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[Dallas Mall Area Redevelopment TIF District Board of Directors Special Called Meeting on March 17, 2025.]
[00:00:02]
OKAY, GO AHEAD, START THE MEETING AT 4 0 3.
THIS IS A MEETING AT THE TAX INCREMENT FIN FINANCING REINVESTMENT ZONE NUMBER 20, MUL REDEVELOPMENT TIP DISTRICT.
UM, FIRST ON THE AGENDA, WE HAVE CALL TO ORDER AND INTRODUCTION OF, UH, THOSE PARTICIPATING, WHICH I THINK WE'VE ALREADY DONE.
WELL, WE'LL GO AROUND THE ROOM.
WE HAVEN'T MET BOARD HASN'T MET AMY YE VICE CHAIR OF THIS BOARD.
SUZANNE, DO YOU WANNA GO NEXT? OR, UH, SUZANNE SMITH, I THINK NEWEST MEMBER.
I'M MIKE SIMS. BEEN ON THE BOARD FOR A WHILE.
I'VE BEEN ON THE BOARD FOR THREE YEARS.
I'M ALSO ONE OF THE NEWEST MEMBERS.
WELCOME TO OUR TWO NEW MEMBERS.
A SECOND ITEM ON THE AGENDA IS PUBLIC COMMENTS.
WE HAVE ONE UNIDENTIFIED MEETING PARTICIPANT, UH, ROLAND GUERRERO.
YOU WANNA IDENTIFY YOURSELF PLEASE? OKAY.
UHHUH NUMBER TWO ON THE AGENDA IS PUBLIC COMMENTS PERTAINING TO AGENDA ITEMS THREE THROUGH SIX.
ITEM NUMBER THREE, REVIEW AND CONSIDERATION OF THE MEETING RECORD OF APRIL 29TH, 2024.
MEETING OF THE MALL AREA REDEVELOPMENT TIP, DISTRICT BOARD DIRECTORS KEVIN SPA WAS PRESENTED.
YEAH, THE DRAFT OF THE MEETING RECORD WAS PROVIDED IN THE PACKET.
UH, QUESTIONS ARE SOMETHING THAT ACCURATE? ONE.
ITEM NUMBER FOUR, REVIEW OF THE LAW AREA REDEVELOPMENT TIP, DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2023.
AGAIN,
UH, SO JUST A LITTLE BIT OF BACKGROUND AS THIS MANY OF THE BOARD MEMBERS KNOW, IT IS TYPICAL FOR US TO PRESENT THE FISCAL YEAR ANNUAL REPORT, UM, TO THE BOARD, TYPICALLY IN DECEMBER OR JANUARY OF EVERY YEAR.
HOWEVER, IN THIS DECEMBER AND JANUARY, THE BOARD DID NOT HAVE THE SUFFICIENT NUMBER OF APPOINTED MEMBERS IN ORDER TO HAVE A MEETING.
AND SO THE ANNUAL REPORT WAS ACTUALLY FORWARDED DIRECTLY TO THE CITY COUNCIL, UH, ON FEBRUARY 26TH.
AND THE COUNCIL DID ACCEPT AND APPROVE THE ANNUAL REPORT.
AND SO WE HAVE, WE HAVE TIMING OBLIGATIONS TO SUBMIT THOSE IN REPORTS TO THE STATE AND TO OTHER TAX AND JURISDICTIONS.
UH, BUT IN THE INTEREST OF, UM, INFORMATION SHARING, UH, WE DID WANT TO RUN, AND I DID WANT TO PRESENT AN OVERVIEW OF THE END REPORT, UM, JUST SO THAT THE BOARD CAN SEE IT AND, UH, ASK ANY QUESTIONS.
AGAIN, IT'S SIMPLY INFORMATIONAL.
UM, SO THERE'S NO ACTION SINCE COUNCIL HAS ALREADY APPROVED IT.
UM, I'LL JUST GO THROUGH SOME OF THE STUFF QUICKLY.
THERE WAS NO CHANGE IN THE MISSION STATEMENT, WHICH IS PAGE FOUR, PAGE FIVE, STARTING WITH SOME OF THE ACCOMPLISHMENTS OF THE PAST, UH, FISCAL YEAR.
UH, THE DISD SCHOOL, UM, IS STILL IN THE PROCESS OF BEING PLANNED AND DESIGNED, UM, AND CONVERTED INTO A SCHOOL, UH, FROM THE 12 STORY OFFICE BUILDING, UH, THAT THE SCHOOL DISTRICT PURCHASED BACK IN 2022.
UM, AND THIS IS THE, THE BUILDING THAT'S SET BACK OFF OF LBJ, AND IT'S ACTUALLY JUST RIGHT ACROSS THE STREET BEHIND THE PRISON BUILDING.
UM, AND I THINK DIST STILL ANTICIPATES OPENING THAT SCHOOL IN 2026.
UM, THE MONTFORD DRIVE COMPLETE STREET PROJECT, AGAIN, THIS IS, UH, A PROJECT INVOLVING MONTFORD FROM, UH, 6 35 FRONTAGE ROAD TO ALPHA.
UH, IT IS RECONSTRUCTING THE EXISTING STREET PAVEMENT WITH CONCRETE.
UM, IT'S BUILDING NEW STORM DRAINAGE, NEW WATER AND SEWER, NEW SIDEWALKS, SHARED USE PATH, BUFFERED BIKE LANES, UH,
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NEW STREET, PEDESTRIAN LIGHTING, NEW TRAFFIC SIGNALS, PAVEMENT MARKINGS, SPEED CONTROL TREATMENTS, AND OTHER PEDESTRIAN ENHANCEMENTS.THIS WAS, UH, A CONSTRUCTION CONTRACT THAT WAS APPROVED BY THE COUNCIL IN JUNE OF 2021.
IT DIDN'T ACTUALLY GET STARTED UNTIL, UM, UH, 2023.
AND IT IS BEEN OUT THERE LATELY.
WE'VE BEEN MAKING A LOT OF PROGRESS AND, UH, OUR PUBLIC WORKS DEPARTMENT FRIENDS TELL US THAT, UH, THEY EXPECT THE PROJECT TO BE DONE IN, IN, UH, YOU KNOW, IMMINENTLY IN THE NEXT COUPLE OF MONTHS.
SO THIS IS, UH, THE CAMP WISDOM PROJECT.
THIS IS THE PROJECT INVOLVING THE REDBIRD AREA, THE, THE, THE, UH, SUBDISTRICT DOWN BY REDFORD MALL.
UM, THIS IS A, A FEDERAL GRANT APPROVED, UM, THROUGH THE CONGESTION MITIGATION AIR QUALITY IMPROVEMENT PROGRAM.
UM, THERE'S A CONTRACT CALLED AN ADVANCED FUNDING AGREEMENT THROUGH TDOT.
SO THIS IS $6.3 MILLION OF FEDERAL AND STATE FUNDING MATCHED BY ONE AND A HALF MILLION DOLLARS MATCHED FUNDING, UM, THROUGH THE STREET PROPOSITION OF THE CITY'S 2017 BOND PROGRAM.
THIS IS GOING TO INVOLVE, UH, THE RECONSTRUCTION AND WIDENING OF SIDEWALKS, NEW PEDESTRIAN STREETLIGHTS, AND UPGRADES OF CROSSWALKS AND ALL TRAFFIC SIGNALS ON CAMP WISDOM FROM US HIGHWAY 67 TO WESTMORELAND.
SO YOU'RE FAMILIAR WITH THE REDFORD MALL AREA.
THIS IS THE EAST WEST ARTERIAL ROADWAY, UH, JUST TO THE NORTH OF THE MALL WHERE WE GO FROM WESTWARD TO 67.
UM, AND LET'S SEE, IN APRIL OF 2024, THE CITY ISSUED A SOLICITATION, UM, FOR ENGINEERING SERVICES.
