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[ Economic Development on April 6, 2026.]
APRIL 6TH. OUR FIRST ITEM OF BUSINESS IS APPROVAL OF THE MARCH 2ND, 2026 EDC MEETING MINUTES.IS THERE A MOTION? SECOND. ANY DISCUSSION? HEARING NONE.
ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. MOTION APPROVED.
WELCOME, DEPUTY DIRECTOR ANDREEA UDREA. THANK YOU SO MUCH, CHAIR.
GOOD AFTERNOON ECONOMIC DEVELOPMENT COMMITTEE.
I'M GOING TO GIVE A LITTLE REFRESHER. JUST A SECOND.
I THINK I'M READY TO GO. SO WE CAN GO TO THE NEXT SLIDE.
JUST A LITTLE PRESENTATION OVERVIEW. THE PURPOSE AND BACKGROUND AUTHORIZED HEARING.
WE CAN GO TO. IT DOESN'T THE. OH, OKAY. OKAY.
A LITTLE BIT. PERFECT. THANK YOU. SO I'M ANDREEA, DEPUTY DIRECTOR, PLANNING AND ZONING WITH PLANNING AND DEVELOPMENT. I'M HERE TO GIVE AN UPDATE OR A FOLLOW UP AFTER A PRESENTATION WE GAVE ABOUT AUTHORIZED HEARINGS BACK TO ECONOMIC DEVELOPMENT COMMITTEE BACK IN DECEMBER.
THE PRESENTATION IS GOING TO HAVE PURPOSE AND BACKGROUND.
THE LIST OF THE AUTHORIZED HEARINGS, SOME PROCESS IMPROVEMENT OPTIONS AND NEXT STEPS.
NEXT SLIDE PLEASE. THIS NEXT SLIDE. THESE ARE FOLLOW UP.
IS STEMMED FROM A, A MEMO FROM COUNCIL MEMBER WEST AND RIDLEY THAT WAS DATED DECEMBER 3RD.
WE HAD A PRESENTATION TO ECONOMIC DEVELOPMENT COMMITTEE IN DECEMBER.
THE MEMO REQUIRED OR ASKED STAFF TO COME IN FRONT OF THE ECONOMIC DEVELOPMENT COMMITTEE TO EXPLAIN THE PROCESS FOR AUTHORIZED HEARINGS, TO SUMMARIZE THE BACKLOG AND UPDATE ON A TIMELINE FOR PENDING AUTHORIZED HEARINGS.
NEXT SLIDE PLEASE. THIS IS GOING TO BE JUST A BRIEF, BRIEF FOLLOW UP.
AFTER WE HAD THAT CONVERSATION I ONLY HAVE A FEW SLIDES.
SO THE FIRST ONE JUST TO REFRESH OUR MEMORY, OUR MEMORY OF HOW MANY AUTHORIZED HEARINGS WE HAVE TO.
THE DAY AUTHORIZED OR IN THE WORKS WITH STAFF.
THE PRESENTATION ALSO INCLUDES A LINK TO THE JOURNAL WEBSITE.
WE'RE TALKING ABOUT 18 OF THEM. NEXT SLIDE PLEASE.
IT'S AN INTERACTIVE MAP. IF WE ZOOM IN, WE CAN FIND ALL THE INFORMATION LIKE THE CURRENT ZONING ON THE MAP WHEN ALL THE INFORMATION ABOUT AUTHORIZED HEARING AS WELL. I AM HAPPY TO REPORT.
NEXT SLIDE. AND AS THIS SLIDES ANNOUNCED TOO, SO I HAVE THE GOOD NEWS.
I WOULD SAY ALMOST ALL 18 AUTHORIZED HEARINGS ARE CURRENTLY IN THE WORKS WITH STAFF SINCE DECEMBER.
WE REALLOCATED AND WE REORGANIZED THE TEAMS AND THE DEPARTMENT.
WE WERE ABLE TO FIND A LEAD PLANNER FOR EACH OF THE AUTHORIZED HEARINGS.
WE HAVE TWO OF THEM THAT ARE ALREADY STARTED, AS YOU KNOW.
AND THEN WE HAVE SINGLETON MORELAND THAT IS DEEP IN THE WORKS WITH THE COMMUNITY.
BUT THE REST THAT YOU SEE IN LIGHT GREEN, WE ALREADY MET WITH COUNCIL MEMBERS AND STAFF IS CURRENTLY IN RESEARCH WHICH IS THE FIRST PHASE. THEY ALL HAVE ALLOCATED STAFF.
JUST TO GIVE YOU A LITTLE BIT OF AN IDEA OF THE EFFORT THAT THIS TAKES.
WE HAVE AN AUTHORIZED HIRING TEAM THAT IS SIX TEAM MEMBERS.
WE HAVE A NEIGHBORHOOD PLANNING TEAM THAT IS FOUR STAFF MEMBERS.
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WE ALLOCATED STAFF FROM THE REZONING TEAM, FIVE OF THEM.WE'RE ALSO GOING TO HAVE MAPPING AND DATA TEAM TO ASSIST WITH RESOURCES.
SO IN TOTAL, THIS EFFORT WILL TAKE 22 TEAM MEMBERS FROM FIVE TEAMS. THIS NOT INCLUDING CITY ATTORNEY'S OFFICE AND ADMIN.
BUT AS I SAID, THE GOOD NEWS IS THAT THESE ARE ALLOCATED ARE ASSIGNED TO STAFF AND READY TO GO.
NEXT SLIDE PLEASE. NEXT SLIDE IS THE CAUTIOUSNESS THAT COMES WITH THIS GREAT NEWS.
THIS IS MINIMUM. AND IN ADDITION TO THESE, WE HAVE NEWSPAPER NOTIFICATION REQUIREMENTS, PROBABLY OR POTENTIALLY BASED ON OUR ASSESSMENT, SB929 POTENTIAL NON-CONFORMING CONFORMITY, CONFORMITY NOTIFICATIONS.
AND IT MAY HAPPEN THAT SOMEBODY MAY POSTPONE IN TOTAL OF, OF THE 18 AUTHORIZED HEARINGS, I WOULD SAY IT'S ALMOST 17 THOUSAND ACRES, MORE THAN 22,000 PROPERTIES.
THERE ARE COSTS ASSOCIATED WITH THESE NOTIFICATIONS.
WE WILL SEE HOW THEY WILL PROGRESS THROUGHOUT THE YEAR.
AND PROBABLY WE WILL COME IN FRONT OF OUR BUDGET PROPOSAL WITH SUPPLEMENT SUPPLEMENTED FUNDING TO BE ABLE TO FINISH THESE AUTHORIZED HEARINGS. NEXT SLIDE, PLEASE. AND THEN THE NEXT SLIDE.
SO AFTER OUR DECEMBER MEETING BASED ON THE CONVERSATION THAT WE HAD, COUNCIL MEMBER RIDLEY FOLLOWED UP WITH A MEMO WITH A SUMMARY OF POTENTIAL CHANGES TO THE PROCESS, WHICH WERE GREAT.
WE TALKED ABOUT ALL OF THEM INTERNALLY AND WE MADE THE FOLLOWING RECOMMENDATIONS, BUT AMONGST THE SUGGESTIONS WERE FOR AUTHORIZED HEARINGS TO BE INITIATED BY A PETITION BY A CERTAIN THRESHOLD OF PROPERTY OWNERS WITHIN THE AREA.
FOR FAST TRACK, FOR SMALLER OR NON-CONTROVERSIAL CASES, A DASHBOARD WITH REAL TIME TRACKING, PREDICTABLE PUBLIC FACING TIMELINE. THEN TO SWITCH OR YES, TO SWITCH THE APPROVAL OR THE AUTHORIZATION ONLY TO CITY COUNCIL AND TO ADD A SUNSET PERIOD THAT TRIGGER TRIGGERS CPC OR CITY COUNCIL RE OR DE OR REAUTHORIZATION.
LET'S TAKE THEM ONE BY ONE, BUT I WILL ONLY TAKE A FEW MINUTES.
OF COURSE COUNCIL CAN DIRECT US TO EXPLORE THE OPTION.
JUST BECAUSE WE'RE CONSIDERING THE OPEN NATURE OF THE ASSIGNMENT, YOU KNOW, WHEN THESE ARE AUTHORIZED, WE DON'T KNOW, WE'RE JUST GOING TO EXPLORE IF THE ZONING ON THE GROUND IS WITHIN FITS WITHIN THE VISION OR THE TRENDS WE HAVE KNOWLEDGE ON IT REQUIRES ANY TYPE OF AUTHORIZATION, AS WE KNOW, REQUIRES KNOWLEDGE ON THE ZONING.
IT REQUIRES A BIG PICTURE VIEW AND IT HAS SERIOUS BUDGETARY CONSIDERATIONS.
THAT'S WHY WE WOULD RECOMMEND THAT THIS POWER OF AUTHORIZATION TO SOLELY LIE WITH CITY COUNCIL.
THE NEXT SOLUTIONS OR SUGGESTIONS WERE A FASTER TRACK FOR SMALLER OR NON-CONTROVERSIAL CASES.
WE DO NOT RECOMMEND THIS AT THIS TIME BECAUSE AS I SAID, WE ALREADY ASSIGNED ALL THE CASES AND CASES THAT WE HAVE IN THE QUEUE, AND WE ARE ANTICIPATING THAT ALL OF THEM WILL BE TAKEN ONE BY ONE AS FIRST COME, FIRST SERVED.
SO WE WANT TO HOLD OURSELVES ACCOUNTABLE AND NOT GET INTO THIS SITUATION IN THE FUTURE.
HOWEVER, IF WE GET INTO A QUEUE, WE CAN COME IN FRONT OF YOU AND REARRANGE THE PRIORITY AREA.
SORRY, THE NEXT SLIDE. YES. SLIDE 13.
THANK YOU. VICE CHAIR RIDLEY. THANK YOU, MR. CHAIR.
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YEARS. I'M CURIOUS ABOUT YOUR REPORT ON SLIDE SEVEN, THAT EACH AUTHORIZED HEARING HAS A STAFF TEAM ASSIGNED.I KNOW YOU TALKED ABOUT SOME REALLOCATION OF PERSONNEL, BUT FRANKLY, I'M AMAZED THAT YOU WERE ABLE TO FIND ENOUGH STAFF PERSONNEL TO ASSIGN TO, WHAT IS IT, 15 OR SO PENDING AUTHORIZED HEARINGS.
ARE THEY ALL ACTIVELY ENGAGED AT THIS TIME OR HAVE YOU JUST ASSIGNED CASES THAT WILL ULTIMATELY BE ACTIVATED AS THEY REACH THE TOP PRIORITY? THEY ARE ALL ACTIVELY ENGAGED AT THIS TIME.
IT'S JUST THAT THE FIRST PHASE OF THE PROCESS REQUIRES RESEARCH.
CREATING THE MAPS FOR THE GIS TEAM IS CREATING THE ZONING MAPS FOR THEM.
AND ONCE EACH TEAM MEMBER IS GOING TO BE DONE WITH THEIR RESEARCH, WE'LL REACH OUT TO COUNCIL RESPECTIVE COUNCIL OFFICES TO STRATEGIZE THE FIRST COMMUNITY MEETING. SO WE MAY HAVE A FEW COMMUNITY MEETINGS AS ONE AT ONCE.
SO HOW WERE WE ABLE TO DO THAT WITHOUT TAKING PEOPLE AWAY FROM THEIR PREVIOUS ASSIGNMENTS COVERING ZONING CASES, LONG RANGE PLANNING, ETC.? SO THE WORK IS DIVIDED BETWEEN THE AUTHORIZED HIRING TEAM AND THE REZONING TEAM.
SO THE SIMPLER, MORE STREAMLINED CASES ARE STILL GOING TO BE ASSIGNED TO OUR ON CALL CONTRACT.
NOT ALL TEAM MEMBERS FROM THE REZONING TEAMS ARE ALLOCATED TO AUTHORIZED HEARINGS.
THEY EACH HAVE 1 OR 2 AUTHORIZED HEARINGS IN ADDITION TO THEIR NORMAL WORKLOAD.
WE ARE IN A GOOD SPOT WITH THE REZONING RIGHT NOW.
AS FOR NEIGHBORHOOD PLANNING, AS YOU KNOW, FORWARD DALLAS IS ALREADY DONE.
WE DON'T HAVE MAJOR AREA PLANNING EFFORTS, AND WE WOULD LIKE TO ALWAYS HAVE A NEIGHBORHOOD PLANNER TO ACCOMPANY THESE CASES TO ENSURE THAT THE VISION ALL FORWARD DALLAS IS IMPLEMENTED. AND OBVIOUSLY ALSO BECAUSE THEY ARE VERY USED TO THE COMMUNITY.
THE COMMUNITY KNOWS THEIR FACES AS WELL. MAY I JUST ADD ONE THING THERE? SO EVEN A YEAR AGO, THIS TEAM HAS SUCH A HIGH VACANCY.
65% VACANT. AND THIS JUST THIS ONE TEAM. SO IT'S VERY HARD TO GET A LOT WORK DONE.
I'M GLAD TO REPORT THAT THIS TEAM, WHICH IS A CORE TEAM FOR AUTHORIZED HERE AND THEY ARE THE ONE DOING 100% IS A FULLY STAFFED SIX AND ALSO CITY COUNCIL GAVE US AN EXTRA PROTECTION LAST YEAR. VERY HELPFUL. SO ALL SIX PARTITIONS CURRENTLY HAVE BEEN FILLED.
AND THAT'S VERY IMPORTANT BECAUSE THEY ARE DOING THIS FULL TIME.
AND ALL THESE OTHER TEAM ARE VERY HELPFUL TOO.
BUT THE AUTHORIZED HEARING TEAM ARE FULLY STAFFED.
THEY ARE TAKING ON THIS. THEY ARE WORKING MULTIPLE PROJECTS.
THAT'S REALLY, REALLY AMAZING. SO I JUST WANT TO LET YOU KNOW THAT'S ALSO HAPPENING.
NOT, NOT FREESE AND NICHOLS. THEY ARE BEING ALLOCATED TO SUPPLEMENT STAFFING NEEDS ON OTHER TEAMS, ESPECIALLY REZONING TEAM. OKAY. THANK YOU, MR. CHAIR. THANK YOU. CHAIR WEST. THANK YOU, CHAIR, AND THANK YOU FOR SETTING THIS AS AN ITEM TODAY.
EITHER WAY, THEY'RE EXTREMELY IMPORTANT AND I'M GLAD TO SEE THEM MOVING FASTER.
I MIGHT HAVE MISSED IT, BUT ARE YOU LOOKING FOR FEEDBACK ON SLIDE 15? THE TWO PROCESS CHANGES. YES, AND THANK YOU SO MUCH.
I WAS GOING TO BRING IT UP. I THINK THERE WAS A LITTLE BIT OF A FAST TRACK WITH THE SLIDES.
WE ARE WHOLEHEARTEDLY SUPPORTED SUPPORTING AND WE WOULD LIKE FOR ECONOMIC DEVELOPMENT COMMITTEE TO GIVE US DIRECTION IF THEY AGREE WITH US TO EXPLORE OPPORTUNITIES TO HAVE THE CITY COUNCIL AS THE ONLY AUTHORIZATION BODY FOR ANY OF THE LARGE AREA REZONINGS, OBVIOUSLY, CITY PLAN COMMISSION MAY REMAIN AS A RECOMMENDATION BODY AND TO ADD A SUNSET PERIOD AFTER A CERTAIN PERIOD OF TIME AFTER THE AUTHORIZATION
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IN CASE STAFF DIDN'T TAKE ACTION. WE BRING IT BACK IN FRONT OF EITHER CITY PLANNING COMMISSION OR CITY COUNCIL FOR EITHER REAUTHORIZATION OR DEAUTHORIZATION. THIS WAY WE KEEP OUR OURSELVES ACCOUNTABLE AND HAVE A NATURAL PRIORITY.OKAY. I'LL START WITH THE SECOND BULLET. GENERALLY THIS SEEMS REASONABLE, LIKE A REASONABLE REQUEST.
WHAT WOULD DO YOU HAVE AN IDEA OF WHAT WOULD TRIGGER A DEAUTHORIZATION, LIKE WHAT WOULD BE THAT TIME PERIOD? I MEAN, WE WERE THINKING WE CAN CODIFY THAT IN CHAPTER 51.
IT CAN BE, I WOULD SAY SIX MONTHS, MAYBE TOO SHORT, MAYBE A YEAR IF WE DON'T KNOW, IF WE DON'T TAKE ANY ACTION, WE DON'T HAVE A STAFF ASSIGNED OR WE DON'T HAVE A FIRST COMMUNITY MEETING WITHIN A YEAR, WE BRING IT BACK IN FRONT OF CITY COUNCIL, BUT IT CAN BE A SMALLER PERIOD THAN THAT. I GUESS I WOULD JUST BE CAUTIOUS, LIKE IF IT'S THE COUNCIL MEMBER THAT'S JUST LIKE, HEY, I'M NOT INTERESTED IN MOVING THIS FORWARD RIGHT NOW.
I THINK I COULD UNDERSTAND WHY YOU WOULD WANT TO DO THAT.
BUT IF IT'S STAFF, JUST YOU'RE NOT STAFFED APPROPRIATELY.
AND I'LL BE HEARING ABOUT IT FROM MY NEIGHBORS.
IF THERE IS A STAFF SHORTAGE, IF, WHAT IS THE REASONING THAT NO ACTION HAS BEEN TAKEN? WHAT DOES YOUR PROPOSAL INCLUDE? COUNCIL AS THE FINAL DECISION ARBITER ON THE AUTHORIZATION OR AUTHORIZATION? OR COULD STAFF UNILATERALLY DECIDE TO AUTHORIZE SOMETHING WITHOUT OUR KNOWLEDGE? WE WOULD PREFER TO DO THAT. TO THAT BE YOUR DECISION BECAUSE YOU WOULD BE THE INITIATION BODY.
