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ALL RIGHT. GOOD AFTERNOON EVERYBODY. HAPPY NEW YEAR.
[Economic Development on January 6, 2026.]
IT'S JANUARY THE 6TH. THE TIME IS 1:03 AND WE'RE CALLING THE ECONOMIC DEVELOPMENT COMMITTEE MEETING TO ORDER FIRST.ITEM IS THE APPROVAL OF THE DECEMBER 1ST MINUTES.
IS THERE A MOTION? IT'S A MOTION. IS THERE A SECOND? SECOND. ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES.
WE'LL NOW MOVE ON TO BRIEFING ACTION ITEM A. GOOD AFTERNOON.
CHAIR. IS THIS ON OKAY. I'M KEVIN SPATH, DIRECTOR OF THE OFFICE OF ECONOMIC DEVELOPMENT.
TODAY WE HAVE A BRIEFING ABOUT THE DALLAS HOUSING OPPORTUNITY FUND.
IT'S AN ANNUAL PROGRESS UPDATE REQUIRED BY THE AGREEMENT THAT THE CITY HAS WITH WITH LISC.
SO AT THIS POINT, I'LL ASK TO HAVE FOLKS JOIN ME FROM LISC AND FROM TREK.
SO BEN GLISPIE, THE SENIOR DIRECTOR OF THE, OF FUND INVESTMENTS FOR LISC, AS WELL AS BRIAN MADDOX, VICE PRESIDENT OF FUND DEVELOPMENT, AND WITH TREC, JAMEE JOLLY, THE CEO, AND CLINTON HILL, LOAN UNDERWRITING MANAGER.
GOOD AFTERNOON, BRIAN MADDOX WITH LISC FUND MANAGEMENT VICE PRESIDENT OF COMMUNITY DEVELOPMENT.
BEFORE WE START ON THE SECOND PAGE IS OUR STANDARD DISCLAIMER AS AN SEC REGULATED INSTITUTION.
WE MUST PRESENT THE DISCLAIMER AS PART OF OUR AS PART OF OUR DELIVERY HERE.
BEFORE WE DIVE DEEP IN WE HAVE THE AGENDA ON PAGE THREE, WHICH WALKS US THROUGH THE FULL DECK, WHICH INCLUDES AN OVERVIEW OF RISK FUND MANAGEMENT AND TREK.
IT INCLUDES AN OVERVIEW OF THE DHOF, THE DALLAS HOUSING OPPORTUNITY FUND IN AN UPDATE, DEAL SELECTION AND THE IMPACT OF THOSE DEALS OVER THE LAST 12 MONTHS, AND THEN SOME RECENTLY CLOSED TRANSACTIONS AND PERFORMANCE, FOLLOWED BY QUESTIONS AND ANSWERS. SO TO START I WANT TO JUST SAY THAT LISC IS A SUBSIDIARY OF LISC FUND MANAGEMENT. I'M SORRY, IS A SUBSIDIARY OF LISC, WHICH IS A NONPROFIT CDFI WITH 40 YEARS OF FUND MANAGEMENT AND CDFI EXPERIENCE.
LISC HAS 35 BILLION UNDER MANAGEMENT, AND IT DEPLOYED ASSETS AND LISC AS A FUND MANAGER, AS A SUBSIDIARY IS A FUND ARRANGER THAT IS REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND OVER THE PAST SIX YEARS HAS BEEN ABLE TO ESTABLISH 12 DIFFERENT REGIONAL FUNDS AROUND THE NATION, WITH 900 MILLION IN ASSETS UNDER MANAGEMENT. THE SLIDE THAT'S BEFORE YOU KIND OF LISTS SOME OF THE FOLKS WHO ARE INVOLVED AT LIST FUND MANAGEMENT IN THE DALLAS HOUSING OPPORTUNITY FUND TIFFANY DURR IS OUR PRESIDENT, FOLLOWED BY MYSELF VICE PRESIDENT, FUND DEVELOPMENT.
AND THEN BEN GLISPIE WHO'S WHO'S HERE TODAY. AND THEN WE HAVE FOLKS WHO WORK IN THE BACK OFFICE BEHIND THE SCENES HELPING TO MANAGE THE ASSETS AS WELL AS DIRECT PROJECT MANAGEMENT.
SO NEXT SLIDE, I'LL GIVE THIS SLIDE TO TO JAMEE TO TALK ABOUT TREC.
PERFECT. WELL, MOST OF YOU KNOW WHO TREC IS, BUT TREC COMMUNITY INVESTORS IS OUR CDFI ENTITY.
AND SINCE DAY ONE, WE HAVE BEEN PARTNERS, WORKING HAND IN HAND WITH LISC HERE LOCALLY.
WE HAVE LOCAL PRESENCE. WE HAVE GOOD REPUTATION AS BEING A COMMUNITY PARTNER AND HAVING BOOTS ON THE GROUND AND REALLY HAVE THE THE BEST FOR THE COMMUNITY IN MIND AT ALL OF OUR INVESTMENTS THAT WE MAKE.
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WE ALSO ARE WORKING WITH POTENTIAL LENDERS AND THOSE THAT WANT TO PARTNER TO HELP FINANCE THE FUND, AND THEN ALSO THE GOVERNMENTAL AND EXTERNAL AFFAIRS, WORKING THROUGH SOME OF THE CHALLENGES THAT SOME OF THESE PROJECTS COME ACROSS AS THEY'RE TRYING TO GET THROUGH DEVELOPMENT AND UNDERSTANDING SOME OF THOSE CHALLENGES AND THOSE ISSUES.OUR KEY FUNCTION IS UNDERWRITING. SO CLINTON HILL TO MY RIGHT HERE HE IS OUR IN-HOUSE UNDERWRITER AND WORKS WITH ALL OF OUR BORROWERS TO MAKE SURE THAT THEY ARE READY TO GO WHEN IT COMES TIME FOR THE LOAN COMMITTEE.
AND WE'LL TALK IN DETAIL A LITTLE BIT MORE, BUT I'LL LET YOU TAKE IT FROM THERE.
THANK YOU JAMEE. THE DALLAS HOUSING OPPORTUNITY FUND WAS LAUNCHED IN 2022 WITH SEED CAPITAL.
NEXT SLIDE PLEASE I'M SORRY. WITH SEED CAPITAL.
NEXT SLIDE PLEASE. WITH SEED CAPITAL FROM THE CITY OF DALLAS.
$6 MILLION. IN PARTNERSHIP WITH TREC, COMMUNITY INVESTORS, LISC FUND MANAGEMENT WAS ABLE TO ACTIVELY IDENTIFY PROJECTS HERE IN THE CITY OF DALLAS, FUNDRAISE AND COMMUNICATE WITH LOCAL PARTNERS ABOUT THE OPPORTUNITIES THAT THE DALLAS HOUSING OPPORTUNITY FUND BRINGS.
OUR GOAL WITH THIS FUND IS TO DEVELOP, CREATE, PRESERVE 1500 UNITS OF AFFORDABLE HOUSING BEFORE 2031. THOSE UNITS WOULD BE OF MIXED INCOME HOUSING WITH AMENITY RICH ASSETS.
THE ELIGIBILITY FOR AFFORDABLE HOUSING AS DEFINED BY OUR AGREEMENT WITH THE CITY OF DALLAS IS THAT 50% OF THE UNITS WILL BE AT OR BELOW 120% AREA MEDIAN INCOME. HOWEVER, LISC FUND MANAGEMENT HAS A REQUIREMENT THAT 51% OF THE UNITS WILL BE AT 80% OF AREA MEDIAN INCOME FOR THE FUND.
MANY OF THOSE CAPITAL DOLLARS ARE SOURCED THROUGH TRADITIONAL FINANCIAL INSTITUTIONS.
AND SO THE 80% AREA MEDIAN INCOME IS GENERALLY REQUIRED FOR THEM TO RECEIVE THAT KIND OF A CREDIT.
NEXT SLIDE. TO DATE, THE DALLAS HOUSING OPPORTUNITY FUND ACTIVELY HAS $42 MILLION OF CAPITAL RAISED. WE'VE CLOSED TEN LOANS INTO NINE DIFFERENT PROJECTS FOR 40 MILLION 245 MILLION OF TOTAL DEVELOPMENT COST HAS BEEN SUPPORTED WITH THAT $40 MILLION DEPLOYED.
TO DATE WE'VE SUPPORTED 940 UNITS, 880 OF WHICH ARE AFFORDABLE AT THE 120% AREA MEDIAN INCOME. BUT 126 OF THOSE UNITS ARE AT BELOW 80% AREA.
MEDIAN INCOME. 800, I'M SORRY, 826. NEXT SLIDE PLEASE.
WE'VE BEEN ACTIVELY WORKING WITH THE CITY AS WELL AS TRACK AND MANY OF OUR INVESTOR PARTNERS.
ON THIS SLIDE, YOU WOULD BE ABLE TO SEE MANY OF THE BANK PARTNERS WE'VE BEEN ABLE TO BRING TO THE FUND WHO'VE INVESTED EITHER DEBT CAPITAL OR EQUITY CAPITAL. UNDER OUR AGREEMENT, WE ARE ABLE TO BRING EITHER DEBT OR EQUITY CAPITAL TO THE FUND.
AND WE UTILIZE THIS CAPITAL TO DEPLOY IN PROJECTS.
SO WE HAVE MANY REGIONAL AS WELL AS SOME NATIONAL PARTNERS INVOLVED IN THESE IN THIS FUND.
AND SO WE'RE REALLY EXCITED ABOUT THIS, THIS OPPORTUNITY, OUR GOAL BEFORE THE END OF 2026 IS TO RAISE A TOTAL OF 46 MILLION IN CAPITAL. TODAY, AS I MENTIONED, WE HAVE 42 MILLION.
SO WE'RE JUST ABOUT 4 MILLION SHY OF OF REACHING THAT HURDLE UNDER OUR AGREEMENT.
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THE 46 MILLION OF, OF CAPITAL RAISE FOR OUR FOR OUR COMMITMENT WITH THE CITY.NEXT SLIDE. AND I'LL PASS THIS OFF TO BEN. HI.
GOOD AFTERNOON. AS BRIAN MENTIONED, WE HAVE THE HOUSING FUND CLOSED INTO NINE DIFFERENT DEVELOPMENTS TOTALING $245 MILLION OF TOTAL DEVELOPMENT COSTS. OF THE NINE PROJECTS THREE OF THEM HAVE STABILIZED AND ARE 100% LEASED OR 100% LEASED.
AND WE PROVIDED OUR FINANCING, WHICH WILL ENSURE THEY REMAIN AFFORDABLE FOR THE NEXT 15 YEARS, AND I'LL JUST HIGHLIGHT THE NINE THAT WE'VE DONE SO FAR. FOR OUR FIRST DEAL WAS WITH KIVA EAST, WHICH IS ON THE EAST SIDE OF DALLAS. 87 UNITS, KIND OF THE KEY.
WE HAD A $3 MILLION SUBORDINATE LOAN. IT IS STABILIZED, 97% OCCUPIED.
OUR NEXT DEAL WAS OAKLAWN PLACE. OAKLAWN ACTUALLY WAS, WE PROVIDED A $5.4 MILLION LOAN.
SPONSORS, THEY ARE THE RESOURCE CENTER, MATTHEW SOUTHWEST AND VOLUNTEERS OF AMERICA.
IT'S A SENIORS DEVELOPMENT WITH A TARGET TOWARDS THE LGBTQ COMMUNITY.
IT'S ACTUALLY OUR FIRST MONTH BEEN REPAID. SO WE'RE ABLE TO REDEPLOY THAT MONEY INTO NEW DEALS.
SO WE HAD OUR FIRST LOAN REPAYMENT WITH OAKLAWN PLACE.
SO IT'S STABILIZED, OCCUPIED, DOING WELL. NEXT DEAL WE DID WITH SEVENTH STREET DEAL IN BISHOP ARTS SMALL DEVELOPMENT WITH EMERGING DEVELOPER. THIS WAS A NOA TRANSACTION.
THERE'S MARKET RATE LUXURY TOWNHOMES AROUND IT.
THIS ONE IS STILL GOING THROUGH RENOVATIONS, BUT IT IS 83% OCCUPIED.
OUR NEXT DEAL WAS RAWLINS CHATEAU WITH METRO CARE, WHICH I'M SURE MANY OF YOU KNOW, ONE OF THE LARGEST HEALTH CARE PROVIDERS IN DALLAS. IT'S 54 UNITS. HALF THE UNITS ARE SET ASIDE FOR SUPPORTIVE HOUSING FOR FORMERLY HOMELESS.
THE OTHER ARE WORKFORCE HOUSING AFFORDABLE UNITS.
IT'S CURRENTLY BEING STILL BEING RENOVATED. IT'S 71% OCCUPIED.
NEXT WAS JAIPUR LOFTS IN EAST DALLAS. WE PROVIDED A $5.5 MILLION SUBORDINATE LOAN.
THIS ACTUALLY JUST COMPLETED IN THE SUMMER OF LAST YEAR AND FULLY OCCUPIED AS OF Q4.
SO IT'S STABILIZED NOW. 77 UNITS WAS 100% ALL AFFORDABLE.
WE HAVE ARMONIA, WHICH WAS BEING BUILT BY DALLAS CITY HOMES, WELL KNOWN NONPROFIT DEVELOPER.
HERE WE PROVIDED A $1.7 MILLION LOAN. IT'LL BE 15 UNITS IN THE NEIGHBORHOOD.
11 OF THE UNITS ARE AFFORDABLE FOR MARKET RATE.
NEXT SLIDE PLEASE. SO THE DALLAS HOUSING FUND, WE ARE TRYING TO CREATE A MORE INCLUSIVE COMMUNITY.
WE HAVE A GOAL OF HITTING 1500 AFFORDABLE UNITS.
WE'VE FUNDED 800 AFFORDABLE 880 AFFORDABLE UNITS TO DATE, ALMOST 60% OF OUR GOAL.
AND WE DO HAVE A MIX OF INCOME HERE. 940 TOTAL UNITS FUNDED, OF WHICH I ALREADY MENTIONED 826 80.
ALMOST 88% OF THE UNITS ARE AT THIS 80% AMI OR BELOW.
KIND OF FAR EXCEEDING OUR GOAL THAT WE HAVE BEEN GIVEN FOR THE FUND.
SO WE'RE LOOKING FOR DEALS THAT ARE LOCATED IN AREAS OF HIGH OPPORTUNITY THAT ARE MIXED INCOME, THAT HAVE SOME LEVEL OF LOW INCOME WORKFORCE, HOUSING MARKET RATE COMPONENTS TO IT THAT ARE FAMILY FRIENDLY.
ALL OF OUR DEALS REQUIRE AT LEAST A MINIMUM 15 YEAR AFFORDABLE DEED RESTRICTION ON THEM.
AND WE HAVE BEEN LENDING TO A DIVERSE SET OF DEVELOPERS.
