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THANK YOU VERY MUCH.[Public Facility Corporation Meeting on December 2, 2025]
NAME IS KEITH AL, PRESIDENT OF THE DALLAS PUBLIC FACILITIES CORPORATION BOARD OF DIRECTORS.I'D LIKE TO CALL THIS DECEMBER 2ND, 2025 MEETING TO ORDER AT 12:02 PM I APOLOGIZE FOR THE DELAY.
UH, WE'LL MOVE ON TO ROLL CALL SAM.
WHAT? WE HAVE FINAL LINE, SOPHIA.
WAS THAT A YES? I, I DON'T, I DON'T KNOW.
JASON, WE'LL GO KNOWN FOR NOW.
KEVIN WINTERS HERE, OR STONE PRESENT? CHIEF
AGAIN, WE HAVE, UH, 12 MEMBERS PRESENT, SO THAT IS A FORUM.
UM, DID ANYBODY PLEASE, DID, DID ELSE ON THE ZOOM LOSE OR THE TEAMS LINK LOSE SOUND? YES.
SA SAM, CAN YOU, CAN YOU HEAR US? I CAN HEAR YOU NOW.
WELL, I, I'M ON ZOOM TOO, SAM.
OH, I, I JUST SENT SAM A TEXT.
I THINK HE'S WORKING ON IT NOW FOR EVERYBODY.
I WAS JUST GETTING READY TO TEXT YOU AND, UH, SO IT'S GREAT, UH, ON A, AN ITEM LIKE THIS TO, UH, TO HAVE THAT RECOGNITION.
HIS DAUGHTER WAS ON HAND TO AWARD IT.
UM, ANNIE EVANS WON THAT AWARD, UM, OR, UH, GOT THE AWARD.
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FOR THOSE OF YOU THAT DON'T KNOW ANNIE, SHE'S AT, UH, SHE'S THE EXECUTIVE DIRECTOR AT SOUTH FAIR BEAUTY DEVELOPMENT COURT.UM, THEY HAVE AN OFFICE RIGHT ON MLK, UM, NOT TOO FAR FROM THE MLK CENTER, UM, AND HAS WORKED FOR, UM, DECADES, UM, IN AND AROUND FAIR PARK.
AND THEN, UH, I'D BE REMISS IF I DIDN'T MENTION BRIAN, TONY AND HIS LEADERSHIP ALONG WITH ASHLEY BRUNDAGE AT, UH, HABITAT, UM, WHO HAVE DONE A FANTASTIC JOB WITH THIS.
UM, THE WHOLE DALLAS HOUSING COALITION THING, IT HAS ABOUT 500 PEOPLE THERE, UM, A WEEK AGO, A WEEK AND A HALF.
UH, SO IT'S, UH, A TREMENDOUS HONOR.
IT'S NICE TO, TO SEE RAUL'S FAMILY AND, UM, SEE HIS NAME AND KNOW THAT HE IS BEING REMEMBERED.
UM, IT SUCH A, A, A SPECIAL WAY.
JUST WANTED TO, UH, CHIME IN ON THAT.
DIRECTOR MONTGOMERY, ANY OTHER COMMUNITY ANNOUNCEMENTS HERE ONLINE? SEEING NONE.
AND CAN EVERYONE HEAR US ONLINE? DO WE HAVE A, A, ANOTHER SOUND ISSUE? YEAH, WE DID, BUT WE, WE GOT IT FIGURED OUT.
MOVING ON TO ITEM NUMBER SIX, ETHICS DISCLOSURES.
DPFC BOARD MEMBERS SHOULD DISCLOSE ANY RELATIONSHIP A MEMBER MAY HAVE WITH THEIR PROJECTS TO BE CONSIDERED 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, THE DPFC BOARD IS CONSIDERING.
UH, CLARKSBURG CAPITAL IS A CLIENT OF MY EMPLOYER, SO I THINK THEY'RE PRESENTED TO.
THEN I'LL STEP OUT WHEN THEY SHOW UP FOR CONSIDERATION.
SO, UH, DIRECTOR LOMBARDI WILL STEP OUT ON FRIDAY, NUMBER NINE.
WE'LL MOVE ON TO ITEM NUMBER SEVEN, DISCUSSION AND APPROVAL OF A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TERM SHEET FOR MOCKINGBIRD CORNER, AN AFFORDABLE MULTI-FAMILY DEVELOPMENT PROJECT AND PARTNERSHIP WITH GHN HOLDINGS TO BE LOCATED AT 1241 WEST M BIRD LANE, DALLAS, TEXAS 7 5 2 4 7 IN DISTRICT TWO.
UH, AARON, THANK PRESENT UPON CALL.
SO WE HAVE HERE, MR.
SO HE HAS BROUGHT THIS PROJECT THE MORE, UH, CONSIDERATION AND NOT, HE'S MUCH MORE INTIMATELY FAMILIAR WITH THE DETAILS THAN I, I'LL LET PRESENT IT TO YOU GUYS.
UH, PAUSE FOR QUESTIONS AFTER THAT.
SO, HUN, THANK YOU FOR COMING.
UH, AARON PREFACE, UH, MORNING AFTERNOON DIRECTORS.
UH, ANYONE ON THE LINE? YOU CAN'T HEAR ME.
I'M GOOD AT TALKING LOUDER IF, IF THAT'S NEEDED.
IS THAT MICROPHONE ON NOW? IT IS.
I CAN ALSO TALK QUIETER NOW THAT I'M
I'M WITH GHN HOLDINGS, THE DEVELOPER OF TODAY'S PROPOSED PROJECT, WHICH IS MOCKINGBIRD CORNER, UH, GHN HOLDINGS.
WE ARE A LOCALLY BASED DALLAS DEVELOPMENT GROUP, UH, FOCUSED ON ALL THINGS MULTIFAMILY FOR BOTH MARKET RATE AND INCOME RESTRICTED PRODUCTS, UH, THROUGHOUT TEXAS.
AND SO COMPANY LEADERSHIP IS PARTICIPATING IN DEVELOPMENT IN ALL THE MAJOR TEXAS METROS, DALLAS, AUSTIN, HOUSTON, FORT WORTH, SAN ANTONIO, AND ALL MULTI-FAMILY PRODUCT TYPES FROM TOWER TO MID-RISE, UH, TO SINGLE FAMILY BUILT FOR RENT.
I'M VERY EXCITED ABOUT, UH, 1241 WEST MOCKINGBIRD.
UH, YOU CAN SEE HERE IT'S ABOUT, UH, 10 MINUTES NORTH, UH, WHERE WE'RE CURRENTLY SITTING HERE, IT'S DOWNTOWN CITY HALL, UH, ALONG THE SIMMONS CORRIDOR AND PART OF THE MEDICAL DISTRICT.
AND SO THE MEDICAL DISTRICT, UM, IS HOME TO THE THREE LARGEST CITY OF DALLAS EMPLOYERS, NOT INCLUDING THE CITY OF DALLAS ITSELF, SO UT SOUTHWESTERN PARKLAND HEALTH AND SOUTHWEST AIRLINES, WHICH IS ALSO ON MOCKINGBIRD.
AND DESPITE THE HUGE NUMBER OF JOBS IN THIS SUBMARKET, REALLY WAITING FOR THIS PRESENTATION TO CATCH UP ONLINE.
UM, THERE'S A HOUSING CRISIS IN THE CENSUS TRACT.
UM, THERE IS CURRENTLY ONLY A THOUSAND HOUSING UNITS THERE.
IT'S IN THIS CENSUS TRACT, DESPITE IT BEING SUCH A LARGE SWATH IN A MAJOR EMPLOYMENT MARKET.
SO THE, THE CENSUS TRACT IS 2000 ACRES,
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IS BETWEEN HARRY HINES I 35, ALL THE WAY TO THE ANTI TOWN UP TO SPUR FOUR.UM, AND IT ALIGNS WITH THE CITY OF DALLAS HOUSING POLICY, PROPOSED HOUSING POLICY FOR THE PFC PROGRAM.
UM, AND THE FACT THAT IT IS LOCATED IN WHAT'S CONSIDERED A 20% POVERTY CENSUS CRACKS.
HOWEVER, THE TRUTH IS THERE'S NO HOUSING CENSUS TRACT, AND CURRENTLY YOU CAN SEE THE SITE CONDITIONS.
SO DESPITE BEING THE FRONT DOOR TO WHAT SHOULD BE A VERY BRI UH, VIBRANT NEIGHBORHOOD, UM, THIS SITE HAS BEEN VACANT SINCE 2016.
AND FOR THE MAJORITY OF THAT TIME, IT SAT AS A VACANT HOTEL STRUCTURE.
UM, YOU MAYBE THIS MIGHT GIVE YOU SOME FLASHBACKS OF SOME, UH, SOME NEWS REPORTS OF PEOPLE WHO USED TO BREAK IN ONTO THE PROPERTY, LIVED IN THE HOTEL STRUCTURE, UH, YOU KNOW, SEVERAL ARSON ATTACKS, UH, INCURRED IN WHICH THE CITY SAID, HEY, THIS, THIS PROPERTY IS SOAKED IN DISREPAIR.
WE ARE MANDATING IT BE TORN DOWN.
IT GOT, IT GOT FULLY DEMOLISHED END OF YEAR 24.
AND THIS IS WHAT IT LOOKS LIKE TODAY.
IT'S, IT'S A CLEAN, VACANT LAND SITE, UH, WHAT I CALL THE UNNATURAL POND FEATURE HERE IS WHERE THE SUB SUBTER GARAGE PREVIOUSLY EXISTED THAT DID NOT GET FULLY BACKFILLED.
UM, AND FOR EVERYONE'S EDUCATION, ENVIRONMENTAL TESTING HAS BEEN PERFORMED.
THE SITE HAS A CLEAN BILL OF HEALTH.
UM, AND AS PART OF THIS PROJECT, WE WILL BACKFILL THAT AREA.
HOWEVER, THAT AREA IS ALSO NOT ON THE SUBJECT SIDE.
AS WE WAIT FOR THIS NEXT SLIDE TO POP UP WITH THE SITE PLAN, UM, WE HAD THE OPTION OF PURCHASING THE, THE PORTION OF THE SITE THAT IS ADJACENT TO THE SERVICE ROAD AND ON TOP OF I 35 ITSELF, BUT WE DID NOT FIND THAT TO BE APPROPRIATE FOR RESIDENTIAL LIVING.
AND SO WE ACTUALLY SENT BACK THE PROPERTY BOUNDARY TO CREATE A BUFFER FROM THE SERVICE ROAD AND ARE WORKING WITH THE RETAIL
SO THERE, THERE'S A CONTINUED MIXED USE, UM, UH, TYPE ATMOSPHERE HERE AT THIS FRONT DOOR LOCATION.
BUT, UH, THE PRODUCT TYPE WE'RE DISCUSSING FOR THE PFC PARTNERSHIP IS 275 UNITS, UH, CLASS A MULTIFAMILY.
IT WILL HAVE ONSITE MANAGEMENT, FULL STAFF, UH, FULL SUITE OF AMENITIES, SO FITNESS, SOCIAL LOUNGE, POOL, COURTYARD, UH, AND, AND TOP OF MARKET FINISHES FOR BOTH THE PROPERTY ITSELF AND, AND THE UNITS.
UM, THE PRODUCT TYPE IS A FOUR STORY WRAP STRUCTURE.
SO YOU HAVE AN ABOVE GRADE PARKING GARAGE THAT IS COVERED WITH UNITS.
SO IF YOU DRIVE BY, YOU DON'T SEE A UGLY PARKING STRUCTURE, YOU SEE A, A UNIFIED, UH, COMMUNITY.
AND SO IN TALKING WITH MAYOR PROTON MORENO ABOUT THIS, THIS PROJECT, UH, THAT WAS A, A PRIORITY TO GET THIS SUPPORT IS BRINGING A CLASS A PRODUCT TO WHAT HAS LONG BEEN ALIGHTED AREA, YOU KNOW, AS YOU DRIVE ALONG STEM WELL, THE 1980S OBSOLETE OFFICE SPACE AND SERVICE PARKING LOTS.
SO AS WE, FOR THE NEXT LINE TO POP UP, UM, IT'S A BREAKDOWN OF OUR UNIT MIX AND THE AFFORDABILITY THAT WE'RE PROVIDING.
SO ONCE AGAIN, SPEAKING WITH MAYOR PRO TIM, THE, THE GOAL WAS TO BRING REALLY MARKET RATE AND MIDDLE INCOME UNITS TO HELP, HELP ELEVATE THIS AREA.
AND, UH, BASED ON OUR, OUR ANALYSIS OF THE SUBMARKET, THERE IS STILL AFFORDABILITY BEING CREATED BETWEEN THE 80% OF THE MARKET RATE AND ON AVERAGE $200, UM, AFFORDABLE CREATION THERE, AND $600 OF AFFORDABLE CREATION ON THE 60 A MI UNITS.
UH, AND BASED ON OUR REVIEW WITH HILLTOP, UM, IT DOES CREATE A PUBLIC BENEFIT THAT I BELIEVE IS ABOVE THE THRESHOLD THAT THIS BOARD CONSIDERS OF 60%, BUT ACTUALLY HITS ABOVE 70%, UM, I BELIEVE IS THE ANALYSIS FOR THIS PROJECT.
FURTHERMORE, THIS IS A, A MONEY MAKER, UH, FOR THE CITY IN THIS PARTNERSHIP IN THE SENSE THAT THE GROUND RENT IS GONNA BE THREE TIMES LARGER THAN CURRENT PROPERTY TAX AND IN CONSIDERATION OF OTHER PFC PARTNERSHIP FEES, SALES TAX SHARE, UH, AND STRUCTURED FEE.
BUT NOT EVEN CONSIDERING, UM, ANY SALE PARTICIPATION OF PFC PARTICIPANTS IN OVER A 10 YEAR PERIOD ESTIMATING A $2.7 MILLION VALUE CREATION TO THE CITY VERSUS THE 700,000.
UM, AND THEN THE FINAL COMPONENT THAT'S WORTH, UH, DISCUSSING IS OUR, THE CURRENT LANDOWNER HAS NOT PAID PROPERTY TAXES IN THREE YEARS.
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AN IOU OF 300,000 TO THE CITY THAT WOULD GET SETTLED WITH THIS PROJECT.UM, AND SO THAT, I LOOK FORWARD TO DISCUSSING ANY QUESTIONS YOU MIGHT HAVE.
UH, I WOULD LIKE THE RECORD TO REFLECT, UH, THAT DIRECTOR, BROWN DISTRICT EIGHT HAS JOINED US ONLINE.
AND, UH, JUST A FRIENDLY REMINDER IF, UH, IF YOU'RE ONLINE, UH, AND A MEMBER OF THE BOARD, CAN YOU PLEASE KEEP YOUR CAMERA ON.
WE'LL, UH, MOVE ON TO QUESTIONS AND COMMENTS.
RIGHT ON NUMBER SEVEN, DO YOU HAVE ANY FROM ON ONLINE OR HERE? PARDON? YES.
UM, FIRST OF ALL, APPRECIATE THE PRESENTATION.
I HAVE, I, I KNOW THE SITE VERY, VERY WELL HAVE TO DRIVE BY IT ALMOST EVERY DAY.
AND SO I'VE ALWAYS WONDERED WHY IS THERE A LAKE NEXT TO STEMMONS, YOU KNOW, FULL OF WATER BEHIND A GAS STATION.
NOW, I LEARNED SOMETHING TODAY, BUT, UH, I, I THINK THIS PROJECT IS, IS, IS, IS MUCH SKINNY, IS EXACTLY WHAT WE, WE NEED TO BE DOING.
THERE'S NO, WE'RE NOT TAKING PROPERTY OFF THE TAX ROLLS.
WE'RE ACTUALLY GETTING A $300,000 HIT TO THE CITY THAT CLOSING.
NOT TO MENTION EVERYTHING COMING TO THE POC QUALITY PRODUCT.
YOU, YOU HAD THE OUTREACH WITH, UH, COUNCILOR MARINA.
I KNOW YOU'VE TALKED TO COUNCILMAN IAN AS WELL.
UH, I DO HAVE SOME QUESTIONS ABOUT THE, UM, THE, UH, SOME OTHER DEVELOPERS, UH, I'VE BEEN MEETING WITH DURING THE HOLIDAYS, AND, UH, I'VE HEARD THIS TWICE.
I'M CURIOUS, THIS IS MORE ANECDOTAL THAT BECAUSE THE STATE MADE SOME RETROACTIVE CHANGES TO THE HFC, THE TRAVELING HFCS, WHICH WE ALL THINK IS A GOOD IDEA, THAT A LOT OF THE INVESTMENT HAS REDLINED, BFCS AND HFCS.
A LOT OF THE BIG INSTITUTIONAL INVESTORS ARE LIKE, WELL, IF THE STATE COULD COME IN, CHANGE YOUR MIND IN TWO YEARS, MAKE US DO THIS OR MAKE US DO THAT.
YOU KNOW, MAYBE WE, MAYBE WE TO SIT BACK, YOU KNOW, SIT THIS ONE OUT.
AND I, I KNOW ONE DEAL PARTICULARLY THAT GOT KILLED, BUT THAT JUST FOR THAT REASON.
UH, YOU'RE OBVIOUSLY, YOU KNOW, MAYBE YOU'RE GONNA FINANCE OUT POCKET, I ASSUME YOU'RE TALKING TO LENDERS, YOU KNOW, EQUITY INVESTORS, SO IF YOU CAN COMMENT ON THAT.
UM, AND SO THE LENDERS ARE STILL VERY COMFORTABLE WITH THIS STRUCTURE.
THIS SATISFIES COMMUNITY REINVESTMENT ACT OPPORTUNITY FOR LENDERS, AND THAT'S VERY ATTRACTIVE TO THEM.
IT'S SOMETHING REQUIRED IF ANYONE WHO'S LOCALLY BASED, UM, THEY NEED TO PROVIDE AS PART OF THEIR FEDERAL CHARTER, UM, THE FACT THAT THEY'RE SATISFYING THAT, AND THE PFC PROGRAM DOES SATISFY THAT.
UM, NOW RELATED TO EQUITY, ABSOLUTELY.
YOU HAVE YOUR INSTITUTIONAL GROUPS WHO ARE NOT TEXAS BASED, CORRECT.
THEY'RE IN NEW YORK, THEY'RE IN CALIFORNIA.
UM, AND SO THEY HEAR AN ACRONYM AND THEY SAY, WELL, WHAT'S GOING ON WITH THAT ACRONYM? THIS ACRONYM? UM, AND, AND, AND THEY'RE NOT ESOTERIC ON THE MATTER.
UH, THOSE GROUPS ARE SIDELINES.
THEY, THEY SAW WHAT HAPPENED TO THE RETROACTIVE, UH, CHAPTER 3 94 CHANGES.
UM, AND THEREFORE THEY'RE, YOU KNOW, THEY'RE NOT LOCAL AND THEY'RE NOT LOOKING TO GET RISKY LOCAL.
NONETHELESS, UM, THERE IS THE LOCAL CAPITAL WHO IS FULLY AWARE OF POTENTIAL RISK, BUT ALSO MORE UNDERSTANDING OF, WELL, LET'S, LET'S COMPARE WHAT JUST HAPPENED WITH WHERE WE CURRENTLY ARE WITH THE PFC.
WHAT JUST HAPPENED WAS, WELL, THERE WAS A LOOPHOLE AND THAT WAS THE BATHWATER, BUT THERE WERE THE PEOPLE ACTING IN SPIRIT WITH THE PROGRAM, AND THAT WAS THE BABY.