WHAT'S THE THEORY BEHIND THAT? WELL, THANK YOU SO MUCH FOR THE QUESTION.
I THINK THIS IS THE MOST IMPORTANT CONVERSATION.
ANY AUTHORIZED HEARINGS COME WITH SERIOUS COSTS.
THERE ARE ONLY A FEW OF THEM THAT ARE VERY SMALL AND CAN BE FAST AND CAN BE JUST AS SMALL, INSIGNIFICANT COST CONSIDERATION. BUT ALL OF THEM DO COME WITH BIG COST CONSIDERATION.
THEY ALL NEED TO FIT A VISION FOR THE DISTRICT OR FOR THE ENTIRE CITY.
CAN YOU GIVE ME AN EXAMPLE OF WHAT ONE OF THE LARGER AUTHORIZED HEARINGS MIGHT COST? YES, WE HAVE A FEW OF THEM RIGHT NOW IN THE LIST.
WE HAVE PD595. THAT HAS, I'M HOPING I'LL BE ABLE TO SEE, PD 595 HAS 10,000 PARCELS. MORE THAN 10,000. ALMOST 11,000 PARCELS.
LET'S SAY WE HAVE EASTER CLIFF ALSO HAS A THOUSAND PARCELS.
WE HAVE PD 298 1500. BUT WE ALSO HAVE THE KLEBERG THAT MAY HAVE FIVE UP TO FIVE 6000 TOGETHER.
SO THESE ARE VERY, VERY LARGE, AND ALSO IT MAY INVOLVE A FEW COMMUNITY MEETINGS.
EACH OF THEM NEEDS TO BE NOTIFIED. SO THIS TYPE OF CONSIDERATION IS, WE THINK THAT IS VERY RARE WHEN AUTHORIZED HEARINGS GET UNNOTICED BY THE COMMUNITY AT THE CITY SCALE. SO WE THINK THAT IS A MORE APPROPRIATE DISCUSSION.
EVEN NEGOTIATING WHICH ONE COMES FIRST. WE NEED TO ALL KNOW HOW MANY ARE IN THE QUEUE.
OKAY. YEAH, I WOULD SUPPORT THAT. CPC CAN ALWAYS MAKE THE RECOMMENDATION AND THEN WE WOULD, KNOWING OUR BUDGET AND OUR STAFF CAPACITIES COULD MAKE THE FINAL DECISION.
THANK YOU. CHAIR GRACEY. THANK YOU. I WANT TO FOLLOW UP ON THAT.
I JUST DON'T KNOW HOW TO ASK THE QUESTION. AND THAT'S REGARDING THE SUNSET PERIOD THAT TRIGGERS.
SO IF IT IF IT, IF IT GETS DEAUTHORIZED, I GUESS ACCORDING ACCORDING TO THIS, THE CITY COUNCIL WILL BE THE ONES TO MAKE THAT DECISION. WHAT WOULD HAPPEN TO THAT PROPERTY THEN? DOES IT JUST REVERT BACK TO WHATEVER. IT MAINTAINS THAT ITS CURRENT ZONING.
YES. OKAY. OKAY. I'M. I'M GOOD FOR NOW. THANK YOU.
YEAH. COUNCIL MEMBER BLAIR. THANK YOU. AND THANK YOU FOR THE PRESENTATION.
YOU, OKAY, SO YOU YOU SAID THAT VERY EARLY THAT YOU HAVE THE WHEN WE ASKED IF YOU WERE TAKING.
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YOU GUYS SAID THAT YOU NOW HAVE STAFFED UP SO THAT YOU HAVE ENOUGH STAFF TO HANDLE ALL OF THE AUTHORIZED HEARINGS, CORRECT? WE ALLOCATED STAFF FROM THE REZONING TEAM AS WELL, BUT WE BASICALLY ASSIGNED 1 OR 2 AUTHORIZED HEARINGS IN ADDITION TO THEIR WORKLOAD, AND WE'RE SUPPLEMENTING NEEDS FOR REZONINGS WITH THE CONTRACT, ON CALL CONTRACT THAT WE HAVE WITH FREESE AND NICHOLS BUT THE ENTIRE AUTHORIZED HEARING TEAM IS FIVE MEMBERS PLUS A CHIEF, AND IN ADDITION TO THAT, WE ALLOCATED, I THINK, FOUR MORE FROM THE REZONINGS TEAM.SO THERE'S FIVE PLUS A CHIEF. SO THERE IS SIX THAT ARE DOING THE REAUTHORIZATION.
AND YOU'RE LOANING OUT FOUR FROM THE REZONING.
AND THEN YOU HAVE THE ON CALL CONTRACTORS WHO ARE OFF SITE.
CORRECT? JUST FOR THE REZONING. SO WE DON'T FALL BEHIND ON THAT SIDE.
YES. OKAY. BUT MY, MY CONCERN IS ALSO IF WE ARE TAKING THEM FROM THE OFF SITE, IF WE'RE TAKING FOR FROM THE REZONING. THE QUALITY THAT WE'RE GETTING ON THE REZONING MAY BE. I WOULD SAY THEY'RE NOT HERE LOCAL, SO THEY CAN'T DO A LOT OF THE LOCAL WORK THAT.
THAT THE THOSE THAT ARE HERE IN THE IN DALLAS CAN DO.
MY CONCERN IS I WOULD NOT WANT THE WORK THAT OUR REZONING STAFF DOES TO NOT HAVE THE SAME LOOK AND FEEL FROM AN OFF SITE STAFF MEMBER THAN THE LOCAL.
SO I JUST WANT YOU TO TO BE COGNIZANT OF THAT.
BUT YOU YOU'RE SAYING THAT SOME OF THE PHASE ONE WORK TAKES MAY TAKE JUST CHANGE THE TOPIC.
HOW LONG DOES THE PHASE WORK? PHASE ONE WORK GENERALLY TAKE IN A SMALL.
THE RESEARCH. THE RESEARCH. IT DEPENDS, I DON'T KNOW.
I WOULD SAY IT'S GOING TO HAVE TO TAKE AT LEAST A MONTH.
IT DEPENDS ON HOW COMPLEX AND HOW BIG IT IS. WE DO HAVE ONE AUTHORIZED HEARING RIGHT NOW.
PROBABLY THE RESEARCH MAY TAKE A LITTLE BIT MORE.
IF IT'S A MIX OF USES, IT MAY TAKE A LITTLE BIT MORE.
BUT I WOULD SAY NO LESS THAN A MONTH, NO LESS THAN A MONTH.
WHAT IS THE LONGEST PERIOD OF TIME IT MAY TAKE? I'M JUST LOOKING AT YOUR LIST. YOU HAVE AUTHORIZED HEARINGS THAT HAVE BEEN WAITING SINCE 2018.
YOU HAVE EAST OAK CLIFF. THAT WAS 2018. YOU HAVE A SINGLE PROPERTY RICHMOND SUMMIT.
THAT WAS 2019. YOU HAVE PD 877 2019. AND THEN YOU HAVE EAST AND WEST KLEBERG, WHICH I'M VERY FAMILIAR WITH. SINCE 2020 THEY'VE BEEN WAITING FOR, FOR SUCH A LONG TIME. I WOULD HATE THAT. NOW THAT YOU'RE SAYING WE'RE WORKING ON THEM, THAT YOU NOW HAVE TO WAIT SIX MONTHS OR LONGER JUST TO GET THROUGH PHASE ONE.
SO MY, WHAT THE ASK THAT I'M HAVING HERE AND THE LOOK THAT AND THE ANSWER I'M LOOKING FOR IS A GUESTIMATION, IF YOU WILL. KNOWING THAT SOME OF THESE ARE COMPLEX, YOU'RE TELLING ME ABOUT A MONTH FOR SOMETHING SMALL, BUT SOMETHING THAT'S NOT SMALL. HOW LONG IS.
HOW LONG WOULD WE EXPECT THAT TO GET PAST PHASE ONE.
AND WHAT IS PHASE TWO? I WOULD SAY IT'S A MINIMUM A MONTH FOR ANY TYPE OF AUTHORIZED HEARING.
WE, AS I SAID, LIKE WE ALLOCATED STAFF. IT TOOK US A LITTLE BIT.
WE HAD TO TRAIN OUR STAFF INTERNALLY. WE HAVE NEW STAFF IN AUTHORIZED HEARINGS.
SO EVEN THAT TO MAKE SURE THAT THESE ARE IN GOOD HANDS.
THEY ALL NEED MAPS. SOMETIMES THE MAPS MAY TAKE A LITTLE BIT.
I WOULDN'T SAY THAT IT'S LESS THAN A MONTH, BUT I DON'T WANT TO DRAG IT WITH ANY OF THEM.
I DID ASK THEM TO BE VERY COMFORTABLE WHEN THEY HAVE THE MEETING WITH ALL OF YOU TO TALK ABOUT THIS, TO HAVE THEIR HOMEWORK DONE. WE WILL NOT DRAG THEM.
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IT DID TAKE A LOT OF TIME BECAUSE THEY WERE PLACED ON HOLD BECAUSE OF THE PRIORITIZATION AND THE BACKLOG THAT WAS CREATED.BUT AS OF NOW I WOULD SAY AS OF LAST WEEK, EXCEPT FOUR OF THEM, THEY ARE ALL ASSIGNED.
YOU'RE SAYING ABOUT A MONTH. GIS COULD TAKE LONGER, BUT ISN'T GIS STILL UNDER YOUR PURVIEW? YES, BUT HOW LONG IT TAKES TO CREATE THE MAPS AND ALL OF THAT, LIKE IT DEPENDS ON HOW MANY PARCELS, WHAT IS THE ZONING AND ALL OF THAT. SO I WOULD SAY THEY WILL WORK TOGETHER.
SO. COMMISSIONER. COUNCIL MEMBER. OK. COUNCILMEMBER, I'M THE CHIEF PLANNER OF AUTHORIZED HEARING. SO I AGREE WITH WHAT ANDREEA SAID. IT ALL DEPENDS.
SOMETIMES WHEN WE GO INTO THE COMMUNITY BECAUSE OF THE AUTHORIZING LANGUAGE AND THE DYNAMICS THAT EXIST IN THE NEIGHBORHOOD, WE MIGHT HAVE TO DO SOME KIND OF VISIONING. JUST KIND OF TO STREAMLINE THE PROCESS AND IDENTIFY WHAT NEEDS TO BE DONE PRIOR TO INITIATING THE REZONING. SO LIKE YOU'RE FAMILIAR, LIKE IN THE KLEBERGS, WE MIGHT HAVE TO DO SOME COMMUNITY VISIONING AS PART OF THE REZONING PROCESS.
SO WE ONLY COUNT THE AUTHORIZED HEARING WHEN WE DO THE KICK OFF MEETING WHEN THE CLOCK STARTS TICKING, BUT NATURALLY JUST DEPENDS ON THE DYNAMICS THAT EXIST IN THE GROUND.
AND IT CAN TAKE LONGER, SOMETIMES MORE THAN A MONTH TO DO THE BACKGROUND RESEARCH AND ANALYSIS.
SO WHEN YOU SAY THE KICKOFF MEETING STARTS THE TIME CLOCK.
SO WHILE WE'RE IN PHASE ONE, NO TIME CLOCK HAS STARTED.
CAN YOU SPEAK INTO YOUR MIC PLEASE? OH, HE TURNED IT OFF.
SO THE PROCESS DOESN'T KICK OFF UNTIL WE DO THE ACTUAL COMMUNITY KICK OFF MEETING, BUT THERE'S A LOT OF WORK THAT GOES ON BEFOREHAND, AND SOME OF THOSE COULD INVOLVE COMMUNITY MEETINGS, LIKE WHEN WE DO THE KLEBERGS, I THINK WE'VE HAD DISCUSSIONS WITH YOU THAT WE MAY HAVE TO DO SOME NEIGHBORHOOD VISIONING WITH THE NEIGHBORHOOD PLANNING TEAM TO IDENTIFY WHAT WE ARE REZONING TO AND WHETHER THE COMMUNITY CAN BUY INTO THAT VISION. SO WHEN WE GO INTO A NEIGHBORHOOD THAT ALREADY HAS A NEIGHBORHOOD PLAN, THAT IS USUALLY DEFINED IN THE NEIGHBORHOOD PLAN, BUT A LOT OF THE COMMUNITIES THAT WE GO DON'T HAVE A NEIGHBORHOOD PLAN.
SO WE DON'T HAVE CLEAR DEVELOPMENT VISION THAT WE ARE REZONING TO.
AND WE MIGHT HAVE TO DO SOME BACKGROUND WORK ON THAT TO COME UP WITH A CLEAR VISION TOWARDS THAT.
AND THAT CAN TAKE TIME. SO IT JUST DEPENDS. OKAY.
I KNOW THE FRUSTRATION OF MANY COMMUNITIES THAT HAVE HAD THEIR AREA PLAN, NEIGHBORHOOD PLAN REVISIONS BEEN IN QUEUE FOR QUITE SOME TIME. AND. AS COUNCIL MEMBERS, WE GET ASKED ON A REGULAR BASIS, WHERE ARE WE? AND, BUT AT THE SAME TIME, OUR ZONING KEEPS GOING.
AND THE MORE WE ZONE, THE LESS WE SEE OF THE AUTHORIZED HEARING VISION.
IS THERE A WAY TO MOVE OUR AUTHORIZED HEARINGS IN THE ZONING PROCESS TOGETHER SO THAT THERE IS CONTENT? THERE IS THERE ISN'T ANY CONTENTION AS FAR AS WHAT THE AUTHORIZED WHAT THE RESIDENTS ACTUALLY WANT AND WHAT WE HAVE SEEN COME THROUGH AS A REZONING PROCESS? THANK YOU FOR THE QUESTION, COUNCILWOMAN. I KNOW IT'S NOT AN EASY ONE.
WE CANNOT OBVIOUSLY STOP ZONING REQUESTS. EVERYBODY HAS THE RIGHT TO ASK.
AT THE END OF THE DAY, BOTH THE AUTHORIZED HEARING AND THE ZONING REQUEST COMES IN FRONT OF THE SAME BODY, WHICH IS CITY COUNCIL. SO I WOULD SAY, AND THE WORK THAT THE DEVELOPERS ARE PRIVATE APPLICANTS, DO THEY INVOLVE CITY PLANNING COMMISSION AND CITY COUNCIL.
WHILE STAFF CANNOT STOP IT, I THINK A DISCUSSION MAY, MAY BE HAD.
AND KEEP IN MIND, AS I SAID THAT AT THE END OF THE DAY, COUNCIL APPROVES BOTH.
WE CANNOT OFFICIALLY STOP AN APPLICANT FOR ASKING FROM ASKING.
OH, AND NOW FOR EASY QUESTION. MAYBE NOT SO EASY.
HOW MANY CHANGES IN, HOW MANY TIMES HAVE WE CHANGED OUR PRIORITIZATION IN THE PAST SIX YEARS? DO YOU KNOW? I DON'T KNOW, I THINK WE ONLY CHANGED IT ONCE.
WHEN, YOU KNOW, THE DEPARTMENT'S CHANGED A LITTLE BIT AND THE TEAM MIGRATED A LITTLE BIT.
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WE USED TO HAVE A DIFFERENT TYPE OF PRIORITIZATION BEFORE WE HAD FORWARD DALLAS ADOPTED THAT SCORED A LITTLE BIT HIGHER ON AREA PLAN. WE DIDN'T HAVE ANY TYPE OF SCORING CRITERIA FOR ENVIRONMENTAL JUSTICE OR ENVIRONMENTAL SENSITIVE AREAS.WE INTRODUCED THOSE. SO I WOULD SAY JUST ONCE IN MY TENURE HERE, BUT AS OF NOW I WOULD PUT THE PRIORITIZATION LIST IN A PIN ON HOLD FOR A LITTLE BIT AS WE'RE STARTING ALL OF THEM AT ONCE, AND THEY WILL NATURALLY FOLLOW THEIR TIME FRAMES DEPENDING ON HOW THE COMMUNITY WANTS TO MOVE WITH THEM FASTER OR SLOWER. I WOULD HATE TO SEE THAT.
I KNOW WE'RE BORROWING FOUR FROM ZONING AND WE HAVE FIVE, SIX WITH, WITH CHIEF.
AND I KNOW CHIEF DOES WORK WORK CASES AS WELL.
THANK YOU VERY MUCH FOR THAT. I WOULD. IS THERE A PLAN THAT IS.
IF. OR WOULD. I WOULD HATE TO SEE THAT WE GET ENOUGH CASES TO COME IN FOR THE ZONE REZONING THAT WE WOULD START. WHAT WE HAVE SEEN IN THE PAST IS WE PULL FROM ONE GROUP TO ANOTHER GROUP WHEN WE HAVE SOMETHING THAT RISE, THAT WE WOULD LOSE STAFFING IN THE AUTHORIZED HEARING PROCESS THAT WOULD HINDER US MOVING FORWARD WITH ANY AUTHORIZED HEARING THAT YOU'RE CURRENTLY LOOKING AT.
I THINK WE HAVE A GOOD TEAM IN PLACE THAT PULLS FROM TWO TEAMS, ACTUALLY THREE TEAMS. I'M HOPING WE HAVE ENOUGH OF A BACKUP IN CASE OF STAFF TURNOVER.
SO I WOULD JUST CELEBRATE WHAT WE HAVE RIGHT NOW.
WE HAVE GOOD STAFFING AND LOW VACANCY RATES. SO I WOULD LIKE TO MOVE FORWARD AS IS.
AND I THINK TO ADD ON THAT USUALLY IT'S ALL HANDS ON DECK JUST BECAUSE WE DO HAVE A PROJECT MANAGER THAT IS LEADING THE EFFORT DOESN'T MEAN THAT THE OTHER TEAM MEMBERS ARE SUPPORTING AND WE CAN MOVE THE TEAM MEMBERS AROUND.
