Feb 03, 2026 Special Called Finance Committee

OKAY EVERYBODY. IT IS 1:14 P.M. ON FEBRUARY 3RD, 2026.

[Special Called Finance Committee on February 3, 2026.]

[00:00:07]

WELCOME, EVERYBODY. WE HAVE A PACKED AGENDA TODAY, SO I JUST WANT TO LET FOLKS KNOW AS WE GO THROUGH THE AGENDA, WE'RE GOING TO GO ALL THE WAY JUST STRAIGHT THROUGH.

EXCEPT I AM GOING, ON THE ITEM C, WHICH IS THE WIC DISCUSSION.

I'M GOING TO MOVE THAT TO AFTER ITEM D, AS IN DELTA.

SO OTHER THAN THAT, ONE SWITCH. WE´LL KEEP THE AGENDA JUST LIKE IT IS.

AND WITH THAT BEING SAID, WE WILL KICK THIS OFF WITH APPROVAL OF THE MINUTES FROM DECEMBER 9TH, 2025. DO I HAVE A MOTION? SO MOVED. SECOND. I GOT A MOTION AND A SECOND.

ALL THOSE IN FAVOR SAY AYE. ANYBODY OPPOSED? MOTION CARRIES.

ALRIGHT. NEXT IS THE SPECIAL RECOGNITION ON GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD TO CITY OF DALLAS IN CONTROLLER'S OFFICE.

I'M GOING TO TURN IT OVER TO JACK IRELAND. THANK YOU SIR. JACK IRELAND, CHIEF FINANCIAL OFFICER.

AND THANK YOU VERY MUCH FOR ALLOWING US TO TAKE A FEW MINUTES OUT OF YOUR VERY BUSY SCHEDULE FOR THIS RECOGNITION.

SO I JUST HAVE A SHORT SUMMARY THAT I WOULD LIKE TO READ.

AND WHILE I DO, IF THE FINANCIAL REPORTING TEAM WOULD COME DOWN FRONT FOR US.

SO TO START WITH, ON DECEMBER 19TH, 2025, THE GOVERNMENT FINANCE OFFICER ASSOCIATION OF THE UNITED STATES AND CANADA AWARDED THE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING TO THE CITY OF DALLAS FOR ITS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDING SEPTEMBER 30TH OF 2024.

THE CITY CONTROLLER'S OFFICE FIRST RECEIVED THIS AWARD IN FISCAL YEAR 1981, AND HAS EARNED THE RECOGNITION CONSECUTIVELY FOR THE LAST 19 YEARS, SINCE FISCAL YEAR 2006. THE CERTIFICATE OF ACHIEVEMENT IS THE HIGHEST FORM OF RECOGNITION IN GOVERNMENT ACCOUNTING AND FINANCIAL REPORTING, AND REFLECTS A COMMITMENT TO TRANSPARENCY AND FULL FINANCIAL DISCLOSURE.

THE REPORT HAS BEEN JUDGED BY AN IMPARTIAL PANEL TO MEET THE HIGH STANDARDS OF THE PROGRAM, WHICH INCLUDES DEMONSTRATING A CONSTRUCTIVE SPIRIT OF FULL DISCLOSURE, TO CLEARLY COMMUNICATE ITS FINANCIAL STORY AND MOTIVATE POTENTIAL USERS AND USER GROUPS TO READ THE REPORT. SO I WOULD LIKE TO TAKE THIS TIME TO RECOGNIZE SHERI KOWALSKI, CITY CONTROLLER, LANCE SEAHORN, ASSISTANT CITY CONTROLLER, AND THE ENTIRE FINANCIAL REPORTING TEAM.

AND THANK YOU FOR A JOB WELL DONE AND FOR ALL OF YOUR HARD WORK.

AGAIN, THANK YOU. CHAIRMAN WEST, THANK YOU VERY MUCH.

THIS IS AN IMPORTANT FUNCTION OF THE CITY OF DALLAS.

WE'RE REQUIRED TO DO THE ANNUAL COMPREHENSIVE FINANCIAL REPORT.

IT IMPACTS OUR ABILITY TO HAVE OUR BOND RATINGS AND SELL THE DEBT THAT WE DO.

IT'S IMPORTANT, THERE'S NEW LAWS RELATED TO HAVING THE SINGLE AUDIT FINISHED BECAUSE IT COULD AFFECT YOUR FUTURE TAX RATES.

SO IT'S A VERY IMPORTANT FUNCTION. AND THIS TEAM, SMALL BUT MIGHTY TAKING ON THIS TASK.

AND WE REALLY APPRECIATE THEM. AND THANK YOU FOR YOUR COMMITTEE'S WORK.

THANK YOU, MR. IRELAND. AND THESE ARE THE KIND OF THINGS WE NEED TO BE DOING AT THE CITY TO RECOGNIZE THE GREAT WORK OF OUR TEAM MEMBERS HERE.

PLEASE MAKE SURE YOU PUSH THIS OUT AS A PRESS RELEASE.

IT'S ALWAYS GOOD TO HAVE GOOD NEWS COMING OUT OF THE CITY.

MEDIA LIKES TO REPORT ON THE BAD STUFF, AND THIS IS OBVIOUSLY SOMETHING WE SHOULD CELEBRATE AS A CITY.

SO MOVING ON FROM THERE, WE'RE GOING TO GO TO ITEM B, AS IN BRAVO, WHICH IS THE NEW CITY AUDITOR SEARCH PROCESS AND NOMINATING COMMISSION PER DALLAS CITY CODE 2-17.2. I'M GOING TO ASK MR. SWANN IF YOU´D JUST COME DOWN BECAUSE WE'RE GOING TO HAVE SOME QUESTIONS FOR YOU, MOST LIKELY AS PART OF THIS.

I'M GOING TO JUST START BY REMINDING MY COLLEAGUES THAT ON JANUARY 16TH, I SENT OUT AS SOON RIGHT AFTER I HEARD FROM MR. SWANN, HE'S GOING TO BE SAILING OFF INTO THE WORLD OF RETIREMENT.

THAT WE'RE GOING TO NEED TO GET A NEW, OR START LOOKING FOR A NEW CITY AUDITOR VERY QUICKLY.

MARK'S LAST DAY, I THINK, IS STILL SAINT PATRICK'S DAY, RIGHT? MARCH 17TH? AND SO ON JANUARY 16TH, I SEND OUT A LETTER TO ALL OF YOU GUYS AND ACTUALLY THE ENTIRE COUNCIL ASKING FOR FOLKS TO SUBMIT NAMES FOR A NOMINATING COMMISSION FOR THE NEXT CITY AUDITOR.

SO WHAT CITY CODE REQUIRES, IT'S ACTUALLY VERY MUCH SPELLED OUT FOR US IN THIS, IS FOR US AS A COUNCIL.

SO NOT THE COMMITTEE, BUT THE FULL COUNCIL TO APPOINT A NOMINATING COMMISSION OF FIVE PEOPLE WHO WILL END UP LEADING THE SEARCH PROCESS THROUGH A TYPICAL SEARCH FIRM LIKE WE'VE USED IN THE PAST, AND THEN PROVIDING RECOMMENDATIONS TO US ON POTENTIAL CANDIDATES TO INTERVIEW. THEY ARE SIMPLY A RECOMMENDING BODY.

[00:05:02]

AT SOME POINT, WE MAY NEED TO HAVE AN INTERIM CITY AUDITOR BECAUSE THE PROCESS MAY NOT BE FINISHED IN TIME.

BUT THAT'S KIND OF THE HIGH LEVEL SUMMARY OF WHAT'S GOING ON.

WE HAVE HAD SOME NOMINEES SUBMITTED. I WANT TO THANK DEPUTY MAYOR PRO TEM FOR THAT, AND I'M GOING TO TEE IT UP TO HER IN A MINUTE.

BUT BEFORE I DO THAT, DIRECTOR ARIAS, WOULD YOU LIKE TO JUST KIND OF SAY ANYTHING THAT I DIDN'T SAY? LIKE, CLOSE THE GAPS THERE? GOOD AFTERNOON. ACTUALLY NOT.

I BELIEVE YOU COVERED IT REALLY WELL. WE'RE HERE TO SUPPORT THE PROCESS AND SUPPORT THE COMMITTEE IN THIS ENDEAVOR.

WELL, THANK YOU FOR THAT. SO TO SUMMARIZE, ONCE AGAIN, WE'RE WORKING TODAY ON THE NOMINATING COMMISSION WHO WILL WORK WITH THE GROUP AT THE TABLE THERE TO FIND CANDIDATES, AND THEN THOSE CANDIDATES WILL BE PRESENTED TO US.

ULTIMATELY, THE CITY COUNCIL HAS GOT TO MAKE THAT DECISION.

AND IN THE INTERIM, WE'LL HAVE TO LOOK AT AN INTERIM CITY AUDITOR.

SO THIS PROCESS LIES WITH THIS COMMITTEE PER THE CHARTER.

AND AS I HAD ASKED FOR FOLKS TO SUBMIT NAMES, I ONCE AGAIN WANT TO THANK DEPUTY MAYOR PRO TEM FOR PROVIDING A FEW RECOMMENDED FOLKS THAT WE MAY WANT TO CONSIDER TODAY AS PART OF A STRAW VOTE.

SO I WANT TO ASK HER, IF YOU DON'T MIND STEPPING IN FOR A COUPLE OF MINUTES TO TALK ABOUT THE CANDIDATES YOU'VE PROVIDED.

SURE. AND COUNCIL MEMBER WEST HAD SENT THE MEMO THAT HE HAD REFERENCED THAT GAVE THE CRITERIA THAT WE NEED OUR CANDIDATES TO FALL IN.

AND SO I HAD SOME NOMINATIONS THAT I WANTED TO SHARE WITH YOU.

I THINK THEY'RE ALL VERY STRONG AND REPRESENT A LOT OF DIFFERENT CATEGORIES THAT WE WOULD WANT TO HAVE A WELL-ROUNDED PROCESS AS FAR AS THE SELECTION IS CONCERNED.

LEANNE SHEFFIELD ACTUALLY WORKS FOR THE US GOVERNMENT ACCOUNTABILITY OFFICE, AND SHE'S A SENIOR POLICY ANALYST, AND SHE MEETS THE CRITERIA OF BEING A REPRESENTATIVE OF THE ASSOCIATION OF GOVERNMENT ACCOUNTANTS.

YOU HAVE TO HAVE A RECOMMENDATION FROM THE BOARD OF DIRECTORS OF THE ORGANIZATION.

AND THAT IS SOMETHING WE DO NOT HAVE TODAY, BUT THAT IS IN WORK.

KEVIN MARCH IS THE FORMER CHIEF FINANCIAL OFFICER OF TEXAS INSTRUMENTS.

HONORABLE PAULINE MEDRANO, WE PROBABLY KNOW, WHO IS A FORMER COUNCIL MEMBER.

SHE SERVED FROM 2005 TO 2013, AND SHE IS CURRENTLY THE CURRENT DALLAS COUNTY TREASURER.

AND IN SPEAKING WITH HER, SHE SAID THAT SHE READ EVERY AUDIT DURING THE PERIOD SHE WAS ON THE COUNCIL AND IT WAS ONE OF HER FAVORITE THINGS TO DO.

AND THEN FINALLY MICHELLE VOPNI, WHO IS THE CURRENT MANAGING PARTNER OF EY, AND ACTUALLY SHE SERVED ON THIS COMMITTEE IN 2019 THAT YIELDED THE WONDERFUL MARK SWANN FOR US.

AND SO I THOUGHT THAT WAS A GOOD SUGGESTION BECAUSE WE WOULD HAVE SOME CONTINUITY.

THERE'S ONE OTHER PERSON I DID NOT CONFIRM TO NOMINATE WHO IS A CFO OF A $500 MILLION REVENUE PLUS COMPANY HEADQUARTERED IN DALLAS COUNTY THAT I THINK WOULD ALSO BRING STRONG PERSPECTIVE, BUT I JUST DIDN'T HAVE THAT NAME READY TO SHARE WITH YOU ALL TODAY.

BUT I BROUGHT THIS UP BECAUSE I'VE HAD PERSONAL EXPERIENCE WITH ALL BUT ONE, AND THE OTHER ONE IS THE ONE WHO HAS SERVED ON THE COMMITTEE BEFORE, AND THAT'S WHY I'M BRINGING THEM FORTH TO YOU.

YEAH. AND THE COMMISSION, JUST TO. THE CODE SAYS THE COMMISSION SHALL BE COMPOSED OF FIVE MEMBERS, INCLUDING A CHAIR AND VICE CHAIR. AND THEN THERE'S A BUNCH OF QUALIFICATIONS.

SO YOU'RE PURPORTING THAT THE QUALIFICATIONS ARE MET FOR AT LEAST FOUR OF THE FIVE POSITIONS ON THE NOMINATING COMMISSION. I MEAN, I BELIEVE YOU, BUT HAS STAFF.

HAVE YOU GUYS REVIEWED THE SUGGESTED NAMES TO VERIFY THAT? YES. UNDER CONTRACT WE CURRENTLY HAVE SENSA, WHICH IS KORN FERRY, AND WE ALSO HAVE POLLY HIRE.

YEAH. NO, I'M TALKING ABOUT THE THE NAMES THAT DEPUTY MAYOR PRO TEM HAS NOMINATED FOR THE NOMINATING COMMISSION.

OH, NO, WE HAVE NOT REVIEWED THAT. I'M SORRY.

GOING. AND THEN IF THERE'S ANY ISSUES WITH THESE FOLKS, I MEAN, WE COULD ALWAYS COME BACK.

MY GOAL IS TO HAVE THIS COMMISSION STOOD UP BY THE END OF FEBRUARY, THOUGH.

[00:10:01]

AND THANK YOU. AND JUST OUT OF CURIOSITY, NOT THAT IT MATTERS.

I KNOW IT DOESN'T CALL FOR IT, BUT HOW MANY OF THEM ARE DALLAS RESIDENTS? JUST OUT OF CURIOSITY, DO WE KNOW? GOOD QUESTION.

I BELIEVE THEY ARE ALL DALLAS RESIDENTS. I KNOW FOR SURE THREE.

I'M PRETTY SURE ALL FOUR. BUT WE COULD DEFINITELY. AND I THINK THAT, I MEAN, I KNOW WE WANT DALLAS RESIDENTS, BUT I KNOW ON SOME OF THE CRITERIA IT INCLUDES DALLAS COUNTY.

RIGHT. SO THAT IS SOMETHING THAT COULD BE VERIFIED.

YEAH. AND AGAIN, I KNOW IT'S NOT A REQUIREMENT. I WAS JUST OUT OF CURIOSITY, THAT'S ALL.

AND I GAVE THOUGHT TO DEMOGRAPHY AS WELL. PERFECT.

THANK YOU. DID SOMEBODY ELSE HAVE ANYTHING? JACK WAS JUST TELLING ME KIND OF WHAT THE PROCESS WOULD ONCE WE ESTABLISH THIS TASK FORCE.

GO AHEAD. YES, SIR. AND SO FOR THE COMMISSION TO BE APPOINTED, WE WOULD NEED THE CITY COUNCIL'S APPROVAL.

SO WHATEVER YOU PASS OUT OF COMMITTEE TODAY, WE WILL PREPARE AN AGENDA ITEM FOR LATER IN THE MONTH OF FEBRUARY FOR THAT TO THEN BE GOING FORWARD TO THE FULL CITY COUNCIL WITH THE RECOMMENDATION FROM THE FINANCE COMMITTEE.

YEAH, I THINK THAT WE NEED THE FIFTH MEMBER, THOUGH, AND WE NEED TO ALSO RECOMMEND A CHAIR AND VICE CHAIR.

SO BETWEEN NOW AND WHENEVER THAT'S READY. WHEN WOULD YOU NEED THE FINAL RECOMMENDATION? SORRY I'M GOING TO LOOK FOR A CALENDAR. SO IN ORDER FOR TO BE ON THE AGENDA FOR THE 25TH, THE ABSOLUTE FINAL POSTING DATE IS THE 19TH OF FEBRUARY. ALL RIGHT. TO BE CONSIDERED ON THE 25TH.

OKAY, SO WHAT WE MIGHT DO IS JUST A REALLY SHORT SPECIAL CALLED MEETING TO NOMINATE THE FIFTH MEMBER, ASSUMING THIS PASSES TODAY THROUGH STRAW VOTE AND THEN NOMINATE THE CHAIR AND VICE CHAIR.

OKAY. DOES THAT WORK, JACK? YES, SIR. OR YOU CAN JUST TAKE FOUR TO THE COUNCIL AND THEN BRING THE FIFTH ONE UP AT THAT TIME, IF YOU DON'T WANT TO HAVE A SPECIAL CALLED MEETING. THAT´S. WHATEVER YOUR PREFERENCE IS. ANYBODY ELSE HAVE ANY COMMENTS? ONCE WE VERIFY SOME OF THE QUESTIONS THAT HAVE BEEN ASKED, ALTHOUGH I DON'T THINK IT'S A REQUIREMENT TO BE A DALLAS RESIDENT.

I LIKE THE IDEA OF MOVING AHEAD WITH WHAT WE CAN ON THE AGENDA, BECAUSE JUST TO GET AHEAD A LITTLE BIT ON THIS.

THIS COMMITTEE OF PROFESSIONALS, WE WOULD WANT TO TAKE A LOOK AT THE JOB DESCRIPTION, WHICH DIRECTOR ARIAS BROUGHT UP A VERY IMPORTANT CHANGE THAT WOULD HAPPEN IS, IN 2019, WHEN MR. SWANN WAS HIRED, WE DIDN'T HAVE AN INSPECTOR GENERAL, AND NOW THE CITY AUDITOR HAS TO HAVE A WORKING COLLABORATION WITH THE INSPECTOR GENERAL. SO THAT WOULD BE ONE THING THAT WE MIGHT WANT TO FIND A WAY TO INCLUDE.

AND I'D ALSO LIKE TO SEE THIS COMMITTEE, WITH ALL THEIR EXPERIENCE, HELP CRAFT SOME REALLY GOOD INTERVIEW QUESTIONS TOO.

SO I WANT TO BE SURE THAT WHENEVER WE ULTIMATELY LAND ON OUR SEARCH FIRM AND THOSE CANDIDATES COME IN, THAT ALL OF THAT BACK END WORK HAS BEEN DONE.

SO I'D LIKE TO BE SURE THAT THIS COMMITTEE CAN AT LEAST CONVENE ONE TIME ON THAT WORK OF INTERVIEW QUESTIONS AND JOB DESCRIPTION SO THAT WHEN THE REST COMES IN, WE REALLY HIT THE GROUND RUNNING AND KEEP A NICE TIGHT TIME FRAME ON THIS PROCESS.

YEAH. AND JUST CONSIDER THIS AN OFFICIAL REQUEST FOR A TIMELINE FROM YOUR DEPARTMENT THAT YOU CAN LAY OUT FOR US ON EVERYTHING.

OKAY? YES. OKAY. CHAIRMAN GRACEY. YEAH. I WAS JUST TRYING TO GET A CLARIFICATION ON WHICH.

SO WE HAVE FOUR OF THE FIVE, WHICH ONE ARE WE MISSING? IS THAT THE FORMER MAYOR OR CITY COUNCIL MEMBER? DEFER TO. YOU DON'T HAVE TO HAVE ONE OF EACH, I DON'T BELIEVE.

AND IT JUST SAYS THAT THEY CAN HAVE SOME OF THE FOLLOWING QUALIFICATIONS.

SO WE DO HAVE THAT REPRESENTATION. SO WE KIND OF HAVE A CROSS SEVERAL OF THESE CRITERIA TO ROUND IT OUT NICELY.

OKAY. AND THEN THAT LAST ONE THAT I WAS SPEAKING WITH, I DON'T KNOW IF WE'LL HAVE A CONFIRMATION THAT FITS MORE IN THE HIGH END, THE $500 MILLION BUSINESS, MORE LIKE THE CORPORATE CFO.

PERFECT. ALL RIGHT. THANK YOU. AND IF FOLKS HAVE SUGGESTIONS, YOU KNOW WE DON'T HAVE TO GO THROUGH IT HERE.

BUT WE YOU KNOW, IF YOU DO LIKE, PLEASE SEND IT MY WAY AND I'LL BRING IT TO THE GROUP.

I WOULD JUST SAY I DON'T THINK WE NEED TO STRAW VOTE.

IS ANYBODY OPPOSED FOR ANY REASON FOR THE FOLKS? OKAY. SO WE'LL TEE THOSE FOUR UP AT A MINIMUM.

AND IF WE CAN IRON OUT THE CHAIR, VICE CHAIR AND THE FIFTH ONE BEFORE THEN WE'LL ADD THAT.

AND SO THESE WILL GO FORWARD TO COUNCIL AS A RECOMMENDATION FROM YOUR COMMITTEE.

THAT'S RIGHT. YOU GOT SOMETHING? SORRY, I HAVE ONE MORE QUESTION.