AND IN JANUARY OF THIS YEAR, EVEN THOUGH THIS IS NOT TECHNICALLY IN LAST FISCAL YEAR'S REPORT, THE CITY CITY COUNCIL DID SELECT AN ENGINEER.
AND SO DESIGN FOR THAT PROJECT IS NOW STARTED.
UM, CONSTRUCTION WOULD IN IS ANTICIPATED TO START IN LATE 2026.
ALSO, THERE'S WHAT'S CALLED A GREEN RIBBON PROJECT.
THAT IS, UM, A LANDSCAPING, UH, ENHANCEMENT PROJECT THAT IS PARTIALLY FUNDED BY TXDOT, UM, $400,000 OF FEDERAL AND STATE FUNDING THROUGH TXDOT.
THIS IS THE INTERCHANGE AT CAMP WISDOM ROAD AND US 67.
SO IT'S JUST OFFSITE FROM THE, UH, THE REDBIRD MALL REDEVELOPMENT AREA.
AND YOU CAN SEE PICTURES IN THE INNER REPORT ON PAGE SEVEN.
UM, THESE ARE ALL THE, THE PRETTY SORT OF, UH, LANDSCAPING ENHANCEMENTS THAT, UM, TEXT DOT DOESN'T TYPICALLY DO EXCEPT THROUGH THE SCREEN RIBBON PROGRAM.
UM, NEXT PAGE, SEVEN MORE, UH, EFFORTS UNDERWAY FOR THE INTERNATIONAL DISTRICT.
UM, SO YOU MAY RECALL THAT THE CITY THROUGH A STRATEGIC PLANNING EFFORT, UM, FROM ABOUT 2021 THROUGH LATE 2022, UH, CREATED A STRATEGIC PLAN TO KIND OF REBRAND THE BALLUE GALLERIA AREA INTO, UH, THE DALLAS INTERNATIONAL DISTRICT, WHICH IS FOCUSED ON FOSTERING INTERNATIONAL TRADE, FOREIGN DIRECT INVESTMENT AND CULTURAL EXCHANGE.
SO, UH, THE CITY DID ACQUIRE, UH, 55 80 PETERSON, WHICH KNOWN AS THE PRISM PROPERTY.
AND SINCE THAT TIME WE'VE BEEN USING THAT PROPERTY, UM, TO ATTRACT TRADE GROUPS AND TRADE OFFICES.
TRADE OFFICE OF FRANCE, WHICH OPENED IN MAY OF 23, UH, NO, DECEMBER 22.
AND THEN IN MAY OF 23, THE EUROPEAN AMERICAN CHAMBER OF COMMERCE OF TEXAS.
AND THEN IN MAY OF 2024, WE ADDED ANOTHER ONE, THE TANZANIAN AMERICAN CHAMBER OF COMMERCE.
I, I THINK SUZANNE IS ACTUALLY IN THAT PICTURE.
UH, NEXT PAGE, PAGE EIGHT, UH, MORE PROGRESS TO REPORT, UM, LAST FISCAL YEAR AT REDBIRD MALL REDEVELOPMENT.
UM, SO THE CHICK-FIL-A, UH, OPENED ON NOVEMBER 9TH, 2023.
UH, WE ALSO HAD DALLAS COLLEGE'S, $5 MILLION, UH, 53,000 SQUARE FOOT WORKFORCE DEVELOPMENT AND TRAIN CENTER OPEN ON DECEMBER 8TH, 2023.
THAT'S ACTUALLY INSIDE THE MALL, UM, OUTSIDE OF THE MALL IN A, IN ALONG, UH, CAMP WISDOM ROAD.
THE DEVELOP MASTER DEVELOPER COMPLETED A NEW MULTI-TENANT RETAIL BUILDING.
UM, THIS WAS ON THE SITE OF A FORMER, UH, VACANT BLOCKBUSTER VIDEO BUILDING.
THEY DEMOLISHED THAT BUILDING AND THEN BUILT, UM, A NEW 5,400 SQUARE FOOT MULTI-TENANT RETAIL BUILDING.
UM, ALSO INSIDE THE MALL, UH, $2.1 MILLION, UH, EXPANSION, 12,600 SQUARE FOOT EXPANSION OF THE DALLAS ENTREPRENEURIAL CENTER AT REDBIRD.
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NOW A TOTAL OF 20,000 SQUARE FEET OF AN INCUBATION CENTER.UM, THAT GRAND OPENING WAS APRIL 18TH, 2024.
UM, YOU MAY RECALL THAT THE CITY COUNCIL APPROVED IN APRIL, 2023 A RESOLUTION AUTHORIZING AN ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH RANDALL'S FOOD AND DRUGS, WHICH IS THE ALBERTSONS COMPANIES.
THIS WAS TO EFFECTUATE THE DEVELOPMENT OF A $19 MILLION, 50,000 SQUARE FOOT FULL SERVICE TOM THUMB GROCERY STORE AT THE SHOPS AT REDBIRD.
UM, AND SO ALL THROUGHOUT THE PREVIOUS FISCAL YEAR, UH, FY 23, 24 ALBERTSON'S COMPANY AND THE REDBIRD DEVELOPER AND THE CITY WORKED THROUGH DESIGN AND PERMITTING, AND WE FULLY EXPECTED THAT CONSTRUCTION WOULD START IN LATE 2024.
UH, BUT AS WE ALL KNOW, IN LATE DECEMBER OF 2024, UM, ALBERTSONS WENT PUBLIC WITH THE FACT THAT THEY HAD WITHDRAWN FROM THAT PROJECT.
UH, OTHER PROGRESS STILL TO REPORT, UM, THE EXCITING PROGRESS AT REDBIRD, THE VOGEL ALCOVE SHARE, UH, CHILDCARE CENTER.
UM, SO VOGEL ALCOVE WAS APPROVED FOR, UH, A NEW MARCUS TAX CREDIT TRANSACTION BETWEEN THE CITY'S DALLAS DEVELOPMENT FUND AND JP MORGAN CHASE THAT PROVIDED APPROXIMATELY 6.6 $0.1 MILLION FOR A 14,477 SQUARE FOOT CHILDCARE AND RESOURCE CENTER AT REDBIRD, WITH THE CAPACITY TO SERVE 134 CHILDREN PAGES SIX WEEKS THROUGH PRE-K.
UM, AND SO COMPLETION OF CONSTRUCTION AND THE OPENING IN THAT CHILDCARE CENTER, UH, IS ANTICIPATED IN EARLY 2025 AND ACTUALLY IN JANUARY.
UH, ALSO ASSOCIATED WITH THE VOCAL ALCO CHILDCARE FACILITY WAS THE, UH, THE SHOPS AT REDBIRD DEVELOPER COMPLETED, UH, THE WEST WING, WHAT'S KNOWN AS THE WEST WING IMPROVEMENTS, UM, AT THE WEST SIDE OF THE MALL.
UH, THIS WAS A $9.3 MILLION IMPROVEMENT PROJECT, WHICH INCLUDED INTERIOR RENOVATIONS TO COMMON AREAS.
UM, ON THE EXTERIOR, THEY DID FACADE IMPROVEMENTS.
UH, THEY PREPARED THREE NEW TENANT SPACES, ONE OF WHICH WAS THE GEL ALCO CHILDCARE FACILITY, UH, ALL NEW WINDOWS, UH, NEW ENTRYWAY, NEW STOREFRONTS, NEW SIGNAGE, NEW LANDSCAPING AND HARDSCAPING, AND A NEW OPEN SPACE AMENITY WITH THE PLAYGROUND FOR THE KIDS AT THE CHILDCARE CENTER.
UM, AND THAT, THAT WAS COMPLETED IN LATE 2024.
SO ON THE NEXT PAGE, YOU CAN SEE SOME, SOME PHOTOS OF THAT, UH, WITH THE, UH, LITTLE PLAYGROUND.
AND THEN, OKAY, UH, THE CHART ON PAGE 11, THIS IS THE CHART THAT WE, WE HAVE IN EVERY ANNUAL REPORT FOR EVERY TIP DISTRICT.