SO OUR GOAL IS THAT EVEN THOUGH WE MIGHT HAVE A THE FACE OF THE PROJECT, BEING A PARTICULAR PROJECT MANAGER, ALL THE TEAM MEMBERS WOULD BE INVOLVED SO THAT IF WE NEED TO MAKE ANY TRANSITION, IT WON'T AFFECT THE PROJECT IN A SIGNIFICANT WAY.
YOU KNOW, ZONING AND PLANNING IS NEAR AND DEAR TO MY HEART.
NO WAY. NOBODY'S IN TROUBLE. I WAS JUST GOING TO SAY OUR INTERESTS ARE ALIGNED.
AND WE HAD AN UNUSUAL OPPORTUNITY RECENTLY WITH ANDREA GILLIS LEAVING THE CITY.
AND THAT'S CREATED SOME INTERESTING SYNERGIES AND EFFICIENCIES.
AND SO I THINK THAT'S WHY WE HAVE SEEN THIS MASSIVE SPEED UP IN PROCESS, BECAUSE RATHER THAN HAVING PEOPLE SOLELY FOCUSED ON ONE OR SOLELY FOCUSED ON THE OTHER, THIS IS A REALLY SMART, PROFESSIONAL TEAM WHO HAVE VERY COMPARABLE SKILLS.
AND SO WE'RE ALIGNED. THAT'S ALL I WAS GOING TO TELL YOU.
AND I THINK THAT'S WHY YOU SEE THINGS SPEEDING UP. WE'RE FILLING VACANCIES. WE'RE CROSS TRAINING STAFF AND TRYING TO BE A LITTLE MORE EFFICIENT IN OUR PROCESSES. AND AS YOU SEE IN THE NUMBERS HERE, IT'S WORKING OUT REALLY WELL.
I APPRECIATE THAT, AND I'M LOOKING TO I'M LOOKING FORWARD TO SEEING THAT WHAT WHAT YOU HAVE DONE TO MAKE SURE THAT DALLAS IS A WELL, IT'S AN EXCELLENT RUNNING CITY AND A CITY, AND I KNOW THERE'S A LOT OF GROWTH I DON'T WANT TO MAKE. I WANT TO MAKE SURE THAT THE AUTHORIZED HEARING PROCESS ALLOWS THOSE AREAS TO GROW.
AND FOR US TO REALIZE AS A CITY, TO REALIZE THE BENEFITS OF THE AUTHORIZED HEARING AND THE COMMUNITIES AND FOR THE COUNCIL MEMBERS TO STOP GETTING CHALLENGED BY THEIR COMMUNITIES, BECAUSE IT LOOKS AS THOUGH WE ARE INCAPABLE OF GETTING THEIR REQUEST ON THE TABLE THROUGH A PROCESS. AND THEY REALIZE THE, THE, THEIR REQUEST AND THAT ARE BEING HEARD.
THAT'S ALL I'M ASKING FOR. THANKS. COUNCIL MEMBER CADENA.
[00:35:03]
AUTHORIZED FOR US TO DO OUR, OUR PLAN. AND IN THE BEGINNING, I WAS A LITTLE ANXIOUS BECAUSE I EXPERIENCED ANOTHER DISTRICT THAT BECAME DISTRICT SIX GOING THROUGH THIS PROCESS.AND I WASN'T TOO SURE. Y'ALL HAD DEFINITELY MADE SOME CHANGES SINCE THAT TIME.
BUT I'M, YOU KNOW, I AM SEEING THAT Y'ALL ARE WORKING WITH THE COMMUNITY AND, BUT I DID WANT TO ASK, WHAT IS THE AVERAGE NUMBER OF MEETINGS THAT WE TYPICALLY HAVE? I KNOW RIGHT NOW THERE'S A MINIMUM OF THREE, BUT WITH ONE AS COMPLICATED AS MAYBE THIS CORRIDOR.
WHAT ARE YOU WHAT ARE YOU ALL SEEING? THE AVERAGE NUMBER. OH.
YOUR MIC. SORRY. IT ALL DEPENDS. SOME CASES IT TAKES A WHILE.
MAYBE A FEW MORE MEETINGS TO REACH CONSENSUS.
SO USUALLY AS WE ENGAGE IN THE PUBLIC MEETINGS, WE TRY TO GAUGE THE CONSENSUS.
AND WE ALSO SEE, YOU KNOW, HOW THE COMMUNITY IS RESPONDING TO PROPOSALS THAT ARE PUT BEFORE THEM.
SO IT ALL DEPENDS, LIKE IN WEST DALLAS, I THINK WE ARE NOT THERE YET.
SO WE MIGHT NEED A COUPLE OF MEETINGS TO BE READY TO COME TO THE CPC.
SO IT JUST ALL DEPENDS ON A CASE BY CASE BASIS.
SO WE TRY TO HAVE AS MANY MEETINGS. OF COURSE, WITHIN REASONABLE DIMENSIONS, AS MANY MEETINGS FOR US TO GET TO A POINT WHERE WE FEEL LIKE MAJORITY OF THE COMMUNITY IS BEHIND STAFF PROPOSAL.
OKAY. AND THEN I DO SEE WHERE THESE OPTIONS WOULD BE BENEFICIAL.
DO YOU ALL SEE THAT THIS MIGHT CUT THE TIME AT ALL FOR WHEN APPLICATIONS WILL GET TO, I GUESS JUST TO BEGIN, ONCE THEY'VE BEEN AUTHORIZED? AT LEAST SO I GUESS FOR NUMBER.
I THINK WE CAN AGAIN HURRY AS MUCH AS WE CAN ON STAFF TIME, BUT WE DON'T WANT TO CUT QUALITY, RIGHT? SO WE WANT TO MAKE SURE THAT WE DO OUR DUE DILIGENCE WITH THE RESEARCH AND WE COME IN FRONT OF IN FRONT OF YOU AND THE COMMUNITY WELL INFORMED.
SO I WOULD LIKE TO LEAVE A FEW MONTHS FOR THAT.
EVEN IN BETWEEN COMMUNITY MEETINGS, RIGHT? AND THEN ONCE WE HIT PUBLIC HEARINGS, YOU KNOW, WE HAVE NOTIFICATION REQUIREMENTS AND THEN YOU KNOW, CONSENSUS FROM SUCH A LARGE GROUP OF PROPERTY OWNERS, SOMETIMES IT HAPPENS, SOMETIMES IT DOESN'T. WE'VE SEEN AUTHORIZED HEARINGS THAT HAVE BEEN POSTPONED.
SO IT'S HARD TO ESTIMATE HOW LONG IT WILL TAKE.
WE WILL DO AT LEAST OUR DUE DILIGENCE NOT HOLDING THEM IN THE BEGINNING FOR A BACKLOG, BUT THE WORK WITH THE COMMUNITY, I THINK WE NEED TO ALLOW AS MUCH AS THE COMMUNITY NEEDS.
AND I THINK THAT THAT'S THE PART THAT'S BEEN DIFFICULT, AT LEAST AS OUR STARTED IS JUST COMMUNICATING TO THE COMMUNITY WHAT WAS HAPPENING AND WHY THERE WAS A DELAY. YOU KNOW, THE APPLICATION WENT IN AND IT JUST, I KNOW THEY WOULD REACH OUT AND IT WAS HARD TO TELL THEM, YOU KNOW, WHY IT WAS GETTING DELAYED. AND SO NOW WE'VE STARTED, WHICH IS GREAT.
AND AGAIN, WE DON'T WANT TO SHORTCHANGE THAT. WE WANT TO MAKE SURE WE'RE GETTING ALL THE COMMUNITY INPUT AND NOT RUSH THAT, WE WANT TO GET IT RIGHT. SO I DO APPRECIATE ALL THE WORK THAT Y'ALL BEEN DOING IN MY COMMUNITY.
THANK YOU. COUNCIL MEMBER ROTH. THANK YOU. THANK YOU FOR THE PRESENTATION.
AND I'M, I'M SENSITIVE TO TIMING AND TO RESOURCES THAT YOU ALL HAVE.
AND I THINK THAT YOU'RE TRYING TO BUILD A PROCESS THAT'S SENSITIVE TO THAT.
I REALLY, THOUGH, AND I APPLAUD YOU. I THINK THAT WE'VE GOT TO PROTECT THE QUALITY OF THE PROCESS AND THE QUALITY OF THE INFORMATION THAT YOU ALL ARE ABLE TO DO, AND THAT WE'VE GOT TO PROTECT THE COMMUNITY AND AND THE NOTIFICATION PROCESS OF THE COUNCIL PEOPLE, BECAUSE THIS REALLY IS SOMETHING THAT WE DIRECTLY GET, GET INFORMATION ABOUT AND, AND ARE IN CONTACT WITH PEOPLE ABOUT. AND I, I WOULD LIKE TO MAKE SURE THAT IN ANY THOUGHTFUL REDEVELOPMENT OF THE ORDINANCES THAT THERE'S SUFFICIENT TIME THAT'S PROVIDED TO THE COUNCIL PEOPLE IN NOTIFICATION THAT THERE COULD BE A SUNSET OR A REAUTHORIZATION PERIOD NEEDED TO BE DONE, THAT THERE'S ADEQUATE NOTICE TO THE COUNCIL PEOPLE WHEN HEARINGS AND THAT WHEN INVOLVEMENT IS GOING TO BE DONE BY CPC AND OTHER THINGS, I WANT TO KNOW WHAT'S HAPPENING.
[00:40:02]
REPRESENTING THE COMMUNITY KNOW WHAT'S GOING ON AND THAT WE CAN HELP THE PROCESS PROCEED.AND SO I WOULD LIKE TO ALSO SUGGEST, CHAIRMAN, THAT IF WE DO DECIDE TO RECOMMEND THAT WE LOOK FOR SOME AMENDMENTS OR CHANGES TO THESE TO THESE ORDINANCES, THAT THEY COME BACK TO US FIRST BEFORE YOU START VETTING THEM WITH CPC AND OTHER GROUPS AND OTHER COMMISSIONS SO THAT WE CAN SORT OF GET A HANDLE OVER THE, THE DETAILS ON WHAT'S GOING ON HERE.
BUT I'D LIKE TO REALLY GET INTO THE WEEDS A LITTLE BIT IN THIS COMMITTEE TO MAKE SURE THAT WE'RE THINKING THOUGHTFULLY ABOUT A LONG TERM SOLUTION TO GETTING THESE THINGS MOVED FORWARD.
THANK YOU. THAT'S A GOOD SUGGESTION COUNCIL MEMBER, AND IF IT IS THE WILL OF THIS COMMITTEE TO MOVE FORWARD WITH THE TWO STAFF RECOMMENDATIONS, WE WILL COME BACK TO THIS COMMITTEE WITH A DRAFT REDLINED ORDINANCE BEFORE WE START THE PROCESS.
THANK YOU ALL FOR THE PRESENTATION. IT'S, YOU KNOW, CRITICAL THAT WE HAVE THIS PROCESS IN PLACE.
BUT JUST AS CRITICAL IS THE STAFFING COMPONENT TO IT.
SO WE CAN HAVE THE PROCESS IN PLACE, BUT IF WE DON'T HAVE THE TEAM BEHIND IT TO BE ABLE TO IMPLEMENT IT, THEN THE PROCESS JUST DOESN'T SERVE ITS PURPOSE.
I DO WANT TO THANK YOU GUYS FOR THE THE WEB SITE THAT'S CREATED FOR REAL TIME TRACKING.
I THINK THAT'S IMPORTANT. AND THEN WHEN IT COMES TO NOTICES FIRST QUESTION IS ON NOTICES, ARE THOSE LETTERS TO INDIVIDUAL PROPERTY OWNERS OR IS THAT AND A DALLAS MORNING NEWS PUBLICATION? WHEN WE'RE TALKING ABOUT 10,000 PLUS NOTIFICATIONS AND IF THIS COUNCIL SAYS, HEY, WE'RE GOING TO STOP THE REAUTHORIZATION, WE'RE NOT GOING TO GO FORWARD WITH IT.
AND THEN WE HAVE TO REAUTHORIZE AGAIN THE COST IMPLEMENTATIONS TO THAT.
WHEN THE REZONE PROPOSED REZONING COMES IN FRONT OF CITY PLANNING COMMISSION AND COUNCIL FOR THE AUTHORIZATION ITSELF, WE JUST PLACED AN AD IN DALLAS MORNING NEWS. WHEN YOU DECIDE TO AUTHORIZE, WE DON'T SEND LETTERS TO OWNERS UNLESS THERE IS A CERTAIN THRESHOLD OF PROPERTY OWNERS. BUT WE ONLY DO NEWS NOTICES FOR THE AUTHORIZATION ITSELF.
THE LETTERS TO PROPERTY OWNERS COME WHEN WE HAVE A SOLUTION AND WE DO THE ACTUAL REZONING.
SO NOTICES FOR AUTHORIZED HEARINGS OR JUST ZONING CASES.
I'M STILL SEEING THAT LAG BETWEEN WHEN WE'RE PUSHING SOMETHING OUT OF CITY HALL AND WHEN THE POSTAL SERVICE IS GETTING THOSE NOTICES TO PEOPLE'S DOORS. OH AS YOU KNOW, PER STATE LAW AND PER OUR CODE, WE'RE REQUIRED TO NOTICE A MINIMUM OF TEN DAYS PRIOR TO CITY PLANNING COMMISSION. AND WE USUALLY DO 13 TO 14 DAYS. AND FOR CITY COUNCIL WE'RE REQUIRED 15 DAYS.
AND WE USUALLY DO 17, 18 DAYS. SO WE WE, FOR INSTANCE, BECAUSE THE, THE THESE PUBLIC HEARINGS ARE WEDNESDAYS AND THURSDAYS, THAT EXACT TEN DAY OR 15 DAY WOULD FALL ON A MONDAY.
BUT WE ALWAYS NOTIFY THE LATEST A FRIDAY. SO WE GET.
SO WE GET THE WEEKEND AS WELL. SO. AT LEAST ON MONDAY, WE HAVE SOME ASSURANCE THAT IT REACHES THE INBOXES OF THE PROPERTY OWNERS THAT WOULD RECEIVE A LETTER. WE SOMETIMES ARE OVERACHIEVERS.
WE TRY TO HAVE THEM ALL FOLDED AND MAILED BY THURSDAY, USUALLY WEDNESDAYS.
IT'S A LOT OF PRINTING IN MY OFFICE. THANK YOU.
CHAIR WEST, THANK YOU FOR PROVIDING SOME SOME GUIDANCE AND SOME FEEDBACK.
VICE CHAIR RIDLEY, I THINK YOU HAVE SOME ADDITIONAL COMMENTS.
YES. THANK YOU, MR. CHAIR. I WOULD LIKE TO REQUEST THAT STAFF PROVIDE AN UPDATE ON THE STATUS OF THE AUTHORIZED HEARINGS ON A QUARTERLY BASIS TO THE COMMITTEE. THAT CAN BE DONE BY MEMORANDUM, AND PARTICULARLY ADDRESSING ANY REFORMS TO IMPROVE THE PROCESS, HOW THOSE ARE WORKING IN PRACTICE.
THAT WOULD BE VERY HELPFUL TO KNOW THAT. AND AT THIS POINT, MR. CHAIR, I WOULD LIKE TO MOVE THAT WE REQUEST THAT THE STAFF RETURN TO THIS COMMITTEE WITH THE TWO PROPOSED PROCESS CHANGES AND
[00:45:01]
THE ASSOCIATED AMENDMENTS TO CHAPTER 51 A AND THE CPC RULES FOR OUR REVIEW.THANK YOU. STAFF, DO WE NEED A MOTION TO MOVE THIS FORWARD AS WELL? NO GUIDANCE HEARD. WE WILL BE BACK HOPEFULLY NEXT MONTH.
THANK YOU FOR THAT CLEAR. WE HAVE A MOTION AND A SECOND.
ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES.
ALL RIGHT. WE'RE GOING TO BE MOVING AROUND THE AGENDA TODAY.
WE ARE NOW GOING TO GO TO ITEM E IF THERE'S NO OBJECTION.
ITEM E. THANK YOU SO MUCH CHAIR AND COUNCIL MEMBERS OF ECONOMIC DEVELOPMENT COMMITTEE.
ITEM E IS A FIVE SIGNATURE MEMO THAT WAS SUBMITTED SUBMITTED BY COUNCIL MEMBER LAURA CADENA, ADAM BAZALDUA, CHAD WEST, ZARIN GRACEY AND COUNCILWOMAN PAULA BLACKMON DIRECTING THE CITY MANAGER TO UTILIZE CONTINGENCY FUNDS TO PROCURE A CONSULTANT TO DETERMINE THE AMOUNT CALCULATED UNDER THE DALLAS CITY CODE, CERTAIN SECTION FOR USE IS LOCATED AT 2600 SINGLETON BOULEVARD AND 7910 SOUTH CENTRAL EXPRESSWAY AND TWO, NO LATER THAN 30 DAYS AFTER THE CONSULTANT DETERMINES THE AMOUNT TO BRIEF COUNCIL COMMITTEE AND SCHEDULE AN ITEM FOR REGULAR CITY COUNCIL VOTING AGENDA TO CONSIDER THE DETERMINED AMOUNT TO FUND THE CREATION FUND TO THE FUND IS CREATED. BASICALLY THIS ITEM IS A FIRST STEP IN THE NEW AMORTIZATION PROCESS FOR THESE TWO LOCATIONS. I AM HERE TO ANSWER ANY QUESTION.
I PROVIDED A MEMO TO GIVE A LITTLE BIT OF BACKGROUND AND AN EXCERPT FROM THE CODE.
SINCE THIS IS THE FIRST TIME WE'RE INITIATING SUCH A PROCESS IN LIGHT OF THE NEW STATE LAW CHANGES, I AM HERE TO ANSWER ANY QUESTIONS. THANK YOU.
