[00:00:02]
[Public Facility Corporation Meeting on May 27, 2025.]
MY NAME IS KEITHI'D LIKE TO CALL THIS MAY 27TH, 2025 MEETING TO ORDER IN DALLAS CITY HALL, PRECISELY AT PUBLIC O'CLOCK PM ON TIME.
MOVING ON ITEM NUMBER TWO, ROLL CALL, SAND ALL.
STACY MARSHALL, RONALD SIMPSON.
BRIAN BLANKENSHIP, I VICTOR ALITO.
PRESENT KEVIN WINTERS WORLD STONE.
SINCE YOU'VE BEEN ME OUT, KEEP
I'D LET THE RECORD REFLECT THAT WE HAVE A FORM HAS BEEN ESTABLISHED.
MOVING ON TO ITEM NUMBER THREE, PUBLIC TESTIMONY.
DO WE HAVE ANY PUBLIC TESTIMONY ON ITEMS NUMBER FOUR THROUGH 14? UH, SAM, HAS ANYONE SIGNED UP ONLINE FOR PUBLIC TESTIMONY? NO.
IF ANYONE WANTS TO SPEAK ONLINE, PLEASE RAISE YOUR HAND.
SEEING NONE, WE'LL MOVE ON TO ITEM NUMBER FOUR.
DISCUSSION AND APPROVAL OF THE MINUTES OF THE APRIL 22ND, 2025 DPFC BOARD OF BOARD MEETING AND MAY 9TH, 2025.
SPECIAL MEETING, SPECIALLY CALLED MEETING HAVE ONE.
CORRECTION, DIRECTOR, STINSON.
UH, ITEM 11 ON THE MINUTES FROM, UH, APRIL 22ND.
UH, NUMBER 11, FORM OF NEW BOARD MEMBERS TO COMMITTEES, UH, TO SUGGEST THERE IN THE, UH, SECOND SENTENCE THAT WE INSERT, UH, DIRECTED AS NEW BOARD MEMBERS TO THE OUTREACH COMMITTEE.
JUST TO SPECIFY THE ACTUAL COMMITTEE THAT, UH, DIRECTORS BROWN AND
ANY OTHER ADDITIONS OR CORRECTIONS TO BOTH MEETINGS? AGENDAS? MOVE TO APPROVE BOTH, UH, MINUTES WITH DIRECTOR, CITIZENS CHANGE, MOVE BY DIRECTOR.
A SECONDED BY DIRECTOR CALLAS.
ALL IN FAVOR SIGNIFY BY SAYING AYE A.
ANY OPPOSITION? THE MINUTES WERE BOTH THE APRIL 22ND AND MAY 9TH MEETING HAVE BEEN APPROVED.
DO WE HAVE ANY COMMUNITY ANNOUNCEMENTS? UH, DPFC, OPEN HOUSES, PROJECTS OPENING? WE DO, UM, WE HAVE ECHO ONLINE.
YEAH, SO WE DO HAVE, UH, TWO ANNOUNCEMENTS.
ONE IS THE, THE FINCH, FORMERLY THE ELMS PROJECT IS HAVING A, UH, ART, UH, EXHIBIT SORT OF, UH, AS A SOFT OPEN HOUSE FOR ANYONE IN THE NEIGHBORHOOD THEY WOULD LIKE TO ATTEND.
UH, AND SWEDEN HAS ALSO ASKED THAT, UH, YOU KNOW, ANY OF THE BOARD MEMBERS THAT WOULD LIKE TO, TO, YOU KNOW, ATTEND THAT, UH, EVENT, BE THERE AS WELL.
THAT'S ON, UH, JUNE 20TH FROM SIX TO 9:00 PM AND, UH, YEAH, IF ANYONE NEEDS ANY ADDITIONAL INFORMATION, PLEASE FEEL FREE TO REACH OUT TO ME OR TO SUITE MANSON.
SMART, UH, SMART LIVING RESIDENTIAL.
THE ADDRESS OR TWO? TWO, YEAH.
SO ADDITIONALLY, UH, JACKIE WILL BE, UH, TRANSITIONING TO WORKING TO THE, UH, FOR THE HFC.
SO THIS WILL BE HER LAST BOARD MEETING WITH US.
[00:05:01]
AND, UH, YOU KNOW, GOOD LUCK TO YOU OVER THERE.WELL SERVED JACKIE, CONGRATULATIONS ON YOUR NEW ADVENTURE AND, UM, WE'LL BE SEEING MORE OF YOU, I'M SURE.
AND I DO WANNA POINT OUT IN THE AUDIENCE IS, UH, JASMINE VALEY, SHE WILL BE, UH, STEPPING IN AS INTERIM ADMINISTRATOR FOR THE HOUSING DEPARTMENT OF H.
THANK YOU FOR ALL YOUR SERVICE.
AND THAT'S WHAT WE GOT FOR ANNOUNCEMENTS.
MOVING ON TO ITEM NUMBER SIX, ETHICS DISCLOSURES.
DPFC BOARD MEMBERS SHOULD DISCLOSE ANY RELATIONSHIP A MEMBER MAY HAVE WITH THE PROJECTS TO BE CONSIDERED ON, ON THIS AGENDA OR WITH ANY DEVELOPER, PARTICIPANT, OR FINANCIAL BENEFICIARY OF THE PROJECTS TO BE CONSIDERED ON THIS AGENDA, EVEN IF THAT RELATIONSHIP DOES NOT RELATE TO A SPECIFIC PROJECT THAT DPFC BOARD IS CONSIDERING.
MOVING ON TO ITEM NUMBER SEVEN, THE DISCUSSION REGARDING THE, THE FENCING AND SECURITY FOR 9 9 9 9 TECHNOLOGY BOULEVARD, MR. MCDANIEL.
YEAH, SO, UM, WE ARE KIND OF IN THE PROCESS OF FIGURING THAT PROJECT OUT FINALLY AND, AND PUTTING IT, UH, ON STRAIGHT NARROW AND, AND GETTING IT ON TRACK.
UH, WE'RE SUPPOSED TO BE CLOSING THE CDG LOAN PORTION OF OUR PROJECT TODAY.
UM, IF NOT TODAY, IT WOULD BE LIKELY TOMORROW, BUT AIMING FOR TODAY.
AND, UH, AFTER THAT WE ARE AIMING TO FULLY EXECUTE ALL DOCUMENTS RELATING TO THE PROJECT, UM, BY JUNE.
SO FROM THERE WE WILL, UH, GET REIMBURSED FOR THE SECURITY AND, UH, FENCING AND, AND ALL EXPENSES, UH, RELATED TO THE PROJECT AT
AND, UH, YEAH, I, I THINK, YOU KNOW, AS FAR AS THE SECURITY TEAM, THEY'RE DOING A GREAT JOB, UH, PUT US A NO TRESPASSING SIGNS AS WELL.
SO THERE'S, YOU KNOW, SOME EXPENSES TO BE REIMBURSED, BUT OTHERWISE WE'RE ON TRACK ON THAT.
UH, IN THIS BACK TO OUR NORMAL OPERATIONS,
SO NORMALLY IN, IN MY DEVELOPMENT EXPERIENCE, WE HAVE DATES.
YEAH, WE WE'RE IRONING OUT, UH, OUR DOCUMENTS RIGHT NOW AND THE CLOSING DATE IS GONNA BE BASED ON, UH, WHEN WE HAVE ALL OF THOSE, UH, CLOSING DOCUMENTS FULLY FIGURED OUT, THEN THEY NEED TO GO TO DEBT AND EQUITY, MAKE SURE THAT THEY HAVE TIME FOR COMMENTS.
