Oct 26, 2026 South Dallas Fair Park Opportunity Fund Regular Meeting

AGENDA ITEM NUMBER FIVE, WHICH IS A BRIEFING OF THE FISCAL YEAR 2027 NOFA, HUMAN DEVELOPMENT, UH, NOTICE OF FUNDING, UH, THAT OPENED HERE RECENTLY.

ALL RIGHT.

NEXT AGENDA

[3. Approval of Minutes –September 21, 2026, SDFPOF Board Special Call Meeting]

ITEM.

AGENDA ITEM NUMBER THREE, WHICH IS THE APPROVAL OF MINUTES.

EVERYBODY SHOULD HAVE RECEIVED THE MINUTES IN THE BOARD PACKET, INFORMATION RECEIVED OR ANY QUESTIONS, COMMENTS, FEEDBACK OR CHANGES ON THAT? IF NOT, IS THERE A MOTION? SO MOVED BY MR. DR.

THERE A SECOND.

SECOND.

SECOND BY MR. UH, MR. ENRIQUE? ALL IN FAVOR? ANY OPPOSED? MINUTES APPROVED.

NEXT AGENDA ITEM, AGENDA ITEM NUMBER FOUR, PUBLIC SPEAKERS.

MS. HEATHER, DO WE HAVE ANY PUBLIC SPEAKERS SIGNED UP THIS EVENING? NO, THERE WAS NOBODY SIGNED UP.

COULD YOU REPEAT THAT, HEATHER? NO, THERE WAS NOBODY SIGNED UP.

[5. Briefing: FY27 Human Development Notice of Funding Availability – Office of Economic Development]

UH, WE'LL RECEIVE AN UPDATE ON THAT.

I KNOW WE'VE HAD ONE INFORMATIONAL SESSION THERE, UH, WITH A FEW UPCOMING, UH, ONE MORE IN PERSON AND ONE, I BELIEVE IT'S GONNA BE ONLINE.

SO, UH, HEATHER, I WILL, UH, LET YOU, UH, GO AHEAD AND TAKE OVER, UH, WITH THE UPDATE ON THE NOFA.

YES.

CAN YOU SEE THE SLIDE? WE CAN, YES.

UM, SO WITH THE NOFA OPENED ON THE 13TH, UM, IT WILL CLOSE ON DECEMBER 4TH.

AS YOU ALL KNOW, WE HAD OUR FIR FIRST INFORMATION SESSION ON OCTOBER 22ND.

UM, WE HAD ONLY TWO PEOPLE THERE, BUT WE DO HAVE MORE RSVPS FOR FUTURE SESSIONS.

UH, I WILL ALSO SAY WE SENT IT OUT ON OUR LINKEDIN AND FACEBOOK.

IT WAS A FRIDAY MEMO TO CITY COUNCIL.

UM, IT WAS PICKED UP BY THE CITY SOCIAL MEDIA FEEDS.

SO I'M ANTICIPATING, UM, A LOT MORE INTEREST MOVING FORWARD.

WE ISSUED A PRESS RELEASE AND THIS YEAR, UNLIKE LAST YEAR, WE DIDN'T SEE THAT GET PICKED UP ANYWHERE.

UM, AND SO I THINK, YOU KNOW, WE ARE BUILDING SOME MOMENTUM ON IT, SO WE'RE ANTICIPATING MORE, UM, ENGAGEMENT AS WE MOVE FORWARD.

AND WE RECEIVED A LOT OF EMAILS ASKING QUESTIONS ABOUT THE NOFA, SO WE KNOW THAT PEOPLE ARE AWARE OF IT.

UM, WE'VE HAD 85 WEBPAGE VIEWS ON OUR ECO WEBSITE, AND WHEN I LAST LOOKED AT OUR LINKEDIN POST, WE HAD OVER 800 IMPRESSIONS FOR THE THE NOFA.

UM, OUR NEXT IN-PERSON INFO SESSION IS NOVEMBER 10TH AT 10 30 AT THE MLK LIBRARY.

AND THEN AS THE CHAIR MENTIONED, WE ALSO ADDED A TEAMS VIRTUAL SESSION ON NOVEMBER 19TH.

UM, AND SO I JUST COVERED THE OUTREACH.

UM, NEXT STEPS, ONCE WE GET ALL THE APPLICATIONS IN ON THE FOURTH, WE WILL START REVIEWING AND THEN WE WILL SCORE THEM TO GET TO A SCORE OF 80.

AND THEN AS A REMINDER THAT ANYTHING THAT SCORES ABOVE AN 80 WILL BE PRESENTED TO THE BOARD, UH, FOR RECOMMENDATION FOR AWARD AND AMOUNTS.

I HAVE A QUICK QUESTION, HEATHER, ON THE LINKEDIN PROFILE, UM, IS IT THE CITY OF DALLAS LINKEDIN PROFILE OR IS IT THE OFFICE OF ECONOMIC DEVELOPMENT? 'CAUSE WE CAN CERTAINLY SHARE THOSE WITH OUR, UM, FOLLOWERS.

IT'S THE OFFICE OF ECONOMIC DEVELOPMENT FOR LINKEDIN, AND IT IS THE CITY OF DALLAS, INSTAGRAM AND FACEBOOK ALSO.

AND R-E-O-E-D, FACEBOOK CHAIRMAN.

I GUYS, UM, THE HEATHER, QUICK QUESTION FOR ON THE INFO SESSION.

THAT WAS ON THE 22ND.

I THINK I MISSED THE PART WHERE YOU COVERED THE ATTENDANCE, UH, METRICS.

UH, IT WAS, IT WAS LIGHTLY ATTENDED, SO PEOPLE GOT VERY, UM, IN-PERSON ASSISTANCE, VERY HAND HANDS-ON.

WE HAD TWO PEOPLE THERE.

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK? UH, HOW MANY RSVPS DO WE HAVE, HEATHER, FOR THE, UH, UPCOMING, UH, INFO SESSION? UM, AS OF FRIDAY? I THINK WE HAD EIGHT, BUT MCKAYLA IS TRACKING THAT, SO SHE MIGHT HAVE A MORE UPDATED ANSWER.

[00:05:01]

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK ON THE STATUS OF THE NOFA RELEASE AND ANY UPCOMING SESSIONS? CHAIRMAN, RICK IS, UM, I GOT A FOLLOW UP QUESTION, HEATHER.

UM, ON THE, REGARDING THAT, THE, UH, THE DEADLINES FOR APPLICATIONS IN THE EVENT THAT WE, UM, DON'T FEEL AS MANY APPLICATIONS OR, YOU KNOW, MAYBE DON'T EXECUTE THE FUNDS, UH, WOULD THAT BE THE POINT WHERE WE DECIDE IF WE WANNA DO A SECOND NO RELEASE FOR, FOR FY 27? YEAH, I MEAN, I THINK IF WE HAVE INSUFFICIENT APPLICATIONS OR IF WE DON'T FULLY AWARD ALL OF THE $200,000, WE COULD LOOK AT DOING A SECOND ROUND IN ABOUT SIX MONTHS.

EXCELLENT.

AND THAT WOULD BE SIX MONTHS OUT.

THAT WAS MY NEXT QUESTION.

MM-HMM .

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK REGARDING THE NOTE FOR RELEASE AND OR ANY UPCOMING SESSIONS? UM, ARE WE ABLE TO GET A FLYER WITH THAT INFORMATION FOR THE NOFA? SURE.

UM, LIKE A PAPER FLYER? YEAH, JUST SOMETHING YOU COULD SEND DIGITAL.

I HAD A COUPLE OF PEOPLE AT, UH, THE COMMUNITY MEETING TODAY AT POINT SOUTH ASKED ABOUT, UM, WHEN IT WAS OPEN AND WHEN DID IT CLOSE AND I DIDN'T, I ACTUALLY DIDN'T KNOW.

YEAH, WE CAN, I'LL SEND YOU SOME GRAPHICS YOU CAN SHARE.