[00:15:02]

I DIDN'T KNOW IF IN THE PAST IF THIS WAS DETERMINED BY THE COMMITTEE MEMBERS THEMSELVES, OR IF IT'S SOMETHING THAT THIS COMMITTEE OR THE COUNCIL RECOMMENDS.

BECAUSE I THINK IT ANYWAY, I'M JUST I'M WONDERING WHAT THE POLICY IS ON THAT.

I'M LOOKING AT THE CODE RIGHT HERE. IT SAYS THE CITY COUNCIL SHALL APPOINT A NOMINATING COMMISSION.

ET CETERA, ET CETERA. THE COMMISSION SHALL BE COMPOSED OF FIVE MEMBERS, INCLUDING A CHAIR AND VICE CHAIR.

SO THE WAY I READ IT. THERE'S NO REQUIREMENT FOR US TO PROVIDE THE CHAIR, VICE CHAIR? I MEAN, WHAT I WAS THINKING IS WE SUGGEST WHO THAT IS LIKE A FULL SLATE, AND THEN COUNCIL WILL PROBABLY VOTE ON IT WITHOUT ISSUE.

I WOULD HOPE YOU KNOW, OR LET US KNOW IF THERE'S AN ISSUE BEFOREHAND.

OKAY. THANK YOU. OKAY. ALL RIGHT, SO THAT'S CLEAR AS MUD, RIGHT? WE'RE GOING GET THE FIFTH PERSON AND THEN COME BACK AND MEET AGAIN.

ALL RIGHT. SO WITH THAT BEING SAID, WE ARE FINISHED WITH THAT ITEM AND WE'RE GOING TO MOVE.

WE ARE, FOR THE FOLKS WHO CAME IN. OH, YOU WANT TO TALK ABOUT THE SEARCH FIRMS? OH. CAN YOU TOUCH ON THE SEARCH FIRMS BEFORE YOU LEAVE. THANK YOU.

YES. HOW THAT'S GOING TO WORK? YES. WE HAVE THREE OPTIONS FOR THE SEARCH FIRMS. THE FIRST OPTION IS TO UTILIZE ONE OF THE FIRMS UNDER CONTRACT.

CURRENTLY WE HAVE TWO THAT ARE SUITABLE FOR THIS SEARCH.

ONE IS KORN FERRY SENSA AND THE OTHER ONE IS POLIHIRE.

POLIHIRE HAS LESS EXPERIENCE BUT MORE RELATED TO GOVERNMENT THAN KORN FERRY.

KORN FERRY HAS SUBSTANTIAL EXPERIENCE WITH THIS TYPE OF ROLES, BUT THEIR EXPERIENCE IS MORE BROAD, I WOULD SAY JUST NOT ONLY GOVERNMENT BUT ALSO GENERAL INDUSTRY.

SO THOSE TWO FIRMS ARE UNDER CONTRACT AND READY TO GO.

IF IF YOU DECIDE TO GO IN THAT DIRECTION, YOU WILL NEED TO LISTEN TO THEM, INTERVIEW THEM, SELECT ONE, AND THEN WE CAN GO AHEAD AND START.

THE SECOND OPTION THAT YOU HAVE IS TO PICK ONE FROM OUR COLLABORATIVE, FOR, FROM OUR, FROM THE LIST THAT WE BROUGHT TO COUNCIL BEFORE THAT, YOU KNOW, WE CAN ENTER INTO THROUGH A COOPERATIVE AGREEMENT.

THAT LIST IS, YOU KNOW, THE SAME BASICALLY THAT WAS PRESENTED FOR THE INSPECTOR GENERAL POSITION.

AND SO IF YOU SELECT ONE OF THOSE, IT'S A LITTLE BIT LONGER IN TERMS THAT WE NEED TO FINALIZE A CONTRACT.

HOWEVER IT WILL BE 2 TO 3 WEEKS MAXIMUM. THE THIRD OPTION THAT YOU HAVE IS TO GO TO MARKET AND JUST TO FIND WHICH FIRMS WILL BE INTERESTED IN THIS SEARCH IN GENERAL. AND SO THAT WILL BE ONE ADDITIONAL WEEK, BUT THEN YOU WILL HAVE LARGER POOL OF FIRMS TO PICK FROM. SO THOSE ARE THE THREE OPTIONS THAT ARE AVAILABLE.

QUESTIONS? SO ONE QUESTION THAT I THINK I WOULD LIKE TO HEAR ABOUT FROM MY COLLEAGUES, BECAUSE I DON'T KNOW WHAT MY OTHER COLLEAGUES OUTSIDE OF THIS COMMITTEE MIGHT THINK, IS WHETHER WE WOULD WANT OUR THE COMMISSION TO INTERVIEW THESE FIRMS OR WHETHER WE WOULD WANT THIS COMMITTEE TO INTERVIEW THESE FIRMS, KIND OF LIKE ON AND WE'VE GOT THE AD HOC ADMIN, AD HOC CHAIR HERE. BECAUSE I THINK THAT THERE ARE COUNCIL MEMBERS WHO WOULD WANT TO BE SPEAKING TO THESE SEARCH FIRMS. ON THE OTHER HAND, WE'VE GOT EXECUTIVE LEVEL MINDS THAT COULD ALSO DO THIS.

SO I'M, YOU KNOW, IT SEEMS LIKE THIS IS AN INTERESTING SITUATION TO BE IN, AND I DON'T WANT TO LET IT GO UNDISCUSSED.

CAN WE GET A CITY ATTORNEY TO WEIGH IN ON WHETHER IT'S, IF IT'S FLEXIBLE FOR US, IF WE CAN LOOK FOR THE SEARCH FIRM OR IF IT NEEDS TO BE DONE THROUGH THE COMMISSION. HUGE. YEAH. WILLOW SANCHEZ FROM THE CITY ATTORNEY'S OFFICE, AND I CAN GET BACK TO YOU WITH A CLEAR ANSWER ON THAT.

IN REVIEWING THE CODE RIGHT HERE, IT DOESN'T MAKE IT CLEAR THAT THE NOMINATING COMMISSION'S DUTIES INCLUDE OVERSEEING A SELECTION OF A STAFFING FIRM. BUT I WOULD LIKE TO GET BACK TO YOU WITH A MORE DIRECT ANSWER.

NOW, THIS IS ALL IN THE CITY CODE, THOUGH. AND THIS IS FROM THE CITY CODE, RIGHT? DALLAS CITY CODE 2-17.2. YES, THAT'S WHAT I'M REVIEWING.

OKAY. YEAH, IT'S, THE WAY I READ IT TOO. I MEAN, PUT ON MY LAWYER HAT FOR A MINUTE.

[00:20:05]

DO YOU, DO WE WANT TO TALK? DO YOU GUYS HAVE AN OPINION? GO FOR IT. YEAH. SO, THIS COMMISSION WE JUST VOTED ON AND BRING FORWARD THEIR RESPONSIBILITY IS TO DO WHAT? PER THE CODE, IT'S TO FACILITATE THE SELECTION PROCESS.

OF THE CANDIDATES. OF THE CANDIDATES AND THEN TO RECOMMEND ONE OR MORE CANDIDATES TO US.

AND IF THAT'S WHAT THEY'RE DOING, THEN WHAT EXACTLY WOULD THE SEARCH FIRM BE DOING? THEY GO FIND THE CANDIDATES AND BRING IT TO THEM. OKAY.

JUST LIKE THEY DO FOR US NORMALLY. OKAY. SO THEN AS WE'RE TALKING ABOUT THE IMPORTANCE OF THE SEARCH FIRM, IS IT THAT. AND AGAIN, I'M NOT TRYING TO MINIMIZE IT, BUT IS IT THAT AS IMPORTANT IF THEY'RE ONLY RESPONSIBILITY IS TO GO GET A GROUP OF CANDIDATES. AND THEN THIS TASK FORCE IS THE ONE THAT'S GOING TO NARROW THAT SEARCH DOWN.

SO GIVEN THE OPTIONS THAT NINA WAS TALKING ABOUT FROM A PROCUREMENT, WE COULD ACTUALLY GO THROUGH THE PROCESS AND DO AN OPEN PROCUREMENT AND DO THAT. AND WE CAN TAKE THAT TIME IF NECESSARY, BUT THE VALUE FOR THIS SEARCH FIRM IS NOT GOING TO BE AS IMPORTANT TO ME AS WHAT THE TASK FORCE WILL BE DOING. SO THAT'S WHAT I'M TRYING TO GET THE CLARITY ON WHICH ONE.

AND DO WE NEED TO SPEND THAT MUCH MONEY ON A NEW FIRM, ESPECIALLY IF WE ALREADY HAVE A MASTER AGREEMENT AND WE HAVE A CO-OP AVAILABLE, WHICH ARE TWO VERY QUICK WAYS, THAT OF LIST, OF THESE FIRMS THAT ARE PROBABLY GOING TO RESPOND ANYWAY.

I BELIEVE THEY'RE PROBABLY ALREADY IN THE CO-OP AND MORE THAN LIKELY ALREADY ON A SEARCH ON A SHORT LIST.

SO FROM A PROCUREMENT PERSPECTIVE AND TIME PERSPECTIVE, WE CAN SELECT A FIRM AND THEN ALLOW THE TASK FORCE TO DO ITS JOB IS MY OPINION.

I KNOW I SAID A LOT, BUT. NO, THAT'S HELPFUL.

DID VICE CHAIR, DID YOU HAVE SOMETHING? JUST A BRIEF COMMENT.

WE HAVE A LOT OF DETAIL ABOUT WHO MAKES THIS OR WHO NARROWS DOWN THE SELECTION.

AND I HAVEN'T COME ACROSS THIS IN ANYTHING ELSE IN THE CITY WHERE WE HAVE SAID HOW MANY PEOPLE WILL BE ON THE COMMITTEE, WE'VE SAID WHAT THEIR BACKGROUNDS HAVE TO BE.

WE HAVE SOMEONE WHO SPECIFICALLY HAS TO HAVE THIS ASSOCIATION OF AMERICAN GOVERNMENT ACCOUNTANTS OR OTHER ORGANIZATIONAL REPRESENTATION.

SO SOMEBODY HAS PUT A LOT OF THOUGHT INTO WHO MAKES THIS DECISION.

AND I UNDERSTAND THAT BECAUSE IT'S A JOB WITH A LOT OF TECHNICAL UNDERSTANDING AND KNOWLEDGE, SO I GET THAT. BUT WE DON'T DO THAT FOR OUR CITY MANAGER OR A LOT.

I MEAN, IT'S JUST, IT'S PRETTY EXTRAORDINARY.

SO I'M LEANING TOWARDS THE WISDOM OF THIS SYSTEM IS TO LEAN ON THIS GROUP, RIGHT? IS TO LET THIS GROUP DO THIS JOB, BECAUSE WE ARE ASKING SOME PROFESSIONALS TO VOLUNTEER THEIR TIME TO HELP FILL AT THIS POSITION.

AND MY ASSUMPTION IS THEY'VE GOT WHAT IT TAKES TO MAKE THIS DECISION, OR TO AT LEAST NARROW IT FOR US AND TO GIVE US SOME VERY HELPFUL INFORMATION.

SO I DON'T KNOW THAT I'M MAKING ANY CLARIFICATION ON THIS, BUT I THINK WE, THERE'S A REASON THIS HAS BEEN SET UP THIS WAY.

AND I THINK WE SHOULD RESPECT THAT REASON, BECAUSE ACTUALLY, I'D LIKE TO SEE US DO THIS A LITTLE, A LITTLE MORE OFTEN IN SOME OF OUR CHOICES IS TO HAVE THIS PROFESSIONAL GROUP WITH THIS BACKGROUND HELP US AND GUIDE US AS WE MAKE SOME OF OUR OTHER DECISIONS. SO ANYWAY. SO I'M GOING TO PUT DEPUTY MAYOR PRO TEM QUESTION WAS, THE SUMMARY OF IT WAS IT'S DO WE MAKE THE DECISION AS A RECOMMENDED COUNCIL ON WHO THE WHO WE'RE GOING TO HIRE FOR THE SEARCH PROCESS, OR DO WE DEFER THAT TO THE NOMINATING COMMISSION? AND I'M HEARING YOU SAY DEFER THAT TO THE NOMINATING COMMISSION. I SAY DEFER IT TO THE NOMINATING COMMISSION. I THINK THEY'LL KNOW WHICH SEARCH FIRMS PROBABLY HAVE THE BEST POOL OF CANDIDATES, MORE SO THAN WE WOULD KNOW. SO I'M GOING TO PUT YOU DOWN AS A VOTE FOR THAT ONE.

ERIN, DID YOU HAVE AN OPINION ON THAT? SO AGAIN THIS IS THE SEARCH FIRM.

DO WE PICK THE SEARCH FIRM OR DO WE DELEGATE THAT TO THE NOMINATING COMMISSION? IF WE DELEGATE IT, ARE THEY STILL SUBJECT TO THE SAME PROCUREMENT PROCESS? AND IF THEY ARE, THEN I DON'T KNOW THAT THAT WOULD BE A NECESSARY MOVE TO DELEGATE IT TO THEM WHEN THE CITY HAS TO MANAGE THAT PROCESS IN THE FIRST PLACE.

SO IF YOU DELEGATE THAT TO THE COMMITTEE, THEN WE WOULD STILL EITHER, DEPENDING UPON THE COST, WE WOULD EITHER BRING IT BACK TO THE CITY COUNCIL FOR APPROVAL OF THE CONTRACT, OR IF Y'ALL COMPLETELY DELEGATE IT TO THAT GROUP, THEN THE CITY MANAGER UNDER AN AA COULD INITIATE THE CONTRACT.

BUT THAT COMMITTEE WILL NOT HAVE THE AUTHORITY TO CONTRACT ON YOUR BEHALF.

[00:25:01]

SO WE CAN GO WHICHEVER WAY YOU WANT. KIM WOULD PROBABLY PREFER ON SOMETHING LIKE THIS THAT Y'ALL APPROVE THE CONTRACT, I WOULD, I WOULD GUESS. SO THEY WOULD JUST BE VETTING OUT.

THEY WOULD VET. IT'S STILL GOING TO HAVE TO COME TO THE COUNCIL THEREFORE FOR AN APPROVAL OF A CONTRACT.

OKAY. AND I GUESS WHAT I'M TRYING TO GET TO IS AND I DON'T KNOW IF WE'RE LOOKING AT FROM A TIME FRAME PERSPECTIVE, BUT AGAIN, DELEGATING TO THAT GROUP, WHICH I COMPLETELY UNDERSTAND WHAT YOU'RE SAYING. BUT DOES THAT THEN THEY GO THROUGH THIS PROCESS OF TRYING TO FIGURE OUT THE BEST PROCESS BY WHICH TO IDENTIFY THIS FIRM, WHICH MEANS THEY'RE GOING TO GO THROUGH A WHOLE PROCUREMENT PROCESS AND ALL OF THAT, WHICH IS GOING TO NET THE SAME COMPANIES THAT ARE ALREADY SHORT LISTED, EITHER THROUGH A CO-OP OR THROUGH THE MASTER AGREEMENT.

THAT'S ALL I'M SAYING. I THINK THAT STEP MAY BE UNNECESSARY TO DELEGATE TO THAT COMMITTEE WHEN THEY HAVE OTHER RESPONSIBILITIES, AND THAT COULD BE SOMETHING THAT TURNS INTO A THREE WEEK DISCUSSION FOR NO REASON, WHEN WE ALREADY HAVE THE TOOLS TO MOVE IT FORWARD.

THAT'S ALL I'M SAYING. OKAY, SO I GUESS I'M SAYING WE CAN DO IT.

OKAY. YOU'RE GOING TO YOU'RE KEEP IT. KEEP IT AT COUNCIL.

OKAY. MAYOR PRO TEM. THANK YOU, CHAIR. I'M LEANING TOWARDS A CO-OP AND HAVING COUNCIL MAKE THAT DECISION.

I DO HAVE A QUESTION ON THE COMMITTEE. THAT'S.

THAT THE SELECTION COMMITTEE. ARE THEY GOING TO GET GUIDANCE AND FEEDBACK FROM COUNCIL TO BUILD OUT THE BROCHURE ON WHAT QUALIFICATIONS? WHAT ARE WE AS COUNCIL MEMBERS LOOKING FOR IN THE NEXT AUDITOR? WHERE ARE WE SOLELY LEAVING THOSE DECISIONS UP TO THE COMMITTEE? I MEAN. SO THAT'S. UP TO US. YEAH, I WOULD SAY YES, THAT THE COMMITTEE WILL HAVE THE OPPORTUNITY TO EITHER REACH OUT TO THE COUNCIL FOR FEEDBACK, TO REACH OUT TO STAFF, TO MARK, TO GET FEEDBACK IN DEVELOPING THE BROCHURES, ETCETERA.

SO YOU'RE ASKING THEM TO DO THE WORK, BUT NOT TO CUT YOU OUT OF THE PROCESS TO VET YOUR FEEDBACK AND WORK WITH THAT.

MAYOR PRO TEM, WE CAN SET THEM FOR THE AGENDA ANYTIME TO HAVE THE CHAIR COME AND JUST ANSWER QUESTIONS AND PROVIDE MEMO UPDATES, YOU KNOW, WITH NINA'S HELP. SO, YEAH. DO YOU HAVE A PREFERENCE ON DEFERRING THE SEARCH FIRM TO THE NOMINATING COMMISSION OR US HANDLING THE SEARCH FIRM INTERVIEWS AND ALL THAT STUFF? TO MAKE IT EASIER? I THINK JUST KEEP IT WITH US.

KEEP IT WITH US. OKAY. ALL RIGHT. DID YOU WANT TO WEIGH IN, DEPUTY MAYOR? YEAH, I WANTED TO HEAR THE DISCUSSION, SO I'M GLAD WE HAD THE DISCUSSION.

PERSONALLY, I THINK WE ONLY HAVE 6 COUNCIL APPOINTED EMPLOYEES.

AND SO THIS SHOULD RESIDE WITH US TO INTERVIEW THOSE FIRMS. THESE ARE VOLUNTEERS, AFTER ALL. AND SO WHILE WE APPRECIATE THEIR EXPERTISE AND MAY WANT TO ASK THEM AT WHERE WE NET OUT WHAT THEIR THOUGHTS ARE OR EXPERIENCES WITH THESE PARTICULAR FIRMS AND EVEN ALLOW, IF WE ARE ABLE TO HAVE THEM BE PART OF THE INTERVIEW.

THAT WOULD BE SOMETHING I WOULD WELCOME, BUT I THINK IT NEEDS TO LIVE WITH US.

TO GO ON THE BROCHURE ADVICE, I DON'T THINK, YOU KNOW, CUTTING PEOPLE OUT WORKS SO WELL IN OUR FAVOR.

SO I DO THINK THAT WE NEED TO HEAR FROM THEM ON THE JOB DESCRIPTOR.

BUT, YOU KNOW, THEY'RE NOT AS EXPERT AS THEY ARE.

THEY AREN'T GOING TO KNOW THE INS AND OUTS OF THE INSPECTOR GENERAL ASPECT OF THIS, EXCEPT FOR MAYBE OUR US GOVERNMENT ACCOUNTABILITY OFFICE PERSON.

BUT, SO I THINK THAT THERE'S GETTING THAT INFORMATION FROM THEM.

AND USUALLY THE FIRM CRAFTS IT, I BELIEVE PUTS IT ALL TOGETHER, AND THEN ULTIMATELY WE COULD REVIEW AND APPROVE.

BUT HONESTLY, WHEN YOU TALK ABOUT THE LIST THAT YOU'VE GOT, THERE'S THE LONG LIST OF THOSE THAT HAVE AN INTERLOCAL AGREEMENT OR WE'VE GOT THESE OTHER TWO THAT ARE ALREADY UNDER CONTRACT THAT MAY NOT HAVE HIRED FOR THIS ROLE IN AS BIG OF A MARKET, BUT DO WORK IN THE FINANCIAL SPACE AND IN THE GOVERNMENT SPACE.

I WOULD AT THIS POINT EVEN BE WILLING TO SAY, WHY DON'T WE FOCUS IN ON THOSE TWO AND INTERVIEW THOSE TWO VERSUS HAVING TO CULL THIS LONG LIST THAT YOU'VE SAID MAY NOT NECESSARILY HAVE SOME OF THESE QUALIFICATIONS.

SO I THINK IN THIS CASE, WE'VE GOT A COUPLE OF REPUTABLE CONTRACTED PARTNERS, AND IF WE CAN REDUCE SOME COMPLICATION, I WOULD BE FINE WITH JUST SAYING LET'S MOVE TOWARD INTERVIEWING THOSE TWO.

OKAY. OKAY, THANK YOU. I'M GOING TO ASK CHAIRMAN JOHNSON IF HE'S GOT AN OPINION ON DEFERRING THE SEARCH FIRM OR KEEPING IT AT COUNCIL.

MY THOUGHTS AND I DON'T REALLY CARE THAT MUCH.