SO THE TOP PART IS A SUMMARY OF PROJECTS WHEN WITHIN THE TIP DISTRICT THAT ARE UTILIZING TIP DISTRICT FUNDING.
THE MIDDLE OF THE CHART ARE PROJECTS THAT ARE OCCURRING IN, IN THE TIP DISTRICT, BUT NOT UTILIZING TIP DISTRICT FUNDING.
AND IN THE BOTTOM IS THE GRAND TOTAL.
UM, SO NOT A LOT HAS CHANGED WITH THIS CHART SINCE LAST YEAR.
UM, THE ONLY PROJECT IN THE, IN THE ENTIRE TIP DISTRICT THAT IS PARTIALLY FUNDED WITH TIP FUNDS IS THE REIMAGINED REDBIRD REDEVELOPMENT PROJECT.
UM, AND THEN ALL THE STUFF IN THE MIDDLE PART OF THE CHART STUFF THAT HAS OCCURRED IN THE DISTRICT WITHOUT DIRECT TO DISTRICT FUNDING.
SO THAT'S THREE APARTMENT PROJECTS AND THE, UH, THE HOTEL IN THE MONFORT SUBDISTRICT, AND THEN THE PALLADIUM AT REDBIRD, UH, APARTMENT PROJECT DOWN AT REDBIRD.
SO IN TOTAL, WE'VE GOT, UH, THUS FAR, UH, 1,336 UNITS OF MULTIFAMILY, UH, 256 ROOMS OF HOTEL.
UM, AND THAT'S AN APPROXIMATE VALUE OF $425 MILLION WITH A TIP INVESTMENT OF 15.6 MILLION.
NEXT PAGE IS JUST A CHART OF WHAT WE CALL DISTRICT INITIATIVES.
THESE ARE THINGS THAT, UH, INVOLVE THE DISTRICT, BUT ARE NOT ACTUAL, LIKE, PROJECTS WITH PRIVATE DEVELOPERS.
SO THE ACQUISITION OF PROPERTY FOR THE FUTURE CENTRAL PARK, UM, THE, THE, THE ACQUISITION OF 55 80 PETERSON LANE IS, IS THE ONLY THING ON THIS, UH, CHART.
UH, SO WE, WE PURCHASED THAT PROPERTY, UH, IN 2021 FOR $5.667 MILLION.
UH, THE MIXED INCOME HOUSING SUMMARY, THIS IS ANOTHER SECTION OF THE INTERIM REPORT FOR EVERY TIP DISTRICT.
SO THE POLICIES, UH, GOVERNING, UH, AFFORDABLE HOUSING IN CHIP DISTRICTS IN MOST CHIP DISTRICTS IS 20% OF THE UNITS THAT USE, UH, IN PROJECTS THAT USE SITE SPECIFIC CHIP DISTRICT FUNDS ARE REQUIRED TO, UH, HAVE, UH, AFFORDABLE UNITS.
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IN THE MONFORT, UH, 6 35 SUBDISTRICT.LIKE I SAID, THERE'S BEEN THREE APARTMENT PROJECTS THAT ALL OCCURRED WITHOUT TIP DISTRICT FUNDING.
AND SO THEY DO NOT HAVE ANY, UH, AFFORDABLE UNITS IN THE WESTMORELAND I 20 SUBDISTRICT.
THERE IS THE, UH, 300 UNIT PALLADIUM REDBIRD PROJECTS BECAUSE THAT PROJECT WAS PARTIALLY FUNDED THROUGH HOUSING TAX CREDITS, UH, CDBG AND HOME FUNDS AND GEN GENERAL OBLIGATION FUNDS IN THE CITY.
IT DOES HAVE AFFORDABLE UNITS IN IT.
SO 70% OF THOSE UNITS ARE RESERVED AND LEASED TO HOUSEHOLDS AT OR BELOW 60% AREA MEDIA INCOME.
AND THEN THE OTHER 30% OF THE UNITS ARE NOT, UH, INCOME RESTRICTED IN ANY WAY.
UM, MIDDLE OF PAGE 13 IS THE VALUE AND INCREMENT REVENUE SUMMARY.
UH, THIS IS HOW THE DISTRICT IS PERFORMING FROM A TAX INCREMENT STANDPOINT.
SO THE ADJUSTED BASE VALUE IN THE, THE FIRST YEAR WHEN THE DISTRICT WAS CREATED IS A TOTAL OF 76 MILLION, 148 MILLION OF THAT IS IN THE MONFORT SUBDISTRICT, AND 27 MILLION OF IT WAS IN THE WESTMORELAND SUBDISTRICT.
AND THEN THE 2024 CERTIFIED TAX ROLL, THE TOTAL APPRAISED VALUE OF ALL TAXABLE REAL PROPERTY WAS 430 30 4 MILLION.
SO THAT'S AN INCREASE OF 257 MILLION OR 146% OVER THE ADJUSTED BASE VALUE.
SPECIFICALLY IN THE MONTFORD SUBDISTRICT, UH, THE CERTIFIED TOTAL APPRAISED VALUE, ALL TAXABLE REAL PROPERTY IN TAX YEAR 2024 WAS 372 MILLION.
THAT'S AN INCREASE OF 223 MILLION, WHICH IS 150.7% INCREASE OVER THE BASE.
AND IN THE WESTMORELAND SUBDISTRICT, THE CERTIFIED TOTAL APPRAISED VALUE, ALL TAXABLE REAL PROPERTY IN TAX YEAR 2024 WAS 61 MILLION.
THAT'S AN INCREASE OF 33 MILLION OR 122.1% OVER THE ADJUSTED BASE VALUE.
SO IN BOTH DISTRICTS, THE, UH, YOU KNOW, THE, THE, THE TAX, UH, REVENUE IS, UM, IS POSITIVE.
IT'S NOT, UH, OVERWHELMINGLY POSITIVE
UM, SO YEAR OVER YEAR, THE THE TIP DISTRICT'S 2024 CERTIFIED TOTAL VALUE INCREASED BY, UH, ALMOST 30 MILLION, WHICH IS 7.4%, I THINK, OVERALL IN THE CITY.
IT WAS WENT INCREASE LAST YEAR.
UM, AND SO WITH THE CITY'S PARTICIPATION IN THIS TIP DISTRICT FOR THIS TAX YEAR, 2024 AT 90%, UH, THE CAPTURED INCREMENTAL TAX REVENUE ANTICIPATED TO BE COLLECTED INTO THE TIP DISTRICT'S FUND IN 2025 IS 1.6 MILLION.
NEXT PAGE, PAGE 14, JUST QUICK UPDATES ABOUT GOALS AND OBJECTIVES OF THE DISTRICT.
GOAL ONE WAS TO CREATE ADDITIONAL TAXABLE VALUE AND THE DEMAND FOR SUBDISTRICT.
UM, AND SO WE'RE NOW AT 5.7% OF GOAL.
GOAL TWO IS CREATING ADDITIONAL TAXABLE VALUE IN THE WESTMORELAND SUBDISTRICT, AND WE ARE NOW AT 11.5% OF THAT GOAL.
GOAL THREE IS TO CREATE, UH, TRACK NEW HIGHER DENSITY PRIVATE DEVELOPMENT IN THE MONTFORD SUBDISTRICT.
AND THERE'S ALL SORTS OF AMOUNTS HERE, BUT REALLY WE ACHIEVED 14% OF GOAL IN TERMS OF MULTI-FAMILY RESIDENTIAL AND 27% OF GOAL IN TERMS OF HOTEL ROOMS. GOAL FOUR IS, UH, AS IT RELATES TO THE WEST MARLIN SUBDISTRICT, WE ARE AT 23.5% OF GOAL FOR NEW RETAIL DEVELOPMENT.