OR JUST, YOU KNOW, I PROBABLY JUST, THEY JUST WANTED TO KNOW THE DATES AND I TOLD 'EM, I KNOW THAT IT START, I DID KNOW THE START DATE.

I JUST DIDN'T KNOW THAT, UM, WHEN IT CLOSED.

SURE.

WE'LL SEND YOU SOMETHING.

WILL IT HAVE THE INFORMATION SESSIONS ON THERE AS WELL? UM, LET ME SEE WHAT WE HAVE AND IF WE DON'T HAVE SOMETHING, WE'LL COMPILE IT INTO ONE OR JUST PUT IT IN THE EMAIL.

HEATHER, I'M NOT PICKING, I CAN JUST, YOU KNOW, YOU KNOW WHAT I MEAN? IT DOESN'T HAVE TO BE A FLYER, WHATEVER.

I JUST NEED THE INFORMATION.

OKAY, THANK YOU.

I'LL SEND THAT.

WE CAN, WE'LL SEND IT TO THE WHOLE BOARD.

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK? HEATHER, WHICH PLATFORMS DID YOU SAY THAT THE INFORMATION WAS ALREADY ON? SO IT'S ON LINKEDIN.

OUR LINKEDIN, THE OED LINKEDIN PAGE, THE CITY'S INSTAGRAM PAGE.

THE, UM, OUR DEPARTMENT O'S FACEBOOK PAGE AND THE CITY'S FACEBOOK PAGE.

OKAY, PERFECT.

AND THEN I ALSO THINK THE COUNCIL MEMBER VASSEL DUO WAS SENDING SOMETHING OUT IN HIS NEWSLETTER SOON IF IT HASN'T GONE OUT ALREADY.

ANY OTHER QUESTIONS, COMMENTS, FEEDBACK? HEATHER? DO WE AT ALL HAVE THE ABILITY OR CAPABILITY TO, UM, TEXT, DO TEXT REMINDERS FOR ANYBODY WHO HAS REGISTERED OR HAVE COME INTO THE PIPELINE IN THE PAST, UM, TO ALERT THEM THAT IT'S OPEN JUST AS MAYBE A, AN EASIER WAY TO COMMUNICATE WITH FOLKS? UH, YOU KNOW, SOMETIMES IT GETS BURIED IN FOLKS' INBOX OR SPAM OR WHATEVER THE CASE MAY BE, OR THEY JUST MISS IT ON SOCIAL MEDIA, BUT WE PROBABLY HAVE THEIR CONTACT INFORMATION SOME WAY OR ANOTHER WITH SOME INFORMATION THAT'S BEEN SUBMITTED.

UH, DO WE HAVE THE ABILITY TO, UH, PUSH OUT OUTBOUND TEXT MESSAGE REMINDERS OR, AND OR ALERTS FOR ANYBODY THAT'S IN OUR ECOSYSTEM? NOT REALLY.

UM, WE CAN DO A BULK EMAIL, BUT WE GENERALLY HAVEN'T DONE A BULK TEXT APPROACH.

IS THAT SOMETHING THAT WOULD BE POSSIBLE TO, TO HAVE MAYBE JUST THE NUMBER DEDICATED TO TO THAT? IS THAT SOMETHING WITHIN OUR SCOPE OF CAPABILITY TO BE ABLE TO DO? I THINK THAT PROBABLY HELP.

I WOULD HAVE TO CHECK WITH COMMS ON THAT.

I JUST DON'T KNOW.

WE'LL STAND FOR FURTHER UPDATE ON THAT.

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK REGARDING THE NOPA? UM, WHAT WAS THE PAGE, HEATHER ON LINKEDIN? SO IT'S THE OFFICE OF ECONOMIC DEVELOPMENT.

GOTCHA.

AND I THINK IT HAS, OR THE LAST I CHECKED IT HAD EIGHT REPOSTS AND 800 IMPRESSIONS.

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK? OKAY.

[6. Briefing: SDFPOF Board Tour]

[00:10:01]

I'M HEARING NONE.

SO WE'LL MOVE ON TO THE NEXT AGENDA ITEM, AGENDA ITEM NUMBER SIX, WHICH IS A BRIEFING ON OUR UPCOMING SOUTH DALLAS FAIR PARK OPPORTUNITY FUND BOARD TOUR, WHICH, UH, IS A QUICK REMINDER.

IS THIS COMING FRIDAY? UM, SO HEATHER, I'LL LET YOU GO AHEAD AND, UH, RECAP OF SOME DETAILS THERE.

SO, UM, THE, THE BOARD TOUR IS SCHEDULED FOR FRIDAY AT 9 45.

GREEN ELEVATORS ON L ONE.

UM, IT IS POSTED AS A PUBLIC MEETING, SO WE NEED A QUORUM.

AND RIGHT NOW I ONLY HAVE TWO RSVPS, UH, FOR THE BOARD MEMBERS.

AND I KNOW, UH, MR. DAWKINS IS TRAVELING BACK, SO HE WASN'T A FIRM CONFIRMATION, BUT IF YOU HAVEN'T RSVP'D AND YOU PLAN TO ATTEND, PLEASE LET US KNOW.

OTHERWISE WE'RE GONNA HAVE TO PUSH IT TO A DIFFERENT DATE.

UM, THE STOPS ARE MALCOLM'S POINT AND THEN, UH, PARK SOUTH WHITE MCA AND THEN THERE WILL BE AN OPTIONAL LUNCH AT THE BONTON MARKET CAFE, UM, JUST FOR SOME RELAXATION AND CHATTING.

AND WOULD YOU BE ABLE TO REMIND EVERYBODY AGAIN, UH, THE BEST WAY TO RSVP? CAN THEY JUST SEND YOU AN EMAIL? UM, WHAT, WHAT'S THE BEST WAY TO CONFIRM? YEAH, THAT'S FINE.

YOU CAN SEND, I MEAN, THERE WAS A LITTLE POLL IN THE EMAIL, BUT YOU CAN ALSO JUST SEND ME AN EMAIL AND THAT'S FINE AS WELL.

AND WE DID GET, UM, MS. WISE'S, RSVP, AND I HAVE SOMEBODY, UH, CHAIRMAN ENRIQUEZ, RSVP.

AND I KNOW MS. SIMS CAN'T MAKE IT.

UNDERSTOOD.

I, I I PLAN TO ATTEND.

UH, CAN WE DO ATTEND TENTATIVE VERBAL NOW OR SHOULD WE JUST MM-HMM.

YEAH, THAT'S FINE.

UM, OKAY.

SO MYSELF, UH, CHAIRMAN ENRIQUEZ, UM, WHO, WHO ELSE WILL BE ABLE TO ATTEND TENTATIVE, JUST SO WE CAN GET AN IDEA NOW, UH, IF WE, IF WE DON'T HAVE ENOUGH AND WE, WE CAN THINK ABOUT NOW PUSHING IT TO ANOTHER DATE IF WE DON'T HAVE IT.

SO, UM, WHO, WHO, WHO IS THAT? I, I DIDN'T HEAR? UH, WHOEVER MADE IT.

UH, DESTINY, I WILL BE YOUR CONFIRM.

YES.

OKAY, SO WE'VE GOT DESTINY, UH, CARL SELF.

UM, WE NEED SIX, UH, FOUR QUORUM.

SO IS THERE ANYBODY ELSE THAT THINK THAT WE'LL BE ABLE TO MAKE IT? UM, IF WE DO, WE DON'T HAVE THREE MORE, THEN, UH, LET'S LOOK AT PUSHING TO ANOTHER DATE.

UM, THAT WAY WE CAN LET THESE ORGANIZATIONS KNOW AS SOON AS POSSIBLE.

SO THEY'RE, THEY'RE NOT FINDING OUT THE DAY BEFORE THAT, UH, THEY'RE NOT GONNA BE HOSTING ANYBODY.

SO, SO FAR WE HAVE THREE.

UH, ARE THERE ANY OTHER CONFIRMATIONS AT THIS POINT? UH, BECAUSE IF NOT, THEN WE'LL LOOK TO PUSH TO ANOTHER DAY.

