2011 APR 14 PM 2: 26. Cil T' ')f::.cf-.[ T?i.! DALLAS. TEXAS

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1 Memorandum DATE April 15, 2011 TO SUBJECT 2011 APR 14 PM 2: 26 Cil T' ')f::.cf-.[ T?i.! DALLAS. TEXAS Members of the Economic Development Committee: Tennell Atkins (Vice-Chair), Jerry R. Allen, Sheffie Kadane, Ann Margolin, Linda Koop, Steve Salazar Economic Development Committee Monday, April 18, 2011, 9:30-11:30 a.m Marilla Street, City Hall, Room 6ES, Dallas, Texas AGENDA CITY OF DAllAS 1. Approval of April 4, 2011 Minutes of the Economic Development Committee 2. Cityp/ace Area TIF Plan Amendment and Development Projects (Cityvi/le and JLB Tract 6C) 3. Danie/dale Distribution Facility Project 4. Lakewest Senior Assisted Living 5. Digital Billboard Code Amendment Update Karl Zavitkovsky, Director (Estimated time 20 minutes) Karl Zavitkovsky, Director (Estimated time 20 minutes) Karl Zavitkovsky, Director (Estimated time 20 minutes) David Cossum, Assistant Director Sustainable Development & Construction (Estimated time 10 minutes) 6. Upcoming agenda item for April 2011 Amendment to the By-Laws for the Skillman Corridor TIF District Ron Natinsky, Chair Economic Development Committee C: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins. City Secretary Tom Perkins, City Attorney Craig Kinton. City Auditor Judge C. Victor Lander, Administrative Judge Municipal Court Ryan S. Evans, First Assistant City Manager AC. Gonzalez, Assistant City Manager Forest Turner, Assistant City Manager Jill A Jordan, PE, Assistant City Manager Jeanne Chipperfield, CFO, OFS Karl Zavitkovsky, Director, OED Helena Stevens-Thompson, Asst. to the CMO

2 A closed session may be held if the discussion on any of the above agenda Items concerns one of the following: 1. Contemplated or pending litigation, or matters where legal advice is requested to the City Attorney. Section of the Texas Open Meetings Act. 2. The Purchase, exchange. lease or value of real property, it the deliberation in an Open Meeting would have a detrimental affect on the position of the City in negotiations with a third person. Section of the Texas Open Meetings Act. 3. A contract for a prospective gift or donation to the City, if deliberation in an Open Meeting would have a detrimental affect on the position of the City in negotiations with a third person. Section of the Texas Open Meetings Act. 4. Personnel matters involving appointments, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee or to hear a complaint against an officer or employee. Section of the Texas Open Meetings Act. 5. The deployment or specific occasions for implementation of security personnel or device. Section of the Texas Open Meetings Act. 6. Deliberations regarding Economic Development negotiations. Section of the Texas Open Meeting Act.

3 DRAFT Economic Development Committee Meeting Record April 4, 2011 The Economic Development Committee meetings are recorded. Agenda materials and audiotapes may be reviewed/copied by contacting the, Staff Coordinator at Meeting Date: April 4, 2011 Meeting Start time: 9:32 AM Committee Members Present: Ron Natinsky Tennell Atkins Sheffie Kadane Ann Margolin Steve Salazar Jerry Allen Linda Koop Other Council Members Present: Delia Jasso David Neumann Mayor Dwaine Caraway Staff Present: AC Gonzalez, Assistant City Manager, City Managers Office Theresa O'Donnell, Director, Sustainable Development & Construction Karl Zavitkovsky, Director, Office of Economic Development Paul D. Dyer, Director, Park & Recreation Department David Cossum, Assistant Director, Sustainable Development & Construction Janis Burklund, Manager, Office of Economic Development Daniel Huerta, Executive General Manager, Fair Park & Community Services 1. Approval of March 7, 2011 Minutes of the Economic Development Committee Presenter( s): Action Taken/Committee Recommendation(s): Motion made to approve the minutes. Motion made by: Mr. Atkins Motion seconded by: Mr. Kadane Item passed unanimously: ~ Item passed on a divided vote: Item failed unanimously: Follow-up (if necessary): Item failed on a divided vote: 2. Digital Billboard Code Amendment Update Presenter(s): Theresa O'Donnell, Director, Sustainable Development & Construction and David Cossum, Assistant Director, Sustainable Development & Construction Action Taken/Committee Recommendation(s): Update only. No action taken. Motion made by: Motion seconded by: Item passed unanimously: Item passed on a divided vote: Item failed unanimously: Item failed on a divided vote: Follow-up (if necessary): Councilmember Natinsky requested updated maps and ordinance language. Additionally, request another update in two weeks.

