[00:00:01]
WHY IS IT NOT GOOD AFTERNOON? MS. KEITH MOFF,
[Public Facility Corporation Meeting on June 24, 2025.]
PRESIDENT OF THE DALLAS PUBLIC FACILITIES CORPORATION.I'D LIKE TO CALL THE JUNE 24TH, 2025 MEETING ORDER HERE AT DALLAS CITY HALL, PRECISELY AT 12 NOON.
ITEM NUMBER TWO, ROLL CALL, SAM.
SCOTT, STACY MARSHALL, STACY, RON STINSON.
ROSA, BRIAN BLANKENSHIP, PRIME, CHRISTIAN MARQUEZ.
OUR NEW BOARD MEMBER RICHARD TOLEDO.
LAUREL STONE OR STONE PRESENT? CAN YOU HEAR ME? YEAH.
THANK KEITH BAR CALL, SIT DOWN, PRESENT.
AND UH, JUST FOR THE RECORD AGAIN, SCOTT SEL JUST CAME IN.
MOVING ON TO ITEM NUMBER THREE, PUBLIC TESTIMONY.
WE HAVE ANYONE SIGNED UP TO SPEAK FOR PUBLIC COMMENTS ON ITEMS FOUR THROUGH 16? DO NOT.
AND ANOTHER CALL ANYONE ONLINE? I DON'T SEE ANYONE ONLINE.
WE'LL MOVE ON TO ITEM NUMBER FOUR, DISCUSSION AND APPROVAL OF THE MINUTES OF MAY 27TH, 2025.
DO WE HAVE ANY COMMENTS, CORRECTIONS FOR THE MINUTES? MOVE TO APPROVE.
WE HAVE A MOTION TO APPROVE BY DIRECTOR MONTGOMERY SECOND, SECONDED BY DIRECTOR TALLIS.
ALL IN FAVOR OF APPROVING THE MINUTES FROM MAY 27TH, SIGNIFY BY SAYING AYE.
ALL OPPOSED? SEEING NONE, THE MINUTES ARE APPROVED.
MOVING ON TO ITEM NUMBER FIVE, COMMUNITY ANNOUNCEMENTS.
UH, I JUST HAVE A COUPLE I WANTED TO MAKE.
UH, I, I MENTIONED I, UH, LET THE DIRECTOR REFLECT THAT, UM, DIRECTOR BLANKENSHIP YEP.
AND I, I THINK WE NEED ANOTHER CHAIR UP HERE.
I'LL WANTED TO LET EVERYONE KNOW THAT, UH, I DID SEE A GOOD LINKEDIN POST ON THE ASCENT AT MOUNTAIN CREEK, UH, GRAND OPENING.
UH, IT WAS A GREAT EVENT AND, UH, WE HAD A GOOD ATTENDANCE OF THE, UH, DPFC BOARD OF DIRECTORS THERE.
JUST WANTED TO BRING THAT TO Y'ALL'S ATTENTION.
AND I ALSO WANTED TO WELCOME, UH, UH, CHRISTIAN MARQUEZ, DISTRICT SIX REPRESENTATIVE.
I'M VERY PLEASED TO HAVE JUST, WE, WE ALL KNOW AND WE'RE ALL GOOD FRIENDS WITH, UM, THE LATE DISTRICT SIX, UH, REPRESENTATIVE.
YOU'RE ON, THE DIRECTOR, UH, UL REYES, WHO SERVE THE BOARD, DISTINGUISHLY, AND OF COURSE WE ALL, UH, UNDER, WE ALL VERY SAD OF HIS PASSING.
UM, WE ALSO WERE VERY PLEASED THAT, UH, COUNCIL MEMBER OF LAURA CENA'S ELECTION AND THAT SHE CAME RIGHT UP AND, UM, UH, APPOINTED, UH, MR. MARQUEZ AS A DIRECTOR FROM DISTRICT SIX.
AND, UH, IF YOU WOULD, YOU DIDN'T KNOW THIS WAS COMING, BUT IF YOU'D LIKE US TO TELL US A LITTLE BIT ABOUT YOURSELF AND, UM, WELCOME TO THE BOARD.
YEAH, WELL, THANK YOU GUYS FOR MY TARDINESS.
TRAFFIC GOT STUCK ON AWAY FROM WORK.
UM, AS YOU GUYS KNOW, MY NAME IS CHRISTIAN MARQUEZ.
I AM TAKING OVER TO SEAT OF THE LADY RAUL REYES, A GOOD FRIEND OF MINE, SO HONORED TO BE IN HIS SEAT.
AND, YOU KNOW, JUST TO THE, THE BOARD AND THE COMMUNITY, UH, YOU KNOW, UH, SERVICE.
SO, UH, BORN AND RAISED IN GROVE, UH, SOUTHEAST OF SOUTHEAST DALLAS.
UH, PROUD FINANCIAL LITERACY EXPERT.
UM, NOT JUST BECAUSE IT'S IN, BUT JUST 'CAUSE I LOVE NUMBERS.
NOT THAT I'M MATH, I MEAN, NOT GOOD IN READING, BUT I GOOD IN MATH.
SO JUST PART OF BEING HERE, HOPEFULLY I CAN LEARN PART FOR YOU GUYS AND BRING SOME OF MY 2 CENTS FOR THE COMMUNITY AND THE BOARD THAT WE SHARE TODAY.
ANY OTHER COMMUNITY ANNOUNCEMENTS? I HAVE ONE.
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YES, SIR.I ATTENDED THE, UH, GRAND OPENING OF THE BENCH BACK ON THE 20TH, AND THAT WAS, UH, REALLY NICE AFFAIR.
THAT'S, UH, COURSE, IF YOU ALL REMEMBER SW HANSEN AND THIS PARTICULAR GROUP, UH, THAT WAS AT 1710 MORE.
AND, UH, THERE WAS A LOT OF, UH, COMMUNITY AND INVOLVEMENT AND PRESENCE THERE.
I WAS, I WAS REALLY IMPRESSED WITH THAT.
UH, GOT A GREAT TOUR OF THE, UH, DEVELOPMENT.
I LOOKED AT, UH, PROBABLY ABOUT FOUR DIFFERENT APARTMENTS, FOUR DESIGNS THERE.
UM, I THINK HE MENTIONED THERE WERE A COUPLE OF FAMILIES THAT HAD ALREADY, UH, LEASED OUT A COUPLE DAYS BEFORE, BUT JUST THE, UH, COMMUNITY INVOLVEMENT WAS, UH, THERE WAS A LOT OF INTEREST.
THEY HAD A LOT OF, UM, VENDORS SET UP THERE IN THE PARKING LOT.
AND, UH, LOT OF NICE JAZZ MUSIC PLAYING TO CALM THAT WE WERE, SO, SO, UH, WE HAD GREAT CONVERSATION AND, UH, JUST THE TOOL THAT I GOT, I WAS, UH, PRETTY WELL PLEASED WITH WHAT I SAW THAT.
WELL, THANK YOU, UH, DIRECTOR STINSON, APPRECIATE YOUR ATTENDANCE.
ANY OTHER COMMUNITY ANNOUNCEMENTS? I HAVE ONE.
JUST WANTED TO LET THE BOARD KNOW THAT, UH, WE'LL BE MOVING OUR NEXT JULY BOARD MEETING TO THE FIFTH TUESDAY OF THE MONTH.
UH, THERE IS A CONFERENCE, AN AFFORDABLE HOUSING CONFERENCE THAT FALLS ON THE, UH, ORIGINALLY SCHEDULED DATE.
SO WE WILL BE MOVING THAT AND LET'S SEE, THAT DATE WILL BE THE 29TH, UM, TUESDAY, JULY 29TH AS OPPOSED TO WHENEVER, UH, THE CONVENTION IS, WHICH IS TUESDAY THE 22ND.
SO THE JULY MEETING, MAY TUESDAY THE 29TH.
SEND A REMINDER ON MY QUESTION, MR. CHAIR.
UH, TO SAM, THAT IS NOT LOCAL, THE PARTICULAR CONFERENCE? NO, IT'S NOT.
UH, IT'S THE TAP CONFERENCE AFTER KEITH WITHOUT A FEW BOARD MEMBERS WOULD NOT BE PRESENT.
PLUS STAFF WAS PLANNING ON ATTENDING.
SO WE'RE GONNA BE MOVING BACK, BUT YEAH, AUSTIN, TEXAS.
AFTER YOU GET THROUGH SHOUT COURSE WILL DO.
ANY OTHER COMMUNITY ANNOUNCEMENTS? SAYING NONE TO ITEM NUMBER SIX.
EPFC BOARD MEMBERS SHOULD DISCLOSE ANY RELATIONSHIP A MEMBER MAY HAVE WITH PROJECTS TO BE CONSIDERED ON THIS AGENDA OR WITH ANY DEVELOPER, PARTICIPANT OR FINANCIAL BENEFICIARY OF THE PROJECTS TO BE CONSIDERED ON THE AGENDA.
EVEN IF THAT RELATIONSHIP DOES NOT RELATE TO A SPECIFIC PROJECT, THE DPFC BOARD IS CONSIDERING.
ITEM NUMBER SEVEN, UPDATE AND DISCUSSION REGARDING THE PARK AT NORTH POINT PROJECT LOCATED AT 9 9 9 9 TECHNOLOGY BOULEVARD, SAM.
SO, UH, I RECEIVED COURT YESTERDAY FROM JAKE THAT THEY HAVE PAID THE TAXES THAT ARE DUE, WHICH IS THE LAST STEP ON GETTING THIS PROJECT OPEN AND LINE.
SO IN THEORY, ALL OF OUR DOCUMENTS ARE DONE.
UH, AND, AND WE CAN CLOSE THIS FROM OUR PERSPECTIVE AND
HOWEVER, THE EXPECTED CLOSE DATE WITH THE PFC, WHICH WE'RE HOPING THE CDG STUFF CAN LINE UP WITH IS THE 29TH OR THE 30TH OF JULY.
SO THE, THE FINAL WEEK OF JULY, UM, I, I DROVE THE PROPERTY OVER THE WEEKEND.
STILL, EVERYTHING'S GOING ACCORDING TO PLAN.
UM, BUT THEY'RE PLANNING ON CLOSING WITH US AND ON THEIR CONSTRUCTION LOAN AT THE SAME TIME SO THAT THEY CAN JUST GET, GO AND, AND PUT THIS THING IN A FORWARD, UH, MOVING DIRECTION HERE.
UM, SO THAT'S, THAT'S GOOD NEWS.
SO COULD YOU DO YOUR BEST TO, UH, I, I KNOW THERE'S A, THERE ARE A LOT OF, UH, MOVING PARTS ON IT, BUT COULD YOU DO YOUR BEST TO EXPLAIN THE, THE TEXT, UH, SITUATION, THE TAX TAXPAYER? YEAH.
SO THERE WAS, UM, A LATE, UH, LATE ASSESSMENT ON THE TAXES WHEN WE CLOSED IN 2023.
UH, THEY WERE ISSUED A CREDIT TO PAY THE TAXES AND THOSE NEVER GOT PAID.
UM, SO THE PRORATED PORTION AHEAD OF CLOSING? CORRECT.
AND WHEN DID IT CLOSE DURING THE YEAR, LIKE JULY,
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JULY, 2020.SO ROUGHLY THE TAXES WERE DUE ON THE FIRST HALF.
IT WAS A CREDIT ON THEIR CLOSING STATEMENT.
THEY RECOGNIZE IT AND IT NEVER GOT PAID? CORRECT.
AND THEN IT WAS, UH, STACK AS AND LATE FEE.
SO THEY WERE WORKING WITH DA TO GET THOSE REMOVED.
I BELIEVE THEY WERE ABLE TO WIGGLE SOME OF THOSE DOWN.
UH, BUT AGAINST ANY CERTAINTY.
YEAH, THAT WAS THE, UH, IT'S KIND OF THEIR PROBLEM.
AND, AND I SHOULD HAVE THE, UH, RECEIPT I BOX TODAY SENT THOSE TAXES BEING PAID, WHICH, UM, WHICH WE'RE PROBABLY GONNA NEED AT CLOSE PLACE.
AND, UM, A FOLLOW UP QUESTION JUST FOR THE, FOR THE BENEFIT OF THE NEW BOARD MEMBERS AND THE PUBLIC RECORD, UM, AT CLOSING, UM, THE DEVELOPER WILL REIMBURSE ON CLOSING STATEMENT ALL, UH, SECURITY EXPENSES INCURRED OVER THE LAST YEAR, CORRECT? THAT IS CORRECT.
ALL SECURITY BOARDING CLEANUP, MOWING, TRESPASSING SIGNS, ALL THE THINGS THAT WE'VE PICKED UP THAT WE THOUGHT WERE INFORMED WILL BE REIMBURSED AS CLOSE.
SO, UM, STAFF WILL SEND THAT, SOME OF THAT TO THE TITLE COMPANY? ABSOLUTELY.
WE ALREADY HAVE IT BEING TRACKED IN THE SPREADSHEET AND WE HAVE ALL OF OUR INVOICES LOGGED.
UM, SO THOSE WILL BE SENT IN, UH, BEFORE THE CLOSING TO, UH, LDG.
AND THEN THE SPREADSHEET OF, YOU KNOW, LAYING OUT WHAT WE OWE OR WHAT WE ARE OWED RATHER, UH, WILL BE, UH, SENT TO THE TITLE COMPANY.
PUT THAT FINAL TOP, QUOTE NUMBER EIGHT, THE DISBURSEMENT STATEMENT AT SOME POINT.
COULD THE BOARD RECEIVE A COPY OF THAT? ABSOLUTELY.
DO YOU WANT THAT AT OUR JULY 4TH MEETING? THE EXPENSES, THE SPREADSHEET, UH, WITH EXPENSES ENCOURAGED? YOU JUST WANT TO SEE THE SETTLEMENT STATEMENT AFTER WE'VE CLOSED, INCLUDED IN THE
I'D LIKE TO SEE, UM, THE DETAILS OF IT.
UM, THIS, THIS, UH, ONE ITEM, AS YOU KNOW, IN JULY OF LAST YEAR, HAD SO MUCH, UH, UM, PUBLIC ATTENTION ON IT THAT, UH, WE JUST NEED TO MAKE SURE THAT EVERYTHING IS FULLY DISCLOSED.
ANY OTHER COMMENTS ABOUT ITEM NUMBER SEVEN? YES, SIR.
THE ESTIMATE NUMBER? IT'S, IT'S ABOUT 200 TO IT ROUND.
IT'S, IT'S ALMOST THERE IF IT'S NOT THERE, UH, AS OF THIS WEEK, ABOUT 200,000 FOR SECURITY, FOR SECURITY BOARDING, UH, AND A FEW OTHER SMALLER THINGS, CLEAN UP, FOLLOW WE, THINGS OF THAT NATURE.
ANY OTHER QUESTIONS OR COMMENTS ABOUT ITEM NUMBER SEVEN? SEEING NONE.
MOVING ON TO ITEM NUMBER EIGHT, DISCUSSION AND APPROVAL OF RENEGOTIATED TERMS FOR OAK HOUSE SPACE.
LOCATED AT 9 0 9 EAST COLORADO BOULEVARD, DALLAS, TEXAS 7 5 2 0 3.
MR. MCDANIEL, I, UM, WE HAVE KATIE AND HER TEAM A BIT.
WE HERE, UH, SHE, SHE'S GONNA BE TAKING THE PHOTO A MINUTE TO, UH, SPEAK TO YOU GUYS.
THE
AND WE ALSO HAVE BRAXTON AND SUMMER KATIE.
UH, COLIN, UH, THE GREEN BUTTON.
KATIE SLATE, UH, WITH MIDWOOD REAL ESTATE.
UH, 53 28 ONEDA DRIVE IN DALLAS.
UH, THANK YOU AND, UH, FOR, FOR TAKING THE TIME TO TIER OUR, UH, PROPOSED ADJUSTMENTS TO THE TERM SHEET.
WE, UH, AS A, A PROJECT UPDATE, OAK HOUSE IS, UH, JUST ABOUT TO STABILIZE.
IT'S PROBABLY ABOUT 30 DAYS SHY OF THAT, AND IT'S DOING GREAT.
