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[00:00:01]

CALLS THE ORDER THAT FINE, FINE.

NOT ON MUTE.

THAT'S FINE.

PEC.

ESPECIALLY WHEN AGENDA ITEM NUMBER FIVE AS A GAZILLION WORDS.

YEAH, I CAN READ THAT FOR YOU.

SURE.

, I'D LIKE TO GO FINE.

I'D LIKE TO CALL TO ORDER THE MEETING, THE CITY CENTER TAX INCOME FINANCING DISTRICT BOARD OF DIRECTORS.

WHAT TIME? 11:03 AM PERFECT.

THANK YOU.

WILL WE HANDLE THE INTRODUCTION TO THE MEETING PARTICIPANTS OR SEAN? SURE.

LET'S GO AHEAD AND START WITH OUR IN ROOM BOARD MEMBERS PLEASE.

WE'LL START WITH THE CHAIR.

I'M JUST RICHARD, UH, CHAIR OF THE CITIZEN TAX DISTRICT.

UM, BILLY T I'M THE VICE CHAIR OF THE SUE TAX DISTRICT.

ALRIGHT.

AND THEN WE'LL GO TO OUR BOARD MEMBERS WHO HAVE JOINED US VIRTUALLY.

SO, UM, MR. MCGILL, GOOD MORNING.

UH, BEN MCGILL WITH DALLAS COLLEGE.

THE REST OF YOU CAN FIGHT OVER IT.

WHO'S NEXT? NICK SEAMAN, HEADINGTON COMPANIES.

ORLANDO, I THINK THAT LEAVES YOU.

I SEE YOU'RE OFF OF MUTE.

ALRIGHT.

OH, MR. PERRY'S HERE.

ALRIGHT, ORLANDO, I CAN SEE YOU MR. PERRY.

YOU CAN GO AHEAD AND SAY HELLO.

HELLO.

OH, HI EVERYONE.

HI.

WELCOME.

ORLANDO.

WE DIDN'T HEAR YOU, BUT, UM, WE'LL GET TO THAT.

ALL RIGHT.

LET'S DO A QUICK INTRODUCTION OF NON-BOARD MEMBERS WITHIN IN THE ROOM.

HI, WE'LL START WITH YOU.

UH, MY AND PHILLIP KINGSTON, KINGSTON CONSULTING.

UM, I AM LOOKING THERE FOR CITY STAFF.

WE DON'T NEED TO DO INTRODUCTIONS.

WE HAVE REPRESENTATIVE FROM CITY MANAGER'S OFFICE, THE ATTORNEY'S OFFICE, IF THERE IS ANYONE THAT IS NOT CITY STAFF.

UM, I BELIEVE THERE MIGHT BE A GDI REP ON.

IF YOU'LL INTRODUCE YOURSELF AND ANYONE ELSE, PLEASE.

SUMMERLIN.

I'M THE URBAN PLANNING MANAGER FOR DOWNTOWN DALLAS, INC.

WE CAN'T HEAR YOU.

CAN YOU TRY AGAIN? CAN YOU HEAR ME NOW? YES.

OKAY.

MY NAME IS, GO AHEAD.

UH, MY NAME IS AKIA SUMMERLIN.

I'M THE URBAN PLANNING MANAGER FOR DOWNTOWN DALLAS INC.

ALRIGHT.

ALL RIGHT.

ANY NON-BOARD NON-CITY STAFF MEMBERS WHO HAVE JOINED US VIRTUALLY.

ALRIGHT, WITH THAT WE CAN MOVE ON TO AGENDA ITEM NUMBER THREE.

CHAIR.

I THINK WE'RE OKAY.

MOVE ON TO AGENDA ITEM.

PLEASE MOVE ON.

OH, I'M FINE.

OKAY.

UM, AGENDA ITEM NUMBER THREE IS PUBLIC COMMENTS PERTAINING TO AGENDA ITEMS NUMBER FOUR AND FIVE.

UM, ARE THERE ANY PUBLIC COMMENTS OKAY WITH THAT? I HEAR NONE.

SO WE CAN, DO WE HAVE ANY MEMBERS OF THE PUBLIC PRESENT OTHER THAN WE DO? WE HAVE THESE TWO GENTLEMEN WHO ARE, WHO ARE NOT WITH, CORRECT? SURE.

HEY DORSEY, IF YOU'RE, IF YOU'RE TRYING TO SHOW ANYTHING ON THE SCREEN, THERE'S NOTHING SHOWING ON MY SCREEN.

OKAY.

ELIANA, WILL WE GO AHEAD AND SHARE AND WE CAN START, UM, I'M NOT GONNA SHARE MY SCREEN.

WE'RE GONNA HAVE SOMEONE ELSE COME THAT THANK YOU.

TAKE A PICTURE OF THIS SO I CANNOT SMILE, SMILE, DO MY MEETING.

OKAY.

SO ELIANA, IF YOU'LL GO AHEAD AND SHARE, BUT WE'LL JUST START, UM, MARCHING THROUGH.

AGENDA ITEM NUMBER FOUR IS

[00:05:01]

REVIEW AND CONSIDER THE MEETING RECORD OF THE JANUARY 11TH, 2024 JOINT MEETING AT THE CITY CENTER TIP DISTRICT BOARD OF DIRECTORS, DOWNTOWN CONNECTION, TIF, DISTRICT BOARD OF DIRECTORS, AND THE DOWNTOWN DALLAS DEVELOPMENT AUTHORITY BOARD OF DIRECTORS.

UM, THESE ARE THE SAME SET OF MINUTES THAT ANYONE WHO SITS ON THOSE OTHER TWO BOARDS HAVE ALREADY APPROVED THE CITY CENTER.

TIF BOARD HAS NOT INDIVIDUALLY ADOPTED THIS SAME SET OF MINUTES.

SO WE WANTED TO GET THAT DONE.

OKAY.

YOU'VE HAD TIME TO REVIEW THE MINUTES.

UH, AND I HAVE A MOTION TO APPROVE TO APPROVE THE MINUTES.

WE HAVE A MOTION TO APPROVE.

DO WE HAVE A SECOND? A SECOND.

A SECOND.

UH, WE HAVE A MOTION A SECOND.

WE'RE HAVING DISCUSSION ON MOTION TO APPROVE MINUTES HEARING.

NO DISCUSSION.

ALL IN FAVOR? AYE.

AYE.

NONE.

ANY OPPOSED? THANK YOU.

ALRIGHT, LEMME TAKE THIS IN FRONT OF YOU SO I DON'T FORGET.

YOU DON'T NEED TO DO IT NOW IF YOU DON'T WANT.

WOULD YOU LIKE ME TO READ THROUGH AGENDA ITEM NUMBER FIVE? OR YOU GONNA HAVE THE HONOR? I WOULD APPRECIATE IF YOU WOULD.

I WOULD FEEL BAD FOR THE CITY SECRETARY'S OFFICE WHEN THEY GET TO DO THIS.

SO NOW IT'S MY TURN AND THERE'S A LOT OF NUMBERS.

REVIEW AND CONSIDER A DEVELOPMENT AGREEMENT WITH WEST AND LOFTS LP AND OR ITS AFFILIATE DEVELOPER AND AMOUNT NOT TO EXCEED $49 MILLION.

THE CITY SUBSIDY COMPRISED OF AN AMOUNT NOT TO EXCEED 7,357,605 IN THE FORM OF A CHAPTER THREE 80 ECONOMIC DEVELOPMENT GRANT SOURCED FROM THE CITY'S PUBLIC PRIVATE PARTNERSHIP FUND AN AMOUNT NOT TO EXCEED 13,366,007 19 IN THE FORM OF A CHAPTER THREE 80 ECONOMIC DEVELOPMENT GRANT SOURCED FROM 2012 AND 2024 CITY GENERAL OBLIGATION BOND FUNDS AND FOR THE TIF BOARD AN AMOUNT NOT TO EXCEED $28,275,676.

THE TIF SUBSIDY PAYABLE FROM CURRENT AND FUTURE CITY CENTER TIF DISTRICT FUNDS IN CONSIDERATION OF THE WEST END PROJECT, A MIXED USE, MIXED INCOME AND TRANSIT-ORIENTED DEVELOPMENT PROJECT PROPOSED ON REAL PROPERTY CURRENTLY ADDRESSED AS 8 0 5 L SEVEN 11 ELM AND TWO 11 NORTH AUSTIN STREET LOCATED WITHIN AN ADJACENT TO THE CITY CENTER TIP DISTRICT.

WHILE NOW I CAN COME TO EXHAUSTED TO GET THROUGH THE POWERPOINT.

DO, LET'S DO IT ANYWAY.