SO I COULD GO EITHER WAY ON THIS, BUT I GENERALLY AGREE WITH MY VICE CHAIR THAT THESE ARE A GROUP OF PROFESSIONALS WHO ARE TRAINED IN THIS INDUSTRY.

I THINK THEY COULD PROVIDE PRETTY STRONG GUIDANCE FOR THE SEARCH FIRM.

[00:30:02]

SO I THINK THE COMMITTEE WOULD BE FINE. THEY'RE PROFESSIONALS AND IT'S GOING TO HELP ELIMINATE, I WAS LISTENING TO DEPUTY MAYOR PRO TEM ELIMINATE SOME OF THE PROCESSES FOR US. SO I WOULD SUGGEST JUST STAYING WITH THE COMMITTEE AND MOVING FORWARD.

YEP. OKAY. YOU MEAN STAND WITH COUNCIL OR? THE COMMITTEE.

WITH THE COMMITTEE? YEP. WELL, WE'VE GOT 3 TO 3 ON THAT, AND WE GOT SOMEBODY ABSENT, SO I'LL FLIP MY VOTE.

AND THAT WAY WE CAN RESOLVE THIS. AND SO WE'LL KEEP THE SEARCH FIRM AT COUNCIL LEVEL.

AND WE'LL JUST BE BRINGING THAT TO US. SO WE'LL BE AND THEN WE'LL MAKE THE SUGGESTION TO, TO CITY COUNCIL.

SO WE'RE GOING TO DO THAT VERY QUICKLY BEFORE THE END OF THE MONTH IDEALLY OR WITHIN A MONTH.

SO, CHAIRMAN, I'D LIKE TO JUST MAKE SURE THAT WE'RE, WE UNDERSTAND THE DIRECTION FROM THE COMMITTEE. SO WE WILL BE PREPARING AN AGENDA ITEM FOR FEBRUARY 25TH APPOINTING FOR PEOPLE THAT HAVE BEEN IDENTIFIED THUS FAR FOR THE COMMITTEE.

YEAH. AND BEFORE THE 25TH, Y'ALL WILL WORK TO POTENTIALLY IDENTIFY A FIFTH MEMBER THAT THIS COMMITTEE CAN RECOMMEND TO FULL COUNCIL.

AND THE CHAIR AND VICE CHAIR. AND A CHAIR AND VICE CHAIR.

CORRECT. YOU HAD REQUESTED A TIMELINE, WHICH WE'LL WORK ON.

AND THEN THREE, REGARDING THE SEARCH FIRM, THE FINANCE COMMITTEE WILL BE THE ONES TO INTERVIEW AND THEN MAKE A RECOMMENDATION TO FULL COUNCIL ON THE SEARCH FIRM FROM THE TWO THAT HAVE BEEN IDENTIFIED. DID I HEAR THAT WE'VE.

THE TWO SEARCH FIRMS THAT ARE ALREADY IN OUR PROCUREMENT SYSTEM IS, MR. GRACEY WAS TALKING ABOUT. YEAH. OKAY. SO WE'LL, SO HOW DOES THAT, REMIND ME HOW THAT NORMALLY HAPPENS, THEY COME UP HERE AND WE TALK TO THEM, OR IS IT IN EXECUTIVE SESSION? IT'S AN OPEN SESSION. SO THEY WILL COME AND HAVE A PRESENTATION FIVE MINUTES AND THEN ANSWER YOUR QUESTIONS ABOUT THEIR METHODOLOGY, THEIR TIMELINE, HOW THEY WILL GO ABOUT CONDUCTING THE SEARCH, AND BASED ON THAT INFORMATION, YOU CAN MAKE YOUR SELECTION. ARE YOU GUYS, SO, AND THEN WE WOULD MAKE THAT RECOMMENDATION TO FULL COUNCIL? SO WE WOULD PICK THE WINNER OR SUGGESTED WINNER AND THEN MAKE THAT RECOMMENDATION TO FULL COUNCIL ALONG.

COULD WE DO THAT BEFORE THE AGENDA MEETING AT THE END OF THE MONTH? YES. WE WOULD HAVE TO HAVE A SPECIAL CALLED FINANCE COMMITTEE MEETING TO DO THAT, AND WE WOULD HAVE TO HAVE THAT ALL WRAPPED UP.

I BELIEVE I SAID THE 19TH WAS KIND OF OUR DEADLINE FOR GETTING THINGS POSTED FOR THE 25TH.

ALL RIGHT. WELL, WE'LL WORK ON THE DATE FOR THAT. THEN WE'RE GOING TO BE FINANCE CAN BE BUSY THIS MONTH. ANY OTHER QUESTIONS? COMMITTEE MEMBERS I KNOW THIS IS A LOT ON THIS ITEM, BUT IT'S VERY IMPORTANT.

THANK YOU. OKAY. NOW WE ARE MOVING ON TO THE.

THANK YOU. AND THEN WE'LL DEAL WITH THE INTERIM LATER, WE'VE GOT TIME FOR THAT.

AND WE WILL. AND NEXT MONTH I WANT TO DEAL WITH THE INTERIM AUDITOR AND JUST SORT OF HOW THAT PROCESS WILL WORK.

OKAY, SO AS I MENTIONED, WE'RE GOING TO COME BACK TO ITEM C, AND AT THIS POINT I WANT TO MOVE ON TO ITEM D, WHICH IS WAS KICKED TO US FROM COUNCIL. IT'S THE AUTHORIZE THE DALLAS PFC TO ACQUIRE, DEVELOP AND OWN GOOD HOMES DALLAS AND MIXED-INCOME, MULTIFAMILY DEVELOPMENT. IT'S A LONG, A LOT MORE ON THERE, BUT YOU CAN LOOK AT ITEM D AND SEE WHAT I'M TALKING ABOUT.

I'M GOING TO INVITE AARON EAQUINTO TO COME DOWN.

WE'VE GOT THOR COMING DOWN HERE AS WELL TO TALK ABOUT THIS ITEM.

TAKE IT AWAY. CHAIR, COMMITTEE MEMBERS, THOR ERICKSON, DIRECTOR OF HOUSING AND COMMUNITY EMPOWERMENT.

WE PLACE THIS ITEM PER YOUR RECOMMENDATION ON FINANCE COMMITTEE TODAY.

SINCE THE CITY COUNCIL MEETING MYSELF AND STAFF HAVE MET WITH THE DEVELOPER, ALONG WITH AARON EAQUINTO.

AND SOME CHANGES TO THE UNIT MIX HAVE BEEN PROPOSED BASED UPON FEEDBACK RECEIVED AT THAT CITY COUNCIL MEETING.

THE UPDATED PROPOSED ONE BEDROOM, TWO BEDROOM ARE PRESENTED ON THE THIRD PAGE OF THE MEMO.

THE CHANGES, SORRY WE DIDN'T DO A COMPARISON CHART FOR YOU WITH SUCH SHORT NOTICE.

THE MAIN CHANGES ARE THAT THE 50 AND 80% UNITS HAD BEEN REMOVED AND TURNED INTO MARKET RATE TO SHOW THAT THIS IS MORE OF A 49% MARKET RATE DEVELOPMENT, RATHER THAN THE ORIGINALLY PROPOSED 15% MARKET RATE.

THERE ARE MINOR DIFFERENCES IN THE COST PER UNIT ASSUMPTIONS ON THE INITIAL RENTS.

ESSENTIALLY, THIS PROJECT WENT FROM 16 MARKET RATE ONE-BEDROOM TO 53 ONE-BEDROOM.

AND 5 TWO-BEDROOM MARKET RATE TO 17 TWO-BEDROOM MARKET RATE.

ONE OTHER NOTE OF CHANGE WAS THAT THE TWO-BEDROOMS, RESERVED AT 60% OF AMI WENT FROM 15 UNITS TO 16, SHOWING THAT THIS PROJECT WOULD NOW ADDRESS THE CONCERN OF HAVING MORE UNITS RESTRICTED AT LOWER AMIS,

[00:35:06]

ADDRESSING SOME OF THE CONCERNS FOR YOUR CONSIDERATION AND DISCUSSION TODAY. THANK YOU SIR.

OKAY. AARON, DID YOU WANT TO SAY ANYTHING ABOUT THIS MATTER? THANK YOU. AARON EAQUINTO, GENERAL MANAGER OF THE DALLAS PUBLIC FACILITY CORPORATION.

THANK YOU, CHAIRMAN WEST. I THINK THOR PRETTY MUCH SUMMED UP WHAT WE'VE BEEN WORKING ON OVER THE LAST SEVERAL DAYS.

OBVIOUSLY, THERE'S BEEN A LOT OF DISCUSSION, AND WE'RE VERY OPEN TO TRYING TO MOLD THIS PROJECT INTO ONE THAT IS ACCEPTABLE TO ALL OF YOU ON COUNCIL. AND SO THIS LATEST PROPOSAL HOPEFULLY GETS CLOSER TO TO THAT GOAL.

OKAY. COLLEAGUES, DOES ANYBODY WANT TO KICK THIS OFF? I KNOW THIS IS IN MAYOR PRO TEM DISTRICT, SO TAKE IT AWAY.

THANK YOU. AND AARON AND THOR, THANK YOU ALL FOR WORKING WITH ME AND THE RESIDENTS.

SO THIS MEMO, WHEN WAS THIS MEMO RELEASED? I BELIEVE THIS MEMO WAS POSTED ON FRIDAY AFTERNOON WITH THE PACKET.

OKAY. I DIDN'T SEE IT ON FRIDAY. THAT'S WHY I'M BRINGING IT UP.

BECAUSE WHEN I HAD MY AGENDA PRINTED OUT FOR THE WEEKEND UNLESS IT CAME OUT, YOU KNOW, LATER ON FRIDAY.

I'M NOT SAYING IT WASN'T, BUT I DID NOT SEE IT THIS FRIDAY.

BECAUSE IT'S ALSO, I MEAN, IT'S DATED FEBRUARY THE 3RD.

YEAH. IT'S MY UNDERSTANDING THAT THE DATE OF THE MEMO MAY NOT HAVE BEEN UPDATED APPROPRIATELY, BUT THE MEMO WAS UPDATED ON FRIDAY AND THEN POSTED TO THE, BECAUSE THE AGENDA HAD ALREADY BEEN POSTED.

AND SO ORIGINALLY POSTED WITH THE TITLE OF THE UPCOMING AGENDA ITEM, AND THEN THE MEMO ITSELF, I BELIEVE WAS POSTED LATE FRIDAY, BUT I'LL HAVE STAFF LOOK INTO MAYBE THE TIMING OF THAT AS THEY'RE NODDING THEIR HEAD AND ASKING FOR TECHNICAL CLARIFICATION.

OKAY, THANK YOU. ON PAGE TWO OF THE MEMO, IT STATES THE PROJECT IS ZONED FOR MULTIFAMILY DEVELOPMENT WITHOUT ANY OPPOSITION. CAN YOU HELP ME UNDERSTAND WHAT THAT MEANS? PAGE TWO. THE ZONING SHOWS THAT THERE WAS, DID THIS ONE RECEIVE A ZONING CHANGE? NO. THIS IS AN EXISTING PROJECT. WITHIN AN EXISTING ZONING DISTRICT THAT ALLOWS MULTIFAMILY, SO THERE WAS NO ZONING CHANGE CONSIDERATION FOR THIS PROJECT.

RIGHT, JUST THE WAY IT STATED WITHOUT OPPOSITION MAKES IT APPEAR THAT THIS WENT OUT FOR ZONING CHANGE AND THAT THERE WAS NO OPPOSITION FROM THE COMMUNITY, BUT THERE WAS NEVER AN ACTION ON ZONING. I THINK THAT SENTENCE IN THERE KEEPS IT OPEN TO SUBJECTIVE THAT THERE WAS A ZONING REQUEST OR A ZONING ITEM. YES, SIR, I UNDERSTAND.

OKAY. IT TALKS ABOUT A PARTNERSHIP WITH THE OFFICE OF EMERGENCY MANAGEMENT AND CRISIS RESPONSE.

I KNOW THAT THERE WAS A LOT OF DISCUSSION THAT THIS HOTEL WAS RUNDOWN, THAT IT WAS CRIME RIDDEN.

AND I WAS ABLE TO PROVIDE THE DPD FACT SHEET THAT THERE WAS I BELIEVE, 12 TO 15 CALLS YEAR TO DATE.

DID THE OFFICE OF EMERGENCY MANAGEMENT PROVIDE ANY DATA ON IF THAT WAS WITHIN, IN LINE WITH A PROPERTY THAT IS A HABITUAL PROPERTY OR A NUISANCE PROPERTY? THANK YOU.

I CAN'T SPEAK TO THE CLARIFICATION ON HOW THOSE PROPERTIES WOULD BE DEEMED IN THAT CATEGORY.

HOWEVER, I CAN SAY THE DATA THAT YOU PROVIDED IS CONSISTENT WITH WHAT THEY PULLED.

THERE WERE CALLS THROUGHOUT THE YEAR WHETHER OR NOT IT'S DEEMED NUISANCE WOULD HAVE TO BE DIRECTED AT CODE, WHICH I DON'T BELIEVE ARE HERE RIGHT NOW. THERE DOES APPEAR TO BE CRIMINAL ACTIVITY IN THE CENSUS TRACT, BUT NOT NECESSARILY CALLS ON THIS PROPERTY PER SE.

HOWEVER, THERE, LIKE ANY PROPERTY, THERE HAVE BEEN A SERIES OF INCIDENCES AND SOME CALLS MIGHT BE IN CLOSE PROXIMITY, BUT THEY MIGHT NOT TAG THE EXACT ADDRESS, FOR INSTANCE, WITHIN THAT AREA THAT ARE KNOWN INSTANCES, BUT THE ACTUAL CALL WAS JUST NOT TAGGED TO THAT PROPERTY.

SO 15 CALLS, 12 TO 15 CALLS. HOW MANY UNITS? HOW MANY UNITS ARE HERE? THERE'S 142 UNITS. AND THE DATA THAT WAS PROVIDED FROM THE NORTHWEST POLICE DEPARTMENT HERE.

DANIEL MARTIN WITH GOOD HOMES AND DEVELOPER. THEY PRESENTED 43 CALLS IN 2024 AND 48 CALLS IN 2025.

[00:40:02]

AARON, WHAT WAS THE FEEDBACK FROM THE HOSPITALS? I THINK GENERALLY, AND DANIEL HAD THOSE DISCUSSIONS PERSONALLY, BUT FROM WHAT HE TOLD ME, THEY WERE VERY POSITIVE BECAUSE THE HOUSING PROFILE THAT WE ARE PRESENTING HERE FOR THIS PARTICULAR PROJECT MATCHES UP WELL WITH WHAT THEIR GOALS ARE FOR STAFFING IN THOSE PARTICULAR DISTRICTS.

DANIEL, WOULD YOU ADD ANYTHING ELSE TO THAT? NO, I THINK THAT'S SPOT ON.

WE HAD UT SOUTHWESTERN'S REAL ESTATE TEAM COMING TOWARD THE PROPERTY AT OUR OPEN HOUSE EVENT.

THEY WERE VERY EXCITED ABOUT IT. THEY STRESSED THERE'S NOT ENOUGH HOUSING OPTIONS NEARBY FOR THEIR FACULTY AND STAFF AND STUDENTS TO LIVE AT.

SO THEY THOUGHT THAT THIS WOULD BE A GREAT PROJECT TO HOUSE, YOU KNOW, FACULTY, STAFF.

I HAD AN OPPORTUNITY TO MEET WITH UT SOUTH OR THE MEDICAL DISTRICT THIS MORNING.

AND IT SOUNDS LIKE THEY STILL HAVE THEY STILL HAD SOME CONCERNS.

THEY WANTED TO KNOW WHAT THE COMMUNITY WAS THINKING, THAT THEY HAVE A VERY TIGHT KNIT RELATIONSHIP WITH ARLINGTON PARK IS THAT IT BACKS UP TO THEIR, TO THE HOSPITAL AND TO THE NEIGHBORHOOD.

AND AGAIN, JUST FOR CLARITY AND CHAIR, FEEL FREE TO GO TO SOMEONE ON ROUND TWO IF I AM PROLONGING, PLEASE. ON THE WEST NEIGHBORHOOD ASSOCIATION HOW FAR IS THE NEIGHBORHOOD FROM THIS SELECTION? AND IS, HAVE WE RECEIVED, REALLY WHAT I'M LOOKING FOR IS THAT SUPPORT LETTER FROM ARLINGTON PARK.

AND SO I JUST WANT TO SEE IF THERE'S BEEN ANY SUCCESS IN OBTAINING THAT FROM THE ACTUAL COMMUNITY, AS OPPOSED TO A COMMUNITY THAT ISN'T GOING TO DIRECTLY BE IMPACTED BY THIS TRANSACTION? I KNOW THAT THEY ARE IN CONTINUAL TALKS WITH THIS COMMUNITY, BUT AS TO DATE, I DON'T THINK THEY HAVE AN OFFICIAL SUPPORT LETTER, ALTHOUGH THEY ARE STILL TRYING TO GET THAT FROM THAT ASSOCIATION.

OKAY. THANK YOU FOR THE UNIT MAKES IT. I THINK WE'RE INCHING CLOSER.

HELP ME UNDERSTAND HOW THE DEVELOPER WAS ABLE TO ADJUST THE AMIS WITHOUT CHANGING THE INVESTMENT THAT'S GOING INTO THE PROPERTY.

AND DID THE RENTS CHANGE OR THE RENT STILL THE SAME AS BEING PROPOSED ORIGINALLY? SO IN A IN A RESPONSE TO, YOU KNOW, THE FEEDBACK THAT WE RECEIVED CONCERNING THE AMIS OF THIS PROPERTY, WE TRIED TO INCORPORATE A LARGER NUMBER OF MARKET RATE UNITS.

YOU KNOW, IT HAS BEEN PRESENTED THAT THIS PARTICULAR CENSUS TRACT IS ON THE HIGHER SIDE OF THE POVERTY RATE.

AND SO THE FEEDBACK THAT WE RECEIVED SAID THAT, YOU KNOW, A LARGER BASE OF MARKET RATE RESIDENTS IN THIS AREA WILL PROBABLY STABILIZE THE AREA AND BRING A LITTLE BIT MORE SOLID ECONOMIC STRENGTH TO THIS PARTICULAR NEIGHBORHOOD.

AND SO WHAT I'M TRYING TO GET AT IS, HOW WAS THE MATH ABLE TO WORK OUT ADJUSTING THE AMIS? YEAH, WE ADDED MORE MARKET RATE UNITS. SO THAT ACTUALLY HELPS THE PROJECT BECAUSE YOU'RE CHARGING MORE RENT.

AND SO, YOU KNOW, IT'S AN UNUSUAL REQUEST USUALLY.

AND THIS IS A VERY UNIQUE SITUATION, BUT WE'RE USUALLY TRYING TO GET AS DEEP AS WE CAN IN AFFORDABILITY, AND THAT REALLY AFFECTS OPERATIONS BECAUSE YOU CAN'T COLLECT THE REVENUE WHEN YOU RESTRICT THE RENT.

SO WHEN WE OPEN UP MORE UNITS TO MARKET RATE, THAT JUST ALLOWS THE PROJECT TO GAIN MORE REVENUE EACH MONTH AND ALLOW FOR OPERATIONS.

OKAY, AND THERE HAS TO BE BY POLICY, 50% BELOW THE 80 OF THE 60 AND 40% AMIS.

SO THE OFFICIAL STATE REQUIREMENTS SAY THE MINIMUM THAT YOU HAVE TO RESTRICT THE UNITS ON THIS PROPERTY ARE 40% OF THE UNITS AT 80% AMI OR BELOW, AND AT LEAST 10% OF THE UNITS AT 60% AND BELOW.

AND SO NOW WE HAVE 46% OF THESE UNITS ARE BELOW 60% WITH 5% BELOW 30%, WHICH IS FAR BELOW THE MINIMUM STANDARDS OUTLINED BY THE STATE STATUTE. OKAY, THE INVESTMENT OF $3 MILLION.

AGAIN, JUST GOING BACK TO WHAT WAS STATED EARLIER, THAT THE PROPERTY NEEDS A LOT OF WORK.

IS THE $3 MILLION GOING TO THE ACTUAL UNITS, OR IS IT, BECAUSE I SEE A LOT OF COMMON SPACE ADDITIONS HERE, TALKS ABOUT A POOL, TALKS ABOUT SOME COMMUNITY GATHERING SPACES.

AND SO HOW MUCH IS ACTUALLY GOING INTO RENOVATE THE ACTUAL UNITS THEMSELVES?

[00:45:03]

HE HAS THE EXACT NUMBERS HERE AND CAN SPEAK MORE TO THAT QUESTION.

SURE, YEAH. SO IT'S ABOUT 2.5 MILLION IS GOING IN THE UNITS.

AND WHAT TYPE OF IMPROVEMENTS ARE YOU DOING IN THE UNITS? SURE, YEAH. SO WE'RE REMOVING ALL THE FURNISHINGS AND CARPETING.