UH, WE HAVE GREAT TRACTION IN THAT NEIGHBORHOOD AND, AND REALLY APPRECIATE OUR COLLABORATION AND, AND PARTNERSHIP WITH YOU ALL.
UH, PHASE TWO IS NOW, UH, FULLY DESIGNED.
IT'S READY FOR US TO PICK UP PERMITS.
UH, AND WE CLOSE, WE'RE SCHEDULED TO CLOSE ON THE, UH, UH, LAND PRIOR TO AUGUST 29TH, UM, WITH NO ABILITY TO ADJUST OR EXTEND THAT WITH THE STATE OF THE WORLD.
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WITH A NUMBER OF YOU GUYS ABOUT, AT, AT DIFFERENT POINTS, THE QUESTIONS FOR THE CITY OF DALLAS AND THE CITY OF DALLAS'S, OPENNESS TO PFCS AND THE CHANGING SETS OF ITEMS THAT ARE HAPPENING THERE.UH, THE STATE OF TEXAS LEGISLATURE THAT HAS COME INTO PLACE AND WITH FEDERAL POLICIES THAT HAVE CREATED QUESTIONS ABOUT TARIFFS, IMMIGRATION, LABOR FORCE, ALL THE DIFFERENT THINGS.
THERE'S A LOT OF UNCERTAINTY IN THE, UH, MACRO FINANCIAL CLIMATE, UH, SPECIFICALLY RELATED TO DESIRE TO INVEST IN THE LIMITED PARTNER POSITION FOR THESE PROJECTS WITH, THAT'S THE HICCUP THAT SAM MENTIONED.
AND WE'VE BEEN WORKING DILIGENTLY TO FIND A PARTNER TO COME ON BOARD AND, AND TAKE THE LP POSITION.
THEY HAVE REQUESTED A FEW DIFFERENT ADJUSTMENTS IN ORDER TO MAKE THE PROJECT, UH, MORE FINANCEABLE.
WHAT THAT DOES IS IT CREATES DEEPER AFFORDABILITY.
UH, WE HAVE NOW 370 UNITS INSTEAD OF 358 THAT WERE INITIALLY PROPOSED.
WE'RE SUGGESTING ADDING AN ADDITIONAL 5% OF UNITS INSTEAD OF 10%, 60% FOR THAT.
UM, THE, THE NON 80% UNITS WE'RE SUGGESTING 10%, 60%, OR 5% AT 60%, AND 5% AT 50%.
SO THERE'S DEEPER AFFORDABILITY IN ORDER TO HELP WITH HOW THIS IS GETTING UNDERWRITTEN AND MEETING THE DIFFERENT OBJECTIVES THAT THESE FINANCIAL PARTNERS HAVE.
ONE OF THE THINGS THAT WE ARE PROPOSING, THIS REVISED TERM SHEET IS ADJUSTING THE RENT PAYMENT TO BE, UH, THREE YEARS OF, OF RENT PAYMENT.
UM, AND, SORRY, FIVE YEARS OF RENT PAYMENT IN AN UPFRONT PAYMENT.
SO THAT WOULD BE ABLE TO, YOU KNOW, COME TO THE PFC FASTER THAT WOULD MAKE THAT A CAPITALIZED EXPENSE ON OUR END, WHICH IS THE NUANCE THAT MAKES THIS EASIER FOR US TO STOMACH AND PANHANDLE.
AND THEN IT ADJUSTS THE RENT PAYMENTS.
AND HAS THE RENT PAYMENTS COME STARTING IN YEAR SIX.
UM, THAT'S THE EXTENT OF THE CHANGES THAT ARE PROPOSED WITH THAT, UM, WE ARE READY TO HIT THE GROUND RUNNING.
WE HAVE ALREADY STARTED, UH, TREATING PAPERS AND, AND FINALIZING THE DIFFERENT AGREEMENTS BETWEEN OUR LEGAL COUNSEL AND THE PFCS LEGAL COUNSEL.
UM, WE WILL NEED TO CLOSE AND WE'RE READY TO CLOSE AND MOVE FORWARD IN AUGUST.
AND SO, UH, THIS IS REALLY OUR LAST ASK.
WE'D BE COMING BACK AT THE END OF JULY FOR THE FINAL APPROVAL OF ALL OF THOSE DIFFERENT DOCUMENTS.
SO THIS IS, UH, AN APPROVAL TODAY THAT WE'RE ASKING OF THE TERM SHEET THAT IS, I BELIEVE IN FRONT OF YOU.
AND JUST MAKING SURE THAT THAT ALL WORKS SO THAT WE CAN GET MOVING FORWARD AND START DOCUMENTING EVERYTHING.
UH, BOARD IS NOW OPEN FOR QUESTIONS FROM THE BOARD DIRECTOR MONTGOMERY.
UM, SO FIRST OF ALL, THANK YOU KATIE.
UM, UH, AND JUST FOR CONTEXT, UM, ONE OF THE, THE PROBLEMS THAT, UH, KATIE AND HER FELLOW DEVELOPERS ON NEW CONSTRUCTION ARE HAVING RIGHT NOW IS, UM, IT'S BASICALLY THE SAME PER DOOR TO ACQUIRE, UH, AS IT IS TO BUILD GROUND UP.
AND SO ALL THAT EQUITY FLOWS, THE ACQUISITION 'CAUSE IT'S, IT'S CLEANER, EASIER.
AND, UH, SO THAT'S, UH, PROBABLY WHAT PROMPTED, UH, THE, THE NEED TO REWORK THIS.
SO, I, I DO HAVE ONE QUESTION.
UM, AND THAT IS MECHANICALLY, DOES THIS, THE WAY THE RESOLUTION IS WRITTEN AT THE COUNCIL LEVEL, DOES THIS GO BACK TO COUNCIL? BECAUSE I, I BELIEVE THAT THEY APPROVE THE ABATEMENT.
UM, BUT ANY CHANGES TO THE TERM, UM, UNLESS IT'S SIGNIFICANT, UH, WOULD GO BACK.
IS THAT ACCURATE OR NO? I'M JUST THINKING.
I, I ACTUALLY DON'T, I DON'T DRAFT THE RESOLUTION THAT THE, UM, THAT THE CITY PASSES.
SO I WOULD HAVE TO DEFER TO CITY ATTORNEY'S OFFICE TO THEIR, UM, FOLKS IF THAT'S SOMETHING THAT THEY BELIEVE.
UM, I MEAN, WE, WE FELT THAT THIS WAS SIGNIFICANT ENOUGH THAT IT NEEDED TO COME BACK TO YOU GUYS FOR US TO HAVE A DISCUSSION ABOUT THE CHANGE TERMS. SO, UM, THAT, THAT MAY IN FACT BE SOMETHING THAT NEEDS TO BE DISCUSSED WITH CITY COUNCIL AS WELL.
ANY INPUT FROM THE CITY ATTORNEY ON, SO YOU DON'T KNOW WHETHER IT NEEDS TO GO BACK OR IS THAT A YES? IT NEEDS TO GO BACK FOR NO, REPEAT THE QUESTION.
THE, THE QUESTION IS, DOES THIS REWORKS, UH, TERM SHEET NEED TO GO BACK TO CITY COUNCIL FOR CONSIDERING THEY'VE ALREADY APPROVED THE ABATEMENT? I'D HAVE TO LOOK INTO THAT.
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THAT TO YOU.AND FOR THE RECORD, I I, I HAVE NO PROBLEM WITH GOING BACK TO CITY COUNCIL, BUT, OR TRYING TO PLUG FINDING OF THE ESSENCE.
AND, UH, SO I WASN'T SENSITIVE TO THAT AND THE FACT THAT, UH, WE'VE GOT A JULY RECESS.
UM, SO, UH, THAT'S, I'M JUST TRYING TO THINK PRACTICALLY.
UH, AND THE LAST COMMENT THAT I WOULD HAVE IS, UM, THAT, YOU KNOW, RON MENTIONED, UM, DIRECTOR SIMPSON MENTIONED, UM, SWEET HANSEN'S PROJECT OVER ON MOREL.
UM, THIS PROJECT NOT VERY FAR, UM, ON COLORADO ARE TWO DALLAS BASED DEVELOPERS.
AND, UM, I THINK IT SHOWS, AND IT SHOWS IN THE, THE COMMUNITY INVOLVEMENT.
AND I THINK WE SHOULD BE, UM, VERY PROUD OF THE FACT THAT WE'VE CREATED A PROGRAM THAT ALLOWS, UH, LOCAL, UM, DEVELOPERS TO REALLY SHINE.
ANY OTHER COMMENTS OR QUESTIONS FROM THE BOARD ONLINE? UH, YES.
DIRECTOR TOLEDO SHOULD MAKE A QUICK COMMENT.
WE APPRECIATE THE PRESENTATION.
I KNOW SEVERAL PEOPLE WENT HERE OPEN NOW.
THEY'RE ALL, YOU KNOW, GOT BACK TO ME, YOU KNOW, COULD NOT, COULD NOT HAVE BEEN MORE IMPRESSED WITH THE PRESENTATION.
BILL HERE FOR EVERYTHING ABOUT IT, I JUST, IF YOU DON'T MIND A, ADD SOME COLOR TO, UM, UH, GETTING YOUR 5% WITH 10%, WHAT'S FILLING UP FAST? ARE YOU HAVING TROUBLE GETTING 60% OR IS IT, OR ARE YOU JUST PUBLIC LOAN WITH THAT RANGE? JUST, I'M JUST KIND OF CURIOUS ANECDOTALLY ON WHY YOU WERE ADDING THE 5%.
WHAT WAS YOUR EXPERIENCE ON GETTING TO GETTING THE DESTABILIZATION? OH, SURE.
DID YOU HAVE TROUBLE IN CERTAIN, CERTAIN AREAS OR NO TROUBLE? UM, WE HAD THE FASTEST TO LEASE UNITS ARE OUR STUDIOS AND ONE BEDROOMS THAT COST AROUND $1,400 A MONTH.
THAT IS NOT TYPICAL THROUGHOUT THE CITY OF DALLAS.
WHEN WE WERE AT GABLES, OUR AVERAGE RENT CHECK FOR A ONE BEDROOM IN UPTOWN WAS 1900, 2000 BUCKS A MONTH.
PEOPLE ARE VERY, VERY SENSITIVE TO WHAT THEIR MONTHLY RATE IS, AND WE'RE FINDING THAT THAT CONTINUES TO INCREASE AND THE NUMBER OF PEOPLE WHO NEED THAT IN ORDER TO BE PROFITABLE TO DOWNTOWN IS SO CRITICAL.
SO THE ADJUSTMENT WE'RE MAKING BETWEEN OC HOUSE AND LOMA, THE THE SECOND PHASE PROJECT IS THAT WE'RE ADDING MORE ONE BEDROOMS AND STUDIOS THAT ARE ABLE TO MEET THAT PRICE POINT FOR PEOPLE.
PEOPLE DON'T NECESSARILY WANNA HAVE ROOMMATES, THEY WANNA HAVE THEIR INDEPENDENCE.
AND SO IT'S, IT'S REALLY FASCINATING.
WE'RE LEARNING A WHOLE LOT AND WELL, YOU KNOW, AS WE GET APPLICATIONS, YOU KNOW, PEOPLE ARE GETTING VERY SAVVY IN THE SPREAD ON EFFICIENCIES IN SMALL ONE BEDROOMS. MM-HMM
IT'S NOT THAT BIG DIFFERENCE IN AROUND IT.
IT'S, BUT IT'S $200, IT'S NOT A $600 DIFFERENCE.
SO, UH, I, I GUESS MY POINT IS THAT PROGRAM'S DOING GREAT.
NO, NO COMPLAINTS, BUT IT'S REALLY NOT GEARED TO THE FAMILIES.
AND, YOU KNOW, WE CAN'T DO EVERYTHING BUT THINK THE BOARD, YOU KNOW, WE SHOULD BE CO CALL.
IT'S NOT REALLY GEAR TO YOUR FAMILIES, BUT YOU CAN CHANGE.
AND AT OAK HOUSE WE HAVE, UM, UNITS THAT ARE THREE BEDROOMS, AND WE ARE PROPOSING NOT TO INCLUDE THAT AT LOMA BECAUSE WHILE THOSE HAVE BEEN LEASED AND THEY'RE MATERIALLY DISCOUNTED TO MARKET FOR, AT, AT, AT THE, WITH A PROGRAM, THE DEMAND IS NOT THERE AS SIGNIFICANTLY AS IT'S FOR PEOPLE THAT WANT ONE BEDROOMS. WE'VE ACTUALLY REDUCED THE NUMBER OF STUDIOS THAT WE HAVE AS WELL.
SO WE HAVE A LOT OF ONE VETERANS PRIVATE AREAS WHERE YOU CAN CLOSE THE DOOR AND HAVE YOUR, YOU KNOW, YOUR MESS IN A SEPARATE AREA IS REALLY IMPORTANT TO PEOPLE.
ANY OTHER QUESTIONS OR COMMENTS? ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD? UH, YES.
UH, DIRECTOR WINTERS, UM, ONE COMMENT TO GO, UH, DIRECTOR, I HAVE TO SAY, LIKE, I I, I DON'T WANT US TO NECESSARILY THINK LIKE, OH, WE'RE NOT SERVING ONE PART OF THE COMMUNITY WITH SINGLE BEDROOMS OR FAMILY.
I MEAN, IN MY OPINION, THE, THE SINGLE FAMILY OR THE SINGLE BEDROOM TENANTS, LIKE THOSE ARE YOUNG FAMILIES TO BE.
AND THE, THE, EVEN THOUGH WE CAN GET, WE CAN GET THEM MORE, UM, HELP ON THEIR RENT NOW HELPS THEM TO ESTABLISH THEMSELVES TO BE BETTER FAMILIES WHEN THEY ARE OUT OF THIS PRO OR PHASE OF THEIR LIFE.
SO, I MEAN, I, I THINK WE NEED TO BE CONSIDERATE OF THE ENTIRE LIFECYCLE OF THE PEOPLE WE'RE TRYING TO HELP.
ANY OTHER QUESTIONS OR COMMENTS? THANK YOU VERY MUCH, MS. SLATE.
AND, UH, SEEING NONE, I WILL MOVE, UH, MR. MCDANIEL.
[00:25:01]
TERMS HAVE CHANGED, UH, FINANCIALLY, WHICH, UH, I, I FEEL LIKE MAYBE BRAXTON OR SUMMER, UH, SHOULD SPEAK TO, UM, A LITTLE BIT, BUT EITHER, EITHER WAY.UM, YOU KNOW, IF, IF THE BOARD IS, IS GOOD WITH THESE, THESE CHANGES, THAT THAT'S ALL RIGHT.
BUT, UH, WHAT WE WERE CONVERSING LAST WEEK, UH, THEY, THEY HAD MENTIONED THAT THEY WANTED TO, TO SAY SOMETHING ABOUT THEM.
YEAH, ACTUALLY THAT'S, THAT'S GOOD.
AND ACTUALLY I WAS OPEN OUT OF ORDER MYSELF.
I, I MAY NEED TO ASK, CALL FROM BEST FIRST, SO, UH, YES, LET'S HEAR FROM, UH, UH, SUMMER.
YEAH, I'M, I'M HAPPY TO, TO KIND OF KICK IT OFF.
AND THEN BRAXTON, IF BRAXTON WANTS TO ADD ANYTHING TO THIS, I DID, I JUST DO WANNA MAKE SURE THAT THE BOARD UNDERSTANDS THAT, UM, THAT THIS IS A CHANGE FROM YOUR TYPICAL TERMS WHERE YOU WOULD RECEIVE 25% OF THE PROPERTY TAX SAVINGS IS THE FORM OF ANNUAL RENT.
UM, NOW YOU'RE DOING THAT IN EXCHANGE FOR, UM, REDUCTION OF, UM, OR AN INCREASED AFFORDABILITY OF THE 5% UP 50%.
AND I JUST, BECAUSE ONCE WE MAKE, WHEN WE MAKE CONCESSIONS ON ONE PROJECT, THEN OTHER DEVELOPERS ASK FOR SIMILAR CONCESSIONS ON THEIR PROJECTS.
AND SO I JUST WANT THE BOARD TO MAKE SURE THAT YOU'RE OKAY WITH THAT AND THAT YOU UNDERSTAND THAT YOU MAY BE SETTING A PRECEDENT GOING FORWARD IN TERMS OF WHAT FOLKS ARE GONNA ASK FOR IN THE FUTURE.
