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WE'LL CALL THE SKILLMAN CORRIDOR OR TIP COURT
AND I'LL GO AHEAD AND TURN THE MEETING OVER TO OUR CHAIR.
UM, DID YOU GET THE TIMESTAMP? YEAH, JUST DID THAT.
UM, BEING THAT WE HAVE ALL OUR MEMBERS HERE, WE HAVE, UH, TWO BOARD MEMBERS, THREE BOARD MEMBERS HERE ONLINE, AND WE'D LIKE TO WELCOME LUIS AND SHANNON WHO ARE DIALING IN TODAY.
AND I'D LIKE TO MAKE A SPECIAL WELCOME TO PEYTON ROBERTS.
THIS IS HIS FIRST OFFICIAL MEETING AND I WANT Y'ALL TO JOIN ME IN WELCOMING HIM.
UM, DO WE HAVE ANY OTHER PARTICIPANTS TO INTRODUCE OR DO YOU WANT I THINK THEY'RE MOSTLY STAFF ASIDE FROM VICKY CALIN JUST LISTENING IN, I GUESS.
AND I WOULD SUGGEST, UM, WE COULD WAIVE IF THERE'S ANY PUBLIC COMMENT, WAIT TILL AFTER THE PRESENTATIONS.
I DON'T KNOW IF THERE WOULD BE, BUT, SO I KNOW CAROL TOLD HER TWO AND I WERE TALKING THIS MORNING, WAS HOPING TO COME, BUT SHE SAID SHE WASN'T A HUNDRED PERCENT SURE YET.
YEAH, I DON'T SEE HER ONLINE, SO WE COULD ALWAYS UNTIL LIKE WE GET THROUGH THE PRESENTATION, SEE IF THERE'S ANY PUBLIC PEOPLE THAT WANNA COMMENT.
SO WE'LL DEFER AGENDA ITEM NUMBER TWO, WHICH BRINGS US TO AGENDA ITEM NUMBER THREE, REVIEW AND CONSIDER THE MEETING RECORD OF DECEMBER 5TH FOR THE T BOARD MEETING.
UM, DO YOU WANNA GO OVER THE MINUTES? UM, DOES ANYBODY HAVE ANY QUESTIONS OR COMMENTS? THEY WERE PRETTY STRAIGHTFORWARD.
UM, THEY WERE PROVIDED IN ADVANCE.
IT WAS OUR ANNUAL REPORT MEETING.
SO, UM, THE ONLY TWO ITEMS WERE APPROVAL OF THE ANNUAL REPORT AND THE, UM, MEETING SCHEDULED FOR 2026.
SO IF THERE'S NO COMMENTS OR QUESTIONS, WE JUST NEED A MOTION, WE MOTION MOVE.
ANY DISCUSSION? ALL IN FAVOR SAY AYE.
AGENDA ITEM NUMBER FOUR, WHICH IS ROLLING RIGHT ALONG.
REVIEW AND CONSIDERATION OF A DEVELOPMENT AGREEMENT WITH, IS IT TIGER? YES, MA'AM.
T WALNUT HILL, LLC AND OR ITS AFFILIATES IN THE AMOUNT NOT TO EXCEED $1,188,662 PAYABLE FROM THE CURRENT AND FUTURE SKILL ATIVE DISTRICT FUNDS IN CONSIDERATION OF THE HIGHLANDS VILLAGE RETAIL OFFICE REDEVELOPMENT PROJECT ON PROPERTY CURRENTLY ADDRESSED AT 97 15 WALNUT HILL LANE, DALLAS, TEXAS.
SUE, YOU WANNA TAKE US THROUGH THE PRESENTATION SO I CAN GO THROUGH THE PRESENTATION AND THEN KIND OF LET CRAIG CHAPMAN DIG ANY REMARKS AFTER THAT? UM, SO NOW I JUST NEED TO FIGURE OUT HOW TO GET THIS OUT.
YEAH, I CLICK SCREEN CHAT ON THE BACK.
DID EVERYBODY SEE THE PRESENTATION? YEAH, I GOT ENOUGH.
I THINK WE FLIP THE LITTLE ARROW HERE.
SO THIS IS THE, UM, OVERVIEW FOR THE, UM, HIGHLANDS VILLAGE RETAIL OFFICE REDEVELOPMENT PROJECT IN THE SKILLMAN CORRIDOR TIP DISTRICT.
UH, LET'S SEE IF I CAN REMEMBER HOW TO ADVANCE THIS.
SO, UM, OUR OVERVIEW INCLUDES A BACKGROUND ABOUT THE PROJECT, UM, OR BACKGROUND ABOUT THE TIF DISTRICT, THE PROPOSED PROJECT, OUR STAFF RECOMMENDATION, NEXT STEPS, AND AN APPENDIX.
SO JUST SOME QUICK BACKGROUND.
UM, MOST OF YOU HAVE BEEN ON THE, THE TIP BOARD FOR A WHILE.
SO THE TIP DISTRICT WAS CREATED IN 2005.
IT WAS AMENDED, UM, A COUPLE OF TIMES IN 2006 AND 2023.