OF THE NINE DEVELOPERS THAT WE'VE FUNDED SO FAR, HALF HAVE BEEN WITH NONPROFIT DEVELOPERS, 44% HAVE BEEN WITH WOMEN LED DEVELOPMENT COMPANIES AND 22% WITH RACIAL MINORITIES.
AGAIN, WHEN WE GIVE EXTRA POINTS FOR DEALS THAT HAVE A FOCUS ON SENIORS, VETERANS OR DISABLED.
NEXT SLIDE PLEASE. SO AGAIN, SO WE HAVE A GOAL HERE OF HITTING 1500 AFFORDABLE UNITS.
AGAIN WE'RE ABOUT 60% THERE. WE JUST WANT TO SHOW THAT WE HAVE A PIPELINE OF DEALS THAT GET US, WE HAVE A PATH TO GET TO THAT 1500 UNITS. SO WE HAVE THESE FIVE DEALS ARE KIND OF OUR MOST ACTIVE DEALS THAT WE'RE WORKING ON SUPPOSED TO BE DONE IN THE NEXT YEAR OR TWO, WHICH WOULD GET US TO A GOAL OF 1549 UNITS. JUST WANT TO SHOW THAT WE DO HAVE A PATH FORWARD TO HIT OUR GOAL.
NEXT SLIDE PLEASE. SO ALSO WE WERE WE WERE CHARGED WITH FINDING DEALS KIND OF THROUGHOUT THE CITY.
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NOT JUST CONCENTRATING DEALS AS IT HAS IN THE PAST IN SOUTHERN DALLAS OR THE SOUTHERN SECTOR BELOW I-30.SO I THINK WE'VE DONE A GREAT JOB. WE HAVE SIX OF OUR NINE DEALS HAVE BEEN ABOVE I-30 SOME DEALS IN EAST DALLAS, WEST DALLAS. AND YET WE'RE STILL ARE, STILL ARE SUPPORTING DEALS IN THE SOUTHERN SECTOR AS WELL. SO IT'S KIND OF GOING TO SHOW THE GEOGRAPHIC DIVERSITY OF OUR DEALS HERE. NEXT SLIDE PLEASE. AND SO THE FUND IS MORE THAN JUST CREATING HOUSING UNITS.
WE ARE LOOKING FOR DEALS THAT PROVIDE A LEVEL OF SERVICES TO SUPPORT THE FAMILIES THAT LIVE THERE.
SO AS I MENTIONED EARLIER, EARLIER WITH KIVA EAST, WE DO HAVE A TUITION FREE PRESCHOOL THERE.
SUPPORTING 40 CHILDREN, PROVIDING FREE MEALS DAILY FOR THEM TO MAKE SURE THEY'RE READY TO LEARN.
WE ALSO HAVE ONE OTHER PIPELINE DEAL WITH SAINT JUDE THAT WILL ALSO BE SUPPORTIVE HOUSING FOR THE HOMELESS. AND LASTLY, WE HAVE TWO DEALS WITH VOLUNTEER AMERICA. AND THEY'RE JUST KNOWN NATIONALLY, PROVIDING A VERY COMPREHENSIVE MENU OF SERVICES. SO ALL OF OUR PROJECTS HAVE SOME LEVEL OF SERVICES FOR OUR, FOR THE RESIDENTS THERE. NEXT SLIDE PLEASE.
AND NEXT SLIDE. AND I'LL JUST HIGHLIGHT OUR LATEST THREE DEALS FOR YOU.
SO WE HAVE SKYLINE AT CEDAR CREST. THIS IS A DEVELOPMENT IN SOUTHERN SECTOR WITH BROMPTON COMMUNITY HOUSING DEVELOPMENT CORP. THEY'RE A NONPROFIT DEVELOPER. WE PROVIDED A $5 MILLION LOAN.
IT'S 107 UNITS OF AFFORDABLE HOUSING. 85 UNITS WILL BE AFFORDABLE AT 60% AMI OR BELOW.
NEXT SLIDE PLEASE. WE HAVE PARK LANE TERRACE AND THE VICKERY MEADOW NEIGHBORHOOD.
BUT THIS IS THE THIRD DEAL THAT THEY PROVIDED THEY'VE DONE IN DALLAS.
THEY'RE UNIQUE AND THEY SUPPORT THE REFUGEE COMMUNITY.
AND THEY ARE RENTING TO GENERAL POPULATION AND SUPPORTING REFUGEE COMMUNITY AS WELL.
IT'S STILL BEING RENOVATED AND I THINK IT WAS 80% OCCUPIED AS OF THE COURSE OF Q4 LAST YEAR.
NEXT SLIDE PLEASE. AND FINALLY, OUR LATEST DEAL WITH THE CULBREATH, WHICH I'M SURE MANY OF YOU MAY BE AWARE OF, PROVIDED A $3 MILLION DEAL FOR A PROJECT THAT'S BEING SUPPORTED WITH THE DALLAS HOUSING AUTHORITY AND VOLUNTEERS OF AMERICA.
VERY LARGE DEAL, 364 UNITS SUPPORTING SENIORS TO A MIX OF PUBLIC HOUSING UNITS.
SECTION EIGHT LIHTC AND WORKFORCE HOUSING. JUST STARTED CONSTRUCTION HERE.
IT'S ABOUT 30% COMPLETE AND EXPECTED TO COME ONLINE IN 2027.
NEXT SLIDE AND GET BACK TO YOU BRIAN. YES THANK YOU BEN.
AND NEXT SLIDE PLEASE. WE'LL TALK A LITTLE BIT ABOUT THE PERFORMANCE.
THAT HAS BEEN WITH THE THE FUND TO DATE. THE $6 MILLION THAT WAS SEATED THE FUND THROUGH THE CITY WAS GRANTED TO THE FUND. YOU KNOW, WITH AS A RECOVERABLE GRANT.
SO ESSENTIALLY THE GRANT HAS A FORGIVABLE METRICS THAT ALLOWS FOR 400,000 TO BE FORGIVEN FOR EVERY HUNDRED UNITS OF AFFORDABLE HOUSING UNITS THAT ARE PRODUCED ESSENTIALLY TO DATE. WELL, AS OF DECEMBER 31ST, 2024 WE WERE ABLE TO RECEIVE $1.2 MILLION OF RECOVERABLE.
I'M SORRY, OF, OF FORGIVABLE GRANT DOLLARS IN THE FUND BY PRODUCING 300 UNITS THAT GOT COMPLETED DURING THAT TIME. THIS YEAR, WE WERE ABLE TO COMPLETE ANOTHER 82 UNITS, BRINGING US UP TO A TOTAL OF 434 UNITS HAVE COMPLETED AFFORDABLE HOUSING WITH THE FUND AND AND WE RECEIVE FORGIVENESS FOR A TOTAL OF 1.6 MILLION TO DATE. THE NUMBER OF DEALS THAT ARE CURRENTLY IN CONSTRUCTION, THE AND THE UNITS THAT WILL COME ONLINE FOR 2026, WE'RE ANTICIPATING ACHIEVING 118 UNITS.
AND THEN ANOTHER 327 UNITS BY 2027, RESULTING IN TOTAL FORGIVENESS OF
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3.2 MILLION OF THE $6 MILLION THAT WAS CEDED BY THE CITY TO TO START THIS THIS FUND.SO REALLY EXCITING OUTCOMES THUS FAR. NEXT SLIDE PLEASE.
THE SLIDE THAT'S BEFORE YOU RIGHT NOW SHARES SOME OF THE HIGHLIGHTS OVER THE LAST 12 MONTHS.
THE LAST WELL, IT'S 12 MONTHS OF ACTIVITY THAT HAS BEEN ON THE GROUND THAT INCLUDES BOTH GROUNDBREAKINGS AS WELL AS GRAND OPENINGS FOR VARIOUS PROJECTS. I'LL JUST PAUSE JUST A MOMENT SO YOU CAN SEE SOME OF THE PICTURES THAT ARE BEFORE YOU THERE.
NOW NEXT SLIDE. THIS BRINGS US TO THE QUESTION AND ANSWER PERIOD OF THE PRESENTATION.
AND I'LL START ON THE RIGHT SIDE WITH CHAIRMAN WEST.
A COUPLE QUESTIONS AND COMMENTS. SLIDE 12. YOU MENTIONED AREAS OF HIGH OPPORTUNITY.
DO YOU IS THERE A HUD DEFINITION FOR THAT OR HOW DO YOU DEFINE AREAS OF OF HIGH OPPORTUNITY.
SO I BELIEVE WE'VE BEEN GOING WITH THERE IS A DEFINITION THAT WE HAVE. I DON'T HAVE IT IN FRONT OF ME, BUT I THINK WE WERE ALIGNING IT WITH WHAT HOW THE CITY DEFINES IT AS WELL. AS FAR AS PERCENTAGE OF INCOME EMPLOYMENT HAVING RETAIL AMENITIES AROUND THERE.
SO IF I'M AN APPLICANT WANTING TO APPLY TO USE THE FUNDS, IS IT CLEAR TO ME IN SOME WAYS WHERE I CAN LOOK IT UP? YES. THERE'S A MAP THAT WE SHOW THAT HAS THAT IDENTIFIES WHICH AREAS ARE LOCATED, IS IDENTIFIED AS THERE IS OPPORTUNITY.
WE DO HAVE A MAP THAT THEY CAN PLUG THEIR ADDRESS IN AND IT SHOWS WHETHER IT QUALIFIES OR NOT. GREAT. AND HOW OFTEN IS THAT UPDATED? FOR EVERY DEAL, THEY'RE CREATING THE SCORING MATRIX FOR EVERY DEAL THAT'S LOOKED AT, SO I'M NOT SURE HOW OFTEN THE MAP IS UPDATED.
I THINK YOU'RE ASKING ME. I'M NOT SURE HOW THAT'S UPDATED. COUNCIL MEMBER WEST, IF I MAY.
HE DID MAKE REFERENCE TO HOW THE CITY DEFINES HIGH OPPORTUNITY AREA.
AND THAT'S HOW WE IDENTIFY HIGH OPPORTUNITY AREAS.
GOT IT. SO YOU TRACK THAT. THAT'S IT'S THE SAME.
WE'RE USING THE SAME. IT'S THE SAME MAP. GOT IT.
THANK YOU. ALL RIGHT. YOU MENTIONED ON ONE OF THE SLIDES, MAYBE SLIDE TEN THAT YOU HAD A GOAL.
YOU SET A GOAL EARLY ON OF 1500 UNITS BY 2031.
IS THAT RIGHT? THAT'S THE GOAL THAT YOU GAVE US. THAT'S RIGHT. WHEN THE FUND FIRST KICKED OFF.
AND NOW I SEE THAT YOU'RE YOU HAD ANOTHER SLIDE THAT SAID YOU'RE ON TRACK.
YOU HAVE YOU FINANCED ALREADY 940 UNITS. AND THEN IF I'M READING SLIDE 13 CORRECTLY, YOU'RE GOING TO BLOW THE THE GOALS OUT OF THE WATER, PROBABLY BY 2026. RIGHT. YOU'RE GOING TO HAVE YOU'RE EXCEEDED YOUR YOUR INITIAL PROJECTIONS BY QUITE A BIT.
2026 2027 EXPECT TO BE THERE. YES. THAT'S GREAT.
THAT'S RIGHT. GREAT. THE SLIDE THAT I REALLY THINK IS KEY HERE, FOR ME AT LEAST, IS SLIDE 14, WHERE YOU SHOW US THAT THESE DEALS HAVE BEEN REALLY GEOGRAPHICALLY SPREAD OUT ACROSS THE CITY AND WITH, WITH THE MAJORITY OF THEM BEING ABOVE I-30 AND SOME IN NORTH DALLAS.
I JUST THINK THAT THAT'S IT'S REALLY IT'S SOMETHING WE DON'T SEE A LOT OF HERE.
YOU KNOW, A LOT OF THE DEALS SEEM TO END UP GOING TO SOUTH DALLAS.
I MEAN, YOU'RE REALLY LOOKING AT, AT THESE HARD TO REACH AREAS IS WHAT I'M GATHERING.
THAT'S RIGHT. RIGHT, RIGHT. OKAY. AND I GUESS I'LL JUST MAKE A COMMENT TO KIND OF CLOSE MY, MY PART OF THIS IS, YOU KNOW, I KNOW OUR HOUSING FINANCE CORP.
IS HAS 18 TO $20 MILLION IN EXCESS REVENUE. I WOULD LOVE TO SEE THE HFC CONSIDER INVEST CLOSING YOUR LAST $4 MILLION GAP THAT YOU'RE LOOKING FOR WITH SOME OF THEIR EXCESS REVENUES.
SO I HOPE, YOU KNOW STAFF'S HEARING THIS. AND YOU KNOW MY COLLEAGUES LIKE THAT IDEA.
I THINK THAT'S SOMETHING WE COULD TELL OUR REPS, YOU KNOW, ON THE COMMISSION.
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THANK YOU. THANK YOU, THANK YOU. COUNCIL MEMBER CADENA.SO I'M EXCITED TO HEAR THAT THAT'S GOING TO BE COMPLETED AT THE END OF THE MONTH.
I KNOW THAT THE COMMUNITY REALLY ADVOCATED FOR THAT.
AND WE GOT A PROJECT, PROJECT THAT WE WANTED.
SO VERY GLAD TO HEAR THAT. SO THANK YOU VICE CHAIR RIDLEY.
THANK YOU, MR. CHAIR. A COUPLE OF QUESTIONS WITH REGARD TO THE INVESTOR LIST ON PAGE NINE, YOU INDICATE SUNFLOWER BANK AND BOK FINANCIAL AS HAVING AN EQUITY STAKE.
HOW DOES THAT WORK? OBVIOUSLY, THE OTHERS THAT HAVE PLEDGED DEBT, THEY GET REPAID.
DO THE EQUITY HOLDERS RECEIVE DIVIDENDS OR HOW DO THEY GET THAT EQUITY REPAID? YEAH. THANK YOU FOR FOR THE QUESTION. GENERALLY THE CLASS OF CAPITAL IS GENERALLY DEFINED IN OUR STANDARD LOAN AGREEMENTS AND INVESTMENT AGREEMENTS.
AND ESSENTIALLY THE EQUITY IS REALLY IT'S A PREFERRED EQUITY POSITION THAT JUST REALLY IS DESIGNED TO GET PAID AFTER DEBT INVESTORS GET PAID. SO IN TERMS OF THE WATERFALLS, IN TERMS OF CAPITAL THAT THAT GETS RETURNED FROM THE INVESTMENTS THAT WE MAKE WITH THIS CAPITAL THE, THE ORDER IN WHICH THOSE INVESTORS GET REPAID, IT'S GENERALLY GOING TO BE DEBT CAPITAL FIRST, FOLLOWED BY THE EQUITY CAPITAL.
AND SO THE, THE EQUITY BECAUSE OF THAT PATIENCE, THEY GET A HIGHER RATE OF RETURN AS A RESULT OF THEIR PATIENTS RIGHT THERE IN THE FUND, LONGER GENERALLY THAN THE DEBT CAPITAL.
