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CALL THE OAK CLIFF GATEWAY TIF
[1. Call to order and introduction of meeting participants. ]
BOARD MEETING TO ORDER ON NOVEMBER 9TH, 2026 AT 3:10 PM.AND I'LL GO AHEAD AND TURN THE MEETING OVER TO OUR CHAIR.
HEY, HOW, HOW'S EVERYBODY DOING? GREAT.
WELL, THANK YOU ALL FOR BEING HERE.
[3. Action Item: Review and consider the Meeting Record of the January 6, 2026 Oak Cliff Gateway TIF District Board Meeting. ]
UM, A REVIEW, UH, OF THE, THE PROJECT, UH, FOR BEING - LET' START WITH THE MINUTES.OH, WHERE ARE WE AT? APPROVAL OF THE MINUTES.
DO I HAVE A COPY? OH, IT'S RIGHT THERE.
IF I CAN, UH, GET A MOTION FOR APPROVAL OF THE MINUTES FROM THE JANUARY 6TH.
ALL IN FAVOR? IS THERE A SECOND? SECOND.
ANY OPPOSED? I WILL ABSTAIN BECAUSE I WAS NOT THERE.
UH, ITEM NUMBER TWO, UH, IS REVIEW AND CONSIDERATION OF A TIF DEVELOPMENT AND, UH, CHAPTER 380 AGREEMENT WITH SOUTHERN GATEWAY PUBLIC GREEN FOUNDATION AND A TOTAL AMOUNT NOT TO SEE - OH, YOU'RE READING THE MINUTES.
[4. Action Item: Review and consider a tax increment financing (“TIF”) development agreement with BMH Oak Cliff, LLC and/or its affiliates (“Developer”) in an amount not to exceed $29,000,000, payable from current and future Oak Cliff Gateway TIF District funds, in consideration of the North Oak Cliff Mixed-Use and Mixed-Income Development Project ("Project") to be located on approximately 2.9 acres at the southeast corner of Jefferson Boulevard and N. Ewing Avenue. ]
UH, THE TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT WITH BMH OAKLIFF, LLC AND ITS AFFILIATES IN AN AMOUNT NOT TO EXCEED 29 MIL- MILLION PAYABLE FROM THE CURRENT AND FUTURE OAK CLIFF GATEWAY TIF DISTRICT FUNDS.UM, FOR A PROJECT TO BE LOCATED ON APPROXIMATELY 2.9 ACRES AT THE SOUTHEAST CORNER OF THE JEFFERSON BOULEVARD AND NORTH EWING AVENUE.
WE'RE TRYING TO GET THE POWERPOINT UP.
I DON'T KNOW WHY IT'S ACTING UP.
BUT WHILE WE WAIT FOR THE POWERPOINT TO COME UP, WE CAN GO AND MAYBE GO AHEAD AND HAVE THE DEVELOPMENT TEAM INTRODUCE THEMSELVES.
SO, UM, SO AS FAR AS TALKING, I'M SURE WE'RE TALKING TODAY, SO IF I DO GET STUCK, GIVE ME A SECOND.
UH, BECAUSE, UH, SOMETHING GOOD.
AND AS TYLER LIKES TO TELL YOU, HE WAS QUARTERBACK AND HE HAD AN EXCELLENT ART COUNT.
ALL RIGHT, IT'S FULL SCREEN ON OUR END.
CAN I DO THIS AND STILL MOVE THE THING? OKAY.
CAN EVERYBODY ONLINE SEE THE SCREEN? YES, I CAN SEE IT.
SO I'LL GO AHEAD AND GO THROUGH OUR, UM, OUR PRESENTATION AND THEN, UM, LET THE DEVELOPMENT TEAM MAKE SOME GENERAL REMARKS AND THEN OPEN IT UP TO QUESTIONS.
SO, UM, TODAY'S PRESENTATION, JUST THE OVERVIEW IS WE'LL GO INTO SOME BACKGROUND, TALK ABOUT THE PROPOSED PROJECT, OUR STAFF RECOMMENDATION, AND, UM, RECOMMENDED NEXT STEPS.
SO, UM, MOST OF YOU THAT HAVE BEEN ON THE BOARD FOR A WHILE KNOW THAT THE OAK CLIFF GATEWAY TIP DISTRICT WAS ORIGINALLY CREATED IN 1992.
IT WAS SUBSTANTIALLY AMENDED, UM, A FEW TIMES.
WE'VE GOT THREE SUB-DISTRICTS, OAK CLIFF GATEWAY, WHICH IS THE ORIGINAL AREA, UH, THE BISHOP JEFFERSON AND THE CLARENDON BECKLEY KEYS, WHICH IS THE NEWEST SUB-DISTRICT.
ALTOGETHER, THE, UM, DISTRICT HAS SEEN OVER 1.5 BILLION IN NEW TAXABLE VALUE OVER ITS BASE HERE.
UM, THIS PROJECT IS LOCATED AT THE, UM, SOUTHEAST CORNER OF JEFFERSON BULLETIN, BOULEVARD AND EWING AVENUE.
UM, THE PROPERTY, UM, COLLECTIVELY IS ON THE TAX ROLL FOR A LITTLE OVER FOUR MILLION CURRENTLY.
UM, WE'VE ESTIMATED THAT THE PROPOSED PROJECT AT COMPLETION WILL HAVE A TAXABLE VALUE SOMEWHERE AROUND 60 MILLION BASED ON SOME
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COMPARABLES.IT'S IN COUNCIL DISTRICT FOUR.
IT'S IN THE BISHOP JEFFERSON SUBDISTRICT OF OAK CLIFF GATEWAY.
UM, HERE'S, UM, SOME PHOTOS OF EXISTING CONDITIONS.
IT'S AN ASSEMBLAGE OF SIX PARCELS, UM, AND AN ABANDONED ALLEY.
UH, CURRENTLY THERE'S STORAGE WAREHOUSE STRUCTURES THAT HAVE REACHED THE END OF THEIR USEFUL LIFE.
THE PROPERTY WAS ACQUIRED BETWEEN 2019 AND 2022.
UM, SO JUST KIND OF GOING THROUGH THE PROJECT SUMMARY.
SO THE PROJECT DEVELOPER IS BMH OAK CLIFF, LLC, UM, AND THEY ARE LOOKING TO DESIGN, FUND, AND CONSTRUCT WHAT WE'RE CALLING THE NORTH OAK CLIFF MIXED USE AND MIXED INCOME DEVELOPMENT PROJECT.
UM, THE PROPOSED SCOPE WOULD INCLUDE, UM, A FIVE-STORY MIXED USE MIXED INCOME DEVELOPMENT WITH APPROXIMATELY 265 UNITS, UM, AND ABOUT 11,643 SQUARE FEET OF LEASEABLE GROUND FLOOR RETAIL NON-RESIDENTIAL SPACE.
UM, STREETSCAPE IMPROVEMENTS ALONG WITH, UM, OTHER AMENITIES SUCH AS A DOG PLAY AREA ARE PROPOSED.
TOTAL PROJECT COST IS A LITTLE OVER 92 BIL - MILLION.
UM, HERE'S THE SITE PLAN OF THE, UM, THE SITE THERE YOU CAN SEE.
UM, AND THEN, UM, PROJECT RENDERINGS.
UM, YOU CAN SEE THE, UM, YOU KNOW, THE, THE FULL, UM, ILLUSTRATED VISION FOR THE PROJECT.
AND IT'S, UM, A WALKING DISTANCE TO THE, UM, THE NEW HALPERN PARK, UH, DECK PARK.
UM, THE OTHER PART OF THE PROJECT IS PROPOSED IS TO DO SOME OFFSITE PUBLIC IN- INFRASTRUCTURE IMPROVEMENTS, WATER, WASTEWATER, STORM WATER.