AND SO AS EXPECTED, THAT WAS RELATIVELY SHORT AND PRECISE AND TO THE POINT, I KNOW MANY OF US ARE GOING TO HAVE QUESTIONS ABOUT ENVIRONMENTAL CONCERNS, THE COST TO HIRE A CONSULTANT TO DETERMINE THE VALUE OF CLOSING A BUSINESS, THE COST TO ECO DEV, THE RETURN TO THE CITY FROM LOSS OF JOBS, PROPERTY TAX AND SALES TAX.
I'M GOING TO ASK STAFF THAT THEY GUIDE US AND KEEP US ON TRACK.
THIS IS ONLY THE FIRST STEP TO A LONG PROCESS.
YES. THANK YOU CHAIR. SO MY COMMUNITY MEMBERS HAVE ASKED THAT I BRING THIS FORWARD.
AND SO THIS IS ONE OF THE FIRST THINGS THAT I, I DID.
ANDREEA, I DO HAVE A QUESTION FOR YOU REGARDING THE TAMKO PROPERTY.
SO IF THIS IF THIS COMPANY WERE TO MOVE WITHIN THE CITY OF DALLAS, WHAT LOCATION WOULD IT BE ELIGIBLE TO MOVE TO WITH THE FORWARD DALLAS? WELL, THANK YOU SO MUCH FOR THE QUESTION.
BOTH OF THESE PROPERTIES, WE LOOKED INTO THEM AND HAVE DETERMINED THAT THEY ARE IN THE LAND USE THAT THEY ARE OPERATING UNDER IS INDUSTRIAL INSIDE INSIDE POTENTIALLY INCOMPATIBLE, WHICH IS A HEAVY INDUSTRIAL TYPE OF USE.
SO AGAIN SIMPLEST ROUTE WOULD BE TO SIMPLY FIND AN IM ZONING AND APPLY FOR A SPECIFIC USE PERMIT.
AND COMING FROM A COUNCIL FOR APPROVAL OBVIOUSLY THERE IS ALWAYS THE REZONING, FULL REZONING TO AN IM AND AN SUP ROUTE THAT ANYBODY CAN ASK FOR. AS FOR FORWARD DALLAS, THERE ARE ONLY THREE AREAS IN THE CITY THAT WE DEEMED AS INDUSTRIAL PARK.
ONE IS THE AREA IN YOUR DISTRICT IN NORTH WEST OR ALL ALONG ROYAL LANE.
AND I'M TRYING TO FIND ANOTHER IN LUNA ROAD. THE OTHER ONE IS MCCOMMAS BLUFF IN DISTRICT EIGHT.
AND THERE IS ALSO AN INDUSTRIAL AREA NORTHEAST OF 635 IN DISTRICT TEN.
DO YOU KNOW IF THERE ARE ANY LOCATIONS IN WEST DALLAS THAT MEET THIS CRITERIA THAT WOULD BE ZONED? I'M PROBABLY A FEW OF THEM ON SINGLETON AND PROBABLY A FEW OF THEM.
[00:50:05]
IN THE LUNA ROAD, LUNA ROAD, ROYAL LANE AREA.OKAY. THANK YOU. THAT'S IT FOR NOW. COUNCIL MEMBER ROTH.
THANK YOU. THE THIS THE DECISION TO GO FORWARD ON TRYING TO GET MORE CONSULTING AND MORE INFORMATION ON THE ISSUE. IT'S A LITTLE BIT TROUBLING TO ME BECAUSE REALLY THE ISSUE IS THE AMORTIZATION.
THE AMORTIZATION PROSPECT IS TREMENDOUS. IT'S HUGE.
I DON'T KNOW THAT THIS COUNCIL COULD WOULD EVER BE ABLE TO AFFORD A, AN AMORTIZATION PENALTY.
SO I'M, I'M TRYING TO UNDERSTAND WHAT WE'RE TRYING TO ACCOMPLISH HERE.
IF THE, IF THERE'S BEEN, IF THERE'S BEEN VIOLATIONS OF THE, OF THE USE.
IF THERE'S BEEN VIOLATIONS OF THE. ZONING. IF THE.
IF THE QUESTION IS, WE WANT TO STOP THE THE OPERATION AND CHANGE THE OPERATION.
AND WE ARE. WE ARE TRYING TO BUY THEM OUT OF THE ZONING.
I THINK THE THE DOLLARS ARE ASTRONOMICALLY SIGNIFICANT, THAT THAT'S THE, THE FOCUS THAT WE NEED TO DECIDE ON IS WHETHER WE COULD AFFORD TO DO THAT ISSUE.
AND SO ANYWAY, AGAIN, I'M LEARNING ABOUT THIS PROCESS.
I'M TRYING TO UNDERSTAND WHAT THE ISSUE IS. CERTAINLY ENVIRONMENTAL IS A TREMENDOUS ISSUE THAT WE NEED TO BE PROTECTIVE OF AND, AND, AND PREVENT AND PROTECT OUR CITIZENS AND OUR, AND OUR, THE AREAS FOR.
HOWEVER, WE HAVE TO, WE HAVE TO ALSO BALANCE THAT AGAINST THE THE ECONOMIC IMPACT FOR THE CITY TO BE ABLE TO FIGURE OUT IF THERE'S A A SIGNIFICANT COST BENEFIT FOR US TO BE PURSUING THIS AMORTIZATION PROCESS.
COUNCIL MEMBER GRACEY. CHAIR WEST. CHAIR. RIDLEY.
THANK YOU, MR. CHAIR. SO, STAFF, CAN YOU OUTLINE WHAT THE STEPS IN THIS PROCESS WOULD BE ON A SEQUENTIAL BASIS? AND AT WHAT POINT YOU WOULD COME BACK TO THE COMMITTEE AND OR THE COUNCIL TO FOR APPROVALS? YEAH. I'LL START AND THEN ANDREEA CAN JUMP IN.
SO AND ALSO TO ADDRESS COUNCIL MEMBER EARLIER QUESTION, THIS IS NOT A STAFF RECOMMENDATION.
THIS WAS A FIVE SIGNATURE MEMO REQUESTING A COUNCIL RESOLUTION TO GO DO THIS PRICING EXERCISE.
SO PER THE, PER THE FIVE SIGNATURE MEMO AND THE RESOLUTION, ONCE WE HAVE THE VALUATION PROVIDED BY THE INDEPENDENT CONSULTANT, WE HAVE TO COME IN FRONT OF THE ECONOMIC DEVELOPMENT COMMITTEE, A COUNCIL COMMITTEE, TO LET YOU KNOW THE AMOUNT, AND THEN IN FRONT OF COUNCIL, SO THE AMOUNT CAN BE ALLOCATED TO THE NON-CONFORMING FUND.
THERE. THE CRITERIA IS OUTLINED IN THE CODE. IF BOARD OF ADJUSTMENT MAKES A A FINDING THAT THESE TWO LOCATIONS DO NOT, OR THESE TWO OPERATIONS DO NOT BELONG AT THE CURRENT LOCATION AND THEY NEED TO CEASE OPERATION, THE, THOSE, THOSE PROPERTIES THEN DO HAVE AN OPTION TO EITHER TAKE THE MONEY THAT ARE ALLOCATED IN THE NON-CONFORMING FUND OR TO CONTINUE TO OPERATE UNTIL THEY REACHED THE EXPECTED AMOUNT. AND THAT'S PRETTY MUCH IN A NUTSHELL.
THIS IS THE SMALL FIRST STEP OR VERY CRUCIAL FIRST STEP TO UNDERSTAND WHAT IS THE FUND OR THE IMPLICATION THE MONETARY IMPLICATION IF BOARD OF ADJUSTMENT WOULD REACH, IF COUNCIL INITIATED WOULD REACH A DETERMINATION THAT THEY NEED TO BE AMORTIZED OUT.
[00:55:09]
AND AS I UNDERSTAND THE STATE LEGISLATION RECENTLY ADOPTED IN THE SUBJECT, IF THE CITY DECIDES TO TERMINATE THE USE AND WE AT THEIR OPTION PAID THE AMORTIZATION AMOUNT, THEY COULD, THEY, THAT WOULD NOT AFFECT THE OWNERSHIP OF THE PROPERTY. THEY WOULD CONTINUE TO OWN THE PROPERTY.IS THAT CORRECT? IN OTHER WORDS, THE CITY ISN'T BUYING THE PROPERTY THROUGH THIS PROCESS.
THAT IS CORRECT. OKAY. DOES CITY STAFF HAVE ANY IN-HOUSE CAPABILITY TO GIVE AT LEAST A ROUGH ESTIMATE OF WHAT THE AMORTIZATION COST WOULD BE FOR THESE INDUSTRIES, BASED ON ANY KINDS OF STANDARD RULES OF THUMB? COUNCIL MEMBER WE DO NOT. THIS IS THE FIRST TIME THAT WE HAVE TO DO THIS, AND WE THINK THAT WE DO NOT HAVE THE COMPETENCIES TO MAKE A VALUATION ON OPERATIONS. SO WHAT KIND OF A CONSULTANT WOULD HAVE THAT CAPABILITY? OR WOULD YOU JUST SEND OUT AN RFQ AND WAIT FOR PEOPLE TO RESPOND? YES, I WAS CHOOSING MY WORDS. WE WILL INITIATE A NORMAL PROCUREMENT PROCESS AND WE WILL OUTLINE IN OUR RFQ WHAT WE NEED THIS STUDY TO ACCOMPLISH, WHICH WOULD BE ALSO WHAT THE CHAIR JUST OUTLINED EARLIER AND TO COMPLY WITH OUR CODE.
OKAY. SO IF STAFF DOES THAT, THEY GET A PREFERRED APPLICANT.
WOULD YOU THEN BE REQUIRED TO COME BACK TO THE COUNCIL FOR APPROVAL OF CONTRACTING WITH THAT CONSULTANT, OR WOULD THAT DEPEND UPON THE DOLLAR AMOUNT OF THE CONTRACT? THE WHAT COUNCIL IS GOING TO TAKE ACTION RIGHT NOW IS TO BASICALLY ALLOCATE THE $200,000 FOR US TO PROCURE THAT CONSULTANT.
SO WE WOULD NOT COME BACK UNLESS IT COMES OUT MORE EXPENSIVE.
OKAY. AND WHAT IS THE $200,000 COST BASED ON? WE, WE BASED IT ON THIS INTERNAL DISCUSSION ON WHAT USUALLY TAKES FROM A CONSULTANT WE CONSULTED WITH REAL ESTATE THEY'RE MORE VERSED INTO CONTRACTING SUCH CONTRACTORS AND THEY TOLD US THAT THIS WOULD BE A FAIR AMOUNT.
SO WHAT ARE YOU, WHAT ACTION ARE YOU ASKING FOR FROM THE COMMITTEE TODAY, IF ANY? ESSENTIALLY, WE'RE JUST ASKING THE COMMITTEE TO ENDORSE PLACING THIS ITEM FROM THE FIVE SIGNATURE MEMO ON THE NEXT AVAILABLE COUNCIL AGENDA TO AUTHORIZE STAFF TO BEGIN THE PROCUREMENT, TO HIRE THE VENDOR TO DO THE EVALUATION.
OKAY. AND IF CITY COUNCIL DOES THAT, THEN THAT WILL BE AUTHORIZATION FOR THE STAFF TO ACTUALLY HIRE THE CONSULTANT CONTRACT TO PAY THEM WHATEVER THE BID IS. YES. WITHOUT HAVING TO COME BACK TO COUNCIL.
CORRECT. OKAY. THANK YOU. COUNCIL MEMBER BLAIR.
YOU COULDN'T. YOU SAID THERE WAS TWO. IT WOULD COST ABOUT $200,000 FOR A CONSULTANT.
CORRECT. TO LOOK AT THE PROCESS. AND YES, WE TRIED TO HAVE AN AN EDUCATED GUESS ON HOW MUCH IT WOULD COST. AND THE AMORTIZATION PROCESS. YOU DON'T KNOW HOW LONG, HOW MANY YEARS IT WOULD TAKE IF WE, IF THE CONSULTANT SAID THIS PROPERTY IS WORTH THIS AMOUNT OF MONEY. I'M TRYING TO I'M TRYING TO CHOOSE HOW TO ASK THIS QUESTION.
IF THE, THE CONSULTANT COMES BACK AND SAYS IT'S, IT PUTS A PRICE TAG ON EACH PIECE OF PROPERTY.
AND. THE, THE, THE, THE, THE, THE BUSINESSES HAVE CHOICES TO MAKE AS TO WHAT IT IS THEY WANT TO DO. HOW DO WE KNOW HOW MANY? AND WE DON'T KNOW EXACTLY HOW MANY YEARS IT WOULD TAKE TO DO THE AMORTIZATION PROCESS FOR EACH PROPERTY. SO THAT IS SOMETHING THAT BOARD OF ADJUSTMENT CAN DECIDE WHEN THEY MAKE THEIR DECISION.
[01:00:02]
THAT IT DOES NEGATIVELY IMPACT THE SURROUNDINGS, AND IT MEETS ALL THE CRITERIA AND WILL GIVE THEM A DATE WHEN TO CEASE OPERATION.THERE IS LANGUAGE IN THE CODE THAT SAYS THAT AFTER THE BOARD OF ADJUSTMENT DECISION, IF THEY DECIDE THAT NEEDS TO BE AMORTIZED AND THEY NEED TO CEASE OPERATION, THE CODE SAYS WITHIN TEN DAYS, AND THEN IT GIVES THEM ANOTHER 30 DAYS FOR OTHER STEPS IN THE PROCESS AND THEN ANOTHER TEN DAYS.
SO I WOULD SAY THAT IS PRETTY FAST ONCE BOARD OF ADJUSTMENT MAKES THEIR FINDINGS.
BUT OKAY, SO WITH TAMKO, YOU SAID THAT ITS LOCATION IS NEAR MCCOMAS BLUFF, WHERE IT SHOULD BE NEAR MCCOMMAS BLUFF. NO. COUNCILWOMAN CADENA ASKED ME WHAT ARE AREAS IDENTIFIED IN THE FUTURE LAND USE MAP BY FORWARD DALLAS THAT WOULD FIT HEAVY, SUCH HEAVY INDUSTRIAL USES THAT IF THEY CHOOSE TO RELOCATE.
BUT DOESN'T, NEAR MCCOMMAS BLUFF, ISN'T THAT NEAR A LOCATION THAT HAD AN AUTHORIZATION AUTHORIZE TEARING THAT THAT KIND OF TOOK THOSE TYPES OF USE AWAY? PROBABLY.
I DIDN'T DO A LAND USE ASSESSMENT, I APOLOGIZE.
OKAY. THANK YOU. COUNCIL MEMBER BAZALDUA. YES.
THANK YOU, MR. CHAIR. I APPRECIATE YOU HAVING THIS HEARD TODAY AND THANK YOU FOR MOVING IT UP.
I JUST WANT TO REITERATE THAT THERE'S BEEN A LOT OF TALK OF THE AMORTIZATION PROCESS ITSELF.
THAT'S THAT'S NOT NECESSARILY WHERE THIS IS GOING.
THAT DOES REQUIRE MORE ACTION. THIS IS MORE SO THAT WE CAN HAVE NECESSARY INFORMATION.
I KNOW JUST AS COUNCIL MEMBER MENTIONED HER CONSTITUENTS AND MINE AS WELL HAVE BEEN ADAMANT ABOUT ASKING FOR US TO LOOK INTO SINCE IN THE IN THE LIGHT OF NEW LEGISLATION PASSED FOR US TO HAVE NECESSARY INFORMATION TO MAKE AN INFORMED DECISION THAT DOESN'T ALLUDE TO THERE BEING ONE SPECIFIC OUTCOME OR ANOTHER.
IT'S, IT'S CLEARLY SEEING WHAT, WHAT OPTIONS MAY OR MAY NOT BE VIABLE.
AND IT'S ALSO A VERY NEW PROCESS BECAUSE OF LEGISLATION.
SO I WANT TO THANK. FINDING WHERE THIS WOULD COME UP.
HE, HE SPOKE WITH CONSTITUENTS AT OUR BUDGET TOWN HALL MEETINGS LAST FALL.
BUT I WANT TO MAKE IT VERY CLEAR, THOUGH, TO THE PUBLIC AND THE MEDIA, BECAUSE THEY HAVE ASKED A LOT OF QUESTIONS THAT THIS IS ABOUT GETTING MORE INFORMATION AT THE MOMENT. ONE THING I DO WANT TO CORRECT, THOUGH, MR. CHAIR, IS THAT THIS WAS DONE THROUGH A FIVE SIGNATURE MEMO. SO ALTHOUGH I HEARD ROBIN ASK FOR RECOMMENDATION, IT'S ULTIMATELY NOT NECESSARY AS IT WILL HAVE TO BE ON A COUNCIL AGENDA PER OUR RULES OF PROCEDURE.
SO WE WILL HAVE THE ABILITY TO TAKE AN UP OR DOWN VOTE ON WHETHER OR NOT WE FUND, WHICH IS WHY I BELIEVE IT CAME AS A BRIEFING MEMO ANYWAY TODAY AND I WANT TO THANK STAFF FOR GETTING IT TO THE AGENDA FOR US.
THANK YOU. COUNCIL MEMBER. I AGREE THIS IS A LONG TIME COMING.
AND, AND I ALSO AGREE THAT THE ENTIRE COUNCIL SHOULD BE ABLE TO WEIGH IN ON THIS.
OBVIOUSLY ENVIRONMENTAL IMPACT ISSUES ARE VERY CONCERNING TO OUR CONSTITUENTS.
ON THE 200,000, WHAT IS THE SOURCE? THE FUNDING SOURCE.
AND IS THAT AVAILABLE? THE MEMO, THE FIVE SIGNATURE MEMO MENTIONS ALL THIS INFORMATION.