SO IT'S REALLY KIND OF DEPENDING ON HOW FAST DEBT EQUITY CAME BACK TO US.
SO THEY GAVE US BRIDGE, UH, AT THAT POINT BECAUSE THERE'S STILL SOME, SOME, YEAH, EXACTLY.
THE REGULATORY AGREEMENTS ARE SOMETHING THEY NEED TO SIGN OFF ON AND THEY MIGHT HAVE ADDITIONAL COMMENTS AS WELL, BUT, UH, LOOKING GOOD ON THAT.
SO SAM, UH, YOU MENTIONED THE C DG LOAN.
DOES THAT INCLUDES, SO ARE THEY CLOSING ON ALL THEIR FINANCING? SO THE CONSTRUCTION LOAN AND EVERYTHING, OR JUST WE'RE JUST UPDATING CDG LOAN DUMP IN STORE, REFLECT THE NEW, UM, UNIT COUNT AND UH, YEAH, BECAUSE IT, WITH THIS CHANGE PROJECT EXACTLY.
TO, TO HIT THOSE WHOLE CURRENT, UM, THAT, BECAUSE THE CITY NEEDS TO REPORT ON, UH, ALL PROJECTS THAT THOSE MONEY GO, GO TO, SO THEY CAN GET THAT DONE SOONER.
SO WHAT, WHAT ARE THEY THINKING, UH, ON, ON, UH, CONSTRUCTION? DO THEY, UH, WHAT'S THEIR RANGE FOR STARTERS? WELL, THEY WANT, THEY WANT TO GO IMMEDIATELY.
THEY WANT TO GET IT, YOU KNOW, AS SOON AS THEY CLOSE THEY WANNA TAKE, TAKE OVER AND, AND GET GOING WITHIN IT'S PRETTY STANDARD.
SO THEY ARE CLOSING ON THEIR FINANCING BACK? NO, SO, OH, UH, SORRY, I THOUGHT YOU WERE TALKING ABOUT THE SECOND PORTION WHERE WE'RE BE CLOSING, UH, ON, YOU KNOW, ALL OF OUR STANDARD DOCUMENTATION, THE CCB DG PORTION IS HAPPENING TODAY.
AND THEN THAT'S JUST GETTING THE CBDG LOAN DOCUMENTS, ALL, ALL IRONED OUT AND SUPPORTING DOCUMENTS.
AND THEN WE'RE GONNA BE GETTING OUR, UH, OUR LEASE, YOU KNOW, DEVELOP AGREEMENT, ALL OUR TYPICAL DOCUMENTS.
SO THEY'RE, SO THE, THE CDG LOAN, CDBG LOAN CHANGE, WHATEVER THAT LOOKS LIKE THAT'S HAPPENING TODAY? MM-HMM.
AND THEN THEY'RE GONNA CLOSE ON THEIR
[00:10:01]
CONSTRUCTION LOAN AND OTHER FINANCING AND THE THIRD REPORT WILL GET YOU CORRECT.I WAS WONDERING, DO THEY HAVE, UH, WEEKLY CLOSING CALLS? I'M NOT SURE.
I CAN, I CAN, UH, SUMMER TALK ABOUT THAT.
SUMMER, ARE YOU ONLINE? I'M HERE SUMMER.
DO, UH, DOES, UM, BUT, UM, GO OUT NEXT TO HELLO,
[00:17:26]
BUT UM, GO.[00:42:07]
[00:42:09]
READY[00:42:09]
TO[00:42:09]
GO[00:42:10]
ONLINE.MY NAME IS KEITH
I'D LIKE TO CALL THIS MAY 27TH, 2025 MEETING TO ORDER IN DALLAS CITY HALL, PRECISELY AT 12:00 PM ON TIME.
MOVING ON ITEM NUMBER TWO, ROLL CALL SAND.
STACY MARSHALL, RONALD SIMPSON.
JASON BROWN, PRESENT KEN MONTGOMERY.
PRESENT KEVIN WINTERS WORLD STONE SINCE YOU'VE BEEN ME OUT.
I'D LET THE RECORD REFLECT THAT WE HAVE A FORM HAS BEEN ESTABLISHED.
MOVING ON TO ITEM NUMBER THREE, PUBLIC TESTIMONY.
DO WE HAVE ANY PUBLIC TESTIMONY ON ITEMS NUMBER FOUR THROUGH 14? FOUR THROUGH 14? UH, SAM, HAS ANYONE SIGNED UP ONLINE FOR PUBLIC TESTIMONY? NO.
IF ANYONE WANTS TO SPEAK ONLINE, PLEASE RAISE YOUR HAND.
SEEING NONE, WE'LL MOVE ON TO ITEM NUMBER FOUR.
DISCUSSION AND APPROVAL OF THE MINUTES OF THE APRIL 22ND, 2025 DPFC BOARD OF BOARD MEETING.
SPECIAL MEETING, SPECIALLY CALLED MEETING HAVE ONE.
CORRECTION, MR. DIRECTOR STINSON.
[00:45:01]
FROM, UH, APRIL 22ND.UH, NUMBER 11, FORM OF NEW BOARD MEMBERS TO COMMITTEES, UH, TO SUGGEST THERE IN THE, UH, SECOND SENTENCE THAT WE INSERT, UH, DIRECTED AS NEW BOARD MEMBERS TO THE OUTREACH COMMITTEE.
JUST TO SPECIFY THE ACTUAL COMMITTEE THAT, UH, DIRECTORS BROWN AND BLANKENSHIP BE PART OF.
ANY OTHER ADDITIONS OR CORRECTIONS TO BOTH MEETINGS? AGENDAS? MOVE TO APPROVE BOTH, UH, MINUTES WITH DIRECTOR CENSUS CHANGE BY DIRECTOR MONTGOMERY, SECONDED BY DIRECTOR CALLAS.
ALL IN FAVOR SIGNIFY BY SAYING AYE A.
ANY OPPOSITION? THE MINUTES WERE BOTH THE APRIL 22ND AND MAY 9TH MEETING HAVE BEEN APPROVED.
WE HAVE ANY COMMUNITY ANNOUNCEMENTS, UH, DPFC, OPEN HOUSES, PROJECTS OPENING? WE DO, UM, WE HAVE PECO ONLINE.
YEAH, SO WE DO HAVE, UH, TWO ANNOUNCEMENTS.
ONE IS THE, THE FI FORMALLY THE ELMS PROJECT IS HAVING A, UH, ART, UH, EXHIBIT SORT OF, UH, AS A SOFT OPEN HOUSE FOR ANYONE IN THE NEIGHBORHOOD THEY WOULD LIKE TO ATTEND.
UH, AND SUITE HAS ALSO ASKED THAT, UH, YOU KNOW, ANY OF THE BOARD MEMBERS THAT WOULD LIKE TO, UH, YOU KNOW, WITHIN THAT, UH, EVENT BE THERE AS WELL.
THAT'S ON, UH, JUNE 20TH FROM SIX TO 9:00 PM AND, UH, YEAH, IF ANYONE NEEDS ANY ADDITIONAL INFORMATION, PLEASE FEEL FREE TO REACH OUT TO ME OR TO SWEN SMART, UH, SMART LIVING RESIDENTIAL.
CAN YOU REMIND ME THE ADDRESS? THE ADDRESS OR TWO? TWO, YEAH.