BUT, UM, ON THIS DEAL, SO THAT THE WAY THAT THE MATH WORKS, AND AGAIN, BRAXTON CAN CORRECT ME IF I'M WRONG, IS THAT, THAT THE ADDITIONAL, UM, 5% OF THE UNITS AT 50% A MI COSTS THE PROJECT $55,000 A YEAR IN TERMS OF REDUCED RENTS.
SO IT'S GETTING $55,000 A YEAR LESS IN INCOME, UM, BY PROVIDING THOSE UNITS AT, UM, THE 50% A MI LEVEL, THE TERMS THAT YOU'RE AGREEING TO HERE IS APPROXIMATELY, INSTEAD OF 25% OF THE PROPERTY TAX SAVINGS AS YOUR ANNUAL RENT, IT'S ABOUT 15%.
UM, SO A REDUCTION OF 10% OF WHAT YOU WOULD NORMALLY RECEIVE AS YOUR PAYMENT, THAT IS ABOUT $180,000 A YEAR.
SO YOU, THE PROJECT THAT'S COSTING THE PROJECT $150,000 A YEAR, AND IN EXCHANGE YOU'RE TAKING $180,000 A YEAR CUT TO WHAT YOU WOULD TYPICALLY MAKE ON YOUR TERMS. SO I JUST, I WANTED THAT, I FELT LIKE THAT'S SOMETHING THAT THE BOARD NEEDS TO BE AWARE OF AND YOU NEED TO UNDERSTAND THAT YOU'RE ESSENTIALLY, UM, FOREGOING $125,000 A YEAR IN PERPETUITY IN EXCHANGE FOR THOSE UNITS IN ADDITION TO WHAT THAT THE PROJECT WOULD HAVE KIND OF FOR IT TO BE EQUAL.
SO THAT, THAT'S ALL THAT I WANTED TO SAY TO BRAXTON.
IF YOU HAVE ANYTHING ELSE TO ADD WITH RESPECT TO YOUR REPORT OR THE, THE PUBLIC THIS YEAH, THANK, THANK YOU SUMMER AND YOUR, YOUR MATH IS CORRECT.
WE, WE SPOKE ABOUT THIS LAST WEEK A LITTLE BIT, UH, WHILE, WHILE WE WERE KIND OF PREPPING FOR THE BOARD MEETING.
AND, UH, AND SUMMER STATED THAT, YOU KNOW, FOR THE INCLUSION OF THAT FIVE, THE 5% OF THE UNITS GOING IN AT 50, THAT THAT IS TAKEN FROM THE 60% UNITS PREVIOUSLY, THAT THAT DOES INCREASE THE RENTAL SUBSIDY BY ABOUT $55,000.
UH, AND, AND THEN THAT, THAT IS, YOU KNOW, IN MAKING THAT UP, THAT THE HSC WILL BE GIVING UP ABOUT $150,000 IN, IN ANNUAL LEASE PAYMENTS.
WHEN YOU LOOK AT THE, THE KIND OF RENTAL SUBSIDY CHARTS THAT ARE INCLUDED WITH THE UNDERWRITING REPORTS, I, I, I PROVIDED SEVERAL, UH, FOR THIS SPECIFIC PROPERTY JUST 'CAUSE THE, THE TOTAL AMOUNT OF RENTAL SAVINGS COMPARED TO PRE THE PREVIOUSLY IN AUGUST TO NOW HA HAS INCREASED DRAMATICALLY.
AND THE MAIN REASON OF THAT IS BECAUSE THE 80% UNIT RENTS WE WERE PROVIDED ARE WELL UNDER AN 80% A MI LEVEL.
SO THEY'RE, THEY'RE KIND OF OFFSETTING AN ADDITIONAL RENTAL SUBSIDY, UH, BY, BY SHOWING JUST THE, THE LOWER RENTS AT, AT AN 80, AT, AT THE 80% RESTRICTED RENT, UH, UNITS.
WHEN YOU DO THE MATH, THEY'RE, THEY'RE COMING IN CLOSER TO 65 TO 70% A MI LEVEL FROM WHAT WAS SHOWN.
UH, WE ALSO HAVE AN INCREASE IN THE MARKET RENTS FROM, FROM THE AUGUST KIND OF REPORT THAT WE, WE COMPLETED WITH THE, WITH THE NEW MARKET RENTS, WHICH THEY, THEY DID INCREASE FROM, YOU KNOW, THE, THE PREVIOUS KIND OF, UH, UNDER RUNNING REPORT THAT WE SUBMITTED FROM THE RENTS THAT WE WERE GIVEN FROM THE DEVELOPER.
LOOKING AT THE OAK HOUSE PHASE ONE, IT, IT DOES LOOK LIKE THESE RENTS ARE ACHIEVABLE.
I WOULD SAY THEY ARE A LITTLE HIGH.
UM, BUT, BUT THEY SEEM TO BE VERY ACHIEVABLE.
I THINK JUST THE, THE ONE THING THAT I WOULD LOOK AT AS A BOARD IS, IS JUST NOTE THAT THE, THOSE 80% RENTS THAT WERE GIVEN, I MEAN, MEAN THERE, THERE LIKELY WILL BE NOTHING THAT'S GOING TO RESTRICT THOSE ADDITIONALLY TO THAT 70 TO 65% LEVEL.
THEY, IN THE REGULATORY AGREEMENT AND MOST OF THE TRANSACTION DOCUMENTS IT, IT'S GONNA STATE THAT THOSE WILL BE RESTRICTED TO 80%.
SO THERE IS A CHANCE THEY COULD EVENTUALLY GO UP AND THAT WOULD REDUCE THIS RENTAL SUBSIDY THAT WE'RE SHOWING OF THE, I THINK $1.6 MILLION FOR, FOR KIND OF A BASE SUBSIDY.
[00:30:01]
SO JUST WANTED TO KIND OF LET, LET THE BOARD KNOW THAT THERE, THERE IS JUST A POSSIBLE KIND OF OVERESTIMATE OF THE RENTAL SUBSIDY JUST BASED ON THE ADDITIONAL AFFORDABILITY SHOWN IN THESE 80% UNITS.AND I THINK BRAXTON, YOU DID INCLUDE A CHART ALSO THAT INCLUDES THE, JUST WITH THE YES.
LEVELS, NOT WITH WHAT THE DEVELOPER WAS SHOWING.
AND IT'S A LITTLE CLOSER TO 1.1 MILLION, CORRECT.
IT'S CLOSER TO 1.1 MILLION, CORRECT.
VERSUS THE ONE POINT ALMOST SEVEN THAT THEY WERE SHOWING.
SO A 1.1 MILLION SUBSIDY, THAT'S STILL A GREAT SUBSIDY IN MY OPINION.
I MEAN, FOR, FOR TWO OR WHAT, THIS IS A 370 UNIT PROPERTY WITH, UM, WHAT, A HUNDRED AND EIGHTY EIGHT, A HUNDRED EIGHTY SEVEN AFFORDABLE UNITS.
SO THAT, THAT IS A GOOD SUBSIDY.
IT, IT IS JUST 1.6 IS, IS IS VERY HIGH.
AND, BUT THAT, THAT 1.1, AGAIN, THAT DOES MEET, UH, THAT IS WITH THE ACTUAL 80% A MI, UH, REQUIRED UNITS FROM, UH, LIKE THE HUD RENTS THAT YOU WOULD SEE.
I I WOULD SAY THIS, UH, DEVELOPER HAS A VERY STRONG HISTORY AND TRACK RECORD, UH, WITH THE PFC, AND THAT'S GREATLY APPRECIATED.
AND, UH, COUPLED WITH WHAT, UH, WE'VE BEEN LEARNING OVER THE, UH, LAST SEVERAL MONTHS, UH, ABOUT THE 2033, UH, YOU KNOW, HOUSING PLANS THAT THE COUNCIL PASSED, UH, I THINK THAT ADDING ADDITIONAL UNITS AT 50%, UH, IN THIS DAY AND AGE IS A GOOD THING, IS THEY'RE FOR OUR, WE DO, THEY'RE HARDER TO COME BY JUST BECAUSE THE WAY WE CRUNCH OUR NUMBERS.
AND SO HAVING, UH, THESE FEW MORE UNITS AT 50%, I THINK, UH, PERSONAL OPINION IS A, IS A GOOD GOAL.
UM, HEY, BRAXTON, I I JUST WANT TO, UM, I JUST WANNA MAKE SURE THAT I'VE GOT, I, I'VE GOT A HANDLE ON THIS.
SO WE'VE GOT RENT SAVINGS AT 1,145,640.
AND THEN IF I LOOK AT THE ESTIMATED TAXES, WHICH WE'LL TALK ABOUT DURING OUR PROGRAM STATEMENT AS A, A GUESS ANYWAY, AND IT'S PROBABLY HIGH.
UM, I SHOW IN THE YEAR FOUR, STABILIZE TOTAL TAXES ESTIMATED TO BE $1,950,500.
AND, UM, SO JUST SIMPLISTICALLY, IF, UH, IF WE TAKE THE RENT SAVINGS AT 1.1 MILLION AND DIVIDE THAT BY THE, THE, UH, 1.95 IN YEAR FOUR, THAT PUTS US AT A RENT SAVINGS PERCENTAGE OF 50, I GET 57.9%.
UM, DOES THAT SEEM ABOUT RIGHT? LET ME DO SOME MATH REAL QUICK.
THAT DOES SEEM ACCURATE JUST ON MY HEAD.
YEAH, AND I KNOW IT, I KNOW IT'S HARD BECAUSE 80% RENTS CAN BE REALLY CLOSE TO MARKET, UM, AND THAT TRANCHE OF, UH, 50%, UM, UNITS IS PROBABLY REALLY HELPFUL.
BUT, UH, YOU KNOW, AN ALMOST 60%, UM, RENT SAVINGS RIGHT OUTTA THE GATE IS, IS PRETTY, UH, UM, IN, IN YOUR PROFESSIONAL OPINION, BRAXTON, WOULD YOU, UM, WOULD YOU DESCRIBE THAT AS UM, UM, WELL WITHIN RANGE, THAT'S PROBABLY AS GOOD AS I CAN GO.
I WOULD SAY IT'S, THAT IS, UH, WELL WITHIN RANGE TO POSSIBLY, I WOULD SAY HIGHER THAN, THAN NORMAL.
FOR JUST A RENTAL SAVINGS TO A, A TAX ABBA A TAX ABATEMENT DIRECTLY.
I DIDN'T WANNA PUT THOSE WORDS IN YOUR MOUTH, BUT THAT'S KIND OF THAT, THAT WAS MY THOUGHT.
MY POINT IS, UM, WE'RE AFTER RENT SAVINGS, WE'RE TRYING TO HELP PEOPLE, UH, WITH THAT DIFFERENTIAL BETWEEN MARKET AND THE INCOME RESTRICTED.
AND THIS PROJECT DOES THAT AT A PRETTY HIGH LEVEL.
UM, EVEN WITH THE, THE REWORK TERMS AND EVERYTHING ELSE, UH, YOU KNOW, FROM MY VIEW, I WAS TRYING TO LOOK AT, OKAY, WHAT'S THE RENT SAVINGS? WHAT ARE WE TRYING TO ACCOMPLISH REGARDLESS OF CASH FLOW, CAN WE PROVIDE SOME MORE AFFORDABLE UNITS AND, UM, THE, THE SEEMS TO DO IT.
ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD? DO WE HAVE A MOTION? SECOND MOTION MADE TO APPROVE BY DIRECTOR TALLIS.
DO WE HAVE A SECOND? SECOND IT BY DIRECTOR BROWN.
WE'LL NOW MOVE FORWARD TO VOTE.
MR. MCDANIEL, ROLL CALL PLEASE.
[00:35:02]
AYE.YOU'RE MUTE HERE BY YOUR VOLUME OFF.
CAN YOU REPEAT THAT MARTIN FOR ME? APPROVE.
SORRY, I'M HAVING PROBLEMS WITH THE MICROPHONE.
I'M SORRY, CAN YOU TURN YOUR CAMERA ON TOO FOR THE RECORD? OH, SORRY.
LET THE RECORD REFLECT THAT, UH, WE HAVE A UNANIMOUS APPROVAL ON ITEM NUMBER EIGHT.
CAN SAM LET US KNOW IF THIS HAS TO GO BACK TO CITY COUNCIL? ABSOLUTELY, YEAH.
WE COULD SEND A NOTE TO THE CITY ATTORNEY'S OFFICE AND HAVE THAT CONFIRMED AND MAKE SURE WE COPY, UH, MS. SLATE ON THAT AND THE DEVELOPERS SO THEY CAN, CAN GET AN ANSWER ON THAT REALLY QUICK.
IT WOULD HELP SO EVERYONE CAN, UH, GET THEIR CALENDARS STRAIGHT.
OKAY, MOVING ON TO ITEM NUMBER NINE, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET FOR GOOD HOMES DALLAS, IN PARTNERSHIP WITH GOOD HOMES.
WE LOCATED AT 6 9 5 0 NORTH SIMMONS FREEWAY, DALLAS, TEXAS 7 5 2 4 7.
ALRIGHT, SO WE HAVE THE FOLKS FROM GOOD HOMES HERE, IF I TAKE FAN.
UH, AND THEY ARE HERE TO TELL YOU ABOUT THEIR PROJECT, UM, WHICH IS THE DOOR OPEN, COME TOP, UH, TO THE HOTEL CONVERSION PROJECT.
ALRIGHT, ABOUT THE INFRASTRUCTURE FOR KITCHENS AND THINGS LIKE THAT.
UH, SOPHIE AND I HAVE GONE TO THE PROPERTY.
IT LOOKS TO BE IN PRETTY ALL RIGHT SHAPE, UM, AND BE PROPOSAL.
THEY'RE, THEY'RE DEFINITELY HITTING SOME DEEPER AFFORDABILITY TARGETS FOR US.
UM, SO WANT ME TO THERE AND LET CLICK AND GET WILL.
HI EVERYONE, I'M LAYLA FELMAN.
I'M ONE OF THE, NOW THE MICROPHONE ON THIS ON.
UH, I KNOW DANIEL AN IS ON THE AGENDA, BUT DANIEL ACTUALLY JUST HAD A BABY VOICE, SO, UM, I FLEW DOWN HERE INSTEAD OF HIM.
UM, I WANNA, YOU KNOW, BE RESPECTFUL WHEN IT COMES TIME.
SO WE PREPARED A PRESENTATION IN ADVANCE AND I'M GONNA GO THROUGH AND I'LL TRY TO, UM, KEEP IT BRIEF AND HIGH LEVEL AND THEN WE, THEN WE ASK FOR QUESTIONS AT THE END.
DOES THAT WORKING? SO JUST TO GIVE YOU GUYS A, A BRIEF OVERVIEW OF WHO WE ARE AT GOOD HOMES.
SO WE STARTED THIS COMPANY, UM, A FEW YEARS AGO WITH THE PRIMARY MISSION OF ADDRESSING THE COUNTRY'S AFFORDABLE HOUSING AND HOUSING CRISIS.
UM, SPECIFICALLY FOR, YOU KNOW, THE SORT OF MISS MIDDLE MISSING, MISSING MIDDLE, UM, RENTER THAT WE THOUGHT WAS UNDERSERVED BY ALL OF THE, UH, GROUND UP DEVELOPMENTS THAT WERE GOING UP AROUND THE COUNTRY.
SO WE DECIDED TO, UH, KIND OF ADDRESS THIS ISSUE THROUGH ADAPTIVE REUSE.
SO WE ACQUIRED DISTRESS HOSPITALITY ASSISTED LIVING FACILITIES AROUND THE COUNTRY, AND WE CONVERT THEM INTO WORKFORCE AND AFFORDABLE HOUSING, UM, FOR, UH, AMERICANS THAT NEED IT MOST.
SO WE HAVE DONE, UH, 2,400 UNITS TO DATE, 13 PROPERTIES AROUND THE US.
THIS WILL BE OUR 14TH PROPERTY HERE IN DALLAS.