I'M HEARING NONE, SO, OKAY.

SO LET'S CALL IT, LET'S CALL IT FOUR NOW.

UH, UH, MR. DAWKINS.

ALRIGHT, THERE'S TWO MORE.

SO WE TEND TO BE HAVE FIVE NOW.

UH, TENTATIVELY HAVE FIVE.

IS THERE ONE MORE THAT THINK THEY'LL BE ABLE TO MAKE IT? OKAY.

I'M, I'M HEARING NONE.

SO, UM, CHAIRMAN ENRIQUEZ, LET'S GO AHEAD AND THINK ABOUT A PLAN B THERE, UM, FOR SECONDARY DATE, UM, BECAUSE IT LOOKS LIKE PROBABLY WON'T HAVE ENOUGH.

I THINK WE, WE HAVE FIVE RIGHT NOW.

UM, SO DO YOU HAVE ANY THOUGHTS ON, ON THE ATTENDING BACK UPDATE? I'LL, I'LL FOLLOW UP WITH STAFF AND SEE YOU HOW WE, UH, WHEN WE SCHEDULE WITH THE UPCOMING HOLIDAYS.

UM, I WANT TO MAKE SURE THAT WE'RE MINDFUL OF THAT TIME.

UM, BUT MAYBE IT'S SOMETHING THAT WE HAVE TO PUSH INTO THE, INTO THE NEW YEAR.

I, I HAVE A QUESTION.

IF, IF I'M ABLE TO JUST MEET THERE, UM, I'M, I SHOULD BE ABLE TO GET AWAY.

I JUST DON'T, I WOULDN'T BE ABLE TO COME TO THE, UM, MEETING POINT FIRST.

HEATHER, DO, DO WE HAVE TO HAVE A QUORUM TO, TO BEGIN THE TOUR? HOW, HOW DOES, WHAT ARE THE MECHANICS OF HOW THAT WORKS? I AM GOING TO DEFER TO JASMINE WHO IS SITTING IN THE, THE BRIEFING ROOM.

ALRIGHT, MS. JASMINE, I THINK IT'S JASMINE.

I JUST SEE A BACK OF HEAD.

[00:15:01]

UH, SO JASMINE LEFT THE ATTORNEY'S OFFICE.

GIVE A SECOND TO CHECK AND SEE HOW THIS WAS POSTED.

I'M JUST GONNA GO TO THE LAST THING, HEATHER.

IS THAT TIME, UM, THE TIME ON 9 45? IS THAT SET IN STONE? WELL, THE, THE FIRST MEETING OR THE FIRST APPOINTMENT IS AT MALCOLM'S POINT AT 10.

SO 9 45 GAVE US THE TIME TO, YOU KNOW, MEET, ESTABLISH, FORUM, AND DRIVE THERE.

BECAUSE I, I, I'M STILL TENTATIVE, UM, BUT BOTH OF THESE PLACES ARE LIKE THREE PLACES, THREE LIKE THREE MINUTES FROM WHERE I'M AT IN THE KITCHEN.

SO, I MEAN, I COULD PROBABLY GET AWAY, BUT I GOTTA GET BACK REAL QUICK.

MM-HMM .

SO THAT'S WHY I'M TENTATIVE.

'CAUSE I'M TRYING TO GET SOMEBODY TO KIND OF STEP IN AND HELP ME REAL QUICK.

UM, SO REAL, REAL, REAL QUICK, JUST SO WE, WE CAN KEEP IT, UH, MOVING.

UH, I'M GONNA LET CHAIRMAN ENRIQUEZ, UH, HOP IN ON THIS ONE.

I THINK THE BEST THING TO DO IS CHAIRMAN ENRIQUE, RIGHT? YEP.

UM, UM, SO JUST KIND OF TALKING THROUGH WHAT ATTENDANCE COULD LOOK LIKE.

IT PROBABLY WILL BE SMARTEST FOR US TO, TO KICK INTO THE NEW YEAR, UM, EITHER JANUARY OR FEBRUARY, UH, JUST TO MAKE SURE THAT WE CAN CONCRETELY HAVE ATTENDANCE AND ALSO TRY TO GET AS HIGH OF AN ATTENDANCE AS WE POSSIBLY CAN.

UM, SO, UM, HEATHER, I CAN FOLLOW UP WITH YOU DIRECTLY ON, YOU KNOW, PUTTING TOGETHER SOME DATES THAT WE COULD HAVE IN FRONT OF THE, THE BOARD AT THE NEXT, UM, UH, THE NEXT MEETING THAT WE HAVE.

SO WE CAN LOCK IN A DATE FIRMLY AND THEN LOOK TO GET SOME, UH, SOME, SOME CONCRETE ATTENDANCE.

WE WILL MOVE ON TO THE LAST AGENDA ITEM, WHICH IS AGENDA ITEM OR THE SECOND TO LAST, WHICH IS AGENDA ITEM NUMBER SEVEN, WHICH IS A, AND THIS IS A VOTE BY THE WAY.

THAT WORKS FOR ME.

EXCELLENT.

THANK YOU VERY MUCH FOR THE WORK.

I'M PUTTING THIS TOGETHER.

UM, I KNOW IN TANDEM WITH MULTIPLE OTHER PROJECTS OR THIS WAS ONE ADDITIONAL ONE, UM, BUT WE WILL RECONVENE.

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK ON THAT? UH, JUST QUICK RECAP.

WE WILL, UH, LOOK FOR ALTERNATIVE DATES JUST TO MAKE SURE THAT WE HAVE MAXIMUM PARTICIPATION.

UH, AND, UH, WE HAVE A, UH, A FULL SOLID GROUP TO GO ON THESE TOURS BECAUSE THE LAST TIME WE DID THIS, IT WAS SUPER IMPACTFUL.

UH, IT'S A GREAT TIME TO SEE THE PROJECTS AND, UH, YOU KNOW, GET A CHANCE TO, TO INTERACT WITH THE FOLKS INVOLVED IN THAT.

SO I WANT EVERYBODY TO HAVE THAT EXPERIENCE AND, UH, NOT TRY TO SHOESTRING SOMETHING TOGETHER AT THE, AT THE LAST SECOND, UH, UH, TO DO THAT.

SO, UH, IF THERE ARE NO MORE QUESTIONS, COMMENTS, OR FEEDBACK ON THAT, UH,

[7. Action: Review and recommend a modification to the loan agreement with Southfair CDC for the development of Malcolm’s Point Retail located at 2835 Al Lipscomb Way, Dallas, TX 75215, to subordinate the senior loan position to Texas Mezzanine Fund and provide an additional year of interest only payments]

UH, THIS IS A REVIEW AND A RECOMMENDATION OF A LOAN MODIFICATION FOR, UH, THE SOUTH FAIR CDC, UH, FROM MALCOLM'S POINT, UH, RETAIL PROJECT, UH, THAT JUST HAD ITS GROUNDBREAKING, UH, AND GRAND OPENING, UH, I BELIEVE TWO WEEKS AGO.

SO, UH, MS. HEATHER, I'LL LET YOU GO AHEAD AND TAKE OVER AND RECAP EVERYTHING, OR RECAP EVERYONE MAY NOT BE FAMILIAR, UH, ABOUT THIS PROJECT AND WHAT WE'RE DOING, UH, WHAT WE'RE PROPOSING, AND, UH, UH, ANSWER ANY QUESTIONS AFTER THAT.

SUBORDINATE THE CITY SENIOR LOAN TO TEXAS MEZZANINE FUND, AND THEY ALSO REQUESTED THAT WE PROVIDE AN ADDITIONAL YEAR OF INTEREST ONLY PAYMENTS, UM, AND TO INCREASE THE AMORTIZATION FROM 25 YEARS TO 30 YEARS.

UM, SO SOUTH FAIR CDC IS A PROJECT THAT THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND SUPPORTED IN 2024.