SO ADDITIONALLY, UH, JACKIE WILL BE, UH, TRANSITIONING TO WORKING TO THE, UH, FOR THE HFC.
SO THIS WILL BE HER LAST BOARD MEETING WITH US.
JUST WANNA SAY THANKS TO JACKIE, ALL OF OUR HEALTH AND, UH, YOU KNOW, GOOD
WE'LL OBSERVE SIR JACKIE, CONGRATULATIONS ON YOUR NEW ADVENTURE, AND, UM, WE'LL BE SEEING MORE OF YOU, I'M SURE.
AND I DO WANNA POINT OUT IN THE AUDIENCE IS, UH, JASMINE VALEY, SHE WILL BE, UH, STEPPING IN AS INTERIM ADMINISTRATOR FOR THE THOUSAND DEPARTMENT, UH, HOC UP.
THANK YOU FOR ALL YOUR SERVICE.
THAT'S WHAT WE GOT FOR ANNOUNCEMENTS THIS TIME AROUND.
MOVING ON TO ITEM NUMBER SIX, ETHICS DISCLOSURES.
DPFC BOARD MEMBERS SHOULD DISCLOSE ANY RELATIONSHIP A MEMBER MAY HAVE WITH THE PROJECTS TO BE CONSIDERED ON THIS AGENDA OR WITH ANY DEVELOP OR PARTICIPANT OR FINANCIAL BENEFICIARY OF THE PROJECTS TO BE CONSIDERED ON THIS AGENDA, EVEN IF THAT RELATIONSHIP DOES NOT RELATE TO A SPECIFIC PROJECT THAT DPFC BOARD IS CONSIDERING.
MOVING ON TO ITEM NUMBER SEVEN, THE DISCUSSION REGARDING THE, THE FENCING AND SECURITY 4, 9 9 9 9 TECHNOLOGY BOULEVARD, MR. MCDANIEL.
YEAH, SO, UM, WE ARE KIND OF IN THE PROCESS OF FIGURING THAT PROJECT OUT FINALLY AND, AND PUTTING IT, UH, ON THE STRAIGHT NARROW AND, AND GETTING IT ON TRACK.
UH, WE'RE SUPPOSED TO BE CLOSING THE CBDG LOAN PORTION OF OUR PROJECT TODAY.
UM, IF NOT TODAY, IT WOULD BE LIKELY TOMORROW, BUT AIMING FOR TODAY.
AND, UH, AFTER THAT WE ARE AIMING TO FULLY EXECUTE ALL DOCUMENTS RELATING TO THE PROJECT, UM, BY JUNE.
SO FROM FROM THERE, WE WILL, UH, GET REIMBURSED FOR THE SECURITY AND, UH, FENCING AND, AND ALL THOSE FENCES, UH, RELATED TO THE PROJECT AT BURG.
AND, UH, YEAH, I, I THINK YOU KNOW, AS FAR AS THE SECURITY
[00:50:01]
TEAM, THEY'RE DOING A GREAT JOB, UH, PUT US A NO TRESPASSING SIGNS AS WELL.SO THERE'S, YOU KNOW, SOME EXPENSES TO BE REIMBURSED, BUT OTHERWISE WE'RE ON TRACK ON THAT.
UH, GET THIS BACK TO OUR NORMAL OPERATING PROCEDURES.
DO WE HAVE A SPECIFIC CLOSING DATE? THE SPECIFIC DATE THAT I WAS TOLD WAS A RANGE OF DATES, UH, THAT WERE FROM THE, UH, OR TO, UH, THE END OF JUNE.
SO
YEAH, WE WE'RE IRONING OUT, UH, OUR DOCUMENTS RIGHT NOW AND THE CLOSING DATE IS GONNA BE BASED ON, UH, WHEN WE HAVE ALL OF THOSE, UH, CLOSING DOCUMENTS FULLY FIGURED OUT, THEN THEY NEED TO GO TO DEBT AND EQUITY, MAKE SURE THAT THEY HAVE TIME FOR COMMENTS.
SO IT'S REALLY KIND OF DEPENDING ON HOW FAST DEBT AND EQUITY CAME BACK TO US.
SO THEY GAVE US A BRIDGE, UH, AT THAT POINT BECAUSE THERE'S STILL SOME, SOME, YEAH, EXACTLY.
THE REGULATORY AGREEMENTS ARE SOMETHING THEY NEED TO SIGN OFF ON AND THEY MIGHT HAVE ADDITIONAL COMMENTS AS WELL.
BUT, UH, LOOKING GOOD ON THAT.
SO SAM, UH, YOU MENTIONED THE CDB CHIEF LOAN.
DOES THAT INCLUDES, SO ARE THEY CLOSING ON ALL THEIR FINANCING? SO THE CONSTRUCTION LOAN, EVERYTHING JUST, WE'RE JUST UPDATING CG LOAN DOCUMENT TO REFLECT THE NEW, UM, UNIT COUNT AND, UH, YEAH, BECAUSE IT, WITH THIS CHANGE PROJECT EXACTLY.
TO, TO GET THOSE ALL CURRENTS, UM, THAT, BECAUSE THE CITY NEEDS TO REPORT ON, UH, ALL PROJECTS THAT THOSE MONEY GO, GO TO, SO THEY CAN GET THAT DONE SOONER.
SO WHAT, WHAT ARE THEY THINKING, UH, ON, ON, UH, CONSTRUCTION? DO THEY, UM, WHAT'S THEIR RANGE FOR STARTERS? WELL, THEY WANT, THEY WANT TO GO IMMEDIATELY.
THEY WANT TO GET IT, YOU KNOW, AS SOON AS THEY CLOSE, THEY WANT TAKE, TAKE OVER AND, AND GET GOING WITHIN IT'S PRETTY STANDARD.
SO THEY ARE CLOSING ON THEIR FINANCING BACK? NO, SO, OH, UH, SORRY, I THOUGHT YOU WERE TALKING ABOUT THE SECOND PORTION WHERE WE'LL BE CLOSING ON, ON, YOU KNOW, ALL OF OUR STANDARD DOCUMENTATION, THE CG PORTION IS HAPPENING TODAY.
AND THEN THAT'S JUST GETTING THE CBDG LOAN DOCUMENTS, ALL, ALL IRON OUT AND SUPPORTING DOCUMENTS.
AND THEN WE'RE GONNA BE GETTING OUR, UH, OUR LEASE, YOU KNOW, DEVELOPMENT AGREEMENT, ALL OUR TYPICAL DOCUMENTS.
SO THEY, SO THE, THE CDBG LOAN, CDBG LOAN CHANGE, WHATEVER THAT LOOKS LIKE THAT'S HAPPENING TODAY MM-HMM
AND THEN THEY'RE GONNA CLOSE ON THEIR CONSTRUCTION LOAN AND OTHER FINANCING AND THE THIRD REPORT WILL ISSUE.
I WAS WONDERING, DO THEY HAVE A WEEKLY CLOSING CALLS? NOT SURE.
I CAN, I CAN, UH, SUMMER TALK ABOUT THAT.
SUMMER, ARE YOU ONLINE? I'M HERE SUMMER.
DO, UH, DOES, UM, 9 9 9 9 TECHNOLOGY, DO THEY HAVE WEEKLY CLOSING CALLS? NO, WE HAVE NOT BEEN HAVING WEEKLY CALLS.
IN MY EXPERIENCE, THE WEEKLY CLOSING CALLS CAN HELP THEM.