UM, THE ESTIMATED COST OF THOSE OFFSITE IMPROVEMENTS ARE ABOUT ONE AND A HALF TO TWO MILLION.
UM, THE WASTEWATER IMPROVEMENTS WILL HAVE THE BENEFIT OF ADDING CAPACITY TO AN ENTIRE SEWER SHED, WHICH IS ABOUT 11 ACRES OF PROPERTY IN THE SURROUNDING AREA.
UM, THE PROJECT WENT THROUGH THE, UM, URBAN DESIGN PEER REVIEW PANEL IN MARCH OF 2025.
THERE ARE A NUMBER OF, UM, REM - RECOMMENDATIONS.
HOPEFULLY YOU'VE HAD A CHANCE TO GO THROUGH THOSE, UM, IN ADVANCE.
SO, UM, THERE WERE SEVERAL ROUNDS OF, UM, RESPONSE AND COMMENTS FROM THE DEVELOPER, UM, AND THEN THERE WAS A SUBSTANTIAL UPDATE ON THE DESIGN, UM, THAT WAS PRESENTED IN AUGUST OF 2026.
SO THEY HAVE SATISFIED THE STAFF AND PANEL RECOMMENDATIONS FOR THE PROJECT.
YOU, YOU'RE SAYING, UH, THE- THESE HAVE BEEN SATISFIED? YES, THE URBAN DESIGN COMMENTS.
SO, UM, HERE WE HAVE, UM, SOURCES AND USES.
UM, THESE ARE PERMANENT SOURCES, UM, THE PERMANENT LOAN, DEVELOPER EQUITY, AND THE TIF SUBSIDY.
SO THE DEVELOPER OR THE, UM, TIF SUBSIDY'S ABOUT 31%, WHICH IS, UM, RELATIVELY COMMON FOR A PROJECT LIKE THIS IN, IN OUR TIF DISTRICTS, UM, THESE DAYS WITH, UM, WITH A, A MEDIUM DENSITY AFFORDABLE HOUSING, THE KIND OF AMENITIES THAT WE'VE, WE'VE GOT PLANNED FOR THE PROJECT.
UM, THERE'S A, A TABLE WITH THE PROPOSED USES.
UH, THE DEVELOPER FEE IS BELOW OUR, IS BELOW AVERAGE.
UM, THE COSTS HAVE ALL BEEN, UM, REVIEWED BY OUR OUTSIDE UNDERWRITER AND DEEMED TO BE, UM, APPROPRIATE.
SO THE STAFF RECOMMENDATION, UM, WE HAD A LETTER OF INTENT SIGNED WITH THE DEVELOPER OC- OCTOBER 19TH.
UM, BASED ON THE STAFF RECOMMENDATION OF 29 MILLION, WE HAVE AN APPROXIMATE BUDGET BREAKDOWN THAT INCLUDES ENVIRONMENTAL REMEDIATION, DEMOLITION, PUBLIC INFRASTRUCTURE IMPROVEMENTS, AND AN ECONOMIC DEVELOPMENT GRANT TO MAKE THE PROJECT FEASIBLE.
UM, WE'RE PROPOSING THAT THE TIF SUBSIDY WOULD BE PAID IN ABOUT TWO PAYMENTS.
THE FIRST INSTALLMENT WOULD BE TWO MILLION FOR OFFSITE INFRASTRUCTURE, AND THAT WOULD BE BASED ON ACTUAL COSTS, UM, AT THE TIME THAT THOSE, UM, IMPROVEMENTS ARE COMPLETED AND ACCEPTED BY THE CITY.
AND THEN FUTURE INSTALLMENTS WOULD BE THE BALANCE, UM, UP TO, TO 27 MILLION, UM, BASED ON, YOU KNOW, SUBSTANTIAL COMPLETION, VERIFICATION OF INFORMATION, UM, COMPLIANCE WITH ALL OTHER TERMS OF THE AGREEMENT.
UM, SOME OTHER CONDITIONS, UM, FAIRLY COMMON.
WE WANT TO MAKE SURE THAT THE DEVELOPER HAS ALL OF THEIR FINANCING IN PLACE BEFORE THE, WE EXECUTE THE AGREEMENT.
UM, REQUIRED PROJECT COMPONENTS FOR AT LEAST 250 NEW MULTIFAMILY
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UNITS, AT LEAST 10,000 SQUARE FEET OF RENTABLE GROUND FLOOR SPACE AND SITE IMPROVEMENTS, PUBLIC AND PRIVATE NECESSARY TO DELIVER THE PROJECT, INCLUDING A MINIMUM OF 150 STRUCTURED, UM, PARKING SPACES.MINIMUM INVESTMENT, UM, WE'RE ACQUIRING 60 MILLION.
UM, THAT DOES NOT INCLUDE LAND ACQUISITION BECAUSE THE PROPERTY WAS PURCHASED, UM, A FEW YEARS AGO, SO IT REQUIRES, UM, A LOT OF OUR TYPICAL TANGIBLE THINGS LIKE SITE WORK, HARD CONSTRUCTION COSTS, AND PROFESSIONAL FEES SUCH AS ARCHITECTURE AND ENGINEERING, UM, FOR THAT TO BE INVESTED BY DECEMBER 31ST, 2030.
BUILDING PERMIT DEADLINE WOULD BE DECEMBER 2027.
UM, AGAIN, SUBSTANTIAL COMPLETION, UM, BY DECEMBER 31ST, 2030.
UM, SHOULD WE NEED TO HAVE PUBLIC ACCESS TO ANY, UM, INFRASTRUCTURE NOT OWNED BY THE CITY, WE WOULD ASK FOR AN EASEMENT OR SOME TYPE OF, UM, INSTRUMENT.
UM, AGAIN, WE TALKED ABOUT THE DESIGN REVIEW THAT'S BEEN SATISFIED.
WE JUST NEED TO MAKE SURE THAT THEIR FINAL PERMIT DRAWINGS CONFORM WITH THE APPROVED DESIGNS.
AFFORDABILITY COMPONENT, WE WOULD REQUIRE THAT 20% OF THE TOTAL, UM, UNITS ARE AFFORDABLE TO 80% AREA MEDIUM FAMILY INCOME, AND THEY WILL BE DE-RESTRICTED FOR 15 YEARS.
IS, IS THE 15 YEARS, UH, COMMON? YES.
THAT'S OUR STANDARD DE RESTRICTION, YES.
AND THEN, UM, BY CITY ORDINANCE, ALL PROJECTS RECEIVING ANY KIND OF SUBSIDY FROM THE CITY ALSO HAVE TO MAKE A GOOD FAITH EFFORT WHEN IT COMES TO VOUCHERS, UM, YOU KNOW, ALLOWING AT LEAST 10% OF UNITS TO BE AVAILABLE FOR VOUCHER HOLDERS SHOULD THERE BE FOLKS COMING WITH VOUCHERS.
UM, WE'RE AS - ALSO ASKING FOR, UM, A MINIMUM, MINIMUM OF 40%, UM, OF THE GROUND FLOOR SPACE TO BE OCCUPIED, UM, PROPERTY MANAGEMENT REVIEW, UM, SMALL BUSINESS INCLUSION.
THIS REPLACED THE CITY'S PREVIOUS MINORITY WOMEN-OWNED BUSINESS PROGRAM BECAUSE OF FEDERAL DIRECTIVES.
IT'S FOCUSED NOW TO BE ON SMALL BUSINESSES, SO THE GOAL IS 33% PARTICIPATION FOR CERTIFIED SMALL BUSINESS ENTERPRISES.
AND SO THE DEVELOPER WILL WORK WITH OUR OFFICE OF PROCUREMENT SERVICES TO IDENTIFY POTENTIAL VENDORS AND, UM, PROVIDE OPPORTUNITIES OR AT LEAST, UM, GIVE THEM AN OPPORTUNITY TO BID ON THOSE, THOSE, UH, SCOPES OF WORK.