WELL, THE BABY AND THE BATHWATER GOT THROWN OUT.
UH, THE BSC WAS PREVIOUSLY REFORMED, AND NOW IT'S JUST THE BABY
UH, AND, AND IT'S BEING APPROVED HERE LOCALLY IN FRONT OF CITY COUNCIL.
UH, IT'S CREATING NEW, NEW CONSTRUCTION, AND IT IS A TOTALLY, IT'S NOT COMPARABLE.
AND SO THERE, THERE IS A LOT OF EXCITEMENT TO PARTICIPATE IN THESE TYPE PARTNERSHIPS, BUT IT REQUIRES SOMEONE WHO ACTUALLY UNDERSTANDS THE WEATHER CONDITIONS.
UM, AND SO AS PART OF THAT, AND THE MOCKINGBIRD CORNER PROPOSAL FOR PARTNERSHIP HERE WAS HAVING THOSE DISCUSSIONS ON THE FRONT END, NOT WAITING WHEN WE GOT TO THE ALTAR TO FIGURE OUT, WELL, WHO'S STILL OUT HERE? UM, AND, AND YES, THERE IS CAPITAL THAT WOULD BE VERY EXCITED IN PARTICIPATING A PFC PARTNERSHIP HERE FOR
I ASSUME, UM, UH, IN YOUR CONVERSATIONS, UH, THE STEMS BUSINESS CORRIDOR GROUP, I KNOW MS. CADES HAS BEEN VERY ACTIVE IN GETTING THAT UP, UP AND RUNNING.
PROBABLY DIDN'T EXIST FOUR YEARS AGO.
UH, ANY COMMENTS FROM THEM? BUT HAVING MORE RESIDENTIAL, BECAUSE I, I KNOW THERE'S
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RESIDENTIAL ACROSS THE HIGHWAY TOO, THE STORY I THINK IT'S CALLED RIGHT? A COUPLE BUILDINGS THERE.ARE YOUR RENT COMPARABLE TO THEIRS? I ASSUME YOUR YES.
THEY, THE RENTS ARE IN LINE WITH STORY.
UM, DESPITE WHAT I'LL SAY HERE, IT'S A MORE ATTRACTIVE LOCATION OFF OF A CLEAN INTERSECTION SEPARATED FROM THE SERVICE ROAD, NOT ON THE SERVICE ROAD, UH, EAST SIDE NEXT BOMBSHELLS, WHY NOT
DON'T WANNA KNOW WHAT THAT IS.
UH, BUT YES, IT IS COMPARABLE.
AND WITH THE STEM CORAL GROUP, YOU KNOW, I, I REACHED OUT TO ONE OF THE, UM, I, I FORGET WHAT THEY CALL IT, THE, THE BOARD OF DIRECTORS THERE, BUT I CONNECTED WITH SOMEBODY ON, ON THE BOARD, AND, UH, THEY, THEY SAID, THIS PROJECT SEEMS VERY ALIGNED WITH, YOU KNOW, MAYBE WE CAN FAVOR OTHER COMMENT.
I THINK WE, YOU CAN BROACH THIS.
THE, UH, THIS, THIS BOARD APPROVED A 26 ACRE PFC ON MOCKINGBIRD AT THE TAILORED PUBLISHING SITE.
OH, REMEMBER THAT? WELL, IT'S NOT GONNA BE RESIDENTIAL ANYMORE.
IT'S GONNA BE A, A DATA CENTER IS, YOU KNOW, JUST RECENTLY ANNOUNCED.
SO, YOU KNOW, I WAS CONCERNED ABOUT, YOU KNOW, CONCENTRATING SO MANY UNITS IN ONE AREA.
WELL, THAT'S NOT, YOU KNOW, THAT ISSUE'S KIND OF GONE AWAY.
WHAT'S TO PREVENT THIS FROM BEING A DATA CENTER SITE, I GUESS STOP PICKING UP
YOU KNOW, I HAVEN'T RUN THE POWER AND WATER METRICS FOR THE LOCATION.
I SUPPOSE WE DO HAVE THE UNNATURAL BOND
UM, IT'S NOT BEING PURSUED IN THAT WAY.
AND IF, IF, IF THERE WAS AN UNSOLICITED OFFER, I WOULD BE, I WOULD BE SHOCKED.
AND NOR IS THAT THIS GROUP'S PRIORITY, THIS GROUP'S PRIORITY IS TO BUILD HOUSING.
IT'S, IT'S NOT NECESSARILY TO DO LAND FLIPS TO THAT'S, BUT, AND THE FACT THAT, UH, THAT PROJECT ALSO JUST STARTED CONSTRUCTION, RIGHT? SO YOU CAN GO SEE THE, THIS, THE PRESS RELEASE.
IT'S NOT EVEN A MILE LEASE OF THIS PROPERTY ON MOCKINGBIRD.
AND, UH, IT'S, IT'S A BILLION DOLLAR INVESTMENT INTO THIS CORRIDOR ORDER.
DO YOU KNOW HOW YOUR RENTS? WE, WE, WE HAVE A DEAL ON, ON, UH, ROYAL LANE, RIGHT? IN THE ASIAN DISTRICT.
IS IT LEASING? IT'S LEASING STANDARD OUT ROYAL.
YEAH, IT'S, IT'S, ARE YOUR RENTS, HAVE YOU LOOKED AT THAT? THE RENTS? I DIDN'T VIEW THAT AS BEING PART OF THIS SUBMARKET, SO I HAVEN'T COMPARED THERE.
WHAT I COMPARE TO IS THE STORY, AND THEN EVERYTHING THAT EXISTS RIGHT NEXT TO LOVE FIELD, UM, AND I UNDERWROTE A DISCOUNT TO THE MARKET READY TO THE PRODUCT NEXT TO LOVE FIELD.
UM, BECAUSE OVER THERE IT'S, IT'S, IT DOES HAVE THAT MIXED USE COMPONENT, ALL THE RESTAURANTS.
UM, AND IT'S, IT'S BEEN FULLY REBUILT AND IT, IT IS ON TOP OF THE MEDICAL SYSTEM THERE AS WELL.
UM, AND SO ANYWAY, IT'S, WE DISCOUNTED THIS TO WHAT IS BEEN ACHIEVED THERE, BUT WROTE IT IN LINE WITH WHAT THE STORY IS ACHIEVING.
I HAD, I HAD TO MENTION BOMBSHELLS TODAY.
AND, UH, AS A SIDE NOTE, I'D LIKE THE RECORD TO REFLECT THAT WE HAVE 100% ATTENDANCE TODAY, UM, EXCEPT FOR THE VACANCY WE HAVE IN DISTRICT TWO.
THANK YOU VERY MUCH EVERYONE FOR COMING DURING THIS WONDERFUL HOLIDAY SEASON AND ATTENDING OUR MEETING.
UH, ANY OTHER COMMENTS, QUESTIONS FOR ITEM NUMBER SEVEN, COUNSEL? YES, COUNSEL, THIS IS PURELY CLARIFICATION.
THERE'S A REFERENCE IN THE, UH, TERM SHEET TO THE HIP.
UH, PAGE EIGHT CONTRIBUTIONS FROM THE ECHO CONTRIBUTION PARTY WILL BE CONTRIBUTED TO THE HIP.
WE MIGHT NEED SUMMER FOR THIS ONE.
THINK SO THAT AN ADDITIONAL PARCEL.
YOU MENTIONED THE OTHER PARCEL OF LAND RETAIL PART SUMMER.
CAN YOU, ON THAT TERM, THE MOU, I NOTICED IT WAS HIGHLIGHTED AS WELL.
I, I DIDN'T KNOW IF WANTED IT TO STAY HIGHLIGHTED OR WHAT, WHEN SENT IT OVER.
UM, I, I THINK THAT THAT WAS IN THE VERSION THAT WAS SENT TO US FROM THE DEVELOPER.
AND SO THAT'S THE REASON THAT IT'S HIGHLIGHTED.
FOR CLARIFICATION, THERE, THERE'S NO HIP RELATED EQUITY OR HIP RELATED ITEMS, UM, OR ACRONYM THAT I CAN, I CAN THINK OF.
IT'S NOT CAPITALIZED OR, SO THAT'S WHY IT KIND OF STICK OUT, UM, SLIGHTLY.
I, I, I THINK THIS IS A GOOD PROJECT.
UM, I'M JUST CURIOUS, AND I FEEL SOMEWHAT
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OBLIGATED TO ASK THE QUESTION THAT, UM, REFINANCING THE CAPITAL EVENT RENT, UH, REFERENCES THE 12, THE 12% RETURN, THE EQUITY PARTNER.AND AFTER YOU CONSIDER THAT HIGH, CAN YOU TELL ME WHY THE NUMBERS 12% AND NOT A LITTLE HIGHER? IT COULD BE RISKS.
I USUALLY HEAR THE ANSWER IS USUALLY RISK, AND YOU JUST HAD A GOOD DISCUSSION ABOUT POSSIBLE RISKS, WHAT YOU'VE BEEN LOOKING AT HERE, BUT I THOUGHT, WHY THAT, WHY IT'S 12% IN THIS CASE, AND THEN MAYBE STOP AND SAY WHY 12%? SO, RIGHT.
UM, SO THAT IS IN LINE WITH, UH, THE CAPITAL CONVERSATIONS OF THE FRONT END HERE.
MY PRIORITY WAS TO PRESENT TERMS THAT I HAVE CONFIDENCE HE GETS THE FINISH LINE RATHER THAN REVISITING LAUREN ON A CHANGE LATER.
UH, AND WITH EQUITY CONVERSATIONS, IT STARTED A LOT HIGHER THAN THAN 12%.
UH, FRANKLY, MITCH, I, I, I TURNED INTO AN 18% REQUEST.
UH, AND I WON'T SAY IT GOT WHITTLED DOWN, BUT WE, WE NEGOTIATED TO 12%, UH, OR, OR MOVED IT TO 12%.
I, I CAN ADD TOO, WE KIND OF MADE UP WITH THAT ON THE BACK END.
SO 2%, UM, SALARY FINANCE DUE OF THAT TWO POINT HALF PERCENT.
SO WE'RE KIND OF TIP THE FACT THERE.
WELL, AND AND, AND AHEAD, SIR.
UH, I WAS JUST GONNA SAY, AND, AND THE OTHER THING TO, TO NOTE, UM, AND THIS WAS SOMETHING THAT I THINK THAT, YOU KNOW, PROBABLY IS WORTH NOTING GENERALLY, IS THAT THERE ARE A FEW TERMS ON THIS PROJECT WHERE WE'VE DEVIATED BASED UPON, UM, HUNT'S FEEDBACK, YOU KNOW, THAT THAT EQUITY HAS BEEN DIFFICULT, UH, ON THESE PROJECTS SINCE THE, THE LEGISLATURE, UM, MADE THOSE RETROACTIVE CHANGES, UH, FOR THE HFC PROGRAM.
WE WERE ALSO GETTING A HIGHER THAN USUAL STRUCTURING FEE.
SO IT'S, UM, 300,000 INSTEAD OF 250 AT CLOSING.
NOTICE THAT, YEAH, I MEAN, I JUST IN GENERAL, YOU KNOW, WE WANT EVERY PROJECT TO WORK, BUT ALSO WE DON'T WANT TO SET PRECEDENCES THAT SAY, HEY, FOR THESE GUYS, DON'T YOU DO IT FOR US? AND SO ANY KIND OF, I GUESS, CONCESSION THAT WE CAN TRY TO GET SOMETHING ELSE SOMEWHERE THAT YOU CAN TAKE UP THAT OR, YOU KNOW, IN TERMS OF AFFORDABILITY, IF IT'S GREATER AFFORDABILITY OR SOMETHING ELSE, YOU KNOW, BECAUSE AGAIN, WE DON'T WANNA BE UNRESPONSIVE TO MARKET CONDITIONS TO THE NEXT SCALE HERE.
YOU KNOW, WE WE'RE TRYING TO BE A VERY NIMBLE ORGANIZATION, BUT ALSO WE HAVE A, A DUTY TO THE PUBLIC TO PROTECT THOSE INTERESTS OF, OF THOSE TAXES.
AND SO, YOU KNOW, WE HAVE TO HOLD THEM, THE DEVELOPERS ACCOUNTABLE FOR EVERYTHING THAT, WELL, MY QUESTION CERTAINLY ANSWERED.
YES, DIRECTOR LOMBARDI, NICE TO MEET YOU.
IT SOUNDED LIKE THE, THE TARGET DEMOGRAPHIC WAS GONNA BE THE MEDICAL PROFESSIONALS NEARBY.
AND, UM, DO YOU, DID YOU GUYS RUN NUMBERS OR RESEARCH HOW THEY FIT INTO THE A MI SCHEDULE? ARE THEY GONNA EAT UP YOUR MARKET RATE? ARE THEY GONNA BE, DO YOU KNOW THE ANSWER OF THAT FOR TARGET THEM? BUT WE ALSO HAVE THESE SET THRESHOLDS FOR THE 60, 80%.
DO YOU KNOW HOW THEY'LL FIT INTO THAT? YES.
I APPRECIATE YOU ASKING THAT QUESTION.
UM, SO THERE'S A HUGE RANGE OF MEDICAL THRESHOLDS, RIGHT, ALL THE WAY FROM FIRST YEAR, SECOND YEAR RNS TO, YOU KNOW, THE 10 YEAR PLUS RNS, UH, TO, UH, THE MEDICAL EXAMINERS, TO ACTUAL PHYSICIANS.
AND SO JUST IN THAT, THE ECOSYSTEM OF MEDICAL WORLD, LIKE IT'S THE FULL, THAT'S EXACTLY THIS AS WELL AS THE ADMINISTRATORS AT LOVE FIELD.
UM, AND SO THE RNS PERFECTLY FIT BOTH THE 60 AND THE 80%.
UH, AND I THINK, YOU KNOW, GENERALLY WHEN PEOPLE TALK ABOUT, OH, MISSING MIDDLE DO TODAY, YOU KNOW, IT'S TEACHERS, FIREFIGHTERS, NURSES, UM, IS JUST THE GENERAL, THE GENERAL STATEMENT.
UH, BUT YES, WE ACTUALLY SPECIFICALLY ANALYZED THAT QUESTION, UM, AND ALSO WORK NOTING THE, THE CURRENT LARGEST PROJECT BESIDES THE CONVENTION CENTER HAPPENING IN THE CITY OF DALLAS IS THE PEDIATRIC HOSPITAL.
UM, YOU SHOULD GO DRIVE OUT THERE.
IT'S ONE ONE MILE FROM THE SIDE.
I'VE NEVER SEEN SO MANY CRANES IN MY LIFE.
IT'S A, IT IS A $5 BILLION COMPLEX, UM, TO BRING, I BELIEVE 2 MILLION SQUARE FEET OF, FOR THE CHILDREN HOSPITAL, PEDIATRIC CAMPUS.
UM, AND SO DELIVERING THIS HOUSING IN LINE WITH THAT, UM, I THINK IT'S GONNA BE REALLY REAL TIME.
UM, BUT HOPEFULLY, YEAH, NO, THAT'S GOOD.
ANY OTHER COMMENTS, QUESTIONS, UH, MAR? YEAH, THANK YOU GUYS FOR PRESENTING.
UH, I JUST LIKE TO SAY I AM A, I'M A BOARD
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WITH THIS PROJECT.I, UM, AGAIN, COMMISSIONED FOR DISTRICT SIX, SO WE SIT CLOSELY TO DISTRICT TWO AND WE LOOKED AT OUR PROJECTS THAT ARE BEING DONE AND ALSO DISTRICT TWO, SO THERE'S NOT A BIG CONCENTRATION IN THAT AREA.
SO THAT IT'S A BENEFIT THAT I ENJOY JUST BECAUSE I KNOW MY CUSTOMER IS NOT SOMEONE THAT IS LOOKING AT CONCENTRATING ALL IN ONE LOCATION.
SO THIS IS GOOD TO BRING AFFORDABILITY, BUT THEN TWO, UM, THE CLIENTS THAT WE'RE LOOKING AT SERVING, I KNOW WE TALKED ABOUT THE MEDICAL DISTRICT, BUT ALSO TEACHERS IN THE AREA.
THERE'S A FEW DID SCHOOLS AND OTHER SCHOOLS IN THAT AREA THAT CAN QUALIFY FOR 80% A MI OR MARKET RATE, BUT ALSO FIRST RESPONDERS, LIKE COPS, UM, YOU KNOW, UM, FIREFIGHTERS AND, AND WHATNOT.
SO JUST WANNA MAKE SURE I'M AWARE, LET YOU GUYS KNOW THAT I, I DID LOOK INTO THIS PROJECT AND I'M EXCITED ABOUT IT.
HOPEFULLY WE WE'RE ABLE TO PUSH IT THROUGH AND GOOD LUCK.
DIRECTOR MARQUEZ? YES, DIRECTOR MONTGOMERY.
UM, SO FIRST OF ALL, THANKS HAN.
UM, AND, UH, I APPRECIATE THE, THE PROJECT.
UM, VICTOR, THANK YOU FOR POINTING OUT THAT THAT OTHER, UH, PROJECT THAT WE, UH, THAT WE'VE APPROVED, THAT'S BECOMING A DATA CENTER.
I WAS CURIOUS ABOUT THAT BECAUSE I THINK, UM, UH, PROXIMITY IS, IS ONE OF MY CONCERNS, UH, JUST OVERALL PROXIMITY OF OTHER, UH, PFC SITES.
SO IT'S GOOD THAT THERE'S NOTHING AROUND HERE.
UM, YOU MENTIONED SOMETHING REALLY IMPORTANT HUNT THAT I JUST WANNA HIGHLIGHT, WHICH IS THE TIMING OF THIS.
UM, FOR THE PROFESSIONALS IN THE ROOM, THEY, THEY KNOW INTUITIVELY THAT, UM, RENTS HAVE, UM, AREN'T GROWING LESS FAST
UM, AND IT'S A, IT'S A DIFFICULT MARKET, UM, TO HEAD INTO.
BUT THE PROBLEM IS, IF WE DON'T CONTINUE TO CREATE UNITS, WE'RE GONNA HAVE THE SAME PROBLEM WE HAD THREE OR FOUR YEARS AGO AGAIN.
AND SO EVEN WHEN WE LOOK AT THESE, AND I, YOU KNOW, BEHIND, I, I COULD ASK A, A PROBABLY A HUNDRED QUESTIONS ABOUT COMPS.
UM, BUT WHEN, WHEN WE LOOK, UM, AT THESE, IT'S IMPORTANT TO, TO RECOGNIZE THAT CONTINUING TO ADD HOUSING UNITS IS THE MOST IMPORTANT THING.
UM, AND, UH, AND THE RENTS, I MEAN, FRANKLY, SUPPLY EQUAL, UH, UH, UH, SMALLER RENTS.
AND SO, UH, THANK YOU FOR, FOR BRINGING THIS.
I JUST WANTED TO POINT THAT OUT BECAUSE I, I THINK IT IS A, IT'S A DIFFICULT LEGAL RENT, UH, BECAUSE WE'RE AT A POINT WHERE SOMETIMES WHEN YOU COMPARE THESE, UM, THEY DON'T LOOK AS, THERE'S NOT AS MUCH DIFFERENTIAL, UM, AS THERE WAS 18, 24 MONTHS AGO.
UM, BUT IT'S STILL AN ACUTE NEED.
AND, UH, SOMETIMES WE HAVE TO KIND OF PUSH PAST THE NUMBERS.