ALL ELIANA, ARE YOU ABLE TO SHARE THE SCREEN AND PULL UP THE UM, SLIDE DECK? I USUALLY TRY TO DO IT, BUT THEN I FORGET TO GO.

SO THAT'S ELIANA CAN, ONE OF MY BOARD MEMBERS, IT'S VIRTUAL.

LET ME KNOW IF YOU CAN SEE WHAT'S ON THE SCREEN.

RIGHT NOW IT'S JUST SHOWING, UM, THE AGENDA.

ACTUALLY, WE NEVER GOT THE AGENDA.

IT'S JUST BLANK.

OKAY.

I I CAN SEE THE AGENDA.

YOU CAN, YES.

THANK YOU.

I CANNOT OKAY.

OKAY.

ALL RIGHT.

ELIANA, IF YOU CAN JUST KEEP SCROLLING, GET TO THE POWERPOINT, PLEASE.

THAT'D BE GREAT.

I'LL GET STARTED.

WHILE WE'RE WAITING FOR THAT, UM, LET ME JUST KIND OF TEE US OFF.

I, AS STAFF, I'M GONNA GO THROUGH KIND OF THE DEAL TERMS OF WESTON LOFTS PROJECT DEVELOPER AND THEIR CONSULTANT, UM, INTRODUCE THEMSELVES.

AND THEY MAY HAVE SOME WORDS TO AFTER I SPEAK AND ARE HERE TO ADDRESS ANY QUESTIONS.

SO, HEY, ALLALL, PHIL KINGSTON CONSULTING HERE FOR SMORE STRATEGIES DEVELOP ZACHARY EG.

MEMBER OF SMORE STRATEGIES.

ALSO, I MAY PUT US ON A 32ND PAUSE TO SEE WHAT'S GOING ON OUT THERE.

'CAUSE I'M NOT SURE WHY THIS ISN'T GETTING SCROLLED THROUGH.

OKAY.

OR, OH, THERE WE GO.

KEEP GOING.

AWESOME.

ALL THE WAY TO THE POWERPOINT WOULD BE TERRIFIC.

ALL RIGHT.

THERE'S NOT A TON OF PRETTY PICTURE UNTIL THE , SO I'LL JUST GO AHEAD AND GET STARTED.

SO CITY CENTER TIFF DISTRICT WAS CREATED IN 1996, BUT THAT ORIGINAL, UM, CORE PART OF THE SUBDISTRICT EXPIRED AT THE END OF 2022.

SO NOW IT'S JUST THE WEST END IN LAMAR SUBDISTRICT.

UM, THAT TERM GOES UNTIL 2037 OR UNTIL THE BUDGET CAP IS REACHED.

UM, AT THE END OF, OR

[00:10:01]

IN 2022, THERE WAS A PLAN AMENDMENT THAT EVERYONE ON THE BOARD, UM, CONSIDERED TO KIND OF REALLOCATE FUNDS AND TO GET IT ALIGNED TO MOVE THOSE FORWARD ON THE GOALS AND OBJECTIVES THROUGH 2037.

UM, TO DATE, THERE'S ONLY BEEN 267 RESIDENTIAL UNITS CREATED IN LAMAR WEST END THROUGH TIP DISTRICT, UM, ASSISTANCE.

AND, UM, THERE'S BEEN A TOTAL EXPENDITURE OF JUST UNDER $6.5 MILLION OVER THE 12 YEARS THAT THIS T DISTRICT, UH, THIS SUBDISTRICT PORTION OF THE SUB OF THE T DISTRICT HAS BEEN IN EXISTENCE.

ALL RIGHT.

SO BACKGROUND ON PAGE FOUR.

WESTIN LOSS IS COMPRISED OF THREE DIFFERENT PARCELS IN TOTAL, 1.1 ACRES.

IT'S 8 0 5 ELM, SEVEN 11 ELM, AND TWO 11 NORTH AUSTIN.

TWO OF THOSE PROPERTIES ARE WITHIN THE TIP DISTRICT BOUNDARY 8 0 5 ELM STREET IS NOT.

WE'LL GET INTO THAT A LITTLE BIT.

THE PROPERTY IS LOCATED JUST SOUTH OF THE WEST AND DART STATION AND JUST NORTH OF EL CENTRO COLLEGE.

IT'S ALSO IN THE WEST END HISTORIC DISTRICT AND LISTED AS NATIONAL REGISTER OF HISTORIC PLACES WEST END HISTORIC DISTRICT.

ALL RIGHT.

ON THE FOLLOWING SLIDE, WE'VE GOT SOME IMAGES.

UM, YOU CAN SEE THE THREE PARCELS OUTLINED HERE IN BLUE.

AND ON THE NEXT PAGE, JUST A LITTLE HIGHLIGHT OF THE HISTORY OF, UM, THE HISTORIC BUILDINGS.

8 0 5 ELM IS CURRENTLY KIND OF ON THE STREET NOTED IN OUT CHURCH BUILDING, WHICH IS THE, UM, MOST CURRENT TENANT.

THEY TAKE UP THE GROUND FLOOR, UM, OF THAT PROPERTY.

UM, ITS HISTORIC NAME IS ALSO LISTED HERE.

THERE'S A BASEMENT IN THE BUILDING AND THE PROPERTY IS BEING SOLD WITH THE ADJACENT SURFACE PARKING ON IT.

SEVEN 11 ELM IS A 1925 CONSTRUCTED PARKING GARAGE.

SO UNTIL SOMEONE TELLS ME OTHERWISE, I BELIEVE IT'S ONE OF THE FIRST IN THE REGION TO BE CONSTRUCTED.

IT DOES HAVE SOME GROUND FLOOR, UM, RETAIL SPACE, JUST OVER 4,000 SQUARE FEET.

ALL RIGHT, TO GET INTO THE SUMMARY OF THE PROJECT, UM, THE DEVELOPER IS PROPOSING 154 MIXED INCOME RESIDENTIAL UNITS.

63 WOULD BE DEDICATED AS AFFORDABLE.

THIS CHART ON THE RIGHT SIDE OF THE SLIDE SHOWS THAT BREAKDOWN.

SO THERE WOULD BE UNITS AT 30%, UM, AREA MEDIAN FAMILY INCOME, 60%, 70%, AND 80%.

UM, THEY'RE, UH, THEY'VE BEEN AWARDED TAX CREDITS.

WE'LL GET INTO THAT FOR THE HOUSING COMPONENT, WHICH REQUIRES A 45 YEAR, UM, .

SO THEY'LL BE DEDICATED FOR 45 YEARS.

THE CITY OF DALLAS WILL REQUIRE 15 YEAR AFFORDABILITY, BUT IT'LL EXTEND BEYOND THAT.

RIGHT? THERE'S, UH, REHABILITATION OF GROUND FLOOR RETAIL, APPROXIMATELY 26,462 IN CREATION OF A PLAZA AND A PROMENADE.

THE PROMEN PROMENADE IS ALONG NORTH AUSTIN STREET COMING FROM THE WEST VANGUARD STATION.

TOTAL COST IS OVER $103 MILLION.

WE'LL DETAIL THAT A BIT.

UM, CONSTRUCTION START DATE, I HAVE ANTICIPATED, UM, SECOND QUARTER OF 2025 AND COMPLETION.

UM, FIRST QUARTER OF 2027, THE LOW INCOME HOUSING TAX CREDIT, UH, THE TEXAS DEPARTMENT OF UM, HOUSING COMMUNITY AFFAIRS WILL KEEP THEM ON A PRETTY TIGHT TIMETABLE.

SO IT COULD POSSIBLY BE DONE EVEN BEFORE THAT.

SO SPEAKING OF THE TAX CREDITS, UM, THEY WERE APPROVED FOR TAX CREDITS ON JULY 25TH, 2024.

AND THOSE ARE THE 9% COMPETITIVE TAX CREDITS.

THE PROJECT IS IN A HIGH OPPORTUNITY AREA, AND WHAT THAT MEANS IS IT'S AN AREA WHERE THERE'S A POVERTY RATE OF 20% OR BELOW.

AND SO FINDINGS ARE THAT PUTTING MIXED INCOME HOUSING IN THESE AREAS ARE BENEFICIAL.

IT'S NOT OVER CONCENTRATION OF AFFORDABILITY AND OTHER AREAS.

SO IT REALLY BALANCES OUT ON THE NEXT PAGE A LITTLE BIT ABOUT THE URBAN DESIGN PEER REVIEW.

IT, UH, WENT TO PEER REVIEW IN JUNE OF 28.

OF COURSE, A TYPICAL FOR THE GROUP, VERY CONCERNED ABOUT KIND OF THE CONTEXT OF THE WEST END, THE HOW THE BUILDING AND NEW BUILDING MEETS THE GROUND FLOOR PLANE, WHAT THE PLAZA AND ADE WILL LOOK LIKE.