QUARTERLY REPORTING, OPERATING AND MAINT- MAINTENANCE AGREEMENT FOR NON-STANDARD IMPROVEMENTS.
UM, THIS IS A COMMON REQUIREMENT.
UH, LOCAL HIRING, AGAIN, FOR ANY JOBS CREATED BY THE PROJECT.
WE WOULD WANT A, UM, A LOCAL HIRING PLAN.
MINOR MODIFICATIONS, UM, THIS IS FAIRLY STANDARD, YOU KNOW, IF THEY DO NEED A DEADLINE EXTENSION, UM, IT, WITH CONCURRENCE FROM THE TIF BOARD OR MINOR MODIFICATIONS, UM, TO THE PROJECT WOULD COME BEFORE THE BOARD, AND IF THE BOARD RECOMMENDS THOSE MODIFICATIONS, THEN THE DIRECTOR WOULD, UM, APPROVE THOSE.
UM, A POST-CONSTRUCTION AUDIT AND POSSIBLE REDUCTION OF TIF SUBSIDIES.
SO IF THEIR ACTUAL COSTS FALL BELOW 82.6 MILLION, UM, WE COULD LOOK AT, UM, DEDUCTING OUR TIF SUBSIDY BY, UM, A COMMENSURATE 24,000 FOR EVERY $100, UM, OR 100,000 BELOW THAT.
SO THIS IS SOMETHING THAT WE STARTED DOING A FEW YEARS AGO WITH PROJECTS AS A WAY TO, UM, YOU KNOW, A LOT OF TIMES DEVELOPERS HAVE TO WORK WITH THE BUDGET, BUT THEN IF THEIR COSTS ARE ACTUALLY LESS, WE WANNA MAKE SURE THAT WE'RE NOT OVERPAYING THE SUBSIDY.
SO THIS IS A PROVISION THAT ALLOWS US TO TAKE, YOU KNOW, A REVIEW OF THE ACTUAL COST ONCE THE PROJECT'S BUILT.
UM, MINIMUM, UM, ONGOING MINIMUM OCCUPANCY REQUIREMENTS.
SO WE WANNA SEE THAT FOR AT LEAST A FIVE-YEAR PERIOD THAT THE GROUND FLOOR SPACE, UM, CONTINUES TO HAVE THAT MINIMUM 40% OCCUPANCY, SO WE HAVE ACTIVE GROUND FLOOR SPACES.
UM, ASSIGNMENT UNTIL THE PROJECT'S COMPLETE, UM, WE WON'T ALLOW AN ASSIGNMENT TO, UM, ANYTHING BUT A DIRECT AFFILIATE OF THE PROJECT.
UM, ANY PROCEEDS CAN BE ASSIGNED TO A LENDER.
UM, SO THAT'S A FAIRLY STANDARD, UM, PROVISION.
FORCE MAJEURE, AGAIN, THIS IS A STANDARD PROVISION.
UM, DEFAULT AND RECAPTURE, AGAIN, IF THERE'S A UNCURED DEFAULT, WE HAVE THE ABILITY TO POTENTIALLY, UM, RECAPTURE FUNDS.
UM, SO OUR RECO - IF THE BOARD IS FAVORABLE TODAY, WE WOULD LOOK AT GOING TO, UM, THE COUNCIL'S ECONOMIC DEVELOPMENT COMMITTEE DECEMBER 1ST AND THEN COUNCIL
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DECEMBER 9TH.JUST KIND OF QUICKLY GO THROUGH THE APPENDIX, WHICH HAS THE, UM, THE DEVELOPMENT TEAM, UM, PROJECT TEAM THERE.
UH, WE'VE GOT PROJECT UNDERWRITING.
AGAIN, WE HAD AN OUTSIDE UNDERWRITER REVIEW THE PROJECT.
THE DEVELOPER INITIALLY ASKED FOR 39 MILLION.
WE WENT THROUGH A RIGOROUS PROCESS WITH OUR OUTSIDE UNDERWRITER AND HAVE RECOMMENDED A SUBSIDY OF 29 MILLION.
UM, THEY'VE ASSESSED, UM, ALL ASPECTS OF, ALL ASPECTS OF THE PROJECT, THAT THE DEVELOPMENT TEAM IS, UM, QUALIFIED, UM, THAT THERE'S ADEQUATE DEBT AND FINANCING INFORMATION, UM, COST REASONABLENESS, AND THAT THE PROPOSED SUBSIDY DOES NOT, UM, UNDULY ENRICH THE DEVELOPER.
UM, HERE'S A TIF BUDGET CHART, SO YOU'LL SEE THAT, UM, IF THIS PROJECT WERE APPROVED, THAT THERE WOULD STILL BE CAPACITY, BUDGET CAPACITY IN THE BISHOP JEFFERSON SUB-DISTRICT OF ABOUT 18 MILLION.
UM, OTHER SUB-DISTRICTS OF THE TIF HAVE THEIR OWN BUDGETS, AND SO THERE'S STILL A LOT OF BUDGET CAPACITY OVERALL TO DO PROJECTS IN THE TIP DISTRICT.
UM, WE'LL FOLLOW OUR INCREMENT ALLOCATION POLICY.
THAT'S PRETTY STRAIGHTFORWARD, UM, CONDITION.
AND BASED ON OUR CURRENT ESTIMATES, WE WOULD ANTICIPATE, UM, THAT THIS PROJECT UPON COMPLETION WOULD BE PAID OVER SEVERAL YEARS, UM, WITH THE FULL PAYOFF 2030.
THAT'S KIND OF OUR CURRENT ESTIMATE.
DO, DO WE HAVE A, UH, TIMELINE OF THOSE PAYMENTS? I HAVE A ROUGH ESTIMATE OF THOSE PAYMENTS.
UM, I MEAN, AGAIN, IT'S NOT SET IN STONE, BUT WE'LL HAVE SOME, DEPENDING ON THE OTHER PROJECT THAT WAS APPROVED LAST YEAR AND ITS TIMING, UM, YOU KNOW, THERE MAY BE AN INITIAL PAYMENT THAT'S A LITTLE BIT HIGHER, AND THEN IF BOTH PROJECTS ARE ELIGIBLE FOR PAYMENT AT THE SAME TIME, WE WOULD HAVE A SPLITTING OF PAYMENTS.
SO IT'S A LITTLE BIT VARIABLE, BUT, UM, OUR CURRENT ESTIMATE IS THAT WE WOULD FULLY PAY IT BY 2032.
S- SOON, SO THE PROJECT COMPLETION WOULD BE 2030 AND WE WOULD PAY, WE WOULD COMPLETE THE SUBSIDY IN 2032 IN TWO YEARS? POTENTIALLY, YES.
HOW LONG DID IT TAKE US TO? ZANE TRUMP, I, THAT WAS BEFORE MY TIME.
BUT THE DISTRICT'S MORE MATURE THAN IT USED TO BE, SO.
THAT SEEMS LIKE PRETTY QUICK THOUGH, FROM MY EXPERIENCE ON TIPS.
WHAT, WHAT, WHAT IS IT? I HAVE A PERCENTAGE TRIANGLE TICKET FOREVER.
YEAH, THAT WAS A - IT WAS, IT WAS A DIFFERENT TIME, BUT - YEAH, THAT WAS BACK IN...
SEEMS LIKE - I THINK THAT PROJECT WAS APPROVED, WHAT, IN 2009? SO THAT WAS, IT WAS A WHILE AGO.
