRICTS.
IN THAT LAST YEAR IS ABOUT $6 MILLION.
AND THEN THE CRITERIA BY WHICH WE UTILIZE AND DEPLOY THE FUND IS BAKED INTO THE INCENTIVE POLICY.
AND GENERALLY, WHAT ARE THOSE CRITERIA? WHAT CAN THAT MONEY BE USED FOR PUBLIC INFRASTRUCTURE? MOSTLY THINGS THAT WE THINK ARE GOING TO GENERATE INVESTMENT, TO PROVIDE INFRASTRUCTURE IN AREAS OF THE CITY THAT HAVE NO INFRASTRUCTURE OR VERY IN NEED OF SERIOUS UPGRADES.
UTILIZING THOSE DOLLARS, EVEN THOUGH THE TIF DIDN'T EXIST ANYMORE.
BY KEEPING THOSE DOLLARS IN THE NEIGHBORHOOD THAT THEY WERE ORIGINALLY INTENDED.
I CAN'T THINK OF A BETTER PLACE THAN THIS PARK.
ADVOCATING TO MAKE SURE THAT SOMETHING GETS DONE WITH IT.
AND YOU HAVE GONE ON A ROLLER COASTER OF PROCESS IN ORDER TO GET TO THIS DAY.
SO WHEN SHE SAYS THAT SHE DOESN'T KNOW THE WORD FOR WHAT'S MORE THAN ECSTATIC, AND RIGHT NOW I KNOW SHE'S NOT REALLY SHOWING IT TOO MUCH, BUT I CAN TELL YOU THAT SHE IS, BECAUSE I KNOW THAT SHE HAS WORKED SO HARD.
AND YOU KNOW, I DON'T KNOW MANY PEOPLE WHO WOULD STAY ON SOMETHING THIS LONG WITHOUT GIVING UP.
AND YOU ARE ABSOLUTELY CORRECT.
WHEN SHE SAYS THAT THIS NEIGHBORHOOD HAS BEEN WAITING FAR TOO LONG AND THE ACCOUTERMENT IS, I THINK HOW YOU SAY IT PROPERLY IN FRENCH.
I WENT TO PARIS LAST NOVEMBER, SO I THINK I'M AN EXPERT NOW.
I THINK THAT'S THE SEVENTH WORD I KNOW NOW IN FRENCH.
BUT NOW I KNOW THAT SHE'S THE FORMER VICE CHAIR OF HER FRENCH CLUB.
I'M GOING TO GET SOME PRIVATE LESSONS.
AND MAYBE THAT'S A PROGRAM THAT CAN HAPPEN AT THE NEW PARK LATER ON.
AND, YOU KNOW, COUNCILWOMAN ARNOLD CAN TEACH THOSE CLASSES WHILE WE'RE OUT THERE.
BUT I THINK THIS IS AN EXCELLENT, EXCELLENT PROJECT.
AND I, AGAIN, CANNOT TELL YOU HOW HAPPY AND EXCITED I AM FOR YOU.
BUT THE BIGGEST WINNERS ARE THE PEOPLE THAT LIVE AROUND IT.
WE SEE EVERYWHERE, THAT A PARK IS BUILT IN THIS CITY AND BUILT OUT.
IT ALL COMES, MR. CHAIRMAN. RIGHT. ALL THE ALL THE ECONOMIC DEVELOPMENT COMES AROUND IT.
[01:25:01]
THEY LOVE GREEN SPACE, THEY LOVE TREES.AND IT'S GOOD FOR OUR ENVIRONMENT.
AS OUR CHAIR FROM ENVIRONMENT JUST SAID.
ONLY BECAUSE IT'S NOT IN MY DISTRICT.
SO. BUT OTHER THAN THAT, I'M JUST AS EXCITED FOR HER AND THAT COMMUNITY.
THANK YOU VERY MUCH, CHAIRMAN.
WITH THAT, DEVIN, MAYOR PRO TEM NARVAEZ AND BAZALDUA.
ANY QUESTION? YEAH, I'M ON KIND OF CHANGING A LITTLE BIT.
AND CAROLYN, YOU KNOW, CHAIRMAN ARNOLD IS A GREAT DEAL THAT I THINK ABOUT THIS PARK.
PARKS AND RECS. AND SO I MADE SURE MY REC CENTER IS A COUNTRY CLUB.