UM, SO RESPONSES WERE PROVIDED AND THE DEVELOPER HAS AGREED

[00:15:01]

TO ACCOMMODATE THEIR RECOMMENDATIONS AND LOOK AT SOME OF THOSE RENDERINGS AND EVENT.

SO NEXT PAGE IS SITE PLAN.

SO YOU CAN SEE THAT A BUDDING, UH, THE LIVE RAIL IS A PLAZA AND NORTH AUSTIN WOULD BE THE PROMENADE.

UM, THE SEVEN 11 BUILDING BECOMES PARKING.

IT IS PARKING, BUT GETS, UH, REHABILITATED AND WILL BE USED FOR THE NEW, UM, DEVELOPMENT.

AND THEN ON THE RIGHT SIDE, YOU CAN SEE IT IS CHALLENGING TO SEE HERE, BUT THIS IS BOTH THE HISTORIC BUILDING AND A GROUND UP CONSTRUCTION WITH AMENITIES AND THE CORE.

SO TO BRING A TOTAL OF 154 RESIDENTIAL UNITS.

AND THEN ON THE NEXT SLIDE, THERE'S, UM, ELEVATIONS ON THE RIGHT SIDE.

WE'RE REALLY GETTING A GLIMPSE OF THAT NEW CONSTRUCTION AND HOW IT, HOW IT TIES TO THE HISTORIC BUILDING AND HOW IS SITUATED ADJACENT TO THE DARK LIGHT RAIL.

NEXT PAGE IS, UM, SHOWS THOSE BUILDINGS AGAIN AND SEVEN 11 AS SHOWN IS, UM, ON THE OTHER SIDE OF AUSTIN.

SO IN ORDER TO CREATE KINDA A SEAMLESS PARKING SITUATION, THE DEVELOPERS PROPOSING A SKYBRIDGE.

UM, THE PEER REVIEW HAD FUN WITH THAT.

THEY WERE, THEY WERE VERY INTERESTED SURPRISINGLY ABOUT KIND OF HOW THAT FITS INTO THE CONTEXT OF LIKE, THE MATERIAL OF THAT.

RIGHT? I THINK WE CAN FLY PAST THE NEXT PAGE OF ELEVATIONS AND GET INTO THE SOURCES AND USES, AGAIN, IT'S JUST OVER $103 MILLION.

UM, THERE IS A SIGNIFICANT GAP.

THERE'S, UM, THE LOW INCOME HOUSING TAX CREDITS ARE CAPPED OUT AT THAT $17.4 MILLION.

THEY'RE ALSO, UM, SEEKING HISTORIC TAX CREDITS, UM, FOR AN ADDITIONAL ALMOST $10 MILLION DEFERRING SOME OF THEIR DEVELOPER FEE.

AND AT THE BOTTOM OF THE SLIDE YOU CAN SEE THE USES OF FUNDS, UM, OBVIOUSLY THE BIG ONES BEING ACQUISITION AND BUILDING CONSTRUCTION.

THE NEXT PAGE IS THE CITY SUBSIDY DETAIL.

UM, $49 MILLION TOTAL FOR THE TIF BOARD CONSIDERATION.

$28,275,676 SOURCED FROM EXISTING AND FUTURE TIP DOLLARS.

UM, AND THEN THERE'S THREE OTHER SOURCES OF FUNDS CONTEMPLATED, UM, AND THAT WILL BE EXAMINED.

ECONOMIC DEVELOPMENT COMMITTEE AND THROUGH COUNCIL, AND YOU CAN SEE I WON'T READ SINCE IT WAS ON THE AGENDA, THOSE SOURCES AGAIN, BUT WE CAN DETAIL OUT THE TIF SUBSIDY COMPONENTS.

SO 11.875 MILLION IN AFFORDABLE HOUSING FUNDS.

2.2 MILLION FOR DISTRICTWIDE SET ASIDE.

THAT WOULD BE FOR IMPROVEMENTS TO THE PLAZA AND THE .

AND THEN REDEVELOPMENT AND DEVELOPMENT PROJECT COSTS.

THAT'S KIND A BIG BUCKET IN THE C PLAN THAT ALLOWS FOR FUNDING OF HISTORIC FACADE RESTORATION, ENVIRONMENTAL REMEDIATION, SEVERAL, UM, KIND OF WHAT WE CONSIDERED CIF ELIGIBLE EXPENDITURES.

BUT YOU'LL SEE A NOTE HERE.

IT SAYS THAT THE REDEVELOPMENT AND DEVELOPMENT, UM, BUDGET CATEGORY ALSO IS, CAN BE USED TO SUPPLEMENT THE AFFORDABLE HOUSING BUDGET CATEGORY.

SO WE, WE WERE LIMITED WHEN WE REDID THE PLAN.

UM, AND SO WE CAN USE THAT FOR ITS PURPOSE AS WELL.

SO THE FUNDS CAN BE SHIFTED AMONG BUDGET CATEGORIES, UM, AND NO INTEREST SHALL BE DUE OR EVEN IF IT TAKES US A WHILE TO PAY OUT AND WE CAN GET TO THAT.

SO, UM, THE ANTICIPATED TIMELINE IS, UM, FAST.

THEY'RE HOPING TO CLOSE THE END OF THIS END OF THE CALENDAR YEAR, DECEMBER 2ND, ECONOMIC DEVELOPMENT COMMITTEE IN DECEMBER 11TH CITY COUNCIL.

UM, IN THIS INSTANCE WE PUT LOT OF THE MEAT OF THE PROJECT CONDITIONS IN THE APPENDIX AND, UM, I DON'T REALLY WANNA SKIM OVER THAT EVEN THOUGH IT'S APPENDIX.

SO GIVE ME FIVE MORE MINUTES AND I'LL TRY TO GET THROUGH SOME KIND OF THE MEAT OF THE PROJECT CONDITIONS.

SO, UM, I TOLD YOU KIND OF THE, THE PROPERTY, WHAT THE PROPERTY CONSISTS OF, BUT UM, SOMETIMES WE HAVE KIND OF LOWER MINIMUM, UM, JUST TO MAKE SURE

[00:20:01]

THAT, UM, THERE'S A LITTLE WIGGLE ROOM AND THERE'S SOME REASON FOR IT.

BUT THE MINIMUM INVESTMENT IS $67 MILLION.

WE NEVER HELP SOLVE COSTS, UM, TORT THAT, BUT IT INCLUDES THE SITE PREPARATION, ACQUISITION, CONSTRUCTION, AND PROFESSIONAL FEES LIKE THE ARCHITECTURE, ENGINEERING, ANY ENVIRONMENTAL SURVEYS, ET CETERA.

SO THE REQUIRED PROJECT COMPONENTS ARE THE 154 RESIDENTIAL UNITS OF WHICH 63 SHALL BE SET ASIDE AS AFFORDABLE.

UM, REHABILITATION OF THE PARKING GARAGE, A MINIMUM OF 16,000, UM, NET RENTABLE SQUARE FEET OF GROUND FLOOR COMMERCIAL SPACE.

AND THERE'S ANOTHER SLIDE THAT GETS INTO THE DETAIL OF THAT 14,000 SQUARE FEET OF PUBLICLY ACCESSIBLE PLAZA AND PROMENADE THAT OPEN SPACE.

YOU MIGHT NOTE THAT THAT'S A QUITE A BIT LOWER THAN THE FULL POTENTIAL.

AND PART OF THE REASON OF THAT IS THERE'S SOME POTENTIAL LICENSING OPPORTUNITIES AND WE WOULD LIKE THE DEVELOPER TO HAVE THAT OPPORTUNITY TO HAVE MORE EYES ON THE STREET AND IF THERE'S ANY OPPORTUNITIES FOR SIDEWALK CAFES.

SO THAT WOULD NOT BE CONSIDERED IN THE PUBLIC REALM.

SO WE SUBTRACTED THAT OUT EVEN THOUGH IT WOULD ALLOW FOR PEOPLE OUTSIDE ON.

THE NEXT SLIDE IS THE AFFORDABILITY AND VOUCHERS.

ALL OF OUR PROJECTS ARE REQUIRED TO, UM, MAKE BEST EFFORTS OF LEASING.

UM, A MINIMUM OF 10% OF THE RESIDENTIAL UNITS TO VOUCHER HOLDERS.

UM, AND THE AFFORDABILITY AND THE VOUCHER COMPONENT WILL BE IMPRESSED UPON THE PROPERTY BY NEED RESTRICTION.

THE GROUND FLOOR SPACE, UM, WE WANTED TO MAKE A LITTLE FLEXIBLE.