THESE, THESE NUMBERS ARE, ARE GREAT.
I MEAN, IT TERRIFIC UP, UP BENEFIT BACK TO THE CITY.
MOST IMPORTANTLY, STOP PRODUCING HOUSING USE.
SO, UH, TIMING'S REALLY, REALLY IMPORTANT.
I WOULD ADD TO THE DIRECT MONTGOMERY'S COMMENTS.
IT'S NOT ALWAYS JUST ABOUT RENT DISCOUNTS.
SOMETIMES, LIKE IN THIS AREA IN PARTICULAR, UH, IF YOU'VE DRIVEN DOWN THAT AREA OF MOCKINGBIRD, THEY'RE REALLY IN THE PROCESS OF KNOCKING DOWN ALL THE OLD OFFICE BUILDINGS AND ALL THE SEVENTIES, EIGHTIES PRODUCT THAT'S BEEN COME OBSOLETE.
NOW IT'S JUST KIND OF A LY HAZARD, RIGHT? SQUATTERS THEY TAKE OVER OR JUST FALLING INTO
SO THIS, THIS IS ONE OF THOSE CASES WHERE THEY KNOCKED DOWN THE BUILDING AND THERE'S NOTHING THERE.
YOU KNOW, WHAT DO WE WANT THERE, RIGHT? SO, UH, I'M GLAD HE WANTED TO TALK TO COUNCIL UNDER
ARE, ARE THE ENTITLEMENTS IN PLACE, OR IS IT SB EIGHT 40? EITHER WAY, THEY'RE IN PLACE.
IT'S, IT IS BU THREE SEVEN, SO YOU COULD GO EVEN HIGHER IF YOU RIGHT.
ANY OTHER QUESTIONS OR COMMENTS FROM FOUR OR ONLINE? ITEM NUMBER SEVEN, SEEING NONE, DO WE HAVE A MOTION FOR ITEM NUMBER SEVEN? I'M
MOTION, UH, TO APPROVE BY MADE BY DIRECTOR MARQUEZ, THE SECOND BY DIRECTOR MONTGOMERY.
SECOND BY DIRECTOR MONTGOMERY.
ALRIGHT, ALL ITEM NUMBER SEVEN, SCOTT HANSEL, A STACEY MARSHALL APPROVED RONALD STINSON APPROVED.
BRIAN BLANKENSHIP APPROVED CHRISTIAN MARQUEZ.
[00:35:02]
JASON BROWN.LET THE RECORD REFLECT WITH ALL ATTENDEES.
UH, THE MOTION PASSES 14 TO NOTHING UNANIMOUSLY.
MOVING ON UNDER EIGHT, DISCUSSION AND APPROVAL OF RENEGOTIATED TERMS FOR THE FINCH LOCATED AT 17TH 10 MORRELL AVENUE, DALLAS, TEXAS 7 5 2 0 4, AND DISTRICT FOUR.
AARON, THANK YOU FOR COMMON CALL.
SO I JUST WANNA PREFACE THIS ONE, UH, CAME MY ATTENTION YESTERDAY THAT IT MIGHT HAVE BEEN A LITTLE CONFUSION AS TO WHAT ACTUALLY WE'RE APPROVING HIM.
SO, UH, TO CONFIRM THIS WITH SUMMER TECHNICALLY, AND, UM, YOU ALL, OR TECHNICALLY YOU DON'T HAVE TO APPROVE ANYTHING, WHAT THIS, UH, RENEGOTIATION HAS ALREADY APPROVED IN THE TERMS OF THE LEASE AND WHAT WAS IN THAT LETTER DESCRIBING WHAT, UH, MR. HANSEN IS REQUESTING, THAT'S ACTUALLY NOT FINALLY WHAT WE AGREED TO.
SO WHAT WE DID AGREE TO WAS JUST AN AD DEFERRAL OF HIS FEES THAT ARE OWED TO THE, UH, PFC UNTIL THE CASHFLOW THAT THE PROPERTY CAN SUPPORT THE, UH, OUTLINE FEES.
SO TECHNICALLY WE DO NOT HAVE TO MODIFY THE LEASE OR ANY TERMS. IT'S REALLY JUST A, NOT A COURTESY, BUT A NOTIFICATION TO YOU ALL SAY, HEY, THIS PROPERTY IS NOT GETTING WHERE WE INITIALLY PROJECTED WHEN WE UNDERWROTE IT NOW ALMOST THREE YEARS AGO.
AND SO THEY NEED A LITTLE BIT OF RELIEF TO KIND OF CATCH UP WITH THE MARKET AND THE LEASE ALREADY ALLOWS FOR THAT.
AND SO ANYTHING THAT YOU ALL AGREED TO,
AND WITH THAT SUITE, UH, HAS BEEN NICE TIME TO COME AND THEN EXPLAIN WHAT'S HAPPENING AT THE PROPERTY, WHY, WHY IT WAS MAKING THIS AS, AND, UH, WHAT WE'RE GONNA DO.
IT'S NOT AN ASK, I GUESS I'LL JUST CLARIFY.
I'LL JUST CLARIFY REAL QUICK THAT, DID YOU SUMMER CLARIFY THIS PLEASE? SURE.
THERE'S NOT REALLY A NEED FOR ANY ACTION.
THIS IS MORE OF A BRIEFING AND DISCUSSION ITEM.
UM, SO THERE'S NOT NECESSARILY ANY ACTION THAT THE BOARD NEEDS TO TAKE.
THERE'S NO APPROVAL THAT NEEDS TO HAPPEN.
SO THIS IS JUST MORE OF AN UPDATE FOR YOU GUYS TO, UM, KNOW WHAT'S GOING ON AT THE PROPERTY AND THEN IF ANY DISCUSSION OR IF THERE IS ANY DIRECTION, UM, THAT WE NEED TO TAKE AFTER THAT, WE CAN'T, BUT THERE'S NOT REALLY AN APPROVAL THAT'S NEEDED.
WELL, THAT JUST, SO THAT DID CONFUSE ME TOO, BECAUSE IT DOES SAY IN THE AGENDA DISCUSSION AND APPROVAL, RIGHT? THAT SO THAT THAT SHOULD, THAT SHOULD NOT HAVE BEEN WORDED THAT WAY.
THAT'S WHAT, THAT'S WHAT YOU'RE SAYING SUMMER.
DO YOU YEAH, WELL, NO, DO YOU WANNA TAKE IT? YEAH, YEAH.
I, WE CAN, I THINK I UNDERSTAND THE KIND OF CONFUSION, UM, AROUND WHAT WE ORIGINALLY PUT FORWARD AS A ACTUAL REQUEST, BUT AS WE, AS COMMUNICATED WITH, UM, STAFF ABOUT IT, IT'S, IT APPEARS LIKE THE ACTUAL LEASE AGREEMENT ALLOWS FOR, UM, WHAT WE ARE ASKING UNDER THE VISITING TERMS OF THE LEASE.
AND SO WHAT I'M HERE TO DO IS, ONE, BRIEF YOU AS TO WHERE WE ARE, HELP YOU UNDERSTAND WHY.
AND, YOU KNOW, IT HAD BEEN AT LEAST ALLOW YOU TO HAVE THE OPPORTUNITY TO ACKNOWLEDGE, OR FOR US TO PUT ON RECORD THAT WE PRESENTED SOMETHING TO YOU SO THAT YOU HAVE AN UNDERSTANDING AS TO WHERE WE ARE.
SO SIMPLY PUT, JUST TO KIND OF CATCH UP, I WANTED TO LET Y'ALL KNOW, UM, AGAIN, THREE YEARS AGO WE CAME HERE, WE WERE APPROVED, UM, FOR A PROJECT THAT'S NOW THE VINTAGE.
IT'S THE A OUR, OUR MISSION IS SIMPLY PUT A WELL-DESIGNED HIGH QUALITY APARTMENT IN DALLAS WITH NATURAL AND SERENE SURROUNDINGS THAT HELP YOU INSPIRE TO ACHIEVE YOUR PURPOSE-DRIVEN GOALS.
THAT'S HOW WE APPROACH THE MARKET.
WE ARE THE FIRST NON LITECH, UH, MULTIFAMILY DEVELOPMENT IN THE CEDAR CREST NEIGHBORHOOD.
AND LIKELY EVEN WITHIN DISTRICT FOUR, IT USED TO STAY CONFIDENTLY THIS DISTRICT FOUR.
BUT I KIND OF BACKED OFF THAT A LITTLE BIT, BUT I CAN'T SPEAK CONFIDENTLY IN THAT.
WE WERE THE FIRST NON-TECH PROPERTY IN THE CEDAR CREST NEIGHBORHOOD WITHIN DISTRICT FOUR.
[00:40:01]
THE SUPPORT OF BOTH THE PREVIOUS COUNCIL, UH, WOMAN, AND WE HAVE THE SUPPORT OF THE CURRENT COUNCIL MEMBER.UM, MAXIE JOHNSON, LOCATED 17TH 10 RAIL AVENUE, JEFF EAST TO THE DALLAS ZOO IN THE BEAUTIFUL NEIGHBORHOOD, THE WOODED NEIGHBORHOOD OF CEDAR CREST.
WE COMPLETED THE PROJECT ON BUDGET, DESPITE A HANDFUL OF CHALLENGES THAT WE HAD, WE PROUD TO SAY THAT WE COMPLETED IT ON BUDGET.
WE OPENED FOR BUSINESS IN MAY OF 2025, AND CURRENTLY WE'RE A LITTLE SLIGHTLY OVER 30% PRE-LEASE AS OF YESTERDAY.
UM, SO AS, AS YOU'VE HEARD A LITTLE BIT, THERE'S BEEN A NOTICEABLE SHIFT IN THE MARKET FROM WHEN WE FIRST STARTED.
UM, WHETHER IT'S UNDERWRITING THE PROJECT OR WE BROKE GROUND, THAT'S CREATED A CONSIDERABLE HARDSHIP AT THE PROPERTY.
BUT BEFORE WE GET TO THAT, I WANTED TO ACTUALLY GIVE YOU A LITTLE BIT OF A VISUAL OF WHAT YOU ALL MADE POSSIBLE.
'CAUSE YOU PROBABLY HAVE NEVER SEEN THAT.
SO THIS IS A BEAUTIFUL AERIAL VIDEO THAT WE DID PUT TO SOME EMOTIONAL HEART TUGGING MUSIC, AND I'LL LET YOU WATCH IT.
SECOND VERY CONSIDERABLE DELAY.
OR MAYBE WE'LL JUST SKIP OVER IT AND WE'LL LOOK AT IT LATER.
IS IT, IS IT NOT THAT NO, IT'S, BUT THAT, THAT'S FINE.
UM, IT'S LOOKING GOOD OVER HERE, HERE.
CAN WE KEEP IT JUST PLAIN? A FEW, FEW VISUALS THAT WE'RE KIND OF JUST SKIPPING THROUGH IN LOSE THE EFFECT OF THE EMOTIONAL HEART TUGGING, UH, MUSIC THAT GOES ALONG WITH IT.
BUT I THINK WHAT WE'RE TRYING TO, WHAT WE'RE TRYING TO SHOW YOU HERE IS THAT WE MADE SOMETHING YOU GUYS MADE POSSIBLE.
SO FOR US TO MAKE SOMETHING THAT IS BEAUTIFUL AND IS ACTUALLY ADDED CONSIDERABLE VALUE, UM, IN THE CEDAR CREST NEIGHBORHOOD.
AND AS I SAID, SO AS I SAID EARLIER, UM, THE CURRENT, UH, HARDSHIP THAT THE PROPERTY IS, IS EXPERIENCING RIGHT NOW IS, IS I WOULD SAY A LARGE MAJORITY OF IT IS MARKET DRIVEN.
UM, WE ARE IN THE WORST LEASING ENVIRONMENT IN 15 YEARS.
AND THAT'S NOT FROM SWEET HANSEN.
THAT'S FROM RESPECTED MARKET REAL ESTATE, MULTIFAMILY, ECONOMIST, JAKE PARSONS, WALL STREET JOURNAL, ET CETERA.
UM, THE SUMMER OF 2025 WAS THE WEAKEST SINCE THE GFC WITH NEWLY BUILT PROPERTIES, THE MOST NEGATIVELY AFFECTED.
AGAIN, THAT'S NOT FROM ME, THAT'S FROM WELL RESPECT MULTI-FAMILY.
UM, ECONOMIST DEPARTMENTS ARE SITTING LONGER THAN THEY WERE IN 2024.
AND THEN THE FINCH RENTAL RATES HAVE BEEN FALLING SHORT OF PROJECTIONS.
SO WE'RE DOWN FROM WHEN THE PROPERTY WAS ORIGINALLY APPROVED TO WHERE WE ARE CURRENTLY NOW ABOUT 7%.
UM, AND THEN ALSO OUR LEASE UP PACE HAS BEEN CONSIDERABLY BELOW PROJECTIONS.
I THINK WHEN WE ORIGINALLY UNDERWROTE THE PROJECT, WE WERE ANYWHERE BETWEEN 15 TO 20%, 20 LEASES PER MONTH.
A TYPICAL HEALTHY MARKET WILL ALLOW YOU TO LEASE ANYWHERE BETWEEN 20 TO 30 UNITS A MONTH.
UM, DURING THE LEASE UP, WE'RE RIGHT NOW AVERAGING ROUGHLY EIGHT IN A MONTH.
WE PROBABLY SAY THAT WE ACTUALLY DID 14 LAST MONTH, BUT THAT'S MAINLY BECAUSE WE'VE HAD TO BE VERY AGGRESSIVE.
AND AGAIN, UM, YOU KNOW, I THINK ONE THING THAT I'D LIKE TO ADD IS THAT, UM, YOU KNOW, WE TOOK A CALCULATED RISK OF BEING ONE OF THE FIRST NON-LINE TECH PROPERTIES IN DISTRICT FOUR.
WE BELIEVE IN THE NEIGHBORHOOD.
WE UNDERSTAND THAT IT WAS A SLIGHTLY PIONEERING LOCATION.
WE TOOK INCREMENTAL RISK ON LOCATION THAT WE HAD MITIGATED UPFRONT.
WE OBVIOUSLY RAISED THE DEBT, WE RAISED THE EQUITY.
SO PEOPLE BELIEVE IN WHAT WE WERE DOING THERE.
UM, BUT OBVIOUSLY YOU CAN'T FULLY PROVE OUT A MARKET'S ACCEPTANCE OF SOMETHING UNTIL YOU'RE ACTUALLY OUT THERE IN THE MARKET TESTING IT.
THE CHALLENGE THAT WE'RE SEEING RIGHT NOW IS TRYING TO DETERMINE IS THAT CALCULATED RISK THAT WE TAKE IN THE EFFECTS THAT IT'S HAVING ON LEASING BECAUSE WE'RE EAST OF 35, OR IS IT JUST GENERALLY BECAUSE OF THE BROADER MARKET RIGHT NOW? I WOULD SAY THAT THERE'S A LOT OF, WHAT'S NEGATIVELY AFFECTING US IS BECAUSE OF THE BROADER MARKET, BECAUSE THE, THE CHALLENGES THAT WE'RE SEEING ARE THE SAME CHALLENGES THAT OUR PEERS ARE SEEING ON THE WEST SIDE OF THE 35.
AND SOME OF THOSE PROJECTS ARE ACTUALLY PFC PROJECTS AS WELL.
WHETHER IT'S OAK HOUSE OR SAVOY PROPERTIES, WE'RE ALL COMPETING FOR THE SAME TENANT.
AND WE'RE ALL OFFERING, YOU KNOW, CONSIDERABLE DISCOUNTS TO RENT AND CONCESSIONS, YOU KNOW, SOME OF WHICH IN THE MARKET I'VE SEEN PREVIOUSLY DURING THE PEAK LEASING SEASON IS OFFERING THREE TO $6,000, EXCUSE ME.
THREE TO $6,000 IN GIFT CARDS IN ORDER TO INCENTIVIZE LEASING.
NOW WE DON'T HAVE THAT CAPITAL TO DO THAT, BUT YES, WE ARE BEING AGGRESSIVE.
WE HAVE TO ORDER TO GET THE APARTMENT FILLED.
WE DID THIS PROJECT TO BE A CATALYST TO PROVE THAT VIBRANT, WELL DESIGNED HOUSING AS POSSIBLY AS POSSIBLE IN HISTORICALLY UNDERSERVED COMMUNITIES.
WE ARE DOING THAT IN DISTRICT FOUR.
AND I'M, AND I'LL, AND I'LL SHOW YOU HERE IN A SECOND, MARKET ACCEPTANCE OF MIXED INCOME HOUSING.
35 HAS BEEN SLOWER THAN WE ANTICIPATED.
AGAIN, WE TOOK A CALCULATED RISK AND THE MARKET IS TELLING US RIGHT NOW THAT YES, MAYBE
[00:45:01]
THERE IS SOME HESITATION TO LIVING EAST OF 35.IT'S HARD TO ACTUALLY, UM, PINPOINT EXACTLY WHAT IT IS BECAUSE OF WHAT'S GOING ON IN THE BROADER MARKET.
DRIVE-BY TRAFFIC HAS BEEN LIMITED AND LARGELY UNQUALIFIED.
A LOT OF THE INITIAL LEASE UP MOMENTUM AND VELOCITY COMES FROM JUST THE GENERAL CHURN IN THE MARKET AND OTHER PEOPLE LEAVING AND DRIVING BY WHERE WE ARE LOCATED.
MOST OF OUR DRIVE-BY TRAFFIC IS FROM LITECH LOWER SECTION EIGHT, UM, HOUSING PROPERTIES IN THE NEIGHBORHOOD.
AS A RESULT, UM, A LOT OF THE PEOPLE THAT EXPRESSED INTEREST IN OUR PROPERTY HAVE FOR CREDIT QUALITY, UM, EVICTION HISTORY OR RENTAL DEBT HISTORY.
SO OUT OF THE 70 SOMETHING PEOPLE THAT WERE EXPRESSED AN INTEREST IN OUR PROPERTY, UM, THROUGH, UH, THE END OF OCTOBER WHEN I SUBMITTED THIS APPLICATION, UH, OVER 50% OF THOSE, UM, INTERESTED PARTIES WERE UNQUALIFIED BECAUSE OF AN EVICTION OR RENTAL DEBT HISTORY.
OF THE 33 PEOPLE THAT, EXCUSE ME, OF THE 50 THAT ACTUALLY APPLIED TO BE A RESIDENT AT THE FINCH, OVER A THIRD OF THEM WERE DENIED BECAUSE OF THE RENTAL DEBT HISTORY.
ONE OF THE BIGGEST CHALLENGES THAT WE HAVE RIGHT NOW IS FRAUD, UM, IN LEASING AND EVICTION HISTORY.
AND SO THIS IS A WHOLE NOTHER TOPIC FOR ANOTHER TIME ABOUT HOW DO WE PROVIDE HOUSING FOR PEOPLE AND BEING ON MY SOAPBOX, WE COULD ADD UNIT AFTER UNIT AFTER UNIT, BUT IF WE CAN'T LET RENT A UNIT TO A, YOU KNOW, TO A TENANT THAT'S UNQUALIFIED, THOSE PEOPLE WILL STILL REMAIN OUT THERE WITHOUT HOUSING SOLUTIONS.
BUT THAT'S WHAT WE'RE SEEING RIGHT NOW.
AND THAT'S SOMETHING I'VE LEARNED FROM MY EXPERIENCE RIGHT NOW, UM, WORKING WITH THE, UM, WITH THE PROJECT.