[00:40:01]
I WANTED TO FOCUS ON TODAY, UM, AND JUST KIND OF BRIEFLY TOUCH ON IS THE PROPERTY THAT WE, UH, COMPLETED IN SAN ANTONIO, TEXAS, WHERE WE PARTNERED WITH, UH, THE SAN ANTONIO HOUSING TRUST, PFC THERE, UM, TO ACHIEVE A HUNDRED PERCENT TAX ABATEMENT, UH, IN EXCHANGE FOR, UM, AFFORDABILITY.UH, WE, WE HAD 75% OF THE UNITS THERE THAT, UH, ARE RENT RESTRICTED BETWEEN 50% AND 80% OF A MI.
SO WE CLOSED ON THAT PROPERTY AT, AT THE END OF LAST YEAR, COMPLETED THE CONSTRUCTION ON THE FIRST UNIT AND DELIVERED 'EM, UH, WITHIN SIX MONTHS CLOSING, UM, WHICH IS PRETTY AMAZING TIMELINE FOR US AND HAVE ALREADY STARTED LEASE UP THERE AND HAS BEEN, UH, VERY SUCCESSFUL.
UM, AND HOPE TO DELIVER ALL 118 UNITS WITHIN THE NEXT MONTH, UH, TO THE SAN ANTONIO MARKET.
UM, A COUPLE OF SIMILARITIES, UM, WHICH WE CAN GO INTO ONCE I SPEAK ABOUT THIS PARTICULAR PROJECT.
UM, BUT NONE OF THIS, UH, IS POSSIBLE WITHOUT, YOU KNOW, THIS, THE PARTNERS, UM, YOU KNOW, THAT WE'VE BEEN ABLE TO WORK WITH.
SO, LIKE I SAID, THE SAN ANTONIO HAS ADDRESS WITH PFC.
UM, AND WE HAD A VERY SUCCESSFUL PARTNERSHIP WITH 'EM, UH, EXECUTING OUR BUSINESS PLAN, UH, AND ACHIEVING THE AFFORDABILITY RESTRICTIONS THAT WE WANTED TO IMPLEMENT ON THE PROJECT.
UM, WE ALSO PARTNERED WITH, UM, THE VA AND, UH, A COUPLE OF VETERANS, UH, ORGANIZATIONS THAT WERE LOCAL TO SAN ANTONIO TO SERVE THE VETERANS MARKET THERE.
UM, SO IT'S BEEN A VERY SUCCESSFUL, UH, ENDEAVOR SO FAR.
UH, WE ALSO PARTNERED WITH FRANKLIN, UH, COMPANIES, WHICH IS A PROPERTY MANAGEMENT COMPANY BASED IN TEXAS THAT IS SPECIALIZED IN AFFORDABLE HOUSING, UM, PROGRAMS FROM LITECH, HUD, UM, BASH VARIOUS TYPES OF VOUCHERS.
UM, AND THAT WILL BE THE PARTNER, UH, WITH US IN THIS PROPERTY, UH, HERE IN DALLAS.
SO JUST TO TALK ABOUT THIS PROJECT SPECIFICALLY, SO WE'RE SEEKING A PARTNERSHIP WITH THE DALLAS PFC, UM, TO DELIVER 142 WORKFORCE HOUSING UNITS, UH, IN JUST SIX MONTHS.
SO DID THE ADAPTIVE USE MODEL THAT WE'VE IMPLEMENTED ACROSS THE COUNTRY.
WE, WE HOPE TO DELIVER THESE, UM, EFFICIENTLY, QUICKLY, UM, AND WITHIN OUR BUDGET, UH, WE ARE LOCATED IN THE DALLAS MEDICAL DISTRICT.
THAT'S WHERE'S LOCATED FOR THOSE OF PEOPLE WHO HAVEN'T SEEN IT IN PERSON.
UM, WE'RE VERY EXCITED ABOUT THIS SPECIFIC ASSET 'CAUSE IT'S AN EXISTING EXTENDED STAY HOTEL AND IT BUILT APARTMENT STYLE.
UM, SO ALL OF THE UNITS FEATURE KITCHENS ALREADY.
THE ZONING IS AS OF RIGHT MULTIFAMILY.
UM, THE BUILDING IS VERY WELL MAINTAINED.
IT WAS RECENTLY RENOVATED, UH, IN 2015, AND IT LAYS OUT VERY NICELY FOR MULTIFAMILY.
SO THE, THE TIMELINE THAT WE'RE PROJECTING RIGHT NOW, UM, YOU KNOW, IS A CLOSING IN SEPTEMBER AND WE HOPE TO DELIVER THE FIRST UNIT OF SIX MONTHS, MONTHS, WHICH BRINGS US TO MARCH, 2026.
SO THE AFFORDABILITY, UM, MATRIX THAT WE'VE LAID OUT IN OUR PROPOSAL, UM, HAVE 35% OF THE UNITS AT 80% A MI, 45%, 60% A MI, AND 5% AT 30% A MI.
UM, WITH THE BALANCE 50%, UH, MARKET RATE.
AND THE UNIT MIX IS A COMBINATION OF ONE BEDROOMS AND TWO BEDROOMS, UM, WITH, UH, VERY NICE LAYOUTS APARTMENT STYLE HERE TO THE EXTERIOR OF THE BUILDING.
UM, LAYS OUT REALLY NICELY FOR MULTI-FAMILY.
IT LOOKS LIKE A GARDEN STYLE, UH, MULTI-FAMILY DEVELOPMENT.
IT'S CONSISTED OF 10 BUILDINGS.
UM, SOME OF THEM ARE INTERCONNECTED WITH STAIRCASES AND ELEVATORS IN EACH ONE.
UM, AND IT'S SURROUNDED BY, UH, SO YOU HAVE THE, THE BUILDINGS SORT OF SURROUNDING THE CENTRAL CLUBHOUSE AREA WITH, UM, A POOL, A SPORTS BOARD, CLUBHOUSE, UM, AN EXTENSIVE TENANT AND AMENITIES, TENANT AMENITIES, SPACES THAT WE PLAN TO FURNISH EVEN FURTHER.
THE INTERIORS OF THE UNITS, UM, LIKE I SAID, ARE APARTMENT STYLE.
SO THEY ALL HAVE, UH, FULL KITCHENS ALREADY IN PLACE THAT WE PLAN TO DO THE FULL GOOD HOMES, BRAND STANDARD RENOVATION, UH, WITHIN, UH, THERE'S SEPARATE BEDROOMS AND LIVING ROOM SPACES.
SO, UM, EVERYTHING LAYS OUT REALLY NICELY AS APARTMENTS ALREADY.
AND, UH, LIKE I SAID BEFORE, WE HAVE AN EXTENSIVE AMENITY PACKAGE THAT'S EXISTING ON SITE THAT WE PLAN TO RENOVATE, UM, AND JUST BRING UP TO OUR BRAND STANDARDS.
SO OUTDOOR POOL, WHICH IS OPEN 12 MONTHS A YEAR.
UM, A SPORTS BOARD FITNESS CENTER, AND A CLUBHOUSE THAT WE PLAN TO CONVERT INTO OUR LEASING OFFICE IN THE CLUBHOUSE.
SO THE ONES AND TWO BEDROOM FLOOR PLANS, UM, YOU CAN SEE HERE.
SO THE TWO BEDROOMS ARE TWO BED, TWO BATH, UM, WITH THE KITCHEN AND ISLAND.
AND THE ONE BEDS ARE ONE BEDROOM, ONE BATH WITH THE KITCHEN, OPEN HOME ISLAND AND LIVING ROOM.
UM, THIS IS SHOWING UP A LITTLE WEIRD ON THE SCREEN, BUT THIS IS JUST A BRAND STANDARD FOR GOOD HOMES.
SO ALL OF OUR COMMUNITIES, UM, EQUIPPED WITH, YOU KNOW, EXTENSIVE AMENDING PACKAGES, POOLS, FITNESS CENTERS, GYMS, PET PARKS, UM, THE WORKS AND THE RENOVATION PACKAGE THAT WE TYPICALLY DO.
[00:45:01]
FLOORING THAT WE PUT IN ALL OF OUR, OUR UNITS, UM, RENOVATE ALL THE INTERIORS, UM, ANYTHING NEW APPLIANCES, NEW KITCHEN CABINETS, UM, AND JUST TO GIVE YOU GUYS AN IDEA OF WHAT THAT LOOKS LIKE.SO FINAL PRODUCT, UM, AND OUR, AND OUR BRAND STANDARD, THIS IS JUST ONE EXAMPLE, UH, IN TON CONNECTICUT, TOOK HOME
IT'S AN 112 UNIT EXTENDED STAY HOTEL THAT WE ACQUIRED AND CONVERT INTO APARTMENTS.
UM, AND THESE ARE JUST THE STANDARD FLOORING AND CABINETRY, ANYTHING AND STYLE, UM, THAT THEIR HOME DOES ACROSS THE BOARD.
AND THIS IS ANOTHER PROPERTY IN FAYETTEVILLE, NORTH CAROLINA THAT WE CONVERTED IT,
UM, THIS ONE WAS A LITTLE BIT MORE INVOLVED.
WE ACTUALLY HAD TO ADD THE KITCHENS IN.
THEY WEREN'T INSISTING ALREADY.
UM, AND THAT'S BEEN VERY SUCCESSFUL PROJECT TO DATE AS WELL.
SO JUST ZOOMING OUT, UM, WE'RE VERY EXCITED ABOUT THIS ASSET.
I THINK IT'S VERY STRATEGICALLY LOCATED IN THE MEDICAL CENTER, SO PROXIMITY, CLOSE PROXIMITY TO, UM, HEALTHCARE WORKERS AND PROVIDERS.
UM, OBVIOUSLY VERY CLOSE TO, UH, THE DOWNTOWN AND ALL THE EMPLOYMENT AND DEMAND DRIVERS THERE.
SO WE THINK IT'S GONNA BE VERY WELL SUITED FOR THIS NEIGHBORHOOD.
AND ASIDE FROM THE PROJECT ITSELF AND THE LOCATION, YOU KNOW, WE'RE VERY EXCITED ABOUT THE COMMUNITY BENEFITS.
SO, YOU KNOW, WE'RE ADDRESSING THE, THE WORKFORCE HOUSING NEED WHERE WE'LL BE ABLE TO DELIVER, YOU KNOW, UNITS WITHIN SIX MONTHS, UH, WHICH IS VERY QUICK TIMELINE AND A FRACTION OF THAT, UM, THAT WOULD TAKE FOR GROUND UP DEVELOPMENT.
UM, THERE'S A 60 YEAR AFFORDABILITY COMPONENT, UM, $7 MILLION OF, OF INVESTMENT, UM, AND PROPERTY IMPROVEMENTS AND, AND JOBS THAT WILL BE CREATED, UM, THROUGHOUT THE PROCESS.
AND, UM, YOU KNOW, AT GOOD HOMES, YOU KNOW, WE BELIEVE THAT WE'RE GETTING THE APPROPRIATE SPONSOR TO DO THIS.
WE HAVE EXTENSIVE EXPERIENCE IN THE ADAPTIVE FOR USE SPACE.
UM, WE'VE HAD SUCCESSFUL PARTNERSHIPS WITH TFCS IN SAN ANTONIO, UM, AND WE'RE VERY EXCITED TO, YOU KNOW, BE IN THE DALLAS MARKET AND, YOU KNOW, MAKE A POSITIVE IMPACT ON THE COMMUNITY HERE.
WANTED TO OPEN UP THE QUESTIONS WITH
CAN YOU, YOU CONFIRM THE CITY COUNCIL DISTRICT? THIS IS THEN PROBABLY SIX, EIGHT.
UM, HAVE, HAVE Y'ALL SPOKEN TO, UH, UH, NO.
DISTRICT SIX, UH, COUNCIL, COUNCIL MEMBER NAVE BEFORE, OR, UH, KADINA NOW BELIEVE DANIEL HAS SPOKEN TO THEM? YES.
I WAS ATTACHED TO THE ORIGINAL THREAD WHERE HE WAS, UH, INTRODUCED.
I THINK MONICA COPIED ME, UH, TO IT AND I'LL HAVE THE CONVERSATION, UH, LEFT, BUT THEY DID REACH OUT TO LET HIM KNOW WAS IN THE DISTRICT AND I, COUNCIL MEMBER KADINA, LET ME, LET ME DOUBLE CHECK BECAUSE I, I'M SHE WAS JUST PLACED IN OFFICE.
NO, IT WAS, I I BELIEVE THIS IS JESSE MIRANDA'S DISTRICT.
I WOULDN'T MIND SAYING THAT ON, UH, REPORTS UP FRONT BECAUSE YEAH, OF COURSE IN THIS AREA THERE ARE DISTRICT LINES DO CROSS EACH OTHER AND SORT OF HARD TO TELL.
I ALSO BELIEVE, I THINK IT IS, I THINK IT IS DISTRICT BECAUSE THE WAY YEAH, I, I DOVE IN AND, AND, AND, AND FIGURED IT OUT, BUT I I SAW THAT THEY DEFINITELY DID THINK HERS IS NORTH REACH OUT.
DISTRICT SIX IS MORE NORTHWEST AND THEY TAKE YEAH.
YEAH, I MADE SURE TO DOUBLE CHECK, BUT SEE IF I CAN SEE WHEN THAT WAS.
BUT, BUT I KNOW BACK HE DID REACH OUT.
UM, I'M NOT SURE HOW THE CONVERSATIONS WENT THOUGH.
SO TO COUNCIL MEMBER MARINO TO C TO COUNCIL MEMBER MARINO.
AND, UM, THE SECONDLY, AS AS YOU MAY KNOW, WE WE HAVE NEVER APPROVED, UH, REHAB YET.
UM, SO THERE ARE, THERE ARE SOME THINGS LIKE, UH, A LITTLE BIT OUTTA MY WHEELHOUSE OR STRUCTURALLY HOW THAT BUILDING IS NOW AND WHAT IT WILL LOOK LIKE, UH, 60 YEARS FROM NOW.
I THINK WE HAD THIS DISCUSSION ON ONE OF, UH, DIRECTOR TOLEDO ON A, ON A PROJECT.
UH, SO HOW, HOW WILL WE FIND OUT OR WHERE WILL WE GET INFORMATION IN SO FAR AS THE STRUCTURAL STABILITY OF THIS BUILDING AND HOW, UH, HOW IT'S ABLE TO HOLD UP, WE'RE GONNA IN THE NEXT 60 YEARS AFTER WE HAD, YEAH, SO THAT'S PART OF OUR DILIGENCE PROCESS.
I MEAN, WE HAVE PROPERTY APPRAISALS, PROPERTY CONDITIONS, UH, REPORTS THAT ARE, UH, YOU KNOW, WE'VE REVIEWED PHASE ONES, UM,
UM, SO, YOU KNOW, WE HAVE EXCESSIVE BUDGET THAT ADDRESSES ANY DEFERRED MAINTENANCE ITEMS. UM, AND ALSO JUST PREVENTATIVE MAINTENANCE.
SO GOING IN AND IMPROVEMENTS UPFRONT.
[00:50:01]
THAT BILL THE SAME 20, 30, 40, 60 YEARS OUT.WHAT WAS IT ORIGINALLY BUILT? WAS WHAT WHAT BRAND BILL? IT'S AS SOA SUITES.
THEY COULD NOT HAVE BUILT IT 'CAUSE THEY, THEY WEREN'T IN EXISTENCE.
IT MAY HAVE BEEN A RESIDENCE IN GEN, I THINK GEN ONE ONE RESIDENCE IN BELIEVE JANUARY ONE.
SO I THINK THAT WAS JANUARY ONE.
YEAH, I'M, WELL, I'VE BEEN IN BUSINESS FOR 45 YEARS, SO ESTA IS A RELATIVELY NEW BRAND IN TERMS OF WHAT THEY'RE DOING.
AND IT WAS A, IF IT'S AN ERA RESIDENT INDEX, I THINK WE CAN LOOK TO DEFINITE AMOUNT OF INTEGRITY IN TERMS OF THOSE INSTRUCTIONS.
MCG, SO AS, UH, AS, UH, PRESIDENT PAUL CALL POINTED OUT, IT, UH, WE HAVE NOT DONE A, UH, AN ACQUISITION, UH, THROUGH THE, THE PFC AND UM, SO, AND, AND THEN LOOKING AT THOSE, THERE WAS ONLY ONE THAT WAS A HARDCORE ACQUISITION, THE OTHER ONE WAS KIND OF A HYBRID OF NEW DESTRUCTION OF ACQUISITION.