THIS IS, YOU KNOW, IT'S QUITE A BIT OF RETAIL RIGHT ALONG THAT DARK LIGHT RAIL LINE.

UM, WE NEED THE ACTIVATION.

WE'RE LOOKING FORWARD TO HAVING SOME EYES ON THE STREET, KIND OF HELPING WITH SOME OF THE LOITERING, BUT WE ALSO DIDN'T WANT TO TEE THE DEVELOPER UP TO HAVE VACANT SORE FRONT THAT THEY COULD AT LEAST.

SO THIS GROUND FLOOR SPACE, JUST TRYING TO GIVE A LITTLE FLEXIBILITY OF WHAT IT MEANS TO BE ACTIVE SO THEY COULD INCREASE, UM, THE AMENITIES INTO THAT SPACE IF THEY WANT TO.

UM, THEY CAN, UM, WHAT DID I THAT LIVE WORK UNITS OR THE, THEY CAN PROPOSE ANYTHING TO US AND HAVE DIRECTOR APPROVAL AS LONG AS IT'S ACTIVATED SPACE.

UM, AND THEN NO PAY SHALL LESS THAN FOUR, 4,000 FEET, A HUNDRED NET RENTALS WERE FEE BE UTILIZED AS ACTUAL RETAIL COMMERCIAL USE.

AND WE ARE, AS FAR AS THE COMPLETION DEADLINE, WE'RE EXPECTING WHITE BOX READY.

UH, THERE'S ANOTHER AREA WE'LL SAY WE'RE NOT GONNA PAY OUT OR START PAYING UNTIL THE GROUND FLOOR IS 40% OCCUPIED.

SOMETIMES THAT TAKES A WHILE.

SO THE DEADLINE DATE REQUIRE WHITE BOX READY.

AND THEN, UM, AGAIN, NO PENNY PAID UNTIL 40% GROUND FLOOR OCCUPIED.

I THINK I'VE GOTTEN AHEAD OF MYSELF.

SO, UM, WE TYPICALLY, UH, GIVE THE DEVELOPERS A PRETTY LONG LEEWAY ON, UM, GETTING PERMITS AND COMPLETION BECAUSE IT'S NOT FUN TO COME BACK IN HERE AND HAVE YOU GUYS MEET JUST TO EXPECT DEADLINE.

SO, UM, WE'RE PRETTY GENEROUS.

WE ANTICIPATE THEY WILL START WELL AHEAD OF THIS DECEMBER 31ST, 2026, UM, MILESTONE DEADLINE.

UM, THE COMPLETION DATE AGAIN OUT THERE, DECEMBER 31ST, 2028.

UM, THE LAST BULLET, , BUT I'LL JUST READ IT.

PUBLIC ACCESS TO INFRASTRUCTURE NOT OWNED BY CITIES.

SO ANY PUBLIC COMPONENTS WILL HAVE REAL ESTATE INSTRUMENT.

MAKE SURE THAT THE PUBLIC, UM, CAN ENJOY THAT SPACE.

OUR TYPICAL O AND M AGREEMENT, OPERATION AND MAINTENANCE, HANG TIGHT, ELIANA.

AND, UM, THAT'S FOR 20 YEARS.

UM, THE MI MINORITY AND WOMEN OWNED BUSINESS INCLUSION FOR CONSTRUCTION.

UM, OUR CITY GOAL IS 32%.

WE'RE HAVING THE DEVELOPER TRY TO REACH 40% FOR THE MINORITY AND WOMEN-OWNED BUSINESS PARTICIPATION.

PAGE 25 IS KIND OF BORING QUARTERLY REPORTING, JUST MAKING SURE THEY'RE STAYING ON TOP OF THINGS AND OF COURSE WORKING THROUGH THAT PEER REVIEW.

UM, SLIDE 26 IS THEIR LOCAL HIRING.

THESE ARE IN ALL OF OUR NEWER PROJECTS.

SO THIS IS ON THE RESIDENTIAL AND NON-RESIDENTIAL COMPONENTS WHERE THEY CAUSE THEIR, UM, MANAGEMENT TEAM OR THOSE TENANTS TO HIRE LOCALLY.

CITY OF DALLAS, UM, THERE'S A MINIMUM GROUND FLOOR OCCUPANCY REQUIREMENT ON THE NEXT PAGE.

THAT,

[00:25:01]

UH, GROUND FOUR OCCUPANCY REQUIREMENT IS EXPECTED FOR FIVE YEARS.

UM, POST COMPLETION AND, UH, JUST AGAIN, KIND OF SOME MILESTONE, UM, JUST TO MAKE SURE EVERYONE'S ON TRACK, HAVING, UM, VERIFICATION THAT THEIR CAPITAL COMMITMENT IS IN PLACE AS WE EXECUTE ANY AGREEMENTS IF AND WHEN GETS COUNSEL.

AND, UM, WE WANT THAT EXECUTED BY THE END OF NEXT YEAR.

AGAIN, HERE, WELL BEFORE, UM, I WANNA HIGHLIGHT, UM, THIS SLIDE ON PAGE, UH, OR THIS BULLET ON PAGE 28 PARTNERSHIP WITH DALLAS COLLEGE.

AGAIN, THE, UM, THE THREE BUILDINGS OR THE THREE PARCELS ARE ADJACENT TO ACROSS THE STREET FROM EL CENTRO.

AND, UM, WE SEE A POTENTIAL SYNERGY THERE.

AND SO WE'RE ASKING THE DEVELOPER AND HE HAS MENTIONED THAT HE WOULD BE, UM, WILLING AND EXCITED TO PARTNER WITH DALLAS COLLEGE IF THERE BE AN OPPORTUNITY.

SO WE'RE JUST, UM, LEANING ON HIM TO, UM, TO RESPOND TO ANY POTENTIAL SOLICITATION FROM DALLAS COLLEGE FOR THAT SITE.

SO THAT'S WHAT THIS BULLET IS.

ALRIGHT, I THINK THIS SHOULD BE THE LAST ONE.

POST-CONSTRUCTION AUDIT.

ALL THIS IS SAYING IS THAT WE'RE GOING TO LOOK AT THE TOTAL PROJECT COST AND IF IT IS REDUCED AT ALL, THEN UH, THE CITY WILL HAVE A PROPORTIONAL REDUCTION OF CITY SUBSIDY.

SO FOR EVERY A HUNDRED THOUSAND DOLLARS LESS THAN THAT 103 MILLION, UM, THE CITY'S, UH, SUBSIDY WOULD BE ABLE REDUCED BY 40,000.

THE REST OF THE SLIDES, UM, ARE ABOUT THE OWNERSHIP STRUCTURE, THE DEVELOPMENT TEAM, UM, KIND OF WHAT THE CAPACITY IS IF THESE FUNDS ARE DEDICATED TO THIS PROJECT.

WHERE WE ARE MOVING FORWARD WITH, UM, TIP INCREMENT.

WE HAVE NOT HAD AN APPLICATION, A PROJECT, UM, IN WEST END, LAMAR SUBDISTRICT IN VERY LONG TIME.

SO, UM, THAT, THAT'S IMPORTANT TO NOTE.

AND THEN, LET'S SEE, I THINK I'LL JUST MENTION THAT ONE OF THE BUILDINGS, THIS IS ON PAGE 33, ANA ONE OF THE BUILDINGS RIGHT NOW BECAUSE THE CHURCH OWNS IT, THE ANTIOCH CHURCH BUILDING IS TAX EXEMPT.

SO THAT WILL BECOME TAXABLE IF AND WHEN THIS PROJECT MOVES FORWARD.

UM, AND THEN THIS LAST BULLET I JUST WANNA MENTION AGAIN IN THE, UM, I'VE NOTED A COUPLE TIMES THAT 8 0 5 ELM STREET IS ACTUALLY OUTSIDE OF THE TIP DISTRICT BALANCE.

UM, OUR TIP DISTRICT PLAN AND STATE LAW ALLOWS THE ABILITY TO FIND OUTSIDE OF THE ZONE.

AND UM, SO WE'RE JUST MAKING FINDINGS HERE THAT IT BENEFITS THE ZONE, UM, BEING ADJACENT TO.

UM, THE NEXT PAGE IS THE UNDERWRITING SUMMARY.

UM, BASICALLY THE UNDERWRITER FOUND NO UNDUE ENRICHMENT AND THAT THEY MAXIMIZE THEIR DEBT AND EQUITY.

UM, THERE WAS A LITTLE NOTE ABOUT KIND OF THAT RETAIL, KIND OF THE UNKNOWN OF WHAT THAT RETAIL WILL BE AND BEING ABLE TO SECURE FUNDS FOR THAT.