WE'RE DOING NEW LUXURY VINYL TILE FLOORING THROUGHOUT.

WE'RE GOING TO BE PAINTING ALL THE INTERIORS IN THE UNITS.

WE'RE DOING ALL NEW APPLIANCE SETS. SO THAT INCLUDES A FULL RANGE OVEN, ELECTRIC BURNER, COOKTOP, A HOOD, A HUD, A NEW REFRIGERATOR, A NEW DISHWASHER.

WE'RE DOING IN-UNIT WASHER DRYERS. WE'RE GOING TO BE ADDING A LOT OF OWNER ITEMS, LIKE NEW BLINDS.

SO IT'S GOING TO BE A, FEEL LIKE A BRAND NEW, REFRESHED UNIT.

HOW MUCH OUT OF THE 2.5 IS GOING PER UNIT? 17,600.

AND THAT INCLUDES APPLIANCES AND FIXTURES? THAT'S CORRECT.

OKAY. OKAY. AND THEN THE PFC, THEY'RE TYPICALLY DOING NEW CONSTRUCTION, OR ARE THEY ALSO DOING REHAB AND RENOVATIONS? WE TYPICALLY DO NEW CONSTRUCTION.

WE HAVEN'T EVER DONE A REHAB BEFORE, AND SO THIS IS SOMETHING THAT THE BOARD IS CONSIDERING FOR THE FIRST TIME.

I THINK THE MAIN MOTIVATION WAS THE ABILITY TO USE THIS EXISTING STRUCTURE TO GET DOWN TO THOSE DEEPER AFFORDABILITY LEVELS.

AND SO WHY NOT AN HFC PROCESS? I MEAN, THE HFC TYPICALLY USES TAX CREDITS.

THAT'S A COMPLETELY DIFFERENT SET OF FINANCING RULES, AND IT TAKES A MUCH LONGER PERIOD OF TIME.

I THINK DANIEL AND HIS PARTICULAR COMPANY HAVE USED THIS METHOD AND THIS TEMPLATE IN OTHER MUNICIPALITIES ACROSS TEXAS, AND IT'S WORKED WELL WITH CONVENTIONAL FINANCING.

AND SO THE GROUP IS COMFORTABLE WITH THIS SORT OF FINANCING STRUCTURE.

LAST QUESTION FROM ME ON THIS ROUND IS HAS THE, WHERE IS THE DEVELOPER FROM, AND HAS HE DONE PFCS IN DALLAS BEFORE? I'LL LET YOU ANSWER THAT. SO WE'RE BASED IN NEW YORK.

THIS WOULD BE OUR FIFTH DEAL IN TEXAS. WE OWN ANOTHER PROPERTY IN DALLAS.

THIS WE'VE DONE TWO A PFC TRANSACTIONS IN SAN ANTONIO.

AND THIS WOULD BE OUR FIRST IN DALLAS. OKAY. THANK YOU, CHAIR.

OKAY, THANK YOU. I'LL JUST KIND OF GO DOWN THIS WAY.

OKAY, DEFERRING, ANY QUESTIONS? THE, CHAIRMAN GRACEY.

OKAY. AND THANK YOU CHAIR, FOR THIS. AND THANK YOU MAYOR PRO TEM, FOR YOUR QUESTIONS.

I KNOW THIS IS IN YOUR DISTRICT. I'M OBVIOUSLY HAVE A PASSION FOR THESE PFCS, AND I'M LOOKING AT THE MAP AND I STAY ON GOOGLE EARTH TRYING TO KIND OF GET A LAY OF THE LAND AND REALLY UNDERSTAND IS THIS PRODUCT DOING WHAT IT WAS MEANT TO DO, AND THAT IS SPARK ECONOMIC DEVELOPMENT IN AND AROUND THE AREA.

AND THE SHORT ANSWER IS WHEN YOU LOOK AT IT, IT'S YES, YOU GOT A COUPLE OF MOTELS DOWN THE WAY, A COUPLE OF THEM, FROM WHAT I COULD TELL. I THINK THERE MAY BE ANOTHER APARTMENT COMPLEX MAYBE A MILE AWAY OVER SOMEWHERE NOT TOO FAR ON THE OTHER SIDE OF THAT SINGLE FAMILY NEIGHBORHOOD. BUT OTHER THAN THAT, I DIDN'T SEE ANY OTHER MULTIFAMILY NEAR.

SO FOR THAT REASON, IT MAKES SENSE. WHAT I'M TRYING TO ASSESS IS, I HEARD YOU SAY A COUPLE OF THINGS.

ONE, THE PROPERTY WAS VACANT. IS IT VACANT OR NOT? IS IT VACANT? IT WAS ABOUT 50% OCCUPIED AS A HOTEL PROPERTY.

AND SO SINCE I BELIEVE NOVEMBER THE DEVELOPER PARTNER HAS PURCHASED THE PROPERTY AND IS NOW VACANT.

GOT IT, UNDERSTOOD. OKAY. AND THEN YOU SAID THAT AREA WAS ON THE HIGHER SIDE OF POVERTY.

IS THAT? CORRECT. OKAY. IT'S, I MEAN, IT'S A VERY SUBJECTIVE KIND OF WAY TO SAY THAT THE POVERTY LEVEL IN THAT PARTICULAR CENSUS TRACT IS ABOUT 23% OVER THOSE 1000 HOUSEHOLDS THAT IT COVERS.

OKAY. AND THEN, DO WE KNOW MUCH DEMOGRAPHICALLY ABOUT THAT NEIGHBORHOOD AND WHAT I MEAN THAT FROM A FROM AN ECONOMICS, OBVIOUSLY THAT'S PART OF IT. BUT HOW MUCH OF THAT SINGLE FAMILY NEIGHBORHOOD ARE RENTERS? NOT THAT IT MATTERS. I'M JUST CURIOUS. AND IF THOSE KIND OF CONVERSATIONS, BECAUSE THE PART WHERE DEPUTY, MAYOR PRO TEM MORENO WAS GOING IS WHERE I'M CURIOUS TO WITH ANY OF THESE DEVELOPMENTS.

I'M A HUGE FAN OF PFCS, BUT I ALSO WANT TO MAKE SURE THAT WE'VE GOTTEN THE FEEDBACK FROM THE NEIGHBORS THERE.

SO I'M TRYING TO GET SOME CLARITY. AND THAT'S REALLY WHAT I'M LISTENING FOR, TOO, BECAUSE AND I'LL COME BACK TO THE ECONOMICS OF IT, BUT FROM AN OUTREACH PERSPECTIVE, TELL ME WHAT TYPE OF OUTREACH HAS TAKEN PLACE TO THAT NEIGHBORHOOD,

[00:50:02]

ABSOLUTELY, SO WE ENGAGED TRINITY PUBLIC AFFAIRS TO HELP US WITH THAT NEIGHBORHOOD OUTREACH.

WE CAME DOWN IN DECEMBER. WE HELD TWO OPEN HOUSE EVENTS AND INVITED ALL THE NEIGHBORS OVER.

SEVERAL MEMBERS OF THE COMMUNITY THE NEIGHBORING COMMUNITY FROM ARLINGTON PARK CAME BY AND TOURED, AND WE ANSWERED THEIR QUESTIONS, THEY HAVE A SIGN IN SHEET.

AND WE HAD FOLLOW UP CALLS WITH THE LEADERS OF THE ORGANIZATION, WE'RE STILL AN ACTIVE DIALOG.

WE HAVE A CALL SCHEDULED ON MONDAY WITH THEM.

THEY WANTED TO CLARIFY SOME POINTS ABOUT THE PROJECT.

WE ALSO ATTENDED THEIR COMMUNITY EVENT AS A SPEAKER.

WE WENT BACK TWO WEEKS AGO AND A SPONSORED A BARBECUE TO CONTINUE THE DIALOG AND ENGAGEMENT.

SO IT'S VERY MUCH ACTIVE AND ONGOING. AND WHAT HAS THE FEEDBACK BEEN FROM THE FOLKS THAT YOU HAVE ENGAGED? SO THERE WAS TWO PRIMARY OR THREE, I WOULD SAY.

ONE WAS THEY WERE HAPPY TO SEE DOLLARS BEING INVESTED INTO THIS PROPERTY.

THAT WAS ONE. TWO WAS AT THE NEIGHBORHOOD EVENT THAT WE ATTENDED.

THERE WAS US SPEAKING AND ANOTHER HOME BUILDER IN THE AREA, AND ONE OF THE QUESTIONS THAT HAD COME UP FROM THE AUDIENCE WAS, YOU KNOW, IS THERE ANY WAY TO MAKE THESE HOUSES THAT YOU GUYS ARE BUILDING AFFORDABLE? AND THE GUY SAID, NO, I BUY THESE HOUSES AND I TRY TO CHARGE AS MUCH AS I CAN.

AND OUR RESPONSE WAS, OUR PFC DEAL IS CONTRACTUALLY OBLIGATING US TO SET ASIDE UNITS FOR LOWER INCOMES, AND THEY WERE PLEASED TO SEE THAT. AND THEN THE LAST COMMENT THAT CAME UP WAS THEY WANTED US TO WELCOME, YOU KNOW, SENIORS AND OLDER FOLKS, WHICH OF COURSE WE DO.

I MEAN, WE CAN'T AGE, DISCRIMINATE AND SAY, THIS BLOCK IS SET ASIDE, BUT WE'RE GOING WE HAVE A PLAN TO ACTIVELY MARKET TO SENIORS IN THE COMMUNITY.

OKAY. AND WHICH. YES, SIR. IN ADDITION TO YOUR QUESTION ABOUT OWNERSHIP OR RENTER, STAFF PULLED THE CENSUS TRACK DATA FOR CENSUS TRACK 100.01, AND WE SHOW THAT 91% OF THE UNITS ARE OCCUPIED WITH 83% OF THEM BEING RENTER OCCUPIED, AND 51% OF THEM BEING SINGLE FAMILY UNITS. SO THEY'RE WITHIN THAT CENSUS TRACT THAT OTHER APARTMENT COMPLEX YOU SPOKE ABOUT CONTRIBUTES TO A LOT OF THOSE RENTAL UNITS.

WITHIN THAT, I DON'T HAVE THE TOTAL UNIT COUNT, BUT AS A MAJORITY OF THE CENSUS TRACT, THEY'RE MOSTLY RENTAL, CONTRIBUTING PRIMARILY DUE TO THAT OTHER APARTMENT COMPLEX.

OKAY. AND THEN SO THAT BRINGS ME TO MY LAST PIECE THAT I'M TRYING TO MAKE SURE WE DON'T ACCIDENTALLY DO WITH THE PUBLIC FACILITIES CORPORATION TOOLS. AGAIN, THEY'RE MEANT TO SPARK ECONOMIC DEVELOPMENT.

AND AGAIN, FROM EVERYTHING I CAN SEE, I HAVEN'T, YOU KNOW, GOTTEN INTO ANY NUMBERS OR ANYTHING, BUT JUST LOOKING AT THE AREA AND ALL THAT AND ITS CURRENT USE OR IT'S, YOU KNOW, FROM A MOTEL ACTIVITY, RIGHT THERE BY A SINGLE-FAMILY NEIGHBORHOOD. I THINK THIS COULD ACTUALLY SPARK THE DEVELOPMENT THAT WE INTEND FOR PFCS TO DO.

BUT I WANT TO MAKE SURE THAT THOSE PRICE POINTS AGAIN, YOU SAID HIGHER SIDE OF THE POVERTY RATE.

SO EVEN AS WE ADJUSTED THOSE PRICE POINTS AND I GET IT, YOU YOU INCREASE THE NUMBER OF MARKET RATES SO YOU CAN KEEP THE AFFORDABLE.

I GOT ALL THAT PART. BUT DOES THAT UNINTENTIONALLY SET A TONE FOR GENTRIFICATION NOW? THAT'S SO, THAT'S THE OTHER PIECE. SO AS WE'RE SETTING BECAUSE I UNDERSTAND IT'S A FINE BALANCE BETWEEN THE MEDICAL DISTRICT AND YOU HAVE THESE EXISTING FOLKS, AND WE GOT TO FIND A BLEND THAT MATCHES, THAT BRINGS ALL OF IT TOGETHER, WHICH IS THE POINT, WHICH IS WHY I LIKE PFCS. BUT DOES THAT PRICE POINT AS WE ADJUSTED IT, DOES THAT PUT A, CREATE AN OPPORTUNITY OR SOMETHING FOR SOME OF THOSE WHO MAY BE RENTING IN THAT IN THOSE HOMES, DOES THAT CREATE AN OPPORTUNITY FOR THEM NOT TO BE ABLE TO AFFORD? I THINK WHEN YOU'RE LOOKING AT GENTRIFICATION, THE PFC IS ACTUALLY THE PERFECT TOOL TO BATTLE AGAINST THAT BECAUSE YOU HAVE, IT'S FORCED, THE PROBLEM IS. SURE, I JUST DON'T WANT THE PRICE POINTS TO UNINTENTIONALLY, DO, YOU KNOW, COUNTER WHAT IT WAS INTENDED TO DO. RIGHT, AND SO THE HALF OF THE PROPERTY THAT IS RESTRICTED WILL ALWAYS BE AFFORDABLE TO PEOPLE AT THE LOWER PRICE POINTS, AND SO. AND I'M ASKING ARE THOSE NEW PRICE POINTS STILL.

THOSE PRICE POINTS ARE THE SAME BASED ON THE AMI LEVEL.

OKAY. ALL RIGHT. SO THEY'RE SET BY HUD. YES. THANK YOU.

OKAY. ALL RIGHT. OKAY. ALL RIGHT, I'LL STOP FOR NOW.

I'M TORN. THANK YOU. ANYONE ELSE ON THIS SIDE? OH, ALL RIGHT, I'VE GOT SOME QUESTIONS, AND THEN WE'LL GET ON TO ROUND TWO.

SO FIRST IS FOR STAFF. THIS MAY BE FOR CITY ATTORNEY.

THIS IS AN ACTION ITEM. SO FROM OUR COMMITTEE, WE, PLEASE CORRECT ME IF I'M WRONG, BUT WE CAN EITHER HAVE A MOTION TO RECOMMEND APPROVAL

[00:55:02]

IS THAT YOUR UNDERSTANDING? HI. HANNAH PEACOCK, ASSISTANT CITY ATTORNEY. SO IT'S MY UNDERSTANDING THAT THE COMMITTEE COULD VOTE TO MAKE A RECOMMENDATION THAT COUNCIL EITHER APPROVE OR DENY THIS ITEM AT COUNCIL. BUT IF IT WERE TO BE PLACED ON THE COUNCIL AGENDA BY STAFF, IT COULD MOVE FORWARD.

OKAY. COULD THE COMMITTEE. I HAVE A CAVEAT TO THAT.

COULD THE COMMITTEE RECOMMEND APPROVAL OF EITHER THE ITEM AS PRESENTED BY STAFF, OR RECOMMEND APPROVAL OF THE ITEM AS PRESENTED AT CITY COUNCIL FOR THE LAST AGENDA.

CAN WE REVERT IF WE CHOOSE TO GO BACK TO THE ORIGINAL PROPOSAL? THANK YOU FOR YOUR QUESTION. IT HAS TO BE CONSIDERED AS IT IS POSTED FOR COUNCIL.

IF THERE ARE ANY CHANGES TO BE MADE ON THE ITEM, THAT WOULD NEED TO BE DONE AT COUNCIL VIA FLOOR MOTION.

UNDERSTAND, THANK YOU. OKAY, THAT SOLVES THAT PART FOR ME.

I WANT TO GET CLARIFICATION FROM STAFF ON. I WANT TO BE VERY CLEAR ABOUT THE CHANGES THAT WERE MADE.

AND I DIDN'T GET THAT ALL WRITTEN DOWN, SO I'M GOING TO COME BACK TO THAT IN A SECOND, AND I'M GOING TO GO LINE BY LINE FROM YOUR CHART ON PAGE THREE SO I CAN UNDERSTAND THAT.

SO JUST BE PREPARED FOR THAT PLEASE. SO TALKING ABOUT THE PROPOSAL AT HAND, WHICH WAS STAFF'S RESPONSE TO SOME COUNCIL MEMBERS REQUEST TO TAKE AWAY SOME OF THE AFFORDABILITY AND MAKE THIS MORE MARKET RATE.

SO THAT'S WHAT I'M PROPOSING. THAT'S WHAT I'M TALKING ABOUT NOW.

FIRST OF ALL, DO WE HAVE A NEED FOR MORE AFFORDABLE HOUSING IN THE CITY? THE STAFF RECOGNIZE THAT. YES. OKAY. DO WE HAVE A NEED FOR MORE AFFORDABLE HOUSING NORTH OF INTERSTATE 30? YES. HAS THAT BEEN WELL DOCUMENTED BY CHILD POVERTY ACTION LAB AND BY STAFF REPORTS THAT WE HAVE A CONSOLIDATION OF A LOT OF AFFORDABLE HOUSING IN THE SOUTH, WE NEED A LOT MORE IN THE NORTH? YES, SIR. IS THIS PROJECT ABOVE INTERSTATE 30? YES. TOOK ME A SECOND, BUT, YEAH, RIGHT. OKAY.

SO THIS WOULD NOT BE ANOTHER LOW-INCOME DEVELOPMENT SOUTH OF I30.

THAT'S CORRECT. WHERE WE'RE TRYING TO TARGET PUTTING AFFORDABILITY.

THANK YOU. WE TALKED A LOT ABOUT WHO HAS BEEN TALKED TO IN THE NEIGHBORS, AND I THINK THAT'S VERY IMPORTANT. WE HAVEN'T TALKED ABOUT THE OPPOSITION, IN MY EXPERIENCE, IS DEALING WITH OPPOSITION.

THEY'RE GOING TO SHOW UP IF THEY'RE OPPOSING SOMETHING. HAVE, DID WE HAVE ANY OPPOSITION SHOW UP AT CITY COUNCIL AGENDA OR DO WE HAVE ANY OPPOSITION TODAY? I AM NOT AWARE OF ANY THAT HAVE SHOWN UP TO PUBLICLY SPEAK ON THE RECORD.

DO WE HAVE ANY LETTERS FROM NEIGHBORS OR PROPERTY OWNERS OPPOSING THIS PROJECT? SO FROM OFFICE OF HOUSING COMMUNITY EMPOWERMENT, WE'VE RECEIVED NONE.

OKAY, SO I'M NOT SEEING ANY OPPOSITION. THERE WAS A QUESTION BROUGHT UP BY CHAIRMAN GRACEY ABOUT SPARKING DEVELOPMENT.

I CAN TELL YOU FROM PERSONAL EXPERIENCE, AND I KNOW YOU'VE SEEN THIS IN YOUR DISTRICT, TO THE PFCS THAT HAVE POPPED UP IN MY DISTRICT HAVE HELPED SPUR DEVELOPMENT.

YOU CAN LOOK AT OAK HOUSE ON THE CORNER OF JEFFERSON AND COLORADO BY DISTRICT FOUR.

THAT WAS VACANT FOR 50 YEARS, AND ACROSS THE STREET FROM THAT, NOW WE'RE STARTING TO GET IN OAK FARMS, A NEW DEVELOPMENT OVER THERE. WE'RE STARTING TO FINALLY WAKE UP OAK FARMS. SO MY EXPERIENCE IS THAT IT CAN HELP SPUR DEVELOPMENT.

SO I WANT TO GO BACK TO MY QUESTION. I JUST PROMPTED ON THE CHART.

SO I'M USING THE CHART ON PAGE THREE TO TALK ABOUT WHAT YOU CHANGED.

SO ON THE ONE BEDROOM, 30% AMI, RIGHT NOW YOU HAVE FIVE UNITS.

WHAT WAS IT PREVIOUSLY PROPOSED TO BE? FIVE, UNCHANGED.

OKAY. NEXT LINE 60% AMI 49 UNITS. UNCHANGED, 49 UNITS.

CHANGE IN RENT PRICE TO 1,319, OR WAS 1,319 IS NOW A 1,233.

[01:00:03]

MARKET RATE, WHAT WAS THE ORIGINAL UNIT? 16. ORIGINALLY 16.

NOW WE HAVE 53 AT MARKET RATE. THAT'S RIGHT, ORIGINALLY AT 1,375 UNIT, NOW AT 1,450, AN INCREASE OF $75.

OKAY. TWO-BEDROOM, 30% AMI, YOU HAVE TWO UNITS NOW, WHAT WAS ORIGINALLY PROPOSED? SAME UNCHANGED. TWO. WHAT ABOUT THE TWO-BEDROOM, 60%, 16 UNITS? ORIGINALLY PROPOSED AT 15 UNITS AT A PRICE POINT OF 1,584, NOW AT 1,530, A DECREASE OF $54.

OKAY, AND THEN WHAT ABOUT THE TWO-BEDROOM MARKET RATE? ORIGINALLY PROPOSED AT FIVE UNITS, NOW AT 17, ORIGINALLY PROPOSED AT 1,650 A UNIT NOW, PROPOSED AT 1,800, AN INCREASE OF $150 A UNIT. I FEEL LIKE WE'VE LOST SOME UNITS IN HERE.