MY PARKS IS A PLACE WHERE PEOPLE CAN GO AND WITHOUT COSTING ANY MONEY, EVEN DURING THE PANDEMIC.
YOU KNOW, WHEREVER I WANT TO GO, GO TO THE PARK, OPEN SPACE.
THIS PIECE OF PROPERTY, YOU KNOW, CADILLAC HEIGHTS, YOU KNOW, WE'RE TALKING ABOUT PUTTING THE POLICE ACADEMY OVER MANY, MANY YEARS AGO, WE DIDN'T KNOW WHAT WE WERE GOING TO DO WITH IT. YOU KNOW, WHEN WE STARTED OUT, WHEN TIF EXPIRES, THE INFRASTRUCTURE FUND.
PEOPLE DIDN'T KNOW WHERE THE MONEY CAME FROM.
SO, CHAIRMAN, REALLY, YOU KNOW, THE INFRASTRUCTURE MONEY WAS SET ASIDE FOR PROJECTS LIKE THIS FOR DEVELOPMENT, WHICH IS ECONOMIC DEVELOPMENT, BUT ALSO, IT'S A GENTLEMAN BY THE NAME OF ROLAND PARISH AND WHO WE JUST AWARDED LILLIAN'S AWARD A GREAT NAME, A PHILANTHROPIST WHO GAVE MONEY AND THEN PUT BACK TO THE RESIDENTS.
SO YOUR HARD WORK HAS NOT WENT IN VAIN.
I MEAN, YOU HAVE BEEN TALKING ABOUT THIS FOR THE LAST 7 OR 8 YEARS.
WHAT ARE WE GOING TO DO ABOUT THIS PART? BUT NOW WE GOT BOOKENDS.
IN ORDER TO GO TO THE SOUTHERN PART OF DALLAS, YOU GOTTA CROSS THAT BRIDGE.
SO YEAH, KUDOS TO YOU AND KUDOS TO YOUR RESIDENT.
YOU SHOULD BE PROUD OF THIS PART, BECAUSE THIS IS GOING TO BE A LEGACY THAT WE FOUND A WAY HOW TO MAKE A DEVELOPMENT WORK, YOU KNOW, WITH ZERO MONEY TO MAKE IT WORK.
AND REALLY WHAT WE'RE DOING THIS BECAUSE THE FUNDING IS NOT GOING TO BE HERE TILL OCTOBER, NOVEMBER.
BUT WITH THIS ECONOMIC DEVELOPMENT, THE FUNDING GET HERE IN MAY, BEFORE OCTOBER.
SO THAT'S WHY WE PUT THIS TOGETHER TO GET IT DONE QUICKER.
BECAUSE INFLATION, THE PRICES GO UP.
SO, I JUST WANT TO SAY THANK YOU AND KUDOS TO YOU AND WHATEVER I CAN DO.
AND YOUR RESIDENT, WE ALL HEAR ECHO SAID, THANK YOU CAROLYN FOR THE HARD WORK YOU'VE DONE WITH THAT.
YES. GO AHEAD. I WANT TO SAY THIS RIGHT HERE.
WHO'S DOING THAT? ITEM E, MISS LOU.
OKAY. GOOD AFTERNOON, EVERYONE.
MY NAME IS EMILY LIU, DIRECTOR OF PLANNING AND DEVELOPMENT.
JOINING ME TODAY IS ANDREA GILLIES, DEPUTY DIRECTOR OF PLANNING AND DEVELOPMENT.
THIS IS A PETITION FOR CONSENT TO CREATION OF A MUNICIPAL UTILITY DISTRICT.
A MUD IS A LIMITED PURPOSE GOVERNMENT DISTRICT USED AS A VEHICLE FOR PROVISIONS OF MUNICIPAL UTILITY SERVICES SUCH AS WATER. SEWER, DRAINAGE, ROADWAY.
[01:30:06]
FIVE MILES OF OUR CITY LIMIT.THAT'S WHY WE HAVE SOME JURISDICTION.
WE CALL IT EXTRATERRITORIAL JURISDICTION.
ETJ AND THIS PROPERTY IS ABOUT 140 ACRES.
THE REQUEST IS EXPECTED TO PERMIT FOR THE CONSTRUCTION OF IMPROVEMENTS TOTALING OVER $28 MILLION.
THIS WILL GIVE THEM THE ABILITY TO ISSUE TAX EXEMPT BOND.