UM, TO DATE, WE'VE HAD, UM, 1.3 BILLION IN, UM, TAXABLE VALUE INCREASE.
UM, THE TIF DISTRICT HAS SUPPORTED 10 PUBLIC PROJECTS AND INITIATIVES IN THREE PRIVATE DEVELOPMENT PROJECTS.
AND, UM, TIF DISTRICTS IS SUCH EXPIRE IN 2035.
UM, AND WE HAVE OUR APPROXIMATE COLLECTION OF, UM, 49.7
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NPV 112 MILLION IN TOTAL DOLLARS.SO I'LL SAY THAT, UM, THIS IS THE, IT'S BEEN A WHILE SINCE WE'VE HAD A DEVELOPMENT PROJECT.
SO, UM, IT'S BEEN ACTUALLY NINE YEARS SINCE WE'VE HAD A PRIVATE DEVELOPMENT PROJECT COME THROUGH THE TIP DISTRICT.
IT WAS THE LAKE BRIDGE PROJECT.
SO, UM, I'LL QUICKLY GO THROUGH THE BACKGROUND ABOUT THE PROJECT.
SO IT'S LOCATED AT 97 15 WALNUT HILL.
IT'S AT THE, UM, THE NORTHWEST CORNER OF WALNUT HILL AND ALIA ROAD.
UM, IT'S ABOUT JUST UNDER HALF AN ACRE.
UM, CURRENTLY IT'S THE LAKE HIGHLANDS CAR WASH, WHICH IS OPERATED SINCE 1976.
UM, THE ZONING IS, UM, COMMERCIAL RETAIL AND IT'S IN COUNCIL DISTRICT 10.
UM, HERE'S JUST A EXISTING CONDITIONS.
UM, AGAIN, IT'S ABOUT A 3000 SQUARE FOOT BUILDING, UM, CURRENT USE AS A CAR WASH.
UM, ON THE DEC A, UH, TAX ROLL THAT'S CURRENTLY VALUED AT ABOUT 552,000.
UM, THE PLAN IS TO COMPLETELY DEMOLISH THE CAR WASH AND REDEVELOP THE PROPERTY INTO A MODERN, UH, MIXED USE COMMERCIAL PROJECT.
SO THE DEVELOPMENT ENTITY IS, UM, TIGRE, WALNUT HILL, LLC.
UM, TREY CHAPMAN IS THE, UH, THE PRINCIPAL, UM, WHO WILL DESIGN, FUND AND CONSTRUCT THE PROJECT.
UM, HERE'S THE, THE BASIC DETAILS.
UM, THE IDEA IS IT'LL BE A TWO STORY MIXED USE BUILDING WITH BROWN FLOOR RETAIL SPACE.
APPROXIMATELY THREE, UM, TENANT SPACES ON THE GROUND FLOOR, AND THEN THE SECOND FLOOR PROFESSIONAL OFFICE.
SO IT'LL BE, UM, FULL DEMOLITION, NEW CONSTRUCTION, UM, FOR ABOUT, UM, 7,220 NET LEASEABLE SQUARE FEET.
UM, ALL THE SITE IMPROVEMENTS, WATER WASTE, WATER, NEW PAVING, LANDSCAPING, SIGNAGE, LIGHTING, UM, INCLUDING, UM, PEDESTRIAN ORIENT ORIENTED IMPROVEMENTS, SOME OF WHICH WILL BE ON THE PRIVATE PROPERTY.
SOME WILL BE ON THE FRONTAGE OF WALNUT HILL LANE.
THERE'S NOT A LOT OF RIGHT OF WAYS.
A LOT OF THE ENHANCEMENTS ARE ON PRIVATE PROPERTY JUST BECAUSE THE RIGHT OF WAY CONSTRAINTS THERE.
SO THE OVERALL ESTIMATED TOTAL PROJECT COST IS 4.75 MILLION.
UM, START CONSTRUCTION IS APPROXIMATELY MARCH OF 27.
THAT'S BASED ON OUR DEADLINE AND POOL OF PERMIT.
I KNOW THE PLANS ARE TO TRY TO START SOONER THAN THAT, BUT THAT'S OUR CONTRACTUAL START, UM, DEADLINE.
SO HERE'S A QUICK LITTLE SITE PLAN.
UM, YOU'LL SEE THERE'S THE BUILDING, UM, PARKING, UH, THE AMENITY SPACE, UM, LANDSCAPING THERE IN FRONT.
UH, COUPLE OF CONCEPT PLANS FOR THE BUILDING AND THE ELEVATION.
UM, JUST SOME, UM, KIND OF IDEA IMAGES FOR, YOU KNOW, THE KIND OF TENANTS AND THE KIND OF, UM, ATMOSPHERE THAT'S BEING CONTEMPLATED.
SO, UM, THE PROJECT WENT THROUGH THE URBAN DESIGN PEER REVIEW PANEL, UM, IN JANUARY.
UM, THERE WERE A NUMBER OF RECOMMENDATIONS AND, UM, YOU KNOW, WITH THE COURSE OF WORKING WITH THE DEVELOPER AND STAFF, UM, THE DEVELOPER SATISFIED THOSE COMMENTS, UM, AND MADE NECESSARY CHANGES AND UPDATES.