HAVE WE LOST SOME UNITS OR, IN THE, FROM THE OLD MIX TO THE NEW? WE'VE LOST AN AMI CATEGORY, SO WE'VE ELIMINATED THE 50% CATEGORY.

THAT'S WHAT I WAS MISSING. OKAY, SO. I'M SORRY, I AVOIDED THE OBVIOUS REDUCTION IN THE CHART.

SO HOW MANY UNITS WERE AT THE 50% LEVEL AND WHERE DID THOSE UNITS GO? THERE WERE TEN AT ONE BEDROOM. OKAY. TEN ONE BEDROOM UNITS AT 50% ARMY PREVIOUSLY.

THAT'S RIGHT. AND WHERE ARE THEY AT NOW? THEY MOVED TO THAT MARKET RATE CATEGORY.

TO MARKET RATE. OKAY, SO IF I ADD UP THE FIVE PLUS 49 PLUS 16 PLUS TWO PLUS 15 PLUS FIVE PLUS TEN, I'M NOT GOING TO MAKE YOU DO THAT. THAT'S GOING TO ADD UP TO THE SAME NUMBER THAT'S IN YOUR CHART ON PAGE THREE.

142, I JUST TRIPLE CHECKED. THANK YOU. OKAY, SO ESSENTIALLY YOUR PROPOSAL TO RESPOND TO SOME COUNCIL MEMBERS SAYING WE DON'T WANT AS MUCH AFFORDABILITY IS TO CUT OUT THE 10 50% AMI UNITS.

THANK YOU FOR THE QUESTION. THAT IS NOT A RECOMMENDATION FROM THE HOUSING STAFF, THAT IS A RECOMMENDATION FROM THE DEVELOPER AND THE DALLAS PUBLIC FACILITY CORPORATION, USING THE OFFICE OF HOUSING AS THE ADMINISTRATIVE PASS THROUGH TO PRESENT THIS INFORMATION TO THIS BODY TODAY FOR CONSIDERATION.

SO THOSE DECISIONS WERE MADE FROM THE PFC AND DEVELOPER TEAM.

WHAT KIND OF SCIENCE OR BACKGROUND OR DATA WAS USED BY STAFF IN RESPONDING TO THAT COUNCIL REQUEST? I MEAN, IS THERE SOME KIND OF DATA BACKED SYSTEM THAT WE'RE USING TO GET RID OF AFFORDABLE UNITS IN THIS PROJECT? IT'S A HARD QUESTION TO ASK. YOU KNOW, A SPECIFIC DATA SCIENCE POINT, I WOULD SAY NO, BUT IT WAS A RESPONSE TO FEEDBACK THAT THE 23% POVERTY LEVEL IN THIS PARTICULAR NEIGHBORHOOD WAS HIGH ENOUGH TO WARRANT MORE MARKET RATE UNITS IN THE MIX OF THIS PROPERTY. BUT YOUR ORIGINAL PROPOSAL HAD GONE THROUGH AND WAS VETTED BY THE PFC.

IT WAS, I ASSUME, LOOKED AT BY THE HOUSING DEPARTMENT, AND YOU FELT AT THE TIME IT CAME TO CITY COUNCIL THAT IT WAS APPROPRIATE, CORRECT? CORRECT. THE ORIGINAL PROPOSAL HAD ABOUT 85% OF THE PROPERTY AS A RESTRICTED RATE UNITS.

NOW IT IS DOWN TO 50%. SO DO WE HAVE A, DOES STAFF HAVE A, I GUESS A PROCEDURE OF ANYTIME COUNCIL SAYS WE DON'T WANT AFFORDABILITY, YOU JUST CHANGE THE DEAL.

IS THAT WHAT WE DO HERE? SO WE LISTEN TO FEEDBACK ON ALL PROJECTS, RIGHT? AS WE WORK THROUGH THE OVERALL GUIDANCE, THROUGH THE UPCOMING PFC AND HFC PROGRAM STATEMENTS THAT ALLOW US TO MORE ARTICULATE THE PRIORITIES OF THE PFC AND HFC CORPORATION UNTIL WE FULLY VET AND HAVE THAT POLICY RECOMMENDED RECOMMENDATION.

WE CONTINUE TO BRIEF EVERY ITEM ON ITS MERIT AND THROUGH COUNCIL CONSIDERATION.

PART OF THOSE UPCOMING CONSIDERATIONS FOR PFC IS THAT THAT 50% UNIT MIX IS GENERAL MANAGER AARON IS SPOKEN ABOUT IS, REALLY WHAT MAKES THAT PFC PROJECT A VERY POWERFUL TOOL IN AREAS THAT HAVE A HIGHER POVERTY AREA BECAUSE THEY START TO BRING MARKET RATE IN AN AREA THAT HASN'T SEEN THAT TYPE OF DEVELOPMENT. WHEN YOU REDUCE THAT AMOUNT FROM 50% TO DEEPER AFFORDABILITY, IT IS GREAT BECAUSE IT ADDRESSES OUR OTHER AFFORDABLE HOUSING NEEDS IN THE CITY THAT HAVE BEEN WELL DOCUMENTED AND NEED AS MANY UNITS SUB 50% AMI AS POSSIBLE.

[01:05:07]

IT'S THE WILL OF COUNCIL TO DEBATE AND UNDERSTAND THE MERITS FOR THIS PROJECT AND THIS LOCATION AT THIS TIME, ON WHAT THE WILL OF COUNCIL IS TO DETERMINE HOW TO ADDRESS OUR MULTIPLE HOUSING CHALLENGES, AND USING EACH DEVELOPMENT OPPORTUNITY TO ADDRESS THEM IN VERY INTERESTING AND COMPELLING WAYS.

OKAY. THANK YOU FOR THAT. I'VE GOTTEN OFF ON THE OLD DEAL BECAUSE I STILL SUPPORT THAT.

I WAS PRETTY CLEAR AT THE AGENDA THAT I DID. BUT AT A MINIMUM, I THINK NOW IS WE'RE BRINGING THIS MORE MARKET RATE.

IT'S KIND OF CRAZY. YOU'VE RESPONDED TO COUNCIL, AND WE STILL HAVE CONCERNS, APPARENTLY.

SO, FROM MY END I SEE OPTION ONE IS WE APPROVE THIS DEAL, WE BRING IT, WE BRING ONLINE MORE AFFORDABLE AND MARKET RATE UNITS FOR DECADES TO COME, PROVIDING HOUSING STABILITY. OR WE TURN THE DEVELOPMENT BACK INTO AN UNDERPERFORMING EXTENDED STAY MOTEL, WHICH CLEARLY HAS A LOT OF CRIMINAL ACTIVITY, AND QUITE FRANKLY, THESE EXTENDED STAY HOTELS ARE SOME OF THE WORST OFFENDERS IN MY NEIGHBORHOOD. I KNOW THEY ARE THROUGHOUT THE WHOLE CITY TOO, SO PFC PROJECT WOULD BE A HUGE UPGRADE FOR THIS.

SO MY VOTE WILL BE WHEN WE'RE READY FOR IT TO SUPPORT THE PROJECT AND MOVE IT FORWARD.

SO, NOW MOVING ON TO ROUND TWO AND WE HAVE A GUEST AS WELL.

NO? ANYBODY? CHAIRMAN. YES, THANK YOU, CHAIRMAN WEST.

I KNOW THE FOLKS ARE BENEFICIAL AND CAN REALLY HELP US WITH BRINGING AN OPPORTUNITY AND ECONOMIC DEVELOPMENT TO A INTO A COMMUNITY AS COUNCIL MEMBER HAS SPOKEN ABOUT GRACEY COUNCIL MEMBER GRACEY.

BUT I WANT TO ASK MAYOR PRO TEM, BECAUSE I KNOW THIS IS IN YOUR DISTRICT.

WHAT IS THE, LISTENING TO WHAT WE THE CONVERSATION THAT WE HAD AT THE BRIEFING.

WHAT IS THE SUPPORT SYSTEM THAT YOU FEEL IS NEEDED CONCERNING THIS? BECAUSE I'M LISTENING TO CHAIR WES, AND FOR ME, IT'S IMPORTANT THAT WE HEAR THE VOICE OF OUR COMMUNITY AND WHAT THEY'RE SAYING, AND I BELIEVE IT'S IN ARLINGTON PARK, AND I KNOW THAT AREA BECAUSE IT WAS ON MY TRUSTEE AND MY TRUSTEE AREA WHEN I SERVED AS A TRUSTEE BOARD, WHAT, A FEW MONTHS AGO. AND SO, I KNOW THE COMMUNITY WELL.

WHAT IS THE TEMPERAMENT THERE. AND I UNDERSTAND THAT THEY HAD BARBECUE AND ALL THAT, SOME OF THOSE THINGS NOT SO, YOU KNOW, IT'S LIKE A DOG AND PONY SHOW TO ME WHEN THEY DO STUFF LIKE THAT, BECAUSE WE WANT REAL PARTNERSHIP AND REAL INVESTMENT AND INVOLVEMENT AND NOT JUST THE MOMENTARY THING. SO FROM YOU AS THE COUNCIL MEMBER THAT IS THE VOICE FOR THAT COMMUNITY.

WHAT ARE THEY SAYING AND HOW WOULD YOU LIKE FOR US TO PROCEED WITH THIS PARTICULAR PROJECT? CHAIR, MAY I SHARE IT WITH ME? CAN HE ANSWER THAT FOR ME? I'M SORRY. YEAH. PLEASE GO AHEAD. THANK YOU. CHAIR. LOOK, IT'S 2:00 HERE ON ON TUESDAY.

OUR COUNCIL MEETINGS ARE ON WEDNESDAYS DURING THE DAY WHEN PEOPLE ARE WORKING.

THAT'S WHY THEY'RE NOT HERE. I'VE ASKED THEM NOT TO SEND A LETTER OF OPPOSITION, BECAUSE I DO WANT TO KEEP THIS GOING.

I DO WANT TO TRY TO COME TO AN AGREEMENT WITH THE COMMUNITY.

FEELS COMFORTABLE. THAT'S WHY THERE IS NOT A LETTER OF OPPOSITION.

IF WE WANT TO LET OUR OPPOSITION, WE CAN HAVE A LETTER OF OPPOSITION. BUT WILL THIS BODY CARE TO LISTEN TO THAT LETTER OF OPPOSITION IF IT COMES THROUGH? AGAIN, THAT'S NOT WHAT I'M RECOMMENDING TODAY.

I WANT TO GIVE THAT ADDITIONAL TIME WITH OUR NEXT COUNCIL MEETING TO HOPEFULLY THAT THERE IS CONTINUED DIALOG THROUGHOUT THE PROCESS HERE. AGAIN, I, I'VE SUPPORTED EVERY HFC AND PFC THAT HAS GONE THROUGH, ESPECIALLY IN MY DISTRICT, BECAUSE I KNOW THAT THE COST OF LAND CONTINUES TO SKYROCKET.

AND WE WANT TO MAKE SURE THAT WE'RE PRESERVING AFFORDABILITY FOR THE PEOPLE THAT LIVE IN THAT COMMUNITY TODAY AND TO KEEP ATTRACTING A WORLD CLASS COMMUNITY, TO BE ABLE TO WORK AT THE HOSPITAL DISTRICT, TO BE.

THERE IS A, THIS AREA IS TO CHAIR GRACIE'S POINT IS AN AREA THAT I AM VERY CONCERNED ABOUT GENTRIFICATION.

IT'S BETWEEN STEMMONS AND I30. YOU KNOW, AND WE KEEP TALKING ABOUT A RUNDOWN EXTENDED MOTEL.

THIS WAS ACTUALLY A MARRIOTT OR RESIDENT. DEFINITELY A BRAND, I CAN'T RECALL WHICH BRAND IT IS,

[01:10:01]

IT'S NOT. AND THAT'S JUST THAT'S JUST NOT FACTUAL.

BUT MY HOPE IS THAT WE JUST MOVE THIS FORWARD TO COUNCIL WITHOUT A RECOMMENDATION, BECAUSE I WOULD NOT BE ABLE TO SUPPORT A RECOMMENDATION TODAY WITHOUT THAT COMMUNITY SUPPORT, WHICH I THINK CAN COME IF THEY'RE ABLE TO CONTINUE THE WORK THAT THEY HAVE BEEN DOING.

SO I DO HAVE ONE QUESTION. AT THE LAST COUNCIL MEETING, THE DEVELOPER TALKED ABOUT INCENTIVES FOR THE COMMUNITY AND DOING UPGRADES AT THE RECREATION CENTER OR PROVIDING SOME SORT OF STIPENDS FOR THE COMMUNITY KIDS. IS THERE ANYTHING IN WRITING OR ANYTHING THAT WOULD RATIFY THAT? SURE, SO IT WASN'T UPGRADES. WE IN COMMUNICATION WITH THE LEADERS OF ARLINGTON PARK, WE ONE OF THE REQUESTS THAT CAME WAS SPONSORING SOME OF THOSE REC FEES. AND IN OUR DIALOG WITH THE LEADERS THEY WANT TO MOVE FORWARD WITH SOME SORT OF MOU TO CAPTURE THAT. BUT TO BE CLEAR THEY'RE THEY NEVER EXPRESSED THAT THEY'RE AGAINST THIS PROJECT.

AND YOU KNOW, THEY DID EMAIL GUNNAR RAWLINGS WITH TRINITY PUBLIC AFFAIRS SAYING, FINGERS CROSSED BEFORE OUR LAST CITY COUNCIL MEETING.

WE HAVE A CALL SCHEDULED WITH THEM ON MONDAY. THE CONVERSATION HAS BEEN VERY POSITIVE AND CONSTRUCTIVE.

WE'RE IN WHAT THEY CALL SORT OF A STAGE ONE OF OUR PROCESS, ENGAGING WITH THEM.

IT SEEMS LIKE A VERY FORMAL PROCESS, BUT WE'RE, YOU KNOW, GOING WITH FOLLOWING THEIR LEAD.

AND WE'VE BEEN VERY RECEPTIVE AND IT'S BEEN. AND I THANK YOU.

THANK YOU FOR THAT. I REALLY DO APPRECIATE THAT.

I WANT TO GO BACK TO THE $3 MILLION. SO WE'RE TALKING ABOUT INVESTING ABOUT $17,000 PER UNIT INCLUDING APPLIANCES. BUT WE'RE ALSO TALKING ABOUT AMENITIES WILL INCLUDE A DOG PARK, A BASKETBALL COURT, A POOL, FITNESS CENTER, ACCESSIBLE OR. YEAH. SO JUST HELP ME UNDERSTAND HOW ARE WE IMPROVING? BECAUSE WE KEEP TALKING ABOUT THAT. THIS IS A RUNDOWN, EXTENDED MOTEL THAT IT NEEDS HELP AT $17,000 PER UNIT.

HOW DOES THAT MAKE IT A UNIT THAT IS? BECAUSE I KNOW SOMETHING THAT THE PFCS AND HFCS REALLY STAND BEHIND IS BRINGING A GRADE A QUALITY LIVING IMPROVEMENTS. AND SO IF THIS IS A RUNDOWN MOTEL, HOW IS WAS $17,000 REALLY BEING IMPACTFUL? I MEAN, WE'VE DONE 3000 OF THESE ACROSS THE US.

WE SHARED A PACKAGE. IF YOU HAVEN'T RECEIVED, I'M HAPPY TO PROVIDE IT AGAIN WITH SOME BEFORE AND AFTERS, YOU WILL NOT RECOGNIZE THE PROPERTY. IT FEELS NEW WHEN YOU WALK IN.

OKAY. LAST QUESTION FOR ME IS WHAT IS THE, WHAT'S CONSIDERED AN AFFORDABLE RENT FOR A ONE BEDROOM IN DALLAS? THERE IS NO STANDARD FOR ONE BEDROOM RENT IN DALLAS.

IT'S ALL SPECIFIC TO AMI POPULATIONS. IF WE'RE LOOKING AT AFFORDABLE RESTRICTED RATE.

AND I DON'T, I UNFORTUNATELY DON'T HAVE THAT FULL CHART OF OUR FAIR MARKET RATES IN FRONT OF ME.

OKAY, IF WE CAN GET THAT FOR THE FULL COUNCIL AGENDA, THAT WOULD BE GREAT.

YEAH, I'LL HAVE THAT. THANK YOU, CHAIR. THANK YOU, MAYOR PRO TEM. AND I THINK WE SOMEHOW CHAIRMAN JOHNSON LOST THE FLOOR FOR A LITTLE BIT THERE. SO I'M GOING TO GO BACK TO HIM. AND THEN I KNOW WE GOT SOME OTHER QUESTIONS.

GO FOR IT. HEY, MAYOR PRO TEM, I UNDERSTAND. NO, I JUST, THAT WAS THE GIST OF IT.

JUST HEARING THE PASSION AND HEARING YOUR SINCERITY, AND IT'S GOOD TO KNOW THAT HERE, BECAUSE I HAVEN'T BEEN ON THE COUNCIL AS HERE AS LONG AS MOST OF YOU. BUT TO HEAR THAT YOU'VE ALWAYS SUPPORTED THIS.

SO IT SEEMED LIKE YOU'RE SAYING. YOU'RE NOT SAYING NO, YOU'RE JUST SAYING WE JUST WANT MORE COMMUNICATION AND MORE A VETTED PROCESS WITH THE COMMUNITY AND YOURSELF TO MAKE SURE THIS IS SOMETHING THAT EVERYBODY WANTS.

IS THAT IS THAT CORRECT? OKAY. THANK YOU SO MUCH.

DEPUTY MAYOR PRO TEM. GO AHEAD. YEAH, I HAVE ONE MORE.

OH, DID YOU HAVE MORE TO. OKAY. YEAH, JUST ONE MORE.

I'M GOING TO HAVE. SHE HASN'T GONE, AND THEN I'LL COME TO YOU. OH, I'M SORRY, I THOUGHT SHE SAID. THAT'S ALL RIGHT.

SO I'M TRYING TO UNDERSTAND WHAT. SO THE ARLINGTON PARK NEIGHBORHOOD ASSOCIATION, WHICH IS MAYOR PRO TEM, IS CONCERNED WE DON'T HAVE OPPOSITION, BUT WE DON'T HAVE SUPPORT.

IT DOES LOOK LIKE YOU'VE HAD QUITE A BIT OF ENGAGEMENT WITH THEM.

I MEAN, IS THERE A HESITATION THAT'S BEING EXPRESSED OF SOMETHING THAT THEY'RE STILL WANTING FROM THIS?

[01:15:07]

SO THAT WAS ONE ITEM THAT DID COME UP FROM THEM.

BUT, YOU KNOW, JUST REFERENCING THAT OPEN HOUSE EVENT YOU KNOW, WE HAVE A SIGN IN SHEET.

AND OF THE PEOPLE WHO SIGNED UP, WE ALSO PUT A BOX.

DO YOU SUPPORT? AND WE HAVE YOU KNOW, FIVE YESES.

AND THESE ARE RESIDENTS OF ARLINGTON PARK. WELL, I'M LOOKING AT, YOU KNOW, HOW YOU'VE BEEN RESPONSIVE TO THIS.

AND I WILL SAY I SHARE THE CHAIR'S CONCERN THAT, YOU KNOW, WE SAY WE DON'T WANT SOMETHING, AND IT STARTS TO, YOU KNOW, CHANGE THE POLICY AROUND HOUSING AND CERTAINLY OUR NEEDS.

I WILL SAY, FROM WHAT YOU'VE DESCRIBED, IF THE CONCERN IS ON CONCENTRATING POVERTY AND INCREASING THE NUMBER OF MARKET RATE UNITS BY 49 IS, SEEMS LIKE THAT'S BRINGING THIS BACK UP. WHAT WAS THE TOTAL? IT'S 50% NOW? IT WAS ORIGINALLY 15% MARKET AND NOW IT'S 49% MARKET.

49% MARKET. SO, I MEAN, IS THERE, I'LL ASK MAYOR PRO TEM.

I MEAN, IN ADDITION TO WHAT THE DEVELOPER SAYING, I MEAN, IS THERE SOMETHING ELSE THE COMMUNITY IS LOOKING FOR BESIDES JUST DON'T CONCENTRATE POVERTY BY US? CHAIR. YEAH. THANK YOU.

NO, I MEAN, I THINK THEY WANT TO SHARE UP THE MOU WITH THE REC CENTER AND SOME POSSIBLE BENEFITS TO THE COMMUNITY.

AND THEN I'M OBVIOUSLY THE COMMUNITY WANTS IMPROVEMENTS TO HAPPEN, RIGHT? IT'S THE WAY WE BALANCE IT. AND I'LL TRY NOT TO BE LONG WINDED.

BUT YES, NO, I THINK THAT THE BIG BULK OF IT HAS BEEN ADDRESSED SO FAR.