UM, THE ADVISORY BOARD RECOMMENDED A UNANIM APPROVAL FOR A SOUTH DALLAS FAIR PARK OPPORTUNITY FUND SENIOR LOAN IN AN AMOUNT NOT TO SEED 1,000,001 POINT $900,000.

UM, AND AT THE TIME THAT WE HAD CITY COUNCIL AND BOARD APPROVAL, TEXAS MEZZANINE FUND WAS GOING TO PROVIDE A LOAN OF $675,000 FOR THE PROJECT.

UM, SINCE THEN, CONSTRUCTION AND PROJECTS COSTS HAVE INCREASED AND AS A RESULT, UH, THE FINANCIAL CLOSED TEXAS MEZZANINE'S FUND IN INCRE LOAN INCREASED FROM THE 6 75 TO 1.4 MILLION.

UM, AND THE TOTAL DEVELOPMENT COST HAS INCREASED AS WELL, AND IT'S NOW APPROXIMATELY $3 MILLION.

SO, AS THE CHAIR SAID, THEY CELEBRATED THE RIBBON CUTTING ON OCTOBER 8TH.

THE CURRENT, UM, CONSTRUCTION IS SUBSTANTIALLY COMPLETE WITH THE INTERIOR FINISH OUT TO BE COMPLETED, UH, BY DECEMBER, 2026.

AND SHIPLEY'S DONUTS IS SCHEDULED TO OPEN EARLY, UH, 2027.

UM, TMF HAS REQUESTED THAT WE, UM,

[00:20:01]

UM, THE PURPOSE OF THE MODIFICATION IS TO REDUCE MONTHLY DEBT SERVICE ON THE SOUTH DALLAS FAIR PARK OPPORTUNITY LOAN BY APPROXIMATELY $600 ON OUR END.

AND IT'S APPROXIMATELY, I THINK IT'S $1,500 ON THE TMF LOAN.

UM, THIS WILL PROVIDE FOR A YEAR OF STABILIZATION AND A YEAR FOR LEASE UP SO THAT WE CAN REALLY ENSURE THE PROJECT IS ON STRONG FOOTING WHEN IT STARTS.

UM, AND WE WOULD RECOMMEND REVIEWING APPROVAL OF THE PROPOSED LOAN MODIFICATION.

HEATHER, ARE THERE ANY QUESTIONS, COMMENTS, OR FEEDBACK ON THE REQUEST? CHAIRMAN ENRIQUEZ? YEAH, UM, SO JUST SO THAT WAY I'M, I'M LOCKED IN.

WE'RE LOOKING TO REDUCE THE MONTHLY DEBT SERVICE BY 16 OR BY $600 PER MONTH FOR OUR PORTION OF THE LOAN, WHICH IN ESSENCE IS REDUCING THE INTEREST EXPENSE, IF I UNDERSTAND THAT CORRECTLY.

CORRECT.

I MEAN, SO IF YOU RECALL, IT WAS ALWAYS A, UM, THERE WAS A BALLOON PAYMENT, SO IT'S ALWAYS HAD A 10 YEAR REPAYMENT AND THAT WON'T CHANGE.

UM, BUT WHAT WE WOULD DO IS WE WOULD MOVE THE AMORTIZATION TERM FROM 30, FROM 25 YEARS TO 30 YEARS SO THAT IT REDUCES THE MONTHLY PAYMENT, EVEN THOUGH THE, THE BALLOON WILL STILL BE THE SAME AND WE WILL STILL BE, WE ACTUALLY NET A LITTLE BIT MORE MONEY BACK THAN WE WOULD'VE UNDER THE ORIGINAL TERMS REFRE REFINANCING ON THE TERM THEN.

GOT IT.

UM, WELL, AND AT YEAR 10 SHE'LL EITHER SHE'LL HAVE TO EITHER PAY IN FULL OR THERE WOULD NEED TO BE SOME SORT OF REFI, BUT THE IDEA FOR BOTH LOANS FROM BOTH TMF AND UM, US, WAS THAT THE TERM OF THE, THE PAYMENT TERM WAS 10 YEARS? I DID ANSWER YOUR QUESTION.

CHAIRMAN RUIZ? YES.

YES.

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK, UH, ON THE LOAN MODIFICATION REQUEST, CAN YOU JUST GO BACK TO THE SLIDE WITH THE NUMBERS? THE PREVIOUS SLIDE? THANK YOU.

WAIT, WAS THERE A QUESTION? SORRY, I DIDN'T HAVE A QUESTION.

I JUST WANTED TO SEE THE NUMBERS AGAIN.

WE LOOKED AT THE NUMBERS INTERNALLY.

OH, OKAY.

UNDERSTOOD.

UH, MR. DAWKINS, IS THIS THE SLIDE SHE WANTED TO SEE OR WAS IT THE PREVIOUS ONE? IS THAT MR. UBA? YES, IT'S THE SIGN.

OH, OKAY.

SO MY QUESTION IS, UM, THIS IS JUST EVERYBODY RATTLY STEPPING UP THEIR PROPORTIONAL OBLIGATION AND EXTENDING THE TERM, WE'RE NOT SWAPPING PLACES OF SUBORDINATION WITH ONE ANOTHER, WHICH IS RADICALLY EXTENDING AND EVERYBODY EXTENDING THEIR OBLIGATION, CORRECT? NO, THEY HAVE REQUESTED THAT WE SUBORDINATE TO THEM.

SO WE WERE THIS, WE WERE, WE ARE IN SCENE FIRST LIEN POSITION, AND THEY'RE REQUESTING, SINCE THEY'RE NOW PROVIDING 1.4 MILLION AND WE'RE PROVIDING 1.19 MILLION THAT THEY GO TO SENIOR.

SO THAT ENDANGERS OUR POSITION IN THE EVENT THERE, IN THE EVENT THERE'S NOT ENOUGH DEBT SERVICE TO COVER BOTH.

SO YES, SO THAT WAS WHY WE NEEDED TO LOOK AT KIND OF WHAT THE MONTHLY PAYMENT WAS TO ENSURE THAT THERE WOULD BE ADEQUATE CASH FLOW TO COVER THE DEBT SERVICE.

AND SO THAT WAS HOW WE GOT TO THE POINT OF THE AMORTIZATION TERM EXTENDING, UM, SO WE COULD, YOU KNOW, BRING DOWN THEIR MONTHLY COSTS A LITTLE BIT.

UM, AND ALSO WHY TMF WANTED US TO PROVIDE AN ADDITIONAL YEAR OF INTEREST ONLY.

SO SHE HAD A YEAR TO STABILIZE OPERATIONS.

OTHER, OTHER THAN SHIPLEY'S, IS THERE ANYONE ELSE SCHEDULED TO COME INTO THE SPACE, UH, FAIRLY IMMEDIATELY? YEAH.

SO I TALKED TO, UM, ANNIE ON FRIDAY, TODAY'S MONDAY, RIGHT.

I TALKED TO HER ON FRIDAY AND SHE ANTICIPATES HAVING AN EXECUTED LOI FOR THE REMAINING SPACE AT THE BEGINNING OF THE YEAR.

AND THE UNDERWRITER THAT ORIGINALLY LOOKED AT THIS TRANSACTION, UH, GAVE IT A SECOND REVIEW AND SIGNED OFF ON THIS.

WE DID NOT SEND IT BACK TO UNDERWRITING.

[00:25:04]

DO YOU, DO YOU THINK IT MERITS REVIEW OR IS THERE SOMETHING THAT YOU, IS THIS SOMETHING YOU THINK YOU JUST WOULD RATHER LOOK AT INTERNALLY? UM, I MEAN WE, WE DID A PRETTY DEEP DIVE ON THE NUMBERS AND WE, YOU KNOW, LOOKED AT WHAT HER INCOME WOULD BE AND WE LOOKED AT WHAT HER DEBT SERVICE WILL BE.

UM, AND IT'S, THE NUMBERS MAKE SENSE AS IT'S CURRENT, AS IT WOULD BE RESTRUCTURED.