UM, WE'VE BEEN THROUGH QUITE A BIT OF, QUITE A BIT OF TIME BY, UM, TRYING TO MAKE THE SPACE, ENHANCING IT AS MUCH AS POSSIBLE GIVEN ITS, UM, ITS CONSTRAINTS THERE WITH TRYING TO MAKE THE BUILDING CLOSER TO THE STREET, UM, FINDING WAYS TO, UM, ENHANCE THE LANDSCAPING AND THE WALKABILITY.
SO, UM, IN TERMS OF, UH, THE BUDGET AND SOURCES AND USES, UM, AGAIN, THIS IS BASED ON PERMANENT SOURCES.
UM, PERMANENT LOAN, ABOUT 2.3 MILLION DEVELOPER EQUITY 1.2, UM, A BRIDGE LOAN RELATED TO THE TIFF SUBSIDY OF LIKE JUST A LITTLE BIT, 1.18.
UM, THEN YOU'LL SEE THE, UM, THE USES 900,000 IS WHAT HAS BEEN, UM, SHOWN IN TERMS OF THE ACQUISITION, WHICH IS BASICALLY LIKE THE BRINGING THE, THE PROPERTY INTO THE PROJECT ABOUT 2.5 IN HARD CONSTRUCTION COSTS IN A VARIETY OF PROFESSIONAL FEES, SOFT COST, UM, DEVELOPER FEE.
THE TENANT FINISH OUT, WE BROKE UP SEPARATELY BECAUSE OF SOME OF THE PHASING, UH, WITH THE PROJECT.
SO THE TENANT FINISH OUT OF THE SPACES, UM, ABOUT 464,000.
OUR STAFF RECOMMENDATION IS, UM, YOU KNOW, BASED ON A LETTER OF INTENT THAT WE EXECUTED WITH THE DEVELOPER IN AUGUST OF 16.
AND BASED ON, UM, THE RECOMMENDATION OF OUR OUTSIDE UNDERWRITER, UM, THE TOTAL TIFF SUBSIDY RECOMMENDED IS 1,000,100 88 662.
THIS IS AN APPROXIMATE BUDGET, UM, FOR, UM, THAT INCLUDES ENVIRONMENTAL REMEDIATION, DEMOLITION, PUBLIC INFRASTRUCTURE.
[00:10:01]
AGAIN, BECAUSE THE RIGHT OF WAY AREA IS SO SMALL, THERE'S NOT A LOT THAT'S ACTUALLY IN THE PUBLIC, UM, RIGHT OF WAY.BUT THERE IS A LOT OF ENHANCEMENTS THAT'LL BE ON, ON PRIVATE PROPERTY IN AN ECONOMIC DEVELOPMENT GRANT TO MAKE THE PROJECT FEASIBLE OF ABOUT 832,000.
UM, THESE ARE, YOU KNOW, THESE COSTS CAN BE SHIFTED AROUND JUST DEPENDING ON ACTUAL COST, AS LONG AS THE TOTAL SUBSIDY DOESN'T EXCEED THE 1.18 MILLION.
AND WE'RE RECOMMENDING THAT THE SUBSIDY, UM, BE STRUCTURED IN TWO INSTALLMENTS.
UM, THE FIRST WOULD BE BASED ON WHAT WE CALL SUBSTANTIAL COMPLETION, WHICH IS THE BUILDING SHELL, ALL OF THE SITE WORK, UM, LANDSCAPING IMPROVEMENTS AND BASICALLY GETTING, UM, THE BUILDING TO WHERE THE, THE UPPER STORY IS READY.
THE, THE LOWER STORY WILL DEPEND ON, YOU KNOW, TENANTS COMING OUT.
UM, AND SO THAT FIRST INSTALLMENT WOULD BE 825,000 BASED ON THIS SUBSTANTIAL COMPLETION.
AND THEN ONCE THE MINIMUM OCCUPANCY IS REACHED, THAT ADDITIONAL, UM, BALANCE OF 363,000, UH, WOULD BE AVAILABLE.
AND THAT MINIMUM OCCUPANCY IS BASED ON ASSUMING THERE'S THREE TENANT SPACES ON THE GROUND FLOOR, THAT AT LEAST ONE OF THOSE IS FILLED THAT WAY.
WE'RE GETTING GROUND FLOOR ACTIVATION, SO PROJECT FINANCING THAT'LL BE REQUIRED BEFORE WE ACTUALLY EXECUTE THE AGREEMENT.
IN TERMS OF REQUIRED PROJECT COMPONENTS, THIS IS WHERE, YOU KNOW, THERE'S A DIFFERENCE BETWEEN PLANNED AND THE CONTRACTUAL OBLIGATION.
AND TYPICALLY WITH CONTRACTUAL OBLIGATIONS, WE GIVE A LITTLE BIT OF WIGGLE ROOM BETWEEN WHAT'S PLANNED AND WHAT'S CONTRACTUALLY REQUIRED.
SO OUR CONTRACTUAL REQUIREMENT IS THAT THERE BE AT LEAST 7,000 SQUARE FEET OF NET LEASEABLE COMMERCIAL SPACE.