WHAT'S OUR AVERAGE TIME? DO WE HAVE AN AVERAGE RIGHT NOW? UM, IN THIS TIP DISTRICT, BECAUSE WE HAVEN'T HAD A LOT OF PROJECTS, UM, LIKE FOR INSTANCE, THE, UM, THE GATEWAY OAK CLIFF PROJECT THAT WE HAD THAT WAS AT THE FORMER COUNTY BUILDING, WE HAD A LOT OF ACCUMULATED CASH, AND THAT WAS ABOUT A LITTLE OVER FOUR MILLION.
THAT HAD TAX CREDITS TOO, SO THEY HAD THAT SUBSIDY, SO TO SPEAK.
UM, THAT PROJECT WE WERE ABLE TO PAY RIGHT AWAY BECAUSE WE HAD ACCUMULATED CASH.
SO IT'S NOT A VERY, IT'S VARIABLE.
UM, FOR MATURE DISTRICTS, IT'S NOT THAT UNCOMMON TO PAY OFF A PROJECT WITHIN FIVE YEARS.
UM, BUT, LIKE, THINGS WERE PRETTY LEAN EARLY WITHIN OAK CLIFF'S HISTORY, BUT IT'S CHANGED.
UM, I'M GONNA TRY TO MINIMIZE THIS SO WE CAN SEE OTHER PEOPLE, THAT OTHER PEOPLE HAVE QUESTIONS.
MAYBE I NEED TO JUST STOP SHARE FOR NOW.
UM, DO YOU WANT THE DEVELOPMENT TEAM TO AND THEN WE CAN - I, I ABSOLUTELY WOULD LOVE TO HEAR THE STORY OF THIS AND WHAT THIS MEANS TO YOU AND WHAT, UM, WHAT'S YOUR VISION IS? ABSOLUTELY.
WELL, THIS, THIS STARTED QUITE A WHILE BACK, UH, YOU KNOW, JUST WITH THE ACQUISITION OF A COUPLE OF SMALL APARTMENT COMPLEXES UP THERE.
AND, UM, OVER TIME, IT JUST APPEARED AS THOUGH THERE WAS A GREAT OPPORTUNITY FOR AN ASSEMBLY TO REALLY MAKE A DIFFERENCE IN THE NEIGHBORHOOD.
UM, AND SO WE'VE, WE'VE DONE IT PIECE BY PIECE.
UM, MY BROTHER INGRID HAS INVESTED IN SOME OF IT WITH ME.
AND, UM, AS YOU MIGHT KNOW, THE COUNTY BUILDING OVER THERE, THAT WAS, THAT WAS PART OF THE INITIAL ACQUISITION ON ONE OF THE LARGER ACQUISITIONS, UH, THAT USED TO BE TAYLOR PONTIAC.
AND, UH, I WAS APPROACHED SOON AFTER I PUT IT UNDER PARTNERS, UH,
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FOR THEM TO, TO BUY IT.I THOUGH THAT WOULD BE A GREAT ADDITION TO THE NEIGHBORHOOD.
A NICE BUILDING IS EVERYBODY - CAN EVERYBODY ONLINE HERE, YOU MIGHT HAVE TO TALK LOUDER.
CAN YOU HEAR ME? YEAH, YOU'RE COMING IN WELL.
SOMETIMES IT'S, IT'S A LITTLE - RIGHT.
WELL, I, I CAN TALK AS LOUD AS I NEED TO, BUT, UM, ANY- ANYWAY, UH, I THINK THAT'S BEEN A WONDERFUL ADDITION TO THE NEIGHBORHOOD.
UM, BE ABLE TO GET THAT WITH THE PRESENCE OF ALL THE LAW ENFORCEMENT THAT GOES TO THE BUILDING ON A DAILY BASIS.
I, YOU KNOW, WHEN I HEARD ABOUT THAT, I THOUGH THAT WAS FANTASTIC.
UM, WITH RESPECT TO THIS PARTICULAR PROJECT, WE SEE THIS AS A CATALYST FOR THE REST OF IT TO GET DEVELOPED OUT.
UM, YOU KNOW, I MEAN, I, I THINK PROBABLY EVERYBODY'S SOMEWHAT FAMILIAR WITH THE DECK PARK AREA, I THINK.
UM, RIGHT, RIGHT NOW, THERE JUST ISN'T A WHOLE LOT OF DENSITY DOWN THERE.
AND, UH, YOU KNOW, THE EXPECTATION IS THAT ONCE WE GET THIS BUILT OUT WITH THE RETAIL AND ALL THE RESIDENTS THAT ARE COMING, IT'LL BE A CATALYST TO GROW THE REST OF IT SO THAT, UH, THERE'LL BE PEOPLE TO GO TO THE PARK.
IMPORTANTLY, UH, YOU KNOW, WE, MY BROTHER AND I HAVE OFFICE IN UPTOWN, AND SO I'M CONSTANTLY AROUND CLYDE WARREN PARK AND, UH, YOU KNOW, I, WHAT, WHAT'S OBVIOUS TO ME WITH CLYDEMORE PARK IS YOU HAVE SO MANY PEOPLE WHO WORK AND LIVE BY IT, AND THAT HAS BEEN A, A MAJOR.
AND, AND I THINK IN ORDER TO SEE THE FINAL VISION OF PARK, WE NEED PEOPLE LIVING AROUND THERE.
AND I THINK ONCE WE CAN GET A CATALYST TO GET MORE PEOPLE DOWN THERE, THEN IT INVITES THE OPPORTUNITY FOR RESTAURANTS, RETAIL, ENTERTAINMENT, AND SOME, IT BECOME A, A NEIGHBORHOOD THAT PEOPLE NOT JUST IN OAK CLIFF, BUT ALL OVER DALLAS, VISITORS TO DALLAS CAN ENJOY.
SO THAT'S, THAT'S OUR VISION IN A NUTSHELL, THAT THIS IS JUST THE BEGINNING OF SOMETHING MUCH BIGGER.
AND, AND BY THE WAY, WE, WE HAVE 26 ACRES TO DEVELOP ACREAGE ON THE OTHER SIDE OF THE HIGHWAY.
SO - YOU HAVE 26 ACRE- ACRES TO DEVELOP, IS THAT WHAT YOU SAID? YES.
SO WHY, WHY DID YOU CHOOSE THIS PARTICULAR SPOT FOR THE - I, STARTING WITH THE OUTSIDE TO WORK IN, UH, SO, UH, MY BROTHER AND I HAVE THAT, THAT, THAT WHOLE BLOCK THAT'S IN FRONT OF THE FIRST BASE OF THAT PARK.
AND I THINK THAT, UH, ONCE WE GET THE DENSITY DOWN THERE, I THINK THE, THE OP - THE OPPORTUNITY TO BUILD SOMETHING REALLY SPECTACULAR ON THAT BLOCK WILL EXIST.
AND SO, UM, WE WANTED TO START OUT AND COME IN.
UM, DOES, UM, DO YOU HAVE ANY CONCERNS ABOUT THE PROJECT BEING ON, ON THE OUTER EDGE AND WORKING IN? NO, NOT REALLY.
UH, JEFFERSON AND EWING ARE MAJOR THOROUGHFARES.
I THINK WE'RE GONNA GET A LOT OF EXPOSURE.
I THINK PEOPLE ARE GONNA WANNA LIVE THERE AND HAVE SUCH GREAT ACCESS TO, UH, THE JEFFERSON BRIDGE, WHATEVER THAT WOULD BE.
AND THEN I-35, I MEAN, THE ACCESS IS WONDERFUL.
SO, NO, I, I THINK IT'S A GREAT LOCATION.
AND, UH, I, I HAVEN'T HAD THE BENEFIT OF SEEING THE UNDERWRITING, UH, FROM GROW, GROW AMERICA, RIGHT? UM, YEAH.
DOES, DO THE RENT NUMBERS WORK OUT FOR WHAT YOU'RE LOOKING AT? I, I, I'M TRYING TO UNDERSTAND THE FINANCIALS.