UM, OBVIOUSLY AS YOU POINT OUT, THERE IS A RISK TO SUBORDINATING BECAUSE WE NO LONGER HAVE FIRST LIEN POSITION, BUT IT DOES, UM, ENSURE, YOU KNOW, TMF HAS MADE THIS REQUEST.

TMF BELIEVES IT'S A, IT'S STILL A GOOD DEAL.

THEY ARE A GOOD PARTNER FOR US IN SOUTH DALLAS FAIR PARK.

UM, AND WE THINK BY PROVIDING THIS ADDITIONAL TERM OF INTEREST ONLY IN REDUCING THE DEBT SERVICE THAT WILL END UP BEING A SUCCESSFUL PROJECT.

AND THE REMEDIES FOR BREACH IN THE CONTRACTUAL AGREEMENT ARE SUFFICIENT ENOUGH TO COVER THE DOWNSIDE RISK IN THE EVENT THAT THEY'RE UNABLE TO PROVIDE FOR THE YES, MOSTLY.

I MEAN, NOTHING IS GUARANTEED, RIGHT.

BUT WE BELIEVE THAT WE ARE ADEQUATELY PROTECTED.

UM, AND THE OTHER THING THAT WE HAD TALKED TO ANNIE ABOUT IS POTENTIALLY SETTING UP A RESERVE FUND TO OFFSET, UM, SOME OF THE RISK FOR THIS AS THEY SELL PROPERTY.

THEY WOULD PUT SOME OF THOSE PROCEEDS INTO A DEDICATED RESERVE TO SUPPORT MALCOLM'S POINT TO SORT OFFSET SOME OF THAT RISK THAT YOU'RE ALLUDING TO.

IS THAT A GUARANTEE? ARE THEY SETTING THAT UP CURRENTLY OR IS THAT SOMETHING THEY'RE THINKING ABOUT? UM, SHE WOULD NEED HER BOARD APPROVAL, BUT SHE WAS AMENABLE TO IT.

I'M SORRY, COULD YOU REPEAT THAT? SHE WOULD NEED BOARD APPROVAL TO DO SO, BUT SHE WAS AMENABLE TO DOING IT.

UNDERSTOOD.

ANY OTHER QUESTIONS, COMMENTS, OR FEEDBACK ON THEIR LOAN MODIFICATION REQUEST WITH THE MECHANICS? CAN I ASK A QUESTION? UH, WHO'S SPEAKING? LA JUAN SIGNS.

MR. SIGNS.

GO AHEAD.

CHAIRMANS.

UM, WHAT, DO YOU KNOW WHAT, HEATHER, DO YOU KNOW WHAT THE DEBT SERVICE COVERAGE RATIO IS WITH THIS? LIKE THE, THE BEFORE AND AFTER OF THIS? YEAH, RIGHT NOW.

HOLD ON.

I BROUGHT IT.

IS IT, I KNOW BETWEEN THE TWO LOANS, HOLD ON.

I HAVE IT RIGHT NOW.

THE DEBT SERVICE IS, LET'S SEE, HOLD ON, LET ME JUST DO THE MATH REALLY QUICKLY.

THE DEBT SERVICE ON OURS IS ABOUT 64,000.

THE DEBT SERVICE ON TMF IS ABOUT 96,000.

SO THAT'S ABOUT ONE, I THINK 1 59, 9 50.

UM, AND THEN THE EXPECTATION, IF WE REDUCED OURS, IT WOULD GO DOWN $600 A MONTH, AND TMF INDICATED THEIRS WOULD GO DOWN, I THINK 1500 A MONTH.

AND HOW DOES THAT COMPARE WITH THE NET OPERATING INCOME? LIKE WHAT'S THE ACTUAL RATIO? UM, OUR NOI IS, I MEAN, IT'S, IT'S VERY CLOSE TO ONE.

UH, SO IT WOULDN'T COVER WITHOUT THIS CHANGE ESSENTIALLY? CORRECT.

DO YOU KNOW HOW THE SUBORDINATION AGREEMENT IS, IS STRUCTURED? IF IT DOESN'T CASH FLOW TO COVER OUR PAYMENT IN FULL, DO WE GET PARTIAL PAYMENTS OR NO PAYMENT OR DO THEY JUST CUT INTO THEIR, THEIR CASH? HOW DOES THAT WORK? WE HAVEN'T DRAFTED THE SUBORDINATION AGREEMENT, SO I THINK IF YOU HAVE SOME RECOMMENDATIONS FOR WHAT THAT SHOULD INCLUDE, I WOULD SUGGEST WHEN YOU MAKE THE MOTION MOTION, IF YOU MAKE A MOTION TO APPROVE IT, YOU WOULD PUT THOSE CONDITIONS IN IT.

MAKE A PARTIAL PAYMENT, UM, OR YOU CAN DO INTEREST ONLY FOR THOSE PERIODS OUT.

BUT YEAH, WE HAVE A STRUCTURE WE USE SOMETIMES WHERE, I GUESS A STRUCTURE I'VE SEEN IN THE PAST IS WHERE THE SUBORDINATE LENDER IS SORT OF, IT SORT OF PROTECTS THE BORROWER WHERE IF, IF THEY'RE NOT AT LEAST AT A 1.0 COVERAGE, THE, YOU CAN EITHER

[00:30:01]

THAT'S SORT OF UP TO THE CITY.

UM, OR US I GUESS.

I DON'T KNOW HOW THAT WORKS, BUT IT PROTECTS THE BORROWER FROM HAVING TO ESSENTIALLY GO INTO THE RED TO BE ABLE TO MAKE THE PAYMENT TO THE SUBORDINATE LENDER.

UM, 'CAUSE WHAT YOU DON'T WANT TO DO IS EAT INTO THEIR ASH EVERY MONTH IF THEY'RE NOT HITTING THE DEBT SERVICE COVERAGE RATIO.

AND, AND SORT OF BACK TO, UH, MR. DAWKINS' POINT THAT THAT'S WHERE IT BECOMES A LITTLE BIT OF A RISK FOR US AND NOT COLLECTING OUR, OUR PRINCIPAL PAYMENT.

AND SOMETIMES MAYBE NOT EVEN THE INTEREST.

UM, 'CAUSE I'M ASSUMING THE UNDERWRITER, AND, AND CORRECT ME IF I'M WRONG, THEY PROBABLY UNDERWROTE THIS AT A HUNDRED PERCENT OCCUPANCY.

UM, AND IF SO, IF IT'S, IF WE'RE NOT IN A SITUATION OF A HUNDRED PERCENT OCCUPANCY, THE CASH FLOW'S PROBABLY WELL BELOW 1.0 DEBT SERVICE COVERAGE.

I MEAN, THEY DEFINITELY ASSUME THERE WOULD BE SOME RAMP UP TO GET TO A HUNDRED PERCENT OCCUPANCY, AND THEN I THINK THERE WAS A ASSUMED 5% VACANCY RATE, BUT SUBSTANTIALLY OCCUPIED TO YOUR POINT.

JUST AN IDEA TO PROTECT THEM.

MAYBE WE APPROVE IT, UM, WITH SOME PROTECTION OR SOME COVENANT, OR WE DON'T REQUIRE THAT THEY PAY OUR PRINCIPAL IF THEY CAN'T AFFORD TO PAY OUR PRINCIPAL, ESSENTIALLY.

SO I WILL SAY THAT WE STILL ALSO HAVE TO GET THIS TO CITY COUNCIL APPROVED BY CITY COUNCIL.

UM, AND THEY MAY HAVE OTHER THOUGHTS AS WELL.

SO, SO LIKE, YEAH, SURE.

THAT'S MY COMMENT.

THANK YOU, CHAIRMAN S THOUGHT THOSE WERE GREAT IDEAS.

UH, AND SOMETHING DEFINITELY, UH, TAKE AWAY AND, AND, AND, AND PUSH FORWARD AS IT, UM, RELATES TO, UH, MR. DAWKINS.