UM, AND THEN AT THE TIME OF WHAT WE CALL SUBSTANTIAL COMPLETION, THAT WOULD BE, THIS IS WHERE WE GET INTO LITTLE, A LOT OF THE DETAILS RELATED TO HOW BUILDING INSPECTION CLASSIFIES PERMITTING.
BUT BASICALLY THE COMMERCIAL SHELL SPACE, UH, WILL MEET THE CITY'S LIKE APPROVED FOR SHELL BILLING PERMIT REQUIREMENTS, UM, BUT WOULD NOT REQUIRE COMPLETE TENANT FINISH OUT OF THE, OF THE GROUND FLOOR.
UM, SPECIFIC TENANT IMPROVEMENTS FOR THE UPPER FLOOR WOULD BE PART OF THE SUBSTANTIAL COMPLETION.
AND THEN ALL THE ONSITE AND OFFSITE IMPROVEMENTS, UH, MINIMUM INVESTMENT WOULD BE REQUIRED OF, OF 3 BILLION.
THAT INCLUDES, UM, A LOT OF PRIMARY COSTS, ALL THE ENVIRONMENTAL REMEDIATION, DEMOLITION SITE WORK, SHELL CONSTRUCTION, THE TENANT FINISH OUT OF THE SECOND FLOOR, AS WELL AS PROFESSIONAL FEES.
UM, THIS IS PRETTY STANDARD IN OPERATING AND MAINTENANCE AGREEMENTS.
SO IF ANYTHING NON-STANDARD ISN'T INSTALLED IN CITY RIGHT OF WAY LIKE LANDSCAPING, UM, WE WOULD NEED, UM, THE DEVELOPER TO ENTER INTO AN O AND M AGREEMENT TO TAKE CARE OF THAT FOR FOR 20 YEARS.
UM, DESIGN REVIEW WILL WANNA MAKE SURE THAT FINAL PLANS ARE IN CONFORMANCE WITH THE DESIGN.
UM, THE APPROVED DESIGN, UM, WE'VE ALREADY HAD THOSE, UM, PERMIT DRAWINGS REVIEWED BY THE DESIGN STAFF AND THEY'RE SATISFIED WITH THOSE, UH, BUILDING PERMIT DEADLINE BY, UM, MARCH OF 27, UM, AND THEN SUBSTANTIAL COMPLETION BY DECEMBER 31ST, 2029.
AGAIN, THE PLAN IS TO FINISH SOONER, BUT WE ALWAYS WANNA PROVIDE AMPLE TIME TO, UM, TO GET THROUGH THAT.
UM, WE'RE NOT ANTICIPATING ANY PUBLIC ACCESS NEEDED, UM, FOR INFRASTRUCTURE, BUT IF WE DO NEED IT, THAT'S THERE.
UM, PROPERTY MANAGEMENT, UNLESS IT'S SOMEBODY OTHER THAN THE DEVELOPMENT ENTITY, THEN WE WOULD WANT, UM, THE PROPERTY MANAGEMENT GROUP TO BE APPROVED IN ADVANCE.
UM, SMALL BUSINESS INCLUSION, THOSE OF YOU HAVE BEEN ON TIP BOARD FOR A WHILE KNOW THAT WE USED TO HAVE A MINORITY WOMEN OWNED BUSINESS GOAL THAT HAS NOW SHIFTED TO MORE OF A SMALL BUSINESS FOCUS PROGRAM, UM, WHICH IS STILL A WORK IN PROGRESS.
BUT, UM, TREY'S BEEN WORKING WITH PROCUREMENT ON, UM, GETTING HIS PAPERWORK IN AND GETTING, YOU KNOW, VENDOR LIST TO, UM, TO MEET THAT, UM, THOSE REQUIREMENTS.
QUARTERLY REPORTING, UM, ONCE THE AGREEMENT'S EXECUTED, WE'LL ASK FOR, UM, QUARTERLY REPORTS UNTIL THE PROJECT'S SUBSTANTIALLY COMPLETE LOCAL HIRING.
THIS IS AGAIN, YOU KNOW, ANY JOBS CREATED BY THE PROJECT.
WE WOULD, UM, WANNA SEE THE DEVELOPER OR THE TENANTS, UM, MAKE AN EFFORT TO HIRE, YOU KNOW, LOCAL RESIDENTS.
UM, MINOR MODIFICATIONS AND A 12 MONTH DEADLINE EXTENSION COULD BE CONSIDERED BY THE TIP BOARD.
UM, MINIMUM OCCUPANCY, AS I MENTIONED EARLIER, THE IDEA WAS, UM, THE UPPER FLOOR PLUS AT
[00:15:01]
LEAST ONE TENANT SPACE AND THE GROUND FLOOR, WHICH WOULD'VE WEIGH ABOUT 60% OCCUPANCY FOR THAT 7,000 MINIMUM SQUARE FEET.UM, ONGOING MINIMUM OCCUPANCY WE WANT FOR A PERIOD OF FIVE YEARS, UM, TO HAVE THAT OCCUPANCY MINIMUM, UM, CONTINUE.