WE'RE AT 19% OF GOAL FOR NEW MULTI-FAMILY DEVELOPMENT, AND WE'VE ALSO CONVERTED 142,000 SQUARE FEET OF FORMER RETAIL SPACE INTO OFFICE USES AND CONVERTED 193,000 SQUARE FEET OF FORMER RETAIL SPACE INTO MEDICAL OFFICE USE.
GOAL FIVE IS ABOUT, UH, ENCOURAGING REDEVELOPMENT OF PROPERTIES IN A WAY THAT'S, UH, ACHIEVES A WALKABLE DEVELOPMENT PATTERN.
AND SO, JUST, THIS IS JUST AN UPDATE ABOUT THE MONFORT DRIVE COMPLETE STREET PROJECT, WHICH IS INTENDED TO, UH, INCREASE THE WALKABILITY OF THE DISTRICT.
THE MONFORT SUBDISTRICT GOAL SIX IS TO INCREASE PUBLIC OPEN SPACE IN THE DISTRICT.
AND SO THIS, UH, UPDATE IS ABOUT THE EFFORTS THE CITY STAFF HAS BEEN MAKING TO ACQUIRE AND ASSEMBLE PROPERTIES THAT ARE NEEDED FOR THE, THE DIS THE DISTRICT'S CENTRAL OPEN SPACE.
UM, ALSO ON MAY 4TH, 2024, THE DALLAS VOTERS APPROVED ALL 10 PROPOSITIONS, COMPRISING THE GENERAL OBLIGATION BOND PROGRAM.
AND IN THAT PROGRAM THERE WAS PROPOSITION B, THE PARK AND RECREATION
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FACILITIES PROPOSITION, WHICH ALLOCATED A TOTAL OF 345 MILLION FOR, UH, FOR PARK PURPOSES, AND INCLUDING $20 MILLION SPECIFICALLY FOR THE DA DALLAS INTERNATIONAL DISTRICT LAND ACQUISITION.GOAL SEVEN IS TO GENERATE APPROXIMATELY FOUR $31 MILLION INTO DISTRICT FUND REVENUES OVER THE 30 YEAR LIFE OF THE DISTRICT.
AND RIGHT NOW, WE 1.15% OF GOAL.
UH, THE NEXT PART IS THE SUMMARY OF MEETINGS AND COUNCIL ITEMS. UH, IF YOU SEE ANYTHING HERE THAT LOOKS LIKE YOUR ATTENDANCE WAS MISREPRESENTED, WE GOT IT WRONG, LET US KNOW, BUT WE WENT BACK AND CHECKED, YOU KNOW, AND SO I THINK THESE ARE CORRECT.
UH, THERE WERE FOUR ITEMS THAT WENT TO CITY COUNCIL AS IT RELATES TO DISTRICT UH, ACTIVITIES.
THE NEXT PAGE, PAGE 18, IS THE BUDGET AND SPENDING STATUS.
UM, SO THIS IS JUST AN, UH, AN UPDATE OF THE DISTRICT'S BUDGET, UM, AS THEY'RE, YOU KNOW, SPLIT UP INTO DIFFERENT CATEGORIES ACCORDING TO WHICH SUBDISTRICT IT'S IN.
UH, SO THERE'S A WHOLE LOT OF BUDGET CAPACITY LEFT.
UH, THAT'S THE BOTTOM LINE HERE.
UH, THE WORK PROGRAM FOR THIS FISCAL YEAR, UM, IS A LOT OF THE SAME WORK WE'VE BEEN DOING IN PREVIOUS YEARS.
CONTINUED COORDINATION WITH PROPERTY OWNERS AND DEVELOPERS, UM, CONSIDERATION OF POTENTIAL DISTRICT PLAN AMENDMENTS AND BOUNDARY AMENDMENTS TO FURTHER IMPLEMENT THE PLAN, UM, COORDINATION FOR CITY INITIATED PUBLIC INFRASTRUCTURE LIKE THE MONTFORD COMPLETE STREET PROJECT.
UH, CONTINUED COORDINATION, UH, WITH THE COUNTY TO EVENTUALLY EXECUTE THE INTER LOCAL AGREEMENT NEEDED FOR THEIR PARTICIPATION.
UH, CONTINUED IMPLEMENTATION OF THE VALLEY VIEW GALLERY AREA PLAN, UM, CONTINUED COORDINATION WITH THE SCHOOL DISTRICT REGARDING THE SCHOOL, CONTINUE COORDINATION WITH THE DALLAS ECONOMIC DEVELOPMENT PREPARATION AND THE CITY'S OFFICE OF GOVERNMENT AFFAIRS.
CONTINUE IMPLEMENT IMPLEMENTATION OF THE INTERNATIONAL DISTRICT'S STRATEGIC PLAN.
BUT ALL OF THESE ARE THE THINGS WE'VE BEEN DOING AND WE'LL CONTINUE TO DO.
SO THIS IS THE APPENDIX WHERE ALL THE DETAILED FINANCIAL STATEMENTS ARE.
UM, YOU CAN SEE ON THE TOP OF PAGE 20, THE AMOUNT OF SOURCE OF REVENUE IN THE FUND.
SO WE HAD, UH, $1.5 MILLION OF COLLECTIONS BASED ON THE 2023 FINAL TAX YEAR.
AND THEN WE HAD 161,000 IN INTEREST INCOME, UM, FOR A TOTAL REVENUE OF 1.66 MILLION.
AND THEN EXPENDITURES FROM THE FUND.
WE HAD, UH, $54,000 OF ADMINISTRATIVE EXPENSES.
THESE ARE THE, THE ADMINISTRATIVE COSTS OF OUR STAFF TIME TO SUPPORT THE DISTRICT, UH, WHICH CAN BE, UH, BILLED AGAINST THE DISTRICT ACCORDING TO STATE TIFF LAWS.
UM, AND THEN $215,215,000, WHAT'S CALLED NON-CAPITAL OUTLAY.
SO THIS IS THE INTEREST PAYMENT ON THE TWO REDBIRD, UH, REDEVELOPMENT LOANS.
SO, AS YOU MAY RECALL, THE CITY, UM, LOANS, THE REDEVELOPMENT, THE REDBIRD REDEVELOPMENT, UH, DEVELOPER $12 MILLION TOTAL, UM, WITH SOME INTEREST COMPONENT TO IT.
AND SO THE TIP DISTRICT, UH, HAS A, WHATEVER IT GENERATES IN THE REDBIRD AREA, AND 10% OF WHAT'S GENERATED BY THE MONTFORD AREA, IT GOES TO PAY DOWN THE INTEREST THAT ACCRUES ON THOSE LOANS.
SO YOU CAN SEE DOWN AT THE BOTTOM, PAGE 20, THE TOTAL AMOUNT OF ESTIMATED TAX INCREMENTS WE BILLED FOR THE 2024 TAX YEAR IS $1.634 MILLION, AND WE RECEIVED $1.5 BILLION LAST YEAR.
UH, THE NEXT PAGE IS THE BALANCE SHEET AND THE STATEMENT OF REVENUES AND EXPENDITURES.
SO THE FUND BALANCE AT THE END OF THE LAST FISCAL YEAR IS $3.1 MILLION, WHICH ISN'T A LOT, BUT IT'S ENOUGH FOR THIS TRANSACTION.
THE NEXT ITEM ON THE AGENDA, UM, UH, APPENDIX B IS JUST A BREAKDOWN AGAIN, OF THE TWO LOANS, EACH LOAN OF A OF $6 MILLION THAT WAS, UH, APPROVED AND DISPERSED.
THE REDEVELOPMENT, THE MALL REDEVELOPMENT, THE REDBIRD MALL REDEVELOPMENT PROJECT.
UH, AND SO THIS IS HOW, HOW THE, UH, ACCRUAL OF INTEREST IS SHAPING UP.
UM, AND THEN FINALLY, APPENDIX C, THE LAST PAGE IS A BREAKDOWN OF WHAT'S CALLED SUBDISTRICT WIDE FUNDS.