BUT REGARDLESS OF THE CHALLENGES, WE ARE VERY PROUD OF OUR INVESTMENT THINGS THAT WE'VE DONE WITHIN THIS PROJECT THAT YOU ALL HAVE MADE POSSIBLE.
WE'VE HIRED LOCAL CRAFTSMEN TO DO WORK ON THE PROJECT.
IF YOU SAW SOME OF THOSE WOOD ACCENT PIECES IN THE TRELLIS THAT WE PUT IN THERE, THOSE WERE HANDMADE BY A LOCAL CRAFTSMEN.
ALL OF OUR UNIT NUMBERS WERE HANDMADE FROM TREES TAKEN FROM THE PROPERTY BY A LOCAL CRAFTSMEN.
WE'VE HOSTED COMMUNITY EVENTS IN COLLABORATION WITH LOCAL NONPROFITS.
WE PARTNERED WITH THE LOCAL OAK CLIFF NONPROFIT TO HOST AN ART GALLERY EVENT AT OUR PROPERTY WHEN WE FIRST OPENED UP THE PROJECT.
WE'VE ALSO PARTNERED WITH LOCAL SPAY AND NEUTER, UM, NONPROFITS TO PROMOTE, UM, SPAY FREE SPAY AND NEUTER TO THE DISTRICT FOUR NEIGHBORHOOD.
AND BECAUSE OF OUR LOCATION THERE, THAT SERVICE WAS OFFERED TO DISTRICT FOUR.
UM, WE WERE AN ACTIVE MEMBER OF THE CEDAR CREST NEIGHBORHOOD ASSOCIATION.
WE GO TO THE MEETINGS, WE SHOW UP.
OUR PROPERTY MANAGER ACTUALLY GRADUATED FROM SOUTH OAK CLIFF AND IS A MEMBER OF SMITH CHAPEL, A ME, WHICH IS ONE OF THE LOCAL AFRICAN AMERICAN CHURCHES IN THE CEDAR CREST NEIGHBORHOOD.
AND, YOU KNOW, AGAIN, WE HAVE A FIVE STAR GOOGLE REVIEW RATING THAT WE NEVER PAID FOR, ONE NEVER PAID, INCENTIVIZED.
ONE OF THE REVIEWS, WE HAVE A FIVE STAR RATING FOR 29 REVIEWS, WHICH OUTPERFORMS ALL OF OUR PEERS IN OUR SUB MARKET RIGHT NOW.
AND SO, UM, AGAIN, WE ARE SUPER PROUD OF OUR INVESTMENT, BUT DON'T LISTEN TO ME AND WHAT WE'RE DOING.
I WANT YOU TO LISTEN TO SOMEONE FROM THE NEIGHBORHOOD AND ALLOW ME TO READ THIS.
HE'S THE VICE PRESIDENT OF THE CEDAR CREST NEIGHBORHOOD ASSOCIATION.
UM, HE IS WELL VERSED IN, UM, IN THE CITY.
HE'S VERY ACTIVE IN HIS NEIGHBORHOOD.
HE CAME TO ME AND SAID, SWEET, WHAT CAN WE DO TO HELP? AND I SAID, WE WERE GETTING READY TO TALK TO TRANSPORTATION ABOUT SOMETHING.
I SAID, IT WOULD BE GREAT IF YOU WOULD WRITE A LETTER OF RECOMMENDATION TO SUPPORTING US.
DIDN'T GIVE HIM ANY GUIDANCE FOR WHAT IT WAS.
HE WROTE A ONE PAGE LETTER, SIGNED IT WITH HIS, WITH HIS PEN, AND GAVE IT TO ME.
AND THIS IS ONE OF THE THINGS THAT I WANNA SHARE WITH YOU.
THIS PROJECT REPRESENTS AN IMPORTANT OPPORTUNITY FOR CEDAR CREST BY INTRODUCING NEW HOUSING OPTIONS THAT STRENGTHEN THE FABRIC OF OUR NEIGHBORHOOD.
THE ADDITION OF HIGH QUALITY RESIDENTIAL UNITS WILL HELP MEET THE GROWING DEMAND FOR HOUSING WHILE SUPPORTING THE LONG-TERM VITALITY AND LIVABILITY OF THE AREA.
THE FINCH ALIGNS WITH OUR SHARED COMMITMENT TO THOUGHTFUL COMMUNITY ORIENTED DEVELOPMENT THAT RESPECTS THE CHARACTER AND IDENTITY OF CEDAR CREST.
AND GUYS, THAT'S ONE OF THE REASONS WHY I DO WHAT I DO, IS, IS BECAUSE OF THAT FEEDBACK.
AND AGAIN, THIS IS A PROJECT THAT HAS MADE POSSIBLE.
I CAN'T CONTROL WHAT'S GOING ON IN THE MARKET, BUT I CAN'T CONTROL THE WAY THAT WE INTERACT WITH THE NEIGHBORHOOD.
AND, AND I THINK THAT WHAT MR. BROWN PUT THERE IS, IS, IS INDICATIVE OF THAT.
AND SO ONE THING I'D LIKE TO ALSO SHOW IS THAT YEAH, LOOK, DO I LIKE STANDING UP HERE AND TELLING YOU THAT WE ARE UNDERPERFORMING WHERE WE PROJECT WHAT WE SAID? NO, I DON'T.
DO I LIKE IT THAT I HAVE TO TALK TO ALL MY EQUITY PARTNERS AND TALK TO MY LENDER THAT RENTS ARE 6% BELOW.
WERE WE UNDER RENT UNDER ROAD THE PROJECT? NO.
AM I PROUD TO SAY THAT WE ACCOMPLISHED A LOT OF CHALLENGE? OH, CAME A LOT OF CHALLENGES IN ORDER TO COMPLETE THE PROJECT ON, ON BUDGET.
THERE WAS A LOT THAT WAS, YOU KNOW, MOVING AGAINST US AND THAT IN THAT WAY.
UM, BUT WHAT I ALSO THINK IS IT'S IMPORTANT TO, TO SHOW COMMITMENT TO IT AND NOT ONLY HAVE MY PARTNERS SHOWN COMMITMENT TO IT, BUT I'D LIKE TO SAY THAT, UM, I'VE ALREADY, I MYSELF HAVE SH I'D LIKE TO, YOU KNOW, SHOW SHOWN A COMMITMENT TO THE PROJECT AS WELL.
IN THAT SMART LIVING RESIDENTIAL, WE HAVE DEFERRED,
[00:50:01]
UM, 12, ALMOST 13 MONTHS.A DEVELOPER FEE IS HOLDING NEARLY $600,000 THAT HAS BEEN DEVELOPER FEE THAT'S BEEN EARNED, THAT COULD BE TAKEN AND PUT IN OUR POCKET AND USED FOR PRE-DEVELOPMENT EXPENSES, NOT THE JOBS.
INSTEAD, UM, I FELT THAT IT WAS APPROPRIATE AND PRUDENT TO PUT MY MONEY WHEN THE MOUTH IS AND RESERVED THOSE DOLLARS FOR FUTURE CARRY COSTS, INTEREST, EXPENSES, MARKETING IN ORDER TO HELP US ACHIEVE THE PROJECT THAT WE SET OUT TO DO.
AND SO, UM, YOU KNOW, WITH THAT, AGAIN, WE KIND OF TALKED BRIEFLY.
I'M HAPPY TO CHAT A LITTLE BIT MORE OR ANSWER ANY QUESTIONS.
REALLY, WHAT I'M JUST HOPING IS, IS THAT BASED ON SOME OF THE NEW GUIDANCE THAT WAS PROVIDED BY AARON AND, AND SUMMER, THAT THE BOARD WOULD, YOU KNOW, AT LEAST ACKNOWLEDGE THE PROPERTY'S CHALLENGES AND THE CURRENT PERFORMANCE AND, YOU KNOW, OUR REQUEST FOR, YOU KNOW, SOME SORT OF, UM, YOU KNOW, JUST SAY ACKNOWLEDGE WHAT WE'RE, I DON'T KNOW WHAT THE PROPER WORD IS, BUT ACKNOWLEDGE SOME OF THE CHALLENGES IN THAT WE'RE LOOKING, YOU KNOW, ASKING FOR SOME SORT OF LIKE DEFERRAL OR UNDERSTANDING OF THE OBLIGATIONS THAT WE HAVE IN ORDER TO, UH, HELP US ACHIEVE SOMETHING SUCCESSFUL.
UM, SO THANK YOU QUESTIONS AT THIS TIME.
THE RENT ISN'T EVEN DUE UNTIL YOU GET STABILIZATION.
SO WE'RE, WE'RE WAY AHEAD OF THIS.
UH, BUT YOU KNOW, OBVIOUSLY HE'S GETTING QUESTIONS FROM US LENDER SAYING, HEY, YOU KNOW, WE'RE NOT GETTING TARGETS, SO YOU GONNA DEFAULT TO COME TO FIRST NAME.
SO AGAIN, AND, AND IN THE INTEREST OF TRANSPARENCY, WE'RE TRYING TO GET AHEAD OF THIS AS QUICK AS POSSIBLE.
OUR, OUR MAIN GOAL HERE IS STAFF, IS THE HEALTH OF THIS PROPERTY AND, AND THE SUCCESS OF IT.
BECAUSE AT THE END OF THE DAY, YOU KNOW, WE'RE NOT LOOKING TO COLLECT THESE.
WE'RE LOOKING TO PROVIDE HOUSING.
SO, UH, WHATEVER WE CAN DO TO DO THAT.
I THINK, UH, SO I APPRECIATE SOMEBODY COMING IN AGAIN, IF YOU GUYS HAVE QUESTIONS FOR HIM, UH, HE'S GRACIOUS AND THANK YOU.
UH, THE FLOOR IS OPEN FOR QUESTION FOR MR. HANSEN.
I'D JUST LIKE TO SAY, UH, THANK YOU FOR THAT, UH, ERROR SUMMARIZING THAT FOR US.
APPRECIATE, UH, SWEET FOR COMING IN MR. HANSEN FOR COMING IN AND, UH, KINDA LAYING OUT THE WHOLE HARD FACTS.
I, UH, VISITED, UH, YOUR PROPERTY SOMEWHERE DURING THAT FIRST OPENING PHASE.
I THINK IT WAS RIGHT AFTER ONE OF OUR MEETINGS.
IT WAS RIGHT AFTER OUR MEETING CAME UP.
SO I, I WAS VERY, VERY IMPRESSED WITH, UH, THE, UH, COMMUNITY TAPE.
IT WAS A LOT OF PEOPLE THERE, A LOT OF MUSIC, UH, A LOT OF INTEREST, UH, ONCE YOU SHOWED ME AROUND AND JUST OBSERVING THE OTHER PEOPLE WHO WERE LOOKING AT THE APARTMENT.
BUT ALSO WITH JUST MAINLY THE, UH, PARTICIPATION FROM LOCAL PEOPLE BECAUSE PEOPLE WERE WALKING UP, THEY PARKED ALL DOWN THE STREET, WALKING UP THE STREET.
I KNOW THAT I DIDN'T WANT TO DO THAT.
THEY DIDN'T REALLY CARE
'CAUSE THERE WAS NO OTHER ROOMS. I JUST FORCED MY WAY IN.
BUT ANYWAY, JUST THE FACT THAT, UH, SOME LOCAL ENTREPRENEURS AND, UH, VENDORS WERE PRESENT.
I THOUGHT THEY SHOWED A LOT OF ACCEPTANCE.
AND THEN YOU ALSO MENTIONED SOME OF THE CRAFT WORK THAT YOU SHOWED ME, WHICH HAD BEEN DONE BY THE LOCAL PEOPLE TO GIVE A, UH, SORT OF A LOCAL FIELD AND ACCEPTANCE BY THE COMMUNITY.
SO I KNEW WE HAD HAD, UH, SOME SIMILAR TALKS, BUT I KNEW AND YOU KNEW THAT THIS WAS A HARD AREA TO GO INTO.
BUT YOU GUYS HAVE ACCOMPLISHED, UH, SOME CHANGE.
AND I THINK THAT, UH, LOOKING TOWARD THE FUTURE, UH, THERE WILL BE INCREASED INTEREST AND, UH, HOPEFULLY, UH, MORE QUALIFIED BUYERS, I ASSUME WILL COME IN BECAUSE, UH, IF YOU LOOK, UH, JUST A LITTLE BIT TO YOUR WESTERN, WE WILL HAVE, UH, THE, UH, DECK PARK DONE.
YOU, YOU ALSO HAVE, WHICH WILL DEFINITELY BRING MORE INTEREST INTO THE AREA FOR BUILDING AND AFFORDABLE HOUSING.
BUT ALSO THIS SITE IS REALLY, UH, VERY CLOSE TO DOWNTOWN DALLAS.
BEAUTIFUL VIEWS IN CITY SKYLINE, UH, REALLY WALKING DISTANCE.
UH, SO THEREFORE, UH, THE, UH, SIDELINES OF THE HILLS, I THINK JUST WITH WHAT IS COMING HOPEFULLY WILL HELP YOU GUYS IN THE COMING UH, MONTHS.
[00:55:02]
BUT THANK YOU FOR YOUR PRESENTATION.AND WE BELIEVE THAT THE THING, LIKE EVERYTHING ABOUT CEDAR CREST AND WHERE WE'RE LOCATED ON PAPER IS, IS INCREDIBLE.
SO I I, I PULLED PRIME STATS FOR THE FIRST QUARTER OF THIS YEAR FOR QUARTER MILE RADIUS AROUND OUR PROPERTY, QUARTER MILE RADIUS AROUND COMPETITORS PROPERTY,
WE HAD THE, IN CEDAR CREST, WE HAD THE LOWEST NUMBER BY FAR OF REPORTED CRIME INSTANCES FOR THE FIRST QUARTER OF THIS YEAR.
BISHOP ARTS HAD 96, BISHOP RIDGE HAD 60, AND WEST ALLEN HAD LIKE 30 SOMETHING.
YOU CAN'T, YOU, YOU CAN'T QUANTIFY THAT ON PAPER.
UN YOU KNOW, UNFORTUNATELY, LIKE EARLY ON, LIKE THAT'S YOU, YOU, YOU CAN'T, YOU CAN, YOU CAN LOOK AT THAT ON PAPER, BUT NOT UNTIL ACTUALLY UNDERSTAND WHERE THE MARKET AND HOW THE MARKET REACTS TO CERTAIN THINGS.
AND THAT'S ONE OF THE CHALLENGES THAT WE HAD IS THAT THERE'S THIS, AGAIN, THERE'S THIS MISPERCEPTION AROUND EAST OF 35 THAT IT'S UNSAFE OR YOU'RE PROSPECTING THE DATA DOESN'T POINT TO THAT.
AND I CAN TELL YOU I'VE DRIVEN AROUND DISTRICT FOUR AT ALL HOURS, NINE AND NOT ONCE FELT UNSAFE.
BUT YOU KNOW, THAT'S ANOTHER BROADER DISCUSSION FIGURE HOW DO YOU COMBAT THOSE MISPERCEPTIONS? BUT THE MISPERCEPTION IS STILL THERE AND SOMETHING THAT WE'VE LEARNED THROUGH LEASING THAT WE HAVE TO EVENTUALLY AT SOME POINT LEARN TO PUSH BACK ON.
UM, YEAH, MAY, MAYBE NOT, MAYBE THAT'S NOT AN ISOLATED REASON WHY, YOU KNOW, WE'RE DOWN 6% SOME PERCENT IN OUR RENTS, BUT I'M I'M SURE RIGHT NOW IT'S A CONTRIBUTING FACTOR.
UH, FIRST IS YOU, WHEN I START TO LOOK AT AND READ YOUR, YOUR LETTER, MY INITIAL THOUGHTS ARE, IT FEELS LIKE IT RUNS COUNTER TO A PART OF THE MESSAGE THAT WE HAVE HERE, THE IMPORTANCE OF THE PSC.
IT READS VERY MUCH LIKE
UM, YOU KNOW, THE DEMAND ISN'T, ISN'T THERE.
WHY DO WE NEED THAT AS A TOOL? SO MY QUESTION FOR YOU IS SORT OF LIKE IF YOU'RE TRAPPED IN AN ELEVATOR, SOMEBODY ASKS YOU THAT QUESTION, WHAT'S YOUR THREE TO FOUR SENTENCE RESPONSE? UNDERSTANDING THAT EVERY DEAL IS OBVIOUSLY A NUANCE, BUT YOU'VE ONLY GOT A COUPLE OF FLOORS TO GO, RIGHT? TO EXPLAIN THAT? YEAH, SO I MEAN, THE FIRST THING I SAY IS THAT THE, THE EVIDENCE THAT IS PROVIDED BY THE MULTIFAMILY ECONOMY SAYS THIS IS THE WORST RENTAL MARKET IN 15 YEARS SINCE, AND WE KNOW WHAT HAPPENED 15 YEARS AGO WITH THE GC.
AND SO THE MARKET IS OBVIOUSLY DISJOINTED AND IT'S NOT CREATING A REALLY GOOD, I WOULD SAY IT'S NOT GIVING US REALLY GOOD DATA TO MAKE A, I WOULD SAY, QUALIFIED CLAIM AS TO WHETHER OR NOT THIS PROJECT SHOULD BEEN A PART OF P FC OR NOT.
UM, AND IF I'M GETTING OFF TRACK AND NOT ANSWERING YOUR QUESTION, PLEASE, PLEASE TELL ME, PLEASE QUOTE MY KID.
UM, BUT ONE, ONE OF THE THINGS THAT I THINK THE PFC DOES REALLY WELL IS IT HELPS, UM, LEMME BACK UP.
ONE OF THE BIGGEST COMPLAINTS OR CHALLENGES THAT I SEE WORKING SOUTH OF 30 IS THAT THERE'S A CONVERSION OF MULTIFAMILY PRIMARILY BECAUSE SOUTH OF 30 IS CARRIED THE BURDEN OF HOUSING.
AND IT'S NOT THAT THE NEIGHBORHOODS THAT I WORK IN, THEY DON'T, IT'S NOT THAT THEY DON'T WANT IMPROVEMENT, BUT THERE'S A, UM, A CERTAIN WAY ABOUT GOING ABOUT THAT DEVELOPMENT THAT I THINK THAT IS REALLY APPRECIATED.
AND ONE OF THE THINGS THAT THE PSC PROGRAM DOES IS ALLOWS THAT SOFT INTRODUCTION OF MIXED INCOME HOUSING, WHICH IS WHAT THE NEIGHBORHOOD AND COMMUNITIES THAT I WORK IN WANT.
AND SO IT'S, IT'S NOT SO MUCH THAT THE PROGRAM SHOULD AVOID, AGAIN, I COULD BE MISSING WHAT YOU'RE ASKING, BUT IT'S NOT SO MUCH THAT THE PROGRAM SHOULD AVOID THESE AREAS 'CAUSE MAYBE THE DEMAND IS NOT THERE OR THE RENTS AREN'T THERE TO SUPPORT IT.
THAT'S EASY, LIKE TO LOOK AT QUANTIFIED.
BUT WHAT YOU DON'T SEE IS WHAT I HEAR IN THAT WHAT THE PSC PROGRAM, HASS IS THAT GENTLE IMPROVEMENT, GRADUAL IMPROVEMENT, UM, IN A, IN A WAY THAT ALLOWS THE DEVELOPER TO POTENTIALLY
UM, I HEAR YOU BECAUSE I, I THINK THAT THE, THE RESPONSE IN SOME WAYS BECOMES IT'S AN IMPORTANT PARTNERSHIP WHEN YOU'RE THE FIRST OR PIONEER.