OTHERWISE WE GET INTO LIKE DEFAULT AND CURE KIND OF PROVISIONS THERE.
ASSIGNMENT, THIS IS JUST SOME STANDARD PROVISIONS WHERE UNTIL THE PROJECT'S ACTUALLY COMPLETE, THE AGREEMENT CAN'T BE ASSIGNED ANYBODY BY A DIRECT AFFILIATE.
UM, AND OF COURSE IF THERE'S A LENDER INVOLVED, YOU KNOW, PROCEEDS CAN BE COLLATERALLY ASSIGNED TO A LENDER FORCE MAJEURE.
THIS IS AGAIN, UM, YOU KNOW, SOME GENERAL STANDARDS.
IF THERE'S SOMETHING ON THE DEVELOPER'S CONTROL THAT THE DIRECTOR CAN EXTEND DEADLINES BASED ON, UM, THAT PARTICULAR SITUATION.
UH, SO DEFAULT AND RECAPTURE AGAIN, OR IF SOME OF THE ONGOING OCCUPANCY NOT, UM, MET, WE HAVE 180 DAY DEFAULT AND RECAPTURE PROVISIONS POST-CONSTRUCTION AUDIT.
THIS AGAIN RELATES TO THAT FIRST PAYMENT.
UM, WE'RE GONNA, YOU KNOW, LOOK AT ACTUAL COSTS AND IF THEY'RE SUBSTANTIALLY LESS THAN THE ORIGINAL BUDGET, WE COULD LOOK AT REDUCING OUR TIF SUBSIDY, UM, BY A CERTAIN AMOUNT.
UM, SO IF THERE'S A POSITIVE RECOMMENDATION TODAY WITH THE BOARD, THEN THE NEXT STEP WOULD BE CITY COUNCIL.
UM, IN THE APPENDICES, THERE'S A BREAKDOWN OF THE PROJECT DEVELOPMENT TEAM, UM, UNDERWRITING, UM, ALL OF OUR PROJECTS NOW GO THROUGH OUTSIDE UNDERWRITING.
SO OUTSIDE UNDERWRITER INDEPENDENTLY REVIEWED THE PROJECT.
UM, THE INITIAL REQUEST WAS 1.1 MILLION, BUT BASED ON, UM, A NUMBER OF CHANGES WITH THE DESIGN REVIEW PROCESS AS WELL AS, UM, THE WAY WE STRUCTURED OUR PAYMENT, UM, WHICH RELATED TO IT BASICALLY COST ADDITIONAL INTEREST CARRY.
SO WE DID, UM, IN CONSULTATION WITH OUR UNDERWRITER, INCREASE THE SUBSIDY TO 1.18.
UM, THIS IS JUST A QUICK OVERVIEW.
AGAIN, THIS IS OUR TIF PROJECT BUDGET, WHICH IS OUR GENERAL CAPACITY, NOT NECESSARILY ACTUAL CASH, BUT INCLUDING THIS PROJECT.
UM, THERE'S STILL A LOT OF CAPACITY IN TERMS OF OUR BUDGET FOR, UH, FUTURE PROJECTS.
AND THEN WITH OUR ALLOCATION POLICY, AGAIN, WE'LL FOLLOW THAT.
BUT, UM, GIVEN OUR, OUR GOOD FINANCIAL POSITION OF THE TIP DISTRICT, ONCE THE PROJECT IS COMPLETE AND ALL THE OBLIGATIONS ARE MET, WE ALREADY HAVE THE FUNDS AVAILABLE TO REPAY THE PROJECT.
SO, UM, WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS, TRY TO MINIMIZE AND SEE, JUST DO THIS, SEE IF THERE'S ANYBODY THAT HAS QUESTIONS.
LEMME SEE IF WE DRAG A LITTLE BIT.
OKAY, NOW WE CAN SEE THAT OTHER PEOPLE JOINED TOO.
SO QUESTION BOUNCE BETWEEN Y'ALL.
SO ON, UM, ONE OF THE CONDITIONS IS THE $3 MILLION IN, IN, IN INVESTMENT.
I UNDERSTAND THAT DOES NOT INCLUDE THE ACQUISITION OF THE PROPERTY, SO THAT RIGHT, RIGHT.
THE REASON WE DID THAT IS BECAUSE THE PROPERTY'S ACTUALLY BEEN OWNED FOR SEVERAL YEARS, SO IT'S NOT REALLY NEW INVESTMENT EVEN THOUGH IT IS A PROJECT COST BECAUSE IT'S BEING CONTRIBUTED.
SO THAT'S WHY THAT WAS EXCLUDED.
USUALLY, UM, UNLESS THE PROPERTY WAS PURCHASED IN THE LAST YEAR OR TWO, WE TYPICALLY DON'T INCLUDE IT.
WHICH LEADS ME TO MY NEXT QUESTION.
SO IT LOOKS LIKE YOU BOUGHT THE PROPERTY IN 2020 ISH, OR ABOUT FIVE 50? IS THAT BALLPARK? YEAH, THAT'S CORRECT.