UM, LAST PAGE IS ABOUT KINDA HOW THIS MEETS THE DOWNTOWN 360 PLAN AND BOTH BY THE AFFORDABLE HOUSING, THE OPEN SPACE WALKABILITY.

ALRIGHT, UM, I'M FINISHED AND UM, I REQUEST FROM MR. KINGSTON TO TEAR A COUPLE SLIDES.

I'M GONNA LET HIM DO THAT NEXT.

THESE HAVE NOT COME THROUGH CITY STAFF, SO THIS IS, UM, WE'RE GONNA ALLOW THIS TO OCCUR.

UM, BUT AGAIN, THESE ARE JUST BEING SHARED WITH ME AS WELL.

WE'LL GET IF, IF EVERYONE'S OKAY HOLDING OFF ON QUESTIONS.

YEAH, GOOD.

OR YEAH, FINE.

I HAVE QUITE, BUT I'M OKAY, .

ALRIGHT.

UM, ELIANA, LET'S TRY FOR YOU, LET'S SEE IF WE CAN DO SOME MAGIC.

I'M GONNA TRY TO SHARE MY SCREEN.

I DON'T KNOW WHAT I'M SHARING.

WHAT AM I HEARING? LET'S TRY TO SHARE THIS.

WELL, NO ONE WANTS TO LOOK AT THAT.

ALL RIGHT, GIVE ME JUST A SECOND.

OKAY.

THIS LOOKS PROMISING.

MAYBE.

[00:30:01]

IS THIS YOUR FIRST SLIDE, MR. I THINK WE HAVE ONE BEFORE THAT.

THAT'S WHAT I WAS THINKING, BUT I DON'T KNOW WHY IT'S NOT LETTING ME ADVANCE.

OR PROBABLY THAT X IN THE BLUE ALL THE WAY TO THE RIGHT OVER HERE.

YEP.

OKAY.

.

IT WOULD BE TWO A PDF FILE.

SO, WELL, I THINK YOU'RE IN THE SHARE SCREEN WINDOW RATHER THAN, SO THIS MAY WANT TO BE TOO HARD TO MESS WITH, OR IF YOU DECIDE YOU DON'T HAVE TO SCROLL FROM THE ACTUAL DOCUMENT RATHER THAN THE SHARE SCREEN.

HANG FOLKS.

WE'RE HAVING 32ND PAUSE.

WELL, THAT'S MY STUFF, BUT I THINK WE'RE MAYBE, WHAT'S THAT? SHOW ME OH, GO BACK.

GO BACK YOUR, THE MIDDLE FILE.

OKAY, THAT LOOKS FINE.

WHEN I DID A TEST RUN, UH, WE'RE NOT SURE WHY IT'S NOT LETTING ME SCROLL.

IT DID BEFORE I GOT ON HERE.

ANY OTHER IDEAS? WELL, WE CAN JUST SKIP IT.

UM, AND YOU WANNA JUST YEAH, THEY WERE, THEY WERE DEMONSTRATIVE SLIDES TO DEMONSTRATE THAT THE PROJECT ACTUALLY COMPLIES WITH POLICIES FAR BEYOND WHAT ECONOMIC DEVELOPMENT NORMALLY CONSIDERS.

UM, SO WHAT YOU HAVE IS EXPLICIT, UM, ALIGNMENT WITH THE CITY'S COMPREHENSIVE HOUSING POLICY, THE MOBILITY PLAN, UM, THE, UM, CCAP, THE COMPREHENSIVE ENVIRONMENTAL POLICY.

UM, THESE, ALL OF THESE, UM, ALL THESE POLICIES I THINK ARE IMPORTANT TO, I HAD ONE OTHER SLIDE ON THE RACIAL EQUITY PLAN, WHICH ACTUALLY CALLS OUT DIRECTLY PUTTING AFFORDABLE HOUSING IN HIGH OPPORTUNITY AREAS.

UM, SO I THINK YOU'RE GETTING A LOT OUT OF IT.

WHAT YOU CAN SEE IS THAT IF YOU WERE JUST HOLDING THIS TO THE REGULAR TIFF POLICY FOR AFFORDABLE HOUSING, YOU WOULD BE GETTING 30 180% A MI UNITS.

NOTHING WRONG WITH THAT AT ALL.

BUT WHAT YOU'RE WINDING UP WITH IS ABOUT DOUBLE THE NUMBER OF AFFORDABLE UNITS AND OVER, AND, YOU KNOW, OVER 40 OF THEM ARE DEEPLY, DEEPLY AFFORDABLE.

30 AND 60% UNITS, WHICH NO ONE IN ANY SORT OF FUNDING MECHANISM REALLY, OTHER THAN LOW INCOME PASSIVE TAX CREDITS IS ABLE TO OFFER.

AND THAT'S THE CENTRAL THING.

I JUST WANT YOU TO DRAW THE BOARD'S ATTENTION.

THE USE OF LITECH FOR HIGH INCOME AREAS IS RELATIVELY NEW TO DALLAS, BUT IT IS A RESULT OF US NOT DOING IT IN THE PAST AND CREATING A SITUATION IN WHICH WE PACKED ALL THAT STUFF INTO SOUTHERN DALLAS, WHICH MADE HUD VERY ANGRY IN 2013.

UM, A NICE SURPRISE FOR ME WHEN I WALKED INTO THIS BUILDING THE FIRST TIME.

UM, SO THE, THE, THE TRICK HERE IS, AND THE REASON THIS HAS CAUSED DORSEY TO HAVE TO WORK EXTREMELY HARD ON THIS PROJECT COMPARED TO MAYBE SOME OTHER TIP APPLICATIONS, AND YOU, YOU SHOULD KNOW THAT SHE HAS LIKE MOVED MOUNTAINS ESSENTIALLY.

UM, THAT IS, THAT IT REQUIRES A STRONG SUBSIDY FROM THE CITY OF DALLAS, OR YOU EITHER DO THAT OR THE ANSWER IS YOU DON'T TAKE ADVANTAGE OF LITECH FUNDING, WHICH AS YOU ALL KNOW, IS FEDERAL FUNDING DISTRIBUTED TO THE STATES AND THEN GOES THROUGH T-D-H-C-A.

YOU DON'T TAKE ADVANTAGE OF THAT FOR YOUR HIGH OPPORTUNITY AREAS.

AND IF WE DON'T TAKE ADVANTAGE OF THAT FOR HIGH OPPORTUNITY AREAS, WE ALREADY KNOW HOW THAT MOVIE ENDS UNTIL IT GETS ANGRY AGAIN.

SO THIS IS A, THIS IS A PRETTY IMPORTANT PROJECT, I THINK, NOT JUST FOR THIS AREA, BUT ALSO FOR ALIGNMENT WITH THE POLICIES OF THE CITY OF DALLAS AND FOR THE CITY OF DALLAS'S TOTAL AFFORDABLE HOUSING PICTURE, UM, TO TRY TO GET THAT TOGETHER.

AND I DON'T WANNA, I REALLY, DORSEY'S PRESENTATION IS PRETTY COMPREHENSIVE.

I THINK YOU PROBABLY HAVE A GOOD IDEA OF, OF WHAT THIS IS ALL ABOUT.

SO I DON'T WANNA BELABOR THAT, BUT, UH, ZACH AND MATT AND I ARE HERE TO ANSWER ANY QUESTIONS.

I JUST WANTED TO, SOMETIMES IT'S GOOD TO TAKE A STEP BACK AND THINK WHY ARE WE DOING THIS? AND NOT ONLY DOES YOUR TIFF POLICY, UM, POINT IN THIS DIRECTION, UM, ALL THE OTHER IMPORTANT POLICIES PASSED IN THE LAST 10 YEARS IN THE CITY OF DALLAS EXPLICITLY CALL OUT THIS AS A STRATEGY.

YEAH.

[00:35:01]

YES.

YOU WOULD REQUIRE 15 YEARS, WE'RE GONNA GIVE YOU 45.

A LOT OF POLICIES THAT AREN'T, THAT WE'RE NOT REQUIRED TO EVEN KNOW ABOUT ARE, ARE TOUCHED UPON AND MET BY THIS.

WITH THAT, CAN WE OPEN THE QUESTIONS? OKAY.

I HAVE, UH, EIGHT PAGES AND THEN I DON'T WANNA HOG THE FLOOR, SO, GREAT.

UH, IF ANOTHER MEMBER OF THE, OF THE BOARD WOULD LIKE TO START WITH QUESTIONS, ACTUALLY BEFORE WE TURN OVER THAT, I'D LIKE TO ECHO WHAT THE APPLICANT SAID.