I JUST WANT THEM TO BE I DON'T BELIEVE THEY'VE HAD AN OPPORTUNITY TO REVIEW THE LATEST CHART THAT HAS BEEN PROVIDED ON THE AMIS TODAY, AND SO I WANT TO BE ABLE TO SHARE THAT WITH THEM FOR THEIR REVIEW AND CONSIDERATION.

OKAY. AND SO ON THE CONSIDERATION AS FAR AS WHAT YOU'RE WILLING TO DO FOR THE COMMUNITY, IT SOUNDS LIKE THAT'S NOT REALLY HARD SCAPE.

IT WAS MORE IN TERMS OF SERVICES AND BENEFITS AROUND COVERING FEES AT REC CENTERS.

DO YOU HAVE SOME KIND OF DOCUMENT OR SOMETHING THAT OUTLINES THAT YOU WOULD PROVIDE THAT, OR WHAT THAT DOLLAR AMOUNT WOULD BE, OR? THIS WAS A REQUEST THAT WAS SHARED WITH GUNNAR RAWLINGS OVER THE PHONE, AND WE PUT IT IN WRITING ON EMAIL THAT WE'D BE COMFORTABLE.

WE DIDN'T GET INTO DOLLAR AMOUNTS, BUT I THINK IT'S JUST A DEMONSTRATION OF OUR GESTURE TO THE COMMUNITY, AND WE'RE HAPPY TO PUT DOLLARS TO IT, IF THAT'S THE ASK.

WELL, I CAN IMAGINE YOU CAN IMAGINE HOW IT'S GOING TO GIVE PEOPLE A LITTLE MORE COMFORT IF THEY'VE GOT SOMETHING TO SEE.

YOU KNOW, ARE YOU TALKING ABOUT $500,000 OR $5000 OR 50 BUCKS? I MEAN, SO IT'S LIKE YOU GOT TO KIND OF FRAME THAT UP SO PEOPLE CAN SEE WHAT THAT INTENT IS.

WE HAVE A CALL, AS I MENTIONED, SCHEDULED WITH THEM ON MONDAY.

AND WE WILL DEFINITELY BE COMMUNICATING THE AMI STRATIFICATION AS IT'S CURRENTLY PRESENTED.

AND YOU KNOW, ANY ADDITIONAL SUPPORT AND MAKE IT MORE FORMAL.

OKAY. WELL, IT SOUNDS LIKE THAT WOULD BE A GOOD MOVE. I MEAN, I'M COMFORTABLE WITH HOW YOU'VE RESPONDED ON THE MARKET RATE ASPECT OF THIS, BUT HAVING THOSE OTHER THINGS THAT WOULD LET PEOPLE KIND OF SEE EXACTLY WHERE YOU ARE ON THAT SOUNDS LIKE IT WOULD BE HELPFUL.

SO I WOULD LIKE TO KNOW THAT THAT IS MOVING FORWARD. ABSOLUTELY.

THANK YOU. CHAIRMAN GRACEY. ANYBODY? MR. ROTH, GO AHEAD.

JUST A, AND I APOLOGIZE FOR COMING IN LATE. BUT I WAS JUST WONDERING, IS THE, DOES, DO WE, ARE WE ALLOWED TO SUGGEST A LIMITATION ON THE LENGTH OF THE TAX ABATEMENT AS PART OF OUR SITUATION, IN VIEW OF THE FACT THAT THAT WE MAY BE COMING UP WITH A MORE MARKET RELATED DEAL, THAT THE MARKET AREA MIGHT IMPROVE.

AND ONE OF MY CONCERNS, QUITE FRANKLY, IS A 60 YEAR TAX ABATEMENT IN AN AREA THAT MAY IN THE FUTURE, BECOME A VERY SIGNIFICANTLY MORE VALUABLE. THIS MIGHT BE A LIMITATION ON THAT TIME PERIOD MAY ALLOW THE DEVELOPER TO GET THEIR PROJECT GOING, GET IT UP AND RUNNING, GET ITS LEGS ON IT.

BUT THEN WE WOULD BE ABLE AS A CITY AND AS A PROPERTY, YOU KNOW, PARTICIPANT THROUGH THE PFC TO BENEFIT FROM THE PROJECT IN THE FUTURE.

AND I DON'T KNOW IF THAT'S PERMITTED OR NOT. SO I'M GOING TO PUNT IT TO YOU GUYS ON THE ON THE LENGTH OF THE TERM OF THE TAX ABATEMENT. AND IF WE NEED TO GET CITY ATTORNEYS TO ADDRESS IT, WE CAN TO GO AHEAD. YES, THANK YOU, CHAIRMAN WEST. SO THE LENGTH OF THE TAX ABATEMENT IS IT'S OUTLINED IN, I BELIEVE, CHAPTER 303 OF THE TEXAS STATE CODE.

[01:20:05]

OKAY. THANK YOU. AND OR CAN THE APPLICANT VOLUNTARILY ALLOW THE TAX ABATEMENT TO BE REVIEWED? I, IF I MAY, I THINK OUR LATITUDE AND STRUCTURING THE LEASE BECAUSE ULTIMATELY THIS WILL BE A LEASE BETWEEN MR. MARTIN'S COMPANY AND THE DALLAS PFC. THE TAX EXEMPTION IS DERIVED FROM THE OWNERSHIP OF THE PFC.

AND SO AS LONG AS THE PFC REMAINS THE OWNER IN THAT PROPERTY, IT IS ENTITLED TO THAT TAX EXEMPTION.

BUT IF WE ARE ABLE TO STRUCTURE A LEASE FOR SOMETHING SHORTER THAN THAT, I WOULD ASSUME, YES, WE CAN PROBABLY GET OUT OF IT THROUGH A SALE OR SOME OTHER FUNCTION, BUT I THINK ANOTHER, I GUESS A BARRIER TO MODIFYING THE TERMS OF THOSE LEASES IS THAT THESE ARE PRETTY STANDARD THROUGHOUT THE STATE, AND SO IT'S HARD TO OBTAIN FINANCING FOR A PERIOD OF TIME THAT THAT IS LESS THAN THAT 60 YEAR MINIMUM.

AND SO WHEN WHEN LENDERS ARE LOOKING AT FINANCING THESE PROPERTIES, THEY'RE THE ONES PUTTING UP THE MONEY TO TO FRONT THESE RENOVATIONS AND TO FRONT THE PROPERTY IMPROVEMENTS. AND SO THEY'RE MUCH MORE RELUCTANT TO PUT THEIR MONEY INTO SOMETHING THAT IS NOT GOING TO RETURN A FULL 60 YEAR LEASE BACK TO THEM. THANK YOU. DEPUTY MAYOR. SURE. WELL, IT'S UNFORTUNATE WE DIDN'T GET TO ITEM F FIRST BECAUSE I THINK THAT WOULD HAVE FRAME THINGS UP REALLY NICELY FOR THIS BECAUSE IT GETS INTO TO THE POINT MADE ABOUT QUESTIONING A 60-YEAR TAX ABATEMENT.

I'M JUMPING THE GUN HERE, BUT ON A PER UNIT BASIS, $321 PER YEAR FOR EACH UNIT OF TAX EXEMPT PROPERTY THROUGH THE PFC.

SO WHAT DOES THAT TRANSLATE TO? THAT MEANS THAT SOMEONE WHO COULD BE IN HOUSING MIGHT BECOME UNHOUSED OR HAVE A LESS SECURE SITUATION. IT COULD LEAD TO FOOD INSTABILITY.

IT COULD LEAD TO DECLINING ENROLLMENT IN OUR SCHOOLS OR MOVING CHILDREN FROM SCHOOL TO SCHOOL OR EVICTION.

AND WE KNOW THAT THESE TRANSLATE TO FAR MUCH MORE IN DOLLARS AND IMPACT ON WHAT THE TAXPAYER HAS TO FOOT THE BILL ON THAT $321 A YEAR. SO YOU HAVE TO LOOK AT THE OFFSET OF THIS, WHICH YOUR PRESENTATION IS GOING TO GET INTO FOR US.

BUT, YOU KNOW, IT MIGHT HAVE MIGHT AFFECT WHERE SOMEBODY WORKS AND THEIR PROXIMITY TO WORK AND HOW MUCH TRANSPORTATION THEY HAVE TO TAKE AND ALL OF THOSE THINGS.

SO THIS IS KIND OF THE YIN AND THE YANG OF WHAT PFC IS ABOUT.

NOW, I THINK THAT THE EXIT COULD BE SOONER THAN 60 YEARS UNDER CERTAIN CIRCUMSTANCES.

SO DO YOU WANT TO SHARE A LITTLE BIT ABOUT THAT? YOU KNOW, IT'S POSSIBLE, RIGHT. BUT THE PFC PROGRAM IS VERY NASCENT HERE IN THE CITY.

STILL, I THINK IT WAS ORGANIZED IN 2020. THE MAJORITY OF THE PROJECTS ARE JUST NOW IN LEASE UP OR STILL UNDER CONSTRUCTION.

SO WE HAVEN'T BEEN THROUGH A FULL CYCLE YET TO GET THROUGH A SALE.

AND SO I COULDN'T TELL YOU EXACTLY WHAT HAPPENS.

NOW. I KNOW OBVIOUSLY THE LEASE WOULD BE TERMINATED IN THE EVENT OF A SALE.

AND THE LOANS PAID BACK AND THAT WOULD ALL BE GREAT AND IT THEORETICALLY COULD GO BACK ON THE TAX ROLLS.

BUT A POTENTIAL BUYER WOULD HAVE TROUBLE, I GUESS, RETURNING THE FULL VALUE, BECAUSE WHEN YOU REMOVE THE PFC FROM THAT OWNERSHIP STRUCTURE, THEY WOULD THEN HAVE TO CONVERT THE ENTIRE PROPERTY TO MARKET RATE.

AND SO IF HALF OF IT IS STILL AT A RESTRICTED RATE IT'S JUST DIFFICULT TO ACHIEVE A DEBT SERVICE COVERAGE THAT WOULD SUPPORT ANY KIND.

THERE ARE WAYS OF, WAYS THAT COULD HAPPEN IF IT WAS DEEMED THAT THAT MIGHT BE IN THE BEST INTEREST FOR.

CORRECT, YOU CAN UNWIND THE LEASE. I MEAN, TO THE POINT ABOUT I MEAN, I HOPE THAT THIS DOES BRING INVESTMENT, BUT DOESN'T DO IT IN SUCH A WAY THAT IT CREATES A LOT OF DISPLACEMENT.

AND SO INFUSING 50% OR 49% MARKET RATE COULD BE A GOOD THING, BUT LET'S HOPE THAT IT ADDS TO THAT BOOM.

AND IF THAT BOOM HAPPENS, WE'RE GOING TO NEED EVERY ONE OF THESE AFFORDABLE UNITS THERE.

[01:25:02]

AT THIS POINT I'LL ENTERTAIN A MOTION. AS WE DO, YOU WANT TO MAKE ONE? MAKE A MOTION TO MOVE THIS TO FULL COUNCIL WITHOUT A RECOMMENDATION.

OKAY. ALL THOSE IN FAVOR SAY AYE. AYE. ANY OPPOSED? I'M A NAY. SO WE GOT. OKAY. WE GOT TWO NAYS AND WE HAVE FOUR.

SO IT'S GOING TO MOVE FORWARD TO COUNCIL WITH NO RECOMMENDATION.

AND THAT WILL COME TO COUNCIL WHEN? I WILL BE PREPARING A RUSH ITEM TODAY TO TRY TO GET IT ON FEBRUARY 11TH.

JAMES IS SHAKING HIS HEAD THAT WE'RE GOING TO GO GET THAT IN MOTION RIGHT NOW. CHAIR WITH.

I'M SORRY. DO IT, I HEARD THE MOTION, BUT WAS IT SUPPOSED TO GO BACK HERE FOR RECOMMENDATION OR THE COUNCIL? SO IT WOULD. THE MOTION IS THAT WE PUSH IT FORWARD TO COUNCIL, PROBABLY IN A WEEK AND A DAY WITH JUST NO RECOMMENDATION.

SO JUST COME FORWARD AS AN ITEM. OKAY, SO IT DOESN'T HAVE TO COME BACK TO THIS COMMITTEE. NO. OKAY. THANK YOU. NOT UNLESS WE SEND IT BACK AGAIN. WHAT'S THAT? WHAT'S YOUR QUESTION? WELL, JUST AS A CLARITY, I THOUGHT THEY SENT IT BACK SO THAT WE COULD MAKE A RECOMMENDATION.

I THINK THAT WAS THE HOPE. SO WE JUST MOVE FORWARD WITHOUT.

MOVING IT ON AGAIN, SIR? YES, SIR. YEAH, YEAH.

THAT'S FINE. I GOT IT. OKAY, THANK YOU. ALL RIGHT, THANK YOU.

OKAY, COLLEAGUES, TIME CHECK ON SOME STUFF. HERE WE ARE.

IF COLLEAGUES, IF YOU HAVE QUESTIONS ABOUT THE BRIEFING ITEMS H THROUGH O, CAN YOU JUST TAKE A QUICK LOOK AND LET ME KNOW WHICH ONES YOU WANT ME TO HOLD FOR US TO TALK ABOUT? OTHERWISE, I'M GOING TO RELEASE STAFF ON ANY OF THEM THAT WE DO NOT HAVE QUESTIONS FOR.

SO LET'S JUST TAKE A MINUTE AND DO THAT. YOU GUYS WANT TO TAKE A LOOK.

SO BRIEFING MEMOS H THROUGH O.

SO, YEAH, H IS THE AUDITOR'S MONTHLY REPORT. I IS THE MONTHLY BUDGET ACCOUNTABILITY REPORT.

J IS ARPA STATUS REPORT FOR THE END OF 2025. AND WE CAN, IF YOU'RE NOT SURE OF YOUR QUESTIONS YET, BUT YOU WANT TO HOLD IT TO TALK AT THE END. WE CAN DO THAT TOO. K IS CDBG SPENDING REPORT THROUGH THE END OF 2025.

L IS THE TECHNOLOGY REPORT. M IS THE MONTHLY PROCUREMENT REPORT.

N IS THE BIANNUAL BUDGET DEVELOPMENT PROCESS.

THAT'S THE TIMELINE OF US GOING THROUGH THE BUDGET PROCESS IN THE FALL.

AND THEN O IS QUESTIONS THAT HAD COME UP ABOUT HOT TAXES AT, BACK IN DECEMBER.

SO IS THERE ANYBODY THAT WANTS TO TALK ABOUT THOSE ITEMS OR YOU MIGHT WANT TO TALK ABOUT IT AND YOU'RE NOT SURE YET, SO. ON I, YOU WANT TO HOLD ON TO THAT? OH. NO.

ARE YOU SEPARATING THEM? I'M TAKING ALL THE BRIEFING MEMOS, AND WE'RE GOING TO RELEASE STAFF ON ALL OF THEM.

UNLESS SOMEBODY HAS A QUESTION ON ANY OF THEM, THEN I'LL HOLD THAT ONE ITEM.

POSSIBLY J AND N. J AND N, LIKE NOVEMBER? OKAY.

DOES THAT CLEANS UP A LOT OF THE DOCKET HERE.

AND IF YOU WANT TO DO IT NOW WE COULD DO IT NOW.

YEAH. YEAH. OKAY. SO WE'RE GOING TO HOLD J AND N ANYBODY WHO IS HERE ON ITEMS H, K, L, M AND O, WE'RE NOT GOING TO HEAR THOSE.

K, CHAIR AND K. AND K? YEAH. OKAY. WE'RE GOING TO HOLD K FOR A SECOND.

SO WE'RE HOLDING J, K, N AS IN NOVEMBER. AND THEN WE'RE GOING TO TALK ABOUT I RIGHT NOW.

EVERYTHING ELSE UNDER BRIEFING MEMOS WHICH IS H, L, M AS IN MARY AND O, WE'RE NOT GOING, WE'RE NOT DOING THOSE TODAY.

SO, WE'RE GOING TO MOVE TO ITEM I, WHICH IS THE MONTHLY BUDGET ACCOUNTABILITY REPORT, BECAUSE I THINK WE HAVE A FAIRLY QUICK QUESTION ON THAT.

OH WELL, I COULDN'T HELP BUT NOTICE THAT CHIEF BALL WAS HERE.

AND IN LOOKING AT THAT VARIANCE JUST WANTED TO SEE IF YOU WANTED TO SHARE WITH US MORE ABOUT THAT.

DOESN'T HAVE TO BE LENGTHY, BUT JUST. ARE YOU COMING BACK TO E? YEAH, WE'RE GOING TO MOVE BACK. GOOD AFTERNOON EVERYBODY.

HELLO. DO YOU WANT ME TO TALK ABOUT THE VARIANCE? YEAH, JUST BRIEFLY, JUST TO. YEAH. CAN YOU, I MEAN, WE KNOW WHO YOU ARE, BUT CAN YOU INTRODUCE YOURSELF?

[01:30:01]

AND YEAH, I'LL EXPLAIN IT. WE ARE A BIT OVER ON THE PROJECTION DUE TO THE FACT THAT ATTRITION HALVED. WE, SO WE PROJECT OUR HIRING. WE PROJECT FOR ATTRITION ABOUT 14 MONTHS IN ADVANCE. AND WE NORMALLY HAVE 12 MEMBERS RETIRE OR LEAVE A MONTH.

SO THAT WENT DOWN TO SIX. WE'RE NOT AS MANY ARE LEAVING.

I'M NOT SURE WHY WE PUT THINGS IN PLACE AND APPROVED SOME EFFICIENCIES.

MORALE MAY BE HIGHER, I DON'T KNOW. THE SURROUNDING CITIES ARE STILL HAVING A PROBLEM HIRING FOLKS, BUT WE'RE DOING PRETTY GOOD. I'VE GOT PLANS IN PLACE TO COUNTER THE FIRST QUARTER OF THIS YEAR.

SO DO YOU FEEL LIKE THIS IS GOING TO IRON ITSELF OUT? BECAUSE IT SOUNDS LIKE WE HAVE FEWER PEOPLE LEAVING AND MORE PEOPLE COMING OUT OF THE ACADEMY THAN WE ANTICIPATED, BUT THIS IS GOING TO SMOOTH OUT.

YEAH, YEAH. I'LL BE HOLDING OFF AND NOT HIRING AS MANY LIKE IN.

I'VE CANCELED THE NEXT FEW CLASSES. AND THEN, BECAUSE WE WERE TRAINING SO MANY.

A LOT OF THE WAGES WERE IN ACADEMY AND TRAINING.

WELL, NOW THAT'LL BE SWITCHING. TO ACTUALLY STAFFING IN THE FIELD.

SO THE OVERTIME WILL BE REDUCED. IN ADDITION TO THE STAFFING LEVELS GOING DOWN.

SO IT'LL BE IT'LL BE BETTER AS THE YEAR GOES ON DEFINITELY.

OKAY, I'M GOOD WITH THAT. THANK YOU. ANYBODY ELSE ON ITEM I? ALL RIGHT, THANK YOU. NEXT WE'LL TAKE UP ITEM J, WHICH IS THE AMERICAN RESCUE PLAN ACT.

I CAN'T REMEMBER WHO ASKED ME TO PULL THAT ONE, BUT IF FOLKS HAVE ANY QUESTIONS.

MAYOR PRO TEM. THANK YOU, CHAIR. HELLO, HOW ARE YOU? QUESTION IS. I'M GOING. I'M TRYING TO GO THROUGH THIS AS QUICKLY AS I CAN.

ARE THERE ANY ADDITIONAL CHANGES ON RECOMMENDATIONS ON ARPA FUND USES FROM THE CITY MANAGER'S OFFICE? JANETTE WEEDON, BUDGET AND MANAGEMENT SERVICES.

NOT AT THIS TIME. THE FISCAL YEAR 26 RECOMMENDED BUDGET REFLECTED THE RECOMMENDATIONS OF REALLOCATION OF THE UPPER REDEVELOPMENT FUND. WE DO NOT HAVE ANY ADDITIONAL CHANGES AT THIS TIME.

COUNCIL APPROVED REALLOCATION OF THE ARPA GRANT FUND ON JANUARY 21ST, AND SO THAT'S WHERE WE ARE.

OKAY. AND SO WE OBVIOUSLY DON'T WANT TO SEND ANY DOLLARS BACK.

AND SO, IS THERE ANY PROJECTS. AND WE DON'T HAVE TO DISCLOSE THEM RIGHT NOW.

AND I KNOW THAT THERE'S, INCLUDING MYSELF AND OTHER COUNCIL MEMBERS THAT HAVEN'T, HAVE, WE HAVEN'T USED ALL OUR DOLLARS.

I JUST WANT TO MAKE SURE THAT WHATEVER DEPARTMENT NEEDS TO BE TALKING TO THOSE COUNCIL MEMBERS AND TO THE DEPARTMENTS THAT HAVE PROJECTS ON HOLD THAT WE ARE MAKING SURE WE'RE EXECUTING DISBURSEMENT OF THESE DOLLARS SO THAT WE CAN BE IN A SITUATION WHERE WE'RE FINANCIALLY BENEFITING THE CITY AND NOT HAVING TO RETURN ANY DOLLARS.