USUALLY IT HELPS THE DEVELOPER, UM, HELP THEM IF THEY'RE HAVING ISSUES LIKE THIS, IT CAN HELP 'EM PUSH THE ENVELOPE WITH, UH, ALL THE PARTIES INVOLVED, BE IT A LAW FIRM, A UNDERWRITER CITY, THE BFC, UH, YOU KNOW HOW IT GOES UP WITH OTHER CLOSINGS.
UH, SURPRISINGLY, THEY DON'T HAVE, UH, CLOSING WEEKLY CLOSING CALLS, ESPECIALLY THIS CLOSE TO CLOSING CAN USUALLY PUSH THINGS ALONG AND MAKE SURE IT DOESN'T, UH, LINGER.
THAT'S WHY I ASKED ABOUT A CLOSING DATE.
'CAUSE WITH THE CLOSING CALLS, YOU CAN MAKE SURE THAT EVERYBODY STAYS ON SCHEDULE.
IT, IT'S NOT ENTIRELY UNUSUAL ON THE NON, UM, TAX CREDIT, NON, UM, BOND DEALS FOR US TO NOT HAVE A WEEKLY CLOSING CALLS.
BUT, UM, CERTAINLY WE CAN, GIVEN THE CHALLENGES THAT THAT WE'VE HAD SO FAR WITH THIS PROJECT, I CAN CERTAINLY ASK THEM TO, TO START HAVING AT LEAST AN UPDATE CALL FOR US, UM, SO THAT WE MAKE SURE THAT, UM, THAT WE'RE STAYING APPRISED OF EVERYTHING THAT'S GOING ON.
MY PERSONAL OPINION, THAT WOULDN'T BE A BAD IDEA.
'CAUSE I, I'VE FOUND MY EXPERIENCE THAT IF WE SEE A PROBLEMS COMING UP, WE CAN GET AHEAD OF IT, MAKE SURE WE MAKE THE CLOSING DATE.
YOU, I'LL TOUCH FACE WITH JAKE AFTER THIS, SEE IF WE CAN'T AMEN.
[00:55:03]
PROJECT, WE NEED TO MAKE SURE WE'RE KEEPING IT ON TRACK.YEAH, IT'S USUALLY DRIVEN BY THE DEVELOPER BECAUSE THEY WANNA MAKE SURE THAT THEY HAVE THEIR ARCHITECT AND EVERYBODY ELSE, ALL THEIR DIFFERENT TEAMS IN MIND SO THAT SECOND THOSE FUNDS ARE TRANSFERRED, THEY CAN START MOVING THROUGH.
I THINK A, A FAIR, UM, TARGET TO SAM ALONG THESE LINES WOULD BE, IF WE'RE NOT CLOSED BY THE TIME THEY MEET NEXT FUND HAVE AN EXACT DATE BECAUSE THEY, THEY SHOULD, UM, OR AT LEAST WE GO.
SAM, DO WE KNOW HOW SOON, UH, WILL THEY REIMBURSE PEFC FOR THE, UH, FENCING AND THE SECURITY? YEAH, THEY WILL BE REIMBURSING US AND CLOSE FOR ALL OF THOSE EXPENSES.
UM, SO WHEN WE EXECUTE OUR FINAL DOCUMENTS, UH, MAKE CLOSE THE CONSTRUCTION LOAN, EVERYTHING IN THAT, UH, MID TO LATE JUNE, UH, CLOSE DATE, ALL THE EXPENSES LOWER BY PFC WILL BE REIMBURSED AT THAT TIME.
ARE QUESTIONS MOVING ON TO ITEM NUMBER EIGHT? UH, WILL SAM, UH, MY UNDERSTANDING THAT ITEM NUMBER EIGHT HAS THEM FULL? YES.
THAT WOULD BE OUR NEXT, UH, BOARD MEETING.
AND, UH, CAN YOU GIVE THE BOARD JUST A BRIEF LITTLE UPDATE AS TO WHY? YEAH, WE, THIS, UH, THIS PROJECT NEEDS TO, UH, IT HAS SOME, SOME DEVIATIONS IN OUR STANDARD TERMS, SO WE NEED TO IRON THE DOCUMENTATION OUT FOR THAT, UM, BEFORE WE PUT IN FRONT OF YOU GUYS AND, UH, STILL, STILL ON TRACK TYPE OF RIGHT NOW, BUT WE NEED TO BACK SO WE CAN, UH, HAVE YOU GUYS APPROVE THE DOCUMENTATION THAT'S SUPPOSED TO REMAIN JUST THE PROJECT.
DOCUMENTATION IS
SO WHEN IT COMES BACK, IT'S JUST GONNA BE A TERM SHEET ONE OPTION.
AND, UH, JUST TO CONFIRM FOR THE PUBLIC RECORD, UH, CROWN PRO SAID THAT THIS ONE MONTH DELAY WILL NOT AFFECT THE DEVELOPMENT, CORRECT? CORRECT.
MOVING ON TO ITEM NUMBER NINE, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET FOR JEFFERSON WHEATLAND PARTNERSHIP WITH JPI TO BE LOCATED AT 1150 WEST WHEATLAND ROAD, DALLAS, TEXAS, 7 5 2 3 2, AND 1200 WEST PICKMAN ROAD, DALLAS, TEXAS 7 5 2 3 2, UH, SAM.
CARSON WILL BE DOING A PRESENTATION.
SOPHIA WILL BE BRINGING HER COMPUTER OVER THERE, GIVING HIM A, UH, YOU KNOW, LITTLE TUTORIAL ON HOW TO USE IT.
SO THE TWO PHASE PROJECT, DIFFERENT UNITS, UM, IN DISTRICT, EACH, UH, THERE IS KPI'S, THE MAIN PARTNER, UM, SAM, HOLD ON PLEASE.
UM, CAN YOU, UH, CONFIRM THAT, UH, DIRECTOR OF BLANKENSHIP IS ONLINE? HEY, PRIME, CAN YOU, UH, TURN YOUR CAMERA ON AND JUST CONFIRM THAT YOU'RE HERE BY SAYING PRESENT, UH, WITH THE CAMERA ON PRIME.
WELCOME DIRECTOR OF BLANKENSHIP.
AND I'LL ALSO LIKE THE DIRECTOR REFLECT THAT, UH, DIRECTOR MONTGOMERY RECUSED HIMSELF FOR ITEM NUMBER NINE.
HE'LL TELL US, YOU KNOW, THIS IS THE SAME PROJECT THAT WE HAD TALKED ABOUT ABOUT, UH, IN OUR LAST BOARD MEETING, AND SHE WANTS TO GO THROUGH RETURNS AND GET THE PROCESS STARTED.
SO I'LL HAND IT OVER TO YOU, CARSTEN.
AWESOME, THANK YOU SO MUCH, SAM.
BOARD MEMBERS, MY NAME IS CARSTEN LOWE AND I'M AN AFFORDABLE HOUSING DEVELOPMENT MANAGER AT JPI.
AND YOU HAVE HEARD FROM US BACK ON APRIL 22ND WHEN WE WERE LAST HERE TO INITIALLY DISCUSS THIS PROJECT, DISCUSS WHAT OUR VISION WAS FOR THE JEFFERSON PROJECT.
IT IS A TWO PHASE DEVELOPMENT OF SAM INVENTION, FIRST PHASE BEING 450 UNITS, AND SECOND PHASE BEING 295 UNITS.