IT'S IN THE CONTINGENCY FUND. AND IT WOULD BE BASICALLY THE MONEY WOULD BE MOVED FROM THE CONTINGENCY FUND INTO OUR FUND SO WE CAN ENGAGE THEM. WHAT OTHER WHAT ARE OTHER USES OF THE CONTINGENCY FUND? I'D HAVE TO ASK JACK IRELAND TO ANSWER THAT QUESTION.
OKAY. AND WHERE WOULD DOLLARS COME FOR IN THE EVENT THAT THE CONSULTANT CAME UP WITH A VALUE WHERE WOULD THOSE DOLLARS COME FROM TO PUT INTO THE ACTUAL AMORTIZATION FUND? WE WOULD HAVE TO COME BACK WITH THAT RECOMMENDATION. ONCE WE KNOW THE DOLLAR AMOUNT, WE DON'T HAVE THAT RECOMMENDATION YET.
OKAY. OKAY. AND AS FAR AS THE CONSULTANT THAT WE MOVE FORWARD WITH KNOWING THAT
[01:05:08]
WE HAVEN'T DONE THIS PREVIOUSLY, WHAT EXPERTISE ARE WE LOOKING FOR? HOW DO WE KNOW WE'RE HIRING THE RIGHT CONSULTANT TO BE ABLE TO DO A DETERMINATION ON THE VALUE? IT WILL GO TO THE NORMAL PROCUREMENT PROCESS, AS I SAID, LIKE WE WILL DETAIL IN OUR RFQ WHAT WE'RE LOOKING FOR AND THEY NEED TO PROVE THAT THEY HAVE COMPETENCY TO DO THIS TYPE OF EVALUATION BASED ON THEIR EXPERTISE.SO WE WOULD FOLLOW NORMAL PROCUREMENT PROCESSES.
OKAY. ROBIN, DO WE CURRENTLY HAVE A ECONOMIC IMPACT STUDY ON THE VALUE THAT THESE BUSINESSES ARE CONTRIBUTING TO THE CITY? NO, I DON'T BELIEVE NO, WE DON'T.
OKAY. WHAT WOULD WE NEED TO DO IN ORDER TO HAVE THAT? WOULD THAT BE SOMETHING THE CONSULTANT COULD DO AS WELL? I THINK THAT WE WOULD BE PART OF THIS.
RIGHT? SO THEY'RE EVALUATING THE, THE VALUE OF THE COMPANY.
AND SO I WOULD THINK THAT AN ECONOMIC IMPACT, I'M ASSUMING YOU'RE TALKING ABOUT TAX PAYMENTS TO THE CITY AND THAT KIND OF THING. I WOULD ASSUME THAT WOULD BE PART OF THE ANALYSIS, BUT WE'LL MAKE SURE TO PUT IT IN THE SCOPE TO MAKE SURE IT IS PART OF THE ANALYSIS.
OKAY. AND JUST TO BE CLEAR LET'S SAY THIS COUNCIL DECIDED TO MOVE FORWARD WITH IN ADOPTING THE, THE BUYOUT AMOUNT, THE BUSINESS WOULD STILL BE ALLOWED TO CONTINUE OPERATING? NOT THE BUSINESS WILL NOT THE, THE PURPOSE OF THE WHOLE PROCESS IS TO DECIDE IF THE OPERATION CAN CONTINUE TO.
BUT IT DEPENDS ON WHAT ROUTE THEY CHOOSE. OKAY.
AND SO THERE'S, THERE'S TWO BUSINESSES IN PARTICULAR.
AND SO WOULD THAT VALUE BE DETERMINED BY THE CONSULTANT AS WELL UP UNTIL THAT TIME THAT THEY'RE LEAVING? I DON'T THINK THAT'S AN AGREEMENT WITH ANY OF MY OFFICE.
SO I'M NOT AWARE OF THAT. OKAY. AND THEN FINAL QUESTION ON MY END IS, LET'S SAY THAT WE'RE SUCCESSFUL IN BUYING OUT A ONE OF THE BUSINESSES. THEY THEY HAVE THE ABILITY TO REFILE AND TO OPEN OPERATION IN ANOTHER PART OF THE CITY? AS ANYBODY, ANYBODY HAS THE RIGHT TO ASK, YES.
OKAY. ALL RIGHT. ANY OTHER QUESTIONS? COUNCIL MEMBER RIDLEY.
ONE FINAL QUESTION. AT WHAT POINT IN THE PROCESS WOULD THE CITY HAVE TO HAVE FUNDS IDENTIFIED IN ORDER TO PAY OUT THE ONE OR BOTH OF THESE INDUSTRIES IN ORDER TO CEASE THIS USE.
IS IT BEFORE OR AFTER THE BOARD OF ADJUSTMENT MAKES ITS DECISION? THE MONEY NEEDED. SO THE THE NON CONFORMING FUND NEEDS TO MAKE TO HAVE MONEY IN IT.
SO THE PROCESS CAN CONTINUE. BECAUSE IF THE OPERATOR AGAIN DEEMED BY BOARD OF ADJUSTMENT THAT IT MUST CEASE OPERATION, THEY HAVE AN OPTION TO CHOOSE THE PAYOUT. SO THE MONEY ALLOCATED IN THE NON CONFORMING FUND I WOULD SAY NEED TO BE PRIOR TO THE INITIATION, OKAY. OR WHATEVER COUNCIL DECIDES. BUT I DON'T I DON'T THINK WE HAVE IT SPECIFICALLY SPECIFIED IN THE CODE THAT FIRST YOU HAVE THE MONEY, THEN YOU INITIATE. I THINK THAT'S WHAT WE THOUGHT.
WELL, I, I KNOW THAT THE MONEY HAS TO BE AVAILABLE SHOULD THE INDUSTRY DECIDE THEY'LL TAKE THE CASH AND WE HAVE TO PAY IT ALMOST IMMEDIATELY, DON'T WE? WELL, AGAIN, IF BOARD OF ADJUSTMENT MAKES THE FINDING THAT THEY NEED TO CEASE OPERATION, THEY HAVE THE OPTION TO EITHER TAKE THE MONEY, EITHER CONTINUE TO OPERATE UNTIL THEY REACH THE AMOUNT AGREED.
THAT IS CORRECT, YES. AND THEN CAN THE INDUSTRY CHALLENGE THAT FIGURE? WE'VE ALREADY GOTTEN CORRESPONDENCE FROM THEM TELLING US HOW MUCH THEY THINK THE NUMBER IS.
AND IT WAS HUNDREDS OF MILLIONS OF DOLLARS. SO IF OUR CONSULTANT COMES BACK LESS THAN THAT, DO THEY HAVE THE RIGHT TO CHALLENGE THAT? THAT IS A GREAT QUESTION.
I WOULD NEED TO COME BACK TO YOU WITH THAT. I THINK I NEED TO MAYBE MORE OF A LEGAL QUESTION.
YES, EXACTLY. I WAS GONNA SAY AND TALK TO THE ATTORNEY.
I, IT'S SOMETHING I'D BE INTERESTED IN THE ANSWER TO.
[01:10:01]
BY ANY KIND OF LEGAL DEADLINES OR ANY KIND OF, OF, YOU KNOW, IS THERE A, IS THERE A TIME CRITICAL SENSITIVITY IN GETTING THIS INFORMATION AND MAKING THIS DECISION RIGHT NOW? WHEN I SAY RIGHT NOW FOR THE COUNCIL TO AUTHORIZE THE, THE MOVING FORWARD ON CONSULTING? THERE'S NO TICKING CLOCK IN TERMS OF OUR NEED TO MOVE FORWARD.IT'S JUST THAT IT'S A LONG PROCESS. SO COUNCIL ACTS AND THE PROCUREMENT.
ET CETERA. ET CETERA. THANK YOU. AND IS THE REASON THAT WE THAT THE PROCUREMENT IS NOT REQUIRED TO COME BACK TO US AFTER YOU'VE ESTABLISHED THE THE CONSULTANT BECAUSE THESE ARE IS THE 200,000 RELATED TO 100,000 TO EACH OF THE, OF THE CONSULTING CONTRACTS.
AND, AND THE REASON I'M ASKING THE QUESTION IS IT SEEMS LIKE TO ME THAT A $200,000 CONTRACT WE SHOULD, ISN'T THAT ABOVE OUR THE LIMIT OF, OF THE AUTHORIZATION OF STAFF TO APPROVE THOSE.
I THINK THE PRESUMPTION IS THAT THE CONTRACTS WOULD BE UNDER THE ADMINISTRATIVE APPROVAL THRESHOLD, BUT IF NOT, THEN YES, WE WOULD COME BACK TO COUNCIL FOR THOSE.
THIS IS NOT A CRITICAL ISSUE RIGHT NOW. $200,000 IS REAL MONEY TO ME.
AND I THINK THAT THAT WE IF THIS IS ALSO A COMPLICATED ISSUE.
THIS IS NOT A EVALUATION OF A PROPERTY. THIS ISN'T A REAL ESTATE VALUATION.
THIS IS A BUSINESS VALUATION. IT'S AN ONGOING CONCERN EVALUATION.
THIS IS A BIG DEAL. THIS ISN'T ABOUT HOW MUCH IS YOUR LAND WORTH.
AND SO THIS REQUIRES, I THINK, A LITTLE BIT MORE THOUGHTFULNESS.
IN THE ALLOCATION OF OUR FUNDS. AND QUITE FRANKLY, I'M CONCERNED ABOUT TRYING TO GET INFORMATION AND NOT BEING ABLE TO VET THAT INFORMATION WHEN IT'S A COMPLICATED ISSUE LIKE THIS. SO I WOULD, I WOULD RECOMMEND THAT WE DO NOT PROCEED WITH THIS AT THIS TIME, EVEN THOUGH I UNDERSTAND THAT IT'S A FIVE MEMO COUNCIL DECISION, BUT I WOULD SUGGEST THAT THERE NEEDS TO BE MORE VETTING ON THIS.
AND I DON'T KNOW PROCEDURALLY HOW WE WOULD DO THIS, BUT I WOULD CERTAINLY ASK THAT THAT THIS, THIS BE SOMEHOW MODIFIED TO REFLECT OUR BUDGETING ISSUES.
IT'S NOT AGAINST STAFF'S ABILITY. I THINK IT'S NOT PRUDENT.
SO IF IF STAFF AND COUNCIL CAN GIVE US SOME GUIDANCE ON HOW TO MOVE FORWARD.
MY UNDERSTANDING IS THAT THIS MOVES TO COUNCIL REGARDLESS WHETHER THEY'RE SUPPORT OR NOT.
ACTUALLY, I KNOW THE FIVE SITTING MEMBER WENT TO THE MAYOR'S OFFICE AND THE MAYOR REFERRED THE ISSUE TO THE COMMITTEE. I'M NOT SURE IF THE COMMITTEE HAS DISCRETION OR IF WE HAVE TO PUT IT ON THE AGENDA. SO I'LL ASK LISA OR LUCY OR SOMEONE ON THE CITY ATTORNEY'S OFFICE TEAM TO WEIGH IN ON THAT.
CHAIR MORENO THAT'S CORRECT. BECAUSE THIS IS A FIVE SIGNATURE MEMO, IT HAS TO GO TO COUNCIL WITHIN THE REQUISITE PERIOD OF TIME UNDER THE COUNCIL RULES OF PROCEDURE. SO THEN APRIL 22ND WOULD BE THE DATE WE WOULD PUT THIS ON FOR A VOTE.
OKAY. BUT WITH THAT, I WOULD ASK STAFF TO BE PREPARED WITH SOME OF THE QUESTIONS THAT WERE ASKED OF TODAY AND ASKED COUNCIL TO GET THOSE QUESTIONS IN AHEAD OF TIME AS WELL.
COUNCIL MEMBER CADENA. JUST FOR CLARIFICATION, FOR THOSE WATCHING, DOES AMORTIZATION REZONE THE PROPERTY? NO. AMORTIZATION MEANS THAT THE USES HAS NO LONGER LEGAL NONCONFORMING RIGHTS.
OKAY. AND THEN DOES AMORTIZATION REQUIRE ENVIRONMENTAL CLEANUP OF THE PROPERTY ONCE IT'S GONE THROUGH THE PROCESS? THAT'S A GOOD QUESTION. I WAS LOOKING IN THE CODE.
SO JUST FOR EVERYBODY'S PURPOSES I'M REFERENCING THE MEMO THAT IS ATTACHED TO THIS.
I'M TRYING TO LOOK THERE IS ALSO THE PROVISION IN THE CODE.
BUT I WILL MAKE A NOTE. OKAY. THANK YOU SO MUCH.
COUNCIL MEMBER WEST OR GRACEY? COUNCIL MEMBER BAZALDUA.
YEAH. THANK YOU. I APPRECIATE THE COMMENTS FROM MR.
[01:15:04]
ROTH. I JUST I JUST WANT TO REEMPHASIZE THOUGH, THIS IS YOU'RE RIGHT. IT'S A VERY BIG DEAL.IT'S A IT'S A VERY BIG DEAL. VERY BIG DECISION BECAUSE IT'S, IT'S A BIG DEAL IN A NEW PROCESS.
EVEN AT THAT, THERE'S, THERE'S QUITE FRANKLY, NO WAY TO MAKE A DECISION WITHOUT HAVING THE ADEQUATE INFORMATION SPECIFICALLY, JUST AS MENTIONED AS THE CHAIR MENTIONED, WITH ITS ITS VALUE AND ECONOMIC IMPACT TO OUR CITY.
AND THAT'S ALL COUNCIL MEMBER CADENA AND I ARE ASKING IS THE ABILITY TO MAKE INFORMED DECISIONS.
WE HAVE TO BE ABLE TO GO TO OUR CONSTITUENTS, WHETHER OR NOT THIS IS EVEN A VIABLE OPTION IF WE ARE TO GET NUMBERS BACK SIMILAR TO AS WHAT COUNCIL MEMBER RIDLEY MENTIONED HAD SIMILAR TO THE VALUE.
BUT THEN THAT GIVES US AN INFORMED ABILITY TO ANSWER THE CONCERNS OF OUR CONSTITUENTS AND HAVE SOUND REASONING ON WHY WE WOULD HAVE TO GO AND SUPPORT ONE SOLUTION VERSUS THE OTHER.
AND SO ALL I'M ASKING IS FOR US TO EQUIP OURSELVES WITH THE NECESSARY INFORMATION TO MAKE DECISIONS BASED ON, ON WHAT THE DATA TELLS US. AND I BELIEVE THIS ITEM WILL GET US TO THAT POINT.
REGARDING THE FUNDS, WHEN WHEN DISCUSSING THIS DURING BUDGET SEASON, SPECIFICALLY WITH JACK, THIS DOESN'T APPEAR TO BE TAKING FUNDS AWAY FROM ANY ANYTHING CRITICAL.
IN FACT, THIS IS IS ONE OF THE INTENDED PURPOSES OF HAVING A CONTINGENCY FUND WHEN THERE IS UNEXPECTED COSTS, ESPECIALLY ONE TIME COSTS WHEN IT COMES TO CONSULTING OR BRINGING UP APPRAISALS, ETC..
THIS IS ONE OF THOSE EXPENSE LINES FOR IT. SO ULTIMATELY, AGAIN, THIS IS A NEW PROCESS.
I THINK THAT THERE IS VERY LIKELY TO BE IN THE FUTURE SIMILAR PROCESSES COME UP IN OTHER COUNCIL MEMBERS DISTRICTS AND I WOULD EXPECT FOR ALL OF US TO WANT EACH OTHER TO HAVE AS MUCH DATA AS WE CAN TO MAKE AS INFORMED OF DECISION AS WE COULD AND FORWARD THROUGH THIS PROCESS. IT WOULD BE AN INTENT OF MINE TO SUPPORT YOU ALL HAVING THAT NECESSARY INFORMATION. AND, AND OVERALL YOU KNOW, ONCE WE HAVE THAT INFORMATION, THE SUBSEQUENT ACTIONS THAT WOULD BE NECESSARY TO INITIATE THE BOARD OF ADJUSTMENTS TO ALLOCATE NECESSARY FUNDING, ETCETERA. THOSE TO ME ARE GOING TO BE MORE OF THE CONTENTIOUS ACTIONS, THE ONES THAT I THINK THAT IT SHOULD BE MORE OF A DEBATE AND NOT A RUBBER STAMP, BUT I ASK THAT YOU DON'T TAKE THE CART BEFORE THE HORSE AND AT LEAST ALLOW US TO, TO GET NECESSARY INFORMATION TO MAKE THOSE DECISIONS AND TO HAVE THOSE HARDER DEBATES AT A LATER DATE.
THANK YOU, MR. CHAIR. THANK YOU. COUNCIL MEMBER THANK YOU, MR. CHAIR, AND FURTHERANCE OF COUNCILMAN BAZALDUA REQUEST FOR NECESSARY INFORMATION TO MAKE AN INFORMED DECISION, I'D LIKE TO REQUEST THE STAFF PROVIDE THE FULL COUNCIL AT THAT BRIEFING THE CURRENT ZONING OF THESE PROPERTIES.
SO ALONG WITH THE LIST OF MAJOR USES THAT ARE PERMITTED IN THOSE DISTRICTS SO THAT WE CAN ASSESS IF WE WERE TO REMOVE THIS BUSINESS, WHAT THAT LAND COULD ULTIMATELY BE USED FOR. THANK YOU SO MUCH.
COUNCIL MEMBER RIDLEY. WE WILL DO SO. I WOULD NOTE THAT IN THE MEMO WE ALREADY NOTED THE CURRENT ZONING FOR THE SINGLETON PROPERTY IS IR, WHICH IS INDUSTRIAL RESEARCH. HOWEVER, THAT PROPERTY IS INCLUDED IN THE AUTHORIZED HEARING THAT IS NOW BEING IN THE WORKS IN DISTRICT SIX.
SO THAT ZONING MAY BE CHANGED BY COUNCIL AS WELL.
WE WILL ACCOMPANY BY THE LIST OF USES THAT ARE ALLOWED IN THIS DISTRICT.