AND SO THAT'S THE DIFFERENCE. DEBT CAPITAL IS A MUST PAY DEBT.
THE EQUITY IS IT'S AVAILABLE REPAYMENT ON THE EQUITY IS AVAILABLE FROM WHAT'S LEFT, AND THEN IT'S AT A HIGHER RATE OF RETURN FOR THE EQUITY INVESTOR. AND IT'S JUST IN TERMS OF THE WATERFALLS, IT STAYS IN A LITTLE BIT LONGER.
SO THAT'S THE THAT'S THE REAL DIFFERENCE. AND AGAIN FROM A FROM A BANK'S STANDPOINT, A BANK CAN DECIDE WHETHER OR NOT THEY WANT TO INVEST DEBT OR EQUITY BASED UPON THEIR COMMUNITY REINVESTMENT ACT NEEDS.
THEY THEN, YOU KNOW, DEPLOY DEBT INTO A FUND OF THIS TYPE.
SOME HAVE AN INVESTMENT TEST THAT THEY HAVE TO MEET.
SO THEY'LL LOOK AT AN EQUITY OPPORTUNITY IN A FUND OF THIS TYPE.
AND SO THAT'S REALLY THE DIFFERENCE THAT THAT AND HOW IT SHAKES OUT.
OKAY. AND DO THESE FINANCIAL INSTITUTIONS WHO HAVE PLEDGED DEBT.
MAKE THAT LOAN TO THE DHOF, OR DO THEY MAKE A DIRECT LOAN TO THE DEVELOPERS OF THE PROJECT? THEY MAKE A DIRECT LOAN TO THE THE FUND ITSELF.
THAT'S RIGHT. OKAY. ON PAGE. WELL LET'S SEE. THAT WOULD BE EIGHT.
THERE IS A LIST OF 940 UNITS OF HOUSING, 880 OF WHICH ARE CONSIDERED AFFORDABLE.
AM I CORRECT IN ASSUMING THAT THE ADDITIONAL 60 UNITS BETWEEN THE 880 AND THE 940 ARE MARKET RATE UNITS IN MIXED INCOME DEVELOPMENTS? THAT'S CORRECT. OKAY. AND IS THERE A SUNSET DATE FOR THE DHOF, AT WHICH POINT YOU HAVE TO WIND UP THE AFFAIRS, REPAY THE INVESTORS AFTER YOU'VE REACHED YOUR GOALS.
THAT'S. YES IT IS. SO ESSENTIALLY THE WAY THAT THE FUND ACTUALLY WORKS IS WE HAVE AN INVESTMENT PERIOD THAT HAS A, IT'S A FIVE YEAR INVESTMENT PERIOD. AT WHICH POINT WE WE STOP THE CAPITAL RAISE AND WE GO INTO ESSENTIALLY PROJECT MANAGEMENT OF THE PROJECTS THAT HAVE BEEN FUNDED.
THAT HAS A, I BELIEVE IT'S A 15 YEAR PERIOD. AND THEN IT'S WRAPPING UP THE FUND AND THEN REPAYING ALL OF THE INVESTORS. SO ESSENTIALLY THEN WHAT HAPPENS IS THE DEBT AS WE START TO GET THE REPAYMENTS BACK FROM THE UNDERLYING PROJECTS THROUGH EITHER REFINANCE OR WHAT HAVE YOU.
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WE THEN TAKE THOSE THAT, THAT, THAT WATERFALLS AND THEN START TO REPAY FIRST THE DEBT INVESTORS FOLLOWING THE THE EQUITY, THE PREFERRED EQUITY INVESTORS. SO WHAT'S THE TYPICAL LOAN TERM IN YOUR AGREEMENTS WITH THE DEVELOPERS.DO THEY HAVE TO REPAY WITHIN A CERTAIN PERIOD? THAT'S RIGHT. I'LL LET BEN TALK TO THAT. BUT IT'S GOING TO BE SHORTER THAN OBVIOUSLY OUR OUR TERMS. SO OUR INVESTMENT PERIOD ENDS 2031. AND THE FUND MATURITY IS 2046.
THERE MIGHT BE A COUPLE EXTENSIONS WE CAN HAVE IN THERE. BUT THE FUND ITSELF UNWINDS AROUND 2046.
SO WE HAVE TO HAVE ALL OF OUR LOANS MATURE BY THAT DATE.
BECAUSE WE GET FURTHER INTO IT, WE'LL HAVE TO KEEP IN MIND THAT 2046 DEADLINE.
OKAY. THANK YOU VERY MUCH. YEAH, ABSOLUTELY. I DO HAVE A COMMENT THAT I'LL ADD.
WHEN WE ORIGINALLY THIS COUNCIL VOTED TO APPROVE THE DHOF AND ALLOCATE THE $6 MILLION IN DECEMBER OF 21, I HAD HIGH HOPES FOR THIS NOVEL APPROACH TO BUILDING AFFORDABLE HOUSING, AND AND I'M VERY PLEASED TO SEE THAT YOU HAVE MADE TREMENDOUS PROGRESS.
THIS IS REALLY THE FIRST UPDATE THAT I'VE GOTTEN ON THIS SINCE 2021, BUT YOU'VE OBVIOUSLY BEEN VERY BUSY AND VERY PRODUCTIVE IN THE PROJECTS THAT YOU HAVE SUPPORTED. SO I DO APPLAUD YOUR EFFORTS FOR ACCOMPLISHING WHAT YOU HAVE TO DATE, AND GOOD LUCK FOR COMPLETING YOUR GOALS IN THE FUTURE.
THANK YOU. COUNCILMEMBER ROTH. THANK YOU. THIS REALLY IS AN INTERESTING PROGRAM.
I'M LEARNING ABOUT IT AS WE'RE SPEAKING TO YOU.
SO SOME OF MY QUESTIONS MAY BE A NAIVE OR MAYBE ALREADY OTHER FOLKS ALREADY KNOW ABOUT IT.
IN THE IN THE APPLICATION OF THE FUNDS THAT YOU'RE RAISING, YOU'VE RAISED $40 MILLION.
DOES THAT INCLUDE THE 6 MILLION THAT THE CITY HAS ALREADY GIVEN.
SO, SO, YES. WE'VE WE'VE RAISED $42 MILLION. AND THAT IS FROM THE THE LIST OF FUNDING SOURCES ON SLIDE NINE THAT INCLUDES THE 6 MILLION FROM THE CITY AS WELL.
AND SO THE GOAL IS TO RAISE 46 MILLION IN TOTAL CAPITAL BY THE END OF 2026.
SO WE ARE $4 MILLION SHY OF THAT NUMBER THAT WE WILL BE RAISING OVER THE NEXT SEVERAL MONTHS.
BUT BUT ESSENTIALLY WE'VE RAISED, LIKE I SAID, FOR, WELL, WE OUTSIDE OF THE CITY CAPITAL, I GUESS THAT NUMBER WOULD BE 30, 32 MILLION, 36 MILLION.
I'M SORRY OF CAPITAL THAT THAT HAS BEEN RAISED FROM THESE SOURCES BANK SOURCES THAT ARE LISTED HERE AND IS THE IS THE WAIVER OF THE REPAYMENT FOR THE 6 MILLION. BASED ON THAT, IS IT BASED ON THE ACQUISITION OF THE ADDITIONAL $4 MILLION? BEFORE THAT, THOSE THOSE WAIVER OF THAT, OF THE REPAYMENT BASED ON THE 100 UNITS? YES. THAT'S CORRECT. THERE'S A IT'S A RECOVERABLE GRANT THAT HAS TWO PARTS TO IT, BOTH THE CAPITAL RAISE OF AT LEAST 46 MILLION BY THE END OF 26, AS WELL AS YOU KNOW, THE ACHIEVEMENT OF THE 1500 UNITS BY 2031.
AND IS THERE IS WHEN THESE PROJECTS ARE ARE DEVELOPED, THEY'RE MANAGED BY THE DEVELOPER.
IS THERE IS THERE SOME KIND OF A BASED ON YOUR UNDERWRITING, SOME KIND OF OVERSIGHT? IF YOU'RE, YOU'RE ACTING AS BASICALLY AS LENDERS, IS THAT CORRECT? THAT'S CORRECT. AND SO DO YOU ALL SORT OF REQUIRE REPORTS? OCCUPANCY, RENT CONSIDERATION. FIGURING OUT IF THEY'RE HANDLING THE PROPERTIES PROPERLY.
BUT I'LL LET BEN TALK TO THE SPECIFICS AROUND THAT.
RIGHT. SO WE HAVE A WHOLE CONSTRUCTION MANAGEMENT TEAM AS WELL THAT WILL MANAGE CONSTRUCTION. THAT'S GOING OUT THERE MONTHLY TO MAKE SURE THINGS ARE ON SCHEDULE. THEN ONCE IT'S BEEN BUILT AND LEASED UP, IT GOES THROUGH OUR ASSET MANAGEMENT TEAM WHO WILL DO ANNUAL REPORTS ON IT.
AND WE'LL DO ANNUAL SITE VISITS AS WELL TO MAKE SURE THINGS ARE RUNNING WELL. SO WE DO. WE'LL CHECK OUT THINGS ANNUALLY TO MAKE SURE THINGS ARE STILL IN COMPLIANCE. AND YOU ALL DO THE COLLECTION OF THE THE INDIVIDUAL WHERE'S THE RENT PAY THE RENT, THE MORTGAGE PAYMENTS COMING INTO THERE, GOING TO THE INDIVIDUAL LENDERS OR ARE THEY COMING THROUGH YOU ALL COMING TO US AND THEN YOU'RE DISPERSING BEYOND THAT.
AND SO YOU'RE DOING THE COLLECTIONS. YOU'RE DOING ALL THE FOR OUR LOAN.
[00:35:03]
SOME DEALS WILL HAVE MORE THAN ONE LOAN. I'M SORRY.SOME DEALS WILL HAVE MORE THAN ONE LOAN. WE'RE NOT MANAGING THE OTHER LOANS.
WE'RE MANAGING YOUR LOAN. SO WE'RE COLLECTING THE INTEREST AND THE PMI PAYMENTS FOR OUR LOANS.
OKAY. IT LOOKS LIKE THE AVERAGE VALUE OF THESE APARTMENTS ARE ABOUT $300,000 IS WHAT IT SORT OF COMES TO WHEN YOU'RE DEVELOPING THESE THINGS. IS THAT SORT OF A MARKET VALUE FOR THIS KIND OF DEVELOPMENT FOR, ARE THESE ONE TWO BEDROOM APARTMENTS? IS THAT SORT OF WHAT YOU'RE WHAT YOU'RE LEASING? I THINK THE UNITS RANGE FROM STUDIOS TO FOUR BEDROOMS. AND SO I THINK YOU'RE KIND OF LOOKING AT THE CONSTRUCTION COST.
IT COSTS ABOUT 300 GRAND A UNIT TO BUILD THESE THINGS.
THAT'S RIGHT. AND THAT'S PART OF YOUR UNDERWRITING CRITERIA IS WHETHER THE COST OF CONSTRUCTION AND THE DEVELOPMENT COSTS ARE APPROPRIATE FOR THE SIZE AND THE ABILITY OF THOSE OF THOSE UNITS.
THAT'S RIGHT. WE HIRE OUR OWN SEPARATE CONSTRUCTION INSPECTOR TO GO OUT THERE, REVIEW THE PLANS, COMPARE THEM TO THE BUDGETS TO MAKE SURE THE BUDGET IS SUFFICIENT TO BUILD THE PLAN THAT'S OUT THERE. OKAY.
I THINK THAT'S A A GOOD SITUATION. I'M, I WOULD LIKE TO MAKE SURE THAT THE CITY AND THEY'RE IN OUR FIDUCIARY RESPONSIBILITY OF MAKING SURE THAT THE FORGIVENESS OF OUR FUNDS ARE CERTAINLY TIED TO THE THE ACQUISITION OF THE EQUITY THAT'S REQUIRED BY THE STAKEHOLDERS THAT ARE SORT OF PROMOTING THIS DEAL.
AND, AND I'D ALSO LIKE TO MAKE SURE THAT THERE'S VERIFICATION AND INFORMATION OF SOME KIND OF REPORTING TO KNOW THAT YOU ALL ARE DOING DUE DILIGENCE ON THE UPFRONT, WHICH SOUNDS LIKE YOU ARE, AND ALSO GETTING REPORTS ANNUALLY ON, ON THE THE SUITABILITY AND THE EFFECTIVENESS OF THE OPERATORS WHO ARE DOING THIS STUFF SO THAT WE'RE, THAT OUR MONEY IS GOING INTO, INTO GOOD FACILITIES.
THANK YOU. THANK YOU. CHAIR GRACEY. THANK YOU.
I'M TRYING TO GET A LITTLE BIT OF CLARITY, THOUGH. THESE PROJECTS ARE NOT LIMITED TO JUST AFFORDABLE DEALS. THAT'S WHAT I'M. IT JUST SO HAPPENS THAT A MAJORITY OF THEM ARE BROKEN UP INTO THIS, HOW IT'S BROKEN UP, BUT THEY'RE NOT LIMITED TO.
NO. WE DO HAVE A REQUIREMENT THAT A MINIMUM, AT LEAST HALF THE UNITS IN A PROJECT HAVE TO BE AFFORDABLE AND AFFORDABLE, BEING DEFINED AS UP TO 110% OF THE AREA MEDIAN INCOME.
SO THEY HAVE TO HAVE SOME COMPONENT OF AFFORDABILITY IN ORDER TO QUALIFY FOR THE FUND.
OKAY. YEAH. ALL RIGHT. AND AS I'M LOOKING AT THIS, THE $6 MILLION THAT THE CITY GAVE HAS ALL OF THAT HAS ALREADY BEEN AWARDED FOR LACK OF A BETTER TERM.
YES. IT WAS DISPERSED AT THE BEGINNING OF. WE WERE THE FIRST MONEY INTO THE FUND.
PERFECT. OKAY. ALL RIGHT. ALL RIGHT. WELL, THANK YOU FOR THIS.
THANK YOU FOR THIS PRESENTATION. I DO HAVE SOME AREAS I'M GOING TO FOLLOW UP WITH YOU ABOUT SOME, SOME SOME PARTICULAR AREAS. I THINK THERE'S AN OPPORTUNITY. THANK YOU. THANK YOU. COUNCIL MEMBER WILLIS. THANK YOU FOR LETTING ME BE A GUEST ON YOUR COMMITTEE TODAY.
AND SO AFTER YESTERDAY'S DOLDRUMS OF NEWS, I OPENED UP THIS DECK AND I'M SO HAPPY TO SEE THAT THE DALLAS HOUSING FUND OPPORTUNITY FUND IS JUST KNOCKING IT OUT OF THE PARK.