SO IF Y'ALL CAN JUST MAKE SURE WE DO. I KNOW Y'ALL HAVE DONE IT SEVERAL TIMES, BUT JUST ONE MORE ROUND OF, HEY, WE GOT TO GET THESE DOLLARS OUT THE DOOR.

THANK YOU, AND I APPRECIATE THAT. AND ONE THING I WANT TO POINT OUT, APPENDIX A REFLECTS THE US TREASURY GRANT FUND.

AND SO WITHIN THIS PARTICULAR FUND WE HAVE ALL OF OUR FUNDS ENCUMBERED.

WE HAVE ABOUT 10.7 MILLION UNSPENT. WE ARE WORKING WITH THE DEPARTMENTS TO ENSURE THAT THOSE FUNDS ARE SPENT BY SEPTEMBER 30TH.

THESE ARE THE FUNDS THAT WOULD ACTUALLY NEED TO BE RETURNED TO US TREASURY.

THE ARPA DISCRETIONARY ACCOUNTS ARE PART OF THE ARPA REDEVELOPMENT FUND.

WE'VE GIVEN OURSELVES AN INTERNAL DEADLINE TO SPEND BY SEPTEMBER 30TH, BUT WE ARE NOT OBLIGATED TO THE US TREASURY.

BUT WE WILL FOLLOW UP WITH THE DEPARTMENTS TO MAKE SURE THAT THOSE PROJECTS ARE COMPLETED TIMELY.

THANK YOU. ANYBODY ELSE? ALL RIGHT. MOVING ON.

THANK YOU FOR THAT. WE'RE GOING TO GO TO ITEM K, AND KNOCK THAT OUT HOPEFULLY QUICKLY AS WELL.

CHAIRMAN JOHNSON. YES, THEY CAN JUST GIVE ME AN OVER OVERVIEW OF THE COMMUNITY DEVELOPMENT BLOCK GRANT AND HOW THAT HELPS CONCERNING THE HOUSING.

I'M SORRY, WHAT WAS THAT QUESTION? JUST AN OVERVIEW OF THE COMMUNITY DEVELOPMENT BLOCK GRANT. SO WHAT YOU HAVE BEFORE YOU IS THE, OUR QUARTERLY OR MONTHLY REPORTS THAT WE'RE PRESENTING TO YOU ALL, AND IT'S REALLY DESIGNED TO REFLECT OUR TIMELY EXPENDITURES AS OUTLINED IN THE

[01:35:02]

THERE ARE A LIST OF PROJECTS IN THE ATTACHMENT.

THEY RANGE EVERYWHERE FROM PUBLIC SERVICE PROJECTS TO INFRASTRUCTURE PROJECTS AS WELL AS HOUSING PROJECTS.

SO ALL OF THOSE PROJECTS ARE LISTED THERE IN THE IN THE ATTACHMENT.

THANK YOU. YOU'RE WELCOME. ALL RIGHT, ANYTHING ELSE IN K? OKAY, GREAT. NEXT ON TO N IS IN NOVEMBER. MAYOR PRO TEM.

THANK YOU, CHAIR. EXCITED TO SEE THE COMMUNITY SURVEY HERE ON NUMBER TWO.

I KNOW THAT WE'RE GOING TO BE REVIEWING THAT HERE.

HOPEFULLY PEOPLE HAVE ALREADY GIVEN THEIR SUGGESTIONS AND CHANGES, IF ANY.

BUT GOING UP AND THROUGH MAY, DOES THAT REALLY, DOES THAT START PUSHING UP AGAINST THE DEADLINE FOR MID-YEAR ADJUSTMENTS? SO FOR THE COMMUNITY SURVEY WE TYPICALLY ADMINISTER THAT BETWEEN FEBRUARY AND MAY OR MARCH AND MAY.

AND SO WE USE THE RESULTS OF THE SURVEY TO BUILD THE CITY MANAGER'S RECOMMENDED BUDGET IN AUGUST.

SO IT DOESN'T HAVE AN IMPACT ON OUR MID-YEAR ADJUSTMENTS THAT WE PRESENT TO YOU ALL IN MAY.

IS THAT YOUR QUESTION? YES, IT IS. AND I MEAN, I WOULD JUST HOPE THAT IF WE SAW A HUGE CHANGE IN THE COMMUNITY RESPONSES THAT THAT MIGHT TRIGGER US, THE CITY MANAGER OR COUNCIL MEMBERS, TO SAY, HEY, WE NEED TO, YOU KNOW, REFOCUS ON THIS OR MAYBE DROP THIS AND REALLY PAY ATTENTION TO ANOTHER ITEM.

AND THAT'S, SO, AGAIN, PUSHING IT UP AGAINST MAY, I THINK IS GIVING US A HARD TIME TO BE ABLE TO MAKE ANY CHANGES IF NEEDED.

THAT'S GREAT FEEDBACK. IN THE PAST, WE HAVE TYPICALLY TARGETED THE MAY AGENDA FOR OUR MID-YEAR ADJUSTMENTS.

WE HAVE TAKEN MID-YEAR IN JUNE. THE COMMUNITY SURVEY IS SCHEDULED TO BE PRESENTED TO CITY COUNCIL IN JUNE.

SO IF IT'S THE WILL OF THE BODY, WE CAN MAKE OUR MIDYEAR RECOMMENDATION IN JUNE.

THANK YOU. THANK YOU FOR THAT. OKAY, COLLEAGUES, THAT CONCLUDES THE BRIEFING MEMOS.

WE'RE GOING TO GO BACK NOW TO THE ORIGINAL DISCUSSION ITEMS ON THE WICK ITEM.

WE'RE GOING TO DELAY THAT UNTIL THE NEXT AGENDA FOR THIS COMMITTEE.

THAT'S ITEM C. LET'S GO INTO ITEM E. AND WE'LL SEE HOW MUCH TIME WE HAVE AFTER THAT FOR THE OTHERS.

SO ITEM E, IS BRIEFING ITEM ON REAL ESTATE PROCESS FOR SALE OF CITY PROPERTY.

DON'T PUT THAT OUT THERE. GOOD AFTERNOON COMMITTEE.

I'M JOHN JOHNSON, DIRECTOR OF FACILITIES AND REAL ESTATE, AND I'M JOINED TODAY BY MISS ASHLEY EUBANKS, THE ASSISTANT DIRECTOR OVER REAL ESTATE OPERATIONS.

SO I'M GOING TO WALK YOU THROUGH THE PRESENTATION QUICKLY. AND THEN ASHLEY'S GOING TO HELP WITH SOME QUESTIONS. SO WE'LL START ON SLIDE THREE WHICH COVERS THE TYPES OF SURPLUS PROPERTY THAT THE CITY PROCESSES. THEY INCLUDE REMNANTS THAT ARE OFTEN LEFT OVER FROM RIGHT OF WAY PROJECTS, CITY FACILITIES THAT ARE NO LONGER NEEDED OR ARE OBSOLETE, AND THEN FINALLY FACILITIES THAT ARE UNDERUTILIZED.

ALL PROPERTIES ARE SOLD IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE AND THE DALLAS CITY CODE.

ON SLIDE FOUR. ONCE DECLARED SURPLUS BY COUNCIL ACTION, PROPERTY IS SOLD VIA VARIOUS METHODS AND THOSE INCLUDE SEALED BIDS, PUBLIC AUCTION, WHICH IS THE MOST COMMON. A LICENSED REAL ESTATE BROKER.

DIRECT SALE TO THE ABUTTING PROPERTY OWNER WHEN THE PARCEL IS NOT DEVELOPABLE, OR DIRECT SALE IN EXCHANGE FOR OTHER LAND OR RIGHT OF WAY NEEDED BY THE CITY.

DIRECT SALES ARE LIMITED TO CERTAIN INSTANCES, WHICH YOU CAN SEE LISTED OUT ON SLIDE FOUR.

AS I MENTIONED, THE MOST COMMON METHOD IS BY PUBLIC AUCTION, WHICH IS HANDLED CURRENTLY BY HUDSON AND MARSHALL, OUR VENDOR. SPECIAL OR UNIQUE PROPERTIES TYPICALLY GO THROUGH A REAL ESTATE BROKER, WHICH IS CURRENTLY CBRE FOR THE CITY.

WHEN FIELD NOTES ARE REQUIRED FOR DEVELOPABLE PROPERTIES, OUR PARTNERS IN TRANSPORTATION AND PUBLIC WORKS ASSIST WITH THAT.

IT'S ALSO IMPORTANT TO NOTE THAT PRIOR TO COUNCIL ACTION FOR SURPLUS DESIGNATION.

PROPERTIES ARE ROUTED TO ALL CITY DEPARTMENTS AND EXTERNAL AGENCIES TO DETERMINE ANY OTHER PUBLIC NEED PRIOR TO DISPOSITION.

CONTINUING WITH OUR PROCESS ON SLIDE SIX, CITY CODE REQUIRES AN INDEPENDENT APPRAISAL FOR ANY PROPERTY THAT IS ESTIMATED AT $100,000 OR MORE IN VALUE.

THE CITY DOES EMPLOY AND USE A RESERVE FOR ALL PROPERTIES THAT ARE SOLD AT AUCTION.

AND THEN FOLLOWING THE SURPLUS DESIGNATION. AS I MENTIONED, THE PROPERTY IS ADVERTISED AND OR LISTED FOR SALE IN ACCORDANCE WITH STATE LAW.

[01:40:06]

SO IF A PROPERTY IS BEING SOLD AT PUBLIC AUCTION, STATE LAW REQUIRES PUBLISHING NOTICE AT LEAST 20 DAYS PRIOR TO THE AUCTION DATE.

IT ALSO REQUIRES A NOTICE OF SALE, PUBLISHED WEEKLY FOR THREE WEEKS CONSECUTIVELY BEFORE THE AUCTION OCCURS.

IF THE RESERVE IS MET, THE PURCHASE AND SALE AGREEMENT IS EXECUTED AND USUALLY CLOSING OCCURS WITHIN 60 OR SO DAYS.

IF THE RESERVE IS NOT MET, THE CITY MAY CHOOSE TO SELL TO THE HIGHEST BIDDER, NOT TO SELL OR TO RE-ADVERTISE AT A LATER DATE.

IF WE ARE SELLING THROUGH A BROKER, A SALE CAN OCCUR AFTER THE PROPERTY HAS BEEN LISTED FOR 30 DAYS AND A READY, ABLE AND WILLING BUYER SUBMITS THE HIGHEST CASH OFFER.

AND IN THAT INSTANCE, CLOSING IS BASED ON THE NEGOTIATED TERMS. NEXT SLIDE. SO WHAT DO WE DO WITH THE PROCEEDS AFTER THE SALE? PER THE ORDINANCE THAT WAS ADOPTED IN 1977, AFTER CLOSING AND FUNDS ARE DEPOSITED, ANY COSTS FOR LEGAL DESCRIPTIONS, APPRAISALS AND OTHER ADMIN EXPENSES ARE APPROPRIATELY REIMBURSED.

THEN REMAINING PROCEEDS ARE DEPOSITED TO THE GCR OR THE GENERAL CAPITAL RESERVE, AND THEY'RE USED AS A FUNDING SOURCE FOR CAPITAL IMPROVEMENTS, WITH A CAVEAT THAT IF THE PROPERTY BELONGED TO AN ENTERPRISE, PROCEEDS ARE DEPOSITED BACK TO THE APPROPRIATE ENTERPRISE AND NOT THE GCR.

NEXT SLIDE. SO SHIFTING QUICKLY TO END OUR BRIEFING TO THE NEXT STEPS AS PART OF ONGOING REAL ESTATE PROCESS IMPROVEMENTS, CBRE IS CURRENTLY REVIEWING THE CITY'S POLICIES AND PROCEDURES FOR ACQUISITIONS AND DISPOSITIONS.

THEY WILL BE MAKING RECOMMENDATIONS TO IMPROVE OUR GOVERNANCE STRUCTURE, ENSURE INDUSTRY BEST PRACTICES ARE REFLECTED IN CITY POLICY AND PROCEDURE, AND TO EVALUATE REAL ESTATE STAFFING IN RELATION TO THE WORKLOAD AND CHARGE.

WE DO LOOK FORWARD TO BRINGING THOSE TO THE COMMITTEE ALONG WITH THEIR RECOMMENDATIONS, WHICH ARE ANTICIPATED IN MID TO LATE SPRING.

AND THAT CONCLUDES OUR BRIEFING. OKAY, VICE CHAIR IS GOING TO TAKE OVER FOR JUST A SECOND.

I'LL LOOK TO MY RIGHT. DEPUTY MAYOR PRO TEM. THANK YOU.

ON PAGE FOUR, DEVELOPER WITH THE REINVESTMENT ZONE UNDER AN APPROVED PROJECT PLAN TIF, CAN YOU ELABORATE A LITTLE BIT MORE ON WHAT THAT MEANS? GOOD AFTERNOON, ASHLEY EUBANKS. COUNCIL MEMBER TYPICALLY WE WORK CLOSELY WITH THE OFFICE OF ECONOMIC DEVELOPMENT.

SHOULD THERE BE A DEVELOPER WHO COMES IN PLAY, WHO PRESENTS A DEVELOPMENT TO THE DEPARTMENT AS WELL AS THEY HAVE TO GO THROUGH THE RESPECTIVE TIF BOARD TO GET THAT PROJECT APPROVED, A DIRECT SALE IS ALLOWABLE PURSUANT TO STATE LAW.

OKAY, AND I'M GLAD YOU MENTIONED STATE LAW. SO LAWS ON THE DIRECT SALE THERE'S STILL THE MINIMUMS AND THERE'S STILL, OR CAN WE SELL AT ANY PRICE? IT HAS TO BE SOLD FOR FAIR MARKET VALUE.

OKAY. OKAY. AND THEN LASTLY ON THE NEXT STEPS WHEN CBRE IS DUE BACK, THEIR RECOMMENDATIONS, DO WE HAVE A TIME FRAME FOR THAT? SO WE DO ANTICIPATE THEM IN MID TO LATE SPRING.

OKAY. AND LAST THING IS WHEN DO WE EXPECT A UPDATE ON THE PROPERTIES THAT WE HAVE EXPLORED TO PUT ON THE LIST FOR POSSIBLE SURPLUS PROPERTY? ARE WE GOING TO WAIT UNTIL THIS REPORT AND RECOMMENDATIONS COME BACK, WHERE WE SIMULTANEOUSLY PROCEEDING WITH PUTTING SOME OF THOSE PROPERTIES ON THE MARKET? SO I BELIEVE THAT SOME OF THE PROPERTIES THAT WERE ORIGINALLY IDENTIFIED WERE MOVED FORWARD, AND THE REMAINING WERE PLACED ON HOLD UNTIL THIS PROCESS WAS COMPLETED AND THE REAL ESTATE MASTER PLAN IS COMPLETED.

BUT IF CITY MANAGER'S OFFICE HAS A DIFFERENT PATHWAY THAT.

DONZELL GIPSON, CITY MANAGER'S OFFICE. EXCELLENT QUESTION. WE ARE PROCEEDING AS BUSINESS AS USUAL.

WE WILL BRING ITEMS TO CITY COUNCIL ON PROPERTY THAT WE BELIEVE IS SURPLUS, AND THAT WE SHOULD DIVEST OF AND ALLOW COUNCIL TO VET AND ANSWER ANY QUESTIONS ABOUT THAT PROPERTY. TYPICALLY IN EXECUTIVE SESSION WHERE WE'LL TALK ABOUT A RESERVE IF ONE NEEDS TO HAVE A DISCUSSION NEEDS TO BE HAD THERE, BUT THERE'S NO OTHER RESTRICTIONS, RIGHT. THIS THIS BOARD, THE COUNCIL CAN STILL DECIDE TO TAKE ACTION TO SELL ANY ASSETS.

DEPUTY MAYOR PRO TEM. THANK YOU, SO LET'S TALK ABOUT THIS SURPLUS THING.

BECAUSE ONE THING THAT I JUST DON'T LOVE IS THAT WE HAVE TO DECLARE SOMETHING SURPLUS BEFORE WE CAN JUMP INTO THESE STEPS.

BUT I FEEL LIKE WITH THE WAY A CITY EBBS AND FLOWS AND SOME NEIGHBORHOODS KIND OF FADE BACK AND OTHERS BECOME THE HOT PROPERTY AND THINGS MOVE THAT

[01:45:09]

WE HAVE TO FIRST GO THROUGH THIS STEP OF DECLARING IT SURPLUS, WHICH IS KIND OF A BIG STEP TO TAKE.

SO CAN YOU TELL IS THAT A STATE LAW? IS THAT JUST A CITY POLICY? I MEAN, HOW WOULD WE BE ABLE TO AFFECT THAT? CAN I TAKE A STAB AT THAT ONE? I'LL LET JOHN AND ASHLEY RESPOND. I WANT YOU TO THINK ABOUT IT ON THE INTAKE PORTION.

WE SHOULD HAVE BOUGHT A PIECE OF PROPERTY WITH THE PLAN.

SO WE DON'T SPEND A LOT OF TIME BUYING SPECULATIVE PROPERTY WITH TAXPAYER MONEY, RIGHT.

OUR TYPICAL ACQUISITIONS AND ASHLEY CAN KIND OF FILTER IN ARE THINGS THAT WE BUY FOR THE BOND PROGRAM.

WE DO EMINENT DOMAIN ACQUISITIONS FOR STUFF LIKE OUR WATER AND WASTEWATER LINES, THINGS OF THAT NATURE FOR THE WATER DEPARTMENT AND OTHER UTILITIES, TRANSPORTATION WHEN WE'RE BUYING RIGHT OF WAY.

AND SO WE SHOULD HAVE AN INTENDED PURPOSE BEHIND WHATEVER IT IS THAT WE PURCHASE.

AND IF AT SOME POINT THAT FALLS THROUGH OR PLANS CHANGE, THAT'S WHEN STAFF MOVES FORWARD AND SAYS, YOU KNOW WHAT THE ORIGINAL INTENDED PURPOSE OF THIS PROPERTY NO LONGER EXISTS, AND THEN IT'S DEEMED BY WHICHEVER AGENCY IS THE CONTROLLING DEPARTMENT THAT IT'S SURPLUS. THERE'S A ROUTING PROCESS THAT THEY MADE MENTION OF THAT FLOWS THROUGH ALL OTHER DEPARTMENTS AND OTHER GOVERNMENTAL ENTITIES TO DETERMINE IF THERE'S STILL POTENTIALLY A SECONDARY NEED THAT MAY OR MAY NOT ALIGN WITH WHAT THE ORIGINAL PURPOSE AND INTENT IN THE PURCHASE WAS.

AT THAT POINT. WE BRING IT TO CITY COUNCIL AND SAY STAFF HAS NO BUDGET, NO BOND PROGRAM, NO FUNDING OPPORTUNITIES, NO CONNECTIVITY ON ANYTHING WHICH TO DO WITH THIS PROPERTY.

AND BECAUSE OF THAT, WE DON'T WANT IT TO SIT ON OUR SIDE OF THE BOOKS.

WE WANT THAT PROPERTY TO GO BACK ON THE TAX ROLLS AND LET THE COMMUNITY DECIDE HOW TO BEST BRING THAT IN.

YOU GUYS HAVE YOUR ZONING PROCESSES AND OTHER THINGS THAT CAN HELP FACILITATE GROWTH AND DEVELOPMENT OF THE CITY ONCE WE'VE DIVESTED OF THE PROPERTY.

WELL, THAT'S ANOTHER ISSUE BECAUSE THEN, YOU KNOW, YOU DECLARE IT SURPLUS.

THEN IT GETS ROUTED TO EVERYBODY. SO THAT DOESN'T STOP ANYBODY FROM RAISING THEIR HAND AND SAY, OH, I'D LIKE TO USE IT FOR THIS OR THAT, OR TXDOT OR DART OR DISD OR WHOEVER.

AND YEAH, THEY MAY HAVE A USE FOR IT, BUT IS IT REALLY THE HIGHEST AND BEST USE THAT WE WOULD WANT? AND IS IT SOMETHING THAT, WHAT THEY WANT TO USE IT FOR, WE COULD IDENTIFY ANOTHER PIECE OF PROPERTY THAT MIGHT BE MORE SUITABLE AND NOT GET IN THE WAY OF SOME OTHER POTENTIAL BENEFIT? AND SO, YOU KNOW, I JUST I FEEL LIKE THIS IS A LITTLE BIT ANTIQUATED IN HOW WE LIMIT OURSELVES AROUND THIS. AND I WOULD LOVE TO SEE US BE ABLE TO OPEN IT UP MORE TO REALLY THINKING ABOUT THAT PIECE OF LAND, REGARDLESS OF WHAT IT MIGHT HAVE BEEN ACQUIRED FOR 50, 60 YEARS AGO.