AND I WILL NOTE THAT THE LAST TIME WE SPOKE, WE WERE DISCUSSING POTENTIALLY A BOND TRANSACTION.
[01:00:01]
WHILE THAT IS SOMETHING WE'D LIKE TO FURTHER EVALUATE, THAT'S NOT WHAT'S BEFORE YOU TODAY.TODAY WE ARE DISCUSSING SPECIFICALLY JUST A TRADITIONALLY FINANCED PFC
AND SO AS WE'VE WORKED THROUGH THIS, AS WE HAVE MADE SOME PROGRESS ON PROJECT, THE GOAL OF THIS
NOW A BRIEF OVERVIEW OF WHO JPI IS.
WE'RE A 30 5-YEAR-OLD MULTIFAMILY DEVELOPER AND HAVE BEEN HEADQUARTERED OUT IN DFW OUR ENTIRE HISTORY.
WE'VE BEEN THE LARGEST MULTIFAMILY DEVELOPER IN THE METRO PLACE FOR THE LAST EIGHT YEARS.
AND OUR VISION FOR WHAT WE DO IS TO TRANSFORM BUILDING AND ENHANCE COMMUNITIES AND IMPROVE LIVES.
WE BELIEVE WE DO THAT BY BUILDING A BEST IN CLASS TRIAL.
AND SO WHAT WE'RE PRESENTING TODAY HERE IS NO DIFFERENT.
AS YOU CAN SEE, WE HAVE SCALED TRAVERSING THE ENTIRE METROPLEX AND, UH, NO STRANGER TO DOING WORKFORCE HOUSING TRANSACTIONS.
UH, AND SO TO BACK UP A SECOND, THE PROJECT ITSELF IS LOCATED OFF OF WHEATLAND ROAD JUST NORTH OF I 20.
AND MILLER, WHEN HE WAS HERE, UH, GAVE JUST SOME BACKGROUND ON HISTORY OF THE DEVELOPMENT.
AND SO SINCE THEN, ON MAY 15TH, WE HAD A NEIGHBORHOOD OUTREACH MEETING AT FRIENDSHIP WEST BAPTIST CHURCH AT PHENOMENAL MEETINGS, GREAT COMMUNITY TURNOUT.
SO I'D LIKE TO INVITE, UM, RICHIE BUTLER UP HERE ON BEHALF OF THE DEVELOPMENT TEAM WHO REPRESENTS THE CHURCH, BUT TO ALSO HELP GIVE SOME, UH, COLOR TO THE DEVELOPMENT AND THE PROGRESS WE'VE MADE.
UH, GOOD AFTERNOON, RICHIE BUTLER.
I'M AN ADVISOR, UH, TO FRIENDSHIP WEST ON THIS PARTICULAR, UH, DEVELOPMENT.
AND JUST WANNA GIVE YOU SOME COLOR AS IT RELATES TO THE, TO THE CHURCH.
UH, FRIENDSHIP WEST, UH, SITS ON 60 ACRES, AND I HAVE BEEN ADVISING IN THE LAST FOUR YEARS AND CREATING THE OVERALL MASTER PLAN THAT WOULD BE, UH, MIS MISUSE, UH, FOCUSED ON BRINGING, UH, WORKFORCE HOUSING, UH, BOTH, UH, RENTAL AND FOR SALE, UH, SOME RETAIL AND VARIOUS USES.
AND, AND SO WE'VE BEEN THROUGH THAT PROCESS.
WE WERE INTRODUCED TO JPI, UH, AS A PART OF THEIR EFFORTS TO NOT JUST OUR 60 ACRES, BUT THE 18 ACRES NEXT DOOR TO THE CHURCH, UH, AND THAT BETWEEN THE CHURCH, UH, AND THE DALLAS COUNTY, UH, BUILDING.
AND SO WE ARE DEFINITELY IN SUPPORT AND NOT JUST IN SUPPORT.
UH, PART OF OUR 60 ACRES, ROUGHLY 10 OF THE, OF OUR 68 OF THE CHURCHES, 60 ACRES, UH, WILL BE PART OF THIS PARTICULAR, UH, DEVELOPMENT.
AND SO THAT, I THINK BREAKFAST IS ABOUT 290 OUT, SEVEN OF THE PLUS UNITS, UH, THAT WILL BE DEVELOPED.
AND WHAT THE CHURCH IS, UH, MOST EXCITED ABOUT IS TO BRING, UH, THE QUALITY OF, OF HOUSING THAT JPI IS KNOWN FOR IN THE WAY OF, UH, CLASS A PRODUCT, UH, THAT WOULD BE, UH, UH, MIXED INCOME.
SO, UM, AND RARELY CAN WE BRING THAT, UH, MAKE THAT REALITY, BUT THE EXCITEMENT IS THAT TO BRING CLASS A HOUSING, UH, AND MIXED INCOME, UH, UH, MODEL AND DOING IT IN THE SOUTHERN SECTOR.
SO WE THINK THIS IS A TRANSFORMATIONAL PROJECT AND, UH, WANT TO LIKE TO BE A PART OF IT IN THE CHURCH WILL INCLUDE THE LAND INTO THE, INTO THE VENTURE.
SO THE CHURCH WILL BE IN THIS PARTICULAR TRANSACTION.
AND SO, AS RICHIE HAD MENTIONED, YOU KNOW, THIS DEVELOPMENT IS REALLY GOING TO BE A PART OF A BROADER TRANSFORMATION OF THE AREA.
YOU CAN SEE HERE THE TWO PHASES OF BUDDING UP TO THE BROADER 60 ACRES OF THE FRIENDSHIP WEST CHURCH LAND.
AND AS A PART OF THE DEVELOPMENT, IT WILL ULTIMATELY OPEN THE DOOR FOR ADDITIONAL RETAIL OPPORTUNITIES FOR A POTENTIAL HOTEL FOR ENTERTAINMENT AND SPORTS COMPLEXES FOR THE CHURCH TO USE TO INVITE THE COMMUNITY IN TO BUILD SOMETHING THAT MAKES LAST AN IMPACT.
SOME OF THE FEEDBACK WE HEARD FROM THE NEIGHBORHOOD MEETING IS THAT YES, THEY WANTED BEST IN CLASS QUALITY HOUSING AND THAT THERE ISN'T ENOUGH MARKET RATE HOUSING IN THE AREA, ESPECIALLY IN THIS KIND OF QUALITY.
BUT SIMILARLY, THEY WANT OPTIONS.
THEY WANT DIFFERENT RESTAURANTS THAT THEY CAN GO TO AFTER THEY FINISH CHURCH OR PLACES TO BRING THE FAMILY AND HANG OUT A PLACE FOR PEOPLE TO ENGAGE.
AND SO OUR VISION IS THAT THESE TWO PHASES OF MULTI-FAMILY HOUSING CREATES THAT CREATES THE DOORWAY AND CREATES THE PATH TO HAVE THIS MASTER PLAN COMMUNITY REALLY MAKE AN IMPACT.
AND SO HERE YOU CAN SEE JUST THE TWO PHASES SIDE BY SIDE.
THE FIRST PHASE WE WOULD BE DOING IS THE ONE TO THE FURTHER EAST OR THE RIGHT SIDE OF THE SCREEN.
THE, THE AMENITIES YOU SEE COME STANDARD IN ALL OF OUR JPI PROPERTIES, OUR POOL AND COURTYARD LANDSCAPE, UH, JUST OUTDOOR AMENITY SPACES AT LARGE, DOING SECURE ACCESS BOTH INTO THE COMPLEX AND THROUGHOUT THE BUILDINGS.