CAN YOU SPEAK A LITTLE BIT ABOUT THAT? YEAH, SURE.
UM, YOU KNOW, SOME OF THE COMMS, OF COURSE, BISHOP BARDS, AND WE'RE NOT EXPECTING BISHOP BARD RENTS RIGHT AWAY.
WE DON'T WANT TO GET THAT RIGHT.
UM, BUT THAT IS CERTAINLY A COMP.
UH, AND SO WHAT WE'RE ANTICIPATING IS SOMETHING IN THE LOWER TWO RANGE.
WHAT I CAN SHARE FROM THE UNDERWRITING IS THAT, YOU KNOW, OVER, LIKE, A 10-YEAR WHOLE PERIOD, THERE WOULD BE AT, LIKE, ABOUT 11% RETURN, WHICH IS REASONABLE.
IT'S NOT CRAZY TO GIVE YOU SOME PERSPECTIVE.
AND THAT'S AFTER THE TWO? YES.
YEAH, IT'S GONNA BE A HEAVY ONE.
I, I MEAN, IF YOU, IF YOU LOOK AT SIMILAR NEIGHBORHOODS, UM, WE ANTICIPATE A LOT OF YOUNGER PEOPLE, UH, 25 TO 35 YEAR OLDS AND, YOU KNOW, PEOPLE WHO HAVEN'T STARTED FORMING FAMILIES YET FOR THE MOST PART.
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AND WHAT IS, WHAT ARE SOME OF THE RETAIL ANTICIPATING? DO YOU HAVE ANY SENSE OF WHAT YOU'RE LOOKING TO ATTRACT TO YOUR RETAIL SPACE? WELL, I, I, I DEFINITELY THINK THAT, UH, COFFEE SHOP, FAST CASUAL, STUFF LIKE THAT WOULD REALLY WORK WELL.HOW FAR IS THIS EXACTLY FROM THE?.
UH, THE FINANCING THAT YOU HAVE LINED UP, UM, ANY CONCERNS ON THAT WITH RATES AND...
WELL, THE, THE TIP IS STRUCTURED AROUND THE EXISTING RENT ENVIRONMENT THAT WE HAVE.
UH, WE'VE HAD A LOT OF, UH, CONVERSATIONS WITH LENDERS, INCLUDING THE LENDER WHO HAS THE DEBT ON THE PROPERTY RIGHT NOW.
UM, SO WE, WE FEEL VERY CONFIDENT WE GET WHAT WE NEED.
UH, WE'VE DONE A LOT OF TURNAROUND PROJECTS, A LOT OF APARTMENT COMPLEXES.
UH, VERY FAMILIAR WITH, WITH, UH, MULTI-FAMILY, DONE A WHOLE LOT OF PROJECTS, MULTI-MILLION DOLLAR PROJECTS, LOTS OF STUFF.
I- I- IS THIS, UH, THIS QUESTION IS, IS THIS THE LARGEST ONE YOU'VE DONE? YEAH, THAT'S FAIR TO SAY.
UM, I'M GONNA GO IN THE WEEDS HERE A LITTLE BIT.
YOUR, YOUR SOURCE OF FINANCING, IS IT CASH ON HAND OR ARE YOU LEVERAGING OTHER PROPERTIES, CROSS-COLLATERALIZING? WELL, WE, WE HAVE A LOT OF EQUITY IN THE LAND THAT'S OVER THERE.
AND, UH, SOME CASH AND EXCESS TO CASH.
WILL PART OF THAT BE BORROWED? UH, THE UNDERLYING DEBT, ABSOLUTELY.
EQUITY WE'RE GONNA GET FROM PUBLIC MARKETS, YOU KNOW, SOME OF THE EQUITY THAT STANDS IN THE SHOES OF THE, THE TIF MONEY.
UM, WHEN, WHEN YOU WERE DISPLAYING THE FINANCING CHART, I KNOW WE HAVE 29 MILLION IN TIF MONEY WE'RE TALKING ABOUT.
DID I ALSO HEAR SOMETHING ABOUT A DEVELOPMENT GRANT? NO, THAT WAS, UM, THE ONLY SUBSIDY IS THE 29 MILLION.
THE REST IS EITHER DEBT OR EQUITY.
UM, THE CARRY COST FROM GETTING FROM POINT A TO WHEN YOU OPENED, UM, HOW ARE YOU GUYS FUNDING THAT? IT, IT'S BAKED INTO THE CAPITAL STACK.
I ASSUME THAT LE- LENDER WOULD'VE REQUIRED THAT ANYWAYS.
UM, IS YOUR PERMIT MADE POSSIBLE? I, I - WE BELIEVE SO.
YEAH, WE'VE ALREADY SUBMITTED.
I, YEAH, I, I, I FEEL GREAT ABOUT THAT.
'CAUSE SOMETIMES THAT CAN BE SLOW THINGS DOWN.
AND I KNOW THERE WAS A PRETTY AGGRESSIVE DATE FOR SUCH A LARGE PROJECT.
NO, WE'VE BEEN WORKING ON THIS FOR QUITE A WHILE.
I MEAN, YOU CAN SEE THE NOTES.
THEY WEREN'T IN TROUBLE WITH OUR FIRST ITERATION, BUT I, I, I THINK THAT THEY'RE REALLY EXCITED ABOUT WHAT WE HAVE NOW.
I, I HAVE TO SAY IT'S VERY, VERY PRETTY.
WE, YOU KNOW, SO IT'S ONE OF THOSE THINGS YOU KNOW WHEN YOU SEE IT AND WHEN THEY PRODUCE THAT.
BUT JUST OUT OF CURIOSITY, WHAT ARE THE MAJOR CHANGES THAT CAME OUT OF THE CITY FIELD REVIEW? OH, GOSH.
UM, I THINK I- IF I HAD TO SUMMARIZE, UH, THERE WAS A LOT OF CONCERN THAT IT LOOKED A LITTLE TOO SUBURBAN.
AND THIS I THINK IS, I, I THINK THIS IS, UH, JUST A LOT MORE ATTRACTIVE AND NEWER LOOKING.
WHEN THE FIRST TIME IT WENT TO A PEER REVIEW, THE, THE COM - SOME OF THE COMMENTS WERE, "THIS DOESN'T SPEAK TO THE ARCHITECTURE OF OAKLAND." RIGHT.
UM, AND THIS HAS MUCH MORE, UM, CHARACTER TO IT.
IT JUST WAS NEW DRAWING BOARD, NEW DESIGNERS, EVERYTHING.
YEAH, I'D LIKE TO HAVE SOME HERE.
[00:30:01]
THANK YOU VERY MUCH.THAT SUN COST IS NOT BUILT INTO THIS, RIGHT? NO, IT'S, IT'S NOT.
THAT'S ONE OF THE THINGS THAT REALLY STRUCK ME, UH, THAT, THAT THEY INVITE PEOPLE IN THE CORNER AS YOU'RE ROUNDING THEM.
IT, IT JUST, TO ME, IT, IT JUST SAYS, "COME LOOK." UH, TALK TO ME A LITTLE BIT ABOUT THE DEVELOPER PIECE.
IS THAT IN-HOUSE? Y'ALL SPEED THAT? YES.
DO YOU HAVE ANY CONSULTANTS IN THERE? OR IS IT 100% INVOLVED? WE DO HAVE A CONSULTANT, UH...
ARE THERE APARTMENTS ON THE SITE TODAY? I'M LOOKING AT THIS ONE PICTURE.
SO WHAT YOU'RE LOOKING AT WITH, WITH ALL THE CARS ON IT, UM, THAT'S A TENANT OF OURS.
AND, UM, SO WE HAVE THAT, JUST A COUPLE OLD BUILDINGS.
THEY'RE, THEY'RE DOING, UH RENTALS AND, UH, BARRICADE SIGNS THAT THEY PUT OUT.