UM, WHAT, WHY DID YOU GO THE PFC ROUTE VERSUS, SAY, PARKING DOWN'S HOUSING AUTHORITY OR, UM, WHAT, WHAT BROUGHT YOU TO THE, THE PUBLIC FACILITY OR AS AN EXECUTION THAT YOU HAD BROADCAST? YEAH, SO WE, WE'VE HAD A GREAT EXPERIENCE WORKING WITH THE SAN ANTONIO HOUSING TRUST, PFC.
UM, AND AFTER THAT EXPERIENCE WE WERE SORT OF REFERRED, UM, WHEN WE WERE LOOKING IN DALLAS AND WE WERE LOOKING AT THIS PROJECT AND HOW TO MAKE IT WORK AND HOW TO FIT THAT INTO OUR AFFORDABILITY KIND OF MATRIX AND OBJECTIVES.
UM, THAT'S, YOU, YOU GUYS WERE THE FIRST THAT WE APPROACH.
UM, AND THEN AS FAR AS THE, THE INCOME MIX, UM, YOU HAVE, LET'S SEE HERE, 35 AT 80 45 AT 65 AT 30.
UM, AND I'LL, I'LL JUST ASK A, A STRAIGHTFORWARD QUESTION BECAUSE I, I THINK PART OF OUR ROLE IS TO FIND DEEPER ABILITY AND YOU'VE ALREADY KIND OF BROACHED THE 30% A MI LEVEL.
UM, WHAT WOULD IT TAKE TO GET THAT TO MORE LIKE SEVEN AND A HALF OR 10%? YOU, YOU CAN LOOK AT IT.
UM, PERSONALLY, I, I THINK, UM, SO FIRST AND FOREMOST, THIS IS DIFFICULT.
SO GOOD ON YOU FOR ACTUALLY A LOT OF PEOPLE TALK ABOUT IT.
I HEAR ALL KINDS OF PUBLIC ENTITIES TALK ABOUT IT.
UM, HEY, LET'S JUST REDO AN OFFICE BUILDING AND IT'S NOT THAT EASY.
UM, SO CONGRATULATIONS ON, ON YOUR PORTFOLIO.
UH, AND I THINK WHAT THIS DOES DO IS IT OPENS US UP FOR AN OPPORTUNITY TO HAVE SOME DEEPER AFFORDABILITY.
UM, AND SO PERSONALLY I, I'D LIKE TO, TO LOOK AT SOME DEEPER AFFORDABILITY ON IT WITH SOME ADDITIONAL 30% UNITS, UH, IN PARTICULAR.
AND EVEN, YOU KNOW, IF YOU HAVE TO KIND OF, UM, LAYER IT WHERE IT'S FIFTIES AND IN ADDITION, THAT KIND OF THING, I THINK THIS IS A REALLY GOOD OPPORTUNITY FOR US TO GET SOME, UH, UM, SOME DEEPER PORTABILITY BECAUSE, UH, BECAUSE OF THE THINGS THAT YOU HAVE TO DO THAT IN THE PFC, MOST ACQUISITIONS WOULD QUALIFY, UM, BUT YOURS DOES.
'CAUSE YOU KIND OF HAVE TO, UH, BEING THE, THE, UH, REHAB REQUIREMENT AND THE, THE DEEPER
SO THOSE ARE KIND OF MY THOUGHTS.
YEAH, I JUST WANNA KICK IT TO SUMMER REAL QUICK ON THIS, UH, BECAUSE IT'S AN ACQUISITION, BUT IT'S ALSO NOT AN ACQUISITION BECAUSE IT'S NOT AN EXISTING MULTI SUMMER.
CAN YOU SPEAK TO THAT A LITTLE BIT FURTHER? RIGHT.
SO THIS IS ACTUALLY NOT CONSIDERED AN ACQUISITION UNDER THE PFC STATUTE.
SO STATUTORILY THEY WOULD BE, UM, ONLY REQUIRED TO DO WHAT NEW CONSTRUCTION IS BECAUSE THE ACQUISITION, THE, THE ADDITIONAL AFFORDABILITY OR REHAB REQUIREMENTS UNDER THE STATUTE ARE FOR EXISTING OCCUPIED MULTIFAMILY PROJECTS, WHICH THIS IS NOT, THIS IS A CONVERSION.
SO IF YOU HAD A CONVERSION OF OFFICE, A CONVERSION OF A SHORT TERM, UM, HOSPITALITY, LIKE A HOTEL OR A, A MOTEL, THAT WOULD ACTUALLY NOT QUALIFY AS AN ACQUISITION UNDER THE STATUTE.
SO THEY'RE REALLY ONLY REQUIRED TO DO 10 AT 60 AND 40 AT 80.
AND I EVEN STILL, I, I THINK, UM, UH, PERSONALLY I FIND IT WORTHWHILE TO, UH, KIND OF DIG IN IF WE COULD TRADE OFF SOME LEASE PAYMENT FOR 30.
OUR LEASE PAYMENT IS PRETTY, PRETTY LOW.
IT'S VERY LOW ON THIS ONE BECAUSE OF, UH, 50, UM, YEAH, IT'S, IT'S, IT'S REALLY LOW.
IT'S, IT'S BASICALLY ALMOST NONE EXISTENT.
[00:55:01]
25,000 A YEAR, UM, WHICH IS ESSENTIALLY COVERING LIKE YOUR ADMIN.IT'S BASICALLY ENDS UP BEING AN ADMIN RENT, UM, ADMINISTRATIVE EXPENSES.
WHAT ARE THE TAXES TODAY? TAXES? ALMOST 200.
WHEN WE, YOU KNOW, TALK ABOUT THE DEALS WE'VE DONE IN THE PAST, THE CONVERSATION ABOUT THE TAXES WE'RE GIVING UP ARE ALWAYS THEORETICAL, BUT IN THIS CASE, IT'S AN ACTUAL THING THAT'S ACTUALLY ON THE TAX ROLL THAT WE HAVE TO CONSIDER.
YEAH, I MEAN THE DEEPER AFFORDABILITY IS NICE, BUT IT'S EXPENSIVE TO US.
AND I THINK THAT'S, JUST THINKING ABOUT WITH EVERYONE, ONE OF OUR SELLING POINTS HAS ALWAYS BEEN, WELL, HERE YOU HAVE A PROPERTY THAT'S ON TAXABLE, SO PAYING $10,000 A YEAR, YOU'RE GONNA GET A $250,000 UPFRONT PAYMENT, THEN SIGNIFICANT IS GOING FORWARD.
AND THE ARGUMENT ALWAYS IS, WELL, WE DON'T KNOW WHAT THAT PROPERTY'S GONNA BE 10 YEARS FROM NOW, 20 YEARS FROM NOW.
WE HAVE A SITUATION WHERE THERE'S SIGNIFICANT TAXES THAT WOULD BE, THAT THE CITY IS GONNA BE ASKED TO GIVE UP.
AND THAT SORT OF GOES IN FACE.
UM, A LOT OF THE OPPOSITION THAT IS ENTITY HAS FACED FROM A FEW OF THE COUNCIL FOLKS.
I'M NOT SAYING IT'S A BAD PROJECT AND PROBABLY WOULD TAKE AN EIGHTIES BILL HOTEL OVER TODAY, BILL HOTEL, BUT THE ISSUE IS THE ECONOMICS.
IT'S GOTTA MAKE, TO ME IT HAS TO, IT HAS TO MAKE ECONOMIC SENSE FOR THE CITY, NOT ONLY ON THE ISSUE OF AFFORDABILITY IN TERMS OF DOLLARS BEING, BEING TRADE.
UH, DIRECTOR STENSON, JUST QUICK, QUICK QUESTION MA'AM, THANK YOU FOR YOUR PRESENTATION.
UM, WHEN DID YOU SAY THE BUILDING WAS, UH, CONSTRUCTED? WAS THAT 88? 88? MM-HMM
UH, WHEN YOU GUYS DID YOUR REHAB, AS YOU DO YOUR REHAB WITH THESE UNITS, UH, ARE YOU ACTUALLY, ARE YOU TAKING IT AS IT IS AND JUST REHABBING THOSE OR DID YOU HAVE TO CREATE ANY, UH, NEW FLOOR PLANS, SO TO SPEAK? SO WE'RE KEEPING THE FLOOR PLANS AS THEY ARE.
SO, UH, IT'S ONE, ONE BEDROOMS AND TWO BEDROOMS. UM, THEY LAY OUT QUITE NICELY.
SO WE'RE, WE'RE KEEPING THOSE AND RENOVATING THE INTERIORS.
AND ALSO ANY MAINTENANCE MECHANICAL WORK THAT BE DONE TO, FOR BRING THE BUILDING UP.
UM, THAT'S, THAT'S ALL PART OF THE CONSTRUCTION SCOPE.
SO HAVE YOU FOUND THE MECHANICAL SYSTEMS TO BE, UH, SOUND, SO TO SPEAK? GREAT SHAPE, THANKFULLY, YES.
NO VISTAS, ANYTHING LIKE THAT? UM, MUCH BETTER THAN ANYTHING ELSE WE'VE SEEN IN OUR PORTFOLIO TO DATE.
ANY OTHER QUESTIONS OR COMMENTS? YES, DR.
HAN? UM, I'M NOT SURE WHAT, HOW LONG THE COMPANY'S BEEN DOING, WHAT IT'S BEEN DOING, BUT WHAT WOULD YOU CONSIDER YOUR SORT OF NORMAL EXIT STRATEGY TO BE FOR PROPERTIES? THIS, MOST OF WHAT WE HAVE IS SORT OF BASED ON 15 YEARS, AND I DIDN'T KNOW IF THAT WAS CONSIDER YOURSELF 15 YEAR OLDER PROPERTIES LIKE THIS OR LONGER OR SHORTER OR LONG TERM HOLDERS.
UM, SO I HAVE MY BROTHER HERE AS WELL.
WHAT, UH, THE PRINCIPALS AS WELL.
SO I'D LIKE TO KEEP THIS, YOU KNOW, KEEP IT IN THE FAMILY AS LONG AS POSSIBLE.
SO, SO WHEN I SAW THE MAP BEFORE OF ALL YOUR, YOU HAVEN'T BEEN, YOU HAVEN'T BEEN SELLING EITHER? WE HAVE NOT.
WE SOLD ONE PROPERTY IN EL PASO, TEXAS TO THE HOUSING THAT'S ALREADY THERE THAT PURCHASED IT.
BUT BESIDES THAT ON LIST, THANK I I IT'S LIKE, IS THERE, UM, DO YOU HAVE ROOM IN YOUR NUMBERS, UH, TO HELP US WITH THE RENT PAYMENT? I'M, I'M JUST, I DON'T KNOW.
I'M SORT OF THINKING THAT I HATE TO SAY IT, BUT SINCE I JUST GOT THIS PACKET, UH, NOT TOO LONG AGO, UH, I APPRECIATE THE PRESENTATION.
I ACTUALLY, I LIKE THE, THIS DOES LOOK LIKE A MULTI-FAMILY UNIT, UM, BUILDING MORE SO THAN, YOU KNOW, MOST HOTELS ARE SHORT TERM HOTELS.
I'M JUST NOT SURE IF I'M READY TO VOTE ON IT TODAY.
UM, DO YOU SEE A PATH IN YOUR CLOSING SCHEDULE IF Y'ALL WERE TO REWORK THE NUMBERS OR SOMETHING AND UH, I MIGHT HAVE THIS ADDRESS
[01:00:01]
THE SUMMER OR TO HILLTOP, UM, DO Y'ALL SEE A PATH FORWARD WITH SOME, UH, PERHAPS IN NEGOTIATING WITH SOME HIGHER RENT TERMS, SOME OR BRAXTON DO EITHER, BUT YOU GUYS HAVE THOUGHTS? BRAXTON, DO YOU WANNA TAKE THAT? YEAH, I'LL TAKE THAT.SO, BUT UH, UH, IN, I'LL SAY THE NUMBERS ARE RATHER TIGHT LOOKING AT THE PROFORMA, UM, AS, AS YOU KNOW, DIRECTOR TOLEDO STATED THAT THIS DOES HAVE A, YOU KNOW, A, A HIGHER TAX, YOU KNOW, I GUESS DEDICATION UPFRONT SINCE IT IS AN ESTABLISHED PROPERTY, BUT KINDA LOOKING AT THE TOTAL COST OF THE DEVELOPMENTS, IT, IT IS ON THE MUCH LOWER END OF THE OTHER HFC OR THE OTHER PFC PROJECTS THAT WE'VE, WE'VE, WE'VE GONE THROUGH THE, UM, SO JUST LOOKING AT DCA RIGHT NOW, THEY'RE VALUING THE PROPERTY AT 8.9 MILLION AND WE, WHEN WE'RE LOSING USING 80% OF THE TOTAL COST, WE'RE LOOKING AT JUST UNDER, UM, 14.8 MILLION.
SO THE, THE EVADED STABILIZED TAXES ARE COMING IN JUST AT 330,000.
I KNOW TYPICALLY WE WOULD LOOK AT 25% OF THAT IS THE STANDARD DPFC TERMS, WHICH WOULD BE AN $82,000 LEASE PAYMENTS.
UM, THERE'S, THERE MIGHT BE ROOM TO KIND OF NEGOTIATE THIS OUT.
UM, I MEAN, LOOKING AT A 25, THAT'S, I MEAN, WE'RE AT A KIND OF DEBT COVERAGE RATIO OF LIKE 1.16 KIND OF ONCE WE'RE STABILIZED, SO IT IS PRETTY CLOSE.
UM, BUT I MEAN THERE, THERE ARE OTHER WAYS TO KIND OF MOVE THINGS AROUND AND WE CAN DEFINITELY DISCUSS THAT WITH THE DEVELOPER.
IF, IF YOU GUYS WOULD LIKE TO KIND OF, YOU KNOW, TABLE THIS.
WE HAVE, WE HAVE LAUREL WITH HER HAND UP.
UH, YEAH, I JUST WANTED TO ASK A FEW QUESTIONS.
SO I, I ACTUALLY THINK THIS IS A GREAT, UM, A GREAT PROPERTY, UM, KIND OF AS OUR FIRST CONVERSION TO, UH, TO CONSIDER FOR, FOR PSC.
I THINK THAT THESE SMALLER PROPERTIES ARE, ARE SOMETHING WE SHOULD BE LOOKING FOR.
UM, BUT I GUESS MY QUESTION IS, UM, MORE RELATED TO, SINCE THIS WAS AN EXTENDED STAY AND THAT HAS A LOWER PARKING REQUIREMENT THAN IT WOULD AS MULTIFAMILY AND THEN FROM WHAT I CAN TELL, YOU'RE IN A PD, SO YOU'RE NOT BENEFITING FROM THE RECENT, UM, PARKING CHANGES THAT WERE PASSED BY ZAC.
ARE, ARE YOU ABLE TO PARK THIS OR ARE YOU GONNA BE GOING THROUGH, UM, A PARKING AMENDMENT OR A ZAC PROCESS? NO, THE, THE PARKING WE HAVE APPROVAL PASS BREAK WITH THE CURRENT PARKING.
AND THEN JUST SO I'M CLEAR, THE, THERE'S TWO ADDRESSES LISTED ON THE, ON THE, UH, THE BOARD PACKET, BUT THIS IS 69 50 STEMS, NOT 1150 STEMS. CORRECT? CORRECT.
UM, WELL THAT'S ALL I HAD FOR QUESTIONS, BUT I I, I APPRECIATE THIS PROJECT AND I APPRECIATE, UH, THE MIX THAT WE'RE, THAT WE'RE, UH, THAT YOU'RE PRESENTING AND, AND THE SMALLER UNIT SIZE I THINK PUTS THOSE RENTS RIGHT IN THAT SWEET SPOT OF WHAT OUR PRIOR PRESENTATION SAID IS IN SO MUCH DEMAND RIGHT NOW.
SO, UM, YEAH, THAT'S ALL I HAVE.
ANY OTHER QUESTIONS OR COMMENTS? UH, DIRECTOR TOLEDO COMMENT, THANK YOU SO MUCH FOR YOUR PRESENTATION AND SHORT NOTICE.