JUST, JUST ONE MORE THING, UH, AS WE CONTINUE TO THINK THROUGH THIS IS WE MAY WANT TO, UH, INCLUDE A PROVISION IF WE HAVEN'T THOUGHT THROUGH AND THOUGHT ABOUT THIS ALREADY, THAT THERE WOULD BE NO FURTHER ENCUMBRANCE, UH, IF WE'RE GOING TO SUBORDINATE, UH, YOU KNOW, TYPICALLY WHAT BORROWERS LIKE TO DO IS GO OUT AND GET ADDITIONAL DEBT, UH, TO THE EXTENT THAT THEY CAN'T MAKE THEIR, UH, OBLIGATION.

AND THEN THAT WOULD FURTHER, UM, HURT EVERYBODY DOWN THE CHAIN.

SO WE ALSO WANNA HAVE THAT PROVISION IN THERE THAT THERE'S NO FURTHER ENCUMBRANCE AND ALLOW THE PARTIES, UH, TO THE TRANSACTION AT THAT POINT, WORK IT OUT AMONG THEMSELVES.

THAT'S MY COMMENT.

THANKS.

I KNOW, I, I THINK THAT'S SOMETHING THAT OUR ATTORNEYS AND OUR COUNSEL WOULD BE HAPPY TO SEE ADDED.

ALRIGHT, THANK YOU MR. DAWKINS.

ANY OTHER QUESTIONS, COMMENTS, FEEDBACK, SUGGESTIONS ON THE LAW MODIFICATION REQUESTS? UH, AND OR I HAVE A COMMENT.

UH, IS THAT MS. SIMS OR CE? CE? NO, THIS SHANA.

THIS SHANAE.

OH, SHANAE.

HOUSES THAT THEY HAVE, THEY'RE, THEY'RE NOT SITTING, EVERYBODY LIVES IN EVERY SINGLE ONE OF THE HOUSES.

UM, FIRST OF ALL, I, I REALLY APPRECIATE ALL OF THE KNOWLEDGE, UM, ON THE BOARD, UM, WITH THE NUMBERS.

I'M NOT A NUMBERS PERSON, SO I REALLY APPRECIATE THAT.

UM, BUT AS A CHARACTER REFERENCE, , I HAVE TO JUST SPEAK ON, UM, LIVING HERE, UM, UNDER SOUTH FAIR CDC FOR THE LAST EIGHT YEARS, AND SEEING THEM, UH, REALLY TACKLE ON SOME DIFFICULTIES AS FAR AS BUILDING DURING COVID, UM, WAITED ON CITY MONEY THAT NEVER DURING THAT TIME.

AND THEY CONTINUED TO BUILD HOUSES, UM, WHEN THEY WERE PURCHASING LAND AND EVERYBODY SAID, OH, YOU SHOULDN'T DO, YOU KNOW, THEY'VE HAD A LOT OF OBSTACLES.

BUT WHAT I'VE SEEN IN THE EIGHT YEARS THAT I'VE LIVED UNDER, UH, SOUTHWEST, CDC, I'VE SEEN THEM GO FIND FUNDS.

I'VE SEEN THEM FIND DONORS.

RIGHT NOW, THEY HAVE A CAPITAL CAMPAIGN GOING ON.

UM, THERE'S A LOT OF THINGS THAT THEY DO BEHIND THE SCENES THAT THEY DO SHARE WITH US THAT I'VE JUST SEEN THEM COME OVERCOME A LOT OF OBSTACLES.

I'M NOT SAYING THAT THEY, THEY'VE GOT THIS RETAIL PIECE UN, YOU KNOW, UNLOCK.

I'M NOT SAYING THAT, BUT I REALLY HAVE SEEN THEM WORK REALLY, REALLY HARD TO RESTORE SOUTH DALLAS.

AND I THINK THAT, UM, I THINK THAT IT'S A GOOD IDEA TO DO IT JUST TO SUPPORT THEM.

I APPRECIATE THE NUMBERS, BUT JUST FROM WATCHING THEM OVERCOME SO MANY OBSTACLES AS EVERYBODY IN SOUTH DALLAS THAT WAS TRYING TO BUILD AND RAN TO COVID, UM, I'VE SEEN THEM OVERCOME A LOT.

AND SO I THINK IF, IF WE WERE TO DO IT, I THINK IT WOULD CERTAINLY BE WORTH IT.

AND THANK YOU FOR THIS.

I'LL, I'LL ALSO ADD, THEY DO HAVE SOME OTHER REVENUE STREAMS THAT ARE COMING IN BECAUSE OF SOME OF THEIR OTHER ENDEAVORS.

SO THEY WOULD HAVE THE ABILITY TO POTENTIALLY, I MEAN, IF THERE IS A SHORTFALL, IT'S NOT LIKE THIS IS THEIR ONLY SOURCE OF REVENUE FOR THE, IT'S NOT.

AND ALL OF THE

[00:35:01]

THEY BUILD EVERY SINGLE HOUSE.

NO, THERE'S NO VACANT, NOTHING OVER EVERYBODY IS IN A HOUSE.

THANK YOU FOR THOSE COMMENTS, MS. WISE.

AND, UH, HEATHER, THANK YOU FOR THE ADDITIONAL CONTEXT, UH, OF ADDITIONAL REVENUE SOURCES.

UM, I'M NOT SURE THAT THE BOARD WAS AWARE OF THAT, UH, THAT THEY HAD ADDITIONAL REVENUE SOURCES THAT COULD ALSO ASSIST IN THE PROJECT AS WELL.

UH, AND MAYBE THAT'S SOMETHING TO LOOK AT, UH, IN TERMS OF, UH, TYING BACK TO, UH, BEING ABLE TO, UH, COVER, UH, THE OBLIGATIONS TO THE LOAN FROM THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND.

UH, MAYBE, UH, HAVING SOME PROVISION, UH, TO TAP INTO SOME OF THOSE ADDITIONAL REVENUE SOURCES IF NEED BE, UH, IN, IN THIS, IN THE SCENARIO THAT IT HAPPENS.

UH, BUT IT SOUNDS LIKE, UH, TO, TO GO ON IT, THAT, UH, IN ORDER TO GET THIS, UH, PROJECT TO PENCIL PROPERLY, UH, THESE MODIFICATIONS, UH, THESE REQUESTED MODIFICATIONS ARE, UH, GOING TO BE NECESSARY TO GIVE, UH, MALCOLM'S POINT A CHANCE TO GET THEMSELVES, UH, IN A POSITION TO RAMP UP TO GET THEIR REVENUE UP, WHICH WE SEE LOTS OF TIMES IN COMMERCIAL REAL ESTATE PROJECTS, UH, ESPECIALLY WHEN YOU HAVE, YOU KNOW, A SCENARIO WHERE YOU GOT THIS PROJECT THAT'S BEEN IN A HISTORICALLY DISINVESTED PART OF TOWN.

UH, YOU KNOW, SOMETIMES YOU NEED, YOU KNOW, THE ADDITIONAL WIND AT YOUR BACK.

SOMETIMES YOU JUST NEED TO SEE THE BALL GO THROUGH THE BASKET, SO TO SPEAK.

RIGHT? AND SO ANY OPPORTUNITY, UH, THAT CAN BE PROVIDED IN TERMS OF FLEXIBILITY, UH, ESPECIALLY IN THIS ENVIRONMENT, UH, THIS LENDING ENVIRONMENT, UH, PARTICULARLY, UH, TO GIVE A BETTER OPPORTUNITY FOR A PROJECT LIKE THIS TO SUCCEED, IF WE HAVE THE ABILITY TO DO THAT AND, UH, UH, IN PARALLEL PROTECT OURSELVES AND OUR OWN INVESTMENT, UH, I THINK THAT'S, UH, SOMETHING WORTH CONSIDERATION.