SO THAT'S KEY FOB ACCESS IN THE BUILDINGS INTO THE CORRIDORS.
AND SO THAT CREATES A SENSE OF SECURE DOG PARKS, UH, RESIDENT GARDENS.
AND SO YOU CAN SEE HERE THAT JUST IN GENERAL, THIS IS A PLACE WHERE PEOPLE CAN COME
[01:05:01]
CONGREGATE AND FELLOWSHIP.AND SO WE'VE SPENT SOME TIME WORKING WITH SAM AND, UH, THE GRACEFUL TEAM AND THE HILLTOP TEAM REALLY APPRECIATE THEIR TIME.
WE FEEL LIKE WE'VE MADE GREAT STRIDES SINCE WE MET WITH YOU LAST.
AND SO WHAT YOU'LL SEE UP ON THE SLIDE SHOULD BE COMING UP HERE IN A SECOND, ARE THE KEY TERMS FOR THE MOU.
SO WE SOUGHT TO SEE WHAT DOES THE PFC LOOK FOR WHEN THEY'RE ANALYZING KEY TERMS, WHAT'S DOWN THE FAIRWAY FOR THEM? AND SO WHAT WE CAME TO IS $250,000 PER PHASE PER PFC UPFRONT FEE, 25% OF SALES TAX SAVINGS, ALSO AS A FEE TO PFC.
SO ON PHASE ONE, THAT'S ROUGHLY $800,000 FOR THAT SALES TAX SAVINGS.
AND ON PHASE TWO, IT'S CLOSER TO ABOUT 350 TO 400,000.
AND THEN YOU CAN SEE AN ANNUAL GROUND LEASE PAYMENT FOR PHASE ONE.
THAT'S $540,000 A YEAR INCREASING 3% ANNUALLY.
AND FOR PHASE TWO, $260,000 INCREASING AT 3% ANNUALLY.
AND THAT ANNUAL INCREASE STARTS ONCE THE PROJECTS HAVE ACHIEVED 90% FISCAL OCCUPANCY PERSPECTIVE.
AND THEN THERE'S ALSO A 0.5% OF THE GROSS REFINANCE FOR SALE PROCEEDS THAT'S AVAILABLE.
AND SO AS PART OF THIS, YOU ALSO SEE BELOW THE INCOME BANS.
SO BOTH DEVELOPMENTS ARE SEEKING TO PROVIDE 10% AT 60%
AND I THINK AN IMPORTANT THING TO NOTE HERE IS OUR DEVELOPMENT TEAM HAS COMMITTED TO REDUCING THE 80% RENTS TO BE AT A MINIMUM, A 10% DISCOUNT TO MARKET RATE.
AND SO WHAT THAT CREATES IS ON PHASE ONE, A $9.2 MILLION RENT SAVINGS AND AN $8.6 MILLION BENEFIT TO THE PFC, EXCLUDING THE SALE FOR A TOTAL OF $17.8 MILLION IN PUBLIC BENEFIT.
AND ON PHASE TWO, THAT'S $6.3 MILLION IN RENTAL SAVINGS WITH A $4.8 MILLION BENEFIT TO PFC EXCLUDING SALE FOR A TOTAL OF $11.1 MILLION.
SO IN TOTAL, THIS DEVELOPMENT NOT ONLY IS GREAT FOR THE COMMUNITY, HELPS ENGAGE THE NEEDS OF JUST THE PEOPLE THAT LIVE AROUND THERE.
AND I WILL SAY FROM THAT MEETING WE HAD THERE ON A, OR ON MAY 15TH, THE FEEDBACK WAS OVERWHELMED.
WE HAD ALMOST 20 TO 30 LOCAL NEIGHBORS SAY THAT THIS COULD BE SOMETHING THAT COULD HELP TRANSFORM THEIR COMMUNITY.
AND SO NOT ONLY IS IT GOOD FOR THE COMMUNITY, BUT WE BELIEVE IT'S ALSO GOOD FOR THE PFC FOR HELPING ACHIEVE Y'ALL'S MISSION, FOR YOUR VISION OF PROVIDING AFFORDABLE HOUSING AND WORKFORCE HOUSING ACROSS THE CITY.
AND SO YOU CAN SAY, SEE, AND YOU'VE SEEN SOME OF THESE RENDERS BEFORE WHEN WE LAST PRESENTED TO YOU, BUT NO, TWO OF OUR COMMUNITIES ARE EXACTLY THE SAME.
WE LOOK AT THE NEEDS OF THE COMMUNITY TO CREATE TRANSFORMATIVE FACADES AND CREATE AN ENVIRONMENT, UH, THAT FRAMES THE NEIGHBORHOOD FEEL AND CREATES AN AMBIANCE.
THOSE AMENITIES I WAS TALKING ABOUT EARLIER.
YOU CAN SEE THE FULLY, UH, FURNISHED FITNESS CENTER BEST IN CLASS, 24 HOUR EXITS, THE RESORT STYLE TOOLS, OUTDOOR CABANA AREAS, AND JUST LUXURY FINISHES THROUGHOUT.
AND THAT'S INCLUDING INSIDE THE UNITS.
WE DO QUALITY GRANTED OR QUARTZ COUNTERTOPS WITH WATER EFFICIENT FIXTURES, ENERGY EFFICIENT LIGHT FIXTURES.
AND SO IT'S A PLACE WHERE NO MATTER WHERE YOU COME FROM, YOU WOULD BE HAPPY TO CALL, HAPPY TO CALL HOME.
AND THEN AS FAR AS THE RENDERINGS, SO WE SPENT SOME TIME WITH THE URBAN PLANNING PEER REVIEW DEPARTMENT, AND THESE ARE JUST SOME CONCEPTUAL RENDERINGS.
THESE ARE BY NO MEANS SET IN STONE, BUT WE TOOK THEIR FEEDBACK THAT THEY GAVE US TO CREATE THE, SOLVES THAT FRAME THE LARGER AREA AND CREATE A TRANSFORMATIVE DEVELOPMENT.
AND SO YOU CAN SEE JUST SOME OF THE AMENITIES FEEL AND WHAT THIS WOULD LOOK LIKE FOR THIS AREA.
SO WITH THAT SAID, I'LL PAUSE THERE, UM, AND MORE THAN HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE PROJECT FOR THE, FOR THE DEVELOPMENT AT LARGE.
UM, SO WILL THAT BE PART OF THE TERM SHEET THAT THE 80% UNITS WILL BE 10% RATE? YES.
THANK YOU FOR YOUR PRESENTATION.
UM, WHEN DO YOU, WHEN DO YOU PLAN ON ACHIEVING 90% PHYSICAL? SURE.
OUR GOAL IS TO HAVE FIRST UNITS ON THE GROUND FROM 18 MONTHS AFTER WE CLOSE.
SO WHEN WE BREAK GROUND, THAT'S WHEN WE'LL START TURNING UNITS OVER AND YOU CAN START RELEASING IT.
AND SO WE TEND TO SEE ANYWHERE FROM 20 TO 30 UNITS PER MONTH.
SO, UH, SOME BACK AP MAP, I MEAN, IT WOULD PROBABLY BE HERE IF WE'RE CLOSING IN A YEAR, PROBABLY ABOUT TWO, THREE YEARS, OR ABOUT THREE YEARS WOULD PROBABLY BE WHEN WE WOULD HIT THAT 90% FISCAL
[01:10:01]
OCCUPANCY ON PHASE ONE.AND THEN PHASE TWO IS A STAGE DEVELOPMENT.