[00:25:01]
AND SO THE, THIS TIP DISTRICT HAS AN INCREMENTAL ALLOCATION POLICY THAT WAS APPROVED BY THE BOARD OF DIRECTORS MANY, MANY YEARS AGO.AND WHAT IT DOES IS IT, IT'S A WATERFALL OF, YOU KNOW, WHAT HAPPENS TO THE INCREMENT EVERY YEAR WHEN IT GETS COLLECTED.
AND SO THERE WAS A TOTAL COLLECTION LAST YEAR OF $1.5 MILLION.
AS I MENTIONED, $1.4 MILLION OF THAT WAS GENERATED BY THE MONTFORD SUBDISTRICT.
UM, AND SO THE WAY THAT THE WATERFALL IN THE ALLOCATION POLICY WORKS IS THAT WE DOWN OUR ADMINISTRATIVE EXPENSES FIRST, AND THEN THE NET INCREMENT FROM THE MONFORT SUBDISTRICT GOES THROUGH THIS WATERFALL WHEREBY 10% GETS TRANSFERRED TO THE WESTMORELAND SUBDISTRICT.
ANOTHER 10% GETS SET ASIDE FOR SUBDISTRICT WIDE PUBLIC IMPROVEMENTS IN THE MONFORT SUBDISTRICT.
AND THAT AMOUNT WAS $103,000 AND 30% OF THE NET INCREMENT GETS SET ASIDE TO HELP WITH LINE ACQUISITION FOR THE CENTRAL OPEN SPACE.
SO THAT IS THE END REPORT FOR LAST FISCAL YEAR.
WITH THAT, I'LL STOP AND WE'LL TAKE ANY QUESTIONS, ANY QUESTIONS.
ALRIGHT, WE'LL MOVE ON TO ITEM NUMBER FIVE ON THE AGENDA REVIEW AND CONSIDERATION.
CAN JUST, JUST A REALLY, REALLY QUICK COMMENT.
I JUST WANTED TO COMMENT THAT THAT'S A GREAT REPORT, KEVIN, I KNOW YOU PUT A LOT OF WORK INTO IT AND IT DEFINITELY SPEAKS TO JUST REALLY ALL THE EFFORT THAT HAS BEEN PUT INTO THIS OVER THE LAST COUPLE OF YEARS.
SO I APPRECIATED GETTING THE SYNOPSIS AS A NEW BOARD MEMBER, BUT I ALSO JUST WANTED TO COMPLIMENT YOU ON THE LEVEL OF WORK THAT'S HAPPENED.
THAT'S THE HEAVY LIFTING THING.
REVIEW AND CONSIDERATION OF AN AND OBJECT EXCEED, UH, $1,829,328 FROM MALL AREA REDEVELOPMENT TIF FUND TO BE LEVERAGED BY 9,000,480 $672,000 FROM THE 2024 BOND FUND, PARK AND RECREATION FACILITIES PROPOSITION FEE FOR THE PROPOSED ACQUISITION.
AND A TOTAL AMOUNT NOT TO EXCEED 11,310,000 FROM MONTFORD VALLEY VIEW SHOPPING CENTER LLC OF APPROXIMATELY 79,916 SQUARE FEET, 1.83 ACRES OF COMMERCIALLY IMPROVED LAND ADDRESSED AT THE 1 3 3 0 5 MOUNTFORD DRIVE, THE NORTHEAST CORNER OFFORD DRIVE AND JAMES TEMPLE DRIVE TO BE ASSEMBLED FOR THE FUTURE CENTRAL PARK AS AN AREA PUBLIC ASSEMBLY AND THE VALLEY VIEW GALL AREA, AS ENVISIONED IN THE CITY'S VALLEY VIEW GALLERIA AREA PLAN THAT WILL BENEFIT THE MALL AREA REDEVELOPMENT TIFF DISTRICT, AND IS NECESSARY AND CONVENIENT TO THE IMPLEMENTATION OF THE MALL AREA REDEVELOPMENT, TIF DISTRICT PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN.
THAT, KEVIN, YOU'RE UH, THAT'S A LOT OF WORDS.
UH, I DO WANNA ACKNOWLEDGE, I GUESS WHEN I WAS DOING THE END REPORT SUMMARY THAT, UH, ANOTHER BOARD MEMBER JOINED.
SO, OSCAR JOINER, OSCAR, IF YOU HAVE YOUR CAMERA ON, WE'D LOVE TO SEE YOU.
BUT THANKS FOR JOINING THE MEETING.
HEY, OSCAR, HOW ARE YOU? GOOD.
ALRIGHT, SO I'LL LAUNCH INTO THE GO REVIEW OF THIS ITEM, UM, RYAN, GET IT.
SO A QUICK BACKGROUND ON, ON ALL OF THIS.
SO THIS IS GONNA BE THE SECOND PROPERTY, UH, ACQUISITION THAT WE NEED OUT OF FIVE IN ORDER TO ASSEMBLE THE, WHAT'S ENVISIONED TO BE A 20 ACRE CENTRAL PARK IN THE VALLEY NEW GALLERY AREA.
IT'S NOW KNOWN AS INTERNATIONAL COMMONS.
SO SEE THE WORD INTER INTERNATIONAL COMMONS, YOU KNOW, THAT'S WHAT WE'RE TALKING ABOUT HERE.
BUT ORIGINALLY THE AREA WAS KNOWN AS THE VALLEY VIEW GALLERIA AREA.
THE CITY ADOPTED THE, UH, VALLEY VIEW GALLERIA AREA PLAN IN MAY OF 2013, AND THEN A MONTH LATER, THEY APPROVED THE SPECIAL PURPOSE ZONING DISTRICT, UH, CALLED PD 8 87, UH, TO HELP IMPLEMENT THE PLAN.
AND THEN THE COUNCIL ALSO CREATED THE MALL AREA DISTRICT AND APPROVED THE PROJECT PLAN AND FINANCING PLAN IN, UH, 2015.
ANYWAY, UM, SO YOU CAN SEE ON THIS MAP, THE GREEN OUTLINED AREA IS THE FULL 20 ACRE PARK AS IT'S ENVISIONED.
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IS 55 80 PETERSON.THIS IS THE PRISM CENTER PROPERTY THAT THE CITY ACQUIRED IN 2021, UH, PARTIALLY THROUGH FUNDING FROM THE MALL AREA REDEVELOPMENT DISTRICT.
THE PARCEL IN RED IS THE SUBJECT PROPERTY FOR THIS PROPOSED ACQUISITION ADDRESSED AS 13 3 0 5 MONTFORD DRIVE.
UH, SO THIS IS THE EXISTING RETAIL SCRIPT CENTER ON THE WEST SIDE OF MONTFORD.
SO, AS I MENTIONED, VALUE GALLERY AREA PLAN WAS ADOPTED BY THE COUNCIL IN 2013.
THAT PLAN ESTABLISHED A COMPREHENSIVE VISION TO GUIDE FUTURE PRIVATE INVESTMENT, ECONOMIC DEVELOPMENT AND PUBLIC INFRASTRUCTURE INVESTMENTS.
UH, THERE IS AN ADOPTED ILLUSTRATIVE PLAN FOR THE AREA, WHICH WE'LL SHOW YOU ON THE NEXT SLIDE, WHICH, UH, ILLUSTRATES A MIXED USE NEIGHBORHOOD THAT'S VERY HIGH DENSITY AND PEDESTRIAN FRIENDLY, BUT IS ANCHORED BY A LARGE CENTRAL PARK.
UH, AND TWO KEY OPPORTUNITIES THAT ARE IDENTIFIED IN THE PLAN ARE TO ONE, BREAK DOWN THE BIG SUPER BLOCKS IN A PEDESTRIAN SCALE OF PARCELS, BUT TO ALSO PROVIDE A COMMUNITY SCALE CENTRAL PARK WITH THE POTENTIAL TO SERVE AS A REGIONAL DESTINATION TO SUPPORT LOCAL RESIDENTS, WORKERS AND VISITORS, AND MAKING UP A SEVERE LACK OF OPEN SPACE IN THE AREA.