SO NOBODY'S GETTING DISPLACED? NO.
NO, NO RESIDENTS ARE BEING MOVED OUT.
ALL THE TENANTS WHO ARE OVER THERE ARE MONTH TO MONTH AND, UH, FRANKLY, YOU KNOW, WE, WE BARELY COLLECT ANY MONEY.
THE, THE MAIN REASON WHY WE KEEP THEM OVER THERE IS BECAUSE IF IT'S NOT OCCUPIED, SOMEBODY WILL VANDALIZE IT, TEAR THE COPPER GETTING TICKETED.
SO, UM, THAT'S THE PRIMARY REASON WE KEEP THEM THERE.
AND I THINK THAT, UH, I THINK THE CITY WOULD BE GLAD TO SEE THAT GO.
IT'S NOT THE MOST ATTRACTIVE USE.
WAS THERE ANY CONSIDERATION EVER GIVEN TO THIS SITE FOR HOMEOWNERSHIP PRODUCT? NOT REALLY.
I MEAN, FROM THE START, UH, WE THOUGH THAT DENSITY, UH, TO START IS THE MOST IMPORTANT THING TO GET OVER THERE.
AND IF - PARDON? CONDOMINIUM OR EVEN IF IT'S.
I THINK THIS, YOU KNOW, FOR US, WE FELT LIKE THIS WAS A MORE EASILY EXECUTED VISION.
AND AS FAR AS THE CONDOS GO, I THINK IT'S, IT'S, IT'S, UH, SHOULD BE NOTED THAT I THINK A LOT OF OUR CURRENT, UH, STATUS AND OUR MISSION IS AFFORDABILITY.
SO IF WE WERE TO GO BUILD CONDOS, TODAY I FEEL LIKE WE'RE GONNA WIPE OUT A LOT OF THE POPULATION AS FAR AS, AS FAR AS WHO CAN ACTUALLY PARTICIPATE IN THE AREA.
I MEAN, SELLING THEM AT COST JUSTIFIES THE RISK.
UH, I THINK, YOU KNOW, SINCE THING UNFOLDS, THERE'LL BE BETTER OPTIONS.
UM, 265 UNITS, IS THAT WHAT IT IS? THAT'S, THAT'S.
UH - WE ACTUALLY ANTICIPATE MORE.
DO YOU ANTICIPATE THAT TO BE AN ISSUE? NO.
THOSE ARE MINIMUMS. YEAH, I THINK FROM THE STAFF PERSPECTIVE, GIVEN ITS PROXIMITY TO THE DECK PARK, WE WANTED TO ENSURE THAT THERE WAS SOME MINIMUM LEVEL OF STRUCTURED PARKING, JUST TO MAKE SURE THAT THERE WASN'T, LIKE, NOT ENOUGH PARKING AND THEN YOU HAVE...
YOU'RE ALREADY MAYBE HAVING SOME PARKING CHALLENGES IN THE AREA, SO.
AND, AND I MIGHT ADD, WE'RE ALSO, UH, WORKING WITH SOME PARKING SOLUTIONS IN THE AREA.
FOR JUST THE AREA IN GENERAL? YES.
THIS IS A LOT OF MONEY YOU'RE ASKING FOR.
UM, HOW, WITH THE PAYMENT SCHEDULE BEING AS LATE AS, UH, 2032, UM, DO YOU HAVE THAT FLOAT BAKED INTO YOUR COST? WE DO.
YEAH, WE CAN MAKE THE NUMBERS WORK.
YOU CAN MAKE THE NUMBERS WORK.
[00:35:04]
UH, TALK TO ME A LITTLE BIT ABOUT, TALK TO US A LITTLE BIT ABOUT, UH, YOUR ORIGINAL REQUEST WAS 39 MILLION.UM, THAT'S EVEN A LARGER NUMBER.
DID Y'ALL CUT SOME EXPENSES OUT OF THIS OR THAT WAS BASED ON THE SAME PROJECT COST? WE HAD TO SHARPEN THE PENCIL QUITE A BIT.
UM, YOU KNOW, UH, TAILED IT A LITTLE BIT FROM THE, THE ORIGINAL ASK AND, YOU KNOW, PUT FINER POINT ON THINGS.
AND I WOULD SAY PROBABLY INTEREST RATES TOO WERE KIND OF UP AND DOWN DURING THIS.
AND, YOU KNOW, I, I THINK WITH THE PRESENT COMPANY, EVERYBODY UNDERSTANDS WHAT'S HAPPENED WITH RATES OF THE LAST THREE YEARS ARE GOING BACK TO 22, VERY UNPREDICTABLE.
UM, YOU KNOW, WE, WE COULD HAVE BEEN IN AN ENVIRONMENT WHERE THAT'S NOT A PERCENT.
FORTUNATELY NOT, BUT THERE WAS A LOT OF UNKNOWN.
I THINK IT'S A LOT MORE STABLE NOW.
IS YOUR LENDER REQUIRING YOU TO FIX THE DEBT OR A PORTION, HEDGE A PORTION OF THE DEBT? NO.
ANY ON- ONLINE PEOPLE HAVE MORE QUESTIONS? WE TRY, WE TRY NOT TO IGNORE YOU.
FOR THE, FOR THE GROUND FLOOR? YES, MA'AM.
YEAH, SO THE IDEA IS WE WANNA MAKE SURE THAT THE GROUND FLOOR IS ACTIVE, SO THAT'S WHY WE PUT THAT MINIMUM 40%, UM, OCCUPANCY NUMBER IN THERE.
UM, WE DO HAVE SOME LANGUAGE IN OUR MODIFICATION SECTION THAT IF THEY'RE NOT SUCCESSFUL IN GETTING COMMERCIAL TENANTS, THAT WE COULD CONSIDER A MODIFICATION TO CONVERT THAT TO RESIDENTIAL SPACE, WHICH IS SOMETIMES HAPPENS.
UM, SO THERE'S SOME FLEXIBILITY THERE, BUT THE IDEA INITIALLY WAS TO TRY TO INCENTIVIZE, UM, SOME ACTIVE USES ON THE GROUND FLOOR AS SOON AS POSSIBLE.
SO DO WE HAVE, DO WE HAVE SIMILAR PROVISIONS ON OUR AGREEMENTS WITH THE DEVELOPERS, UH, OVER ON BISHOP, UM- UM...
BECAUSE, BECAUSE THAT, THAT, THAT, THAT HAS BEEN SOME - YEAH.
AND I WANNA ASK THE DEVELOPER THE SAME THING.
IT'S, IT'S YOUR THING THAT RETAIL AND COMMERCIAL HAS STRUGGLED.
UM - YEAH, THAT'S WHY WE PUT THE PROVISION TO CONSIDER A MODIFICATION BECAUSE OF, YOU KNOW, THE, UM, ALMO MANHATTAN'S, UM, EXPERIENCE WHERE THEY HAVE CONVERTED SOME OF THEIR SPACES TO, TO RE - TO RESIDENTIAL.
UM, IN THAT CASE, WAY BACK THEN, WE DIDN'T HAVE, LIKE, A MINIMUM OCCUPANCY TO GET A PAYMENT, BUT WE DID HAVE SOMETHING LIKE THEY HAD TO GET TO, UM, A CERTAIN LEVEL OF OCCUPANCY WITHIN 18 MONTHS OF COMPLETION, AND THEY WERE ABLE TO MEET THAT, BUT IT WAS REALLY, REALLY TIGHT.
AND THEN THEY ALSO CONVERTED SOME OF THEIR, UM, SPACE TO RESIDENTIAL.
SO WE WERE KIND OF COGNIZANT OF THAT GOING INTO LOOKING AT THIS, BUT I THINK THEIR PROXIMITY TO THE DECK PARK HAS CREATED SOME OPTIMISM FOR, UM, FOR RETAIL.