I MEAN, THIS REALLY IS A GREAT EXAMPLE OF HOW THE CITY CAN MAKE AN INVESTMENT IN SEED SOMETHING AND THEN STEP OUT OF THE WAY AND LET SOME EXPERTS GO DO THEIR THING AND HAVE IT MANIFEST ITSELF IN SO MANY HOUSING UNITS.
SO I APPLAUD YOU FOR THAT. SO I DO HAVE A COUPLE OF QUESTIONS, THOUGH, ON MR. GLISPIE. IT SOUNDED LIKE SEVERAL OF THESE ARE STABILIZED.
I THINK YOU SAID SIX. SIX OF THEM ARE. AND SO MY QUESTION IS, EVEN THOUGH WE BREAK OUT THE AMI AT 80% OR BELOW OR 120% OR BELOW, I'M REALLY INTERESTED IN THAT 30 TO 60%.
I MEAN, THAT IS WHERE THE CITY OF DALLAS REALLY STRUGGLES ON CREATING HOUSING.
SO SINCE SOME OF THESE ARE OCCUPIED, DO YOU ALL HAVE ANY SENSE OF HOW MANY UNITS ARE FALLING INTO THOSE CATEGORIES BELOW THAT 80? BELOW THAT 60? YEAH. AND THEY'RE DEFINITELY SOME OF THEM DO HAVE THAT 30 TO 50% AMI.
[00:40:06]
MEMBERS, AND PROBABLY THE COUNCIL AS A WHOLE, WOULD BE VERY INTERESTED IN UNDERSTANDING HOW THIS IS ADDRESSING THAT.AND THEN I WAS HAPPY TO SEE SOME OF THE SERVICES THAT ARE OFFERED, BUT I WANTED TO UNDERSTAND MORE IN THE VEIN OF THIS AROUND HOMELESSNESS, THE PERMANENT SUPPORTIVE HOUSING ASPECT HOW THAT THAT WORKS.
AND IF YOU HAVE A SENSE OF WHAT PERCENTAGE OF UNITS ARE DEDICATED TO PSH.
RIGHT, SO WE'VE DONE ONE DEAL SO FAR THAT IS SUPPORTIVE HOUSING.
SO THAT'S THE ONE DEAL WE HAVE. WE HAVE ONE DEAL IN THE PIPELINE WITH SAINT JUDE THAT WILL BE 71.
ALL 100, ALL 171 UNITS WILL BE SET ASIDE FOR PSHA.
THAT ONE SHOULD CLOSE SOMETIME IN THE FIRST SECOND QUARTER OF THIS YEAR. ALL RI GHT.
AND I LIKE THE WAY THAT YOU DID THE CRITERIA ON PAGE 12.
DO YOU HAVE A PSH POINT OR ANYTHING IN THERE? YES THERE IS. SO THERE IS SO THAT YOU GET A LITTLE BIT OF A BUMP UP IF YOU.
SO I'M PROUD TO NOTE THAT, YOU KNOW, RIGHT UP HERE, THIS DOT IS IN DISTRICT 13.
SO THAT PARK LANE TERRACE PROJECT. SO THAT ALSO LEADS ME TO THE QUESTION OF IN 15 YEARS, MAYBE.
MR. SPATH, THIS IS FOR YOU. IS THAT IS THERE ANY KIND OF MECHANISM FOR THE CITY? I MEAN, I UNDERSTAND THE FUND IS KIND OF OVER AND OUT AT THAT POINT, BUT WHAT HAPPENS IN 15 YEARS? WHAT MECHANISM IS THERE TO PREVENT THIS FROM SHOOTING UP TO MARKET RATE? BECAUSE I LOOK AT THE TRANSITION THAT THAT PARTICULAR PROPERTY IS GOING TO BE GOING THROUGH.
WHAT'S AROUND IT, AND THAT AFFORDABILITY THAT CURRENTLY EXISTS MAY NOT BE THERE.
SO WHAT CAN THE CITY DO? WELL, THAT'S A GREAT QUESTION.
AND IT'S A PROBLEM THAT FACES EVERY PROGRAM THE CITY USES TO PARTICIPATE IN HOUSING.
OUR AFFORDABILITY IS LIMITED TO SOME PERIOD OF TIME.
AND AFTER THAT, IT'S BECOMES A MARKET, YOU KNOW, AN UNRESTRICTED PROJECT.
SO THE HOUSING DEPARTMENT HAS HAD POLICIES IN THE PAST AND, AND THEY'RE DEALING WITH THAT, YOU KNOW, AND EVEN PROJECTS THAT ARE RESTRICTED CURRENTLY BY FEDERAL RULES ARE IN THE SAME BOAT.
AND WHERE AND HOW THE CITY INTERVENES ON THOSE PROPERTIES.
IS A FAIR QUESTION FROM A POLICY PERSPECTIVE.
THE ONLY THING THAT I CAN SAY IS WE'RE GOING TO, YOU KNOW, WE'RE IN THIS BUSINESS FOR THE, FOR ETERNITY. WE HAVE TO KEEP DOING DEALS TO KEEP SECURING AFFORDABILITY IN EVERY PROPERTY THAT WE CAN, WHERE IT MAKES SENSE. WELL, THAT MAKES A STRONG CASE FOR DEVELOPING OUR COMMUNITY'S ECONOMIC MOBILITY.
BUT MY LAST QUESTION, MR. MADDOX, IS ABOUT THE $6 MILLION THAT STARTED THIS OFF THAT THE CITY OF DALLAS INVESTED IN THIS AND SAID, GO RUN WITH THIS. HOW CRITICAL WAS THAT TO ACQUIRE THE ADDITIONAL INVESTMENT THAT HAS COME? SO I'LL ANSWER THE QUESTION BY COMPARING IT TO THE 12 FUNDS THAT WE'VE STOOD UP IN THE LAST SIX YEARS.
WHENEVER WE STAND UP A FUND, THE SEED CAPITAL FROM A MUNICIPALITY IS THE MOST CRITICAL.
IT ALLOWS US TO LEVERAGE AND PROVIDES LEGITIMACY FOR FUND.
IT'S THE STAKE IN WHICH THE CITY OR THE MUNICIPALITY HAS, AND, YOU KNOW, IN THE DEVELOPMENT OF THIS AND SO MANY OF THE BANKS THAT WE WORK WITH AND WE, WE, WE TALK TO THEY'LL LOOK FOR A MUNICIPALITY, THEY'LL LOOK FOR SOME FORM OF COMMUNITY FOUNDATION OR THAT THAT IS WILLING TO STEP UP AND SAY, WHERE ARE THE EARLY ADOPTERS? WE'RE THE ONES WHO BELIEVE THAT THIS CAN HAPPEN, AND WE WANT THIS TO HAPPEN IN OUR COMMUNITY.
SO IT'S IT'S PARAMOUNT TO SUCCESS OF A FUND. ALL RIGHT.
WELL, AGAIN, THANK YOU. AND CONGRATULATIONS ON BEING A SUCCESS STORY.
THANK YOU. THANK YOU GUYS FOR THE PRESENTATION.
I REMEMBER I GUESS 3 OR 4 YEARS AGO CHAIR WEST WAS THERE, AND WE WERE KIND OF DISCUSSING HOW THIS WOULD EVOLVE, AND IT'S NICE TO SEE IT FINALLY DEVELOPED.
I HAVE NO GUESS THAT THIS WOULD TO BE SUCCESSFUL, AND THAT WE'RE OBVIOUSLY GOING TO CLOSE THAT GAP OF 560 UNITS THAT WE CURRENTLY HAVE BEFORE THE THE TIMELINE ELAPSES. SO OBVIOUSLY THIS PROJECT IS PROVEN TO BE SUCCESSFUL, BUT HOW DO WE MEASURE THAT SUCCESS? I MEAN, OBVIOUSLY WE'RE GETTING AFFORDABLE UNITS, BUT HOW DO WE TRULY SAY THIS IS YES,
[00:45:08]
THIS IS A GOOD VALUE FOR THE CITY. IS THERE ANY METRICS THAT CAN BE USED TO SAY, FOR EXAMPLE, WE'RE KEEPING INDIVIDUALS FROM FALLING INTO HOMELESSNESS.WE'RE WE'RE KEEPING FAMILIES IN THESE UNITS? I THINK ONE OF THE QUESTIONS WAS, ARE WE FOLLOWING THE THE VACANCY RATES OF THESE APARTMENTS? HOW LONG ARE PEOPLE STAYING IN THESE UNITS FOR? SO HOW DO WE MEASURE SUCCESS. YEAH. NO, THAT'S A THAT'S A VERY GOOD QUESTION.
I BELIEVE THAT ONE OF THE WAYS THAT WE MEASURE SUCCESS OF THE FUND IS, IS THROUGH, AGAIN, THE NUMBER OF UNITS THAT ARE PRODUCED, THE CAPITAL RAISE THAT WE'RE ABLE TO DEPLOY.
THE FACT THAT WE'RE ABLE TO REPAY OUR INVESTORS OF RETURN AND BRING THEIR, THEIR INVESTMENT BACK TO THEM THAT'S SUCCESS FOR THE FUND. I THINK HOW WE MEASURE SUCCESS FOR THE CITY I THINK IS SLIGHTLY DIFFERENT.
RIGHT. I THINK YOU YOU YOU TALK TO SOME OF THAT, AND THAT IS HOW MANY FAMILIES ARE YOU ABLE TO HOUSE, HOW MANY FAMILIES ARE ABLE TO MOVE UP AND, AND TO OTHER FORMS OF HOUSING AND THINGS OF THAT NATURE? I WOULD SAY THAT'S A METRIC THAT IS HARDER FOR US TO CAPTURE AT THE, AT THE FUNDER LEVEL.
AND SO I WOULD SAY THAT THAT'S AN OPPORTUNITY THAT I THINK WORKING WITH THE CITY, WORKING WITH OUR PARTNERS AT TREC, WORKING WITH OTHERS, MAYBE WE CAN START TO LOOK AT VARIOUS OPPORTUNITIES TO START COLLECTING SOME OF THAT DATA.
BUT THAT'S A THAT'S A HARD METRIC. THOSE ARE HARD METRICS TO TO COLLECT.
AGAIN THROUGH THESE PROJECTS ARE IN MY DISTRICT WITH AT LEAST ONE, MAYBE TWO MORE IN THE PIPELINE.
I WANT TO GO TO THE SELECTION OF PROJECTS. THE SCORING METRICS THAT YOU GUYS USE.
ANOTHER THING THAT I WASN'T REALLY MENTIONED TODAY WAS THE COMMUNITY COMPONENTS THAT A LOT OF THESE PROJECTS COME WITH, WHETHER IT'S A A DAYCARE OR SCHOOL, A COOKING LESSONS SENIOR CARE.
HOW HEAVY DO WE WEIGHT COMMUNITY IMPACT INTO THE SCORING CRITERIA? YEAH. YOU KNOW, CERTAINLY IT'S IT'S FAIRLY HIGH.
BUT I'LL LET BEN TALK MORE TO THAT THAN THAN MYSELF.
YEAH, IT'S ONE OF THE. YOU GET AN EXTRA POINT FOR IT FOR HAVING HEAVY SERVICES INVOLVED.
SO I WOULDN'T SAY IT'S DISPROPORTIONATELY WEIGHTY THAN ANYTHING ELSE, BUT IT GIVES YOU A LEG UP ON A PROJECT THAT DOESN'T HAVE SERVICES, SO. OKAY. AND THEN IS THERE A A LIMIT ON THE FUNDING THAT IS AWARDED? IN OTHER WORDS, IS IT 10% OF A PROJECT? NO MORE THAN 50% OF A PROJECT? YEAH, WE HAVE BEEN LIMITING IT TO ROUGHLY $30,000 PER UNIT LOAN DOLLARS PER UNIT.
AND NOW GOING FORWARD, WE HAVE A MAXIMUM OF 3 MILLION, 3 TO $4 MILLION MAX GOING FORWARD.
BUT WE TRIED TO HAVE A TARGET OF 30,000 PER UNIT OF LOAN FUNDS.
OKAY. AND THEN THE LAST THING WHICH COUNCIL MEMBER WILLIS SPOKE ABOUT IS THE AMI.
I THINK EVERYONE AROUND THIS HORSESHOE IS, IS TRYING TO GO DEEPER INTO THAT AFFORDABILITY.
DO YOU WANT TO GO AHEAD? WELL, I SO I WOULD SAY THAT OUR AGREEMENT.
UNDER THE CURRENT AGREEMENT THAT WE, THAT WE HAVE REQUIRES US TO PERFORM UNDER, YOU KNOW, UNDER 120, 50% OF THE UNITS, UNDER 120 AMI BUT OUR INVESTORS, WHICH ARE PRIMARILY FINANCIAL INSTITUTIONS, THEY ALWAYS WANT US TO MAKE SURE THAT WE ARE GOING TO THE DEEPER SUBSIDIZED UNITS FOR CRA PURPOSES. RIGHT. SO FROM A FUND, FROM A FUND LEVEL, WE OPERATE ONE WAY, AND THAT IS AT THE 120% AMI, I WOULD SAY THEN FROM A WELL, I'M SORRY, FROM THE PROJECT LEVEL, FROM THE FUND LEVEL WE OPERATE AT UNDER THE 80% AMI AND MANY OF THOSE UNITS, JUST BY VIRTUE OF BEING AFFORDABLE HOUSING OR NATURALLY OCCURRING AFFORDABLE, ARE GOING TO BE YOU KNOW, UNDER THE 80% AMI. WE DO HAVE YOU KNOW, THOSE NUMBERS THAT WE CAN PROVIDE YOU. WE JUST DIDN'T PUT THEM AS PART OF THE PRESENTATION.
[00:50:03]
BUT WE DO HAVE A DEEPER TARGETING OF OF SUBSIDY UNITS THAT ARE UNDER THE 80% AI FOR AFFORDABILITY.THAT WOULD BE HELPFUL IF YOU COULD GET THAT OVER TO KEVIN AND HIS TEAM.
ANY OTHER QUESTIONS? OKAY. SEEING NONE, WE'LL GO AHEAD AND THANK YOU GUYS FOR THE PRESENTATION.
IS THERE A MOTION TO MOVE THIS FORWARD TO FULL COUNCIL? SECOND. REAL QUICK. SORRY, CHAIR. THIS DOESN'T MOVE FORWARD TO COUNCIL.
IT'S JUST AN ANNUAL UPDATE. OKAY. IT'S LISTED ON HERE.
AS SUCH SO. FOR POTENTIAL ACTION, I THINK THAT'S THE STANDARD.
PERFECT. AWESOME. ALL RIGHT. WE'LL GO AHEAD AND MOVE ON TO BRIEFING ITEM B.
THANK YOU. ALL RIGHT. LET THESE GUYS.
TAKE OFF. SO ITEM B THANK YOU. ITEM B IS ALSO INFORMATIONAL.
SO THE CITY COUNCIL IN 2023 ADOPTED A NEW ECONOMIC DEVELOPMENT POLICY.