SO, UH, THE 900 THAT WE CAME UP WITH FOR THE ACQUISITION PRICE, IS THAT BASED ON CURRENT APPRAISALS OR CURRENT APPRAISAL.
UM, DO WE HAVE A PROJECTION OF WHAT THE, THE INCREMENTAL FACT THAT THIS IS GONNA BE WITH THIS PROJECT WITH OFF? UM, BECAUSE THIS IS A REALLY SMALL PROJECT, UM, AND GIVEN THAT, YOU KNOW, ONLY A PORTION OF THE INCREMENT GETS CONTRIBUTED TO THE TIP DISTRICT, UM, BETWEEN NOW AND THE END OF THE LIFE AROUND 200,000 IS WHAT I'VE ESTIMATED.
AND IT'S NOT UNCOMMON FOR PROJECTS TO NOT COMPLETELY MAKE UP WHAT THE SUBSIDY IS.
UM, WHICH IS WHY WE ARE FORTUNATE THAT WE HAVE GENERAL INCREMENT TO SUPPORT THE PROJECT, BUT
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YET BASED ON AN ESTIMATED COMPLETION VALUE OF ABOUT 3.3 MILLION, UM, THAT WAS OUR ANALYSIS THAT BETWEEN NOW AND THE END OF THE LIFE WOULD PROBABLY BE JUST UNDER 200,000 THAT IT WOULD GENERATE.AND I'LL, AND I'LL SPEAK SPECIFICALLY TO EXISTING CAR WASH CONDITIONS, RIGHT? SO FROM A CAR WASH PERSPECTIVE, UM, WE JUMP DON'T CHARGE SALES TAX, RIGHT? SO THERE'S, THERE IS A SALES TAX COMPONENT THAT WOULD COME THROUGH WITH BASED ON NEW TENANTS MM-HMM
UM, YOU SAW THE PROPERTY TAXING KIND OF WHAT'S ON THE, THE DA ROLLS FROM THAT PERSPECTIVE.
AND THEN FROM AN INVENTORY PERSPECTIVE, WE HAVE VERY LITTLE AT A CAR WASH.
UM, SO WHEN YOU START TALKING ABOUT, YOU KNOW, THE OTHER ADDITIONAL COMPONENTS THAT ARE KIND OF CARRYING ON, YOU KNOW, BUSINESS AND PROPERTY ROLLS, UM, YOU KNOW, THAT ALL FACTOR KIND OF INTO, INTO SUSAN NUMBERS.
WE DON'T REALLY EVEN LOOK AT THAT 'CAUSE OUR FOCUS IS LIKE ON, ON REAL PROPERTY, BUT THAT IS A BENEFIT TO THE CITY AS A WHOLE IS THE INCREASED SALES TAX, WHICH WE HAVEN'T PRIVATE PROJECT IN PART BECAUSE I KNOW, UM, TREY IS STILL LIKE, YOU KNOW, EXPLORING WHO THOSE TENANTS MIGHT BE.
UM, SO I SAW, YOU KNOW, COFFEE SHOP WAS ONE OF THE IDEAS IN THERE.
SO I ASSUME THERE'S NOT SPACE FOR A DRIVE-THROUGH THIS.
RIGHT? THERE IS A DRIVE-THROUGH THE SWEEP HAVE ONE, THE WESTERN BOTTOM LEFT RIGHT.
SO IF YOU LOOK AT THE SITE PLAN AND WE HAVE, UM, YOU KNOW, THAT DRIVE-THROUGH KIND OF COMPLETELY IN CIRCLES THE EXTERIOR PERIMETER OF THE BUILDING, UM, AND SPACE, WE CAN STACK ALMOST 11 OR 12 VEHICLES BEFORE WE INTERFERE WITH ANY TYPE OF PARKING.
UM, AND THAT WESTERN EXIT IS AN EXIT ONLY LANE, UH, WHICH IS ONE OF THE, UM, IMPROVEMENTS THAT CAME OUT OF THE, THE PEER VIEW.
THERE WAS A LOT OF CONVERSATION ABOUT THE DRIVE THROUGH BECAUSE GENERALLY SPEAKING, YOU KNOW, WE'RE TRYING TO ENCOURAGE WALKABILITY, BUT THE REALITY GIVEN EXPLOITATION AND THE ABILITY TO REFRAC TENANTS, I THINK THE COMPROMISE WAS THAT, UM, WE WOULD'VE, YOU KNOW, WE WOULD APPROVE A DRIVE THROUGH TO TRYING TO MAKE THE BEST OF WHAT WE COULD WITH THE SITE.
THEN LAST QUESTION THEN I'VE GOT A COMMENT THAT I'LL SHUT UP.
UM, I'M TRYING TO FIND THE PERMIT TAPE.
OH, IT'S, UM, I'VE SEEN IT, IT'S LIKE SIX MONTHS AWAY, RIGHT? YEAH, THAT IS, THAT'S LIKE A CONTRACTUAL REQUIREMENT, BUT THE PLAN IS TO HAPPEN SOONER.
SO, UM, YEAH, SO MARCH 31, I KNOW THE GOALS TO HAVE IT SOONER, NOT TO SPEAK ILL OF ANYONE ELSE WHO MIGHT RESIDE IN THIS BUILDING.