UM, BECAUSE, UH, THERE'S NOT A WHOLE LOT WITHIN PROXIMITY OF THE DECK PARK.
WE ABSOLUTELY EXPECT THAT WHATEVER, UH, SORT OF RETAIL GETS OVER THERE IS BENEFIT FROM PROXIMITY.
SO, UH, AT THIS POINT, DO YOU HAVE ANY COMMITMENTS FOR THAT SPACE? NO, NOT YET.
UH, IT, IT, IT'S A, A LITTLE HARD TO, TO LEASE TO SMALL RETAIL UNTIL IT ACTUALLY SEEMS LIKE IT'S COMING ON THE GROUND.
BUT I, I FEEL VERY GOOD SOME OF THE PLACES WHERE THEY'VE STRUGGLED WITH THE MIXED USE, UH, IN PROXIMITY TO OTHER COMPETING USES.
CAN WE TALK A LITTLE BIT ABOUT THE, THE, THE PUBLIC AMENITIES? I KNOW WE'RE GETTING SOME INFRASTRUCTURE DONE RELATED TO THIS PROJECT SIDEWALK, WE'RE GETTING STREET LIGHTING.
THE MENTION OF THE DOG PARK, IS THAT FOR ANYONE? THE DOG PARK WON'T BE OPEN TO THE PUBLIC, IT'S MORE RESIDENT, BUT THEY'RE GETTING THE WIDER SIDEWALKS AND THE, THE LANDSCAPING AND THE, THE LIGHTING.
BENCHES, LIGHTING, SIDEWALKS, UH, REALLY DRESS UP THE NEIGHBORHOOD AND GIVE PEOPLE A PLACE TO SIT AND CREATE THE COMMUNITY.
[00:40:10]
HERE, HERE'S WHERE...DOES ANYONE HAVE FURTHER QUESTIONS? HERE, HERE'S WHERE I...
I, I'M, I'M NOT SPEAKING ON BEHALF OF EVERYONE HERE.
UH, THIS IS A LOT OF MONEY TO ASK, UH, FOR, FOR THIS.
UH, I THINK IT'S A BEAUTIFUL PROJECT.
I WOULD ABSOLUTELY BE EXCITED TO SEE THIS, UM, HERE.
BUT I HAVEN'T REVIEWED THE UNDERWRITING YET, JUST BECAUSE IT IS SUCH A LARGE AMOUNT, UM, OF, OF FUNDS.
UH, I JUST WOULD LIKE A LITTLE BIT OF TIME TO REVIEW THAT UNDERWRITING BEFORE I, I.
E- EVERYONE ELSE MIGHT THINK DIFFERENTLY HERE, BUT I, I REALLY WANNA UNDERSTAND, BECAUSE 29 MILLION, UM...
I GUESS WHAT DOESN'T SIT WELL WITH ME IS THE CITY'S PUTTING IN MORE EQUITY THAN YOU GUYS, UM, ON, ON, ON THE PERCENTAGE AND, OR...
AND AM I WRONG ON THAT? UH, WELL, IN TERMS OF, LIKE, PERMANENT SOURCES, I MEAN, IT'S SLIGHTLY MORE, BUT AGAIN, THEY HAVE TO, UM, BRIDGE THE TIP SUBSIDY IN THE INTERIM.
SO PERMANENT SOURCES WISE - I- ISN'T THAT BRIDGING INCLUDED IN THE SOFT COST THOUGH? YEAH, I MEAN, THERE'S STILL, THERE'S STILL RISK THOUGH - SURE.
OF THE TIP SUBSIDY BEING PAID OUT, BUT, UM, YOU KNOW, AGAIN, I THINK A SUBSIDY AROUND 31%, AGAIN, IS NOT UNCOMMON THESE DAYS.
YEAH, I, I GET IT, AND I UNDERSTAND THE INTEREST RATE.
AND, AND I DON'T WANT Y'ALL TO THINK THAT I'M NOT, UM, UM, I, I'M NEGATIVE ON THIS PROJECT.
IT'S JUST, IT'S A LOT OF MONEY AND I HAVEN'T SEEN RESPECT TO WRITING.
THAT, THAT, THAT'S ALL I - YEAH, THE OTHER THING I WILL SAY IS THEY, YOU KNOW, WE WILL DO THAT POST-CONSTRUCTION AUDIT SO THAT, YOU KNOW - THAT'S GOOD.
TAKING OUT THE PROPERTY ACQUISITION, UM, COMPONENT, YOU KNOW, IF THERE ARE OTHER COSTS OVERALL ARE UNDER 82 MILLION, WE'VE RESERVED THE RIGHT TO REVISIT, YOU KNOW, THE SUBSIDY.
SO THAT'S, THAT PROVISION - IS, IS THAT PROVISION STANDARD LANGUAGE OR IS THAT JUST A NUMBER? WE STARTED DOING THAT IN THE LAST THREE YEARS, UM - OKAY.
SO, UM, SO THIS IS KIND OF THE CATALYST PROJECT FOR THIS, FOR THIS SUB-DISTRICT.
UM, AND, AND - FOR THIS PARTICULAR END OF IT, YOU KNOW, YOU'RE NOT IN BISHOP ARTS, YOU'RE ON THE FRINGE OF...
AND, AND I RECALL FROM, YOU KNOW, OUR, OUR PAST THAT, THAT THE CATALYST, THE CATALYST PROGRAMS TENDED TO REQUIRE MORE TIP SUBSIDY UPFRONT SORT OF LET EVERYONE KNOW THAT, "HEY, THIS IS A, THIS, THIS IS THE POSSIBILITY.
THIS IS THE STANDARD WE WANT KIND OF THE ONES THAT ARE SORT OF TAKING THAT INITIAL RISK AND COMING IN AND SAYING," OKAY, WE'RE GONNA, WE'RE GONNA TRY TO MAKE THIS HAPPEN IN THIS AREA WHERE NONE OF THIS HAS HAPPENED BEFORE.
"SO I AGREE WITH YOU, IT'S A LOT OF MONEY, UM, BUT I KINDA SEE THIS AS A CATALYST FOR THAT PART OF THE, THIS UM, BECAUSE THERE'S NOTHING REALLY, YOU KNOW, THERE'S NOT A LOT HAPPENING IN, ON, ON THAT SIDE.
UM, AND, UM, THIS IS THE KIND OF THING THAT IF, IF IT GOES RIGHT, YOU'LL HAVE, YOU KNOW, YOU KNOW, HE'LL BE AT THE TABLE AGAIN, UM, YOU KNOW, WITH HIS NEXT PROJECT AND HOPEFULLY THERE'LL BE OTHERS COMING IN, UM, WHICH IS KIND OF WHAT WE'VE SEEN IN THE OTHER TIPS.
YOU GET THAT ONE PROJECT THAT KINDA, YOU KNOW, LETS EVERYBODY KNOW, OKAY, IF, IF, IF, IF MR. HUDLEY WITH HIS EXPERIENCE WILL TAKE A RISK IN THIS AREA, YOU KNOW, MAYBE WE NEED TO START LOOKING AT THIS AREA AS WELL.
AND THEN AGAIN, YOU LOOK AT THE PARK, YOU KNOW, YOU KNOW, IT'S PROXIMITY TO BISHOP PARKS, UM, THIS HAPPENING, WE'VE GOT A COUPLE SCHOOLS IN THE AREA, UM, SO I AGREE WITH YOU, IT'S A LOT OF MONEY, BUT I KINDA FEEL LIKE THERE'S, THERE'S RISK INVOLVED BECAUSE THEY GOTTA MEET ALL THE CRITERIA TO GET THE TIP SUBSIDIES.
SO THEY'RE GONNA, THEY'RE GONNA SPEND THIS MONEY AND HOPE THAT THIS MONEY COMES BACK TO THEM.