BECAUSE THAT CHANGES TO AND REALLY LOOK AT IT IN THE SCOPE OF A BIGGER PICTURE OF WHAT COULD IT BE.

DOES IT NEED TO GO PRIVATE BACK ON THE TAX ROLLS? IS IT REALLY SOLVING A PROBLEM WE HAVE? WE CAN HELP THE SCHOOL DISTRICT AND PARTNER.

AND YOU KNOW, THERE ARE LOTS OF THINGS THEY HAVE THAT WE MIGHT ALSO WANT.

SO, YOU KNOW, IT'S KIND OF OUR BARGAINING CHIP IN A WAY TOO.

SO I WOULD JUST LIKE TO SEE US BROADEN AND NOT LIMIT OURSELVES IN THE WAY WE CAN LOOK AT PROPERTY THAT THE CITY OWNS.

ONE OTHER THING THAT HAS COME UP, AND THIS MAY BE STATE LAW ABOUT WHEN WE'RE SELLING, WE CAN'T RESTRICT.

I MEAN, I GUESS WE COULD LOOK AT LAND USE, WE CAN REZONE IT OUR OURSELVES.

I MEAN, WE COULD GO THROUGH THE PROCESS, BUT WE CAN'T NECESSARILY RESTRICT BUYERS.

I MEAN, WHEN YOU'RE IN AN AUCTION, YOU CAN'T DO THAT.

BUT IF YOU ARE IN ANOTHER SITUATION WHERE WE HAVE MORE GIVE AND TAKE ABOUT WHO WE MIGHT BE ABLE TO SELL TO OR WHAT THEIR INTENDED PURPOSE OF THE PROPERTY IS, BECAUSE I KNOW THAT THAT'S BEEN A CONCERN THAT'S BEEN RAISED, IS THAT WE KIND OF LOSE CONTROL OVER IT.

YOU KNOW, FURTHER SUPPORTING MY FIRST POINT, YOU KNOW, IS THAT POSSIBLE? IS THAT A STATE LAW LIMITATION OR IS THAT A POLICY LIMITATION? I'LL LET ASHLEY HELP ME WITH THIS ONE. I KNOW IN PARTNERSHIPS WITH ECONOMIC DEVELOPMENT.

WE'VE DONE RFP TYPE SITUATIONS WHERE THERE'S KIND OF A PRIVATE DEVELOPMENT SPIN ON THE CITY THAT WE WANT TO TAKE ON A PIECE OF PROPERTY.

ASHLEY, CAN YOU PIGGYBACK OFF OF THAT AND KIND OF SUPPORT THAT CONCLUSION? SURE.

I HAVE SEEN IN PREVIOUS TRANSACTIONS, AS YOU MENTIONED, USE RESTRICTIONS, HOWEVER, ARE LIMITING WHO WE SELL IT TO.

[01:50:02]

OKAY, I UNDERSTAND THAT. AND THEN ANOTHER ASPECT I WOULD WANT CBRE TO LOOK AT IS ON RESERVES, BECAUSE WE HAVE A POLICY ABOUT RESERVES ON SOME PIECES OF PROPERTY.

IT SEEMED REALLY LOW. I MEAN BUT WE'RE DOING IT BECAUSE THAT'S THE POLICY.

AND SO WE NEED MORE FLEXIBILITY ON THAT TO BE ABLE TO SAY THIS IS A PROPERTY IN A HOT AIR.

WE MAY NOT WANT TO TAKE SOMETHING LOWER THAN WHAT WE BOUGHT IT FOR, OR I JUST I WANT US TO BE AS RESPONSIVE AS POSSIBLE, AS IF WE WERE A PRIVATE ENTITY, TO BE ABLE TO GO IN AND BE COMPETITIVE AND GET THE BEST DEAL, OR AT LEAST KNOW WHAT THE BEST USE AND THE BEST DEAL WE COULD GET FOR THAT USE WOULD BE.

DEPUTY MAYOR PRO TEM, I LOVE WHAT YOU JUST SAID, AND IT WAS SOMETHING I WAS SHARING WITH COUNCILMAN ROTH IN AN OFFLINE CONVERSATION THAT WE HAD NOT SO LONG AGO. IT'S ONLINE NOW. WE'VE BEEN TALKING, IT'S ONLINE NOW.

WE'VE BEEN TALKING MORE IN DEPTH ABOUT REAL ESTATE WITH THE COUNCIL THAN WE EVER HAVE BEFORE.

THERE WERE A LOT OF TRANSACTIONS AND THINGS THAT WE PROCESSED THAT WOULD HAVE NEVER MAYBE HAD A GRAND DEBATE, AS WE'RE HAVING NOW. AND WHAT I WANT TO SHARE WITH YOU, THE RESERVE THAT WE'RE TALKING ABOUT, YOU GUYS, IT'S THIS BODY THAT CAN DICTATE OR HELP US SERVE WHATEVER THE BEST INTEREST IS AS IT RELATES TO WHATEVER THE RESERVE IS, WHAT WE'VE SHARED IN EXECUTIVE SESSION. AND WE SHOULDN'T GO INTO ANY DETAIL ABOUT THE RESERVE AMOUNT BECAUSE WE DON'T WANT TO SHOW OUR CARDS OUT IN PUBLIC.

BUT WE'VE HAD A TRADITION, RIGHT? A PROTOCOL THAT WE'VE USED THAT WAS, YOU KNOW, AS FAR AS WE WERE CONCERNED, BLESSED BY THE COUNCIL AT SOME FUTURE, SOME PAST COUNCIL, EXCUSE ME.

PAST COUNCIL APPROVED IT AND WE'VE LEFT THAT IN PLACE.

MEANING TO SAY THAT IF THE NEW COUNCIL, THE EXISTING COUNCIL WANTS TO CHANGE THAT WHICH WE'RE HEARING NOW, AND WE'VE HAD DISCUSSIONS IN EXECUTIVE SESSION ABOUT AS MUCH, WE'LL MODIFY THE RESERVE AMOUNT ACCORDINGLY.

YEAH, THE ONUS RIGHT NOW IS ON US TO GO, HEY, WE'RE SELLING THIS PROPERTY AND WE NEED TO TALK ABOUT WHAT THAT RESERVE IS, AND MAYBE WE SHOULDN'T HAVE THAT RESERVE. SO INSTEAD IT'S JUST, YOU KNOW, CHURNING TOWARD A FINISH LINE WITHOUT THAT CHECKPOINT.

SO UNLESS WE CATCH IT. WELL, THE CHECK, I HEAR YOU ON THAT.

AND I WOULD SUGGEST TO YOU THAT THE CHECKPOINT IS THE ACTUAL ITEM AUTHORIZING SURPLUS THAT WE AT ANY TIME CAN GO INTO EXECUTIVE SESSION ON IF THERE'S AN INTEREST ON COUNCIL TO DO SOMETHING RATHER THAN WHAT OUR NORMAL STANDARD PROTOCOL WOULD BE.

SO WHEN YOU SEE AN AGENDA ITEM SHOW UP UNDER FACILITIES AND REAL ESTATE MANAGEMENT, THAT'S DECLARING SOMETHING SURPLUS.

THAT'S THE OPPORTUNITY FOR COUNCIL TO FLAG AND THEN ASK QUESTIONS.

GOD BLESS YOU. AND ASK QUESTIONS RELATIVE TO THAT.

AND I'M SPEAKING FOR MYSELF, BUT I THINK I'VE GOTTEN A SENTIMENT FROM FOLKS, AND CERTAINLY FEEL FREE TO JOIN ME, IS THAT I WOULD LIKE TO SEE OUR PHILOSOPHY NOT BE, OH, HEY, WE HAVE TO RAISE THAT, BUT RATHER HAVE STAFF KNOW WE NEED TO HAVE A CONVERSATION ABOUT RESERVES, BECAUSE WE NEED TO BE SURE THAT WE ARE REALLY LOOKING AT THIS AND WE'RE COMFORTABLE WITH WHAT WE TYPICALLY DO, OR THIS IS ONE THAT WE SHOULD NOT DO, THAT WE NEED TO MAXIMIZE IT OR NOT HAVE A LOWER RESERVE, BUT RATHER GO TO THE MARKET AND EXPECT TO GET WHAT THE MARKET WOULD YIELD.

SO I WOULD ASK THAT I WOULD HOPE OTHERS WOULD JOIN ME.

I HAVE ONE MORE POINT. IF I COULD JUST JUMP IN WITH THAT. OKAY, THE LAST ONE IS THAT AND AGAIN, IN POLICY, I THINK WE HAVE WHEN WE DECLARE IT SURPLUS, WE GET WHATEVER.

IF IT MEETS THE RESERVE OR WHATEVER THE CRITERIA IS, THEN THE CITY MANAGER CAN JUST SELL IT.

AND I KNOW WE'VE TAKEN STEPS RECENTLY TO SAY NO, IT NEEDS TO COME BACK TO COUNCIL SO WE CAN REVIEW WHAT HAS BEEN YIELDED IN THE MARKETPLACE AND MAKE SOME DETERMINATIONS THERE. AND SO THAT'S ANOTHER ONE WHERE I MAY WANT TO SEE US EXPLORE.

IS IT A DOLLAR VALUE THRESHOLD? WHAT IS WHAT ARE THE CRITERIA AROUND THIS WHERE COUNCIL WOULD SAY, NO, IT DOES NOT NEED TO JUST GO TO THE CITY MANAGER TO AUTOMATICALLY DISPOSE OF.

WE MIGHT HAVE WANTED TO TAKE A LOOK AT WHAT CAME BACK AND WHAT THOSE, YOU KNOW, WHAT WAS OFFERED AND, AND THAT SORT OF THING. SO THAT'S ONE MORE THING I WOULD ASK FOR THEM TO.

WELL, I DON'T KNOW IF THAT'S REALLY FOR THEM TO TAKE A LOOK AT, THAT MAY BE MORE FOR US TO TAKE A LOOK AT.

OKAY. THANK YOU. ARE YOU TAKING IT BACK, CHAIR? I DON'T KNOW WHAT YOU HAVE. OH, YOU LET ME HAVE IT.

OKAY. ALL RIGHT, WELL, WE'LL GO TO MY LEFT. AND COMMENTS? CHAIR JOHNSON. GO AHEAD. YEAH. SORRY, COUNCILMEMBER ROTH, I DIDN'T.

THANK YOU. ENOUGH, I'M AN INTERLOPER. THANK YOU FOR ALLOWING ME TO JOIN, THE HONORARY MEMBER.

THANK YOU. JUST A COUPLE QUESTIONS. IT SOUNDS LIKE TO ME THAT AND AGAIN, I'M TRYING TO LEARN THIS PROCESS AND UNDERSTAND IT.

THE RESERVE SITUATION IS REALLY JUST APPLICABLE FOR AUCTION PROPERTIES, IS THAT CORRECT, OR IS THAT OR IS THAT REQUIRED ON ALL SALES? CURRENTLY, THE WAY THAT WE PRESENT THE RESOLUTION, IT IS FOR AUCTION PROPERTIES.

OKAY. AND THE APPRAISAL PROCESS IS THAT'S REQUIRED FOR ALL PROPERTIES?

[01:55:04]

CORRECT, SO AS MENTIONED IN THE BRIEFING DALLAS CITY CODE PROVIDES THAT ANY PROPERTY THAT WE ESTIMATE TO BE EXCEEDING 100K, WE WILL GET AN INDEPENDENT APPRAISAL AND THAT WILL HELP US BETTER LOOK AT WHAT THE VALUE OF THE PROPERTY IS, AS WELL AS WHAT WE WILL BE SETTING THE RESERVE AMOUNT AT.

HAVE WE HISTORICALLY BEEN GETTING THOSE APPRAISALS? YES, SIR. AND HOW DO WE ACCESS? ARE THOSE SOMETHING THAT WE HAVE TO REQUEST OR ARE THEY PART OF THE PRESENTATIONS, IF YOU. AND AGAIN MAYBE THEY'VE BEEN AND I JUST I JUST IN HISTORICALLY I JUST AM WONDERING WHEN DO THE, WHEN DO WE SEE THAT THAT INFORMATION? SO TYPICALLY WE WILL SHARE THOSE IN AN EXECUTIVE SESSION TYPE OF SETTING.

AND WHAT IS SORT OF THE LIMITATIONS ON THE STATE LAW, LOCAL GOVERNMENT CODE IN DALLAS CITY CODE. AND AGAIN, I'M NOT LOOKING AT THE DETAILS OF THE CODE ITSELF, BUT IS THERE IS THERE CERTAIN SIGNIFICANT LIMITATIONS ON HOW WE NEED TO MARKET THIS, WHAT INFORMATION IS AVAILABLE TO THE PUBLIC? WHAT ARE THE SORT OF THE GUIDELINES THAT WE'RE THAT WE'RE NEEDING TO, THE RULES THAT WE'RE NEEDING TO PLAY WITH WITHIN TO HELP MARKET THESE PROPERTIES PROPERLY? SURE, THE STATE LAW MORE SO GUIDES US HOW WE ARE TO IN REGARDS TO TIMING AND THE REQUIREMENTS HOW WE ARE TO ADVERTISE IN THE LOCAL THE PAPER AND IN REGARDS TO HOW WE'RE TO PUBLISH IT.

SO IT DOESN'T NECESSARILY GIVE US ANY MORE THAN THAT.

OKAY. IT'S REALLY FOR PUBLIC DISCLOSURE AND IT'S FOR MAKING SURE THAT THERE'S A GENERALLY.

AND ARE WE REALLY DOING A LOT OF PUBLIC AUCTIONS? YES. WE TYPICALLY TRY TO HAVE 2 TO 3 AUCTIONS PER YEAR.

IS, ARE THOSE IN BULK SALES OR? THEY'RE BULK SALES, SO YOU COULD SEE ANYWHERE FROM, YOU KNOW, 10 TO 12 PROPERTIES PER SALE. OKAY. AND I THINK IT'S A GOOD IDEA TO ROUTE THESE PROPERTIES THROUGH THE DEPARTMENTS, BECAUSE IF THERE IS A NEED FOR THE USING AND TO GET A FEEDBACK FROM DEPARTMENTS, I THINK IT'S VALUABLE AND I APPLAUD THAT. THAT IS PART OF THE PROCESS.

I THINK IT'S GOOD. ANYWAY, THOSE THOSE WERE, THOSE ARE SORT OF MY SUGGESTIONS.

THE SKILLMAN ROAD LIBRARY IS ACTUALLY IN THE AUCTION PROCESS.

I DRIVE BY THAT EVERY MORNING AND THINK IT'S GOING TO BE GONE.

OKAY, I ACTUALLY HAVE A QUESTION. AND THIS GOES TO SLIDE EIGHT, AND THE QUESTION OF WHERE THE PROCEEDS FROM THE SALE OF PROPERTY CAN GO.

I'M GOING TO ADVOCATE FOR THE UNFUNDED PENSION AMOUNT.

AND I KNOW THAT'S NOT WHAT THE ORDINANCE SAYS.

BUT MY QUESTION IS IS IT POSSIBLE TO AMEND THE ORDINANCE THAT UNTIL THE PENSION REACHES SOME PERCENTAGE OF FUNDING, THAT A CERTAIN PERCENTAGE OR ALL OF THE PROCEEDS, HOWEVER, THE COUNCIL DECIDES THAT WOULD HAVE TO BE OBVIOUSLY WORKED OUT.

BUT IF THE A PORTION OF THE PROCEEDS COULD GO TO HELP WITH THAT OUTSTANDING OBLIGATION.

YEAH, THANK YOU. AND IF I MAY ANSWER THAT. JACK GARLAND, CHIEF FINANCIAL OFFICER.

THANK YOU VERY MUCH, COUNCIL MEMBER STEWART. THIS WAS ACTUALLY SOMETHING THAT WE DID TALK TO THIS COMMITTEE ABOUT IN THE PAST.

WE'VE SPOKEN WITH THE PENSION AD HOC COMMITTEE IN THE PAST ABOUT THIS.

WE HAD ACTUALLY TAKEN THE ORDINANCE TO COUNCIL FOR CONSIDERATION, AND THEY DID WANT TO SEND IT BACK TO COMMITTEE FOR MORE DISCUSSION.

SO WE DO HAVE IT ON OUR FORECAST TO BRING THAT BEFORE THIS BODY TO HAVE ADDITIONAL CONVERSATIONS ABOUT.

IT'S BEEN SEVERAL MONTHS SINCE IT WENT TO COUNCIL, AND IT NEEDS TO COME BACK TO THIS COMMITTEE FOR ADDITIONAL DISCUSSION OF WHAT THAT POLICY IS GOING TO LOOK LIKE. SO IT IS ON OUR FORECAST TO GET IT BACK BEFORE Y'ALL SOON.

OKAY, WOULD IT ALSO GO TO THE AD HOC COMMITTEE ON PENSIONS? SO IT WAS ACTUALLY, I BELIEVE DEFERRED BACK TO THIS COMMITTEE SINCE THAT'S WHERE THE RECOMMENDATION CAME FROM.

SO IF YOU WOULD LIKE AS CHAIR OF THAT COMMITTEE, IF YOU WOULD LIKE TO HAVE MORE CONVERSATIONS, WE CAN SURE HAVE A MEETING OF YOUR COMMITTEE AS WELL.

IT JUST WOULD GET THIS INFORMATION CIRCULATED A LITTLE BIT WIDER.

BECAUSE I THINK THERE'S A LOT TO DISCUSS AND TO CONSIDER AND, BUT I THINK IT'S CERTAINLY SOMETHING TO GIVE VERY SERIOUS CONSIDERATION TO AT THIS POINT.

I'LL BE HAPPY TO BRING IT TO BOTH COMMITTEES. OKAY.

[02:00:01]

ALL RIGHT, I THINK WE'RE DONE WITH THAT ITEM, NOBODY ELSE.

MR. ROTH, GO AHEAD. SORRY, JUST ONE LAST QUESTION.

ON THE NEXT STEPS, YOU BASICALLY DISCUSSED THAT WE WOULD BE GETTING A REVIEW BY CBRE FOR THE ACQUISITION DISPOSITION PROCESS. IS THERE ANY SORT OF PROJECTED TIMELINE ON GETTING SORT OF A STRATEGIC PLAN OR, OR INVENTORY AND BASIC SORT OF BETTER HANDLE ON WHAT WE REALLY HAVE OUT OF THE 500 PROPERTIES? SO TWO SEPARATE QUESTIONS. THE CBRE FOR CONSULTANCY WORK IS EXPECTED IN MID TO LATE SPRING, WHICH WILL BE BRINGING BACK TO THE COMMITTEE TO BRIEF ON THEIR RECOMMENDATIONS. THEN CONCURRENTLY, WE HAVE A SOLICITATION THAT WE'RE DEVELOPING FOR THE REAL ESTATE MASTER PLAN, THE LARGER STRATEGIC ONE.

SO IT WAS A TWO STEP, WE HIRED A CONSULTANT TO ENSURE THAT WE HAVE INDUSTRY BEST PRACTICES, AND THAT WE ARE GLEANING THE BEST FROM OUR CONTEMPORARY ORGANIZATIONS TO INCLUDE IN OUR SPECIFICATIONS.

SO THAT'S CURRENTLY IN PROCESS RIGHT NOW. AND THEN THAT WILL GO OUT AND THAT WILL PROVIDE US WITH THE INFORMATION THAT YOU'RE EXPECTING. I WOULD LOOK FOR THAT PROBABLY LATE FALL.

ALL RIGHT. ANYBODY ELSE? GREAT. THANK YOU. COLLEAGUES.

WE ARE JUST TO KIND OF WRAP THIS UP TODAY. ITEM F, WHICH IS THE FINANCIAL REPORTING RELATED TO HFC, PFC AND TAX IMPACTS, AND ITEM C, WHICH IS THE ITEM THAT CAME FROM THE CHAIRMAN JOHNSON'S COMMITTEE ON REVIEWING WIC IS AN AUDIT ITEM. WE'RE GOING TO DELAY THOSE AND BRING THOSE BACK, PROBABLY NOT IN FEBRUARY FOR OUR NEXT MEETING, BECAUSE THAT'S GOING TO BE THE CITY HALL REAL ESTATE DISCUSSION.

I THINK IT'S GOING TO BE PRETTY BUSY. SO IT WILL PROBABLY BE MARCH.

AND THERE'S I'VE TALKED TO JACK AND THERE'S NO NEED TO DO ITEM G WHICH IS THE REPROGRAMING AND EXTENSIONS FOR THE EXPENDITURES OF CDBG FUNDS. BUT IF YOU ALL HAVE QUESTIONS ABOUT THAT, I'M SURE STAFF'S HAPPY TO MEET WITH COUNCIL MEMBERS INDIVIDUALLY.

AND WITH THAT BEING SAID, THIS MEETING OF THE FINANCE COMMITTEE IS ADJOURNED.

THANK YOU. TWO HOURS AND SIX MINUTES.

* This transcript was compiled from uncorrected Closed Captioning.