I MEAN, WHERE ARE Y'ALL IN PERMITING PROCESS? HAVE WE STARTED YET? BECAUSE, YOU KNOW, WE'RE A LITTLE INFAMOUS IN THAT WORLD.
IT'S COMPLETED, IT'S COMPLETED EVEN BETTER.
UM, JUST IN CASE SOMEBODY CHANGES THEIR MIND AND WANTS TO RE RE-LOOK AT SOMETHING, THAT'S WHY WE PUT MARCH IN THERE.
GIVES US A LITTLE BIT OF OKAY.
THEN MY COMMENT FOR STAFF AND FAR THE RECORD IS THAT, YOU KNOW, I'M, I'M EXCITED TO SEE SOME DEVELOPMENT PROJECTS.
IT'S, UH, THIS IS I NINE, I THINK NINE.
I'M THE LARGEST PERSON ON THE BOARD AND I'VE NOT SEEN ONE YET.
UM, VERY EXCITED TO, UH, TO TO, UH, TO HAVE SEEN THIS WAS INTRIGUED BY THE SIZE, YOU KNOW, THIS IS SIGNIFICANTLY SMALLER THAN WE'VE CONSIDERED WITH OUR OTHER PROJECTS.
SO I'D, I THINK THE PHRASE I USED WI WITH YOU WAS THE DAM BREAKING TYPE OF THING THAT WHERE THIS, THIS COULD BE REALLY GREAT FOR OLD TIP DISTRICT ON SOME OF THESE SUPER OLD COMMERCIAL PROPERTIES.
IT LOOKS LIKE WE HAVE A COUPLE PEOPLE.
UM, I'M NOT SURE WHO IS FIRST.
CAN YOU GUYS HEAR ME OKAY? YEAH.
UM, JUST A, A COUPLE OF QUESTIONS AND I, I CAN'T HEAR.
IF EVERYBODY COULD SORT OF YELL TOWARDS THE MICROPHONE
UM, THAT'S, THAT'S WHAT I GET FOR NOT BEING THERE IN PERSON.
UM, SO HAS THE DEVELOPER CLOSED ON, ON FINANCING YET OR IS THAT JUST A, A PRECEDENT THAT'S BEEN SET? DO WE KNOW? WE'LL, WE'LL CLOSE CONTEMPORANEOUSLY WITH THE DEVELOPMENT AGREEMENTS AND THE, THE CITY COUNCIL APPROVAL.
SO IT'S, IT'S IN THE HANDS OF THE BANK, BUT WE WILL CLOSE IT AS, YOU KNOW, AS WE KIND OF GET OUR DEVELOPMENT DOCUMENTS FINALIZED.
UM, SO YOU JUST TALKED ABOUT THAT, UM, 150,000 ISH YEAR OCCUPANCY DEFAULT PENALTY.
UM, IS THAT STRONG ENOUGH IF YOU KNOW, TO PROTECT THE CITY IF IT SITS EMPTY? YEAH, I MEAN IT'S ONE OF THOSE THINGS WHERE WE IN THE PAST FOR, YOU KNOW, A SMALL PROJECT LIKE THIS, WE MAY NOT HAVE FOCUSED ON THAT, BUT WE'VE HAD SOME SITUATIONS WHERE WE'VE HAD, YOU KNOW, BROWN FLOORS SIT VACANT FOR A LONG PERIOD OF TIME.
SO WE STARTED PUTTING THESE PROVISIONS IN.
[00:25:01]
YOU KNOW, WE'RE, WE'RE TRYING TO ALSO BALANCE THE FACT THAT, YOU KNOW, IT IS, IT IS CHALLENGING.WE DON'T WANNA LIKE PUT SOMEBODY IN A DIFFICULT FINANCIAL POSITION, BUT IT, BUT IT SEEMED LIKE A FAIR, A FAIR WAY TO GO IN THIS CASE.
UM, DO WE HAVE, WHAT'S THE, I, I SAW IN ONE OF THE DOCUMENTS WE'VE, THE CITY'S WORKED WITH THIS DEVELOPER I THINK ONE OTHER TIME.
DO WE HAVE A GOOD TRACK RECORD WITH THEM? THIS'LL BE, UM, TREY'S FIRST PROJECT 'CAUSE HE'S MORE OF A BUSINESS OWNER, BUT OTHER PEOPLE ON THE DEVELOPMENT TEAM MM-HMM
I DUNNO IF YOU WANNA SPEAK TO THAT.
SO FROM, FROM MY PERSPECTIVE, RIGHT, THIS IS MY FIRST TIME ENGAGING WITH THE CITY FROM A DEVELOPMENT PERSPECTIVE.
UM, BUT WE HAVE PARTNERED WITH FOLKS ON THE TEAM THAT HAVE, YOU KNOW, HAD ENGAGEMENT, YOU KNOW, OVER THEIR LIFE CYCLES, PROFESSIONAL LIFE CYCLES.
SO, WHICH HAVE GUIDED KIND OF US TO GET TO THIS POINT.