THIS IS A SUPER DETAILED PRESENTATION, WHICH I REALLY APPRECIATE, UH, MS. CLARK, YOUR COMMAND OF THE DETAILS AND THE WAY THAT YOU, UH, WENT THROUGH THEM AND IT'S, IT'S REALLY IMPRESSIVE AND A TON OF WORK.

SO THANK YOU FOR THAT.

AND WITH THAT, WE'D LOVE TO OPEN UP THE QUESTIONS FROM THE BOARD.

I'LL, I'LL DEFER TO THE PEOPLE ONLINE.

FIRST QUESTIONS, ANYBODY? IT'S PRETTY MEATY STUFF, MR. MCGILL.

YES.

THANK YOU.

UM, VERY EXCITING PROJECT AND, AND YOU KNOW, AS IT WAS, UM, YOU KNOW, LAID OUT OBVIOUSLY MEETS A LOT OF THE, UM, YOU KNOW, ECONOMIC DEVELOPMENT OBJECTIVES AND OTHER OBJECTIVES, UM, WITHIN THAT THE CITY HAS, UM, HOW DOES, I MEAN, HOW DOES THE DOLLAR AMOUNT, UM, UH, COMPARE TO OTHER PROJECTS? I MEAN, I'M JUST TRYING TO GET AN IDEA OF LIKE SOME PERSPECTIVE ON, UM, THE AMOUNT.

OBVIOUSLY THERE'S A LOT OF POTENTIAL IMPACT, THERE'S A LOT OF POTENTIAL ROI I'M JUST CURIOUS ABOUT HOW THIS, YOU KNOW, COMPARES TO OTHER PROJECTS.

SURE.

UM, WHAT I DID NOT BRING IN TODAY WAS KIND OF A DOLLAR PER AFFORDABLE UNIT, UM, THAT WE'VE DONE IN SOME PROJECTS.

IT REALLY IS CHALLENGING TO DO THAT IN A PROJECT LIKE THIS BECAUSE WE HAVE RETAIL, WE HAVE A PARKING GARAGE, WE HAVE A PLAZA, WE HAVE DEEP AFFORDABILITY.

SO IT'S KIND OF AN APPLES AND ORANGES COMPARISON.

UM, ZACH, WHY DON'T YOU TAKE JUST ONE SECOND TO TALK ABOUT YOUR MOST OTHER RECENT PROJECT IN ANOTHER DISTRICT AND TALK ABOUT THE CI CITY SUBSIDY.

SURE.

SO, UM, WE RECEIVED $41 MILLION TO DO THE CABANA HOTEL.

IT HAS A, A FEW MORE UNITS, IT'S GOT ABOUT 20 MORE UNITS, SAME 40% OF AFFORDABILITY, KIND OF SAME PROPORTIONS WITH 30%, UH, 60, 70 AND 80 A MI, UM, A LOT LESS RETAIL.

UM, BUT WE ACTUALLY DID AN INTERNAL STUDY LOOKING AT KIND OF AFFORDABILITY ON AN A MI PERCENTAGE.

SO OUR PROJECTS ARE WHEN YOU BLEND THE AAMIS 55% A MI COMPARED TO 80% A MI.

UM, AND WHEN YOU KIND OF TAKE INTO ACCOUNT A MI AS WELL AS THE AFFORDABILITY PERIOD, WE FALL KIND OF IN THE MIDDLE OF THE ROAD OF TIF TIF AWARDS FOR THAT KIND OF, UH, STUDY OF YEARS OF A MI REDUCTION.

OKAY, THANK YOU.

ONE OF THE QUESTIONS FROM THOSE ONLINE, CORRECT? YEAH.

UH, SO I'LL START OFF WITH A COUPLE QUESTIONS QUESTIONS AND THIS, UM, AT, AT THE RISK OF, OF TREADING A LITTLE BIT INTO THE, UM, URBAN DESIGN PEER REVIEW PANELS, SORT OF, UM, OBVIOUSLY I'VE BEEN THROUGH THAT BEFORE MYSELF.

I, THEIR, THEIR CONCERNS ABOUT, UM, HOW THE PROJECT RELATES TO THE NEIGHBORHOOD.

UM, I HAVE SOME DESIGN QUESTIONS, BUT IT'S LESS ABOUT HOW IT RELATES TO THE NEIGHBORHOOD AND MORE ABOUT MAKING SURE THAT THIS IS GOING TO BE A, A FUNCTIONAL, UH, HIGHLY FUNCTIONAL ASSET FOR, FOR A LONG TIME.

AND OUR, OUR CONVERSATION BEFORE THIS IS, IS, UH, OBVIOUS HAS OBVIOUSLY ESHA SOME OF THIS.

SO, UM, ONE OF MY CONCERNS, AND THIS IS EVOLVED OUT OF, UH, MEMBERSHIP OF DDI I AND GETTING ON BOARD THERE, IS IT'S THAT DI PICKS UP ABOUT 36,000, UM, ITEMS THAT WASTE IN DOWNTOWN TO DALLAS EVERY YEAR.

AND I THINK THAT THAT IS DOING A LARGE PART TO THE MULTIFAMILY PROPERTIES NOT PROVIDING SUFFICIENT ONSITE OUTDOOR PET SORT OF EXERCISE AND RELIEF AREAS.

UM, AND WE, WE'VE TALKED IN THE PAST ABOUT JUST POTENTIALLY THINK, OKAY, WELL IF YOU DON'T HAVE THAT, MAYBE YOU AREN'T ALLOWED TO HAVE PETS, BUT WE, UH, BECAUSE OF FAIR HOUSING LOSS AND, AND SORT

[00:40:01]

OF EMOTIONAL SUPPORT, THAT'S NOT REALLY PRACTICAL.

SO, UM, MY QUESTION IS WHAT SORT OF, UH, PET EXERCISE AND, UH, WE HAVE A PRETTY LIMITED COURTYARD, SO WE DON'T HAVE THAT INCORPORATED IN THE PROJECT.

WE CAN LOOK INTO THE PLAZA AREA AND YOU KNOW, OBVIOUSLY WE CAN HAVE BAGS AVAILABLE, THINGS LIKE THAT AVAILABLE IN THE PLAZA AREA TO KIND OF ALLEVIATE THAT.

UM, IN TERMS OF THE SCALE OF THIS PROJECT, WE WILL HAVE PROBABLY, UH, ONE OF THE AMENITIES IS USUALLY A PET KIND OF WASH AREA KIND OF PET CARE AREA.

SO WE'LL, WE'LL BE COGNIZANT OF THAT AND IN THE AREAS THAT WE CAN SUPPLY BAGS AND THINGS LIKE THAT, WE WILL, AND OBVIOUSLY, UM, OUR, OUR MAINTENANCE STAFF WOULD BE, YOU KNOW, KIND OF LOOKING AT OUR PERIMETER AND KEEPING THAT AREA TI AS WELL.

YEAH, I, I THINK, UH, MY, MY SUPPORT FOR, FOR THIS PROJECT WILL, WILL BE CONTINGENT UPON, UM, MAKING THE BEST EFFORTS, UM, EFFORT TO DEDICATE AT LEAST TWO SQUARE FEET PER UNIT OF OUTDOOR PET EXERCISE SLASH RELIEF VARIANCE INTO THE, INTO THE PLAN FOR THE PROJECT.

OKAY.

BUT MY BRAIN'S ALREADY GOING TO, WE'VE NEVER HAD A OPERATION MAINTENANCE AGREEMENT THAT CONTEMPLATES THAT, BUT UH, THAT'S SOMETHING WE CAN CERTAINLY LOOK INTO AND SEE IF IT'S POSSIBLE SO THAT NOT ONLY WOULD IT BE, YOU KNOW, WOULD IT BE BAGS, BUT THE RESPONSIBILITY BE A OWNER.

SO I'LL LOOK INTO IT.

I CAN'T PROMISE ANYTHING THAT WE CAN, AND I, I KNOW THIS IS A NEW CONCEPT, UM, BUT WHEN WE LOOK AT SORT OF THE MISTAKES WE MADE HAVE MADE PAST WITH SOME PROJECTS, I THINK THIS IS BIT AN OVERSIGHT THAT'S HAD A PRETTY DETRIMENTAL EFFECT TO THE AREAS AROUND PROJECTS THAT .

SO, UM, MY SECOND QUESTION IS, AS IT RELATES TO, UM, MOVE-INS, LOADING AND UNLOADING, UM, YOU KNOW, OBVIOUSLY THIS RUNS ON ELM STREET AND THEN BACKS UP TO THE TRAIN TRACKS.