I UNDERSTAND, UH, I, I THINK IT'S A TERRIFIC PROJECT.
ME TAKING A DEBT ALMOST DEAD ASSET AND, AND BRINGING IT TO LIFE AND, AND INJECTING, YOU KNOW, MUCH EASIER
SALVATION ARMY'S COMING, THE CITY OF DALLAS BOUGHT BUILDING, THEY COULDN'T MOVE INTO JUST, JUST DISASTERS UP AND DOWN THAT CORRIDOR.
SO IT'D BE GOOD TO SEE SOMETHING, YOU KNOW, ACTIVATED, COME TO A CONSENSUS ON THAT.
BUT MY QUESTIONS AND, AND BECAUSE OF DIRECTIVE'S BACKGROUND, I KIND OF DEFERRED TO HIM ON, ON A LOT OF THINGS, BUT ESPECIALLY ANYTHING YOU DEAL IN THE HOTELS
UM, BUT I WAS JUST CURIOUS, SO THERE'S 10 BUILDINGS, ARE THERE 10 HVAC SYSTEMS CHILLERS OR IS IT MORE MODERN THAN THAT? THAT CONCERNS ME A LITTLE BIT.
I'M SURE YOU'RE LOOKED AT THAT OBVIOUSLY.
YEAH, I BELIEVE THE, THERE'S A CENTRAL CHILLER SYSTEM BUT THERE'S, UM, THERE'S WATER HEATERS FOR EACH UNIT.
SO THERE'S S OUTSIDE OF EACH OF THE UNITS.
THAT'S HOW THE HOTEL WAS BUILT.
UM, SO YOU HAVE THE ELECTRIC AND WATER HEATER, AND YOU HAVE ELEVATORS.
IS IT, IS IT, DOES IT GO OVER THREE STORIES? IT'S THREE STORIES AND THERE'S FOUR ELEVATORS THAT CONNECT.
SO EACH OF THE BUILDINGS, THERE'S TWO BUILDINGS THAT ARE CONNECTED.
SO ONE ELEVATOR FOR THOSE TWO BUILDINGS, AND THEN THE, THE CLUBHOUSE.
BECAUSE IF SOMEBODY WERE BUILDING THIS TODAY, WOULD THEY ADD ELEVATORS GROUND UP IF BUILDING IS AN APARTMENT COMPLEX? I DON'T THINK SO.
WELL, NOT A HOTEL, BUT THEY WOULD OH, I KNOW.
SO, YEAH, I MEAN, THE, THE WAY THAT IT LAYS
[01:05:01]
OUT, SO WITH EACH ELEVATOR, IT'S THE CENTER OF TWO BUILDINGS.SO YOU BASICALLY GET OFF THE ELEVATOR AND YOU'RE EITHER IN BUILDING 10 OR NINE.
SO IT'S VERY SHORT WALK TO ANY UNIT.
THEY'RE, THEY'RE GREAT WHEN THEY WORK.
THAT'S ONLY, THAT'S, THAT'S MY COMMENT.
YOU KNOW, IF YOU WANNA SEAL 'EM SHUT AND NOT USE 'EM, I, I GET THAT TOO.
BUT YOU, YOU'VE DONE 14 MORE THAN I HAVE.
SO I'M GONNA DEFER TO YOUR EXPERTISE, BUT WE APPRECIATE YOUR BRINGING US TO, BRINGING US TO THIS BOARD.
DR. WINTERS, ONE OF THE THINGS OUR CRITICS HAVE SAID AT TIMES IS LIKE, WE'RE GIVING UP THE TAX BASE, WE'RE NOT GETTING DEEP ENOUGH AFFORDABILITY.
AND I THINK, UM, JUST AS A WAY TO KIND OF RESPOND TO THAT, THROUGH THIS PROJECT ITSELF, IT'S LIKE, OKAY, LOOK, WE'RE GIVING YOU THE DEEP AFFORDABILITY YOU'RE ASKING FOR, AND THEY ARE GOING TO BLOCK ANY PRICE.
BUT LIKE, THIS IS WHAT YOU'VE ASKED FOR AND WE'RE TRYING, AND IF WE DO MOVE FORWARD WITH IT, WE'RE TRYING TO DELIVER AT IT.
LIKE THE PRICE TAG IS WHAT IT COSTS.
LIKE, I'M SORRY, BUT YOU ASKED FOR THIS AND WE'RE TRYING TO DO IT.
SO, I MEAN, IF YOU WANT TO, YOU KNOW, WORRY ABOUT THE COST, THEN GREAT.
BUT THEN DON'T CRITICIZE THIS FOR THE AFFORDABILITY.
WE DO GET WITH CHEAPER EGGS FOR THE BSC.
UM, YOU KNOW, AND IF WE ONLY DID THIS TYPE OF DEAL, UH, YOU KNOW, I THINK THAT WOULD OBVIOUSLY BE A GOING CONCERN ISSUE FOR THE PFC ITSELF.
BUT IF YOU DON'T LOOK AT THIS ONE DEAL IN A VACUUM AND PAY IT IN, CONSISTS WITH ALL THE DEALS WE'VE DONE TO DATE.
LIKE IT, YES, IT DOES COST US MORE TO GET THIS EXTRA PORTABILITY HERE, BUT WE'VE MADE SO MUCH PROGRESS AND OTHER AVENUES AND OTHER PROJECTS THAT I THINK IT ALLOWS US THE ABILITY TO DO THAT IN
ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD? YES, SIR.
COUNCIL, THERE'S PROVISIONS IN THE TERM SHEET THAT SAY SHOULD BE DISCUSSED WITH THE FC.
I DON'T KNOW IF THAT WAS ON OUR SIDE OR SUMMER OR YOU GUYS, TO ME IT SUGGESTS THAT MAYBE A LITTLE BIT MORE TIMES NECESSARY TO MAYBE IRON THESE OUT.
I DON'T KNOW WHY LINE WOULD GO ONE WAY OR ANOTHER ON THESE ISSUES.
I BELIEVE THAT WHAT WAS INCLUDED IN THE PACKET WAS NOT THE FINAL VERSION.
SO THOSE, THOSE NOTES HAVE BEEN REMOVED.
THOSE DISCUSSIONS HAVE HAPPENED WITH STAFF.
IS THAT WHAT YOU CIRCULATED? LIKE WE'RE SAYING? YEAH.
I, SO ANY OTHER QUESTIONS OR COMMENTS? WE HAVE A MOTION, MR. CHAIR.
CAN WE EITHER, I DON'T KNOW WHAT YOU GUYS' TIMELINE IS, BUT IS THERE ROOM FOR CONSIDERING THIS BEING LONGER ON OUR END, WE'RE RUNNING UP AGAINST SOME TIME S WITH THE CURRENT OWNER OF THE, OF THE HOTEL THAT THEY WOULD LIKE US TO CLOSE, UM, IN SEPTEMBER, UM, BEING THEY'D LIKE TO CLOSE SOONER, SO PEOPLE ARE PUSHING UP SET OF TIMELINES.
WHATCHA LOOKING? SO WE'RE CLOSING IS TIME OF ESSENCE.
UH, IN SEPTEMBER, MID-SEPTEMBER.
DO DO WE HAVE A MOTION? BOTH CYNTHIA'S ACTUALLY RAISING HER HAND RIGHT NOW, UH, ON ONLINE.
CYNTHIA, ARE YOU MEANING TO RAISE YOUR HAND? YES.
CAN YOU, CAN YOU HEAR ME? YES.
UM, I JUST WANTED TO LET EVERYONE KNOW THAT THE TIMELINES FOR THESE APPROVALS THROUGH COUNCIL IS UNKNOWN AT THIS TIME.
ONLY BECAUSE THERE IS NO COMMITTEE ASSIGNED TO ANYONE YET.
THE MAYOR HASN'T, HASN'T ASSIGNED COMMITTEES.
AND WE DON'T KNOW WHEN COMMITTEES WILL BE ASSIGNED FOR THE PROJECTS TO GO THROUGH.
SO THE, THERE'S GONNA BE DELAYS.
WELL, DO WE HAVE, DO WE HAVE A MOTION ON THE TABLE? SO I'LL MAKE A MOTION TO APPROVE.
MOTION'S BEEN MADE TO APPROVE BY, UH, OKAY.
MY DIRECTOR, STONE, SECOND VICE DIRECTOR WINNERS.
HOW UP PLEASE? ALRIGHT, SCOTT.
[01:10:01]
NO.JASON BROWN AND MONTGOMERY? YES.
ALAN APPROVED KEVIN WINTERS APPROVE.
LAUREL STONE, APPROVE KEITH UPON MCCALL.
UH, ITEM NUMBER NINE HAS BEEN APPROVED.
THANK YOU SO MUCH FOR, UH, BRINGING THIS, UH, TO OUR ATTENTION AND MAY, UH, LOOK FORWARD TO THE NEXT STEPS IN THE PROCESS.
UH, MOVING ON TO ITEM NUMBER 10, BRIEFING AND DISCUSSION ABOUT DPFC GOVERNANCE COMMITTEE DRAFT OF A POLICY STATEMENT REGARDING ADMINISTRATION, PROJECT REQUIREMENTS, GOVERNANCE AND OPERATIONS AS PROPOSED IN THE PROPOSED DALLAS HOUSING FINANCE CORPORATION AND DALLAS PUBLIC FACILITY CORPORATION PROGRAM.
STATEMENTS MEMORANDUM AT THE APRIL 22ND HOUSING AND HOMELESSNESS SOLUTIONS COMMITTEE.
UH, DIRECTOR, UM, MONTGOMERY AS CHAIR OF THE GOVERNANCE COMMITTEE.
THANK YOU, PRESIDENT PAUL MCCALL.
UM, SO, UH, BY WAVE BACKGROUND, UM, THERE AS, UH, AS MANY OF YOU KNOW, THERE HAS BEEN A, UM, DISCUSSION AROUND BOTH THE HOUSING ADVANCE CORP AND THE PUBLIC CIVIL COURT.
AND, UM, OUR POLICIES AND PROCEDURES IS PROBABLY THE, THE BEST WAY TO DESCRIBE IT.
UM, THAT HAS TAKEN ON VARIOUS FORMS, BUT IT KIND OF GETS CONSOLIDATED IN THE PROGRAM STATEMENT.
AND, UM, HOUSING HAD PROVIDED A DRAFT PROGRAM STATEMENT THAT COMBINED THE HFC AND THE PFC.
UM, AND SO THAT'S THE, THE START, KIND OF THE TEMPLATE, UM, FOR WHAT YOU SEE IN FRONT OF YOU, WHICH IS THE, THE PFC PROGRAM STATEMENT.
UM, THERE ARE A FEW REASONS THAT, UM, IT MAKES SENSE TO HAVE A SEPARATE, UH, PFC PROGRAM STATEMENT AND A SEPARATE HFC PROGRAM STATEMENT.
WE'LL TALK ABOUT THIS AS WE GO ALONG.
UM, AND, UH, SO THAT'S THE, UH, THAT'S KIND OF WHERE WE STARTED.
AND THEN THE, THE NEXT PIECE OF IT, JUST KIND OF THINKING, UM, SORT OF THE MECHANICS AND, UH, THE, THE TIMELINE OF THIS, OF THIS PROCESS.
SO WE, UM, DRAFTED A PROGRAM STATEMENT, THAT'S THE, THE ONE THAT YOU HAVE IN YOUR PACKET.
UH, AND THE GOVERNANCE COMMITTEE THEN MET LAST WEEK TO GO THROUGH IT, UM, AND MAKE SOME, SOME RECOMMENDATIONS AND SOME EDITS.
AND I SHOULD SAY THAT'S ACTUALLY THE, UM, THE VERSION THAT YOU HAVE IN FRONT OF YOU AFTER THOSE, UH, THOSE CHANGES AND THOSE EDIT WERE MADE, UM, THEN WE, UM, PUT TOGETHER, AND SAM WAS, UH, UH, WE MET FRIDAY AND SAM WAS ABLE TO GET IT THE, UH, IN THE BOARD PACKET.
UM, SO WHAT I'D LIKE TO DO AT THIS POINT IS JUST KIND OF GO THROUGH THE PROGRAM STATEMENT, UM, AND SOME OF THE BIG PICTURE ITEMS THAT WE'VE CALLED OUT AND, UH, AND KIND OF TALK THROUGH THOSE.
WHAT WE'LL DO FROM THIS POINT IS, UH, THERE'S NO ACTION ITEM TODAY.
UH, THIS IS PURELY A DISCUSSION ITEM FOR US.
UH, SO, YOU KNOW, CHIME IN WITH SOME, UH, SOME FEEDBACK, UH, AND THEN AT SOME POINT, UH, WE'LL BRING IT BACK TO THE BOARD.
SO YOU'LL, YOUR FEEDBACK AND EVERYTHING WILL HAPPEN TODAY.
UH, WE'LL TAKE THAT BACK TO THE GOVERNANCE COMMITTEE.
WE'LL HACK OUT FOR A LITTLE BIT.
WE'LL COME UP WITH SOMETHING THAT, UM, THAT TRIES TO ADDRESS ALL OF THOSE ISSUES.
UM, I, I SUSPECT THAT, UH, IT'LL PROBABLY BE AUGUST, UM, UNTIL WE ACTUALLY APPROVE SOMETHING.
UM, SO HAVE AN ACTION ITEM, UH, TO APPROVE IT.
WE WANNA BE SURE AND GET PLENTY OF FEEDBACK FROM, UM, HOUSING STAFF.
WE GOT FEEDBACK FROM COUNCIL MEMBERS, OF COURSE.
UM, AND I THINK THAT THAT'LL GIVE US PLENTY OF TIME TO DO IT.
WE HAD TALKED ABOUT IT AT ONE POINT IN JULY, BUT, UM, WE DON'T WANNA RUSH IT.
SO LET'S, UH, UH, UH, THAT, THAT'S KIND OF THE, THE TIMELINE.
SO WITH THAT IN MIND, I'LL JUST KIND OF START GOING THROUGH THE, THE PROGRAM STATEMENT HERE FOR ABOUT FOUR OR FIVE MINUTES LONG.
AND, UH, TALK TO YOU ABOUT SOME OF THE, THE ITEMS THAT ARE IN THERE AND HOW IT, IT MIGHT BE DIFFERENT THAN WHAT WE'VE SEEN BEFORE.
ALRIGHT, SO THE, THE FIRST AND THE, THE TIMING ON THIS IS IMPECCABLE.
UM, CONSIDERING THAT WE JUST APPROVED OUR FIRST ACQUISITION, UH, WHAT I THINK OF AS AN ACQUISITION,
[01:15:01]
UM, PROJECT.EVERYTHING ELSE HAS BEEN NEW CONSTRUCTION.
UM, AND SO THAT, THAT SECOND PARAGRAPH THAT YOU SEE THERE, THE FIRST PARAGRAPH IS, IS JUST THE BASIC, UM, BOIL THE PLATE, UH, DPFC UH, UH, ITEM.
THE SECOND PARAGRAPH IS REALLY MEANT TO CALL OUT RECONSTRUCTION.
I THINK ONE OF THE THINGS THAT, UH, THE, WE SEE QUITE A BIT IS, AND DIRECTOR WINTER, YOU WERE TALKING ABOUT THIS EARLIER, TAKING STUFF OFF THE TAX ROLLS.
WELL, MOST DAYS WE'RE REALLY NOT TAKING ANYTHING OFF THE TAX ROLLS WHEN YOU'RE TALKING ABOUT NEW CONSTRUCTION.
UM, AS AN EXAMPLE, THE BLOCKHOUSE PROJECT, UM, I'VE CHATTED WITH THOSE GUYS, UH, A A FEW TIMES SINCE THEN, JUST KIND OF CHECK IN ON THEIR PROGRESS.
AND, UM, WE WERE TALKING ABOUT THEIR, UH, ACQUISITION OF THOSE PARCELS.
THEY ACQUIRED NINE SEPARATE VACANT PARCELS, UM, OVER THE COURSE OF ABOUT 18 MONTHS.
AND, UH, THOSE ARE PARCELS THAT WOULD'VE JUST SAT THERE.