THANK YOU. STAFF, THANK YOU FOR THE PRESENTATION.
AGAIN THIS IS A BIG DECISION THAT I DON'T THINK ONE COMMITTEE ALONE SHOULD BE MAKING.
AND SO I'M GLAD THAT THIS IS GOING TO BE MOVING FORWARD TO THE ENTIRE COUNCIL.
SO IT'S IMPORTANT TO HEAR FROM FROM ALL COUNCIL MEMBERS.
AND AGREED, YOU KNOW, THAT AS IMPORTANT AS WE MAKE THESE DECISIONS MOVING FORWARD.
SO EXPECT THIS TO BE FORWARDED TO THE FULL COUNCIL FOR CONSIDERATION.
THANK YOU. THANK YOU. ALRIGHT, NOW
[01:20:04]
WE WILL GO BACK ON SCHEDULE WITH BRIEFING ITEM A.GOOD AFTERNOON, CHAIRMAN, HONORABLE MAYOR, MEMBERS OF THE COMMITTEE.
I'M KEVIN SPATH, DIRECTOR OF THE OFFICE OF ECONOMIC DEVELOPMENT.
TO MY RIGHT IS HEATHER LEPESKA, THE DEPUTY DIRECTOR.
WE'RE GOING TO TALK ABOUT OPPORTUNITY ZONES. AND I WANT TO START WITH ONE SIMPLE STATEMENT THAT OPPORTUNITY ZONES IS A FEDERAL PROGRAM. LET ME SAY THAT ONE MORE TIME. OPPORTUNITY ZONES IS A FEDERAL PROGRAM.
IN THIS BRIEFING, WE'LL GIVE A QUICK RECAP OF THE INITIAL OZ PROGRAM THAT WAS ENACTED IN 2017.
WE WILL WALK YOU THROUGH THE CITY'S ONLY ROLE IN THE NEW OPPORTUNITY ZONE PROGRAM, AND THAT IS THE NOMINATION OF ELIGIBLE CENSUS TRACTS TO THE GOVERNOR'S OFFICE, AND WE WILL EXPLAIN THE GOVERNOR'S OFFICE TIMELINE AND THE PROCESS THAT WE ARE RECOMMENDING TO MEET THAT TIMELINE.
NEXT SLIDE. AND KEVIN JUST COVERED THIS SO I WILL NOT.
SO THE NEXT SLIDE. THE OPPORTUNITY ZONE PROGRAM WAS INITIALLY CREATED IN 2017 TO SPUR INVESTMENT IN ECONOMICALLY DISTRESSED COMMUNITIES. AS KEVIN MENTIONED, THE PROGRAM IS ADMINISTERED BY THE US DEPARTMENT OF TREASURY AND IT REALLY IS A FEDERAL PROGRAM.
UNDER THE EXISTING PROGRAM, 97% OF THESE ELIGIBLE CENSUS TRACTS ARE QUALIFIED AS LOW INCOME COMMUNITIES, WHICH MEANS THEY HAVE A POVERTY RATE OF 20% OR HIGHER OR MEDIAN FAMILY INCOME OF 80% OR LOWER.
ALL OZ INVESTMENT MUST TAKE PLACE THROUGH A QUALIFIED OPPORTUNITY FUND, AND THE QUALIFIED OPPORTUNITY FUNDS ARE RUN BY THIRD PARTY INVESTMENT FUNDS. THIS MEANS THAT INDIVIDUALS CANNOT DIRECTLY INVEST IN AN OZ WITHOUT GOING THROUGH A FUND.
AS KEVIN MENTIONED, IT'S IMPORTANT TO NOTE THAT OUTSIDE OF NOMINATING CENSUS TRACTS TO THE GOVERNOR'S OFFICE, THE CITY HAS NO ROLE IN THE OZ PROGRAM. WE DON'T NOMINATE PROJECTS.
WE DON'T RECEIVE REPORTING INFORMATION, NOR DO WE PROVIDE ANY FUNDING FOR THE PROGRAM.
NEXT SLIDE. SO THERE ARE THREE POTENTIAL TAX BENEFITS UNDER THE OZ PROGRAM THAT RELATE TO THE EARNED CAPITAL GAINS. THE FIRST IS THAT THERE IS THE ABILITY TO DEFER CAPITAL GAINS, THE PAYMENT FOR UP TO TEN YEARS, THE ORIGINAL GAIN INVESTED BECOMES TAXABLE WHEN THE INVESTMENT IN THE QOF IS SOLD OR ON DECEMBER 31ST, 2026, WHICHEVER IS FIRST. THE SECOND BENEFIT IS THE REDUCTION OF CAPITAL GAINS PAYMENT THROUGH A STEP UP BASIS AT YEAR FIVE OF, AND THE STEP UP BASIS IS 10%, AND AT YEAR SEVEN, WHICH IS AN ADDITIONAL 5%.
SO UNDER THE 2017 PROGRAM, THESE FIVE YEAR OR SEVEN YEAR HOLDS HAD TO BE MET BY DECEMBER 31ST, 2026. SO THIS MEANS THAT AFTER 2019 OR 2021, THERE REALLY THIS BENEFIT WASN'T RECEIVED BY INVESTORS.
AND THEN THE THIRD BENEFIT IS IF THE INVESTOR HOLDS THE QOF INVESTMENT FOR AT LEAST TEN YEARS, WHEN THE INVESTOR SELLS OR EXCHANGES THE INVESTMENT, THE INVESTOR IS ELIGIBLE TO ELIMINATE THE GAIN ON THE QOF INVESTMENT FROM ANY INCREASE IN THE VALUE OF THE QOF INVESTMENT DURING THE INVESTMENT HOLDING PERIOD.
THIS BASICALLY MEANS THAT NET APPRECIATION ON THE CAPITAL GAINS IS TAXED.
THEY DON'T HAVE TO PAY TAXES ON THAT. NEXT SLIDE.
SO IN 2017 WE WENT THROUGH A PROCESS TO DESIGNATE OPPORTUNITY ZONES.
AND UNDER THAT THOSE RULES, THE GOVERNORS CAN DESIGNATE UP TO 25% OF THEIR ELIGIBLE CENSUS TRACTS TO THE US DEPARTMENT OF TREASURY FOR CONSIDERATION FOR DESIGNATION AS AN OZ, MAYOR RAWLINGS SUBMITTED 62 CENSUS TRACTS TO THE GOVERNOR'S OFFICE.
AND THOSE ALL 628 WERE EVENTUALLY CONFIRMED BY TREASURY.
[01:25:09]
NEXT SLIDE. YEAH. SO ON THE NEXT SLIDE, YOU CAN SEE THAT WE HAD THE 15 CENSUS TRACTS THAT WERE DESIGNATED IN DALLAS AND THE 628 THAT WERE IN TEXAS. YOU CAN SEE THAT, YOU KNOW, THE TRACKS IN TEXAS REALLY WERE IN THE HOUSTON AREA TO REBUILD FROM HARVEY AND ALSO IN THE RIO GRANDE VALLEY. NEXT SLIDE.AND THEN IN TERMS OF IMPACT, YOU KNOW, BECAUSE THERE ISN'T REPORTING REQUIREMENTS UNDER THE FIRST ROUND OF THE PROGRAM, THE OZ THE IMPACT DATA IS INCOMPLETE. MULTIPLE STUDIES ESTIMATE THAT THE IMPACT IS ABOUT 100 BILLION THAT HAS BEEN INVESTED.
AND IT HAS REALLY BEEN FOCUSED ON REAL ESTATE AND HAS CREATED MORE THAN 300,000 HOUSING UNITS.
NEXT SLIDE. SO WE ARE NOW UNDER OPPORTUNITY ZONES 2.0.
THE NEW PROGRAM IS REFERRED TO AS OPPORTUNITY ZONES 2.0 AND IT WILL TAKE EFFECT JANUARY 1ST, 2027. THE PROGRAM AND NOMINATION PROCESS FOR DESIGNATING OZ CENSUS TRACTS HAVE BEEN REVISED.
NEXT SLIDE. IN TERMS OF CHANGES TO THE PROGRAM, THERE ARE FIVE PRIMARY ONES.
FIRST, THE PROGRAM IS PERMANENT. CENSUS TRACTS WILL BE REDESIGNATED EVERY TEN YEARS.
THE NEW TRACTS THAT ARE GOING TO BE DESIGNATED THROUGH THIS PROCESS WILL GO INTO EFFECT JANUARY 1ST, 2027. SECOND, IT CREATES A SPECIAL CLASS OF RURAL QUALIFIED OPPORTUNITY ZONES THAT DO RECEIVE AN ADDITIONAL BENEFIT, WHICH WE'RE EXPECTING TO INCREASE INTEREST IN RURAL OZ'S.
UNDER THE RURAL OZ DESIGNATION, THEY HAVE A HIGHER INCENTIVE, INCLUDING A 30% STEP UP BASIS AFTER FIVE YEARS AND REDUCED SUBSTANTIAL IMPROVEMENT REQUIREMENTS. THE THIRD IS THAT THERE ARE CHANGES TO ELIGIBILITY FOR THE CENSUS TRACTS FOR THE OZ DESIGNATION.
THIS INCLUDES REDUCING THE REQUIRED MULTIFAMILY OR MEDIAN FAMILY INCOME FROM 80% TO 70%.
THE POVERTY RATE REMAINS AT 20%. IT CHANGES THAT CONTIGUOUS TRACTS ARE NO LONGER ALLOWED.
AND WHAT WE EXPECT IS THAT THIS WILL REDUCE THE TOTAL NUMBER OF ELIGIBLE TRACTS BY ABOUT 25%.
AND THEN FOURTH, IT ADDS REPORTING REQUIREMENTS.
THE QOF'S SHOW WHICH ARE THE FUNDS MUST REPORT PROJECT LEVEL DATA TO THE IRS AND THE IRS MUST PROVIDE TRACT LEVEL DATA TO THE PUBLIC, WHICH MEANS WE'LL HAVE BETTER RESULTS AND BETTER IMPACT INFORMATION.
AND FINALLY, IT PROVIDES ENHANCED TAX BENEFITS.
NEXT SLIDE. SO WE ARE STILL WAITING FOR THE OFFICIAL LIST OF ELIGIBLE TRACTS TO BE RELATED TO BE RELEASED FROM THE TREASURY. RIGHT NOW WE'RE WORKING ON A LIST OF PRESUMED ELIGIBLE, TRACTS THAT WE RECEIVE FROM THE STATE OF TEXAS.
SO THAT THE OFFICIAL LIST SHOULD COME OUT SPRING 2026.
SO WE'RE EXPECTING IN THE NEXT 2 OR 3 WEEKS. ON JUNE 26TH, THE NOMINATIONS TO THE GOVERNOR'S OFFICE ARE DUE FROM THE CITIES AND THE OTHER ENTITIES THAT ARE MAKING RECOMMENDATIONS. JULY 1ST IS THE EARLIEST DATE THAT THE GOVERNOR'S OFFICE CAN NOMINATE CENSUS TRACTS TO TREASURY.
AND THEN ON JANUARY 1ST, 2027, THE NEW DESIGNATIONS WILL TAKE EFFECT.
NEXT SLIDE. OKAY. SO AS MENTIONED, TO BE ELIGIBLE, A TRACT MUST EITHER HAVE A MEDIAN FAMILY INCOME OF LESS THAN 70% OR HAVE A POVERTY RATE OF GREATER THAN 20% AND A MEDIAN FAMILY INCOME OF LESS THAN 125% OF THE STATE OR METRO MEDIAN FAMILY INCOME. SO ON THIS MAP, THE AREAS IN THE BUFF AND BLUE ARE WHAT WE RECEIVE FROM THE STATE.
ON THE BEST GUESS FOR ELIGIBLE CENSUS TRACTS USING THIS REQUIREMENT.
AND THEN WE OVERLAID THE EXISTING OPPORTUNITY ZONES.
THOSE ARE THE AREAS IN RED. YOU'LL SEE THAT OF THE 15, ONE IS NO LONGER ELIGIBLE.
[01:30:05]
AND A COUPLE DO FALL INTO THIS INSUFFICIENT INFORMATION DESIGNATION FOR RIGHT NOW.NEXT SLIDE. SO THE OFFICE OF ECONOMIC DEVELOPMENT AND TOURISM AND THE GOVERNOR'S OFFICE WILL LEAD THE EFFORT TO DEVELOP A TRANSPARENT AND DATA DRIVEN SELECTION PROCESS FOR DESIGNATION OF CENSUS TRACTS UNDER OZ 2.0.
THIS TIME THEY WILL BE SCORING EACH OF THE TRACTS THAT WE SUBMITTED.
AND SO EACH TRACT CAN EARN UP TO TEN POINTS BASED ON FOUR CRITERIA.
THE SECOND IS LOCAL SUPPORT. WHICH UP TO FOUR POINTS CAN BE AWARDED.
AND THIS INDICATES THAT THERE ARE LOCAL INCENTIVES AVAILABLE AT THAT CENSUS TRACT.
NEXT PAGE. THE THIRD IS PROJECT VIABILITY WHICH IS A FOCUS ON SHOVEL READY SITES WHERE PRIVATE CAPITAL CAN DEPLOY QUICKLY AND SUPPORT INCLUSIVE GROWTH IN THE COMMUNITY.
AND THEN THE FINAL POINT, FINAL TWO POINTS ARE FOCUSED ON GEOGRAPHIC BALANCE.
ONE POINT FOR RURAL, WHICH IS SOMETHING DALLAS WOULD NOT QUALIFY FOR AND ONE POINT FOR DECLARED DISASTER, WHICH THE CITY DOES MEET DUE TO A STORMS IN SEPTEMBER OF 2024 THAT IMPACTED DALLAS AND COLLIN COUNTY.
IT'S ALSO IMPORTANT TO NOTE THAT EACH NOMINATED TRACT MUST INCLUDE DETAILED SCORING INFORMATION, AND IT IS BY TRACT, SO WE HAVE TO HAVE A LOT OF INFORMATION PER EACH SUBMISSION.
NEXT PAGE. SO GIVEN THE SCORING CRITERIA, WE HAVE DEVELOPED A WORKING MAP OF OZ TRACTS. WE'VE BACKED OUT THE TRACTS THAT HAVE INSUFFICIENT DATA ARE LOCATED WITHIN FLOOD ZONES, DO NOT ALIGN WITH ANY CITY INCENTIVE PROGRAM, OR ARE COMPRISED OF LESS THAN 25% COMMERCIAL PROPERTY, WHICH ALIGNS TO A HIGHLY SINGLE FAMILY RESIDENTIAL NEIGHBORHOOD.
SO THE MAP THAT'S SHOWN IN BLUE HAS A 132 CENSUS TRACTS REMAINING.
NEXT SLIDE. SO THE MAXIMUM NUMBER OF TRACTS IS, YOU KNOW, SOMEWHERE BETWEEN 132 AND 146.
UNDER THE GOVERNOR'S OFFICE REQUIREMENTS, THE CITY CAN NOMINATE UP TO 80% OF THOSE ELIGIBLE TRACTS.
BUT GIVEN THE SCORING CRITERIA AND THE AMOUNT OF DOCUMENTATION REQUIRED FOR EACH NOMINATED TRACT, OED ANTICIPATES A MUCH SMALLER SUBSET OF CENSUS TRACTS FOR NOMINATION.
NEXT SLIDE. NEXT SLIDE. SO IN TERMS OF NEXT STEPS, TODAY WE'RE SEEKING SOME GENERAL FEEDBACK ON THE WORKING MAP INITIAL REVIEW CRITERIA. THE PROCESS WE WILL AS SOON AS TOMORROW WE WILL POST A WORKING MAP ON WITH POTENTIAL OZ CENSUS TRACTS THAT WILL INCLUDE BOTH THE ELIGIBLE AND THE INSUFFICIENT INFORMATION AND A FORM FOR THE PUBLIC TO PROVIDE FEEDBACK TO OUR OFFICE.
AND THEN ON JUNE 26TH, WE WILL SUBMIT THE RECOMMENDATIONS TO THE GOVERNOR'S OFFICE.
NEXT SLIDE. AND WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS.
THANK YOU, HEATHER, FOR THE PRESENTATION. I'M GOING TO START WITH CHAIR WEST.
SO LOOKING AT I THINK IT WAS SLIDE 14, I THINK THAT KIND OF I GUESS BY PROCESS OF ELIMINATION, IF I UNDERSTAND YOU, THAT LEFT US WOULD HAVE ROUGHLY ABOUT BETWEEN 132 AND 146 CENSUS TRACTS.
IF A CENSUS TRACT IS IDENTIFIED WITHIN A PARTICULAR DISTRICT.
AND THIS IS WHERE I'M GOING WITH THIS, BECAUSE WITH SOME OF THE PROPOSED HOUSING CHANGES AND ALL OF THAT, I'M TRYING TO MAKE SURE IF WE SELECT IF WE CREATE AN AREA THAT IS AN OPPORTUNITY ZONE, DOES THAT AUTOMATICALLY.
AND I KNOW I'M ASKING THE WRONG GROUP, BUT I'M TRYING TO PUT THESE TWO PIECES TOGETHER.
IF A CENSUS TRACT IS IDENTIFIED IN SAY, DISTRICT THREE, DOES THAT NOW AUTOMATICALLY WITH SOME OF THE PROPOSED CHANGES THAT WE'RE DOING WITH THE HOUSING POLICY, DOES THAT NOW AUTOMATICALLY MAKE THEM ELIGIBLE FOR SOME OF THE HOUSING POLICIES? DO YOU UNDERSTAND WHAT I'M ASKING ON THAT, OR IS IT BECAUSE I KNOW YOU SAID IT'S TWO SEPARATE THINGS.