THOSE ARE AS OF RIGHT TAX ABATEMENTS FOR CERTAIN PROJECTS AND TARGET AREAS.
INCENTIVE OFFERS VALUED AT AT OR BELOW $1 MILLION FOR PROJECTS IN TARGET AREAS, AND INCENTIVE OFFERS VALUED AT AT OR BELOW 1 MILLION THAT ARE MADE TO DEVELOPERS MEETING WEB CRITERIA OR COMMUNITY DEVELOPERS IN TARGET AREAS AND IN NON-TARGET AREAS.
THREE OF THOSE WERE FOR THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND HUMAN DEVELOPMENT GRANT AGREEMENTS, AND ONE WAS AN ADMINISTRATIVE ACTION AUTHORIZING THE FIRST SMALL BUSINESS GRANT AGREEMENT THROUGH OUR NEW SMALL BUSINESS ASSISTANCE PROGRAM.
ALL RIGHT. WE'LL START WITH COUNCIL MEMBER CADENA.
VICE CHAIR RIDLEY. COUNCIL MEMBER ROTH. I'M NOT CLEAR.
IS THIS, WOULD THIS BE RELATED TO THE TO THE ADMINISTRATIVE CHANGES FOR THE FOR THE POLICY? THE INCENTIVE POLICY. NO, NO, THAT'S NOT THIS IS THAT THAT'S A THAT'S A LATER.
THAT'S AN AGENDA ITEM. YEAH. THANK YOU. CHAIR GRACEY.
COUNCIL MEMBER WILLIS. OH. I'M SORRY. GO AHEAD.
THANK YOU SO MUCH. AND I APPRECIATE THIS REPORT, WHICH IS SOMETHING WE CAN LOOK FORWARD TO ON THINGS LIKE PROCUREMENT, ETCETERA. AS POLICY HAS CHANGED THAT WE AS COUNCIL MEMBERS JUST NEED TO BE VIGILANT ON, YOU KNOW, WHETHER IT'S BEFORE OR AFTER LOOKING AT THESE REPORTS THAT ARE THAT WE'VE REALLY UNGUMMED THE GEARS ON HELPING THINGS MOVE A LITTLE MORE QUICKLY THROUGH THE PROCESS, WHICH GETS MONEY TO PROGRAMS THAT ARE SERVING THE COMMUNITY SO WELL.
I'M VERY EXCITED TO SEE AFTER EIGHT TO EDUCATE AS PART OF THIS.
BUT MY QUESTION IS ABOUT THE REPORTING. SO I APPRECIATE THE GRID THAT YOU'VE GOT HERE ON THE PREVIOUS REPORTS, AS WELL AS THE NEW REPORTS OR THE NEW PROJECTS.
BUT WHERE WHERE IS THE MECHANISM THAT SAYS WHAT THE ACTUAL OUTCOMES WERE THAT ALL OF THESE PEOPLE WERE INDEED SERVED? IS THERE SOMETHING INCLUDED IN THAT REPORT THAT SUGGESTS WHAT THE THE BENEFIT IS? FOR INSTANCE, ON ONE OF THE PROGRAMS IT LOOKS LIKE WE'RE SPENDING ABOUT, I THINK IT'S ON AFTER EIGHT ABOUT $1,400 A CHILD.
BUT THE WAY THAT MANIFESTS ITSELF IN THE COMMUNITY IN TERMS OF SOMEONE WHO HAS A GED SPEAKING TO ECONOMIC MOBILITY, I MEAN, I DON'T WANT TO OVER COMPLICATE, BUT IT DOES HELP US UNDERSTAND WHY IT'S SO IMPORTANT TO INVEST IN THESE PROGRAMS. RIGHT, SO I THINK MAYBE I WOULD ANSWER THE QUESTION IN THIS WAY.
HEATHER, DEPUTY DIRECTOR HEATHER LOPEZ CAN COME UP AND MAYBE TALK ABOUT HOW WE CAN MAYBE NOT DUPLICATE THE REPORTING ON THOSE KIND OF METRICS, BUT CERTAINLY MAKE THIS COMMITTEE AND THIS BODY AWARE OF THE REPORTING THAT WE'RE ALREADY DOING TO THAT BODY.
AND IT MAY BE AN ANNUAL REPORT ON ALL OF THIS KIND OF IMPACT.
[00:55:02]
AND THAT'S WHAT OCCURS ALREADY IS AN ANNUAL REPORT THAT'S ISSUED TO THE BOARD.TO THE BOARD. YES. AND THAT'S JUST ON THE THINGS THAT ARE FUNDED BY THAT FUND.
BUT I'M JUST LOOKING FOR HOW DO WE PULL IT ALL TOGETHER AND KIND OF AGGREGATE IT VERSUS JUST LOOKING AT ALL THIS? I MEAN, HERE'S THE IMPACT OF HOW MUCH WAS INVESTED.
THE AUDIENCE SERVED AND WHAT THE PUBLIC BENEFIT IS.
AND SO I THINK WE CAN ROLL THAT UP. AND CERTAINLY THAT'S SOMETHING AS WE'RE WORKING ON OUR ANNUAL REPORT FOR 2025 FOR THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND, I THINK IT WOULD BE HELPFUL FOR US TO ROLL UP WHAT THE IMPACTS ARE AT THAT HUMAN DEVELOPMENT GRANT LEVEL, TO YOUR POINT. AND THEN ALSO, YOU KNOW, WE CAN PULL THAT INFORMATION FROM THE NONPROFIT'S ANNUAL REPORTS ON THE BROADER SIDE OF IT, OUR FUNDS FOR THIS UNDER THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND ARE ONLY FOR NEW OR EXPANDED SERVICES.
SO IT'S NOT CAPTURING THE WHOLE OF WHAT THEY'RE DOING. BUT WE CAN TALK ABOUT THAT A LITTLE BIT MORE.
IF YOU HAVE SOME IDEAS ON HOW TO BEST CAPTURE THAT, I THINK THAT WOULD BE GREAT TO BE ABLE TO SEE BECAUSE AS WE AS BUDGETS GET TIGHTER AND WE WANT TO SEE WHAT'S PERFORMING, IT'S ALL ABOUT THE PRIORITY BASED AND WHAT'S PERFORMING.
AND I KNOW TYPICALLY YOU ALL ARE VERY GOOD ABOUT MEASURING THAT.
I'M CURIOUS ABOUT HOW WE DO ENSURE THAT THEY WERE CREATED AND THAT ARE THESE RESIDENTS OF CITY OF DALLAS? YEAH, I'LL TAKE THAT. WELL, I MEAN, IT'S WITH ANY GRANT AGREEMENT THAT WE DO, IT'S TYPICALLY NOT PAYABLE UNTIL THEY PERFORM.
AND SO IF, IF AND WHEN THEY PERFORM AND THEY THINK THEY'VE PERFORMED TO THE TUNE OF THE AGREEMENT, THEN THEY WILL SUBMIT A GIANT PACKAGE OF PAPER THAT DOCUMENTS ALL THE THINGS THAT THEY'RE REQUIRED TO EVIDENCE THAT THEY DID.
AND SO WE DO VERIFY ALL OF THAT BEFORE WE EVEN, YOU KNOW, INITIATE THE APPROVAL OF THE PAYMENT.
THEY HAVE 18 MONTHS, 24 MONTHS, 36 MONTHS TO ACTUALLY PERFORM THE REQUIREMENTS OF THE AGREEMENT.
AND WHAT ABOUT THAT CITY OF DALLAS REQUIREMENT AS FAR AS THOSE EMPLOYEES? I MEAN, I KNOW THAT THIS FUND IS CONCENTRATED TO A CERTAIN AREA, SO I WOULD HOPE THE OBJECTIVE WOULD BE TO EMPLOY PEOPLE WITHIN THAT AREA.
IT'S NOT IN SOUTH DALLAS FAIR PARK, BUT THEY ARE REQUIRED.
THEY ARE THERE INDICATING THEY WILL CREATE A RETAINED TEN LIVING WAGE JOBS.
DO WE HAVE THE ABILITY TO REQUIRE THAT? WE DO.
IT JUST MAKES IT HARDER FOR SMALL BUSINESSES TO ACTUALLY MEET THAT LIVING WAGE JOB REQUIREMENT.
AND THE IDEA BEHIND SMALL BUSINESS ASSISTANCE PROGRAM IS IT REALLY IS NEIGHBORHOOD BASED BUSINESSES.
AND SO WE'RE HOPEFUL. THE IDEA IS IF YOU HAVE MORE EMPLOYMENT OPPORTUNITIES IN THE NEIGHBORHOODS, YOU GET NEIGHBORHOOD PEOPLE WORKING AT IT. BUT IT IS A POLICY DECISION.
SO IF THAT'S SOMETHING THAT THE COUNCIL WANTS US TO LOOK AT, IT'S SOMETHING WE COULD LOOK AT. MAYBE THERE'S A MIDPOINT IN THERE WHERE IT'S ONE OF THOSE GOOD FAITH EFFORT OR, YOU KNOW, SOME PROOF THAT YOU ATTEMPTED TO DO THAT.
SO WE WERE REALLY LOOKING AT WAGES FOR THAT. AND IF IT IS SOMETHING THAT, YOU KNOW, IF IT'S THE DIRECTION OF COUNCIL, WE COULD POTENTIALLY LOOK AT ADDITIONAL BOOST. IF THERE'S LOCAL HIRING.
WE'RE OPEN TO THAT KIND OF IDEA. BUT SO WE CAN TALK ABOUT THAT TOO.
ALL RIGHT. THANK YOU, CHAIR WEST. THANK YOU. CHAIRMAN.
AND I'M GLAD WE'RE WE'RE DOING THESE LOOK BACKS.
I HAVE A QUESTION FOR FOR KEVIN IS, YOU KNOW, WE JUST WENT THROUGH A VERY LENGTHY DISCUSSION A COUPLE MONTHS AGO ABOUT CHANGING THE THRESHOLD FOR ADMINISTRATIVE ACTIONS AND OTHER DEPARTMENTS.
THIS HAS BEEN AROUND FOR A WHILE I BELIEVE WHAT FOR EXAMPLE, IF YOU WANT TO JUST PICK THE SMALL BUSINESS ASSISTANT ITEM WHAT TYPE OF TIME SAVINGS AND STAFF, YOU KNOW, JUST KIND OF BRAIN SAVINGS.
DO YOU HAVE HERE BY HAVING THIS ADMINISTRATIVE ACTION MECHANISM IN PLACE? YEAH, I MEAN IT'S PROBABLY 3 TO 6 MONTHS IS SAVED IN TIME.
AND, YOU KNOW, THE THE FIRST SMALL BUSINESS ASSISTANCE GRANT THAT THAT WENT OUT.
LET'S SEE, WHAT WAS THE DATE ON THAT AUGUST. AND THE PROGRAM WAS CREATED IN JANUARY, YOU KNOW, AT THE END OF JANUARY. SO THAT'S JUST AN EXAMPLE.
[01:00:06]
IT SHOULD BE A VERY QUICK PAPERING OF THE DEAL POINTS.I KNOW THAT'S A GOAL WE HAVE. IF THE CITY IS TO BE MORE EFFICIENT AND BE MORE USER FRIENDLY FOR THE PUBLIC, AND THERE IS A TRADE OFF, YOU KNOW, WE WANT TO HAVE OUR CHECKS AND BALANCES AS WELL.
SO I WANT I'M GOING TO BE ASKING THOSE QUESTIONS ON THE TIME SAVINGS WHEN WE DO HAVE THESE PROCESSES IN PLACE, BECAUSE I THINK IT'S IMPORTANT FOR THE PUBLIC TO UNDERSTAND WHY WE HAVE THAT IN PLACE.
THANK YOU. VICE CHAIR RIDLEY. LOOKING AT THE MEMO IN THE FIRST PARAGRAPH, YOU LIST THREE INCENTIVES THAT CAN BE AWARDED.
CAN YOU IDENTIFY WHICH OF THE FOUR PROJECTS YOU APPROVED IN THE FOURTH QUARTER AS TO WHICH ONE OF THESE THREE THEY FALL UNDER? THE, SO THE SMALL BUSINESS ASSISTANCE PROGRAM WAS A TARGET AREA PROJECT.
SO IT'S JUST THE TRADITIONAL AA AWARD OKAY. AND WITH REGARD TO THE THIRD CATEGORY, IT REFERENCES GRANTS THAT ARE MADE BELOW $1 MILLION TO MWBE DEVELOPERS.
IS THIS THAT STILL A VALID CRITERION, GIVEN THE EXECUTIVE ORDERS THAT HAVE CAUSED THE CITY TO REVISE MANY OF THESE KINDS OF CRITERIA? THAT'S A GREAT QUESTION.
SO THAT'S WHAT ITEM THREE. YEAH, IT'S ON THE AGENDA TODAY.
I FORGET WHICH ONE IT IS. IT'S THE F. YEAH. SO F IS A.
OKAY. SO F WILL AFFECT B. OKAY. THANK YOU. ALL RIGHT.
THANK YOU GUYS FOR THAT PRESENTATION. WE'LL GO AHEAD AND MOVE ON TO ITEM C.
OKAY. ALL RIGHT I GUESS I'M INTRODUCING ALL OF THESE.
ITEM C IS A MEMO REGARDING HALPERIN PARK. SO THIS IS A PROPOSED AGREEMENT WHICH WOULD BE A COMBINATION OF A CHAPTER THREE ANY GRANT AGREEMENT AND A TIF DEVELOPMENT AGREEMENT WITH THE SOUTHERN GATEWAY PUBLIC GREEN FOUNDATION IN A TOTAL AMOUNT NOT TO EXCEED 8 MILLION.
6.9 MILLION OF THAT WOULD BE COMING FROM OAK CLIFF GATEWAY TIF DISTRICT, AND 1,035,000 WOULD BE COMING FROM THE 2012 BOND PROGRAM, WHICH IS PROPOSITION THREE, THE ECONOMIC DEVELOPMENT PROPOSITION.
I WOULD MENTION THAT THAT MILLION AND 35,000 FROM THE 2012 BOND PROGRAM IS DISCRETIONARY TO THE MAYOR, AND HE HAS DIRECTED OR REQUESTED STAFF TO BRING FORWARD HIS MILLION DOLLAR COMMITMENT TO, TO HALPERIN PARK.
SO HALPERIN PARK IS, YOU KNOW, REQUIRED TO BE DELIVERED AND DEVELOPED BY THE FOUNDATION, BUT UPON COMPLETION, IT WILL BE ACCEPTED AND OWNED BY THE CITY. SO IT IS A ULTIMATELY WILL BE A CITY PARK.
THERE'S LOTS OF AGREEMENTS ARRANGED THROUGH THE PARK DEPARTMENT.
WITH REGARD TO THE FOUNDATIONS DEVELOPMENT AGREEMENT WITH THEM.
BUT THE REASON WHY THIS ITEM IS, IS HERE BEFORE YOU IS BECAUSE OF TWO THINGS.