UH, THEY WOULDN'T HAVE DONE ANYTHING AND THEY WOULD'VE BEEN A NUISANCE, UH, PARTICULARLY WHERE THEY'RE, THEY'RE LOCATED, UM, BUT THEY'RE ACTIVATING IT.
AND, UH, YOU KNOW, BY PUTTING ALL THOSE TOGETHER, IT, IT NOT ONLY DOESN'T COST US FROM A TAX AT WARM TAX PERSPECTIVE, AND IT'S ACTIVELY HELPING US BY ACTIVATING PROPERTY THAT OTHERWISE WOULDN'T.
UH, SO THAT'S REALLY WHAT THIS SECOND PARAGRAPH IS ABOUT.
UM, IT'S, IT'S REALLY MEANT, UM, FOR US TO ARTICULATE, HEY, WE'RE, WE'RE HERE FOR NEW CONSTRUCTION.
WE DON'T WANNA COMPLETELY CUT IT OUT.
UM, AND THE GOVERNANCE COMMITTEE WAS CLEAR THAT WE DON'T WANNA COMPLETELY CUT OUT THE OPTION FOR ACQUISITION 'CAUSE WE SEE DEALS LIKE WE JUST APPROVED.
UM, EVEN THOUGH THAT'S ONLY A THIRD ONE WE'VE SEEN, IT ALSO HAD SOME DEEPER AFFORDABILITY.
AND SOMETIMES YOU CAN DO THAT.
UM, SO WE DON'T WANT TO COMPLETELY CUT THAT OFF, BUT, YOU KNOW, WHEN YOU CONSIDER WE, UH, APPROVED 26, 27, SOMETHING LIKE THAT, AND ONE OF THOSE HAS BEEN AN ACQUISITION, IT PROBABLY MAKES SENSE MOLINA TO NEW CONSTRUCTION, UM, BECAUSE NEW CONSTRUCTION HAS THE LEAST IMPACT ON ABOR TAXES BECAUSE IT WOULD'VE GOTTEN BUILT ONE.
SO THAT'S, UH, THAT'S SECTION ONE, SECTION TWO, SOME PROGRAM GOALS.
THESE ARE PRETTY CONSISTENT WITH WHAT, UM, WHAT HOUSING HAD, UH, HAD SUGGESTED.
UH, OBVIOUSLY WE WANNA ALIGN WITH THE, UM, THE CURRENT HOUSING PROGRAM.
UM, AND THAT'LL, I'M SURE EVOLVE.
UM, I DID ADD THE, UH, CREATE NEW HOUSING UNITS, AND WE TALKED ABOUT THAT, UM, IN THE, THE GOVERNANCE COMMITTEE, UM, AND, UH, HAVE SOME CONSENSUS ON THAT PIECE.
SIMILAR, WE TALKED ABOUT, UM, DEEPER INCOME, NO SOURCE OF INCOME DISCRIMINATION.
IN OTHER WORDS, YOU HAVE TO TAKE VOUCHERS, UM, ENGAGE AFFIRMATIVE MARKETING.
I THINK ALL THINGS WE COULD, UH, WE COULD ALL AGREE ON.
UM, AND THEN THE, THE NEXT PIECE IS HOW DO WE DO THAT? UM, HOW DO WE ACCOMPLISH THOSE GOALS? WE PRIORITIZE 30 AND 50.
THAT DOESN'T MEAN WE DON'T DO PROJECTS THAT AREN'T 30, 50%, BUT IF ONE, LIKE, UH, WHAT JUST CAME UP? UM, WE PRIORITIZE THOSE 30% UNITS.
UM, AND THEN SOME, SOME OTHER ITEMS. I THINK, UH, HUGE ELIGIBILITY IS PRETTY STRAIGHTFORWARD APPLICATION PROCESS.
UM, THE PUBLIC BENEFIT AND AFFORDABILITY SCORING.
WE REALLY JUST WANTED TO PUT SOME MORE STRUCTURE AROUND IT.
UM, AND SO THAT'S, UH, THAT'S THE IDEA THERE.
UM, AGAIN, UM, NEW CONSTRUCTION, UM, PARTNERSHIPS ARE, ARE HIGHLIGHTED, UM, AND HOW WE DO THE, THE CALCULATIONS ON THE, THOSE TAXES, UH, I'M, I HAVE LITTLE DOUBT, BUT THIS IS EXACTLY WHAT, UM, HILLTOP AND BRAXTON ARE DOING.
BUT IT, IT HELPS TO DEFINE IT.
SO HERE'S HOW WE'RE GONNA GET TO THE NUMBER.
UM, AND THEN SOME, UH, JUST SOME METRICS AROUND, UM, RENT SAVINGS.
IN OTHER WORDS, THE DIFFERENCE BETWEEN MARKET AND INCOME RESTRICT GRANTS, UM, THE PUBLIC BENEFIT OVERALL WITH AND WITHOUT A DISPOSITION.
'CAUSE WHO KNOWS WHAT'S GONNA HAPPEN 17 YEARS FROM NOW.
UM, SO I HAVE A LITTLE MORE, UH, UH, A LITTLE MORE CERTAINTY AROUND THAT.
AND THEN I'M GONNA MOVE ON TO, UM, SIX, SEVEN, AND EIGHT, OR SIX AND SEVEN, UH, PRETTY STRAIGHTFORWARD.
AND THEN, UH, EIGHT, THIS WAS ONE OF THE THINGS THAT, UM, THAT CITY STAFF REALLY WANTED TO, UH, TO KIND OF DIG INTO IS THE SEPARATION AND RESPONSIBILITIES, UM, STAFF WISE.
UM, BUT BEFORE WE GET THERE, ONE OF THE THINGS, UM, THAT YOU'LL NOTICE UNDER POLICIES AND PROCEDURES, UM, ITEM THAT, THAT SECOND PARAGRAPH AROUND, UM, CITY STAFF HAVING, UH, PARTICIPATION IN BOARD CONVERSATIONS, UM, THAT'S REALLY WHAT THAT'S ABOUT.
AND SO WHAT WE'RE TRYING TO DO IS FIND A, A GOOD SOLUTION.
UM, IT'S NOT APPROPRIATE TO HAVE CITY STAFF, OBVIOUSLY, AS A FULL BOARD VOTING
[01:20:01]
BOARD MEMBER.UM, THAT WOULD, UM, CREATE A, A LOT OF PROBLEMS WITH, UM, THE WAY SECTION 3 0 3 IS WRITTEN AND THE SEPARATION OF, OF THE CITY FROM THE CORPORATION.
UM, BUT THERE'S ALSO A NEED FOR, YOU KNOW, CYNTHIA WAS ABLE TO, TO CHIME IN HERE ON ONE OF OUR DISCUSSIONS.
THERE'S A NEED TO HAVE, UM, SOME HOUSING STAFF AS A RESOURCE AND THE ABILITY FOR THEM TO, UH, TO CONTRIBUTE, UM, TO SOME OF THESE CONVERSATIONS BECAUSE THERE, THERE ARE OCCASIONS WHERE THEY HAVE SOME EXPERTISE THAT HELPFUL.
UM, AND SO WE'RE TRYING TO THREAD THAT NEEDLE, BUT HOW DO YOU DO IT WHERE THEY'RE NOT A FULL BOARD MEMBER, BUT YOU KNOW, THEY, THEY CAN ALWAYS BE RECOGNIZED BY THE, THE PRESIDENT OF THE BOARD.
UM, AND I, I THINK THERE'S PROBABLY SOME, SOME DISCUSSION TO BE HAD IN THERE.
UM, SO I WANTED YOU TO, TO BE AWARE OF THAT.
'CAUSE THAT IS AN, AN ONGOING, UM, CONVERSATION.
AND THEN ON STAFFING, UM, WE'RE GONNA GO INTO EXECUTIVE SESSION AND HAVE A, A LONG CONVERSATION ABOUT STAFFING.
SO I'LL KIND OF, UH, UM, UH, SKIP PAST THAT.
UM, COMMUNITY INPUT, YOU KNOW, THAT COOPERATION AND COORDINATION OF, UH, WITH CITY OF DALLAS HOUSING POLICY.
UM, THERE, THERE WAS A, UM, ONE THING THAT WE DID CHANGE IS BULLET 0.2 ON TIP DISTRICTS.
UM, SO ONE OF THE, THE RECOMMENDATIONS WAS TO GET APPROVAL FROM THE TIP BOARD.
WELL, WE, WE JUST SAW, UM, IF YOU HAVE A, A PROPERTY UNDER CONTRACT AND EVEN, UM, IF YOU'RE TALKING ABOUT VACANT LAND, UM, THAT THOSE AMOUNTS OF APPROVALS JUST MAKE IT PRACTICAL.
UM, SO WHAT WE DID IS CHANGE THAT TO WHERE THE TIF WILL BE NOTICED IN THE SAME WAY THAT THE OTHER TAXING JURISDICTIONS ARE IN SECTION 3 0 3, YOU HAVE TO GIVE THE ISV, THE COUNTY, THE CITY, YOU HAVE TO NOTICE EVERY, ALL THE TAXING JURISDICTIONS 30 DAYS BEFORE YOU TAKE ACTION ON AN ITEM.
UM, THIS WOULD BE THE SAME THING.
SO TO BOARD TO GET THOSE JUST LIKE EVERYBODY ELSE.
UM, THE, THE NEXT ONE THAT YOU'LL RECALL, THAT LDG AND THE 9 9 9 9 TECHNOLOGY DEAL HAS A-C-D-B-G, UM, COMPONENT TO IT THAT'S ADMINISTERED COMPLETELY BY THE CITY.
WE DON'T HAVE ANY INPUT OR PURVIEW ON, UM, THOSE TYPES OF FUNDS.
SO THAT'S DESIGNED TO MAKE THAT REALLY CLEAR.
AND THEN SOME REPORTS REPORTING, THAT'S NOTHING, NOTHING BIG THERE.
UH, MADE SOME CHANGES TO LINE IT UP WITH, UH, UM, WITH REAL LIFE.
UM, AND VERSUS JUST SOME RANDOM BASE AND THEN, UH, ON REVENUE.
OKAY, SO I, I KNOW WE'VE HAD THIS CONVERSATION, SO I WANNA MAKE SURE THAT I, I SPEND A JUST A MINUTE HERE.
UM, ON REVENUE, WE STILL HAVE A, A WAYS TO GO, NUMBER ONE, AND HAVING SIGNIFICANT, HAVING SUFFICIENT REVENUE.
I MEAN, WE'RE SITTING AT WHAT, 4 MILLION, GIVE OR TAKE.
UM, AND, AND WE'VE GOTTA DO STAFFING.
THAT'S OUR NUMBER ONE PRIORITY.
UM, THE, SO ALL OF THE, THE ITEMS ON HERE ARE REAL BROAD.
THEY'RE NOT DESIGNED TO TIES DOWN IN ANY WAY.
UM, THEY'RE, THEY'RE CONSISTENT WITH WHAT, UM, HOUSING HAD SUGGESTED FOR THOSE REVENUES.
UM, WE'LL NARROW IT DOWN, BUT FOR THE PROGRAM STATEMENT, IT'S JUST MEANT TO GIVE US A, A QUITE A BIT OF FLEXIBILITY.
UM, SO THAT'S THE, UH, I WENT A LITTLE LONGER THAN FOUR OR FIVE MINUTES.
THAT'S A, UM, THAT'S THE PROGRAM STATEMENT THAT THE GOVERNANCE COMMITTEE, UM, ADOPTED OR REVIEW BY THIS, UM, BY THIS BOARD.
UM, I'M HAPPY TO, AND I'M SURE THE GOVERNANCE COMMITTEE MEMBERS ARE HAPPY TO ANSWER ANY QUESTIONS.
UM, JUST FOR CLARIFICATION, DIRECTOR HOUSEHOLD'S ON THAT COMMITTEE, DIRECTOR SIMPSON AND PRESIDENT PALM HALL, FOUR OF US, UH, AND WE'LL, UH, WE'LL BACK UP TO FIVE, I'M SURE BY THE NEXT TIME WE BE.
UM, AND WE HAVE DISCUSSION ON THANK YOU VERY MUCH.
AND, UH, THIS HAS, HAS BEEN AN ONGOING, UH, LIVING DOCUMENT FOR SEVERAL MONTHS NOW, AND WE APPRECIATE, UH, ALL THE CONTRIBUTIONS FROM, UH, THE BOARD AND FROM CITY STAFF, UH, FROM THE DISCUSSION FROM THE COMMUNITY, FROM THE DEVELOPMENT COMMUNITY, AND FROM STAKEHOLDERS IN THE COMMUNITY.
YOU KNOW, AL AND OTHER TRACK AND OTHER REALLY PROMINENT STAKEHOLDERS IN THE CITY OF DALLAS HAVE ALL, UH, AT OUR RETREAT AND SUCH.
WE'VE BEEN, UH, YOU KNOW, THIS IS, I WOULD SAY, UH, A VERY COLLABORATIVE EFFORT, UH, COMMUNICATED AND COLLABORATED AND CONNECTED WITH MANY PEOPLE IN ALL PARTS OF, UH, DALLAS AND
[01:25:01]
OUR STAKEHOLDERS.UH, BUT, UH, IT STILL CAN DO SOME TWEAKING, YOU KNOW, AND SO, UH, THAT'S WHAT WE'RE HERE TO DO.
AND, UH, COMMENTS ARE CERTAINLY WELCOME.
AND AS, AS, UM, CHAIR OF THE GOVERNMENT COMMITTEE SAID, UH, HOPEFULLY BY BEFORE THE END OF THE SUMMER, WE'LL HAVE SOMETHING LIKE THIS, UH, PASSED.
SO WE CAN BRING IT TO THE, UM, CITY COUNCIL.
UH, I'D LIKE TO OPEN, I DON'T MEAN TALK TOO LONG EITHER, BUT, UH, WE HAVE ANY OTHER, UH, IF YOU HAVE SOME INITIAL COMMENTS, AND, AND PLEASE, UH, FEEL FREE TO, UH, SAY WHAT YOU WILL.
DIRECTOR TOLEDO, I APPRECIATE Y'ALL DOING ALL THE HEAVY LIFTING ON US.
REALLY DO SO, OR THE, THE WISER HEADS IN THIS ROOM ON THIS.
I'M, I'M CERTAINLY TO SUPPORT IT.
I, I THINK WITH ANYTHING, IT'S ALL ABOUT, YOU KNOW, STREAMLINING OR YOU KNOW, THAT NOT JUST FOR, YOU KNOW, US, BUT YOU KNOW, THE FUTURE.
IT'S A GOOD, A GOOD
DIRECTOR PAL, DIRECTOR STONE DIRECTOR HOLMES.
I THINK PETE SIGNAL YOU OUT, BUT THAT YOU'RE ONLINE.
UH, NO, I, UH, ECHO THE COMMENTS FROM THE, UH, OTHER DIRECTORS.
UM, GREG START, UH, JUST LOOKING THROUGH THE BIG BULLET POINTS.
I MEAN, I THINK WE'RE KIND OF ADDRESSING, UH, OUR ROLE AND, UH, IN, IN THIS HOUSING, UH, HOUSING PROGRAM.
AND, UH, I THINK WE, UH, DO A GREAT JOB IN TERMS OF SETTING OUT KIND OF WHAT OUR NORTH STAR IS AND WHAT OUR MISSION STATEMENT IS, AND HOW WE, UH, HOW WE SEEK TO CONTRIBUTE, UH, UH, TO THE, TO THE HOUSING, UH, TO THE HOUSING QUESTION IN THE CITY.
UM, AND IT LOOKS JUST SCROLLING UP AND DOWN THROUGH EVERYTHING.
I DON'T SEE ANY GLARING HOLES.
UM, AND, UH, SUBJECT TO, YOU KNOW, UH, FURTHER INPUT FROM THE REST OF THE BOARD.
UH, LIKE I SAID, I THINK WE'RE, I, I WOULD SAY WE'RE VERY, VERY CLOSE ON THIS, IF NOT, IF, IF NOT, COOKED ALL, ALL THE WAY.
LIKE I SAID, VERY IMPRESSED AND VERY THANKFUL TO, UH, THE COMMITTEE THAT, UH, AS DIRECTOR TOLEDO INDICATED, DID A VERY HEAVY LIFT ON THIS.
SO, VERY APPRECIATIVE AS WELL.