WE MAY ENFORCE PLANNING REGULATIONS AND ENVIRONMENTAL REGULATION, BUT MAY NOT ENFORCE ANY ZONING REGULATIONS IN THIS AREA. AND THERE IS NO COST TO THE CITY OF DALLAS.
THAT'S BASICALLY THE SUMMARY OF THE MEMO.
ANY QUESTIONS? OF COURSE. CHAIRMAN.
REALLY? THANK YOU, MR. CHAIR. SO, THE BOND INDEBTEDNESS THAT THEY INTEND TO INCUR.
THE $28 MILLION WOULD BE SECURED SOLELY BY WHAT COLLATERAL? GO AHEAD. I THINK THIS IS MY FIRST MOD.
SOMEONE UP THERE CAN ANSWER THAT QUESTION.
ALL RIGHT. MY NAME IS VICTOR DALLAS.
I'M HERE ON BEHALF OF COATES ROSE LAW FIRM.
WE REPRESENT THE PETITIONER WHO SUBMITTED THIS PETITION TO THE CITY OF DALLAS.
AND I THINK THE QUESTION WAS, WHAT WOULD I GUESS, SUPPORT THE BONDS OR WHAT WOULD GO AS COLLATERAL TO THE BONDS? YES, CORRECT. SO THE PAYMENT OF THE BONDS WOULD BE THE AD VALOREM TAXES THAT ARE LEVIED ONLY TO THE RESIDENTS OF THE DISTRICT, WITHIN THE BOUNDS OF THE MUD ITSELF. SO ANY TAXES LEVIED AGAIN WOULD NOT APPLY TO ANY OTHER OUTSIDE COMMUNITIES.
NOW, IF THAT CURRENTLY UNINCORPORATED LAND IS EVER ANNEXED BY A CITY, THEN THAT DEBT WOULD BE ASSUMED BY THAT MUNICIPAL ENTITY.
YES, SIR. THAT'S CORRECT. ARE THERE ANY CIRCUMSTANCES UNDER WHICH THE CITY OF DALLAS, ABSENT OUR OWN ANNEXATION OF THIS PROPERTY, COULD BECOME LIABLE FOR THAT DEBT SERVICE? IT WOULD, HYPOTHETICALLY, LET'S SAY, FIVE YEARS INTO THE DEVELOPMENT, THEY'VE LEVIED OR ISSUED SOME BONDS.
I THINK THAT IS AN INCREDIBLY RARE SITUATION.
IN MY TIME, WE PROBABLY HAVE CLOSE TO APPROXIMATELY 200 OR MORE DISTRICTS ACROSS NORTH TEXAS.
I HAVE YET TO SEE THAT HAPPEN.
IN FACT, WE TYPICALLY DO WHAT WE CAN TO AVOID THAT FOR OBVIOUS REASONS.
WE WANT TO KEEP THAT RESPONSIBILITY WITHIN THE DISTRICT.
AND IS THERE A SPECIFIED LIFESPAN FOR THIS MUD, OR COULD ITS EXISTENCE BE CONTINUOUS UNTIL IT'S INCORPORATED? SO THERE IS REALLY NO END TO THE MUD.
THOSE ARE USUALLY ISSUED IN 25 YEAR NOTES.
BUT LET'S SAY WE GET TO THE END OF A DEBT CYCLE.
ALL DEBT OUTSTANDING DEBT IS PAID.
THERE MAY BE A NOMINAL MAINTENANCE AND OPERATIONS TAX LEVIED, AND THAT WILL BE SOLELY TO PAY OFF OR TO KEEP UP WITH THE MAINTENANCE OF THE WATER, SEWER, DRAINAGE AND ROADS THAT HAVE BEEN INSTALLED TO SERVE THE COMMUNITY.
AND DOES THE MUD HAVE TO BE A PETITION LED PROCESS BY THE RESIDENTS WHO WOULD BE TAXED FOR THESE IMPROVEMENTS? SO IT IS A PETITION LED PROCESS.
CURRENTLY THERE ARE NO RESIDENTS THERE.
SO THE LANDOWNER OR A MAJORITY IN VALUE OF THE OF THE LAND IN QUESTION, THEY ARE THE ONES THAT HAVE THE RIGHT UNDER THE LAW TO PETITION FOR THE CREATION OF THE DISTRICT, AND SO HAVE 100% OF THE LANDOWNERS IN THIS POTENTIAL MUD DISTRICT CONSENTED TO THIS APPLICATION? YES, SIR.