ONE IS THE FOUNDATION HAS BEEN CONSTRUCTING THE WHAT WE CALL THE PLAZA AREA, THE PHASE ONE PLAZA AREA, WHICH ARE ALL THE IMPROVEMENTS ON TOP OF THE DECKING SUPERSTRUCTURE.
THEY ARE TARGETING TO COMPLETION IN THE SPRING OF 2026.
THEY HAVE SPENT SIGNIFICANT EFFORT FUNDRAISING AND HAVE HAD SUCCESSFUL DONATIONS SECURED FROM MANY PHILANTHROPIC ORGANIZATIONS, COMMUNITIES, FOUNDATION OF TEXAS, THE MOODY FOUNDATION, AND OF COURSE, THE NAMING RIGHTS GIFT FROM THE HALPERN FOUNDATION.
BUT DESPITE ALL THOSE EFFORTS THERE'S STILL A GAP IN THEIR FUNDING.
AT THE TIME THEY INITIALLY APPLIED TO OUR OFFICE, THAT GAP WAS 24 MILLION.
AND SO AFTER THE CONSTRUCTION OF THE PARK, THEY WILL MOVE INTO OPERATIONS, AND THEY WILL NEED TO USE SOME OF THE FUNDS THEY'VE RAISED TO, TO PAY FOR THEIR OPERATIONS. AND SO IT'S REALLY A CRITICAL PART OF THEIR FUNDING, BOTH TO FINISH THE CAPITAL CONSTRUCTION IMPROVEMENTS AND TO SAVE SOME OF THEIR FUND RAISING MONEY TO HELP THEM START OPERATIONS OF THE PARK IN ORDER TO MINIMIZE THE LINE OF CREDIT,
[01:05:10]
THE DEBT THEY ACTUALLY NEED TO TO UTILIZE. AND SO THEY, THEY'VE COME TO US, I WOULD SAY THE TIF DISTRICT, IF THIS BODY MAY RECALL, IF YOU WERE ON COUNCIL AT THE TIME THE TIFF DISTRICT WAS AMENDED IN 2022.AND SO THIS IS IN LINE WITH THE TIF DISTRICTS PROJECT PLAN AND FINANCING PLAN.
AS A MATTER OF FACT, THIS MORNING, THE BOARD OF DIRECTORS FOR THE OAK CLIFF GATEWAY TIF DISTRICT DID REVIEW AND UNANIMOUSLY APPROVE THE TIF SUBSIDY PORTION THAT'S BEING RECOMMENDED HERE. AND SO THIS IS LET'S SEE IF I'VE COVERED EVERYTHING.
THAT'S AT THE DISCRETION OF THE MAYOR. SO WITH THAT, I'LL STOP AND TAKE ANY QUESTIONS.
THANK YOU. I'M GOING TO GO AHEAD AND START WITH CHAIR WEST SINCE THIS IS ADJACENT TO HIS DISTRICT.
THANK YOU CHAIR, APPRECIATE THIS ITEM COMING FORWARD.
AND ONE OF THE MAIN PURPOSES WAS TO MAKE SURE THE FUNDING WAS AVAILABLE, IF NEEDED, FOR THE DECK PARK TO GET COMPLETED AND THE INFRASTRUCTURE AROUND IT, WHICH IS THE LESS SEXY STUFF TO RAISE MONEY FOR.
AND SO I'M GLAD THIS IS THERE FOR THAT. I'M GLAD THAT THIS 8 MILLION INCENTIVES IS FORWARD, IS BEFORE US TODAY. THE ONE THING NOT MENTIONED THAT I DIDN'T HEAR WAS HOW MUCH HAS BEEN PRIVATELY RAISED BY THE APRIL AND AND AND THEIR AND THEIR GREAT TEAM. DO YOU HAVE AN IDEA OF WHAT THAT IS? BECAUSE I THINK IT'S PRETTY, PRETTY SIGNIFICANT. I COULD DO THE MATH IN MY HEAD, BUT IF THEY'RE IN THE AUDIENCE AND YOU'RE, YOU'RE, YOU WANT THEM TO COME UP, IF YOU DON'T MIND.
SHARE. AND THE REASON I ASK IS TO GIVE YOU GUYS A MOMENT TO BRAG, BUT ALSO TO HIGHLIGHT THAT WHAT IS A BIG INVESTMENT FOR THE CITY ACTUALLY HAS BEEN EXPANDED EXPONENTIALLY BY YOUR FUNDRAISING EFFORTS.
CAN. YOUR MIC. HELLO. OKAY. HI. APRIL ALLEN WITH SOUTHERN GATEWAY PUBLIC GREEN FOUNDATION AND MY COLLEAGUE MIKE GRUBER, WHO'S OUR BOARD CHAIR. SO WE FOR THE PHASE ONE PARK, THE PLAZA AREA THAT WE'RE TALKING ABOUT TODAY, WE'VE RAISED 63 MILLION OF A $75 MILLION BUDGET.
AND SO A LITTLE BIT WE'VE CLOSED THE GAP A LITTLE BIT SINCE WE SUBMITTED OUR INITIAL REQUEST, BUT CERTAINLY STILL YOU KNOW, APPRECIATE THE OPPORTUNITY TO BRING THIS REQUEST BEFORE BEFORE YOU.
AND BESIDES THE 60 MILLION YOU KNOW, OF THE PRIVATE FUNDING ON THE PHASE ONE AMENITIES APRIL'S ALSO HEADED UP THE EFFORT TO PROCURE $80 MILLION SO THAT THE DECK FOR THE SECOND PHASE IS ESSENTIALLY PAID FOR VERY CLOSE TO BEING PAID FOR.
AND THAT'S THAT'S ALL WITH HER. SO SHE'S RAISED FOR PROCURED ABOUT 140, $150 MILLION SO FAR.
THANK YOU. CHAIR. CHAIR GRACEY. YEAH, I JUST HAVE A COMMENT.
JUST TO PUBLICLY THEY'VE ALREADY DONE IT, BUT I JUST WANT TO PUBLICLY CONGRATULATE YOU ON, APRIL, ON THE ON THE WORK THAT YOU'VE DONE. THIS HAS BEEN A TREMENDOUS TASK THAT YOU'VE TAKEN ON.
AND IT'S BEEN A LONG JOURNEY TO GET US WHERE YOU'VE GOTTEN US.
SO I JUST WANT TO PUBLICLY TAKE A MOMENT TO SAY, GREAT JOB ON WHAT YOU'VE DONE TO GET US TO THIS POINT AND LOOKING FORWARD TO SPENDING SOME TIME THERE ON THAT DECK PARK. SO JUST CONGRATULATIONS.
THANK YOU SO MUCH. OBVIOUSLY A TEAM EFFORT AND BUT VERY GRATEFUL.
AND THE ACCOMPLISHMENT IS PHENOMENAL. AGAIN, THIS IS AN EDUCATION FOR ME ON ON THE $8 MILLION OR THE 6 MILLION, $7 MILLION OF TIF POTENTIAL SUBSIDY. HOW IS THAT? IS THAT A IS THAT A GRANT? IS THAT A A REIMBURSEMENT? IS IT A LOAN? HOW DOES THAT HOW IS THAT ACTUALLY STRUCTURED?
[01:10:03]
YEAH. IT'S PAYMENT UPON THEIR COMPLETION OF WHAT'S CALLED THE REQUIRED PROJECT COMPONENTS.SO THEY DO ALL THE THINGS THEY'RE REQUIRED TO DO AS DESCRIBED IN THE MEMO, AND THEN THEY BECOME ELIGIBLE TO RECEIVE THE PAYMENT, WHICH PROBABLY WILL OCCUR IF ALL THINGS GO WELL, THEY WOULD BE ELIGIBLE TO RECEIVE THE PAYMENT IN THE SUMMER EARLY SUMMER OF NEXT YEAR.
GREAT. THANK YOU. VICE CHAIR RIDLEY. THANK YOU, MR. CHAIR. SO KEVIN, TO DOVETAIL ONTO THAT QUESTION WHEN THEY RECEIVE THAT FUNDING AFTER COMPLETION OF ALL THE REQUIREMENTS FOR THE GRANT, IS THAT A GRANT THAT IS THEN PAID BACK THROUGH INCREASED TAX REVENUE THROUGH THE TIF OR AT LEAST 7 MILLION PORTION? YEAH. SO THE THE TIF DISTRICT THAT IS CONTRIBUTING 6.9 MILLION, SOME OF THAT IS ALREADY HELD AS CASH THAT WE'VE COLLECTED FROM THE DISTRICT. SO THE DISTRICT HAS THREE SUBDISTRICTS, IF YOU MAY RECALL, TWO OF WHICH ARE ON THE DISTRICT ONE SIDE AND ONE IS ON THE DISTRICT FOUR SIDE.
THE TWO SUBDISTRICTS IN DISTRICT. IN THE DISTRICT ONE SIDE, THEY ACTUALLY DON'T GET TO TO KEEP EVERYTHING THEY GENERATE IN TAX INCREMENT, THEY SHARE INCREMENT WITH THE D4 SUBDISTRICT.
THIS THE PARK IS ACTUALLY IN THE D4 PORTION OF THE DISTRICT.
SO TAX INCREMENT THAT'S BEING CREATED BY NEW DEVELOPMENTS IN THE D1 PART OF THE DISTRICT ARE HELPING TO FUND THIS PROJECT BECAUSE THIS PROJECT IS BEING FUNDED BY THE D4 SUBDISTRICT. GOT IT.
AND ON PAGE TWO OF THE MEMO, YOU DESCRIBE THAT THERE IS A FUNDING GAP OF 24 MILLION TO COMPLETE CONSTRUCTION OF THE PHASE ONE PLAZA AREA, AND THIS INITIATIVE WILL RAISE $8 MILLION. WHERE DOES THE BALANCE OF THAT 24 MILLION COME FROM? SO THAT'S WHAT WE CONTINUE TO WORK ON THROUGH PHILANTHROPY AND PRIMARILY PHILANTHROPY AND THAT THAT WHOLE AMOUNT IS REALLY TO COMPLETE CONSTRUCTION AND THEN TO SUPPORT OPERATIONS AS WE OPEN. RIGHT.
WELL, CONGRATULATIONS, APRIL, ON YOUR TREMENDOUS FUNDRAISING ABILITY.
I SUSPECT THAT YOU WILL BE MUCH IN DEMAND IF YOU EVER DECIDE TO LEAVE THIS HALPERIN PARK ENTERPRISE.
I OBJECT [LAUGHS]. THANK YOU. COUNCIL MEMBER CADENA.
AND SO I'M EXCITED TO BE THERE WHENEVER THE PARK IS FINISHED.
AND I KNOW WE WERE ABLE TO GET SOME FUNDING THROUGH THE COG TO ACTUALLY START THIS PROJECT.
SO DEFINITELY WANT TO GIVE THEM A SHOUT OUT. I DO HAVE ONE QUESTION.
SO WHAT IS THE EXPECTED O&M FOR THE THE PARK YEARLY.
EXPECTED. THE YEARLY O&M FOR THE PARK. WE'RE ESTIMATING ABOUT 5 MILLION IN TOTAL.
AND SO OUR PLAN IS TO, YOU KNOW, GENERATE THAT THROUGH CULINARY EVENTS.
WE THINK WE CAN WE CAN DO A REALLY BANG UP JOB OF THAT.
BUT BUT HOPEFULLY AS WE GROW AND OUR NEIGHBORHOOD GROWS WITH US.
SO THAT'S ANOTHER POTENTIAL OPPORTUNITY. AND THEN WE DO KNOW THAT WE'LL, WE'LL HAVE TO CONTINUE TO RELY ON PHILANTHROPY AND PRIVATE FUNDING TO SOME DEGREE, BUT HOPEFULLY WE CAN SORT OF RIGHT SIZE THAT BALANCE AS WE MOVE FORWARD.
GREAT. THANK YOU SO MUCH. THANK YOU GUYS FOR THE PRESENTATION.
THIS IS A PROJECT LONG TIME IN THE MAKING. I GO BACK TO MY DAYS ON, ON PARK BOARD AND ON THE PARK SUBCOMMITTEE FOR THE BOND AND AWARDING THAT FIRST, I BELIEVE IT WAS 10 MILLION TO TO GET IT STARTED.
AND HERE WE ARE TODAY. I KEEP HEARING SPRING AND SO I HOPE WE ARE COMMITTED TO DELIVERING THE PARK THIS SPRING AND HAVING FAMILIES IN THE IMMEDIATE AREA AND AFAR BEING ABLE TO COME AND PARTICIPATE AND PLAY AT THE PARK.
KEVIN, HELP ME UNDERSTAND THE WHEN DOES THIS SUBDISTRICT SUNSET? A LONG TIME FROM NOW. IT WAS ONLY CREATED IN 2022.
OKAY, SO I THINK IT GOES TO 2052, WHICH IS, YOU KNOW, FOR ME IS KEEPING IN MIND THAT THIS DISTRICT IS PAYING THE SUBDISTRICT AND THE DISTRICT ARE PAYING FOR THESE TIF DOLLARS.
AND THIS PARK IS GOING TO ABSOLUTELY HELP GENERATE THOSE DOLLARS A LOT FASTER.
AND SO I THINK THIS IS A PROJECT THAT IS DEFINITELY DESERVING OF THESE DOLLARS.
YEAH, I WOULD AGREE. AND YOU KNOW, I FAILED TO MENTION, BUT IT'S IN THE NEAR THE END OF MY MEMO.
THIS IS ABOUT ECONOMIC DEVELOPMENT FOR SURE. IT'S, YOU KNOW, PARKS.
[01:15:03]
MULTIPLE STUDIES HAVE SHOWN THAT PARKS CREATE A REAL ESTATE PREMIUM, THAT THEY HELP CATALYZE ECONOMIC DEVELOPMENT IN AREAS THAT ARE HISTORICALLY UNDERSERVED. AND SO, YOU KNOW, THE STUDY BY THE UNT DALLAS FOLKS FROM A FEW YEARS AGO THEY HAVE VERY OPTIMISTIC PROJECTIONS ABOUT WHAT THE PARK CAN DO FOR THE AREA AROUND IT.WE SHARE IN THOSE OPTIMISTIC PROJECTIONS. SO WE FULLY EXPECT THAT THE PARK, EVEN WHEN PHASE ONE IS DONE WILL START TO CATALYZE THE AREA AROUND IT. AND THIS BODY WILL PROBABLY SEE SOME OF THOSE PROJECTS COME FORWARD IN THE NEXT COUPLE OF YEARS.
AND AS MENTIONED, THIS WILL BECOME A CITY PARK UNDER THE PURVIEW OF THE PARK DEPARTMENT.
AND I THINK IN APRIL MAYBE MAY. CORRECT ME IF I'M WRONG, BUT I THINK THE O&M AGREEMENT BETWEEN THE FOUNDATION AND THE PARK AND REC DEPARTMENT IS COMING BEFORE THE FULL COUNCIL NEXT WEEK, OR MAYBE AT THE END OF THE MONTH.