AND THE SECOND QUESTION I HAVE IS IN REGARDS TO, AND I UNDERSTAND YOU NOT WANTING TO GET OFF TOPIC IN TERMS OF HAVING OVER 50% OF YOUR APPLICANTS THAT ARE, UM, BEING DEEMED UNQUALIFIED IN ORDER TO DO THAT.
HAS THERE BEEN ANY DISCUSSION OR THOUGHTS AROUND THE NEED FOR YOU TO REEVALUATE THEN SOME OF THE WAY YOU, UM, ARE REVIEWING, YOU KNOW, PAST THE EVICTION HISTORY OR RENTAL DEBT, THINGS LIKE THAT? YEAH, GREAT QUESTION.
SO ONE OF THE THINGS I I'D LIKE TO JUST HIGHLIGHT REAL QUICK IS THAT, UM, IT'S PROBABLY UNIQUE THAT
[01:00:01]
SOMEONE LIKE ME IS COMING TO YOU WITH THIS.IT'S KIND OF ASKING, SO WHAT I DON'T WANT THE BOARD TO GET THIS PERCEPTION OF IS THAT THERE'S SOMETHING THAT WE DID SPECIFICALLY FOR, BECAUSE WE'RE OPERATING THIS AREA THAT MAKES THIS LIKE THAT, THAT THERE WAS A FAILURE IN THE PROCESS OR ING PROCESS.
I CAN TELL YOU THAT YOU CAN PULL UP DEVELOPERS IN EVERY ONE OF OUR SUB MARKETS AND THAT'S OUR PEERS.
AND THEY WOULD TELL YOU THE EXACT SAME THING.
FRAUD IS HIGH THIS YEAR, CREDIT QUALITY IS DOWN.
UM, THE, THE MARKET IS INCREDIBLY TOUGH.
YOU HEAR THE EXACT SAME THING.
I'M JUST THE ONE THAT'S STANDING HERE IN FRONT OF YOU TELLING YOU THAT.
SO I, I'D LIKE TO MAKE SURE THAT THAT'S UNDERSTOOD.
YES, THERE'S CHALLENGES AND ET CETERA, BUT THIS IS SOMETHING THAT WE'RE ALL DEALING WITH IN THE MARKETPLACE.
WITH RESPECT TO YOUR QUESTION ON, ON CREDIT QUALITY, WE HAVE DONE THAT TYPICAL MULTIFAMILY EXECUTION IS THERE'S A NEED TO HAVE TO SHOW THREE TIMES INCOME, UM, UH, IN ORDER TO QUALIFY FOR A UNIT FROM A POTENTIAL RESIDENT.
UM, AND WE, WE ARE TWO AND A HALF OKAY ON OUR PROPERTY IN ORDER TO CREATE SOME OF THAT, I'VE ACTUALLY LOOKED AT GOING A LITTLE BIT LOWER AND WE ACTUALLY LOOKED AT PARTNERING, UM, WITH SOME LOCAL, UH, THE APARTMENT CONNECTORS, UH, APARTMENT CONNECTOR HOUSING, HOUSING CONNECTOR.
WE LOOKED AT PARTNERING WITH SOME DIFFERENT GROUPS THAT WOULD PROVIDE SOME SORT OF LIKE SAFETY NET OR SOME SORT OF PARTIAL LEASE GUARANTEE IN ORDER THAT WE CAN OPEN UP A LITTLE BIT FARTHER.
THE CHALLENGE IS IF YOU GO BELOW TWO AND A HALF TIMES, YOU'RE GETTING TO A SITUATION WHERE EVEN AT OUR, OUR DE DEPRESSED RENTS OR DECREASED RENTS, THAT RENT CHECK FOR SOMEONE AT TWO TWO AND 2.2 TIMES IS STILL WAY MORE THAN 30% OF THEIR ANNUAL HOUSING.
SO THEY'RE LIVING HOUSING CUSTOMER, AND YOU'RE PUTTING YOURSELF AT RISK FOR A POTENTIAL ADDICTION IN THE FUTURE.
UM, THAT'S ONE OF THE CHALLENGES THAT I SEE IN THE MARKETPLACE IS THAT THERE'S A, THERE'S DEMAND OUT THERE FOR PEOPLE.
LIKE WE, FOR EXAMPLE, WE HAD SOMEONE COME IN TWO WEEKS AGO WEARING HER, UM, TEXAS A AND M UNIVERSITY DENTAL SCHOOL BADGE.
SHE WANTED TO RENT WOULD'VE BEEN A PERFECT TENANT FOR US.
AND WE'VE DONE INCREDIBLE OUTREACH.
WE'VE DONE DIRECT MARKETING OUTREACH TO ALL THE HOSPITAL SYSTEMS. WE'VE OFFERED SPECIALS TO ALL OF 'EM.
WE HAD SOMEONE CAME IN FROM THE DENTAL SCHOOL OF TEXAS, UH, TEXAS A AND M WHO WOULD'VE BEEN A PERFECT TENANT FOR US AND BEEN ABLE TO TAKE ADVANTAGE OF SOME OF OUR LEASING PROGRAMS. BUT SHE HAD AN EVICTION IN HER HISTORY AND SO WE HAD TO DENY HER.
AND SO THE ONE THING THAT I CAN'T SOLVE FOR THOUGH IS, IS THAT GENERAL ACCEPTED PRACTICE OF IF YOU HAVE AN EVICTION HISTORY OR RENTAL DEBT, THEN IT'S AN AUTOMATIC DENIAL.
AND IF YOU, WE CAN'T UNFORTUNATELY, 'CAUSE I REALLY WISH WE COULD, BUT WE CAN'T UNFORTUNATELY LOOK AT IT ON CASE BY CASE BASIS BECAUSE THEN IT BECOMES A FAIR HOUSING, YOU KNOW, ISSUE.
AND, AND, AND SO LIKE WE'RE WHERE I, YOU KNOW, AGAIN, WHERE I THINK NEXT STEP IS RIGHT NOW I'M BUILDING A RELATIONSHIP WITH DALLAS COLLEGE AND, AND TRYING TO FIND WAYS TO PARTNER WITH THEM.
MY DAD RAN A NONPROFIT IN WEST DALLAS, SO ONE OF THE THINGS THAT HE DID WAS ADMINISTER A, UH, WORK PROGRAM WITH DALLAS COLLEGE WHERE THEY WOULD COME IN AND JOIN AND, AND THEY WOULD LEAVE THE PROGRAM WITH A JOB WITH, UH, BETTER SCOTT AND WIFE.
AND, AND SO ONE OF THE BIGGEST PROBLEMS THAT THOSE PEOPLE IN THOSE THOSE PROGRAMS HAVE IS HOUSING BECAUSE THEY COULDN'T AFFORD IT.
UM, AND SO SOME OF 'EM WERE LIVING IN THEIR CARS AND SO, BUT, BUT ALSO THEY HAVE A, 'CAUSE THEY HAVE LIKE EVICTION HISTORY OR REAL DAY.
'CAUSE NOW THEY'RE TRYING TO GET A POINT WHERE THEY'RE IMPROVING THEIR LIVES.
AND SO THOSE ARE THE PEOPLE THAT I WOULD LOVE TO FIND A SOLUTION TO.
AND WE ALL HEARD ABOUT CFT ANNOUNCING THE A HUNDRED MILLION DOLLAR, YOU KNOW, HOUSING FUND.
I, I'VE TALKED TO OTHER PEOPLE AT CFT AND, AND WHEN THEY PUT TOGETHER A HUNDRED MILLION DOLLARS, I, I'VE TOLD 'EM BECAUSE THEY'VE ASKED ME, IT'S NOT JUST A SUPPLY ISSUE, IT'S, IT'S ALSO A TENANT CREDIT QUALITY ISSUE.
AND SO, LIKE WHEN I THINK CAT REALLY NEEDS TO PUT SOME OF THAT A HUNDRED MILLION DOLLARS IS PARTNERING WITH LIKE A DALLAS COLLEGE OR SOMEONE WHERE THEY CAN STAND BEHIND AND POTENTIALLY GUARANTEE THOSE LEASES SO THAT THESE PEOPLE, WE COULD EVEN LOWER THE CREDIT QUALITY AND NOT HAVE TO WORRY ABOUT BREAKING FAIR HOUSING AND LAWS SO THAT THEY COULD STAY IN OUR APARTMENT.
I'D JUST LIKE TO SAY IS, IS THAT A, IS THAT HOW SOMETHING, NOW THIS MIGHT BE OFF TOPIC, BUT IS THAT HOW SOMEBODY YOU KNOW WHO FINALLY IS, YOU KNOW, THEY ARE, THEY HAD A ISSUE IN THE PAST GETTING EVICTED, BUT YOU KNOW, THEY WENT TO SCHOOL AND NOW THEY'RE IN A GOOD JOB.
IS THAT HOW THEY GET, THEY HAVE TO GET A GUARANTEE IN ORDER TO, UH, BE ALLOWED? YEAH.
I, I CAN'T TELL YOU HOW MANY CONVERSATIONS I'VE TRIED TO, AND WE USE, YOU KNOW, WE USE THIRD PARTY PROPERTY MANAGEMENT, ONE LARGEST IN THE COUNTRY RPM LIVING.
AND, UM, YEAH, I MEAN IT IS A, THERE HAS TO BE A, A LEASE GUARANTEE.
LIKE I THINK EVICTIONS STAY ON THE RECORD FOR LIKE SEVEN YEARS, WHICH IS A LONG TIME.
SO THAT PERSON MIGHT NOT HAVE A HOME SEVEN YEARS.
AND, AND SO LIKE, THAT'S THE THING THAT REALLY BUGS ME.
'CAUSE THE FINCH IS ONE OF THE PERFECT PLACES.
YOUR LOCAL, APPROXIMATE DOWNTOWN, YOU GOT A BEAUTIFUL LIVING ENVIRONMENT WITH TREES AND NATURE.
YOU'VE GOT A GREAT NON-PROFIT THAT OPERATES RIGHT NEXT DOOR.
YOU'VE GOT AN OWNERSHIP AND, AND, AND PARTNERSHIP BASE THAT REALLY WANTS TO, YOU KNOW, DO SOMETHING, YOU KNOW.
A LOT OF OUR EQUITY PARTNERS ARE FOUNDATIONS, LOCAL FAMILY OFFICES
[01:05:01]
AND, UM, NONPROFITS.AND, AND AGAIN, WE CAN'T SOLVE THAT UNFORTUNATELY RIGHT NOW.
IT'S CLEAR YOU'RE VERY PASSIONATE ABOUT IT, WHICH IS ADMIRABLE.
UM, I, ALTHOUGH THE PRESENTATION, WE COULDN'T SEE IT HERE.
I LOOKED ONLINE, THE FINCH IS VERY NICE.
UH, IT'S A WELL DESIGNED PRODUCT BY OPINION.
I THINK THERE'S NICE HOMES AROUND THE AREA.
I THINK THE GOLF COURSE BEING THERE IS REALLY NICE.
UM, SO I THINK IT'S A GOOD AREA.
UNFORTUNATE THE RENTS ARE MATERIALIZING AS YOU ALL THOUGHT THEY WOULD.
UM, I THINK WE HAVE TO BE VERY CLEAR.
WE'VE NEVER DONE ANYTHING LIKE THIS.
UM, AND SO THERE'S NOTHING FOR US TO APPROVE HERE TODAY.
I THINK FOR SOMETHING LIKE THIS, WE NEED A REAL LEGAL DOCUMENT.
OBVIOUSLY IT'S HELPFUL FOR YOU TO COME AND DISCUSS WHAT'S GOING ON.
THE QUESTION I HAVE FOR YOU RIGHT NOW IS, UH, YOU ARE PAYING THE RENT CURRENTLY BECAUSE THE PROPERTY'S NOT STABILIZED, CORRECT? YEAH.
RENT THE, THE FIRST PAYMENT'S DUE SIX MONTHS.
THE REASON WHY I'M HERE TODAY IS BECAUSE I THINK IT'S IMPORTANT TO COMMUNICATE EARLY AND OFTEN AND BE UPFRONT.
AND THEN MY QUESTION IS, WHY IN THE LETTER IS THE ASK NOW TO NOT REQUIRE THAT UNTIL OCTOBER, 2028 WHEN YOU'RE NOT PAYING IT.
NOW WHAT ARE YOU FORECASTING FOR SOMETHING RIGHT NOW THAT YOU WANNA HAVE SOLID? WE LIKE WHY, WHY IS THE ASK RIGHT NOW? SO THE, THE, THE, THE INTENT WITH THE, THE ORIGINAL LETTERS.
'CAUSE I'M LOOKING OUT INTO, I'M LOOKING BACK AT WHAT OUR PACE HAS BEEN AND WHERE OUR RENTS ARE.
AND I'M PROJECTING OUT AND LOOKING AT MY UNDERWRITING AND LOOKING AT HOW IN PARTICULAR THAT AFFECTS OUR SENIOR LENDER.
I MEAN, EVERYTHING THAT WE DO IS REALLY GOVERNED BY OUR ABILITY TO DEBT COVERAGE AND EITHER, YOU KNOW, EITHER YOU DO IT OR YOU DON'T.
AND, AND 'CAUSE THE SENIOR LENDER AT THE END OF THE DAY HAS THE BIGGEST LEVER BECAUSE THEY GOT THE, THE LIMA, RIGHT? SO I'M JUST LOOKING OUT AND, AND REALLY THIS IS ALL DRIVEN PRIMARILY BY THAT IS ARE WE GONNA BE ABLE TO MEET OUR DEBT COVERAGE REQUIREMENT? WE HAVE A 1 3 5 AMORTIZING COVERAGE REQUIREMENT FROM OUR SENIOR LENDER, OR ARE WE GONNA BE ABLE TO REFINANCE IT WITH FANNIE AND FREDDY, UM, AT THE END OF THE DAY.
AND SO THAT'S WHAT I'M, I'M LOOKING OUT AND TRYING TO UNDERSTAND AND TRY TO PROJECT AND DO MY RE-UNDERWRITING BASED ON WHERE OUR CURRENT RATES ARE.
AND THEN, OH, BY THE WAY, IF YOU'RE, YOU'RE GIVING AWAY EXCESSIVE CONCESSIONS, WHICH, YOU KNOW, WE'RE RIGHT NOW IN THE MARKET, WE'RE GIVING AWAY OUR CONCESSIONS ARE, UM, HALF OFF YOUR FIRST THREE MONTHS.
WE'RE ALSO OFFERING A THOUSAND DOLLARS GIFT CARD.
UM, WE'RE TRYING TO BE VERY AGGRESSIVE IN THE SLOW SEASON RIGHT NOW.
WE HAVE A LARGER SHARE OF A SMALLER MARKET WHILE ALL OF OUR OTHER COMPETITORS ARE PULLING BACK.
UM, AND, AND YOU KNOW, AT THE END OF THE DAY, IF WE'RE LEASING A PROPERTY WITH A LOT OF PEOPLE THAT ARE, YOU KNOW, GETTING RENT AT CONCESS LEVEL, WHEN THOSE LEASES RUN OUT IN 12 MONTHS, UM, YOU KNOW, YOU PUT YOUR PROPERTY AT RISK THAT THEY'RE GONNA POTENTIALLY ALL MOVE OUT BECAUSE YOU REALLY HAVE TO HAVE AN LA RENT.
SO AS PART OF MY UNDERWRITING, I'M NOT UNDERWRITING, YOU KNOW, A ROLE BACK TO THOSE MARKETS.
I'M UNDERWRITING MY RENTS BEING FLAT BECAUSE I'M EITHER GOING TO ROLL MY RENT HIGHER TO MARKET AND HAVE A HUGE VACANCY RATE IN 12 MONTHS.
OR AM I GONNA TAKE, YOU KNOW, NO RENT INCREASE AND MAYBE ACTUALLY ADD IN ADDITIONAL CONCESSIONS IN ORDER TO KEEP THOSE TENANTS TO KEEP MY ANCY HIGH.
AND SO WHY I'M DOING THIS NOW IS BECAUSE THAT'S WHAT I'M DOING.
I'M BEING CONSERVATIVE KNOWING THAT WE'RE, AGAIN, WE'RE ALL COMPETING FOR A SIMILAR MARKET, A SMALLER POOL.
THAT'S THE OTHER CHARACTER CHARACTERISTIC OF THE MARKET RIGHT NOW.
I THINK THE ECONOMY IS MUCH WORSE THAN PEOPLE ACTUALLY ARE LED TO BELIEVE.
UM, THE DATA SHOWS THAT RETENTION RATES AND EXISTING PROPERTIES OF SPITE THIS YEAR.
UM, SOME OF OUR PEERS HAVE TOLD ME THAT THEY'VE GOT A 70 TO 80% RETENTION RATE, WHICH IS OUT OF, OUT OF THIS WORLD IN EXISTING PROPERTIES.
AND SO WHEN PEOPLE ARE AFRAID, WHAT DO THEY DO? THEY HUNKER DOWN.
AND WHEN PEOPLE AREN'T MOVING, NEW PRODUCT DOESN'T BENEFIT.
AND SO PEOPLE ARE STAYING FOOT.
SO NOT ONLY ARE PEOPLE STAYING FOOT, THERE'S A GREATER SUPPLY RIGHT NOW ON THE MARKET THAT'S QUOTING THIS.
UM, MR. MONTGOMERY MENTIONED THERE'S A GREAT SUPPLY IN MARKET THAT'S CUTTING DOWNWARD PRESSURE ON RENT, WHICH IS ACCOMPLISHING A LOT OF THINGS, AFFORDABILITY.
UM, BUT YOU KNOW, WHEN IT ALL COMES AT ONCE, UM, IT'S SUCH A MAGNITUDE THAT CREATES THE WORST LEASING MARKET.
NOT ONLY LOCALLY, BUT OBVIOUSLY ACROSS A LOT OF THE MAJOR MARKETS IN THE UNITED STATES.
UM, YOU KNOW, WE ALL END UP SUFFERING.
I DON'T THINK ANY OF THIS DISCUSSION IS A REFLECTION OF YOUR EFFORTS.
IT SOUNDS LIKE YOU'RE DOING EXACTLY WHAT YOU SHOULD BE DOING TO GET THE RENTS TO THE PLACE THAT YOU NEED THEM TO BE TO MAKE THIS A SUCCESSFUL PROJECT.
IT'S MORE A QUESTION, I THINK, FOR US ABOUT HOW WE REACT AND RESPOND TO IT AS A PRACTICE.
AND I DON'T THINK ANYTHING THAT, YOU KNOW, IS SPECIFIC TO YOU GUYS
[01:10:01]
IS THERE FOR ANY OF YOUR PEERS ACCESS.AGAIN, I THINK IT'S A, I THINK IT LOOKS REALLY NICE, BUT I PULLED IT UP.
IT WAS MUCH BETTER THAN I THOUGHT IT WOULD BE.
UM, SO IT'S, AGAIN, IT'S NOT A REFLECTION ON THE PROJECT, IT'S JUST WHAT, HOW WE HAVE TO CONSIDER AN ANALYSIS OF THIS IS WHAT THE UNPRECEDENTED ASK FOR THE PFC.
AND SO I THINK WE ALL JUST HAVE TO BE AWARE OF THAT.
WELL, I, I, I, I UNDERSTAND AND I APPRECIATE THAT AND HOPEFULLY YOU DON'T HAVE TO DO IT OFTEN, BUT YOU KNOW, AT SOME POINT THERE'S GONNA BE A DOWN MARKET.