I JUST WANNA SAY LOVE THE DESIGN AND THE LOCATION.
YOU'RE RIGHT ACROSS FROM ONE OF OUR FAVORITE RESTAURANTS, RESIDENT TAQUERIA.
SO WE WILL BE BY TO SEE THE DEVELOPMENT AS IT HAPPENS.
UM, I JUST HAD A QUICK QUESTION ABOUT WHAT YOU SAID, SUE.
UH, HOW MUCH, UH, THIS IS GONNA THROW OFF OVER THE LIFE OF A TIFF.
UH, YOU SAID IT'S ABOUT, YOU DID THE CALCULATION ABOUT 200,000.
IS THAT JUST IN TIFF INCREMENT OR IS THAT YEAH, JUST, JUST IN REAL PROPERTY.
IN FACT REALLY JUST CITY REAL PROPERTY.
'CAUSE I THINK BY THE TIME THIS GETS COMPLETED, DALLAS COUNTY'S CONTRIBUTION WILL LIKELY BE CAPPED OUT.
SO THIS IS JUST CITY REAL PROPERTIES CONTRIBUTION TO THE TIF FUND.
SO THAT EXCLUDES, UH, REAL PROPERTY TO THE CITY AND TO THE COUNTY.
IT EXCLUDES THE GENERAL FUND PORTION AND THE COUNTY FUND.
IT DOESN'T INCLUDE ANY SALES TAX OR BUSINESS PERSONAL PROPERTY.
WELL THIS, THIS THROWS OFF A LOT MORE THAN 200,000.
IF YOU COUNT OTHER THINGS BESIDES JUST THAT.
SO THIS IS, THIS IS A, IT WILL MORE THAN PAY FOR ITS, THANK YOU.
DIDN'T WANT PEOPLE WITH THE WRONG IMPRESSION ABOUT HOW MUCH THIS IS ACTUALLY GONNA, GONNA SPIN OFF.
UM, AS A POINT OF ORDER, IF WE DEFER OUR PUBLIC COMMENT, UM, BEFORE WE TAKE A MOTION ON THIS, KNOW, IF YOU WANT TO ASK IF ANYBODY FROM THE PUBLIC HAS ANY COMMENTS.
I WAS GONNA SAY, DO WE I, ON THIS ITEM OR ANY OTHER ITEM, RIGHT? YEAH.
REALLY IT'S REALLY JUST THIS ITEM MORE THAN MINUTES.
SO, UM, SO I'LL OPEN IT UP IF THERE'S ANY OTHER PUBLIC COMMENT ANYONE WOULD LIKE TO MAKE COMING FROM THE COMMUNITY.
UM, I GUESS I'LL GO AHEAD AND OPEN IT FOR A MOTION.
DO I HEAR A SECOND? I SECOND HEAR A SECOND.
UH, IS THERE ANY DISCUSSION ABOUT THE MOTION? AND WHILE Y'ALL ARE THINKING OF THAT, I'LL JUST GO AHEAD AND THROW IN MY 2 CENTS WHILE I HAVE THE OPPORTUNITY HERE.
UM, AFTER LOOKING AT THE PRESENTATION AND LISTENING, YOU KNOW, IT'S MY PERSPECTIVE THAT A, THIS MEETS THE GOALS OF THE SKILLMAN QUARTER TIFF, UM, WHICH IS BASICALLY REVITALIZATION OF THE SKILLMAN CORRIDOR, BUT WE ALSO HAVE THREE ADJUNCT SPURS, IF YOU WILL.
IS THAT A TEXAS TERM OR A RAILROAD TERM? BUT THAT INCLUDES FOREST, ELIA, FOREST, UH, ABRAMS AND, UH, WALNUT HILL IN ODELIA, WHICH WE HAVE HAD SOME, UH, TIFF INVESTMENT EARLIER, BUT WE'VE SEEN THAT ALL THREE OF THOSE IMPACT THE CORRIDOR, WHICH IS THE, THE MAIN STREET OF LAKE HIGHLANDS.
AND UM, SO THIS FITS WITHIN THAT.
UM, I THINK IT'S A SECONDLY, I THINK IT'S A POSITIVE, ATTRACTIVE, UM, PROJECT AND I THINK IT WILL, UM, BRING THE UPGRADES THAT WE'RE LOOKING FOR.
UM, AND I THINK, YOU KNOW, WE KNOW DEVELOPMENT BEGETS DEVELOPMENT AND I THINK THAT SEEING THIS WILL HOPEFULLY KICK OFF SOME OTHER THINGS AS WELL.
SO, UM, I'M LOOKING AT THIS AS ALL POSITIVE.
SO DOES ANYBODY HAVE ANY OTHER COMMENTS THEY'D LIKE TO MAKE? OKAY, LET'S TAKE A VOTE.
UM, DO WE APPROVE THE MOTION? ALL IN FAVOR SAY AYE.
[00:30:01]
MOTION PASSES UNANIMOUSLY.I THINK THAT'S THE FASTEST, INCLUDING THE STREET BY PROJECT
UM, SO WERE, WE CAUGHT UP ON OUR AGENDA? I THINK THAT'S