SO, UH, ARE THERE ANY OTHER QUESTIONS, UH, COMMENTS OR FEEDBACK OR SUGGESTIONS REGARDING, UH, THE LOAN REQUEST FOR MALCOLM'S POINT, UH, OR THE MECHANICS OR, UH, ANY OTHER FEEDBACK, UH, CHARACTER REFERENCES? ANY OTHER COMMENTS THAT ANYBODY WOULD LIKE TO PROVIDE BEFORE WE, UH, MOVE TO A VOTE? I JUST HAD A QUICK QUESTION, UM, JUST ABOUT THE LEASING AT MALCOLM'S POINT.

I KNOW THAT SHIPLEY'S DONUTS IS GONNA BE MOVING IN, UM, BUT WERE THERE ANY OTHER BUSINESSES THAT HAD INQUIRED OR STARTED WORKING OUT LIKE A LEASING CONTRACT FOR, UM, ANY OF THE SPACES AND LIKE HOW MUCH IS KIND OF, WOULD BE THE AVERAGE RENT THERE FOR A BUSINESS? YEAH, I DON'T KNOW IF WE HAVE THOSE NUMBERS.

SHIPLEYS DOES, UM, THEY HAVE A MARKET RATE LEASE THERE, AND THEN SOUTH FAIR ALSO IS LEASING SPACE.

UM, AND SO BETWEEN THE TWO OF THEM, THEY'RE TAKING ABOUT 3000 SQUARE FEET.

AND SO THERE IS ABOUT 1800 SQUARE FEET LEFT OVER.

UM, AND THE, THE NET RENT, THE TRIPLE NET RENT THAT SHE'S PROJECTING IS $36 A SQUARE FOOT FOR THAT.

AND SO SHE SAID AF UM, SHE SAID AFTER THE GRAND OPENING, THEY HAD A LOT OF REALLY GOOD FEEDBACK AND A LOT OF INTEREST, AND LIKE A LOT OF PEOPLE HAVE REACHED OUT, WHICH IS WHY SHE'S OPTIMISTIC THERE WOULD BE AN LOI, UM, EXECUTED BY THE FIR, NOT JANUARY ONE, BUT LIKE THE FIRST QUARTER OF NEXT YEAR.

THAT'S AWESOME.

SO, BUT SOUTH FAIR, LIKE LEASING A SPACE THERE, I GUESS IS LIKE AN EXPENSE FOR THEM TECHNICALLY.

SO THEY NEED OFFICE SPACE ANYWAY, RIGHT? AND SO THEY, THEY ARE PAYING THEMSELVES RENT, UM, AND IT IS LIGHT, IT IS BELOW WHAT THEY'RE PAYING SHIPLEYS, BUT IT'S NOT A KITCHEN.

I MEAN, IT'S, IT'S JUST AN OFFICE.

SO THEY ARE PAYING THEMSELVES RENT RATHER THAN PAYING SOMEBODY ELSE RENT.

AND, AND THIS IS JUST MORE SO THROWING OUT FOR CONSIDERATION, I ALSO THINK IT'S, IT'S SMART TO, UH, IF WE DECIDE TO MOVE FORWARD, TO PUT SOME SORT OF, UH, PROVISION IN PLACE THAT, YOU KNOW, GIVES US SOME SORT OF PROTECTION AS, UH, MR. SIGN'S REFERENCE.

THANK YOU, MR. CARION.

UH, CHAIRMAN ENRIQUEZ? YEP.

UM, I JUST WANNA SAY THANKS FOR ALL THE DIALOGUE, WHETHER IT WAS, UM, MS. WISE'S INPUT OR MR. S'S INPUT.

UM, ULTIMATELY I THINK IT, JUST TO KIND OF ADD SOME ANECDOTAL, UH, PERSPECTIVE, UH, I AGREE, UH, WITH MR. CHAIR'S POSITION ON, YOU KNOW, SEIZING AN OPPORTUNITY TO, UH, TO MAKE A POSITIVE IMPACT, UM, TO HELP PUSH THROUGH THE FINISH LINE.

UM, I ALSO, UM,

[00:40:01]

UM, JUST IN THE EVENT THAT THERE IS A, UH, UH, THAT THINGS DON'T GO ACCORDING TO PLAN SIMPLY BECAUSE WE ARE MOVING INTO, WE'RE MOVING OUT OF THE SENIOR POSITION, UM, ON THE LOAN.

I THINK THAT IS A SMART THING FOR US TO DO.

THANK YOU FOR THOSE COMMENTS.

UH, CHAIRMAN ENRIQUEZ, ARE THERE ANY OTHER QUESTIONS, COMMENTS, FEEDBACK, SUGGESTIONS? OKAY, HEARING NONE.

SO I'M GONNA RESTATE, UM, THE REQUEST ONE LAST TIME AND JUST ONE, JUST ONE, ONE QUICK POINT BEFORE THAT.

UH, I WAS FORTUNATE ENOUGH TO BE ABLE TO PARTICIPATE IN THE RIBBON CUTTING CEREMONY A COUPLE OF WEEKS AGO ON BEHALF OF THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND.

UM, AND IT WAS A PROUD MOMENT FOR, FOR THE COMMUNITY, FOR ANYBODY WHO HAD AN OPPORTUNITY TO PARTICIPATE.

I KNOW MS. WISE, I SAW YOU, UH, THERE AND, UH, YOU KNOW, MAYBE YOU COULD SPEAK TO THAT A LITTLE BIT MORE.

BUT, UH, YOU KNOW, THERE, THERE SEEMS TO BE, UH, A BUZZ AND AN EXCITEMENT ABOUT THIS PROJECT, UH, THAT YOU DON'T TYPICALLY SEE THERE IN SOUTH DALLAS.

AND, UH, I THINK THEY HAVE A LOT OF TAILWINDS AT THEIR BACK WITH A PROJECT LIKE THIS AND A LOT OF, UH, EXCITEMENT.

AND, UH, THIS COULD POTENTIALLY, UH, BE THE, THE, THE FIRST, A DOMINO TO DROP IN A NUMBER OF DIFFERENT PROJECTS TO AT LEAST GET PEOPLE TO TURN THEIR HEADS AND TURN THEIR ATTENTION TOWARD INVESTMENT, UH, IN THESE TYPES OF PROJECTS AND OTHER PROJECTS, UH, IN THE AREA, PARTICULARLY WITH THE, THE NEW, UH, SOUTH DALLAS AREA PLAN THAT MY UNDERSTANDING WAS JUST APPROVED HERE RECENTLY AND SOME OF THE OTHER THINGS THAT ARE GOING ON.

SO, UH, I, I JUST WANTED TO TO POINT THAT OUT REALLY QUICKLY, BUT, UH, JUST TO RESTATE THE ASK ONE LAST TIME, UM, THE REQUEST IS TO SUBORDINATE THE, UH, SOUTH DALLAS FAIR PARK OPPORTUNITY FUND FUND LOAN TO THE TEXAS MEZZANINE FUND LOAN.

UH, PRIMARILY BECAUSE AT THE TIME OF APPROVAL, UH, WE WERE, UH, WE APPROVED JUST UNDER $1.2 MILLION AT THE SAME TIME.

AT, AT THAT TIME, THE, UH, TMF FUND, UH, PROVIDED 675,000 DUE TO COST CHANGES AND THE LIKE, THAT HAS NOW FLIPPED, AND THOSE COSTS HAVE DOUBLED.

SO NOW, UH, TEXAS MEZZANINE FUND IS NOW PUTTING IN THE MAJORITY OF THE, THE CAPITAL, UH, THE, THE DEBT CAPITAL IN ORDER TO GET THIS PROJECT GOING.

SO PER THAT, THEY'RE REQUESTING TO BE IN THE SENIOR POSITION AND THEN SUBORDINATE AND ASKING US TO SUBORDINATE OUR POSITION TO THEM FOR THAT REASON.