I'M JUST THE FIRST ONE, JUDGE.
UM, SO USED A COUPLE TERMS I WANTED TO EXPLORE JUST FOR MY OWN IFICATION ABOUT, UH, LEVER AND OBVIOUSLY THIS LEASE, THESE LEASE MODIFICATION REQUESTS, UH, REPRESENT ONE OF THE LEVERS YOU'RE NEEDING PULL IN FACE OF THIS MARKET.
IN TERMS OF, IN TERMS OF BETWEEN YOU SUMMER AND AARON, HOW MANY LEVERS DO WE HAVE? YOU KNOW, HOW MANY SUBSEQUENT LEASE MODIFICATIONS DO WE HAVE OUT THERE TO HELP THIS PROJECT BE SUCCESSFUL? UM, TO, UH, TO MARK'S COMMENTS.
AND, UH, WHICH ONE IS THIS THE FIRST ONE OF MANY OR IS THIS ONE, YOU KNOW, DO WE HAVE LIMITED OPTIONS TO, YOU KNOW, HELP, UH, HELP SUPPORT THIS PROJECT? CAN, CAN YOU HELP THE LORD UNDERSTAND, YOU KNOW, 'CAUSE I THINK YOU MAYBE OPENED THE DOOR A LITTLE BIT WITH YOUR COMMENTS IS I DON'T WANNA KEEP COMING BACK UP HERE, YOU KNOW, WITH SUBSEQUENT MODIFICATIONS.
SO THIS IS THE FIRST ONE WE'RE SAYING.
UH, UH, IN TERMS OF FIRST IMPRESSION, YOU KNOW, WHAT, UH, WHAT DOES YOUR EXPERIENCE TEACH YOU? IS THIS GONNA BE ENOUGH OR WILL WE BACK HERE? I KNOW THE CRYSTAL BALL STUFF.
NO, GREAT, GREAT, GREAT QUESTION.
SO I WOULD, I WOULD, I, I FEEL CONFIDENT THAT I CAN SAY YES TO THAT SO THAT I, I HAVE NO EXPECTATION THAT WE WOULD DO THIS MULTIPLE TIMES.
I SPENT, I'VE BEEN IN REAL ESTATE FOR OVER 20 YEARS, MOST OF MY EXPERIENCE FROM THE CAPITAL MARKETS, PRIMARILY ON THE DEBT SIDE.
AND SO I'VE SAT IN A LOT OF CREDIT COMMITTEES AND SEEN A LOT OF BORROWERS COME BACK WITH ASK AFTER ASK AFTER ASK OF CONCESSIONS.
AND THE WORST THING THAT YOU CAN DO IS, AS A BORROWER, OR IN THIS CASE A TENANT, JUST CONTINUE TO COME BACK TO PEOPLE THAT HOLD THE LEVERS AND, AND ASK FOR MORE AND MORE AND MORE.
AND SO IN PART OF WHAT YOU WERE SAYING, WHY ARE YOU DOING THIS NOW IS, UM, I WENT TO, I, I PUT FORTH AN ANALYSIS THAT I THOUGHT WAS CONSERVATIVE SO THAT I WOULD NOT HAVE TO DO THIS AGAIN.
SO, LIKE WHEN I EXPLAINED EARLIER THAT WHEN I DID MY UNDERWRITING, YOU KNOW, TYPICAL UNDERWRITING IS THAT AFTER THAT 12 MONTH LEASE AND CONCESSIONS BURN OFF, THE RENT ROLLS UP TO A FULL BOAT OF MARKET RENT.
UM, AND THE TENANT POTENTIALLY PAYS THAT.
SO IN WITH THE IDEA THAT I DON'T WANNA KEEP DOING THAT, I DON'T WANNA BE AGGRESSIVE, I'M GENERALLY A VERY CONSERVATIVE PERSON, UM, BECAUSE I'VE SPENT SO MANY YEARS IN BANKING AND BANKERS ARE TRADITIONALLY VERY CONSERVATIVE.
UM, I, I, UM, UH, I DIDN'T DO THAT.
I MEAN, I UNDERWROTE 0% RENT GROWTH FROM YEAR ONE TO YEAR TWO LEASES.
AND I ACTUALLY UNDERWROTE TENANTS THAT STAY AND RENEW THE LEASES TYPICALLY DON'T MEET CONCESSIONS.
I UNDERWROTE A SMALL AMOUNT OF CONCESSIONS IN THE EVENT THAT WE WOULD POTENTIALLY WANT TO DO THAT.
SO, AND I, I DON'T WANT THE EMBARRASSMENT OF HAVING TO COME BACK AND ASK FOR SOMETHING BY ANY MEANS.
I WILL ALSO TELL YOU AGAIN, THAT'S WHY I MENTIONED ONE EARLIER ABOUT, YOU KNOW, LOOK, I I DON'T LOOK AT THE PSC AS BEING THE ONE THAT SOLVED MY PROBLEM.
THAT'S WHY I MENTIONED EARLIER ABOUT, YOU KNOW, THE SHARED BURDEN OF THE DEFERRED DEVELOPER FEE AND WHAT WE'RE DOING IN ORDER TO, IN CONTINUE TO CARRY THE PROJECT.
AND I WILL SAY THAT WE'VE ALSO TALKED TO SOME OF OUR CURRENT EQUITY MEMBERS AND ABOUT, YOU KNOW, UM, ADJUSTING, YOU KNOW, THEIR RETURN AS WELL, UM, BASED ON THE PURPOSE PROFILE OF THE PROJECT.
AND WE'RE TO AGAIN, SHARE THAT.
AND I WOULD, I'M GONNA GO BACK TO THE LENDER AS WELL.
DO YOU HAVE ME HITTING THE 1 35 ADVERTISING COVERAGE AT A 9.5% COUPON BECAUSE WE CLOSED, WE CLOSED THE LOAN, RIGHT? WHEN INTEREST RATES JACKED OUT AND WE START GROWING UP, I THINK THAT'S, YOU KNOW, REASONABLE RIGHT NOW.
LET'S, LET'S, I'M GONNA GO BACK AND ASK THEM TO, YOU KNOW, REDUCE THEIR REQUIREMENTS AS WELL.
SO THAT'S, THAT'S, THAT'S HELPFUL.
UM, I'M GONNA ECHO WHAT A LOT OF PEOPLE HAVE SAID.
JUST, UH, APPRECIATE THE COMING TO THE TABLE AND JUST PUTTING IT, PUTTING THE CARDS ON THE DECK, RIGHT? JUST SHOWING US YOUR CARDS, BEING HONEST NOW.
'CAUSE IT'S BETTER NOW THAN SIX MONTHS FROM NOW.
IF YOU KNOW IT'S COMING, YOU KNOW, ADDRESS IT POINTING OUT THIS PROPERTY BEEN WAS UNDER CONTRACT FOR DECADES, DIFFERENT PEOPLE HAVE PURSUED IT, WHATEVER.
SO WHEN HE SAYS A DISTRICT FOUR MULTIFAMILY WITHOUT HEAVY SUBSIDIES, THERE'S NO QUESTION, UH, THAT UNDEVELOPED PROPERTY CERTAINLY BROUGHT VALUE TO IT.
UM, YOU KNOW, AS FOR OUR ROLE PARENT APPRECIATE, I, I WOULD THINK IF YOU, YOU KNOW, WE'RE GONNA DO SOMETHING RIGHT? I WOULD THINK YOU PROBABLY OUGHT TO DO, LIKE, I DON'T WANNA USE THE WORD FORBEARANCE AGREEMENT, BUT SOME SORT OF LIKE BE JUST A CLARIFICATION TO SOME,
[01:15:01]
BECAUSE THE NEXT PERSON THAT COMES IN, IT'D BE NICE TO SAY, WELL, THEIR RENTER, THIS, THEIR RENT ARE THAT.AND THEN YOU SAY, YOU KNOW, THIS IS WHY WE DID THAT.
RIGHT? UH, I THINK A LENDER WOULD PROBABLY, YOU KNOW, WANT TO DOCUMENT IT JUST TO HAVE A, A PAPER TRAIL.
UM, AND YOU'RE NOT THE FIRST PERSON TO COME HERE.
WE, WE HAD TO, WE HAD TO GIVE UP A QUARTER OF A MILLION DOLLARS FOR A STORM SEWER LINE THAT WE DIDN'T KNOW EXISTED, RIGHT? THE DEVELOPER DIDN'T KNOW EXISTED.
VERY EXPERIENCED DEVELOPER AS WELL.
AND, AND, YOU KNOW, WE MADE CONCESSIONS.
YOU KNOW, WE DIDN'T, WE DIDN'T WANT TO DEAL WITH AN UNDISCLOSED STORM LINE ON OUR PROPERTY.
SO WE DID, YOU KNOW, HOPEFULLY WE'LL TAKE A SIMILAR PATH THERE.
BUT I DO APPRECIATE YOU COMING IN AND THIS WASN'T EASY.
YEAH, I'LL JUST REITERATE, YOU KNOW, I THINK EVERYBODY BELIEVES IN THIS PROJECT.
I THINK MARKET'S TOUGH RIGHT NOW, BUT ALSO WE ALL KNOW THAT PEOPLE HAVE TO STOP MOVING TO DALLAS HERE EVERY DAY.
AND I THINK, YOU KNOW, THIS WHIP SAW EFFECT WHERE WE, WE'VE HAD A BIT OF OVERBUILDING THE LAST THREE YEARS, I THINK AS, AS THOSE, UH, VACANCIES HAVEN'T TIGHTEN UP, EVERYTHING'S GONNA GET REALLY TIGHT AGAIN.
SO WE'RE, WE'RE HOPING FOR A GOOD RETURN THERE, BUT, UH, UNTIL THEN WE
AND THEN ALSO IT'S A GOOD BRIDGE.
LIKE I SAID, THIS IS ONE OF THE TOOLS THAT THE CITY HAS TO PROVIDE HOUSING.
WE TRY TO FIT IT INTO THESE LITTLE BOXES OFTEN.
AND, YOU KNOW, THERE'S A, THERE'S A LOT OF GRAY AREA AROUND IT, AND I THINK THIS IS WHERE WE'RE KIND RUNNING INTO THAT.
UH, AT THE END OF THE DAY, YOU KNOW, IT GOT A REALLY GREAT LOOKING HIGH QUALITY PROJECT DONE IN AN AREA THAT HASN'T SEEN ANYTHING THAT QUALITY FOR MAYBE EVER.
AND SO, UH, WE'RE, WE'RE HOPEFUL THAT THE MARKET AND, AND THAT THAT NEIGHBORHOOD CONTINUES TO GROW UP AROUND IT AND THAT, UH, IT'LL BE A VALUE.
AND JUST SOMETHING, MR. FRESNO, WITH YOUR PERMISSION, JUST AGAIN, UH, MR. HANSON, I WOULD NEVER USE THE WORD EMBARRASSED.
YOU ARE, YOU ARE A PARTNER WITH US IN THESE PROJECTS.
AND TO AARON'S COMMENTS, YOU, YOU DELIVERED A FANTASTIC CLASS A PROPERTY IN A NEIGHBORHOOD THAT IS ABSOLUTELY SUPPORTIVE OF IT AS THE EXHIBITS SHOW.
UM, AND I WOULD JUST SAY, UH, YOU KNOW, TO ALL OUR, UH, BUSINESS PARTNERS THAT NEED TO COME FORWARD, PLEASE DO SO SO THAT WE CAN GET WELL AHEAD OF IT, UM, AND PUT THE CARDS ON THE TABLE.
AND THERE'S NO EMBARRASSMENT TO IT BECAUSE WE'RE ALL PULLING ON THE SAME END OF THE ROAD.
AND WE ALL WANT THESE PROJECTS TO BE SUCCESSFUL, UH, TO SOLVE THE, THE AFFORDABLE HOUSING, UH, CRISIS AND MARKET CAN MARKETS TURN.
WE ALL KNOW THAT WE'RE ALL, UH, FAMILIAR WITH MARKETS AND WHATEVER INDUSTRY WE'RE IN.
UM, SO JUST, UH, JUST AN ASK AND YOU'RE A GREAT EXAMPLE TODAY OF COME BOARD AND JUST LET US, LET US KNOW WHAT YOUR CRYSTAL BALL'S SHOWING US.
'CAUSE WE'VE OBVIOUSLY GOT A
SO AGAIN, THANK YOU FOR YOUR TIME TODAY.
I THINK THIS IS A EXAMPLE OF, I, I'D RATHER, I'D RATHER ASK PERMISSION THAN FORGIVENESS GOES BACK TO YOUR QUESTION BY GREAT, THANK YOU.
ANY OTHER QUESTIONS OR COMMENTS? LINE SUMMER, I, I JUST WANTED TO ADD, UM, AND, AND CLARIFY, I THINK THERE WAS A COMMENT ABOUT A FORBEARANCE AGREEMENT.
SO THE WAY THAT THE LEASE IS DRAFTED, AND THIS IS HOW ALL OF YOUR LEASES ARE DRAFTED, BY THE WAY, UM, IN ORDER TO ALLOW FOR FLUCTUATIONS IN THE MARKET AND THE FACT THAT, YOU KNOW, WE UNDERSTAND THAT THESE PROJECTS ARE RISKY, UM, AND THAT THERE ARE SIGNIFICANT PUBLIC BENEFITS THAT ARE BEING DELIVERED OTHER THAN JUST THE, OBVIOUSLY THE, THE ANNUAL PAYMENT OR ANY FINANCIAL RETURNS THAT COME BACK TO THE PFC.
THIS DOCUMENT, NUMBER ONE, THE RENT ISN'T DUE UNTIL, AS, AS SWEDE MENTIONED, UNTIL, UM, SIX MONTHS AFTER THEY STABILIZE.
SO THEY'RE AT 30% STABILIZATION IS TYPICALLY 90%, UM, PHYSICAL OCCUPANCY.
SO WE'VE STILL GOT SOME TIME, UM, OBVIOUSLY BEFORE THE RENT WOULD EVEN BECOME DUE.
UM, AND AGAIN, THAT'S DRAFTED THAT WAY ON PURPOSE TO ALLOW FOR SOMETHING LIKE THIS WHERE YOU HAVE A SLOW LEASE UP OR MAYBE YOU HAVE SOME PERIOD OF TIME, UM, THAT'S REQUIRED TO COMPLETE CONSTRUCTION OR DEAL WITH CERTIFICATE OF OCCUPANCY ISSUES OR PERMITTING OR WHATEVER THE CASE MAY BE.
THAT'S WHY IT'S NOT LIKE A SET DATE.
AND THEN ADDITIONALLY, UM, IN ANY YEAR WHERE THERE IS NOT SUFFICIENT CASH FLOW TO PAY FOR THE, THE ANNUAL PAYMENT, THAT AMOUNT WILL ACCRUE.
AND AS SOON AS THERE IS SUFFICIENT CASH FLOW, THOSE AMOUNTS ARE, ARE DUE.
UM, AND IF THEY'RE NOT ABLE TO PAY IT, THEN IT'S DUE AT THE
[01:20:01]
FIRST CAPITAL EVENT.SO EITHER A SIGNIFICANT REFINANCING OR A SALE OF THE PROJECT.
UM, AT THAT INSTANCE, YOU GUYS ARE IN FRONT OF ANY EQUITY DISTRIBUTIONS.
SO THE PAYMENT OF THAT RENT, THAT ACCRUED RENT WOULD HAPPEN BEFORE, UM, ANY OF THE, LET'S SAY PROFITS FROM THE SALE WOULD BE DISTRIBUTED OUT TO THE, TO THE PARTNERS, UM, IN THE DEAL.
SO I JUST WANTED TO KIND OF EXPLAIN THAT AND WHAT YOU GUYS KNOW THAT, YOU KNOW, WE'VE ALREADY THOUGHT ABOUT THAT ON THE FRONT END, UM, WHICH IS WHY WE'RE NOT REQUESTING, UM, ANY RELEASE MODIFICATIONS RIGHT NOW AT THIS POINT IN TIME.
AND, AND I DON'T THINK THERE'S A NEED FOR ANY ADDITIONAL DOCUMENTATION, UM, BECAUSE AGAIN, THIS REALLY DOES ALLOW FOR THEM TO, UM, TO DO WHAT, WHAT THEY'RE ASKING SUMMER.
ANY OTHER QUESTIONS OR COMMENTS? SEEING NONE? UH, THANK YOU MR. HANSON FOR COMING AND WE APPRECIATE THE TEAMWORK.
WE'RE ALL ON THE SAME TEAM AND, UM, THANK YOU VERY MUCH.
AS MENTIONED, UH, THAT WAS, UH, END APPROVAL, NOT, IT SHOULD NOT HAVE BEEN IN THE, UM, ITEM NUMBER EIGHT'S DESCRIPTION.
SO WE'LL MOVE ON TO ITEM NUMBER NINE, UH, DISCUSSION AND APPROVAL OF
AND WE'LL, WE'LL GET YOU AFTER THIS AFTER WE'RE DONE.
SO WE HAVE BEEN, THE WAY IS WITH
UH, WE ACTUALLY APPROVED THIS PROJECT AGO AGO, UH, AND IT'S HASN'T BEEN READY TO CLOSE YET.
SO NOW WE ARE GETTING READY TO CLOSE ON IT.
AND AS A RESULT, THE LENDING ENVIRONMENT SIGNIFICANTLY DIFFERENT.
AND SO THEN SEEING THE LENDERS PARTICULARLY HAVE SEEN THE UPDATES TO THE NEW DFC STATUTE.
SO AS A RESPONSE TO THAT, WE'RE REQUIRING, UH, A LITTLE BIT MORE AFFORDABILITY IN THIS PROJECT.
SO WE NEEDED TO REVISE THE MOU TO REFLECT THAT, UH, SO THAT THEY COULD GET THIS FINANCE IN.
AND I THINK WE HERE JUST TO, WE FIND EVERYBODY OF WHAT THIS PROJECT WAS AND APPROVED AND, UH, QUESTION.
AFTERNOON EVERY GOOD AFTERNOON, EVERYBODY.
UM,
UM, WE'RE A DALLAS BASED DEVELOPER.
UM, YEAH, SO WE'RE IN DALLAS BASED DEVELOPER, MOST OF OUR DEVELOPMENT STATE THAT TAKEN PLACE IN, UH, URBAN.
UM, THIS WILL BE OUR THIRD PROJECT IN THE AREA SINCE THE DOLL.
UM, SO THIS, THIS PROJECT FOR A LITTLE BIT OF A REFRESH IS A 293 UNIT WRAP PRODUCTS LOCATED, UM, JUST OFF OF I 30 AND FAIR PARK.
THAT'LL BE OUR THIRD PROJECT IN THE AREA.
UM, OUR FIRST WAS THE WILLOW WAS 190 UNIT PODIUM THAT WAS DELIVERED IN 23.
AND THEN, UH, IT'S SISTER PROJECT JUNIPER WE'LL BE DELIVERING LATER IN, UH, 2026.
UM, SO CLEARLY WE'RE VERY HIGH ON THE AREA.
UM, AND SO WHAT WE LIKE ABOUT THIS PROJECT IS THAT IT'S GONNA BE PRETTY PRIMARY FOR THE AREA SPECIFICALLY.
FAIR PART, IT'LL BE THE FIRST PROJECT IN ITS TIME TO BE ON DIVIDE BY 30.
UM, WE'VE ALL EXPERIENCED AND I THINK DRAWING MOMENTUM THAT WE THINK THAT THIS CAN BE A CATALYST FOR THE AREA RIGHT NEXT TO IT ON THE OTHER SIDE OF THE HIGHWAY.