ANY OTHER QUESTIONS OR COMMENTS FOR THIS MONTH? AND NOW KEEP, KEEP IN MIND THIS WILL COME BACK FOR DISCUSSION AGAIN.
SO, UH, YOU DON'T HAVE ANY COMMENTS TODAY, UH, IF YOU THINK OF SOME, BUT BEFORE WILL BE OPEN TO YOU, UH, NEXT MONTH AND IN ALL THE TIMES IN BETWEEN.
AND THAT I'LL, I'LL KIND OF END WITH THAT, WHICH IS, UM, YOU KNOW, FEEL FREE TO HACK AT IT, SHOOT, UM, ANY OR ALL OF US AN EMAIL, UM, YOU KNOW, PICK UP PHONE, UH, AND WE'LL CONTINUE THE, THE CONVERSATION SO THAT IT, UM, THE DISCUSSION DOESN'T STOP, UM, IMMEDIATELY.
WE CAN, WE'LL CONTINUE TO REFINE IT, SEEING NO OTHER QUESTIONS OR COMMENTS.
WE, I'LL CLOSE THE DISCUSSIONS ON ITEM NUMBER 10 THAT WE'LL MOVE ON TO ITEM NUMBER 11, EXEC EXEC EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE 5 5 1 0 7 4 PERSONNEL MATTERS TO DELIBERATE THE EMPLOYMENT AND DUTIES OF CANDIDATES SELECTED, SELECTED BY THE DPFC STAFF HIRING COMMITTEE AND A COST SHARING PROPOSAL WITH THE DALLAS HOUSING FINANCE CORPORATION FOR CONSIDERATION BY THE BOARD.
AND I'LL READ A FOLLOWING STATEMENT.
UH, IT IS BEFORE WE CLOSE OUT THE PUBLIC MEETING, IT IS, UH, 1:29 PM ON JUNE 24TH, 2025.
THE DALLAS FACILITIES CORPORATION WILL NOW GO INTO A CLOSED SESSION UNDER SECTION 5 5 1 0.074 OF THE TEXAS OPEN MEETINGS ACT ON THE FOLLOWING MATTER DESCRIBED ON TODAY'S AGENDA, DELIBERATE THE EMPLOYMENT AND DUTIES OF CANDIDATES SELECTED BY THE DPFC STAFF HIRING COMMITTEE, AND A POSTURING PROPOSAL WITH THE DALLAS HOUSING FINANCE CORPORATION FOR CONSIDERATION BY THE BOARD.
UH, UH, DIRECTOR, UH, HOLMES AND DIRECTOR STONE.
THERE'S A SECOND LINK THAT WAS SENT TO YOU.
DO Y'ALL HAVE THAT SECOND LINK? YES, SIR.
[01:30:01]
I DO.UH, WE'RE GONNA SIGN OFF ON THIS LINK AND GO BACK, GO TO THE SECOND LINK SENT TO YOU VIA EMAIL.
SO WE ARE NOW, WE ARE NOW IN CLOSED SESSION, JUST THE DALLAS PUBLIC FACILITY CORPORATION HAS COMPLETED ITS CLOSED SESSION UNDER SECTION 5 5 1 0 7 4 OF THE TEXAS OPEN MEETING ACT.
AND AT 2:08 PM CENTRAL STANDARD TIME ON JUNE 24TH, 2025.
WE HAVE RETURNED TO OPEN SESSION.
AND LET THE RECORD REFLECT THAT, UH, DIRECTOR HANSEL HAD TO LEAVE AND DIRECTOR BLANKENSHIP HAD TO LEAVE.
BUT JUST TO CONFIRM, A QUORUM IS STILL PRESENT THOUGH ONLINE.
UH, DIRECTOR HOLMES HAS JOINED.
HAS HE JOINED BACK WITH US? I DON'T THINK SO, BUT, BUT HE, BUT EVEN, EVEN WITHOUT HIM, WE DO HAVE A FORUM.
IS IT, IS IT NOT? IT'S A MAJORITY REGARDLESS OF HOW MANY ARE ACTUALLY APPOINTED.
NO, IT'S, IT'S HOW MANY ARE APPOINTED ISSUANT TO THE BYLAWS, WHICH SECTION? AND THAT BY FOR MEETING IT HAS NOT, ACTUALLY THE CITY ATTORNEY'S OFFICE HAS COMMENTS ON THIS SEVERAL TIMES.
WE HAVE EIGHT, RIGHT? SO WE'RE GOOD.
HAVE, CAN'T WE? SORRY ABOUT THAT.
I WAS, BUT YEAH, IF YOU GUYS' JOIN, I'M, I'M THE EIGHT.
WE'RE TOO OLD TO COUNT TO EIGHT.
AND THE STATEMENT HAS BEEN READ.
ITEM NUMBER 12, UH, JUST TO, SO IT CAN BE READ INTO THE RECORD.
THE BOARD MAY RECONVENE AN OPEN SESSION AND ACT ON ANY ITEM LISTED ON THE EXECUTIVE ASSESSMENT AGENDA IN THE ACCORDANCE WITH CHAPTER 5 5 1 TEXAS GOVERNMENT CODE.
CAN I HAVE, UH, PRIVILEGE TO GO BACK TO THE FORUM ITEM? YES, SIR.
SO SECTION 2.9 FORUM A FORUM EXISTS WHEN THERE ARE PHYSICALLY PRESENT, A SIMPLE MAJORITY OF THE NUMBER OF MEMBERS DULY APPOINTED TO THE BOARD PURSUANT TO THESE BYLAWS.
REGARDLESS OF THE TOTAL NUMBER OF MEMBERS DULY APPOINTED TO THE BOARD, IF LESS THAN 15, THE ACT OF MAJORITY OF THE DIRECTOR'S PRESIDENT AT THE MEETING AT WHICH THE DORM IS ATTENDANCE SHALL CONSTITUTE THE ACT OF THE BOARD UNLESS THE ACT OF THE GREATER NUMBER IS EXPIRED BY LAW.
SO THERE ARE 13 CORRECT APPOINTED MEMBERS.
THAT'S HOW I, REGARDLESS OF IF LESS THAN 15, READ THAT PART AGAIN.
UM, MCC QUO EXISTS WHEN THEY'RE PHYSICALLY PRESENT.
SIMPLE MAJORITY OF THE NUMBER OF MEMBERS DULY APPOINTED TO THE BOARD PURSUANT TO THESE BYLAWS, REGARDLESS OF THE TOTAL NUMBER OF MEMBERS DULY APPOINTED THE BOARD OF LESS.
SO YOU'RE SAYING THAT IT'S, REGARDLESS OF VACANCIES, THE QUORUM IS BASED ON THE 15 DULY APPOINTED.
I DO AGREE IT'S WORDED POORLY, BUT THAT IS, THAT HAS BEEN THE CIO'S INTERPRETATION OF IT.
'CAUSE THEY HAVE THAT LANGUAGE AS WELL.
WELL, MY, MY INTERPRETATION DIVERSE
SO
WE DON'T HAVE THAT MUCH MORE TO DISCUSS.
UH, MOVING ON TO ITEM NUMBER 13, DISCUSSION AND APPROVAL OF RFP RESPONSES FOR DPHC ON PROPERTIES, MR. MCDANIEL? YEAH, SO, UH, WE HAVE SOME RFPS THAT, UH, THE FINANCE COMMITTEE,
YEAH, WE, UH, IN ONE OF OUR DISCUSSION IN EXECUTIVE SESSION THAT TAKE DISMISS, WE DEFER THIS ITEM
[01:35:04]
VERY GOOD.SO THERE'S NOTHING TO APPROVE.
WE DON'T NEED TO FORMALLY DEFER IT.
SO WITH NO MORE DISCUSSION, WE'LL MOVE ON TO ITEM NUMBER 14, REVIEW AND DISCUSSION OF DPSE TREASURER'S REPORT.
WELL, WE HAVE, UH, SHANNON ON AND SHE WILL GIVE US A REPORT.
UH, THANK YOU SHANNON, OF OUR, UH, TREASURER'S REPORT.
THIS IS, I'LL JUST KEEP IT BRIEF.
UM, IT WAS A QUIET MONTH, REALLY JUST, UH, MINIMAL ACTIVITY SINCE THE PRIOR MONTH.
YOUR, UM, CASH AND INVESTMENTS TOTAL JUST OVER $4 MILLION WITH YOUR MONEY MARKET MAKING UP 3.9 MILLION OF THAT BALANCE, STILL EARNING 3.04% INTEREST AS OF MAY 31ST.
UH, YOUR TOTAL INCOME FOR THESE FIVE MONTHS HAS, IS RIGHT AT 484,000 WITH EXPENSES OF 231 TO GET YOU A NET CHANGE OR NET INCOME OF 253,000 FOR THESE FIRST FIVE MONTHS.
ANY QUESTIONS? ANY QUESTIONS? ANY ONLINE, ANY ONLINE? SEEING NONE, UH, THANK YOU VERY MUCH.
UH, MS. ANDRE? YOU'RE WELCOME, SIR.
MOVING ON TO ITEM NUMBER 15, DPFC WEBSITE, LINKEDIN BRIEFING AND DISCUSSION, MR. MCDANIEL? YEAH, SO WE ARE PRETTY DANG CLOSE TO WHAT WE WOULD CONSIDER NOW FINAL, UH, VOTE WITHOUT, YOU KNOW, REGULAR UPDATES.
UM, WE'RE GONNA BE SCHEDULING A MEETING WITH THE COMMUNITY ENGAGEMENT COMMITTEE, KIND OF REVIEW AND SEE THAT THIS IS, YOU KNOW, FINAL.
BUT, UM, AT THIS POINT, OUR INCOME CALCULATORS UP, ALL OF OUR PROPERTIES ARE UP.
WE HAVE A PLACE FOR OUR UNDERWRITINGS.
UM, AND THE LAST REAL THING THAT WE NEED, UH, TO GET ON THERE IS, UM, LIKE THE SIGN UP SHEET, IF I'M NOT MISTAKEN SPEAKING.
YES, IT'S A PUBLIC, UH, PUBLIC SPEAKER SIGNAGE SHEET.
YEAH, SO THAT'S THE LAST THING ON THE AGENDA, UH, WEBSITE.
UH, BUT OTHERWISE GOING GREAT.
UM, AND, UH, THEN WE'RE GONNA GO OVER IT WITH THE COMMUNITY ENGAGEMENT COMMITTEE AND, UH, WITH THE NEXT STEPS ARE ON THAT FRONT.
ISN'T THAT DIRECTOR MARQUEZ? IF, IF, IF HERE, IF YOU SEE ANY OF THESE COMMITTEES LIKE TO JOIN, UH, UH, WE, WE CAN SEND YOU A LIST OF THOSE AVAILABLE AND ILL, I'LL EMAIL YOU OVER OUR LIST ABOUT THIS OF THE AVAILABILITY.
UH, MOVING ON ITEM NUMBER 16, DPFC PIPELINE REPORT, BRIEFING AND DISCUSSION, MR. MCDANIEL.
RIGHT? WE DON'T HAVE TOO MUCH MOVEMENT GOING ON.
UM, WE WILL, UH, BE MOVING THE, UH, BLOCK VIEW PROPERTY UP SHORTLY IF WE HAVEN'T ALREADY, UH, TO LEASING, BUT THAT'S PRETTY CLOSE ON THAT ONE.
UM, AND, UH, VERY CLOSE TO TO BEING READY TO LEASE, UH, BISHOP EIGHTH AS WELL.
SO THOSE POSSIBLY BY THE NEXT TIME WE MEET WILL BE MOVING UP.
UM, AS FAR AS ANYTHING MOVING UP INTO UNDER CONSTRUCTION, UH, WE HAVE NOT CLOSED ON C***S CREEK, BUT THEY HAVE STARTED SITE WORK.
UM, THEY ARE GOING TO BE, UH, DOING A LITTLE BIT OF FREE WORK ON THAT PROJECT.
UM, THEY HAVE BETTER RETURNS ON THEIR LOW AND THEY WANNA LINE UP THEIR FINANCING CLOSING WITH PFC CLOSING, BUT THEY ARE VERY CLOSE TO MOVING FORWARD.
SHOULD BE IN THE NEXT MONTH OR SO.
UM, AND THE, UH, FROM MOVING STUFF UP FROM PRELIMINARY, THE, UH, SANTA FE TRAIL AT HASKELL, THAT PROJECT IS APPARENTLY VERY CLOSE TO CLOSING.
UM, WHERE WE SPOKE LAST A COUPLE WEEKS AGO WOULD BE GREAT.
UH, IT'S GOOD FOR THE FAIR PARK NEIGHBORHOOD.
UM, ADDITIONALLY WE HAVE AT LEAST ONE NEW PROJECT COMING IN NEXT MONTH, UH, FOR CONSIDERATION.
WE'VE JUST GOTTEN AN APPLICATION, UH, TODAY AND, UH, THAT'S WHERE WE'RE AT WITH OUR PIPELINE AT THIS POINT IN TIME.
ANY QUESTIONS? SEEING NONE, UH, THANK YOU VERY MUCH, SAM.
I APPRECIATE ALL YOUR HARD WORK AND ALL THE STA YES, SIR.
I JUST WANTED MAKE, OH, THERE YOU GO.
[01:40:01]
THIS, SINCE I WAS KICKED OUT OF THE, THE MEETING OUTSIDE, WE HAD THIS CONVERSATION.WE CAN REALLY EXPECT, I REALLY THINK WE'RE GONNA GET A GARAGE OF NEW TRANSACTIONS.
I THINK BECAUSE OF SA 40, YOU CAN BUILD MULTI-FAMILY.
I RIGHT? ANYWHERE IN TEXAS, WELL, NOT ANYWHERE, BUT CERTAIN LARGE COUNTIES IN TEXAS, INCLUDING DALLAS, THE CITY OF DALLAS.
SO, SO ANY PROJECT THAT DIDN'T HAVE ZONING THAT, THAT GOES AWAY, YOU'VE ALREADY HAD AT LEAST SIX OFFICE BUILDING CONVERSIONS, CATHOLIC, TWO ON NORTHWEST HIGHWAY, COUPLE UP NORTH, UH, MONTFORD, LBJ SPRING.
SO I, I, THE POINT IS, SAY, THINK THEY'RE DOING A TERRIFIC JOB AT REALLY THINK OUR WORKFLOW BECAUSE YOU CAN GROW EVEN MORE.
SO ALSO HAPPENED TO RUN INTO COLE CLARK ABOUT THREE WEEKS AGO.
HE KIND OF RUNS THE THINK TECH SPOKE VERY HIGHLY VIEWED, UH, TREVOR, AND I'VE DONE IT FOR A LONG TIME.
AND HE SAID, UH, I THINK I'LL SHARED, I'LL SHARE THE PIPELINE WITH HIM.
AND HE SAID, THERE'S ONLY TWO DEALS GETTING DONE IN, IN DALLAS LUXURY AND PFC FOR THE MOST PART, VERY FEW MARKET RATE DEALS, WHICH MEANS ALMOST NONE AFFORDABLE OTHER THAN WHAT THIS BOARDS, UH, YOU KNOW, SO I JUST WANNA THROW THAT OUT JUST TO, IT'S GETTING GEARED UP.
FROM, UH, DR. CLARK, UH, HE'S WITH SMU AND THE BUSH INSTITUTE AND HE'S DONE SOME, YOU'VE SHARED HIS STUDIES THAT HE'S DONE.
AND SO THAT'S A VERY INTERESTING POINT THAT HE MAKES ABOUT, YES, IT IS LUXURY.
AND THEN PSC DEALS, AND YOU CAN SEE THAT ALL OVER UPTOWN AND EVERYWHERE ELSE.
SEEING NO ITEMS, WE MOVE ON TO ITEM NUMBER 17.
AND I THANK Y'ALL VERY MUCH FOR LONGER THAN NORMAL MEETING.
AND, UH, OUR NEW MEMBER, UH, DIRECTOR MARQUEZ FOR COMING IN WHENEVER WE HAVE A, UH, DID YOU PAUSE THIS LONG MEETING? I KNOW MS. JONES
WE HAVE A MOTION, MOTION BY DIRECTOR TO ADJOURN.
ALL IN FAVOR TO ADUR BY SAYING AYE.