4 Economic Development Committee April 4, 2011 Meeting Record - Page 2 of 2 3. It's Not all Show... It's Business Dallas Film Commission Presenter(s): Janis Burklund, Manager, Action Taken/Committee Recommendation(s): Update only. No action taken. Motion made by: Motion seconded by: Item passed unanimously: Item passed on a divided vote: Item failed unanimously: Item failed on a divided vote: Follow-up (if necessary): Councilmember Salazar requested participation numbers from Dallas International Film Festival. 4. TicketCity Bowl Presenter(s): Paul D. Dyer, Director, Park & Recreation Department Action Taken/Committee Recommendation(s): Motion made to recommend item to council for approval. Motion made by: Motion seconded by: Item passed unanimously: _X_ Item failed unanimously: Follow-up (if necessary): Item passed on a divided vote: Item failed on a divided vote: 5. Upcoming agenda items for April 2011 Authorize to cancel the secured promissory note and execute a release of lien on the property located at 1844 South Boulevard, Dallas, Texas upon approval as to form by the City Attorney, pursuant to a loan made to 1 Tax Man, Inc., dba Tax Man, in the amount of $25,000, by the South Dallas/Fair Park Trust Fund, FY Cityplace Area TIF District Plan Amendment - Call for Public Hearing Action Taken/Committee Recommendation(s): Motion made to recommend items to council for approval. Motion made by: Mr. Atkins Motion seconded by: Ms. Koop Item passed unanimously: X Item passed on a divided vote: Item failed unanimously: Follow-up (if necessary): Item failed on a divided vote: Meeting Adjourned: 11 :17 AM Approved By: Ron Natinsky, Chair

5 Memorandum MIT April 15,2011 CITY OF DALLAS TO Members of the Economic Development Committee: Ron Natinsky (Chair), Tennell Atkins (Vice Chair), Jerry R. Allen, Sheffie Kadane, Ann Margolin, Linda Koop, and Steve Salazar SUBJECT Cityplace Area TIF Plan Amendment and Development Projects (Cityville and JLB Tract 6C) Attached is the briefing material on the Cityplace Area TIF Plan Amendment and Development Projects (Cityville and JLB Tract 6C) to be presented to the Economic Development Committee on Monday, April 18, Please contact me if you need additional information. ~.C. Gonzalez \.)'-\. Assistant City Manager C: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins, City Secretary Thomas Perkins, City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Administrative Judge Municipal Court Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Jeanne Chipperfield, Chief Financial Officer Karl Zavitkovsky, Director of Hammond Perot, Assistant Director, Helena Stevens-Thompson, Assistant to the City Manager Dallas - T~, _ do rt better

6 Cityplace Area TIF Plan Amendments and Development Projects (Cityville and JLB Tract 6C) Economic Development Committee April 18,

7 Purpose 1. To provide an update on Cityplace Area TIF District (CPTIF) activity. 2. To present the proposed Cityplace Area TIF Plan Amendment. 3. To present the proposed Cityville project. 4. To present the proposed JLB Tract 6C project. 2

8 Purpose (continued) 5. To obtain Economic Development Committee approval for: a. Amending the CPTIF Project Plan to increase the Total Budget and the Street, Utility, and Intersection Improvements Budget line item by $531,388. b. Execution of a development agreement, on behalf of the CPTIF, with Cityville Dallas Haskell Limited Partnership in an amount not to exceed $813,979. c. Execution of a development agreement, on behalf of the CPTIF, with JLB Cityplace, L.P. in an amount not to exceed $815,

9 CPTIF District Overview: Background The Cityplace Area TIF District was created on November 11, The CPTIF District is located less than one mile north of the Central Business District along Central Expressway between Lemmon Avenue West on the South and Haskell Avenue and Peak Street on the North. The CPTIF District is an attractive master-planned and viable mixed-use community near downtown. Only several undeveloped properties remain. 4

10 CPTIF District Overview: Examples of Development Projects in the CPTIF West Village Retail & Residential 3615 McKinney Avenue The Monterey (Criterion Development) 3930 McKinney Avenue 5

11 CPTIF District Overview: Examples of Development Projects in the CPTIF (continued) Gables West Village 3839 McKinney Avenue The Mondrian at Cityplace 3000 Blackburn Street 6

12 CPTIF District Overview: Examples of Development Projects in the CPTIF (continued) Gables Cityplace West 3636 McKinney Avenue The Bryson at Cityplace 2901 Cityplace West Boulevard 7