OKAY. AND THE MEMO INDICATES THAT ANY PLANNING WOULD HAVE TO BE GRANTED BY THE CITY OF DALLAS PLAN
[01:35:01]
COMMISSION. THAT CONTINUES AS LONG AS THE MUD IS IN EXISTENCE, OR.YEAH, UNTIL IT SHOULD BE INCORPORATED.
IN WHICH CASE THAT NEW CITY OR THE ANNEXING CITY WOULD TAKE ON THAT RESPONSIBILITY.
IS THAT ACCURATE? YES, SIR. THAT'S CORRECT.
DOES THAT JUST REFER TO THE PLANNING PROCESS, OR DOES IT INCLUDE MORE ZONING OR CONSTRUCTION PERMITTING? I THINK IT WOULD BE AS IT RELATES TO THE TO THE PLANNING PROCESS AND CONSTRUCTION PERMITTING.
YES. NOT NECESSARILY TO THE ZONING BEING LOCATED THERE IN THE IN THE ETJ.
SO THE CITY OF DALLAS WOULD HAVE THE AUTHORITY TO ISSUE BUILDING PERMITS FOR THIS ETJ AREA.
OKAY. AND THAT WOULD PROCEED IN THE NORMAL FASHION THAT WE PROCESS BUILDING PERMITS.
CHAIRMAN ALLEN IS ON THIS SIDE.
WHICH DISTRICT IS THIS? IN A COUNCIL DISTRICT WITH THIS COUNCILMAN? NO, THIS IS OUTSIDE.
FOR WHAT REASON? IT'S BECAUSE IT'S IN THE ETJ OF THE CITY OF DALLAS.
AND UNDER THE LOCAL GOVERNMENT CODE, IN ORDER TO SEEK CREATION OF A MUD.
WHAT DOES THE ETJ YOU SAID THE ETJ THE EXTRATERRITORIAL JURISDICTION.
ALL RIGHT, SO IS THIS THE PROCESS WHERE YOU HAVE TO GO TO THE STATE TO GET THIS THE MUD CREATED? IS THIS THE MUD THAT MUNICIPAL UTILITY DISTRICT? IS THAT IS THAT SOMETHING THAT HAS TO BE AUTHORIZED BY THE STATE? YES, MA'AM. SPECIFICALLY, BY THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY OR THE TCEQ.
SO IF CONSENT IS OBTAINED, THE NEXT STEP IS TO SUBMIT A FULL CREATION APPLICATION TO THE TCEQ.
TO DETERMINE IF THE PROJECT IS FEASIBLE, PRACTICABLE, NECESSARY AND A BENEFIT TO THE LAND.
AND SO MY INQUIRY IS THIS AND I APPRECIATE THE QUESTIONS REGARDING THE IMPACT ON DALLAS.
MY EARS GO UP AND THEY'RE OPEN WHEN WE TALK ABOUT TAXING PROPERTY OWNERS.
AND I THINK THEY HAVE A RIGHT TO KNOW.
AND I THINK YOU'VE SAID THAT THERE ARE NO RESIDENTS THERE.
YOU'RE DEALING PRIMARILY WITH THE OWNERSHIP, OR ARE THERE SOME TYPE OF OWNERSHIP AROUND IT THAT HAD THE PETITION? IS THAT CLEAR? YES, MA'AM. IS THAT CORRECT? I KNOW MR. RIDLEY WAS GOING ALONG THAT LINE OF QUESTIONING.
AND SO THIS IS AN ADDITIONAL TAX THAT WOULD BE PLACED ON THE OWNERS, AM I CORRECT? YES, MA'AM. THAT'S CORRECT.
IT'S JUST THAT WE SHOULDN'T EVER HAVE ANY.
GOTCHA ON THESE BAIT AND SWITCH.
AND I HAVE TO SAY THAT ON RECORD BECAUSE I DO HEAR STORIES.
AND SO THAT'S WHY IT'S VERY IMPORTANT.
BUT SO I WANTED TO MAKE SURE I GOT THAT ON THE RECORD.
AND I'M GOING TO PUT PROBABLY GET MYSELF A LITTLE STICKY, STICKY RIGHT NOW.