SO WE DESIGNED IT WITH THAT IN MIND, THAT WE WANTED TO BE UNIQUE TO THE AREA AND UNIQUE TO FAIR PARTY.
UM, SINCE IT WAS APPROVED IN 2022, WE HAVE RENAMED IT TO THE DO AND WORK AND HONOR OF GEORGE DOLL WAS A, UH, CRITICAL ARCHITECT, UM, AND DESIGNED MOST OF FAIR PART.
SO AS YOU CAN SEE IN THE PRESENTATION, UM, THE DESIGN OF THIS BUILDING IS MEANT TO REFLECT DESIGN FAIR PART TO THE TENANTS TO LOOK AND FEEL, UM, THAT IS UNIQUE.
SO WE LIKE TO IMPLEMENT A LOT OF OUR DECO, UM, LOT DISAGREE THAT, AGAIN, FITS IN WITH THE SURROUNDING AREA AND WE, THAT THE ALL ANGLE WILL HELP US ATTRACT, UH, TO SUITES EARLIER POINT, QUALIFIED RESIDENTS AND TENANTS FOR THE AREA.
UM, WE ALSO HAD A ROOFTOP DECK POOL, WHICH WE THINK IS GONNA BE VERY PEAK, UM, FROM THE VIEW YOU CAN SEE OVER I 30, UH, WITH VERY LITTLE OBSTRUCTION, THE DOWNTOWN GIVING YOU A, YOU KNOW, PHENOMENAL VIEW.
[01:25:01]
AGAIN, UM, IT'S A CLASS A WANTED IT TO BE.UH, WE DIDN'T WANT THERE TO BE ANY
UM, SO AS AARON BRIEFLY, UH, ALLUDED TO 2022, SINCE THEN, UM, I THINK EVERYONE'S MENTIONED THERE HAVE BEEN SOME HEADWINDS IN THE CAPITAL MARKETS.
AND SO ONE OF THE ROUTE WE HAD TAKE ON THIS DEAL IS TO GET HU FINANCING IN PLACE AND PER HUDSON REQUIREMENTS, WE WILL HAVE TO CHANGE THE PFC FROM PREVIOUS, UH, AFFORDABILITY REQUIREMENT THAT WE RECEIVED IN 2022 TO THE NEW LEGISLATION THAT WAS UPDATED IN 2024, WHICH ALLOWS NOW FOR 10% UNITS TO BE 60% OF A MI, WHEREAS PREVIOUSLY ALL 50% OF OUR FOUR UNITS GONNA BE 80% OF A I.
UM, I THINK THAT'S PRETTY MUCH ALL I, ALL I HAVE.
UM, FOR QUESTIONS, COULD YOU SUMMARIZE THE, THE TERM CHANGES? YEAH, SO I MEAN REALLY WE, WE JUST ADDED THAT BUMP DOWN FROM 50% OF 80, SO WE DID 40% OF 80, AND THEN 10% IS 60.
SO, YOU KNOW, THEY WERE GRAND, THEY WOULD ALREADY APPROVED THAT, THAT, UH, THE, THE OLD AMOUNTS THAT ARE REQUIRED NOW THAT THE LENDERS REQUIRE NECESSARY, WERE JUST NOT PAID THOSE AFFORDABILITY.
SO THE LENDER IS REQUIRING THEM TO, TO COMPLY WITH HB 2071, EVEN THOUGH THEY DON'T HAVE TO.
YEAH, LIKE, LIKE SAID WE WE'RE AT THE, UH, MERCY AS THOSE WHO HOLD THE LETTERS.
I JUST, JUST CURIOUS, YOU STILL HAVE, UH, THE FULL SUPPORT OF THE DISTRICT SEVEN COUNCIL? YES, WE DO.
VICTOR, DO YOU HAVE NO COMMENTS? NOT ON THIS ONE.
IS THERE A CATCH I KEEP WAITING FOR? OKAY.
THERE'S GOTTA BE A CATCH, RIGHT? THANKS FOR NOT ASKING FOR ANYTHING ELSE.
AND JUST SO, UM, YOUR BOARD MEMBERS, NO.
SO WHAT'S HAPPENED BETWEEN THE FIRST APPROVAL AND NOW, OR HAVE YOU BEEN? UH, SURE.
UM, SO I THINK, SO WHEN WE FIRST APPROVED THIS, WE WERE UNDERWRITING THE TRADITIONAL DEBT FINANC BID ABOUT 60% POINT COSTS, UM, OF BEING TWO INTO LONG TERMS. UM, AND THAT REQUIRES 40% EQUITY TO BE RE RAISED FOR THE EQUITY IN THAT TIME, BECAUSE OF THE RISE INTEREST RATES, THAT'S BECOME A LITTLE BIT HARDER TO, TO OBTAIN.
AND SO WHAT WE'RE ABLE TO DO WITH THE HU LOAN IS IT'S A 30 YEAR TERM.
UM, IT'S AN EIGHT, IT, IT'S AN AGENCY LOAN.
UM, AND THEIR FUNDING STANDARDS ARE A LITTLE BIT MORE STRENUOUS, BUT BECAUSE, UH, IT'S A LONGER TERM LOAN, THEY'RE ABLE TO GIVE YOU A LITTLE BIT MORE PROCEEDS.
SO
SO LIKE 97% LD? NO, I THINK IT, SO WE'RE, WE'RE CONSTRAINED BY DSCR TEST.
UM, AND SO I THINK IT COMES OUT TO AROUND 70%, SO WE'RE STILL PUTTING UP.
ANY OTHER QUESTIONS OR COMMENTS BEFORE MINE? ANY COMMENTS FROM COUNCIL SUMMER? UM, I'LL JUST, JUST FOR THE BOARD TO BE AWARE, THERE ARE SOME ADDITIONAL CHANGES TO THE TERM SHEET, BUT REALLY THE CHANGES FROM THE PRIOR TERM SHEET, WHICH WAS DONE UNDER THE OLD LAW, UM, TO UPDATE FOR KIND OF OUR UPDATED TERMS, WHICH ALLOW FOR, UM, AN EARLY TERMINATION, UM, OF THE PROJECT AFTER YEAR 40, UM, WITH A, THE PAYMENT, IT'S, IT'S REALLY, IT'S UPDATING IT TO WHAT OUR TYPICAL TERMS ARE NOW.
UM, IT'S JUST, IF YOU ACTUALLY LOOK AT THE TERM SHEET, IT, THERE'S QUITE A FEW CHANGES, BUT ALL OF THOSE CHANGES TRACK WITH THE UPDATES WE'VE MADE OVER THE LAST TWO AND A HALF YEARS SINCE HB 21 WAS PASSED.
SO JUST FOR, FOR THAT TO BE CLEAR.
ANY OTHER QUESTIONS OR COMMENTS? SAY NONE.
WE HAVE A MOTION ON THE FLOOR.
[01:30:02]
SCOTT, HANDLE MOVE.RONALD STINSON APPROVED BLANK BLANKENSHIP.
YVONNE, IS HE STILL LOCKED UP YET? I DON'T.
UH, ITEM NUMBER NINE, CARRIES.
DISCUSSION REGARDING UPDATES TO THE DALLAS HOUSING RESOURCE CATALOG AS PRESENTED TO HHS COMMITTEE ON 10 21 25.
UM, I HAD REQUESTED THIS BE PUT ON THE AGENDA, UH, IN CASE WE DID HAVE AN UPDATE.
UH, WE DID NOT HAVE AN UPDATE AS OF TODAY, SO IF THERE IS ANY COMMENTS OR QUESTIONS, SEEING NONE, WE'LL MOVE ON TO ITEM NUMBER 11.
DISCUSSION AND APPROVAL OF DPFC COMMITTEE APPOINTMENTS.
I DID SEE IF Y'ALL LOOK AT THE, UH, ITEM NUMBER 11, THE AGENDA.
WE HAVE A FEW VACANCIES, UH, DISTRICT UNDER REAL ESTATE COMMITTEE DISTRICT, UH, 15 DIRECTORS
I AM APPROVING THAT APPOINTMENT.
DO WE HAVE ANY OTHER REQUESTS FOR APPOINTMENTS? WE HAVE A VACANCY ON GOVERNANCE PLAN ON FINANCE.
SEEING NONE AND NONE HAVE COME TO ME.
UH, DO NOT BELIEVE WE NEED TO VOTE ON THIS OTHER THAN JUST THE RECOGNITION OF THE APPOINTMENT.
SO CONGRATULATIONS, DIRECTOR, AND, UH, WE WILL PUT YOU ON THE LIST FOR THE REAL ESTATE COMMITTEE.
MOVING ON, ITEM NUMBER 12, DISCUSSION NOMINATIONS AND ELECTION OF DPSD BOARD TREASURER.
UM, I, UH, AS, AS WE ALL KNOW, UH, ELECTED DIRECTOR CALL, UH, YOU KNOW, HAD PASSED AWAY.
AND, UM, SO I DO HAVE AN OPENING, UH, FOR TREASURER.
I DID HAVE, UH, ONE BOARD MEMBER, UM, COME TO ME, UH, SO WE OPENED THE FLOOR FOR NOMINATIONS.
HE IS WELCOME TO SELF NOMINATE.
DO WE HAVE ANY OTHER NOMINATIONS FOR THE OFFICE OF TREASURER? UH, FOR AN OFFICER'S APPOINTMENT? I WOULD LIKE TO MOVE FOR ROLL CALL.
SAM, WE ONLY, WELL WE MAKE ONE NOMINATION, BUT NONETHELESS, I LIKE CONFIRM.
RIGHT? SCOTT HANSEL, ONE FOR HOLMES.
APPROVED KEVIN WINTER APPROVED LAUREL STONE APPROVED.
KEITH AL RUTH, COURTNEY, SPELL A SUIT.
UH, DIRECTOR HOLMES, YOU'RE NOW CONFIRMED AS TREASURER
[01:35:01]
OF THIS BOND ORGANIZATION.AND AS YOU KNOW, UH, UH, MARK, CAN YOU TELL US JUST A LITTLE BIT ABOUT YOURSELF REAL QUICK? YOU'RE A TAX ATTORNEY AND WHAT ELSE? WHAT ARE THE SURE.
WHY ORGANIZATIONS? WHY I'M UNIQUELY QUALIFIED FOR THIS, UH, AFTER YOU'VE BEEN ELECTED.
WELL, I DIDN'T HEAR ANY DISCUSSION, SO OBVIOUSLY I HAD THE DISTINCT HONOR AND PRIVILEGE OF SERVING AS VICE CHAIR FINANCE WITH, UH, OUR LATE GREAT DIRECTOR, ALAN TALLIS, UM, WHO HIS IMPACT CONTINUES TO GUIDE OUR PATH FORWARD.
UH, I AM, UH, DIRECTOR FROM DISTRICT 10.
UH, MY BACKGROUND IS, UH, I HAVE AN ACCOUNTING DEGREE, UH, AND THEN I MADE THE UNFORTUNATE CHOICE OF GOING TO LAW SCHOOL, UH, WHERE I DECIDED I WOULD BECOME A, UH, TAX ATTORNEY, WHICH I'VE, UH, UH, PRIMARILY BEEN PRACTICING THERE OF STATE AND LOCAL TAXES, WHICH WOULD INCLUDE PROPERTY TAXES FOR 30 YEARS NOW.
UM, AND HAVE HAD THE DISTINCT HONOR SERVING WITH THIS SPINE BOARD NOW, UH, SINCE, UH, 20, 21, 22 NOW.
UM, AND I CERTAINLY LEARNED, UH, A GREAT AMOUNT FROM EACH OF YOU IN, IN THE DISTINCT, UH, PERSPECTIVES AND KNOWLEDGE BASE THAT Y'ALL BRING.
AND, UH, THANK YOU FOR YOUR VOTE.
THE CONFIDENCE IS APPOINTING ME, UH, TREASURER.
AND, UH, I WILL SAY THIS AS I MADE THIS COMMENT TO, UH, PRESIDENT PO HALL.
WHILE I WILL SIT IN ALAN'S CHAIR, I CERTAINLY CAN'T TAKE HIS PLACE.
AND, UH, LOOK FORWARD TO WORKING WITH THE, UH, STAFF, OUR OUTSIDE ACCOUNTANTS, AND EVERYONE ON THE BOARD AS WE, UH, GUIDE THIS, UH, ORGANIZATION FORWARD IN DELIVERING UPON
SO THANK YOU AGAIN FOR THE, UH, FOR THE VOTE OF APPROVAL.
GETTING ANOTHER ITEM ON THE AGENDA WITH THE PHRASE, WE HAVE A GREAT TEAM.
SO THANK EACH AND EVERY ONE OF YOU FOR YOUR SERVICE TO THE C BOARD, EACH ONE, EVERY ONE OF YOU ARE GREATLY APPRECIATE.
MOVING ON TO ITEM NUMBER 13, DISCUSSION AND APPROVAL OF 20 25, 20 26 DPFC BOARD MEETING DATES, SAM.
OKAY, SO WE PUT THIS ON THE AGENDA TO LAST TIME, UH, MILLION NEED TO, UH, APPROVE THIS, BUT EVERY YEAR SINCE CREATION WE HAVE, I JUST NEED TO BACK THROUGH OUR, UH, OUR, YOU KNOW, UH, PREVIOUS BOARD MEETINGS.
SO WE WANTED TO PUT IT BACK ON, UH, WITH THESE DATES THAT WE PROPOSED AND, UH, BRING IT FORWARD APPROVAL.
YEAH, IT LOOKS LIKE THE ONLY CHANGES TO THE, UH, THE LAST, THE, THE FOURTH TUESDAY IN NOVEMBER OR DECEMBER, WHICH MAKES SENSE.
UM, WHEN WE COME AR IF WE GET, AS WE GET CLOSER TO THOSE DATES, IF WE DECIDE TO COMBINE THE MEETINGS LIKE WE DID THIS THIS YEAR, YOU KNOW, WE CAN DO SO THEN, UM, BUT I THINK THIS IS AN ITEM THAT WE CAN SAY, I CAN SAY WITHOUT OBJECTION.
THIS IS SOMETHING THAT WE CAN APPROVE, UH, VOTE IF WE DON'T HAVE ANY OTHER QUESTIONS OR COMMENTS AT THIS TIME.
ALL IN FAVOR OF THIS SCHEDULE SIGNIFY BY SAYING AYE.
UH, THIS TENTATIVE SCHEDULE IS NOW APPROVED.
ITEM NUMBER 14, YOUR VIEW AND DISCUSSION OF THE EPSC TREASURER'S REPORT.
NOW, MARK, I THANK YOU'VE BEEN IN OFFICE FOR A GOOD FOUR MINUTES.
NOW YOU HAVE AN ENTIRE AGENDA ITEM.
UH, SAM, WOULD YOU LIKE TO, UH, DO WE, DO WE HAVE SHANNON ONLINE? YEAH, FOR YOU.
I GONNA KICK IT OVER TO SHANNON IF WE HAVE HER ONLINE.
DO WE THINK SHE'S ACTUALLY ON VACATION? OH, IS SHE ON VACATION THIS WEEK? YES, BUT KRISTEN IS HERE FROM BROWN GRAHAM.
IF IT'S ALL RIGHT, WOULD YOU MIND TURN ON YOUR CAMERA? OH, IT ACTUALLY DOES NOT WORK.
IS THAT I HAVE TO BE ON CAMERA TO BE ABLE TO HAVE TO BE ON CAMERA.
WE, WE DO HAVE A, WE HAVE A REPORT.
WE HAVE A REPORT IN THE, UM, ANY QUESTIONS? YEAH, IS THERE ANY QUESTIONS ON, ON THE TREASURER'S REPORT IN BETWEEN NOW AND OUR NEXT MEETING, UH, IN THE, OUR NEW TREASURER AND, UM, GROUND GRAND, UH, GROUND GRAND AND COMPANY CAN MEET AND, UH, WE'LL FLUSH IT OUT AT OUR NEXT MEETING.
FIRST ORDER OF BUSINESS ESTABLISHING RELATIONSHIP.
AND CHRIS, UNLESS THERE ARE SOME QUESTIONS FROM THE FLOOR, WE ALWAYS, WE ALWAYS ALLOW QUESTIONS.
[01:40:02]
SEEING NONE.AND WE'LL MOVE ON TO ITEM NUMBER 15, DPFC PIPELINE REPORT, BRIEFING AND DISCUSSION, SAM.
UM, I WILL TRY TO KEEP THIS BRIEF HERE.
UH, THE, AS FAR AS OUR LEASING PROPERTIES, UH, THE ONLY UPDATE WE WOULD'VE WAS THE BENCH AND WE JUST GOT A BRIEFING ON IT.
AND, UH, YOU KNOW, AND, AND THAT'S THEIR REQUEST.
AND, UH, I'M GLAD WE'RE DOING THAT.
UH, UNDER CONSTRUCTION, UH, IT STARTS NEXT YEAR.
YOU SHOULD HAVE, UH, THE EIGHT ONLINE, UM, UH, IN HUGE, UH, ONE NEXT YEAR.
UM, AS FAR AS OUR FULL APPROVAL, UH, THERE'S NOTHING REALLY THERE, UH, BUT WE'LL PROBABLY PUT SOMETHING OFF.
UH, NOW THAT WE'VE PULLED ONE FROM FULL APPROVAL, UH, BACK INTO THE VAULT WITH MARKS FOR BEAR PARK, UH,
UH, SO WE'LL THROW SOMETHING ABOUT THAT, UH, ON, YOU KNOW, BEFORE OR DURING OUR, UH, PIPELINE REVIEW NEXT TIME AROUND, UM, PROJECTS IN PRELIMINARY ROLE.
UH, WE HAVE, WE HAD GOOD HOMES GET DEFERRED AT, UH, OUR LAST CITY COUNCIL MEETING, UH, THAT WE HAD PROJECT ADD.
AND, UH, THE DEVELOPER HAS DECIDED TO ACTUALLY BRING IT BACK TO CITY COUNCIL.
AND, UH, THEY'RE WORKING ON ACCOMMODATING SOME OF THE REQUESTS THAT CITY COUNCIL WANTED TO SEE BEFORE, UM, DOING THAT, UH, OR BEFORE, YOU KNOW, VOTING ON THAT PROJECT.
UM, AND, UH, 5, 5 5, UH, LBJ, THAT PROJECT WE'RE WORKING ON VINYL
UH, ADDITIONAL NAME, UH,
THAT ONE WAS UN UNPAUSED BECAUSE THEY WERE WAITING FOR, UH, FUNDING TO START FREEING UP FROM THE, UH, A CERTAIN AREA WHERE, WHERE IT WAS PART OF A BIG EXCUSE COULD BE, UH, DEVELOPMENT.
AND THEY ARE, UH, THAT, YOU KNOW, ORIGINAL DEVELOPER IS, IS TAKING A GOOD CHUNK OF ECO DEV MONEY TO MAKE THAT HAPPEN.
SO THEY'RE GONNA KEEP IT, UH, BUT THEY WERE JUST NOTIFIED BY THEM THAT THEY WANTED BY THE ECONOMIC DEVELOPMENT TEAM THAT THEY'RE READY TO, UH, REOPEN THE CONVERSATIONS.
SO THAT PROJECT WILL BE, UH, MOVING FORWARD AGAIN.
AND THEN, UH, AND THEN THAT'S IT THAT WE HAVE ON OUR, UH, PIPELINE UPDATES.