THE CITY DOESN'T HAVE ANYTHING TO DO WITH IT, BUT I GUESS BY CAUSE AND EFFECT, I'M TRYING TO SEE,
[01:35:03]
OKAY, IF I WITH THE INTENTION OF TRYING TO DO SOMETHING, YOU KNOW, IN THIS PARTICULAR AREA, DOES THAT THEN AUTOMATICALLY MAKE IT ELIGIBLE FOR WHAT'S BEING PROPOSED IN THE HOUSING POLICY CHANGES ACCORDING TO THE 20%? THE RATE. THANK YOU. SOMEBODY COME HELP ME. YEAH.I MEAN, THE SHORT ANSWER IS THEY'RE TOTALLY EXCLUSIVE.
I GET THAT PART RIGHT. THE OTHER ANSWER IS, YOU KNOW, OZ'S IS REALLY PRIVATE FUNDING.
AND SO IF YOU HAVE AN OZ DESIGNATED CENSUS TRACT AND IT'S RECOGNIZED, IT SHOULD, IN THEORY, DRAW ADDITIONAL PRIVATE FUNDING TO THAT DESIGNATED CENSUS TRACT.
SO IT WOULD COMPLEMENT POTENTIALLY WHAT'S BEING DONE THROUGH THE HOUSING POLICY.
BUT IT WOULD BE THEY'RE MUTUALLY EXCLUSIVE. OKAY, OKAY.
YEAH, JUST I'LL SAY IT A LITTLE PLAINER. THERE'S NO CITY FUNDING TIED TO THESE.
THERE'S NO CITY INCENTIVE PROGRAM TIED TO THESE.
YOU GET NOTHING EXTRA FROM THE CITY. IF YOU'RE IN ONE OF THESE, YOU GET NOTHING EXTRA FROM THE STATE. IF YOU'RE IN ONE OF THESE IT'S JUST A FEDERAL TAX INCENTIVE. AND OUR ONLY ROLE IS MAKING THIS NOMINATION.
YOU'RE STILL THE SAME UNDER THE HOUSING POLICIES YOU WERE.
AND I GOT THAT PART. I GET THEY ARE SEPARATE.
I JUST DON'T, YOU KNOW, IN SUPPORTING THIS, WHICH IS HAPPENING AND IDENTIFYING, I DON'T WANT TO ACCIDENTALLY IDENTIFY AN AREA IN THE DISTRICT THAT COULD QUALIFY AND BENEFIT FROM THIS AREA. BUT IN DOING SO, IT NOW SAYS, BECAUSE WITH SOME OF THE CHANGES THAT WERE BEING PROPOSED IN THE HOUSING PIECE, THEN SAYS, WELL, NOW IT OPENS IT UP TO WHERE I CAN NOW AUTOMATICALLY GET MORE LOW INCOME DEVELOPMENT THAT COMES OVER THERE BECAUSE IT IS AN OPPORTUNITY ZONE.
AND THERE IS NOT THERE IS NO SECRET LOOPHOLE TIE IN OF ANY KIND.
IT'S PURELY IF SOMEONE MAKES AN INVESTMENT THROUGH A QUALIFIED FUND IN A QUALIFIED OPPORTUNITY ZONE.
THEY RECOGNIZE CERTAIN FEDERAL TAX BENEFITS AND THAT'S IT.
IT'S NOT RELATED TO THE LIHTC PROGRAM OR ANY OF THE OTHER FEDERAL TAX PROGRAMS. THE OTHER PART OF THAT IS THERE'S NO LIMITATIONS ON WHAT A QUALIFIED OPPORTUNITY ZONE PROJECT COULD BE.
SO IT'S NOT THERE'S NO REQUIRED. THERE'S NO IT'S IT'S VERY PRIVATE SECTOR DRIVEN.
I UNDERSTAND. SO IT'S OPEN TO WHATEVER AS LONG AS THAT FUND IS SUPPORTING THE PROJECT.
THAT'S REALLY THE THRESHOLD. THERE WILL BE REPORTING ON JOBS CREATED AND HOUSING UNITS CREATED, BUT THERE'S NO, YOU KNOW, SET ASIDES FOR AFFORDABLE HOUSING OR ANYTHING LIKE THAT.
THAT'S NOT PART OF THE PROGRAM. OKAY. AND THEN WHAT ABOUT WHY TEN YEARS? I MEAN, YOU THINK. AND I'M JUST TRYING TO PUT ALL THESE PIECES TOGETHER, WHY TEN YEARS VERSUS 20 YEARS VERSUS 30 YEARS AND SO FORTH? THAT'S WHAT THE CONGRESS DECIDED. FAIR ENOUGH. [LAUGHTER] UNDERSTOOD. ALL RIGHT. THANK YOU, COUNCILMEMBER ROTH.
THANK YOU. OPPORTUNITY ZONES ARE REALLY IMPORTANT.
EVEN THOUGH WE DON'T FUND ANY OF IT, IT REALLY IS AN ENCOURAGEMENT FOR INVESTORS TO ROLL A PROFITABLE SALES INTO A POSSIBLE CAPITAL GAINS DEFERRAL AND OR CAPITAL GAINS ELIMINATION.
SO IT'S REALLY SOMETHING THAT IS A GOOD OPPORTUNITY TO ADD TO STUFF THAT WE ARE DOING ECONOMICALLY.
SO I WANT TO MAKE SURE THAT WE HAVE ACCESS TO THAT THAT OUR CONSTITUENTS HAVE ACCESS TO IT.
AND THAT TO WHATEVER EXTENT THE, YOUR DEPARTMENT CAN HELP FACILITATE THE CORRECT DESIGNATIONS FOR THESE OPPORTUNITY ZONES SO THAT WE DON'T LOSE THEM. THAT'S I THINK THAT'S AN IMPORTANT THING.
AND I'D LIKE TO FIGURE OUT HOW WE ADDRESS THAT, HOW YOU ALL CAN HELP ME HELP OUR DEVELOPMENT COMMUNITY TO MAKE INVESTMENT IN A PLACE LIKE THAT, BECAUSE THAT'S WHAT WE REALLY WANT TO DO.
WE WANT TO IMPROVE THESE PLACES. AND THE TEN YEAR GAP OF MATURITY IS TO HELP DEVELOP AN AREA, MAKE IT PROFITABLE AND MAKE IT SIGNIFICANT TO IMPROVE IT.
SO NUMBER ONE, I'M NOT REALLY CLEAR ON THE DATES.
AND AGAIN, THIS IS NOT THE RIGHT TIME TO SORT OF DO THE COMMITTEE WORK, BUT I'D REALLY APPRECIATE A PERSONAL TIME PERIOD WHERE WE COULD YOU COULD EXPLAIN TO ME WHAT WE CAN DO PERSONALLY AND ALSO AS A GROUP TO FACILITATE MAKING SURE THAT THIS PROGRAM REALLY
[01:40:01]
IS STILL IN PLACE FOR OUR AREA FOR A LOT OF OUR AREAS AND THAT WE DON'T LOSE THE QUALIFICATIONS OF PARTICULAR AREAS. AND AGAIN, I'M, I NEED SOME CLARIFICATION ON THE SUN SETTING AND THE DATES AND THE REDEVELOPMENT ON IT. AND AGAIN, IF YOU'LL ALLOW ME TO TAKE THIS OFFLINE WITH YOU ALL, I'D REALLY APPRECIATE IT IF WE COULD DO THAT.I CAN ANSWER THAT BRIEFLY. AND THEN WE'RE HAPPY TO TALK TO YOU SEPARATELY TOO.
BUT SO THE THE FEDERAL LEGISLATION MADE THE PROGRAM PERMANENT.
BUT THE DESIGNATION FOR EACH SET OF ZONES IS FOR TEN YEARS AT A TIME.
SO IT'S ON A ROLLING BASIS TO KIND OF REASSESS WHERE THE ELIGIBLE AREAS MAY NEED TO BE.
AND FOR THE AREAS THAT HAVE INSUFFICIENT INFORMATION THAT'S RELATED TO THE [INAUDIBLE] MEDIAN FAMILY INCOME DATA IS NOT 100% VETTED, I WOULD SAY AT THIS POINT. AND SO THEY'RE JUST CLEARING THAT UP BEFORE THEY MAKE THEIR FINAL DETERMINATIONS AT TREASURY.
AND AGAIN, WE'RE EXPECTING TO GET THAT IN THE NEXT MONTH OR SO.
AND I'LL ADD ON TO THAT ONCE WE HAVE THE OFFICIAL MAPS, I'M SORRY TO VOLUNTEER, BUT WE COULD DO A FRIDAY MEMO OF EACH COUNCIL DISTRICT AND YOU'RE ELIGIBLE JUST SO YOU HAVE A LITTLE BETTER VIEW INTO YOUR OWN NEIGHBORHOODS.
I THINK WE CAN PROVIDE SOMETHING LIKE THAT. THE OTHER PART IS STARTING LATER THIS WEEK.
SO IT WILL BE READILY AVAILABLE AS WE'RE WORKING THROUGH THAT.
AND IF I UNDERSTAND IT CORRECTLY, TO SOME OF THE CENSUS DESIGNATIONS CAN BE ARE SOMEHOW RELATED TO, LIKE YOU SAY, DEMOGRAPHICS, BUT ALSO TO COUNTY AND, AND ALSO FEDERAL.
HOW DO I WANT TO SAY IT INFLUENCE IF YOU, IF YOU CAN BASICALLY LOBBY FOR A DESIGNATION THAT'S HELPFUL TOO, AND TO THE EXTENT THAT THE CITY CAN BE AN ADVOCATE FOR SOME OF OUR AREAS, I THINK THAT'S WHERE WE MIGHT BE ABLE TO BENEFIT OUR CONSTITUENTS IN HELPING TO IMPROVE SOME OF THESE LOWER INCOME AREAS, IF POSSIBLE.
SO DEVELOPERS, PROPERTY OWNERS, ANYBODY WHO WANTS TO, TO PROVIDE FEEDBACK THROUGH THROUGH THIS AUTOMATED PROCESS, WE WILL BRING A SUMMARY OF THAT FEEDBACK BACK TO THIS BODY IN A MONTH.
SO THAT THIS PROCESS IS STARTING OFFICIALLY TOMORROW.
SOME OF THE FOLKS THAT ARE IN THE AUDIENCE MIGHT BE GOOD RECIPIENTS OF THAT INFORMATION, AND MIGHT BE GOOD ADVOCATES FOR GIVING SOME POSITIVE FEEDBACK FOR US, ESPECIALLY IF THEY'RE ALREADY IN THE THE TAX CREDIT, TAX ABATEMENT, TAX RELATED DEVELOPMENT BUSINESS.
I'D REALLY LIKE TO MAKE SURE THAT THAT COMMUNITY IS AWARE OF THIS CHANGE, AND THAT THEY'RE BEING RESPONSIVE IN HELPING US DEVELOP STRATEGIES TO PRESERVE THAT. THOSE OPPORTUNITIES FOR INCENTIVES.
THANK YOU. WE ARE ALREADY HEARING FROM THE DEVELOPMENT COMMUNITY.
THEY'RE VERY AWARE OF THIS AND DEFINITELY WILL BE WEIGHING IN.
AND THAT'S HELPFUL BECAUSE LAST TIME AROUND WE LITERALLY SUBMITTED A LIST.
THIS TIME IT'S DETAILED SCORING. WE NEED A LOT MORE INFORMATION.
BECAUSE LIKE YOU SAID, WHILE THIS IS NOT A CITY PROGRAM, THERE'S NO CITY FUNDING.
SO IT IS AN IMPORTANT PROGRAM. COUNCIL MEMBER CADENA/ IS THERE A WAY TO SEE WHAT BUSINESSES HAVE MAYBE TAKEN ADVANTAGE OF THIS PROGRAM WITHIN THE ZONES? NO, NO. NOT NO. BECAUSE THERE'S NO REPORTING REQUIREMENTS AT ALL.
AND THEN THE IRS IS REQUIRED TO PRESENT THAT AT A CENSUS TRACT LEVEL BASIS.
BUT RIGHT NOW WE HAVE NO LIST AND NO INDICATION OF WHAT'S BEEN SUPPORTED.
WE'VE GONE BACKWARDS IN THAT WE DON'T EVEN HAVE A GROCERY STORE THERE ANYMORE.
SO JUST WONDERING, I MEAN, WHEREVER WE PUT IT IN DISTRICT IN OUR DISTRICT.
I WANT TO MAKE SURE THAT WE'RE TAKING FULL ADVANTAGE OF THAT TOOL.
THANK YOU. COUNCIL MEMBER BLAIR. COUNCIL MEMBER RIDLEY.
[01:45:02]
THEY'RE ALL PRIVATELY MANAGED AND PRIVATELY HELD.SO THEY'RE LIKE INVESTMENT AN INVESTMENT BANKER.
IT'S NOTHING THAT'S MUNICIPAL RELATED WHERE WE DON'T GET REPORTS FROM THEM.
YOU CAN LOOK THEM UP ONLINE AND THERE'S A LOT OF, YOU KNOW, INVESTMENT FIRMS THAT OFFER THE SHOWS AND THEN THEY MAKE THE DETERMINATION ON WHERE THEY'RE INVESTING THOSE FUNDS. SO ARE THERE ANY CRITERIA IN THE LEGISLATION AS TO WHAT THE FUNDS CAN BE USED FOR? NO. NONE WHATSOEVER. THERE'S SOME MINOR LIKE SIN BUSINESS RESTRICTIONS SIMILAR TO THE NEW MARKETS TAX CREDIT PROGRAM, BUT THERE'S NOT ANY SUBSTANTIAL REQUIREMENTS.
AND THERE WAS SOME COMMUNICATION ABOUT, YOU KNOW, HIGH END HOUSING OR THERE WAS A SKI SLOPE.
HAS THAT BEEN ADDED TO THE 2.0? SO I THINK TO ADDRESS THAT THEY RESTRICTED THE CENSUS TRACTS MUCH CLEANER BY CHANGING THE ELIGIBILITY FOR INCLUSION IN THE PROGRAM AND REMOVING THAT CONTIGUOUS CENSUS TRACT ELIGIBILITY, THEY'RE HOPING TO GET IT MORE COMMUNITY DRIVEN THAT WAY.
OR IS THERE NO RELATIONSHIP THERE? I DON'T BELIEVE SO.
NO, I THINK THERE'S NO RELATIONSHIP THERE. OKAY.
THANK YOU. I WILL, IT IS SIMILAR TO THE NEW MARKETS ELIGIBILITY.
SO IT IS VERY SIMILAR TO THE NEW MARKETS TAX CREDIT ELIGIBLE MAP.
WE HAD BIG SWATHS OF THE CITY WHERE LARGE CONTIGUOUS AREAS WERE CHOSEN.
HEATHER, AGAIN, THANK YOU FOR THE PRESENTATION.
TO COUNCIL MEMBER ROTH'S POINT, THOUGH, IT'S CRITICAL THAT WE KNOW WHAT THOSE ZONES ARE AND WHAT ELIGIBLE CRITERIA IS ABLE TO GO INTO PROJECT SO THAT WHEN WE'RE TALKING TO DEVELOPERS IN OUR DISTRICTS, WE'RE ABLE TO LET THEM KNOW ABOUT THE TOOLS THAT ARE AWARDED THERE.
AND AGAIN, THE GREAT PART ABOUT THIS IS THAT IT'S NOT COSTING THE CITY.
AND SO DO WE HAVE A REQUEST ONCE YOU GUYS COME BACK AND SELECT THE OPPORTUNITY ZONES ON NARROWING IT DOWN I KNOW THAT IT'S GOING TO TAKE A LOT OF STAFF TIME TO GO THROUGH THESE VARIOUS ZONES.
AND SO HOW MANY ARE WE ANTICIPATING PUSHING FORWARD? MY RECOMMENDATION WOULD BE FOR A LOWER NUMBER RATHER THAN QUALIFYING EVERY, JUST EVERY OPPORTUNITY ZONE THAT IS THAT WE'RE ELIGIBLE FOR.
WE AGREE WITH THAT. AND BECAUSE THEY'RE SCORED ON A TEN POINT BASIS, LIKE WE HAVE TO HAVE ZONE, WE HAVE TO HAVE TO MAKE A COMPELLING CASE FOR EVERY SINGLE ONE THAT WE'RE NOMINATING.
AND BECAUSE WE'RE NOT GOING TO GET THAT ROLL POINT, THE MOST WE'RE GOING TO GET IS NINE.
SO I FEEL LIKE FOR ANY TRACK THAT WE'RE RECOMMENDING, WE SHOULD BE MAXING OUT TO THE BEST OF OUR ABILITY, THE REST OF THE POINTS. OKAY. COUNCIL MEMBER GRACEY.
YEAH. I WAS JUST TRYING TO GET SOME CLARITY ON THIS.
SO RIGHT NOW IT LOOKS LIKE I SEE HENSLEY FIELD IS ON THERE.
AND THEN GOING FORWARD, IT'S NO LONGER. IS THAT BECAUSE THERE'S INSUFFICIENT DATA OR BECAUSE IT'S NO LONGER ELIGIBLE? AND THEN WHILE YOU LOOK FOR THAT, THE OTHER QUESTION IS, AS WE LOOK THROUGH, IS THERE IS THERE A LIMITATION ON THE SIZE OF THE AREA? WELL, OBVIOUSLY NOT. I GUESS THERE'S NOT A LIMITATION ON THE SIZE OF THE AREA, LIKE AS WE GO THROUGH AND TRY TO. WHAT ARE WE.
I GUESS HOW DO WE EXPLAIN THE SIZE, THE LOCATIONS AND ALL THAT PUT THE PARAMETERS TO HELP IDENTIFY AREAS? OR ARE THERE ANY PARAMETERS? THE LIMITATION IS BASED ON THE CENSUS TRACT DESIGNATION AND THEN THE FACT THAT THEY CAN'T BE CONTIGUOUS.
[01:50:01]
SO IF WE'RE LOOKING AT A LARGER AREA AND THERE ARE 2 OR 3 CENSUS TRACTS.OH, I TOTALLY MISUNDERSTOOD THE RULE. WE CAN BE CONTIGUOUS.