UH, IN ORDER TO HELP WITH THE PROJECT, BECAUSE OF THE INCREASED COSTS, UH, WE ARE PROPOSING TO DO AN INTEREST ONLY LOAN OR, OR DUE INTEREST ONLY FOR YEAR, WHICH REDUCES THE AMOUNT, UH, THAT THEY HAVE TO PAY EACH MONTH, UH, AND THEN SIMULTANEOUSLY EXTEND THE AMORTIZATION PERIOD FROM 25 YEARS TO 30 YEARS, UH, WHICH LOWERS, UH, THEIR, UH, PAYMENTS, UH, IN THE SHORT TERM AS WELL DUE TO THE ADDITIONAL AMORTIZATION, UH, ON THE BACK, THE 10 YEAR BALLOON STILL REMAINS IN PLACE.

SO THE PROJECT WILL STILL NEED TO BE SUCCESSFUL.

WHAT WAS DISCUSSED HERE TODAY WAS ADDING PROVISIONS, UH, TO PROTECT OURSELVES BEING IN THE SUBORDINATE POSITION, UH, WHETHER IT BE THROUGH COLLATERAL, WHETHER IT BE THROUGH OTHER PROVISIONS, WHETHER IT BE, TAP INTO SOME OF THEIR OTHER SOURCES OF INCOME THAT THEY HAVE AVAILABLE TO THEM TO MAKE SURE THAT OUR POSITION IS PROTECTED, UH, IN EXCHANGE, UH, FOR, UH, THE APPROVAL OF THIS REQUEST, UH, REQUESTED MODIFICATION.

SO, ANY OTHER QUESTIONS ABOUT THAT? UM, ANYTHING ANYONE STILL FUZZY ON BEFORE WE TAKE A VOTE? ALL RIGHT, I'M HEARING NONE.

UH, SO, UH, IS THERE A MOTION, UH, ON, UH, THE MALCOLM'S POINT LOAN MODIFICATION REQUEST PER THE TERM OUTLINE? UM, THE JUAN SIGNS HERE, CHAIRMAN SIGNS, UM, I'D LIKE TO MAKE A MOTION TO APPROVE.

UM, I THINK I'LL GIVE YOU THE, MY SORT OF TOP THREE REASONS, AND THEN AN IDEA OR TWO IF COUNCIL COMES BACK AND PUSHES BACK.

UM, I THINK THE, THE COST OF THE PROJECT WENT UP SIGNIFICANTLY AND OUR LOAN INVESTMENT HASN'T GONE UP, WHICH MEANS OUR LOAN TO COST HAS IMPROVED.

IDEALLY, THE MOST LIKELY THE VALUATION OF THE PROPERTY HAS ALSO INCREASED WITH THE ADDITIONAL COST INCREASES.

SO WE'RE ACTUALLY IN A BETTER COLLATERAL POSITION THAN WE WERE IN.

UM, I THINK IF, IF WE CAN STRUCTURE, IF THERE NEEDS TO BE SOME STRUCTURE TO PROTECT US, I WOULD RECOMMEND MAYBE A CERTAIN PERCENTAGE OF THE NET SALE PROCEEDS OF ADDITIONAL COLLATERAL BE HELD IN RESERVE, UM, OR A COVENANT TO PROTECT THEM

[00:45:01]

FROM GOING BELOW 1.0, THAT SERVICE COVERAGE RATIO.

UM, BUT I THINK TEXAS MEZZANINE SORT OF STEPPED UP, ADDED MORE MONEY TO THIS DEAL TO GET IT FINISHED.

IT MAKES SENSE THAT THEY WANNA BE THE SENIOR ON THIS.

UM, AND THE, THE PROPERTY SEEMS TO STILL HAVE ENOUGH EQUITY IN IT TO COVER US IN THE EVENT OF DEFAULT.

UM, SO I, I WOULD MOTION TO APPROVE.

ALRIGHT, SO MOVED BY CHAIRMAN SONZ THERE.

SECOND, SECOND, SECOND BY CHAIRMAN ENRIQUEZ.

ALL IN FAVOR? AYE.

AYE.

ANY OPPOSED? ANY OPPOSED? HEARING NONE.

UH, THIS ITEM IS APPROVED, UH, LOAN MODIFICATION, UH, APPROVED.

SO THANK YOU VERY MUCH EVERYBODY FOR YOUR FEEDBACK, YOUR SUGGESTIONS, YOUR COMMENTS, UH, YOUR THOUGHTFULNESS.

UM, AND, YOU KNOW, THESE ARE THE EXACT TYPE OF CONVERSATIONS THAT WE WANNA HAVE AND THE TYPES OF PROJECTS THAT WE DO THIS WORK TO SEE.

SO I WANNA THANK EVERYBODY, UH, ON THE BOARD FOR THEIR INPUT, THEIR CONTRIBUTIONS, THEIR WORK, THEIR THOUGHTFULNESS, UH, WITH DIVING IN, PAYING ATTENTION TO THE NUMBERS, PAYING ATTENTION TO WHAT'S GOING ON, PAYING ATTENTION TO THE RISK, UH, WHILE ALSO RECOGNIZING THE NEED TO MOVE PROJECTS FORWARD, UH, TO MAKE PROGRESS IN SOUTH DALLAS FAIR PARK OPPORTUNITY AREA, WHICH IS THE REASON WHY WE'RE HERE.

SO, UH, THANK YOU VERY MUCH EVERYBODY FOR THAT.

UM, WE WILL NOW MOVE ON TO THE LAST AGENDA ITEM, WHICH IS, UH, ADJOURNMENT.

SO IF THERE IS NO NEW BUSINESS, UH, NO NEW QUESTIONS, COMMENTS, FEEDBACK.

JUST TO RECAP WHAT WE'RE GOING FROM HERE, WE HAVE, UH, POSTPONED THE BOARD TOUR THAT WE HAD, UH, COMING UP THIS FRIDAY.

WE WILL PUSH OUT, UH, CHAIRMAN ENRIQUEZ WILL, AND HIS, UH, TEAM WILL WORK TO PUSH OUT A NEW DATE FOR APPROVAL WHERE WE CAN HAVE MAXIMUM PARTICIPATION ON THAT.

WE HAVE AN UPCOMING INFORMATIONAL SESSION, NOFA INFORMATIONAL SESSION, UH, COMING UP NEXT MONTH, AS WELL AS ONE FINAL ONE THAT WILL BE VIRTUAL, UH, THAT, UH, WE'RE ENCOURAGING EVERYBODY TO, TO, UH, UH, ATTEND AND, OR TELL AS MANY PEOPLE AS POSSIBLE.

UH, I KNOW, UH, DELIVERABLES FROM HEATHER.

SHE'S GONNA PUSH OUT A FLYER SO THAT WE CAN, UH, DISTRIBUTE THAT TO FOLKS THAT MAY BE INTERESTED.

UM, AND I BELIEVE THAT THAT, UH, COVERS, UH, WHAT, UH, OUR BUSINESS WAS FOR THIS EVENING.

SO THERE ARE NO QUESTIONS, COMMENTS, FEEDBACKS, UH, FURTHER FEEDBACK WE WILL INTERVIEW.

I HAD A COMMENT.

HELLO, JAMES, IS THAT YOU, MS. WISE? REAL QUICK.

AND MY, I THINK MY, I THINK MY INTERNET IS TRIPPING, SO I APOLOGIZE, BUT I ACTUALLY JUST WANTED TO PUBLICLY THANK YOU FOR COMING TO POINT SOUTH EVERYTHING, UM, ABOUT, UH, SOUTHWEST, CDC AND SOUTH DALLAS.

UH, MEANT THE MOST, I WAS SO SHOCKED TO SEE THERE.

UM, AND, UM, THAT'S WHY THAT DAY WE ACTUALLY GOT TO SEE SOFTWARE CDCS THEIR FULL MISSION AND VISION FOR THE .

AND THAT IS JUST ONE PIECE.

UM, IT'S JUST THE, THE OF THE HOUSING.

SO, UM, SO I JUST APPRECIATE PUSHING THAT THROUGH.

IT'S GONNA PUT SOUTH DALLAS IN A, IN SUCH A BETTER PLACE, SUCH A BETTER PLACE.

THANKS FOR COMING.