AND IT'S A FEW WEEKS OUT, BUT IT WILL BE COMING BEFORE COUNCIL AS WELL.
AND THE FOUNDATION IS COMMITTED TO PUTTING SOME DOLLARS INTO THE OPERATIONS.
OH, 100%. 100%. GREAT. THANK YOU. KEVIN, DO WE NEED A MOTION TO MOVE THIS FORWARD? I'LL DEFER TO THE ATTORNEYS ON THAT, BUT IT'S IT'S ON THE AGENDA AS POTENTIALLY AN ACTION ITEM.
SO IF THE BODY WANTS TO, I THINK WE HAVE A COUNCIL MEMBER THAT MIGHT WANT TO MAKE A MOTION FOR IT.
MOVE TO RECOMMEND TO CITY COUNCIL APPROVAL OF THIS ITEM.
ALL IN FAVOR, SAY AYE. AYE. ANY OPPOSED? MOTION CARRIES.
THANK YOU ALL. THANK YOU. ALL RIGHT. LET'S GO AHEAD AND GO TO OUR NEXT ITEM.
OKAY. ITEM D I'LL GIVE A QUICK OVERVIEW AND WE'LL OPEN IT UP FOR QUESTIONS.
ITEM D IS ALSO IN THE OAK CLIFF GATEWAY TIF DISTRICT.
THIS IS A SMALL BUT EXCITING PROJECT BEING PROPOSED BY PROXY PROPERTIES.
SO AJ RAMLER THIS IS THE SAME DEVELOPER WHO'S DOING EAST DOCK REDEVELOPMENT, WHICH WAS A PROJECT NEAR THE ZOO THAT WAS APPROVED FOR A SUBSIDY IN 2024 AND IS NOW UNDER CONSTRUCTION.
SO THIS IS, LIKE I SAID, A SMALL BUT MIGHTY PROJECT AT 549 EAST JEFFERSON.
IT'S THE OLD FORMERLY KNOWN AS OAKCLIFF METHODIST CHURCH.
IT IS A HISTORIC PROPERTY. IT HAS A CITY HISTORIC LANDMARK FROM 1995.
IT WAS DESIGNATED BY THE STATE AS A HISTORICAL LANDMARK IN 1999.
IT IS 43,000 GROSS SQUARE FEET ON 1.7 ACRES. PROPERTY HAS BEEN VACANT FOR TEN YEARS.
IT WAS DAMAGED BY A FIRE A COUPLE YEARS BACK, BUT PROXY PROPERTIES DID BUY THE PROPERTY IN 2023 WITH A FULL INTENTION TO DELIVER THIS PROJECT. IT WILL CONSIST OF A FULL REHAB AND ADAPTIVE REUSE OF ALL THE THREE, ALL THREE EXISTING BUILDINGS THAT ARE ON THE PROPERTY INTO FLEXIBLE WORKSPACES FOR COMMERCIAL AND RETAIL TENANTS, AND APPROXIMATELY 45 MULTI-FAMILY RESIDENTIAL UNITS.
20, OF WHICH, 20% OF WHICH WILL BE AFFORDABLE AT OR BELOW 80% AMI FOR 15 YEARS, AS REQUIRED BY OUR POLICY AND THE TIF DISTRICT BOARD OF DIRECTORS DID RECOMMEND UNANIMOUSLY TO APPROVE THIS ON DECEMBER 15TH.
SO WITH THAT, I'LL STOP AND TAKE ANY QUESTIONS.
ALL RIGHT. THANK YOU. I'M GOING TO START WITH VICE CHAIR RIDLEY THIS TIME.
NO QUESTIONS. COUNCIL MEMBER ROTH. CHAIR GRACEY.
CHAIR WEST. THANK YOU CHAIR. YEAH. JUST A COUPLE COMMENTS.
THIS IS EXCITING. THIS ONE IS I THINK KEVIN DESCRIBED IT WELL, IT'S LIKE A LITTLE MORE LOW KEY.
IT'S SMALLER, BUT IT'S A REALLY TRANSFORMATIONAL PROJECT FOR THE DISTRICT.
AND I REMEMBER COMMISSIONER [INAUDIBLE] COMMISSIONER DIANE SHERMAN AND DAVID PREZIOSI COMING TO ME RIGHT WHEN I GOT ELECTED IN 2019, FREAKING OUT BECAUSE THERE WAS BROKEN WINDOWS, AN ABSENTEE LANDLORD LIVING IN SOMEWHERE OVER IN THE MIDDLE EAST.
AND THEY WERE WORRIED THIS BUILDING WAS GOING TO FALL INTO FURTHER DISREPAIR.
AND THEN THERE WAS A FIRE WHICH I DIDN'T EVEN REALIZE HAD HAPPENED.
SO WHAT WE WE TRIED TO CONTROL IT WITH CODE ENFORCEMENT WITH THEY DID THE BEST THEY COULD.
BUT WHAT WE REALLY NEEDED IS WHAT WE'RE GETTING TODAY.
A NEW OWNER WHO WANTED TO COME IN, RESTORE IT, PRESERVE IT, AND ADAPTIVELY REUSE IT.
AND SO THIS IS A THIS IS ADAPTIVE REUSE 101 IN MY BOOK.
[01:20:02]
AND I'M JUST REALLY EXCITED TO SEE THIS PROJECT COME FORWARD.SO THAT'S IT. THANK YOU. COUNCILMEMBER CADENA.
AND SO I KNOW HE'S GOING TO DO A GREAT JOB IN THIS, SO I'M EXCITED TO SEE THE FINAL PRODUCT.
THANK YOU. I, TOO AM SUPPORTIVE OF THIS PROJECT.
TAKING IT INTO PRESERVING A HISTORIC DEVELOPMENT.
BUT I DO HAVE A CONCERN. AND I THINK IT'S SOMETHING THAT WE NEED TO LOOK AT FOR FUTURE PROJECTS.
AND THAT'S THE THE DOLLAR AMOUNT THAT WE PUT INTO TIFS.
THIS ONE IS AWARDING NEARLY 50% OF THE OVERALL PROJECT.
THE OVERALL PROJECT IS $19.5 MILLION. WE'RE, AS A CITY, ARE PUTTING IN $10 MILLION.
AND THIS ONE'S 45 UNITS. AND SO KEVIN HELPED ME UNDERSTAND HOW WE PUT IN SOME SOME MEASURES IN PLACE SO THAT THERE'S THE RIGHT PERCENTAGE, THE RIGHT WHEN WE'RE GOING THROUGH UNDERWRITING AND LOOKING AT HOW MUCH CAPITAL A PROJECT SHOULD BE RECEIVING.
YOU KNOW, AGAIN, WE HAVE SOME THAT ARE ONLY 10%, SOME THAT GO SLIGHTLY OVER 50.
AND SO HOW DO WE GET TO THAT MAGIC NUMBER OF MAKING SURE THAT THE INVESTMENT IS COMING, YOU KNOW, MAINLY ON THE DEVELOPER AND NOT THE CITY. YEAH, THAT'S A GREAT QUESTION.
I WOULD SAY FIRST THAT THERE IS NO MAGIC NUMBER.
SO WE, WE GO THROUGH A PROCESS WITH AN OUTSIDE UNDERWRITER.
BUT THERE IS A SLIDE ABOUT THE UNDERWRITING. THE DEVELOPER'S APPLICATION FOR THIS CAME IN AT TEN REQUESTING TEN POINT, ALMOST 10.8 MILLION. BUT AS A RESULT OF THE UNDERWRITING, WE RECOMMENDED 10 MILLION.
IT IS A BIG NUMBER AND IT'S ALMOST HALF OR IT'S HALF OF THE TOTAL PROJECT COST.
AGAIN, THAT'S THAT 19.5 OR 20 MILLION IS AN ESTIMATED COST.
BUT TO YOUR QUESTION ABOUT CAPPING THE CITY'S PARTICIPATION.
I WOULD SAY WHEN WE GET TO THE ITEM ABOUT PROPOSED AMENDMENTS TO THE INCENTIVE POLICY, WE CAN TALK SPECIFICALLY ABOUT SOMETHING THAT THE STAFF IS PROPOSING THAT WOULDN'T OUTRIGHT LIMIT OR CAP THE AMOUNT OF CITY PARTICIPATION, BUT WOULD REQUIRE A HIGHER THRESHOLD OF COUNCIL APPROVAL SHOULD THE CITY'S PARTICIPATION EXCEED 50% OF THE PROJECT COST. THANK YOU FOR THAT.
AND I KNOW THAT'S SOMETHING THAT WE HAD DISCUSSED PREVIOUSLY.
AND I THINK THERE'S EXCEPTIONS FOR HISTORIC BUILDINGS LIKE THIS ONE.
BUT I JUST WANT TO, I JUST WANT TO MAKE SURE WE'RE PUTTING SOMETHING IN PLACE MOVING FORWARD.
AND SO WITH THAT, ANY OTHER QUESTIONS ON THIS ITEM? ALL RIGHT. ALL RIGHT. WE'LL GO AHEAD AND MOVE ON TO THE NEXT ITEM.
OKAY. WE'RE ON ITEM E. CORRECT. AND ACTUALLY NO.
OKAY, I'M LOOKING AT MY DEPUTY DIRECTOR FOR HELP WITH THIS ONE.
AND, KEVIN, I THINK WE ARE GOING TO I'M GOING TO DEFER TO MY COLLEAGUE HERE, AND I BELIEVE WE'RE GOING TO MOVE THIS ITEM TO A LATER DATE. SO COUNCIL MEMBER GRACEY. YES. I JUST I DON'T KNOW IF I NEED TO MAKE A MOTION OR NOT, BUT I JUST WANT TO MAKE YOU DON'T. YOU DON'T NEED TO. WE CAN JUST. WE CAN JUST SKIP IT. PERFECT. ALL RIGHT. THANKS. OKAY.
ITEM E DEFERRED UNTIL A LATER DATE. ITEM F. OKAY.
SO ITEM F IS AUTHORIZING, SO NEXT WEEK, THE COUNCIL WILL BE ASKED TO SIMPLY AUTHORIZE OR SCHEDULE A PUBLIC HEARING FOR JANUARY 28TH TO RECEIVE COMMENTS ON PROPOSED AMENDMENTS AND UPDATES TO THE CITY'S INCENTIVE POLICY.
AND AS THE RESULT OF THE COUNCIL'S APPROVAL IN DECEMBER OF THE CHANGES THAT WERE MADE TO ENSURE ALIGNMENT WITH FEDERAL DIRECTIVES AND ASSOCIATED POLICY AMENDMENTS. THAT'S A MOUTHFUL, BUT THE COUNCIL IS OBVIOUSLY AWARE OF ALL THE CHANGES THAT HAD TO BE MADE AS A RESULT OF
[01:25:02]
THE FEDERAL DIRECTIVES. SO THE CITY'S INCENTIVE POLICY IS NO EXCEPTION TO THAT.SO MOST OF THOSE CHANGES HAVE TO DO WITH THE LANGUAGE THAT USED TO BE REFERRED TO AS BUSINESS INCLUSION AND DEVELOPMENT OR BID. SO THAT WAS A POLICY THAT REQUIRED A CERTAIN MINIMUM PERCENTAGE PARTICIPATION BY CERTIFIED MINORITY OR WOMEN OWNED BUSINESSES, SUBCONTRACTORS IN THE CONSTRUCTION OF THESE PROJECTS, AND EVERY ONE OF THESE AGREEMENTS HAD MINIMUM REQUIREMENTS ATTACHED TO THEM BECAUSE OF OUR POLICY. REFERRING TO THE CITY'S OVERALL BUSINESS INCLUSION POLICY, SINCE THE BUSINESS INCLUSION AND DEVELOPMENT POLICY WENT AWAY AND WAS REPLACED ON DECEMBER 10TH BY THE DEVELOPING REGIONAL AND INCLUSIVE VENDOR ENTERPRISES OR DRIVE PROGRAM, THEN YOU CAN SEE IN THE RED LINE ALL OF THE REFERENCES FROM THE PREVIOUS PROGRAM OR POLICY ARE NOW REFERENCING THE NEW POLICY.
THE SECOND PROPOSED AMENDMENT IN OUR POLICY IS A NEW PROVISION, AS I WAS JUST TALKING ABOUT, THAT WOULD ALLOW CITY COUNCIL TO APPROVE WHAT'S CALLED A NON-CONFORMING NEGOTIATED INCENTIVES PROJECT, BUT WITH A THREE QUARTERS VOTE OF THE CITY COUNCIL.
THIS PROVISION WAS PREVIOUSLY IN THE INCENTIVE POLICY OR THE SET OF PROGRAMS WE HAD THAT WERE GUIDING OUR INCENTIVES FOR MANY, MANY YEARS, LIKE FOR MORE THAN 25 YEARS, FROM THE LATE 80S UNTIL 2023, WE DID HAVE HAVE A NONCONFORMING PROVISION IN THOSE POLICIES. BUT WHEN THE CITY COUNCIL APPROVED THE NEW INCENTIVE POLICY IN 2023, IT DID NOT CONTAIN A NONCONFORMING PROJECT PROVISION. AND SO WE'RE PROPOSING TO TO REINTRODUCE THAT PROVISION, AGAIN, TO ALLOW FOR FLEXIBILITY, TO ALLOW FOR THE POSSIBILITY OF VERY UNIQUE PROJECTS THAT MAY BE ADVANCING ECONOMIC DEVELOPMENT IN A VERY SPECIAL WAY, BUT DON'T MEET THE, YOU KNOW, THE LETTER OF THE LAW AS IT REFERS TO OUR POLICY.
AND THE THIRD BATCH OF AMENDMENTS PROPOSED ARE TO CLARIFY THAT AS A SO I WOULD GO BACK TO THE FY 26 BUDGET, AS IT WAS PROPOSED BY THE CITY MANAGER AND APPROVED BY THE COUNCIL IN SEPTEMBER OF THIS YEAR, DID HAVE A REORGANIZATION, A SUBSTANTIAL REORGANIZATION OF THE HOUSING DEPARTMENT WITH MANY OF THE FUNCTIONS OF THE HOUSING DEPARTMENT MOVING TO THE NEW HOUSING AND COMMUNITY EMPOWERMENT OFFICE, AND MOST AND ALL OF THE DEVELOPMENT, REAL ESTATE DEVELOPMENT RELATED FUNCTIONS OF THE HOUSING DEPARTMENT TRANSITIONING OVER TO THE OFFICE OF ECONOMIC DEVELOPMENT.
AND SO WE ARE PROPOSING TO CLARIFY, ADD LANGUAGE TO OUR POLICY THAT CLARIFIES THAT THE OFFICE OF ECONOMIC DEVELOPMENT HAS ADMINISTRATIVE RESPONSIBILITY FOR FUNDING FROM PROPOSITION H OF THE CITY'S 2024 GENERAL OBLIGATION BOND PROGRAM, AND FOR FUNDING FROM THE CITY'S MIXED INCOME HOUSING DEVELOPMENT BONUS PROGRAM OR THE FEE IN LIEU FUND THAT IS THE RESULT OF THAT PROGRAM.