THIS IS THE ILLUSTRATIVE VISION PLAN IN THE VALLEY VIEW GALLERIA AREA PLAN.
UM, SO YOU CAN SEE THAT THE PARK IS ILLUSTRATED, IS ILLUSTRATED, UM, AND THE RED PARCEL IS THE SUBJECT PROPERTY OF THIS ACQUISITION.
UH, SO YOU CAN SEE WE'RE, WE'VE GOT THE PRISON CENTER RIGHT NEXT TO IT, UH, AND WITH THIS PROPERTY WE'RE WELL ON OUR WAY TO ACQUIRING ENOUGH OF THE, UH, PART OF NOT WITH THE PROPERTY NEEDED FROM THE PARK.
SO THIS IS THE, UH, OPEN SPACE PLAN THAT'S IN THE ZONING DISTRICT.
UM, AND YOU CAN SEE THE PARK IS ILLUSTRATED THERE.
YOU CAN ALSO SEE THE NETWORK OF OTHER ADDITIONAL OPEN SPACES THAT ARE ENVISIONED, BUT THIS IS JUST TO SHOW WHERE THIS PROPERTY IS, UH, IN RELATIONSHIP TO THE PARK AS IT'S ENVISIONED.
SO IN MAY OF 2014, THE CITY COUNCIL APPROVED THE MALL AREA REDEVELOPMENT TIP DISTRICT, AND, UH, AS I MENTIONED, THE PLAN FOR THE TIP DISTRICT, UH, AND SPECIFICALLY FOR THIS, MONTFORD SUBDISTRICT IS A PROGRAM OF PUBLIC INFRASTRUCTURE INVESTMENTS, ECONOMIC DEVELOPMENT GRANTS, AND LAND ASSEMBLY FOR SIZABLE CENTRAL OPEN SPACE.
SO THE KEY HERE IS THAT IN THE MONTFORT SUBDISTRICT, THE PLAN SPECIFICALLY SAYS, IN ORDER TO STIMULATE PRIVATE INVESTMENT IN DEVELOPMENT IN THE AREA TO OCCUR EARLIER TO A HIGHER QUALITY, TO A GREATER DENSITY, AND WITH MORE PUBLIC BENEFIT THAN IT WOULD OCCUR SOLELY THROUGH PRIVATE INVESTMENT.
UM, THE CITY SHOULD GET, YOU KNOW, SHOULD STIMULATE THIS WITH THE ACQUISITION OF THE PARK.
SO THE PARK IS THE THING THAT UNLOCKS THE HIGHER AND BETTER USE OF THE PROPERTY AROUND IT, SPECIFICALLY IN THE 10 PLAN.
GOAL SIX IS TO INCREASE PUBLIC OPEN SPACE.
UM, AND THE FOLLOWING SPECIFIC OBJECTIVE SETS THAT FRAMEWORK.
IT SAYS PROVIDE FUNDING FOR THE ACQUISITION OF LAND FOR CENTRAL COMMUNITY PARK, WHICH WE ARE PROPOSING TO DO.
SO THIS IS AN AERIAL VIEW OF THE MONTFORD SUBDISTRICT WITH THE GREEN AREA BEING THE ENVISIONED 20 ACRE, FULL 20 ACRE PARK.
UM, YOU CAN SEE WE, THE PROPERTY THAT WE'RE PROPOSING TO ACQUIRE.
WELL, THE PARK WAS NEVER ENVISIONED TO FULLY RUN THE ENTIRE EAST WEST LENGTH.
IT, IT'S, SO THERE WERE PROPERTY OWNERS THAT PARTICIPATED IN THE AREA PLAN THAT OWNED THAT PROPERTY, AND IT IS
SO, SO THE, THE PARK
YEAH, I THINK THE QUESTION WAS, SO THE, THE, THE VACANT PROPERTY THAT IS TO JUST IMMEDIATELY ADJACENT TO THE WEST OF
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THE GREEN AREA, AND, AND SHE ASKED WHY ISN'T THAT ENVISIONED AS PART OF THE FUTURE PARK? AND, AND SO MY ANSWER WAS THAT THE AREA PLAN DIDN'T ENVISION ALL OF THAT PROPERTY BEING A PARK.AND SO THEY THOUGHT 20 ACRES WAS OF WAY MORE THAN SUFFICIENT SIZE.
UM, I THINK, UH, THERE, THE OWNER OF THAT PROPERTY IS ALSO, WAS ALSO REACTIVE IN THE AREA PLANNING PROCESS.
AND SO I THINK THAT THAT MIGHT HAVE
UH, YEAH, I DON'T SEE THE, THE PRI BUILDING IN THE MASTER PLAN.
WHAT HAPPENED TO THOSE TRADE OFFICES? ARE THEY MOVING SOMEWHERE? WELL, THE, SO THE, THE PRISON BUILDING WAS NEVER INTENDED TO STAY THERE LONG TERM.
SO WHILE, WHILE WE'RE IN THIS INTERIM CONDITION, UH, THE DECISION WAS MADE TO MAXIMIZE ITS USE AND, AND TRY TO USE, IT'S A CITY OWNED FACILITY, SO IT'S EASIER FOR US TO, UM, TO ATTRACT THE TRADE OFFICES IN A WAY THAT IS, YOU KNOW, ECONOMICALLY BENEFICIAL FOR BOTH PARTIES.
UH, WILL, WILL WE BE ULTIMATELY AT SOME POINT THE PARTS DEPARTMENT WILL DECIDE THAT THEY'RE READY TO DEMOLISH THE BUILDING POSSIBLY, OR KEEP IT AND REPURPOSE IT, RIGHT? THERE'S BIG DISCUSSIONS ABOUT CULTURAL CENTER GOING THERE OR OTHER ACTIVITIES HAPPENING.
ONCE THE MASTER PLAN FOR THE PARK IS DONE, BUT THEN IT COULD BE THAT THE BUILDING'S REPURPOSED.
SO WHAT ULTIMATELY HAPPENS TO THE TRADE OFFICES? I, I DON'T, I DON'T HAVE AN ANSWER FOR THAT.
I WOULD ASSUME THAT THE CITY WOULD DO EVERYTHING WE COULD TO HELP FIND THEM A NEW HOME, VERY CLOSE BY
WILL WE BE ASKED TO SUBSIDIZE THAT? I'M SORRY.
WILL, WILL, WILL IT, WILL IT REMAIN IN THE AREA? DO YOU INTEND FOR THIS AREA TO STILL BE AN INTERNATIONAL TRADE DISTRICT IN ADDITION TO THE PARK AND OTHER MASTER PLAN? AMENS? YES.
I WOULD SAY, AND THE INTERNATIONAL DISTRICT AS A, AS A, AS AN INITIATIVE AND AS A BRANDING THING IS BIGGER THAN JUST THE CHIP DISTRICT.
IT'S, IT INVOLVES, UH, THE MAYOR'S OFFICE, IT INVOLVES THE OFFICE OF GOVERNMENT AFFAIRS, IT INVOLVES THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF DALLAS.
SO THAT'S A MUCH BIGGER EFFORT, UM, THAN, THAN JUST THE CHIP DISTRICT.
HOW DID YOU COME UP UP WITH THE VALUE FOR THE PURCHASE PRICE ON THE RETAIL CENTER? WAS IT STRICTLY THROUGH THE, THE TWO APPRAISAL PROCESS THAT THE C YEAH, I, I HAVEN'T GOTTEN TO THAT POINT YET, BUT YES.
I, I'LL ANSWER THE QUESTION ABOUT THE APPRAISAL HERE SHORTLY.
THAT'S, AND I'M SORRY, AND I HOPE Y'ALL CAN HEAR ME.