BUT I HAVE TO THANK THOSE INDIVIDUALS WHO HAVE HELPED ME TO BE ABLE TO SEE A LITTLE BIT MORE.
AND SOME OF THIS I'M GOING TO BLAME ON MR. KLEINMAN, BECAUSE HE WAS THE ONE WHO INTRODUCED ME TO THIS WHOLE CONVERSATION AROUND MUDS AND SOME OF THE MANIPULATIONS THAT GO ON THE STATE LEVEL.
SO, LEE, CLIMATE IS GOING TO BE BLAMED TODAY FOR ME HAVING THESE QUESTIONS FOR YOU, BUT I'M GLAD THAT HE PUT ME IN THAT POSITION SO THAT MY EYES COULD OPEN UP A LITTLE BIT ON THAT.
SO THAT'S WHY I'M ASKING YOU THESE QUESTIONS.
[INAUDIBLE] IF YOU NEED TO GET BACK ON.
ANYONE? YES, MA'AM. BUT ON A SERIOUS NOTE, STEPH, I'M VERY SERIOUS ABOUT THAT.
SO THAT'S WHY I WANT TO MENTION THAT.
AND I'M COUNCILWOMAN CAROLYN KING ARNOLD AND LEE KLEINMAN IF YOU NEED TO GET TO HIM.
YES, MA'AM. YES, MA'AM, IF I MAY, JUST TO TOUCH ON THE NOTICE ASPECT THE STATE LAWS HAVE ACTUALLY BECOME A LITTLE MORE STRINGENT IN THE LAST FEW YEARS REGARDING NOTICE WE DO FILE FOR ANY OF THESE MUDS.
AND ANYTIME YOU PURCHASE PROPERTY IN A MUD, YOU'RE GIVEN A COPY OF THAT NOTICE WHEN YOU FIRST GO UNDER CONTRACT AND YOU'RE GIVEN A COPY AGAIN AT CLOSING WHEN YOU'RE SIGNING THAT MOUNTAIN OF DOCUMENTS, OF COURSE, THAT'S WHY THEY MAKE YOU GIVE IT.
[01:40:01]
THEY MAKE US GIVE IT TO YOU TWICE.THE SECOND TIME AT CLOSING, THAT NOTICE IS RECORDED.
WE CONSTANTLY ARE UPDATING THOSE NOTICES AND THERE'S SIGNAGE REQUIREMENTS.
WE HAVE TO POST TWO SIGNS AT THE ENTRANCES.
AT MAJOR ENTRANCES, WE CAN'T JUST STICK THEM ON A RANDOM FENCE POST, ET CETERA.
REALLY, SOME ADDITIONAL QUESTIONS.
IS THE ENTIRE PROPOSED MUD DISTRICT WITHIN THE CITY'S ETJ? YES, SIR. OKAY.
AND I ASSUME THAT IT'S BEING PROMPTED BY THE LANDOWNER WHO WANTS TO DEVELOP THIS PROPERTY AND DOESN'T WANT TO BEAR THE ENTIRE COST OF THE UTILITY INFRASTRUCTURE AS PART OF THOSE BUILDING PLANS.
HOW MANY PROPERTY OWNERS ARE PROPOSED.
MUD DISTRICT. IT'S ONE ENTITY.
CURRENTLY, IT'S A LAND OWNING ENTITY.
OKAY. AND DO WE KNOW WHAT THEIR DEVELOPMENT PLANS ARE? THE CURRENT DEVELOPMENT PLANS STILL UNDER WORKS.
TENTATIVE CONCEPT PLAN IN PLACE.
CALLS FOR APPROXIMATELY 646 EQUIVALENT SINGLE FAMILY CONNECTIONS.
OKAY, SO THEY'RE PROPOSING SINGLE FAMILY DEVELOPMENT.
AND AS THEY SELL OFF LOTS TO BUILDERS OR THE ULTIMATE HOMEOWNERS, THEN THE RESPONSIBILITY FOR PAYING THE ASSESSMENT TO RETIRE THE BONDS WOULD TRANSFER TO THAT HOMEOWNER OR THE BUILDER THAT'S BUILDING THE HOME ON THE PROPERTY.
YES, SIR. ANYONE ELSE? OKAY. IT IS NOW 2:57.
THE ECONOMIC DEVELOPMENT COMMITTEE IS ADJOURNED.
THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.