SO MY, MY QUESTION IS JUST, UH, WHAT IS, WHAT IS THE PLAN FOR MOVEMENTS LOADING, UNLOADING WHERE RESIDENTS EXPECT IT? SO WE, WE, AND THEN ALSO, UH, TRASH, LIKE WHERE'S THIS TRASH IS GONNA BE PUT OUT ON THE, ON THE SIDEWALKS OR IS THERE UH, NO, IT'S PROBABLY, PROBABLY TRASH DUMPSTER.

OKAY.

ENCLOSED ALL, I MEAN, THIS IS GROUND UP CONSTRUCTION SO IT MEETS ALL OF THOSE REQUIREMENTS HAS LOADING AREAS.

WE NEED LOADING AREAS FOR THE RETAIL AS WELL.

SO THAT WILL ALL BE SHARED LOADING FACILITIES FOR MOVE IN, MOVE OUT, YOU KNOW, WE WERE TALKING ABOUT TWO 11 AND OBVIOUSLY WHEN YOU CAN START FROM THE GROUND UP, WE CAN MAKE ALL OF THESE THINGS HAPPEN.

AND SO THOSE HAVE ALL BEEN ADDRESSED.

AND THIS WILL OPERATE LIKE ANY OTHER CLASS, A APARTMENT COMPLEX THAT, YOU KNOW, IS DESIGNED FROM, PRETTY MUCH ASIDE FROM THAT OBVIOUSLY HISTORIC PIECE, IT'S GROUND UP, NEW CONSTRUCTION.

SO YES, THAT'S ALL.

YEAH, THE THREE, THREE QUARTERS OF THE SITE THAT WE'RE BUILDING NEW FOR UNITS IS NEW CONSTRUCTION, THE OTHER QUARTERS SYSTEM WORK, SO WORKING WITH THE CONSTRAINTS OF THE STREET CONFIGURATION, ALL THAT STUFF.

SO I DO HAVE A COUPLE QUESTIONS, UM, SOME OF WHICH MAY FALL IN THE DATED CATEGORY, BUT GETTING A CELL DEDICATED, BUT I APOLOGIZE IF THAT'S THE CASE.

ON, ON PAGE THREE, UH, AGAIN, COMMENTS ON A HIGHLY, HIGHLY DETAILED, UH, PACKAGE ON PAGE THREE, THE LAST BULLET SAYS, TO DATE ONLY 267 RESIDENTIAL.

SO ASSUME THAT USED THE WORD ONLY WAS INTENTIONAL AND THAT, THAT WE FIND OURSELVES WANTING.

AHA.

LOOK AT ME IN THAT REGARD.

UH, LEMME LEADING THE WITNESS.

.

NO, I, I ACTUALLY FORGOT THAT I HAD KIND OF A BACK POCKET THAT, SO THIS IS STRAIGHT FROM THE CITY CENTER, TIF DISTRICT GOALS AND OBJECTIVES, AND THERE'S A SEPARATE SECTION FOR LAMAR CORRIDOR WEST END AND IT SAYS TO ADD 2,500 RESIDENTIAL UNITS TO THE SUBDISTRICT.

SO, UM, WE'RE AT 11%.

SO FALLING SHORT.

YEAH, FALLING SHORT, SHORT, UM, ACTIVATE 500,000 SQUARE FEET OF VACANT GROUND FLOOR SPACE AND OR RETAIL SPACE IN THE SUBDISTRICT OR ABOUT 6.8% OF MEETING THAT GOAL.

OKAY.

OKAY.

USE, WERE ONLY WAS THERE FOR INTENTIONALLY.

OKAY.

UH, THEN WE BACK THE GROUND FOR SPACE ON GOING A LITTLE BIT OUTTA, IF YOU DON'T MIND, BUT ON, ON PAGE 22, YOU TALKED ABOUT THE CITY'S, I THINK I WANT COMPLIMENT YOU AND THE CITY ARE SAYING THAT WE DON'T HAVE TO SAY RETAIL AND RETAIL AND RETAIL ACTIVATION AROUND FOR ACTIVATION HAPPENS THROUGH OTHER USES AND YOU HAVEN'T HANDCUFFED THE DEVELOPER SAY IT MUST BE RETAIL.

I THINK IT'S

[00:45:01]

TERRIFIC AND OUGHT TO BE A FEATURE WHENEVER WE ARE LOOKING FOR THAT.

I DON'T KNOW IF IT HAS BEEN IN THE PAST, BUT IT'S, IT'S REALLY A GOOD MOVE ON GILBERT CLARK, MS. CLARK STAFF AS WELL.

BUT THEN I ALSO NOTICED ON PAGE 26 THERE IS A 40% OCCUPANCY REQUIREMENT THAT'LL BE ACROSS THE ENTIRE GROUND FOR RETAIL OR JUST THE RETAIL, THE, THAT, THAT'S CORRECT.

SO 40% OF THE NET LEASEABLE NEEDS TO BE OCCUPIED BEFORE, AND THAT DOESN'T MEAN I NEED TO SEE A LEASE WHERE SOMEONE IS PAYING.

SO NOT TO PUT MR MCGILL ON THE SPOT, BUT IF HE WANTS HIS EL CENTRO FOLKS TO BE SHOWING OFF THEIR CULINARY ARTS ON THE GROUND FLOOR AND THEY WORK A DEAL AND THEY'RE NOT PAYING A LEASE, BUT THEY'RE USING THE SPACE AND WE SEE LIGHTS ON AND CAN AND CAN CONFIRM THAT, VERIFY IT, EVEN IF IT'S NOT THROUGH AN ACTUAL LEASE, THEN WE WOULD COUNT IT.

OKAY.

I, I APPLAUD THAT FLEXIBILITY.

UH, I HAD A QUESTION ON PAGE 15.

THE FUNDING AND BUDGET, THAT SOCIAL USE OF CASH, UH, AND MS. CLARK, UNLESS YOU KNOW THE ANSWER, I WOULD, I WOULD ASK THIS OF THE APPLICANT, BUT IN THE, IN THE PRODUCT FUNDING, WE TALK ABOUT THE DEFERRED DEVELOPER FEE 4%.

I'D LIKE TO BETTER UNDERSTAND THE MECHANICS OF THAT.

AND THEN IN THE PROJECT BUDGET, USE OF CASH, THE $11.4 MILLION DEVELOPER FEE.

SO OBVIOUSLY DEFERRAL IS NOT THE ENTIRE FEE THAT MAKES TOTAL SENSE, BUT JUST IF THE APPLICANT COULD ADDRESS THE, THE MARKET, UH, THE MARKET NATURE OF THOSE, WELL REALLY AT THE TOTAL FEE, SOME CONSTRAINTS.

YEAH.

SO, UM, WE HAVE TO HAVE A CERTAIN AMOUNT OF DEVELOPER FEE AND THAT DEVELOPER FEE ACTUALLY CREATES TAX CREDITS BECAUSE IT'S ELIGIBLE BASIS.

SO THIS IS ALL PRESCRIBED BY T-D-H-C-A, A COMMERCE DEVELOPER FEE YOU'RE GONNA CLAIM BECAUSE THAT HELPS YOU TO HAVE ELIGIBLE BASIS FOR LOW INCOME HOUSING TAX CREDITS, ALSO HISTORIC TAX CREDITS.

SO THIS IS ALL IN SEARCH OF ELIGIBLE BASIS TO INCREASE THAT QRE FOR HISTORICS AND AS WELL AS THE BIOTECH.

UM, THAT ALSO IS WHAT GIVES US CUSHION, BECAUSE I CAN TELL YOU THAT OUR $103 MILLION BUDGET THAT WE SUBMITTED WE'RE ALREADY FAR ABOVE THAT.

SO THAT'S OUR CUSHION AND THAT DEFERRED FEE JUST GETS PUT IN, UM, AS AN ELIGIBLE BASIS, UH, KIND OF MECHANISM.

BUT I CAN TELL YOU THAT WHEN YOU TURN IN AN APPLICATION, YOU'RE NOT ALLOWED TO DEFER MORE THAN 50% OF ELIGIBLE BASIS TO T-D-H-C-A.

SO WE DEFER THAT A MAXIMUM WHEN WE GO INTO AN APPLICATION AND THEN, YOU KNOW, WITHIN THE YEAR AND A HALF FROM APPLICATION TO ACTUALLY DOING THIS, OBVIOUSLY THE NUMBERS CHANGE, INTEREST RATES CHANGE, THINGS LIKE THAT.

SO THAT'S BASICALLY OUR CUSHION.

AND I CAN TELL YOU THAT RIGHT NOW WHERE THE TENURE IS AND ALL OF THOSE THINGS THAT DEVELOPER FEE WILL BE AT THIS POINT A HUNDRED PERCENT.