UM, THAT IS WHAT WILL BE ACQUIRED AS MORE TAX DOLLARS BECOME AVAILABLE AND THE CURRENT OWNERS FEES OF THIS SPACE HAVE AGREED TO SELL THE CITY.
SO THEY'RE JUST PART OF THE CONVERSATION AS, AS HAPPENS, AND LIKE I SAID, IN THEIR WORK PROGRAM CONVERSATION, WE HAVE ONGOING DIALOGUE WITH THEM.
AND, BUT WE DON'T HAVE, THE CASH IS NOT THERE TO CLOSE THEM.
THERE'S AN HANDSHAKE AGREEMENT ON IT OR NO.
SO THEY CAN CHANGE THEIR MIND AT ANY TIME.
JUST WANTED AND THERE IS A NOT, RIGHT.
THEY HAVEN'T QUITE STARTED THEIR FUNDRAISING AS OF YET.
THANK YOU FOR THE INFORMATION.
THE THE LONG-TERM SUCCESS OF THIS AREA REALLY DEPENDS ON HAVING THE PARK AND, AND AGAIN, 20 ACRES IS THE FULLY BUILT OUT VISION FOR THE PARK.
IT DOESN'T HAVE TO BE ALL OF THAT AT ONE TIME.
LIKE THE REALITY IS WE'RE GOING TO PROBABLY START IMPROVING THE PARKS THAT WE DO GET CONTROL OF SOONER RATHER.
AND THEN WE WILL WORK ON THE OTHER STUFF LIKE YEAH.
UM, FRANKLY, BUT WHEN DEVELOPMENT STARTS TO OCCUR, WE'LL HAVE, WE'LL BE IN A MUCH BETTER POSITION.
THINK IT STARTS, DON'T SEE DOLLAR SIGNS AS WELL.
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I SEE IT.AND THEN JUST THE FUNDING FOR THE PARK IS SOMEONE, I'M SORRY IF YOU'VE ALREADY GONE THROUGH THIS, BUT FOR THE RENOVATIONS THAT DOESN'T COME OUT OF THIS TIFF FUND.
UM, AND YOU CAN SEE LIKE THE LAST BULLET, PERFECT SEGUE.
IT SAYS THE TIP PLAN NOTES THAT ALTHOUGH THE CENTRAL OPEN SPACE WILL ULTIMATELY BE OPEN, BUT THE CITY HAS ANTICIPATED THAT TIP FUNDING ASSISTANCE WILL BE NEEDED TO LEVERAGE ALL OTHER SOURCES OF NEEDED FUNDING.
THAT'S, SO THE PD HAS AN ADDITIONAL OPEN SPACE REQUIREMENT.
SO DEVELOPERS RATHER THAN PROVIDE ADDITIONAL OPEN SPACE ON THEIR SITES, CAN PAY INTO A FUND, BE IN LIEU.
THERE ARE GRANTS FROM OTHER GOVERNMENTAL ENTITIES.
NOW WE PURSUED GRANTS THROUGH THE TEXAS DEPARTMENT WILDLIFE, UM, CITY'S GENERAL OBLIGATION BONDS.
SO IN THIS PARTICULAR ACQUISITION ARE USING GENERAL
UM, A PUBLIC IMPROVEMENT DISTRICT, WHICH HAS ALWAYS BEEN ENVISIONED, UH, TO HELP WITH SUPPLEMENTAL SERVICES THAT ARE JUST LIKE HOR PARK AROUND PARK HELPS PAY FOR ALL THE PROGRAM, ALL THE SUPPLEMENTAL SERVICES, AND THEN PRIVATE PHILANTHROPIC CON CONTRIBUTIONS.
SO THE FOUNDATION'S JOB IS TO RAISE FUNDS TO HELP GET THE PARK ASSEMBLED, BUILT, MAINTAINED PROGRAM.
AND THEN IN OTHER PARTS OF THE CITY NOT REQUIRE LAND, UH, FOR, FOR PHILANTHROPIC CONTRIBU.
I WAS GONNA SAY, JUST, JUST TO BE CLEAR, SO THE, THE 2024 BOND PROGRAM PARKS PROPOSITION, YOU KNOW, DID HAVE $20 MILLION SET BAKED INTO IT FOR ACQUISITION OF PROPERTIES FOR THIS PARK.
SO THIS PROPOSED ACQUISITION'S, UH, GONNA USE NINE AND A HALF MILLION.
SO NEXT SLIDE IS PICTURES OF THE PROPERTY TO BE ACQUIRED.
A LITTLE BIT ABOUT THAT PROPERTY.
IT IS 79,000 SQUARE FEET, 1.83 ACRES.
IT CURRENTLY HAS A ONE STORY MULTI-TENANT RETAIL BUILDING THAT'S 25,000 SQUARE FEET.
HAS 12 EXISTING RETAIL TENANTS, UH, BUILT IN 1972.
UH, HAS ALL PUBLIC UTILITIES CURRENTLY ZONED REGIONAL RETAIL.
UM, SO WE DID DO TWO APPRAISALS, UH, IN NOVEMBER.
SUBJECT PROPERTY WAS A HUNDRED PERCENT OCCUPIED AT THAT TIME.
UH, MOST OF THE LEASES ARE ONE TO FIVE YEAR, I THINK ALL THE LEASES ARE UNDER FIVE YEARS.
UM, THE ESTIMATED STABILIZED NET OPERATING INCOME FOR THE PROPERTIES ABOUT 540,000.
AND SO WITH THE CONVEYANCE OF THIS PROPERTY TO THE CITY IN FEE SIMPLE, THE CITY WILL ASSUME ALL USUAL AND CUSTOMARY DOCUMENTS THAT ARE NECESSARY APPROPRIATE AND CONVENIENT TO ENSURING A SMOOTH TRANSITION OF OWNERSHIP.
SO THAT MEANS ALL EXISTING TENANT LEASES, ALL EXISTING PROPERTY MANAGEMENT CONTRACTS, ANY SERVICE CONTRACTS.
SO THE TOTAL PURCHASE PRICE FOR THIS ACQUISITION IS 11,310,000.
UH, AND THAT IS BASED ON AN INDEPENDENT APPRAISAL.
SO THAT'S 11 2 5 PLUS, UH, NOT TO EXCEED A $60,000 FOR CLOSING COSTS AND NO RELOCATION EXPENSES.
SO THAT MEANS IF WE WERE TO BE ACQUIRING A PROPERTY THAT HAD, UM, APARTMENT RENT, UH, WE'D BE REQUIRED BY
IT DOESN'T APPLY TO COMMERCIAL PROPERTIES.
SO WE DON'T HAVE ANY RELOCATION EXPENSES.
WE'RE GOING TO ASSUME THE EXISTING TENANTS, THEY WILL STAY THERE OR CHOOSE TO LEAVE ON THEIR OWN COURSE.
I NOTICED THE MAJORITY OF THOSE LEASE MONTH TO MONTH, OR WHAT'S THE LONGEST LEASE? I THINK UNDER FIVE YEARS.
I, I MEAN, I HAVEN'T LOOKED AT THE EXACT RED HOLE.
SO WE FEEL LIKE TIME TO START.
SO THE, AS AS WE DO WITH THE PRISM CENTER, I MEAN, BUT MORE EXPLICITLY NOW AFTER SOME LESSONS LEARNED, THE CITY'S PARKS AND REC DEPARTMENT, WE'LL RETAIN ALL RESPONSIBILITY FOR THE PROPERTY.
SO THAT MEANS ALL OPERATIONS, MAINTENANCE, REPAIRS, THEY WILL MANAGE THE CONTRACT FOR A PROPERTY MANAGER THAT WILL HANDLE ALL TENANT
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RELATIONS.UH, THE PROPERTY WILL REMAIN UNDER THE MANAGEMENT RESPONSIBILITY OF PARK AND REC DEPARTMENT UNTIL WE DECIDE WHAT TO DO WITH IT.