I, I, I DO THINK THIS IS THE PERFECT PROJECT FOR THAT SIDE OF TOWN, SO - THANK YOU.
UM, MY, MY, MY THING IS JUST LOOKING OUT AFTER THE OVERALL BUDGET, UH, THAT THIS IS ONE OF THE LARGEST, UH, WE'VE DONE, UM, THAT DOESN'T...
WE GOTTA BE MINDFUL OF WHAT'S LEFT TO GET FOR OTHER PROJECTS, AND I'M JUST...
MY, MY CONCERN WAS I JUST WANNA, UH, DOT MY IS AND CROSS MY T'S, UH, TO MAKE SURE THAT I UNDERSTOOD UNDERWRITING THAT'S ALL I'M SAYING.
[00:45:01]
I KNOW THAT SUE HAS HAD DISCUSSIONS WITH US ABOUT THE CONTRIBUTION THAT THE PROPERTY'S GOING TO MAKE WITH THE TAX ASSESSMENT.I MEAN, THE, THE PROPERTY ITSELF IS GOING TO GENERATE A LOT OF.
YEAH, I WILL SAY FOR THIS SUB-DISTRICT, I MEAN, IT'S UNLIKELY THAT WE'RE GONNA SUBSIDIZE ANY PROJECTS IN THE MIDDLE OF.
SO THIS IS SORT OF THE NEXT FRONTIER FOR THIS SUBDISTRICT TO SOME EXTENT.
AND THAT, THAT IS WHY I ASKED YOU ON WHY DID YOU PICK THIS, UM - OH, WE LOVE PIECE, UH, HERE BECAUSE IT WAS A LITTLE BIT ON THE FRINGE, SO - RIGHT.
UM, MY RESERVATION IS JUST BEING RESPONSIBLE FOR THE MONEY.
AND I WILL SAY ALSO, YOU KNOW, COMPARED TO OTHER RECENT PROJECTS, WHICH SOME OF THEM WERE ADAPTIVE REUSES, SOME WERE NEW CONSTRUCTION, GENERALLY SPEAKING, THE INCENTIVE PER UNIT IS BELOW AVERAGE.
I MEAN, THAT KIND OF RANGE FROM, YOU KNOW, DOWNTOWN STUFF, WHICH IS, YOU KNOW, OVER 300 PER UNIT, YOU KNOW.
WHAT DOES THIS ONE COME TO? THIS ONE PER UNIT WOULD COME UP TO ABOUT 109,000 PER UNIT.
SO, AND THE AVERAGE, BASED ON ALL THESE, THIS WIDE RANGE IS ABOUT 187.
SO IT'S BELOW THE PER UNIT INCENTIVE COMPARED TO OTHER PROJECTS.
SO ARE YOU WANTING TO TABLE THIS FOR ANOTHER MEETING SO YOU CAN - YEAH.
I MEAN, OBVIOUSLY THE, THE COMMITTEE, UH, THE BOARD HERE, UM, YOU KNOW, IF Y'ALL FEEL STRONGLY, UM, TO MOVE FORWARD.
UH, SUE, WHEN WOULD BE THE NIGHT, THE EARLIEST? I MEAN, WE HAVE THE - RELATIVELY QUICKLY.
I DON'T WANT TO KEEP THE MEETING AT ALL.
WE HAVE OUR QUARTERLY MEETING DECEMBER 14TH.
I DON'T KNOW IF IT WOULD BE POSSIBLE TO SCHEDULE SOMETHING BEFORE THEN OR NOT.
THE THANKSGIVING, IT MIGHT BE DIFFICULT.
UM - WHAT DOES DECEMBER 14TH DO TO YOU GUYS? WELL, HONESTLY, WE'RE HOPING TO GET TO THE CITY COUNCIL ON DECEMBER 9TH.
THEY'RE GONNA BE ASKING THE SAME QUESTIONS.
SO I JUST WOULD THINK, UM, YOU KNOW, IF, IF WE GET COMFORTABLE THERE, ANYONE ELSE WOULD GIVE YOU GUYS THE BEST CHANCE OF...
BUT TO HIS QUESTION, UH, I- I- IF IT WAS PUSHED TO A DECISION ON THE 14TH? WELL, I, UH, THE SOONER THE BETTER, BUT WE HAVE TO DO WHATEVER YOU NEED TO DO.
UM - SO WHAT, WHAT'S, WHEN'S THE FIRST COUNCIL MEETING IN JANUARY? UM, IT WOULD BE, UM, WE WOULD...
IF WE, IF THIS GOT PUSHED TILL DECEMBER TO THE BOARD, WE'D GO TO, UM, COMMITTEE PROBABLY JANUARY 4TH AND THEN COUNCIL THE 13TH.
SO, UM, ANY CHANCE IT, IT COULD HAPPEN AND STILL MAKE THE DECEMBER? IT'S GETTING REAL TIGHT, UM, BECAUSE OF THANKSGIVING.
UM, AND WE HAVE SO MANY, LIKE, INTERNAL DEADLINES TO GET TO ECO, THE ECO COMMITTEE'S DECEMBER ONE, SO IT GETS REALLY TIGHT.
WELL, I MEAN, I KNOW IT'S NOT AN IDEA FOR, FOR, FOR YOU GUYS, BUT I THINK, UM, SHOULD WE TAKE THAT EXTRA 30 DAYS, MEET UP AGAIN, UM, DOING OUR ANNUAL, UH, FIFTH BOARD MEETING, UM, VOTE ON IT THEN, YOU'RE READY FOR, FOR JANUARY.
HOW, HOW, HOW, HOW DO Y'ALL FEEL UNLINED? SO WE NEED A MOTION FOR THAT TOO? YEAH.
SO, UM, SO JUST THE CHAIR CAN MAKE IT, RIGHT, HIS SUGGESTION.
I MOVE TO TABLE THIS TO THE DECEMBER 14TH MEETING.
I KNOW THAT'S NOT WHAT Y'ALL WANTED TO HEAR.
UM, SO FOR, FOR THE, FOR THE AGENDA FOR DECEMBER, YOU'LL SEND US THE, THE AGENDA? YEAH, SO WE'RE GONNA DO THE ANNUAL REPORTING BECAUSE WE'LL ADD THIS TO THE AGENDA, AND THEN IF THERE'S ANY PARTICULAR DETAILS, UM, I KNOW THAT WE DON'T ORDINARILY, LIKE, DISTRIBUTE THE ACTUAL UNDERWRITING REPORT, BUT IF THERE'S PIECES OF IT THAT WOULD BE HELPFUL.
YEAH, OR WE CAN EXTRACT THE THING THAT YOU GUYS WANNA KNOW.
[00:50:01]
WE'RE, WE'RE FREE TO COMMUNICATE BY EMAIL WHAT WE NEED? YEAH, JUST SEND TO ME WHAT YOU NEED, THAT WAY I CAN MAKE SURE YOU GUYS GET EVERYTHING.AND JUST CURIOUS, I- IF WE GET OUR QUESTIONS ANSWERED THIS WEEK, FOR INSTANCE, UM, AND WE'RE, WE FEEL COMFORTABLE WITH IT, THERE, IT'S NOT POSSIBLE TO GET IT BACK ON FOR DECEMBER.
IT WOULD BE, I THINK, DIFFICULT TO GET A MEETING BEFORE DECEMBER ONE.
AND THEN COUNCIL ONLY MEETS ONCE IN DECEMBER, WHICH IS THE 9TH, SO THEY DON'T MEET LATER IN JUST THE MONTH ANYWAY, SO IT GETS REALLY.
SO, OKAY, BUT NO, I, I, I DO FEEL WE.
UM, IF THERE'S NOTHING ELSE ON THE AGENDA, UH, MAKE A MOTION TO ADJOURN.