TO WHAT EXTENT IS THE, HOW DO WE FIGURE OUT HOW MUCH THE TIF PROCEEDS ARE GOING ULTIMATE IT, BECAUSE WE'RE LOOKING AT TIP ELIGIBLE EXPENDITURES, THEY'RE GONNA SHOW US RECEIPTS OF ENVIRONMENTAL REMEDIATION.

YOU KNOW, THE AFFORDABLE HOUSING IS HARD TO QUANTIFY IF TIP ELIGIBLE, BUT WE WORK THROUGH THAT.

AS FAR AS, UM, IS IS THE METHODOLOGY FOR SIZE, THE 47 MILLION YEAR ESSENTIALLY GAP FINANCING? YOU LOOK AT THE , WE SEE WHAT THE GAP IS AND ABSOLUTELY IT'S THE FUNDING OF LAST RESORT 47 MILLION.

49 49.

YEAH.

YEAH.

SO, AND OF COURSE THE CITY CENTER TIP BOARD WILL BE LOOKING AT THAT 28 MILLION, THE TIP.

AND WITH AFFORDABLE HOUSING, IT ALWAYS ENDS UP BEING A DC MARKET CONSTRAINT.

SO IT WE'RE, WE'RE UNDERWRITING TO A 1.95 AND THAT'S ALL WE CAN BORROW.

UM, AND WE WILL OBVIOUSLY PUT OUR DEVELOPER FEE IN TOO.

AND SO WITH THAT DEFERRED DEVELOPER FEE, THAT DOESN'T COME BACK.

YOU KNOW, IT JUST COMES OUT CASH FLOW AT THAT POINT, BUT IT'S MORE OF THE MECHANISM FOR THIS TYPE OF UNDERWRITING, THIS TYPE OF TAX CREDIT TRANSACTION THAT YOU HAVE GENERALLY IN THE PAST, A LARGER DEVELOPER FEE BECAUSE THESE DEALS FOR HOW MUCH THEY COST NO CASH FLOW IN ANY WAY TO KIND OF MAKE SENSE, IF THAT MAKES SENSE.

FROM A KIND OF MARKET PERSPECTIVE, IT'S, I MEAN, THE BIGGER PICTURE IS THAT IT'S A MISSION DRIVEN BUSINESS.

UM, THERE ARE WAYS TO MAKE MORE MONEY WITH LESS RISK.

MR. SEAMAN, DOES HE HAVE A QUESTION? YEAH.

UH, CAN WE JUST BACKPEDAL REAL QUICK TO THE MINIMUM GROUND FLOOR OCCUPANCY REQUIREMENT? UM, DORSEY DID, DID YOU SAY

[00:50:01]

THAT THERE WAS NOT GOING TO BE ANY SORT OF, UM, LEASE REQUIREMENTS AND THAT IT JUST NEEDED TO BE BASICALLY A BODY IN THE SPACE? MAYBE I SPOKE OUT OF TERM, WE ARE ABSOLUTELY GOING TO NEED SOME TYPE OF VERIFICATION IF THAT IS A TRADITIONAL LEASE OR OTHER, YOU KNOW, DOCUMENTATION WITH EXPECTATION OF, OF HOW MANY HOURS IT IS, UM, UTILIZED THROUGHOUT THE DAY.

I MEAN, THAT, THAT IS IMPORTANT TO US, YOU KNOW, IF IT'S SOMETHING THAT'S LIGHTS ON 10 TO 12 EVERY MORNING AND THEN LIGHTS OFF, NO.

SO, YOU KNOW, WHETHER IT'S TRADITIONAL LEASE OR SOME KIND OF VERIFICATION, WE WILL HAVE EXPECTATION, UM, OF THAT SPACE BEING USED.

OKAY.

PERFECT.

THANK YOU FOR THAT CLARIFICATION.

AND I DO, IF I MAY, I DO NOTICE ON PAGE 22, YOU SAY WITH THE WRITTEN APPROVAL OF THE OFFICE OF ECONOMIC DEVELOPMENT DIRECTOR FOR THE ALTERNATIVE USES.

THAT'S RIGHT.

OKAY.

SO IT WOULD BE, IT WOULD BE VETTED BY THAT'S RIGHT.

RIGHT.

I MEAN, WE HAVE ANOTHER PROJECT THAT THEY HAVE KIND OF AN OUT ART GALLERY TYPE SPACE WITH PROGRAMMING AT CERTAIN HOURS.

AND SO, UM, YOU KNOW, WE WILL BE COMMUNICATING AND THEY'LL MAKE SURE THAT WE'RE GOING TO BE OKAY WITH IT BEFORE THEY, YOU KNOW, WHOEVER'S SPENDING TI DOLLARS AND GETTING IT SUITED OUT.

OKAY.

THANK YOU.

UH, ANY OTHER QUESTIONS FOR FOLKS ONLINE? I DON'T WANT TO BOG THE AGENDA.

YES, I DO, BUT I WON'T.

UM, ANYBODY ELSE? OKAY.

UM, PAGE 12.

UH, I NOTICED FOR THE FIRST TIME THAT YOUR ARCHITECT HAS BEEN PARTNERS, MICHAEL BENNETT, TALENTED MAN.

A LITTLE BIT OF A SHAME YOU COULDN'T FIND A DALLAS BASED ARCHITECT FOR A DALLAS BASED PROJECT.

JUST SAME.

THEY HAVE AN OFFICE NOW.

DO THEY REALLY? YEAH, THEY GOT A PROBABLY 21ST OFFICE.

THEY, UM, THEY HAVE A KIND OF A, TOOK A BIG GROUP OUT OF MERRIMENT THAT LEFT.

SO THEY HAVE A OH YEAH.

TERRIFIC, UH, ARCHITECT AND VERY TALENTED.

SO MOSTLY DO, UM, THAT ONE WAS ANSWERED.

UH, THIS ONE WAS ANSWERED.

AND THIS ONE MORE QUESTIONS? ANY QUESTIONS? OTHER MEMBERS OF THE BOARD? OKAY, WE'VE HAD A REPORT, WE'VE HAD APPLICANT RESPONSES, WE HAVE STAFF RECOMMENDATION TO APPROVE.

UH, I'LL TAKE A MOTION TO APPROVE THE PROJECT AS SUBMITTED.

AND JUST AS A REMINDER, THIS IS APPROVAL OF THE PROJECT, BUT REALLY IT'S APPROVAL OF THE TIP SUBSIDY AND BOARD OF RECOMMENDATION FOR APPROVAL OF SUBSIDY TO CITY COUNCIL.

THAT'S ALWAYS A LITTLE CONFUSING THAT THE AGENDA HAS THE FULL CITY SUBSIDY WHERE YOU GUYS JUST HAVE JURISDICTION OUT THE TIP.

YES.

I'LL, I'LL GO BACK TO MY, MY PRIOR COMMENT AND MAKE A MOTION TO APPROVE, BUT PROVIDE THAT IT'S CONTINGENT UPON A BEST EFFORT BASIS TO INCORPORATE ON SITE AT RELIEF AND EXERCISE FACILITIES ISSUED A PREVIOUS, YES, IT, UH, I THINK IT WAS TWO SQUARE FEET.

TWO SQUARE FEET PER UNIT.

WE HAVE A MOTION TO APPROVE, UH, WITH CONTINGENCY AS STATED.

DO WE HAVE A SECOND? I SECOND MR. SE SECOND THE MOTION.

WE HAVE A MOTION AND A SECOND.

DO WE HAVE FURTHER DISCUSSION? I MEMBERS THE BOARD? I DON'T SEE OBJECTION.

I ASSUME THAT YOU'RE OKAY WITH THAT MEETING NOW.

OKAY.

OKAY.

WE HAVE A, A, A MOTION SECOND.

SO WE'LL CALL THE QUESTION ALL IN FAVOR OF APPROVAL, UH, OF THE PROJECT IN THE MANNER THAT MS. CLARK SAID BETTER THAN I COULD SAY AND WITH THE CONDITION, UH, AS NOTED.

ALL IN FAVOR, AYE.

AYE.

AYE.

AYE.

AYE.

ARE THERE ANY OPPOSED? MOTION APPEAR TO CARRY YOU UNANIM.

THANK YOU ALL.

LOOK FORWARD TO SAME.

MR. CHAIR, WOULD YOU LIKE TO HAVE ADJOURN OUR MEETING EDUCATED? DO I NEED A MOTION TO ADJOURN OR NO, YOU CAN ADJOURN THAT ALL THE TIME, IN WHICH CASE, UH, OUR MEETING IS ADJOURNED AT 1157 ON TUESDAY, NOVEMBER 19TH.

THANKS TO EVERYONE.

THANK YOU.

THANK YOU.

A APPLICANT.