THEY MAY, YOU KNOW, IN, IN YEAR FIVE, THEY MAY BE READY TO DEMOLISH IT AND START PARK IMPROVEMENTS.
UM, IF THEY'RE NOT READY TO DO THAT, THEN THEY'LL, UH, THEY'VE BEEN, THE PARK BOARD DID ADVISE THAT THEY WANTED TO OFFER THREE YEAR, UH, RENEWALS, UM, WITH 180 DAY TERMINATION CLAUSES.
SO IT GIVES THEM FLEXIBILITY SO THAT AT THE TIME THEY THINK THEY'RE READY TO TURN IT INTO A PARK, THEN IT'S A SIX MONTH PROCESS TO GET EVERYBODY OUT.
UM, SO IN THE MEDIUM TO LONG TERM, IT IS ANTICIPATE THE CITY WILL DEMOLISH THAT STRUCTURE OR POSSIBLY KEEP IT.
I DON'T ANTICIPATE IT BEING KEPT, BUT IT, IT'S POSSIBLE.
UM, AND SO, UH, AN IMPORTANT PART OF THIS ACQUISITION IS THAT, UM, THE APPROVAL OF THE ACQUISITION IS WITH THE CONDITION THAT THE PROPERTY IS NOT OFFICIALLY DEDICATED AS MUNICIPAL PARKLAND UNTIL SUCH TIME AS THE PROPERTY IS FULLY DEVELOPED.
PRISON
SO IT BASICALLY SAYS WE'RE, WE'RE GONNA KEEP IT AS A PRIVATE PRIVATELY OPERATING WITH PRIVATE USERS IN IT FOR A WHILE, AND EVENTUALLY IT WILL BECOME A PARK.
AND AT THAT TIME, THEN IT'LL BE OFFICIALLY PUT INTO THE PARKLAND INVENTORY.
THERE'S CERTAIN VERY SPECIFIC RULES ABOUT PROPERTY THAT'S IN THE PARKLAND INVENTORY.
UM, AND SO IT IS, IT WILL NOT BECOME PARKLAND INVENTORY UNTIL NEXT SLIDE.
SO THIS IS JUST A RECAP OF THE RECOMMENDATION.
AGAIN, IT'S 1.829 MILLION FROM THE TIP DISTRICT SHOULD BE LEVERAGED BY NEARLY 9.5 MILLION FROM THE 2024 PARK AND ION PARK AND RECREATION FACILITIES PROPOSITION B.
UM, SO IT'S A TOTAL AMOUNT NOT TO EXCEED 11,310,000.
AND I'M NOT GONNA READ ALL THE REST OF THAT, BUT THAT IS, THAT'S OFFICIALLY WHAT THE MOTION IS.
RIGHT? UM, BECAUSE IT IS NECESSARY AND CONVENIENT TO THE IMPLEMENTATION OF THE TIP DISTRICT'S PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN.
TECHNICALLY, THIS PROPERTY IS NOT IN THE TIP DISTRICT, BUT THAT ISN'T A PROBLEM BECAUSE YOU'RE ALLOWED TO SPEND DISTRICT DOLLARS OUTSIDE OF THE ZONE, UH, FOR PLACES OF PUBLIC ASSEMBLY.
AND THAT'S WHY WE'VE CALLED THIS OUT AS AN AREA OF PUBLIC ASSEMBLY.
UM, AND SO THAT IS THE OFFICIAL MOTION.
UM, THE NEXT STEPS REAL QUICK BEFORE WE TAKE MORE QUESTIONS, THEN THIS WILL BE ON THE AGENDA FOR MARCH 26TH, ASSUMING THAT THIS BOARD FAVORABLY RECOMMENDS APPROVAL.
UH, AND TYPICALLY AFTER THE COUNCIL AUTHORIZES THE ACQUISITION, THEN IT'S ANOTHER 30 TO 45 DAYS ACTUALLY CLOSED.
EVERYTHING SHOULD GO SMOOTHLY AND WE SHOULD BECOME PROUD OWNERS OF THIS PROPERTY, PROBABLY BY
SO WITH THAT, I'LL STOP AND I'M TAKING REMAINING QUESTION QUESTIONS.
ANYBODY? UM, I HAD ONE JUST ON THE VALUE OF NOVATION, YOU KNOW, ON A PER SQUARE FOOT BASIS.
I KNOW THAT YOU'RE BUYING THE, THIS PARCEL IN THIS BUILDING FOR STRATEGIC PURPOSES OF ASSEMBLAGE, OF, FOR PARKLAND, BUT ON A PER SQUARE FOOT BASIS SEEMS HIGH FOR THE, THE PRICE SEEMS HIGH FOR, UH, YOU KNOW, A STRIP CENTER THAT HAS, YOU KNOW, A, A NOT A LOT OF CREDIT TENANTS IN THERE.
UM, YOU KNOW, GOOD LOCATION, GOOD, GOOD TRAFFIC AND ALL VISIBILITY.
BUT JUST, BUT I GUESS THE APPRAISER DIDN'T FEEL THAT WAY.
I MEAN, IT SOUNDS LIKE, WELL, WE HAD TWO APPRAISALS INDEPENDENTLY DONE.
THE CITY'S NOT ALLOWED TO BUY IT ABOVE THE APPROVED.
WE CAN'T, WE CAN'T EVEN, YEAH, WE CAN'T OVERPAY IT.
ANY OTHER QUESTIONS? UM, KEVIN, DO WE NEED TO HAVE SOMEONE MAKE A MOTION FOR THIS, PLEASE? MOTION.
MAY I HAVE A MOTION TO APPROVE THIS ACQUISITION? I'LL MAKE MOTION.
ALL THOSE IN FAVOR? THANK YOU.
SECOND SUZANNE, OR IS IT YOU OR MIKE? MIKE.
THIS IS A LOT OF HARD WORK TO GET THESE DEALS DONE
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AND VERY EXCITING.WE HAVE ONE MORE ITEM ON THE AGENDA.
I THE MOST IMPORTANT ITEM ON YOU AGENDA, ARE YOU CONSIDERATION OF A REGULAR MEETING SCHEDULE FOR THE FALL AREA DEVELOPMENT TIF DISTRICT BOARD OF DIRECTORS FOR
AND I'LL SAY FOR KEVIN, WE, WE NEED TO HAVE A REGULAR, YOU KNOW, SCHEDULE FOR OUR MEETINGS, BUT IT IS AT THE DISCRETION, WELL, THERE'S BUSINESS PROPER CONSIDER WE WILL KEEP THE MEETING, BUT AGAIN, THESE ARE PLACEHOLDERS.
UH, THE CITY SECRETARY'S OFFICE DOES REQUIRE ALL BOARDS AND COMMISSIONS TO ESTABLISH, UM, YOU KNOW, SO WE'VE, WE WOULD'VE ALREADY HAD ONE IN FEBRUARY.
SO THESE ARE JUST PROPOSED DATES.
UM, IF THE BOARD SO CHOOSES, WE CAN CHANGE ANY OF THESE, BUT IF NOT, WE'LL JUST PUT THEM ALL DOWN AS, DO WE HAVE THOSE, KEVIN? PROBABLY THE VERY LAST ITEM.
LAST ITEM MAY 22ND, SEPTEMBER 11TH AND DECEMBER 18TH.
YEAH, TYPICALLY THE DECEMBER 18TH MEETING IS GONNA BE THE ONE WHERE WE PRESENT.
UM, THEN THE OTHER TWO MEETINGS ARE KIND OF QUARTERLY IN TERMS OF CADENCE.
WE, WE NEED TO MAKE A MOTION ON THIS, OR WE JUST PRESENTED THE
YEAH, WE SEEK ACTION AND APPROVAL, RIGHT? YES.
MAY I HAVE, UM, A, UH, MOTION TO APPROVE THE MINUTES? I MEAN, APPROVE THE MEETING SCHEDULED FOR 2025.
THIS CONCLUDES THE MEETING AT 4:55 PM THANK YOU EVERYBODY.