SO A YEAR AFTER WE CLOSE PHASE ONE, THAT'S WHEN WE'LL TRY TO BREAK GROUND ON PHASE TWO.
SO WE DON'T, WE DON'T RECEIVE ANY GROUND RENT PROBABLY FOR THREE OR FOUR YEARS.
BUT YOU WILL RECEIVE AN UPFRONT, THE PAYMENT TO THE PFCS AND THE SALES TAX SAVINGS UNDERSTAND, CORRECT? CORRECT QUESTION.
SO AS, AS IT RELATES TO THE, UH, UH, THE OCCUPANCY STANDARD, SO WE'RE SAYING PROJECT, ARE WE TALKING ABOUT FOR EACH PHASE OR TOTAL PHASE OF, SO FOR WHICH SPECIFICALLY ARE YOU REFERRING TO? SO THE ANNUAL INCREASES, SO EACH, EACH PHASE, SO THAT FIVE 40 WILL INCREASE THAT 3%, AND THAT TWO 60 WILL INCREASE 3% ANNUALLY.
AFTER THAT PARTICULAR PHASE, CORRECT.
DIRECTOR BRAND, I JUST WANTED TO ASK YOU AS DISTRICT CAKE REPRESENTATIVE, WHAT HAVE YOU HEARD FROM YOUR NEIGHBORHOOD ON, ON THIS
I DON'T THINK IT'S BEEN THIS TYPE OF HOUSING INVESTMENT IN THIS AREA OUTSIDE OF WHAT'S BEEN DONE WITH, UH, TAX CREDITS AND, AND REDBIRD.
SO, UH, THE COMMUNITY HAS BEEN EXCITED AND IT'S BEEN REFRESHING TO THEM TO SEE THE TYPE OF CAPITAL INVESTMENTS BEING MADE.
UM, I THINK, UH, IT'S, IT'S, IT'S A TRIPLE BOTTOM LINE IMPACT HERE.
UM, WE'RE GETTING HOUSING, UH, WE'RE ALSO NOT GETTING INDUSTRIAL WAREHOUSES THERE.
UM, AND SO THE, THE NUMBER ONE THING THAT I KEEP HEARING IS DON'T DISCOUNT OUR NEIGHBORHOOD AND BRING QUALITY HOUSING.
MIXED INCOME IS, IS WHAT THEIR FIGURE OBJECTIVES THEY WISH TO SEE THROUGH THIS PROJECT.
AND WITH ANYTHING THAT'S COMING INTO THAT, THAT, THAT DISTRICT DIRECTOR STENSON I'D TOO LIKE TO WRITE OFF.
UH, THANK YOU FOR YOUR PRESENTATION AND, UH, YOUR COMPANY'S COMMITMENT.
ALL ALL YOU AGREE WITH, UH, DIRECTOR BROWN.
A QUICK LITTLE, UH, HISTORY HERE IS THAT, UH, ORIGINALLY THAT LAND, UH, THIS IS EVEN FOR FRIENDSHIP WEST, UH, BUILT THEIR FACILITY.
I WAS ON THE PLANNING COMMISSION THEN, BUT THE COMMUNITY PUSHED FOR SPORTS COMPLEX.
WE DIDN'T HAVE ONE OVER THERE AT ALL ORIGINALLY.
EVENTUALLY THE SPORTS COMPLEX WAS PUSHED ACROSS THE HIGHWAY, UH, WHERE IT'S AT NOW.
UH, AT THAT TIME MY DAUGHTER WAS IN, IN, UH, EITHER ELEMENTARY OR JUNIOR HIGH.
SO COMMUNITY WAS ALWAYS CONCERNED ABOUT WHAT WAS GOING TO GO, UH, ON THAT LAND.
EVENTUALLY, OF COURSE, THE FRIENDSHIP WEST, UH, BUILDING, UH, THE FACILITY THEY HAVE NOW.
UH, AND I WAS INVOLVED WITH THE PASTOR AND DISCUSSING A LOT OF THE, UH, TERMS INSTEAD OF HOW THE ZONING WOULD GO.
UM, SOME OF THE ORIGINAL THINGS THAT HE HAD IN MIND IN THAT COMMUNITY WAS, UH, QUALITY HOUSING, RETAIL, UH, RESTAURANTS, UH, AT THAT TIME SEEMED LIKE IT WAS PIE IN THE SKY.
THAT'S WHAT WAS BEING PUSHED FOR.
BUT MULTIPLE, UH, UH, AGENDAS KEPT COMING, TRYING TO CHANGE THE ASPECT OF THE REMAINING LAND.
AND SO OF COURSE, THE, UH, UH, SINCE THAT TIME YOU HAD, YOU NOW HAVE THE SOUTHERN DALLAS, UH, UH, MUNICIPAL, UH, GOVERNMENT, UH, BUILDING THERE AND SHERIFF'S TRAINING, UH, BUILDING, UH, NEXT TO IT, RIGHT NEXT TO THE FREEWAY.
AND OF COURSE, UH, AS DIRECTOR BROWN JUST MENTIONED, UH, ONE OF THE BIGGEST THREATS AT THAT TIME WAS ANOTHER WAREHOUSE TRUCK FACILITY, WHICH WE, UH, ALL KNOW THAT THEY'RE IN OAK CLIFF, DALLAS AREA.
WE HAVE MORE THAN ENOUGH TO SATISFY EVERYBODY, BUT THEY STILL KEEP COMING.
SO I'M FAMILIAR WITH, UH, OTHER JPI DEVELOPMENTS THERE IN OAK CLIFF.
UH, THEY ALL APPEAR TO BE GREAT, UH, DEVELOPMENTS AND WELL KEPT, UH, THOSE THAT I SEE, UH, DAILY, UM, UM, I'VE ALWAYS BEEN IMPRESSED WITH HIM.
SO I WANT TO, UH, UH, CONGRATULATE YOU ALL, ESPECIALLY, UH, REVEREND DR.
UH, HE MAY NOT REMEMBER, BUT MANY YEARS AGO, MANY, MANY YEARS AGO WHEN HE WAS JUST A LITTLE KID I USED TO RUN ACROSS HIM AT, AT, UH, PERKINS, THE LIBRARY I WOULD BE STUDYING.
HE SEEMED TO BE A STUDENT COME IN AT TIMES.
I DIDN'T KNOW WHETHER HE WAS STUDYING, BUT
[01:15:01]
UH, I'M GLAD TO SEE THE, UH, ALLIANCE AND THE RELATIONSHIP AND THE HELP ONCE AGAIN, THANK YOU ALL FOR LISTENING TO THE COMMUNITY AND ACTUALLY, UH, UH, PUTTING THIS IS SUMMER.CAN I, CAN I POKE IN WITH JUST A COUPLE OF THINGS? UM, THERE'S SOMEONE ELSE ON THE BOARD WHO WANTS TO SPEAK.
I DON'T WANNA, SINCE I'M NOT THERE, I, I DON'T WANNA INTERRUPT, BUT I DO HAVE A COUPLE OF ITEMS THAT I THINK WE NEED TO DISCUSS.
UH, DIRECTOR STINSON IS FINISHING HIS AS COMMENTS.