THANK YOU, HEATHER, FOR TELLING ME I AM TOTALLY WRONG. [LAUGHTER] OKAY. FAIR ENOUGH. NOW, WHAT SHE'S REFERENCING IS IN THE PRIOR VERSION OF THE PROGRAM, THERE WAS AN ELIGIBLE TRACT, AND THEN ANYTHING CONTIGUOUS TO THAT TRACT WOULD ALSO, BY DEFAULT, BE ELIGIBLE.
THAT RULE HAS BEEN REMOVED FROM THE NEW PROGRAM.
GOT IT. YEAH. AND RELATED TO HENSLEY FIELD, IT WAS AN OZ IN THE 2017 PROGRAM.
I WE'VE JUST DISCOVERED THAT WE MAY HAVE A TYPO IN THE MAP BECAUSE WE WILL DOUBLE CHECK WHETHER IT'S PROPOSED OR ELIGIBLE TO BE PROPOSED IN THE NEW PROGRAM. OKAY. YEAH. PERFECT. THANK YOU.
THANK YOU. AND TO THAT, AREAS THAT ARE CURRENTLY IN AN OPPORTUNITY ZONE TODAY THAT MIGHT NOT MAKE IT TO THE 2.0, ARE THEY STILL ELIGIBLE TO GO IN UNDER TODAY'S OPPORTUNITY ZONE MAPS, IF THEY START THEIR WORK PRIOR TO THIS NEW ADOPTION.
SO THEY HAVE ONE YEAR BASICALLY WHERE THEY WOULD STILL BE ELIGIBLE.
THE DEFERRAL ON THE CAPITAL GAINS WOULDN'T TAKE PLACE BECAUSE THAT HAS TO TAKE PLACE BY DECEMBER 31, 2026. AND OBVIOUSLY THE STEP UP BASIS WOULDN'T TAKE PLACE, BUT POTENTIALLY THE THIRD BENEFIT WOULD BENEFIT THEM, STILL BENEFIT THEM. BUT IT'S EVERYTHING, YOU KNOW.
I THINK IT'S BEEN SAID NONE OF THOSE PREVIOUS DESIGNATIONS WILL CARRY OVER TO THE NEXT ROUND.
WE HAVE TO START FROM SCRATCH. ANY OTHER QUESTIONS? COMMENTS? ALL RIGHT. THANK YOU FOR THE PRESENTATION.
WE'LL NOW GO TO ITEM C. HOW MUCH TIME DO WE HAVE? QUICKLY. OKAY. SO QUICKLY, ITEM C IS A NEW PROJECT CALLED THE MEADOW.
IT'S PROPOSED TO BE A MIXED INCOME, TRANSIT ORIENTED AND A PERMANENT SUPPORTIVE MULTI-FAMILY RESIDENTIAL DEVELOPMENT ON 2.3 ACRES AT 8130 MEADOW ROAD IN DISTRICT 13. THIS WOULD BE PROPOSED TO BACKFILL AN EXISTING VACANT THREE STORY BUILDING.
THE COUNCIL HAS SEEN THIS PREVIOUSLY BACK IN FEBRUARY OF 2025.
COUNCIL AUTHORIZED A RESOLUTION OF SUPPORT FOR THE DEVELOPER'S APPLICATION TO TDHCA FOR COMPETITIVE 9% LOW INCOME HOUSING TAX CREDITS ON IN JULY OF THIS YEAR. THE TDHC BOARD AWARDED 2 MILLION IN LIHTC TO THE PROPOSED PROJECT FOR THE 2025 ALLOCATION CYCLE.
THE PROJECT DID SCORE QUITE HIGH, TIED FOR THIRD OUT OF 14 APPLICATIONS IN REGION THREE.
THE PROJECT IS EXCITING FOR US BECAUSE IT'S LOCATED IN A HIGH OPPORTUNITY AREA, AND HIGH OPPORTUNITY AREAS HAVE SHOWN TO HAVE A POSITIVE EFFECT ON THE ECONOMIC MOBILITY OF RESIDENTS. TOTAL PROJECT COST IS 31.7 MILLION, SO THAT WOULD INCLUDE THE PROJECT.
THE DEVELOPER'S PROPOSED ACQUISITION OF THE BUILDING RENOVATION AND ADAPTIVE REUSE OF THE EXISTING THREE STORY VACANT BUILDING TO CREATE 75 MIXED INCOME MULTIFAMILY RESIDENTIAL UNITS. ALL UNITS WOULD BE INCOME RESTRICTED FOR 45 YEARS, PER THE LIHTC LAND USE RESTRICTION AGREEMENT TO HOUSEHOLDS EARNING BETWEEN 30% AND 60% AMI ALSO IN PARTNERSHIP WITH THE DEVELOPER PWA COALITION OF DALLAS DOING BUSINESS AS THE AIDS SERVICE, AIDS SERVICES OF DALLAS, A NONPROFIT, WOULD BE PROVIDING THE SUPPORTIVE SERVICES FOR THE TENANTS WITH HIV AND AIDS ON THE PROPERTY.
WE HAD OUTSIDE INDEPENDENT UNDERWRITING THAT CONFIRMED A GAP OF 13.5 MILLION.
AND WE'RE PROPOSING TO FILL THAT GAP WITH CITY'S 2024 GENERAL OBLIGATION BOND PROGRAM, PROPOSITION G FUNDING, WHICH WOULD BE PAYABLE UPON PROJECTS SUBSTANTIAL COMPLETION, AND THE DEVELOPER'S COMPLIANCE WITH ALL THE TERMS, CONDITIONS AND REQUIREMENTS. WITH THAT, I'LL STOP AND TAKE ANY QUESTIONS.
THANK YOU. COUNCILMEMBER ROTH. THANK YOU. I'M UNFORTUNATELY, I'M NOT REALLY FAMILIAR WITH THIS PROJECT, AND I'M A LITTLE BIT DISTRESSED, QUITE FRANKLY, THAT EVEN THOUGH IT'S NOT DIRECTLY IN MY DISTRICT, IT'S IN PROXIMITY TO MY DISTRICT. AND I REALLY AM A LITTLE BIT DISTRESSED THAT I HADN'T BEEN ENCOURAGED OR INVITED TO DISCUSS THIS PRIOR TO THIS MEETING. AND I WOULD ENCOURAGE THE DEVELOPER TO CONTACT ME IMMEDIATELY AFTER THIS MEETING TO GIVE ME A BRIEFING ON THIS PROJECT. I HAVE A LOT OF QUESTIONS ON IT.
NUMBER ONE, I REALLY I'D LIKE TO UNDERSTAND WHAT IS THE CONNECTION TO THE PROJECT? IS IT A RESTRICTED PROJECT FOR A CERTAIN CLASSIFICATION OF INDIVIDUALS?
[01:55:04]
IS IT, IS IT A PROJECT THAT THE BUILDING IS ALREADY IN EXISTENCE, BUT IS BEEN IT DOESN'T LOOK LIKE, IT LOOKS LIKE IT'S AN EXISTING PROJECT THAT IS, IT'S ALREADY BEING NEW BUILT OR NOT.PRESBYTERIAN HOSPITAL THAT ARE ALSO AFFORDABLE AND POTENTIALLY YOU KNOW, LOWER AND DIFFERENT MODULES OF RESIDENCES. SO I WANT TO KNOW HOW THIS FITS INTO THE OTHER DEVELOPMENTS THAT ARE BEING PLANNED IN THAT PARTICULAR LOCATION OF TOWN. AGAIN, IT'S NOT MY DISTRICT DIRECTLY, BUT IT'S, I'M VERY SENSITIVE TO IT BECAUSE IT'S DIRECTLY ADJACENT TO MY DISTRICT.
SO AT THIS POINT, I REALLY NEED MORE [INAUDIBLE] INFORMATION.
IS THIS COMING UP FOR A DECISION ON WEDNESDAY? NOT THIS WEDNESDAY. NO, IT'D BE SCHEDULED FOR THE SECOND MEETING APRIL 22ND.
OKAY, GOOD. SO WE HAVE TIME TO DISCUSS IT AND VET SOME OF THE QUESTIONS.
COUNCIL MEMBER CADENA. KEVIN, SO HAVE YOU ALL BEEN WORKING WITH COUNCIL MEMBER WILLIS ON THIS PROJECT? YES, MA'AM. SHE SUPPORTS THE PROJECT AS FAR AS I UNDERSTAND.
OKAY. WELL, I THINK THAT IT'S A WONDERFUL PROJECT BECAUSE IT IS NEAR A DART STATION.
IT'S ALSO NEAR HOSPITALS, FULL SERVICE GROCERY STORE.
THIS SOUNDS LIKE SOMETHING THAT I WOULD DEFINITELY SUPPORT.
AND WHOLEHEARTEDLY SUPPORT IT WITH COUNCIL MEMBER WILLIS.
THANK YOU SO MUCH. COUNCIL MEMBER BLAIR. I ECHO THAT WITH.
COUNCIL MEMBER CADENA HAS SAID. IT'S HOUSEHOLDS EARNING BETWEEN 30 TO 60% OF THE AREA MEDIAN INCOME. IT IS SO IS IT THERE'S NO SLIDING SCALE.
IT'S JUST STRAIGHT OUT BETWEEN 30 AND 60%. THERE'S A SPLIT BETWEEN THE INCOME BANDS.
SO IT'S 15, 45, 15. YES MA'AM, 30%. 30, 50 AND 60.
YES. 60%. GOT IT. I LOVE THAT. OKAY. AND I LOOKED AT THE, YOU KNOW, WITH THE WRAPAROUND SERVICES THAT WOULD BE PROVIDED.
I THINK IT'S A WONDERFUL OPPORTUNITY IN THIS PARTICULAR AREA.
I LOOK FORWARD TO SEEING IT AT COUNCIL. THANK YOU.
COUNCIL MEMBER RIDLEY. CHAIR WEST. THANK YOU CHAIR.
I WANT TO SECOND WHAT MY TWO COLLEAGUES HAVE SAID.
I THINK THIS IS A FANTASTIC PROJECT. I MEAN, THIS IS IT CHECKS EVERY BOX.
I MEAN, YOU'RE IN A HIGH OPPORTUNITY AREA, A RELATIVELY LOWER POVERTY RATE.
IT'S TO ME, IT CHECKS EVERY BOX AND I'M EXCITED TO SEE THIS VACANT BUILDING BEING USED FOR HOUSING.
THANK YOU. CHAIR GRACEY. OKAY. THE WALNUT HILL STATION IS THAT A DART RAIL STATION? A BUS STATION? IT'S A DART RAIL STATION. THANK YOU.
WITH THE AIDS SERVICES A GREAT ORGANIZATION. JUST A QUESTION ON VOUCHERS.
I KNOW THAT WE RAN INTO A HICCUP WITH ANOTHER PROPERTY WHEN VOUCHERS WERE PAUSED.
WHAT HAPPENS IN THE EVENT THAT VOUCHERS ARE NO LONGER AVAILABLE OR VOUCHERS ARE SLOW TO ROLL OUT? SO I'VE DISCUSSED THIS WITH THE DEVELOPER OFFLINE, AND HE ASSURES ME THAT THIS PROJECT WON'T HAVE THAT PROBLEM BECAUSE OF THE NUMBER OF STORIES IT'S UNDER FOUR STORIES. IF YOU'D LIKE A MORE DETAILED RESPONSE TO THAT QUESTION, HAPPY TO BRING THE DEVELOPER DOWN BECAUSE HE UNDERSTANDS THE NUANCES OF THIS PROJECT RELATED TO THE OTHER PROJECT. YOU'RE FAMILIAR WITH THAT HAD THE VOUCHER ISSUE.
OKAY. AND NOW DURING UNDERWRITING, THE REQUEST WAS 13.5.
AND SO. THE REQUEST WAS 13.8. I'M SORRY. 13.8 THANK YOU FOR THAT.
SO ROUGHLY AGREEING 90 SOMETHING PERCENT THAT WITH THE REQUEST.
[02:00:08]
WHAT'S THE ACTUAL PERCENTAGE? IT'S IN HERE. SO THE CITY'S PARTICIPATION WOULD BE ABOUT 42.7% OF THE TOTAL PROJECT COST. THANK YOU. OKAY. ANY OTHER QUESTIONS? ALL RIGHT.JUST A REQUEST FOR THE DEVELOPER TO CONNECT WITH COUNCIL MEMBER ROTH.
YES, SIR. ALL RIGHT. WE'LL GO AHEAD AND MOVE TO ITEM D.
ITEM D VERY QUICKLY. I'LL ASK MARIA SMITH, MY ASSISTANT DIRECTOR, TO COME JOIN ME.
IS A MEMO ABOUT ALL THE UPCOMING ITEMS RELATED TO PUBLIC IMPROVEMENT DISTRICTS.
SO ON APRIL 22ND, THE COUNCIL WILL BE ASKED TO CONSIDER RESOLUTIONS THAT CALL FOR PUBLIC HEARINGS WHICH ARE REQUIRED UNDER STATE LAW TO BE HELD ON MAY 27TH RELATED TO FOUR DIFFERENT THINGS; THE RENEWAL OF THE SOUTHSIDE PUBLIC IMPROVEMENT DISTRICT, THE RENEWAL OF THE UPTOWN PUBLIC IMPROVEMENT DISTRICT, THE CREATION OF A NEW PUBLIC IMPROVEMENT DISTRICT CALLED HALPERIN PARK PUBLIC IMPROVEMENT DISTRICT, AND THE EXPANSION OF DALLAS TOURISM PUBLIC IMPROVEMENT DISTRICT WITH THE ADDITION OF FOUR NEW HOTELS.
SO WITH THAT, WE'LL STOP AND TAKE ANY QUESTIONS.
LOOKING TO MY RIGHT CHAIR WEST. JUST FULL SUPPORT AND CONGRATS ON GETTING THIS FAR TO ANNE HAGAN, WHO'S IN THE AUDIENCE ON THE HALPERIN PARK BID.
THANK YOU. COUNCIL MEMBER ROTH. JUST FOR CLARIFICATION, THIS IS JUST AN AUDIT.
THIS IS TO THESE PIDS EXPIRE AFTER A CERTAIN AMOUNT OF TIME, AND WE'RE NOW RENEWING THESE PIDS.
IS THAT WHAT SORT OF THE MAIN OBJECTIVE IS? CORRECT.
SO THERE ARE TWO EXISTING PUBLIC IMPROVEMENT DISTRICTS, UPTOWN AND SOUTHSIDE.
THEY'VE CIRCULATED PETITIONS TO START THE PROCESS FOR RENEWAL.
THERE IS THE PROPOSED CREATION OF A NEW PUBLIC IMPROVEMENT DISTRICT FOR THE HALPERIN PARK AREA.
OKAY. SO THAT'S SO YOU'RE THAT'S AN EXPANSION OF THE DISTRICT OR IS IT YEAH. UNDER STATE LAW, CORRECT. FOR THE, DALLAS TOURISM PID, THERE'S A SPECIAL EXCEPTION IN STATE LAW THAT ALLOWS NEW HOTELS THAT ONCE THEY ARE BUILT AND PLACED INTO SERVICE, THEY CAN BE ADDED TO THE PID.
SO THAT'S PART OF THIS PROCESS AS WELL. AND, THIS PROCESS IS SOMETHING THAT'S COLLABORATIVE.
I MEAN, THE PROPERTY OWNERS NEED TO PARTICIPATE.
THEY NEED TO WANT TO BE PART OF IT. THEY'RE WILLING TO PAY THE EXTRA TAXES FOR IT.
SO THAT'S TRUE. SO BEFORE AND MARIA CAN GO INTO DETAIL BEFORE IT EVER GETS TO THIS POINT.
GREAT. THANK YOU. THAT'S WHAT I NEED TO KNOW.
AND, KEVIN, WHAT I MIGHT ADD IS AN OPPORTUNITY FOR COUNCIL MEMBERS TO REACH OUT TO YOUR OFFICE TO SEE HOW PIDS CAN GET STARTED IN DIFFERENT AREAS. AND HOW THEY CAN BE EXPANDED OR SUNSETTED, MAYBE JUST FOR THOSE COUNCIL MEMBERS THAT ARE INTERESTED TO CONNECT WITH KEVIN'S TEAM.
HAPPY TO DO SO. COUNCIL MEMBER RIDLEY. JUST A QUICK QUESTION, KEVIN.
WHAT ARE THE CITY'S STANDARDS FOR RENEWAL IN TERMS OF PERCENTAGE OF APPRAISED VALUE AND LAND AREA? GREAT QUESTION. I'LL TURN THAT OVER TO MARIA.
GOOD AFTERNOON. GOOD AFTERNOON. MARIA SMITH, ASSISTANT DIRECTOR, OFFICE OF ECONOMIC DEVELOPMENT.
LAST YEAR, WE AMENDED OUR PID POLICY AND THE CITY COUNCIL AMENDED OUR PID POLICY.
AND IT'S ALIGNED NOW WITH THE STATE PETITION THRESHOLDS.
SO THE STATE REQUIRES APPROVAL FROM PROPERTY OWNERS REPRESENTING 50% OF THE VALUE OF A PROPOSED AREA AND 50% OF THE LAND AREA, OR 50% OF RECORD OWNERS. AND I DID WANT TO CORRECT POINT OUT A TYPO IN THE MEMO. SO FOR UPID THEIR PERCENTAGE APPROVAL FOR LAND AREA IS 60.2%.
OH. YEAH, I WAS GOING TO ASK THAT NEXT. SORRY I SHOULD HAVE POINTED THAT TYPO OUT.
WE JUST DISCOVERED IT. [LAUGHTER] YEAH. OKAY.
THANK YOU. ANYONE ELSE? OKAY, I THINK THAT CONCLUDES OUR AGENDA.
IT'S 3:07, AND WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.