ARE THERE ANY QUESTIONS? UH, YEAH, I DID HAVE ONE QUESTION.
UM, SOMEONE FROM THE COMMUNITY HAD ASKED THAT WE SEND THEM A MAP OF OUR P UH, PFC DEVELOPMENTS, AND I TOLD 'EM THAT, THAT WE COULD, UM, UH, THAT IT IS POSTED ONLINE ON OUR WEBSITE.
I TOOK PICTURE ALSO THIS ONE, I THINK HE COPIED EVERYTH.
I HE BLIND COPIED YOU ALL, SO I SEE.
I REPLIED AND, AND I DID THAT FOR A COUPLE OF REASONS.
ONE GREAT JOB ON THE WEBSITE IN THE LINKEDIN PAGE.
THE CITY CAN'T TALK TO THEM BECAUSE THEY'RE IN LITIGATION.
THEY CAN'T TALK TO RAIN CRAWFORD, CAN'T TALK TO DARRYL BAKER, YOU GUYS, THEY SUIT THE CITY.
I CAN TALK TO THEM, RIGHT? AARON PROBABLY MAYBE CAN TALK TO THEM.
AND SO I, I DID THAT REALLY JUST TO SHOW RESPONSIVENESS KNOWING THAT JAMES AND THE CITY COULD REPLY.
I THINK ALSO THE INTENT THAT YOU'RE TRYING TO HAVE AS MUCH INFORMATION ONLINE AS POSSIBLE, SO WE'RE NOT CONSTANTLY RESPONDING TO THESE REQUESTS.
THEY VERY, VERY WELL THAT, THAT'S THE ONLY REASON I MENTIONED IT, UH, IS BECAUSE ALL OF OUR INFORMATION IS PUBLIC INFORMATION.
AND THE MORE WE GET OUT THAT OUT ALL OF OUR CONSTITUENCIES, YOU KNOW, THEY CAN SEE THAT, UH, WE ARE INCREDIBLY TRANSPARENT.
UH, ONE THING I SUGGESTED IS THAT, UM, AND I THINK, I'M SORRY, NOT JUST ME, BUT OTHER PEOPLE ON THE BOARD MIGHT DO AS WELL, IS THAT WE SEND THIS, UH, PIPELINE REPORT TO OUR COUNCILMAN.
YOU KNOW, JUST TAKE IT OUT OF THE, UH, PACKAGE AND SEND THE PDF TO YOUR COUNCILMAN AFTER EVERY MONTHLY MEETING.
THIS TAKES A FEW SECONDS, YOU KNOW, TO SEND PDF AND THAT WAY THEY CAN SEE, UH, HOW TRANSPARENT WE ARE.
AND IF THEY HAVE QUESTIONS, HAS A QUESTION ABOUT WHETHER ANY DEVELOPMENTS,
[01:45:01]
UH, YOU KNOW, THEY CAN SHOW THAT.NOW THE ONLY ON MY, LET'S SEE, UH, BUT THIS MAP, DOES IT SHOW COUNCIL DISTRICTS OR DO WE, DO WE WANT PUT COUNCIL DISTRICTS ON THE, ON OUR, UM, SO
OR IS IT ON A, IS IT IN A HIDDEN COLUMN? PERHAPS? WE'RE JUST NOT WELL, NO, IT'S, IT'S NOT, UH, I DON'T BELIEVE IT IN THIS, UH, ANY OF THE DOCUMENTS HERE.
WE CAN CERTAINLY THROW IT ON THERE.
THAT'S SOMETHING YOU GUYS WOULD LIKE TO HAVE ON THERE.
JUST SAY COUNCIL DISTRICT AND THEN PUT THE NUMBER, EVEN THROW IT IN RIGHT NEXT TO A PROJECT.
IF THERE'S YES RIGHT THERE THAT THAT'D BE GREAT.
THAT WAY WHENEVER I, WHENEVER WE DO FORWARD IT, IT STANDS OUT A LOT MORE.
I HAVEN'T ASKED ANY QUESTIONS ABOUT IT.
SO WOULD YOU EXPLAIN WHEREVER THEY'RE COMING FROM OR I THINK WHAT THE, THAT IS WITH THAT? YEAH, I THINK IT'S, IT'S A, I BE CAREFUL WHAT I SAY.
WELL, IF YOU DUNNO, THEN JUST, I, I DIDN'T KNOW THESE PARTICULAR INDIVIDUALS.
HISTORICALLY, THERE HAVE BEEN A LOT OF LOW INCOME PROJECTS CONCENTRATED WITH ONE AREA.
DO THEY COME FROM THIS BOARD? I CAN GENERALLY SAY NO, WE DON'T.
WE HAD ONE LIGHT TECH PROJECT.
NO, WE PROPOSED ONE DISTRICT 10, CORRECT.
I THINK THEY JUST CON LATE AGENCY AND PFC.
AND IT'S, IT'S UNDERSTANDABLE.
IF YOU'RE NOT AT THESE MEETINGS AND IF YOU'RE NOT INVOLVED WITH, YOU DON'T, YOU DON'T KNOW WHAT ALL THE ACRONYM SCHEME REALLY
THEY'VE DONE BY ANOTHER COUNTY OR THE, UH, THE HOUSING AUTHORITY OR THE STATE, SOME OF THE ENTITY.
SO A LOT OF THE ANGST IS ALWAYS DIRECTED TOWARDS, UH, CITY OFFICIALS AND, AND EMPLOYEES AND WHATNOT.
UH, WE JUST TRY TO RESPOND AS BEST WE CAN, BUT THE BOTTOM LINE IS THAT IN OUR INVENTORIES IS ON THIS PIPELINE.
THAT'S IT BEEN HERE ALMOST FIVE YEARS.
SO I WANTED TO BE ABLE TO RESPOND WHEN NEEDED, YOU KNOW, INTELLIGENTLY.
BUT I SAID, WELL, I DIDN'T KNOW SINCE OTHER PFCS AROUND THE COUNTRY OR THE STATE HAD BEEN INTERVENING AT TIMES, YOU KNOW, IN OTHER COUNTIES, I DIDN'T KNOW IF THAT MEANT SOMEHOW SOMETHING HAD BEEN DUMPED IN OUR AREA OR UNDER OUR CONTROL THAT WE KNEW NOTHING ABOUT.
SO I WANTED TO MAKE SURE THAT THAT ANSWERS THAT.
WELL THESE, YEAH, THESE ARE JUST OUR PROJECTS IN THE PIPELINE REPORT.
THEY'RE ARE CERTAINLY TRAVELING PFCS IN DALLAS, BUT, UH, WE ON IT, WE DON'T HAVE ANYTHING TO DO WITH THAT.
WE'VE BEEN ABOVE THE RECORD CONTROL.
NUMBER ONE, JUST A REMINDER THAT HALF OF WHAT IS, UH, UM, DEVELOPED AS MARKET, AND I DON'T KNOW THAT CONCENTRATE POVERTY, RIGHT? UM, OKAY.
AND THEN, UH, SECONDLY, SAM, I'M LOOKING AT THIS VERSION ONE THAT HAS THE DATES.
AND I NOTICED UNDER FULL APPROVAL THAT WE'VE GOT, I I'M, I'M CONCERNED ABOUT THREE PROJECTS IN PARTICULAR THAT HAVE GOTTEN STALE.
UM, THOSE TWO LDG PRODUCTS AND THE MARCHER, UM, WE'VE HEARD FROM MARK SPUR, IT SOUNDS LIKE THEY'RE, UH,
UH, SO IS, IS THERE ANYTHING THAT WE SHOULD KNOW ON THE RESERVE AT LANCASTER, THE LEGACY OF WHITE ROCK AND COOMBS CREEK, ALTA VISTA, UH, BEFORE WE START MOVING THE, UH, TO TERMINATE THOSE, UH, MOUS? YEAH.
UM, GOONS C CREEK FOLKS ARE TRYING, THEY'RE TRYING TO GET SOMETHING FINANCED.
HAD A COUPLE CONVERSATIONS WITH THEM BEFORE AARON CAME ON WITH JUST THE SUMMER OF TRACTION AND EVEN AFTER AARON'S COME ON THAT THEY HAVEN'T GONE COMPLETELY STALE.
UM, THEY'RE TRYING TO GET A HUB LOAN, BUT IF THEY'RE LITTLE INEXPERIENCED IN, THIS IS THEIR FIRST MULTIFAMILY PROJECT, SO IT'S KIND OF GOING AND GETTING HIS FINANCE, THEY'RE, THEY'RE MOVING ON.
YOU KNOW, THEY'RE, THEY'RE INVESTING THEIR OWN MONEY.
THEY'RE, THEY'RE TRYING TO, UH, MAKE HAPPEN.
WHAT ABOUT LDG AND THOSE, THOSE OTHER TWO, JAKE, WHEN
[01:50:01]
I HAD A CONVERSATION WITH HIM AT THE LAST AGENCY MEETING, ACTUALLY, UH, JUST A COUPLE WEEKS AGO, UH, HE SAID THAT THEY OWNED THOSE PROPERTIES AND THEY WOULD LIKE TO DO THEM AS POC STILL, BUT FINANCIALLY IT'S JUST TOUGH RIGHT NOW TO MAKE THE NUMBERS WORK ON THOSE TWO.UM, AARON AND I COULD SCHEDULE A CALL WITH HIM AND, AND, YOU KNOW, REVISIT, UH, THOSE TWO BEFORE MAKING ANY TYPE OF OFFICIAL DETERMINATION IF YOU GUYS CAN.
I THINK THAT PROBABLY, YEAH, AS TO MY CONCERN FOR THE, I MEAN, THE BIGGEST CONCERN WE HAVE IS WE'RE GONNA FILTER THROUGH THIS, RIGHT? AND SO, YOU KNOW, IF WE WERE LOOKING AT THE MOCKINGBIRD CORNER EARLIER, UM, IF I DIDN'T KNOW THAT, UM, THAT OTHER MOCKINGBIRD SITE WE HAD APPROVED HAD TURNED INTO A, A DATA CENTER AND GOT FLIPPED THAT WAY, I PROBABLY WOULD'VE FELT A LOT DIFFERENTLY ABOUT, UH, THE
AND SO THAT'S THE BIGGEST THING.
UM, BUT THE REALITY IS YOU GET STALE AND YOU'VE BEEN SITTING ON IT FOR THREE YEARS, IT'S NOT GONNA GET FINANCE.
SO LET'S ALL MOVE ON WITH LIFE, RIGHT? YEAH.
UM, THAT'S A VERY GOOD QUESTION.
UH, AS SUMMER, DO WHAT, WHAT DO WE HAVE, DO WE HAVE IN OUR CURRENT TERM SHEETS, UH, A, UM, AN EXECUTE BY DATE?
THIS IS ON THE PIPELINE ITEMS. UH, 18 AND 19.
NO, WE DON'T HAVE LIKE A DROP DEAD DATE.
UM, GENERALLY SPEAKING, UM, AND LIKE YOU SAW THIS WITH THE, THE LARC SPUR, UM, ONCE WE GET PAST ABOUT 24 MONTHS, UM, IT, IT REALLY, WE NEED TO START COMING BACK TO YOU GUYS.
THAT'S KIND OF THE, THE LENGTH OF TIME THAT, UM, WE'VE TYPICALLY GONE, UM, IS ABOUT TWO YEARS BEFORE COMING BACK AND, AND, YOU KNOW, GIVE YOU GUYS AN UPDATE AND LETTING YOU KNOW WHAT'S GOING ON AND ASKING FOR GUIDANCE OR, OR UPDATED TERMS. UM, BUT IF WE WANT TO PUT SOMETHING LIKE THAT IN THERE, THAT'S CERTAINLY SOMETHING WE CAN EXPLORE.
UM, IF YOU GUYS WOULD LIKE TO DO SO.
WELL, I'M GONNA SUGGEST THAT NEXT WEEK'S, UH, I'M SORRY, NEXT MONTH'S, UH, ENTERING MEETING THAT MAYBE WE, UM, ASK FOR AT LEAST FORMALLY AT THE MEETING, PUT ON AN AGENDA ITEM TO, UH, ASK FOR SOME UPDATES ON A FEW WITH A STALE, FOR LACK OF A BETTER WORD, UM, FULLY APPROVED ITEMS. WE HAVE NEW BOARD MEMBERS NOW AND, UH, YOU KNOW, THEY, THIS, THIS WAS DONE THREE YEARS AGO AND UH, I, WE KNOW THAT IT TAKES, IT CAN TAKE THREE TO FOUR YEARS FROM THE TIME WE APPROVED SOMETHING TO START TURNING DIRT ON A PROJECT.
BUT NONETHELESS, THEY HAVEN'T COME BACK FOR A FINAL APPROVAL YET.
UM, I THINK IT WOULD BE A GOOD IDEA.
PERHAPS I, I, I'M HEARING THAT OTHER PEOPLE MIGHT SAY THE THING, SAY THE THING, BUT, UH, I DO HAVE SOME AT LEAST NEED TO COME BACK TO US
YOU KNOW, FOR A CONTINUAL CONTINUING RESOLUTION OR WHAT HAVE YOU.
THAT'S SOMETHING WE CAN TALK ABOUT NEXT TIME.
SCHEDULE CALLS, YOU KNOW, WE'VE HAD THESE CONVERSATIONS BEFORE.
SO JUST WHAT, UH, SW DID TODAY, YOU KNOW, I JUST THOUGHT THAT WAS ONE.
UM, SO EVEN WHAT WE'RE SPEAKING OF PUTTING IN SOME TYPE OF CLAUSE OR WHATEVER THAT, UH, IS THERE SOMETHING IN THERE WHERE WE CAN, I DON'T KNOW IF THIS GOES TO, UH, LEGAL OR JUST FOR YOU, AARON, WHERE MAYBE THEY, THEY ARE REQUIRED, THEY'RE HAVING PROBLEMS AND NOTHING HAS HAPPENED, SAY AT 18 MONTHS, UH, YOU, YOU SHOULD APPEAR HERE AND BRIEF US ON IT BECAUSE AT 24, 20 FOURTH MONTH WE'RE DROPPING ASS.
SO MAYBE, UH, JUST TO COME FORTH AND, AND SPEAK ABOUT WHAT'S GOING ON.
UH, EITHER WE AGREE OR WE DON'T, BUT AT LEAST WE, UH, HOPEFULLY WE'LL UNDERSTAND, UH, YOUR ISSUES AND CHALLENGES THAT YOU'RE DEALING WITH.
I MEAN, I DON'T KNOW WHAT TYPE OF STATEMENT THAT COULD BE.
I'M THAT'S BECAUSE IT'S A GREAT REPORT.
STAFF IS APPRECIATED FOR PUTTING IT TOGETHER BECAUSE I THINK IT DOES SHOW THAT WE'RE VERY TRANSPARENT AND TOTALLY CAN LET ANYONE KNOW VIA THE COMMUNITY ACTIVIST OR WHOMEVER THE TOP OF OUR HEAD, YOU KNOW, WHAT WE'RE DOING HERE AND THE STATUS OF OUR PROJECT.
SO LET'S, IT GOES TO STAFF AND TO THIS BOARD ONCE AGAIN.
IT'S, IT'S
JUST THE AMOUNT OF PEOPLE THAT HAVE TO TOUCH EACH ONE OF THESE DEALS IS INCREDIBLY LARGE
SO, YOU KNOW, WE GET SOMETHING THROUGH COUNCIL, IT'S LIKE, LET'S GO MAN.
NOW ARE WE DOING, SO QUICK QUESTION.
I DON'T, I DON'T WANNA CONTINUE TO BELABOR.
[01:55:01]
A GREAT POINT.BUT, UH, SINCE A COUPLE OF COUNCIL PEOPLE, UH, WHICH IS WONDERFUL, THEY TRULY DO NOT UNDERSTAND, UH, H-F-C-P-F-C.
SO DO YOU GUYS PROVIDE SOME TYPE OF, OR DO THEY HAVE TO ASK FOR IT? DO YOU GUYS OFFER, UH, SOME TYPE OF SESSION, IF YOU WILL, UH, TO EXPLAIN THIS IN, IN LAYMAN'S TERMS AS BEST AS POSSIBLE, WHAT WE DO, WHAT WE'RE FOR? 'CAUSE THE COUNCIL CREATED US, RIGHT?
I JUST TRYING TO AT ONCE QUARTER AND SIT DOWN, WE PUT TOGETHER A QUICK, NOT QUICK, BUT PRETTY, UH, BASIC EXPLANATION OF, OF HOW THIS CORPORATION WORKS AND HOW THE HFC WORKS.
SO I'VE SAT DOWN WITH SEVERAL COUNCIL MEMBERS OVER THE LAST COUPLE MONTHS, TRIED TO, YOU KNOW, TEACH THEM THAT OBVIOUSLY IT TAKES MORE THAN ONE HOUR LONG CONVERSATION, BUT THE MORE I GET IN FRONT OF THEM OR THAT THEY WILL BE AT THE TOP THEIR MIND.
SO THAT'S WHY I CONTINUE TO URGE YOU ALL AS BOARD MEMBERS AS BY THE TIME TO TAKE THAT PIPELINE BOARD.
YOU JUST HAVE TO FIND THE CONVERSATION.
WE TALKED ABOUT THESE, UH, YOU KNOW, WE WANNA CARRY OUT YOUR, YOU KNOW, AS, AS AGENTS OF THE COUNCIL.
UM, I MET WITH JAMES ARMSTRONG BEFORE THIS MEETING.
YOU KNOW, HE CAME FROM THE PRIVATE SECTOR, HE'S NOW, OR TWO PERSON HOUSING.
AND ONE OF THE THINGS HE BROUGHT UP, HE'S DOING A VIDEO.
THEY ASKED HIM TO DO A VIDEO EXPLAINING H-F-C-E-F-C AND HE'S SEEN OUR WEBSITE.
HE SAID, YEAH, HFCS ISN'T AS GOOD AS YOURS.
WELL LET'S, YEAH, LET'S TALK TO AARON
YEAH, BUT THE NEW SHINY TOY, RIGHT? ANYWAY, BUT HE DID SAY THAT HE IS LIKE, YEAH, HE TOLD YOU HE WAS WORKING ON THE BYLAWS FOR, FOR BOTH OF WHAT HAVE YOU.
SO I THINK IT'S GONNA TAKE A MULTIFACET.
NEEDS COME FROM YOU, ALL OF US, WHAT HAVE YOU.
PEOPLE STILL TO THIS DAY, DON'T THINK THAT WE GET LEASE PAYMENTS.
LIKE, WELL WE HAVE FIVE AND A HALF MILLION DOLLARS IN THE BANK.
WHERE DO YOU THINK IT CAME FROM? OR SOME OF IT ANYWAY.
SO I THINK WE'RE GETTING THERE.
WE'RE DOING THE RIGHT, TAKING THE RIGHT STEPS.
THE DEVELOPMENT COMMITTEE CERTAINLY IS AWARE OF US, BUT THAT I CAN ASSURE YOU.
ANY OTHER QUESTIONS OR COMMENTS ABOUT THE PIPELINE? ALRIGHT, WE'LL MOVE ON TO ITEM NUMBER 16.
WHAT DOES THAT SAY? AURN ADJOURNED.
MOVE BY DIRECTOR MONTGOMERY SECOND.
WHERE WAS THAT? I BELIEVE DID YOU SECOND THAT? DIRECTOR STONE.
A MEETING NOW ADJOURNED AND WISHING YOU ALL A VERY SAFE AND HAPPY HOLIDAYS AND HAPPY NEW YEAR.