WELL, EVIDENTLY, SINCE YOU INTERRUPTED
UH, MS. GREATHOUSE, UM, I JUST WANNA POINT OUT, UM, I THINK IT'S IMPORTANT FOR THE BOARD TO TAKE THIS INTO CONSIDERATION WHEN YOU'RE, WHEN YOU'RE ANALYZING THIS PROJECT THAT, UM, SOME OF THE, THERE IS A DEVIATION ON THIS PROJECT FROM SOME OF YOUR STANDARD TERMS. SO THE, UM, THE SALES PROCEEDS SHARING OF 0.5% IS LOWER THAN WHAT YOUR TYPICAL TERMS ARE.
YOU TYPICALLY HAVE UPON THE FIRST SALE 15% OF NET PROCEEDS, AND THEN ON EVERY SUBSEQUENT SALE, 2% OF GROSS PROCEEDS.
SO I, I DO THINK THAT'S SOMETHING THAT YOU WANT TO TAKE INTO CONSIDERATION HERE BECAUSE, UM, YOU KNOW, ONCE YOU MODIFY YOUR TERMS FOR ONE DEAL, THEN YOU HAVE TO UNDERSTAND THAT YOU WILL BE ASKED TO DO IT AGAIN ON, ON SUBSEQUENT DEALS.
AND SO I JUST WANT THAT TO BE SOMETHING YOU TAKE INTO CONSIDERATION TODAY WHEN YOU'RE DELIBERATING THIS PROJECT.
IS THERE SOME OTHER BENEFIT THAT, THAT IS THE COMMUNITY OR THE PFC IS RECEIVING FROM THIS PROJECT, UM, THAT, THAT JUSTIFIES US ALTERING WHAT OUR TYPICAL TERMS ARE.
UM, SO I THINK THAT THAT'S IMPORTANT.
AND THEN I ALSO, I THINK, YOU KNOW, BRAXTON HAS DONE HIS PUBLIC BENEFITS ANALYSIS, WHICH I ALSO THINK IS SOMETHING IMPORTANT FOR US TO TAKE INTO ACCOUNT, UM, IN TERMS OF WHAT THE, THE RETURN TO THE COMMUNITY IS, ESPECIALLY GIVEN ALL OF THE CONVERSATION THAT THE LEGISLATURE RIGHT NOW AMONG, UH, FOR THE PFCS AND HFCS AND, AND WHAT VALUE IS BEING DELIVERED IN EXCHANGE FOR THE PROPERTY TAX EXEMPTION THAT'S BEING CONFERRED.
SO I WOULD LIKE TO DRAW YOUR ATTENTION TO THOSE TWO ITEMS WHEN YOU'RE DELIBERATING, UH, THIS PROJECT.
THANK YOU VERY MUCH, MR. MS. GREATHOUSE.
YES, DIRECTOR HANSEL, I HAVE QUESTIONS FOR SUMMER.
UM, WITH THE SORT OF PUTTING THE BOND ISSUE TO THE SIDE, UM, NEVER KNOWING IF IT MAY OR MAY NOT COME BACK, HOW, WHAT WOULD BE THE CHALLENGE TO US IF THE REQUEST FOR BOND, A BOND ISSUANCE DOES COME? HOW WOULD THAT AFFECT ANY OF THE DOCUMENTS THAT WE BE, UH, EXECUTING
UM, AGAIN, BECAUSE YOU GUYS WILL BE THE OWNER OF THE PROJECT ENTIRELY, THERE WILL NOT BE A GROUND LEASE.
UM, THE BOND DOCUMENTS WILL LOOK DIFFERENT OBVIOUSLY THAN, UM, THAN CONVENTIONAL FINANCING.
UM, IT IS THE, THERE ARE, UH, FEDERAL INCOME TAX, UH, CONSIDERATIONS THAT WE'LL HAVE TO WORK THROUGH IN TERMS OF HOW THE, THE PROJECT IS STRUCTURED.
WE DON'T HAVE THOSE SAME CONSIDERATIONS HERE BECAUSE WE'RE NOT UTILIZING TAX EXEMPT BONDS, SO THEREFORE WE'RE NOT SUBJECT TO THAT SECTION OF THE INTERNAL REVENUE CODE.
SO IT REALLY IS JUST A VERY, IT WILL LOOK VERY DIFFERENT AND IT WILL BE COMING BACK AND STARTING OVER FROM SCRATCH.
POTENTIALLY WE'LL HAVE THE SAME UNIT MIXES AND THE PROJECT MAY LOOK THE SAME, BUT IN TERMS OF THE FINANCIAL AND LEGAL STRUCTURE, IT IS A COMPLETELY DIFFERENT STRUCTURE.
WOULD YOU BASICALLY AGREE WITH THAT STATEMENT AS WELL? YES, SIR, I WOULD.
AND, AND I, I THINK IT'S IMPORTANT CONTEXT TO HAVE HERE AND THANK YOU SUMMER FOR, FOR THAT NOTE.
UH, THE REASON WE'RE BRINGING THIS REGULAR, YOU KNOW, STANDARD PARTNERSHIP MOU BEFORE YOU TODAY AND THEN WANTING TO POTENTIALLY COME BACK AND EVALUATE THE BOND AT A LATER DATE IS BECAUSE TO APPLY FOR ECONOMIC DEVELOPMENT INCENTIVES FROM THE CITY, WE HAVE TO HAVE AN APPROVED MOU FROM THE PFC.
SO THIS IS US TURNING OVER THE FIRST CARD SAYING, HEY, CAN WE MAKE THESE DEALS WORK? CAN WE GET IN FRONT OF ECONOMIC DEVELOPMENT? SO THIS IS ENABLING US TO TURN OVER THAT NEXT CARD AND THEN ONCE WE HAVE ANSWERS FROM ECONOMIC DEVELOPMENT, THEN WE CAN COME BACK WITH YOU GUYS AND COME UP WITH A COLLABORATIVE SOLUTION, WHETHER IT'S EVALUATE BOND, FINANCE STRUCTURE, HOW WE CAN REALLY CLOSE THAT GAP AND REALLY, YOU
[01:20:01]
KNOW, GET THIS THING ACROSS THE FINISH LINE.BUT THIS ENABLES US TO CONTINUE OUR PROCESS WITH US.
DIRECTOR TELLIS, I LOVE THE BUDGET.
WHAT CONCERNS ME? WHAT IF YOU DON'T HIT NINE 90%? WHAT IF YOU HIT 88%, 89%? UM, WE'RE OUT, WE DON'T MAKE ANY MONEY.
AND UM, WELL I'M NOT TRYING TO RETRADE THE DEAL.
I THINK AT SOME POINT IF YOU DON'T HIT 90%, THERE NEEDS TO BE SOME PRO RATA PAYMENT OF RENT.
YOU'LL SEE, BECAUSE LIVING IN YOUR THERE ECONOMIC UNCERTAINTY AND HOPEFULLY YOU GET A HUNDRED PERCENT, BUT NOBODY KNOWS.
SO WE CAN'T, I DON'T THINK IN GOOD CONSCIENCE WE CAN RIDE WITH YOU 7, 8, 9 YEARS, WHATEVER IT MAY BE.
I'M NOT RECEIVING
I THOUGHT IF I MIGHT SPEAK TO THAT, I THINK IT'S ALSO IN OUR BEST INTEREST TO BE SURE WE'RE HITTING 90% OCCUPANCY.
WE HAVE TO MEET CERTAIN LOAN AND EQUITY COVENANTS WITH OUR DOCUMENTS.