AND THEN A COUPLE OF OTHER MINOR CLEANUP PROVISIONS AND TECHNICAL CORRECTIONS.
SO WITH THAT, I'LL STOP AND WE'LL TAKE QUESTIONS.
COUNCIL MEMBER ROTH. THANK YOU. A COUPLE OF THINGS ON THE ON THE ADMINISTRATIVE PART OF THE DOCUMENT, REVISING IT, I NOTED THAT THERE MAY BE SOME TYPOS, SOME OTHER, SOME ADJUSTMENTS THAT STILL MADE TO MAY NEED TO BE HANDLED.
I KNOW THERE'S SOME ELIMINATION OF SOME FOOTNOTES.
THERE MAY BE SOME. I'D LIKE TO SUGGEST THAT THEY LOOK AT THE EXHIBITS TO MAKE SURE THAT THEY'VE, THAT THERE MAY BE SOME ADDITIONAL REDACTIONS OR, OR ADJUSTMENTS.
SO I WOULD JUST SAY THAT I'D BE IN FAVOR OF THE CHANGES SUBJECT TO A CLOSER REVIEW.
ADMINISTRATIVELY, I DON'T THINK IT'S NECESSARY TO COME BACK TO THIS GROUP, BUT I'D LIKE THE FOLKS TO JUST MAKE SURE THAT THEY'VE GOT ALL THE THE PAPERWORK DONE PROPERLY. NOTED. THE OTHER THE OTHER THING I'D LIKE TO ASK IS WITH REGARD TO THE NONCONFORMING SUPERMAJORITY. I THINK THAT'S A GOOD PROVISION TO HAVE.
AND I LIKE THE IDEA THAT IT'S COMING TO THE CITY COUNCIL.
MY QUESTION IS, THE, WHAT IS THE SUPERMAJORITY OF WHAT NUMBER IS THAT MAJORITY? IS IT OF A QUORUM OF THE CITY COUNCIL? IS IT OF THE IS IT A FULL NUMBER OF OUT OF THE 15 OR THE 14? HOW WHAT IS THE 75% OF. YEAH, OUR LANGUAGE DOESN'T SPECIFY AS WE'RE PROPOSED, BUT I MAY IF LISA'S OVER THERE AND MAY REFER TO THE
[01:30:09]
ATTORNEYS ON WHAT THE TYPICAL COUNCIL THREE THREE QUARTER SUPERMAJORITY.A SUPERMAJORITY IS THREE QUARTERS OF THE ENTIRE BODY, NOT JUST THE QUORUM, ARE THOSE PRESENT.
SO UNLESS WE SPECIFY SOMETHING DIFFERENT, THAT'S WHAT THAT MEANS.
AS WE'VE PROPOSED IT, IT WAS OF THE ENTIRE ENTIRE BODY.
YES. SO IT'S WHETHER THERE'S SO IT'S, IT'S, IT'S OF THE 14 OR OF THE 15.
15. YEAH. RATHER THAN REGARDLESS OF IF THEY'RE SITTING THERE OR NOT.
CORRECT. OKAY. AND THEN THE OTHER QUESTION WAS, WHICH WAS REALLY RELATED COUNCIL MEMBER TO MORENO'S CALL DISCUSSION IS, HOW DO WE SORT OF CREATE SOME ADDITIONAL GUIDELINES, YOU KNOW CHANGES IN SOME OF THE INCENTIVE PACKAGES SO THAT WE CAN TRY TO ADDRESS SITUATIONS LIKE THIS HISTORICAL SITUATION? AND IN PARTICULAR, WHAT I'M AND I DON'T THINK THAT THIS IS THE PLACE TO DO IT, BUT I'M TRYING TO FIGURE OUT HOW DO WE GET ON AN AGENDA AT SOME POINT TO LOOK AT THE ACTUAL POLICIES AND SEE IF THERE HAS TO BE A REVISION IN PERHAPS LIMITING THE ABILITY TO HAVE TO HAVE SECOND LIENS, TO GIVE GRANTS AND AND FORGIVENESS UNDER CERTAIN CIRCUMSTANCES TO MAYBE LIMIT THE, THE ABILITY TO WAIVE OUR RIGHTS TO HAVE POSITIONS IN CASE OF DEFAULTS AND STUFF FROM, FROM A DEVELOPER.
AND IN OTHER WORDS, IN ORDER TO PROTECT THE CITY ULTIMATELY IN THEIR, THEIR SITUATIONS, IF WE ARE GOING TO GRANT SOME KIND OF CHANGE IN THOSE, I THINK THE COUNCIL NEEDS TO BE APPROPRIATELY ADVISED.
HOW WOULD WE, HOW DO WE PROCEED ON THAT WITH, WITH REGARD TO? WE'D PROBABLY START WITH I WOULD COME AND VISIT YOU AND I WANT TO HEAR WHAT YOUR THOUGHTS ARE FIRST.
IT THING. IT MAY BE THINGS THAT NEED TO CHANGE IN APPLICATION FORMS AND WHATNOT.
AND AGAIN, MY INTEREST IS NOT TO LIMIT. ABSOLUTELY.
WE WANT TO ENCOURAGE ECONOMIC DEVELOPMENT. AND WE WANT TO CERTAINLY MAKE SURE THAT THAT WE'RE AGGRESSIVELY TRYING TO HELP GROW AND PROMOTE THE CITY AND THE IN OUR COMMUNITIES HERE. BUT AT THE SAME TIME, I THINK WE REALLY NEED TO BE FISCALLY RESPONSIBLE IN MAKING SURE THAT THESE PROJECTS ARE VETTED, THAT THEY'RE SECURED, AND THAT IF SOMETHING DOES HAPPEN THAT THE CITY IS, IS NOT THE LAST GROUP ON THE LIST GETTING PAID OR REPAID BACK? YEAH. THANK YOU.
I WOULD I WOULD ADD THAT NEARLY ALL OF THE FUNDING THAT IS COMMITTED TO PROJECTS THROUGH THE OFFICE OF ECONOMIC DEVELOPMENT, ASIDE FROM SPECIAL PROVISIONS IN THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND THAT REGULATES LOANS.
NEARLY EVERYTHING WE DO IS IS A GRANT PAYABLE UPON PERFORMANCE AND NOT LOANS INTO THE PROJECT.
YOU KNOW, SO MOST OF OUR THAT'S TO SAY MOST OF OUR DEAL MAKING IS VERY LOW RISK.
IS KEVIN, IS THERE AN OPPORTUNITY AND AGAIN NOT TO TO DO COMMITTEE WORK HERE, BUT IS THERE AN OPPORTUNITY TO TO FOCUS ON THE FACT THAT IF PROJECTS ARE SUCCESSFUL IN THE FUTURE AND THEY DO ALLOW FOR, FOR OPPORTUNITIES FOR GROWTH, THAT WE DO TAKE A POSITION THAT THE CITY CAN RECEIVE SOME KIND OF OF REIMBURSEMENT RATHER THAN GIVING GRANTS AND STUFF.
IN OTHER WORDS, IF WE'RE IF WE'RE PROMOTING AND SUPPORTING THESE KIND OF, OF INVESTMENTS ULTIMATELY, IS THERE AN OPPORTUNITY FOR US TO BENEFIT FROM GETTING SOME OF THAT MONEY BACK IF THOSE DEVELOPMENTS ARE SUCCESSFUL? YEAH, I THINK THERE IS. SHE WAS JUST WHISPERING MY EAR THAT SHE'S AWARE OF MAYBE 1 OR 2 IN THE RECENT PAST.
SO WHEN I COME AND SEE YOU, WE CAN TALK IN DETAIL.
THAT'D BE GREAT. THANK YOU, I APPRECIATE THAT. VICE CHAIR RIDLEY.
THANK YOU, MR. CHAIR, WITH REFERENCE TO ITEM THREE ON PAGE TWO OF THE MEMO, THAT THERE WILL BE A TRANSFER OR CLARIFICATION OF THE TRANSFER OF ADMINISTRATIVE RESPONSIBILITY FOR FUNDING FROM PROP H TO OED.
IT ALSO INCLUDES FUNDING FROM THE CITY'S MIHDB HOUSING FUND.
[01:35:04]
WILL THAT FUND NOW COME UNDER THE ADMINISTRATION OF YOUR DEPARTMENT? AND WILL IT BE SIMILARLY LIMITED TO USAGE OF FUNDS TO HOUSING PROJECTS AS OPPOSED TO ANY ECONOMIC DEVELOPMENT INCENTIVE? YEAH. SO TO CLARIFY, THE DECISION THAT THE OFFICE OF ECONOMIC DEVELOPMENT IS THE ADMINISTRATIVE AGENT FOR THOSE TWO FUNDS HAS ALREADY OCCURRED. THAT WAS AN ORGANIZATIONAL DECISION BY THE CITY MANAGER AS APPROVED BY THE COUNCIL WITH THE BUDGET.BUT YOU ARE CORRECT THAT WE'VE REVIEWED THE PROGRAM, MIHDB SPECIFICALLY, AND IT PROBABLY NEEDS TO BE REVISED TO GIVE MORE CLARITY ABOUT HOW THAT FUND IS USED.
I THINK THERE'S 6 MILLION IN THAT FUND CURRENTLY.
AND I THINK THE HOUSING DEPARTMENT HAD PREVIOUSLY COMMITTED A LITTLE BIT TO, TO PROJECTS.
SO, YEAH, I MEAN, I HAVE THE PROGRAM STATEMENT IN FRONT OF ME.
IT BASICALLY SPEAKS TO THE PREVIOUS HOUSING POLICY.
THAT WAS TWO HOUSING POLICIES AGO BECAUSE THIS WAS THIS PROGRAM WAS CREATED IN 2022.
SO THAT WAS THE 2018 THROUGH 2024 HOUSING POLICY.
SO IF WE WERE TO WHEN WE ARE READY TO DEPLOY THE FUNDS FROM MIHDB, I ANTICIPATE THAT WE'LL NEED TO BRING FORWARD A PROPOSAL TO REVISE THE PROGRAM THAT GOVERNS THE USE OF THE FUND.
WELL, I THINK IT'S PRETTY CLEAR FROM THE INITIATION OF THAT MIHDB PROGRAM, WHICH I WAS VERY INVOLVED IN, THAT IT WAS INTENDED TO ALLOW DEVELOPERS OF HIGH RISE, EXPENSIVE CONSTRUCTION TO PAY INTO THE FUND SO THAT THE CITY COULD USE THAT FUND TO INCENTIVIZE PROJECTS THAT HAD UNITS THAT WERE LESS EXPENSIVE TO CREATE AFFORDABLE UNITS. AND SO I DON'T THINK THERE'S ANY DISPUTE ABOUT THE FACT THAT THAT MONEY WAS TO BE USED TO INCENTIVIZE AFFORDABLE HOUSING PROJECTS. AND SO IF YOU NEED CLARIFICATION ON THAT, THEN BY ALL MEANS BRING THAT TO THE COUNCIL.
BUT I DON'T THINK THERE'S GOING TO BE ANY DISPUTE THAT THAT WAS ITS INTENTION.
AND THAT'S WHY THAT FUND WAS LODGED IN THE HOUSING DEPARTMENT.
SURE. YEAH. I AGREE WITH YOU. IN CONCEPT. IT'LL PROBABLY BE A CONVERSATION THAT STAFF HAS WITH THE ATTORNEY'S OFFICE, JUST TO MAKE SURE THEY FEEL COMFORTABLE WITH THAT INTERPRETATION.
ALL RIGHT. THANK YOU. COUNCIL MEMBER CADENA. CHAIR GRACEY.
CHAIR WEST. QUESTION IS, SO THIS COMES BACK FOR PUBLIC HEARING ON THE 28TH.
CORRECT. IS THAT THE SAME DATE THAT COUNCIL WILL TAKE ACTION, OR DOES THAT SIMPLY OPEN THE PUBLIC HEARING? WELL, IT'S LISTED. SO THE WAY THAT THESE THINGS WORK IS YOU CALL THE PUBLIC HEARING OR HOLD THE PUBLIC HEARING.
AND AT THE CONCLUSION YOU CLOSE THE PUBLIC HEARING AND TAKE ACTION IF THE BODY DESIRES TO DO THAT.
SOMETIMES I GUESS THE BODY COULD NOT WANT TO TAKE ACTION AND DEFER IT FOR SURE.
OKAY, SO IN ORDER TO AVOID THAT, IF THERE'S ANY ONE ON THIS BODY THAT WANTS TO MAKE ADDITIONAL RECOMMENDATIONS OR GET CLARIFICATION WHEN DO YOU NEED TO GET THAT FEEDBACK BY? PROBABLY BY THE END OF NEXT WEEK. OKAY. ALL RIGHT.
I KNOW THAT I WANT TO CONTINUE THAT CONVERSATION.
KEVIN. OKAY. SO IF YOU'LL GET WITH MY OFFICE, THAT WOULD BE GREAT.
ALL RIGHT, NOW THAT IS FINISHES THAT ITEM. I WILL GO TO OUR LAST ITEM, G.
ITEM G IS INFORMATIONAL, BUT IS A FEEL GOOD PIECE OF INFORMATION.
ACTUALLY, I'M GOING TO STOP TALKING AND LET HEATHER TALK ABOUT THIS.
THIS IS HER BABY. SURE. SO RIGHT BEFORE CHRISTMAS, WE RECEIVED A GIFT FROM THE CDFI FUND AND WE WERE AWARDED THE DALLAS DEVELOPMENT FUND, WHICH IS THE ENTITY THAT WE CREATED TO OPERATE OUR NEW MARKETS.
TAX CREDIT PROGRAM WAS AWARDED A $55 MILLION ALLOCATION IN NEW MARKETS TAX CREDITS.
SO WE'VE ALREADY RECEIVED 240 MILLION OVER THE COURSE OF THE PROGRAM SINCE 2009.
AND WE'VE DEPLOYED EVERYTHING BUT 11 MILLION OF THAT TO A VARIETY TO 22 PROJECTS ACROSS THE CITY.
AND THAT IS A DESIGNATED CENSUS TRACTS BY THE CDFI FUND.
WE WILL DO A CALL FOR PROJECTS. WE WILL HAVE AN INFORMATION SESSION.
YOU KNOW, WE JUST FOUND OUT ABOUT IT LIKE LITERALLY WEDNESDAY BEFORE CHRISTMAS. SO WE HAVEN'T QUITE WORKED OUT THE MARKETING PLAN, BUT THAT'S SOMETHING THAT WE'LL BE WORKING ON AND HAVE STUFF READY TO GO PROBABLY IN FEBRUARY.
[01:40:03]
THANK YOU. ANY QUESTIONS ON THIS ITEM? SEEING NONE.CONGRATS. THE TIME IS NOW 2:43 AND WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.