13 CPTIF District Overview: District Accomplishments The Cityplace Area TIF District continues as a catalyst for development in the mixed use neighborhood just north of downtown Dallas. West Village serves as the anchor of shopping, entertainment and residential activity. With over 125,000 square feet of retail space and 179 residential units and the Magnolia Theater, West Village provides all the amenities necessary for the growth of surrounding properties. The Mondrian (opened in 2005) has 218 upscale apartments and 25,000 square feet of retail space. Gables West Village (opened in 2006) has residential units, 18,000 square feet of retail) and the Monterey (opened in 2009) with 371 residential units. 8

14 CPTIF District Overview: Budget Status (Current) Projected Increment Revenues to Retire TIF Fund Obligations Category TIF Budget¹ Expended² Allocated² Uncommitted Funds² Central Expressway Bridges $2,585,909 $2,585,909 $0 $0 Street, Utility, Intersection Improvements $21,536,501 $20,230,617 $107,363 $1,198,521 Blackburn Mall $3,500,000 $3,450,000 $50,000 $0 DART $3,500,000 $3,500,000 $0 $0 Extension of McKinney Avenue Trolley $1,000,000 $1,000,000 $0 $0 East Side Retail Entry³ $0 $0 $0 $0 Freedman's Park and Cemetery $50,000 $50,000 $0 $0 Improvement of J. W. Ray Park 4 $0 $0 $0 $0 Improvements for DISD Schools $2,633,806 $1,535,819 $1,097,987 $0 Improvements to Katy Trail³ $0 $0 $0 $0 Improvements to Public Open Spaces $7,026,548 $7,026,548 $0 $0 Administration and Implementation $911,262 $656,617 $254,645 $0 Totals $42,744,026 $40,035,510 $1,509,995 $1,198,521 ¹Budget shown in current dollars; TIF Project Plan shows the budget in net present value. ²Includes all interest accrued as of the end of FY ³Amounts for Improvements to Katy Trail and East Side Retail Entry were included in Street, Utility, and Intersection Improvements 4 Amount for J. W. Ray Park was included in Improvements for DISD. 9

15 Cityplace Area TIF District Plan Amendment 10

16 Plan Amendment Details CPTIF District Plan Under the current budget, the CPTIF has $1,198,521 of uncommitted funds remaining. The District has received two applications and one inquiry for funding totaling $1,729,909, a difference of $531,388. The proposed plan amendments would amend the CPTIF Project Plan and Reinvestment Zone Financing Plan by: -- Increasing the total CPTIF Budget by $531, Increasing the Street, Utility, Intersection Improvements Budget Line Item by $531, Updating Table 2 Budget for Cityplace Area Infrastructure Improvements to reflect these amendments. 11

17 Plan Amendment Details CPTIF District Plan (continued) The budget increase will allow the City to finalize infrastructure improvements on remaining sites: Cityville, 2600 N. Haskell Avenue JLB Tract 6C, 3925 N. Central Expressway 12

18 Plan Amendment Details CPTIF District Plan (continued) In 2008, the District ceased collecting TIF increment as the entire TIF Budget of approximately $42 million had been funded. As a result, the District no longer collects TIF increment. No additional increment collections are required to fund this requested budget increase. Funds are available from interest earnings generated from increment previously collected and bond proceeds. The bonds have been repaid in full, principal and interest. 13

19 Cityville Project (2600 N. Haskell Avenue) 14

20 Cityville: Project Details The proposed Cityville project will be located on the former Loews Theatre site adjacent to Bank of America and north of Target, Ross, and Office Max. 15

21 Cityville: Project Details 104,000 square feet of retail space 356 apartment units $4.2 million investment in parking structures Kroger s Grocery (54,000 s.f.) LA Fitness (50,000 s.f.) TIF financial incentive allows higher level of public amenities. In addition, City will have an agreement with owner to maintain improvements for 20 years. 16

22 Cityville: Project Details -Development Team DEVELOPER: Cityville Dallas Haskell Limited Partnership OWNERS REP: John Allums, Managing Director ARCHITECT: TBD CONSTRUCTION MANAGEMENT: TBD GENERAL CONTRACTOR: TBD 17

23 Cityville: Project Details Public Improvements The project will include public infrastructure investment of approximately $813,979. The public infrastructure improvements include: Installation of street lights, brick pavers, and landscaping (including irrigation system) along North Haskell Avenue from Capitol Avenue to points north Installation of streetlights, roll down curbs/handicap ramps, brick pavers, and landscaping (including irrigation system) along Capitol Avenue and North Peak Street Installation of 8-foot wide brick paver sidewalk, landscaping (including irrigation system) and repair of retaining wall along North Peak Street adjacent to the Alex W. Spence Talented/Gifted Academy (a DISD school). 18

24 Cityville: CPTIF Assistance - TIF Board Approval On March 31, 2011, the Cityplace Area TIF District Board of Directors reviewed and approved TIF Funding for the Cityville project in an amount not to exceed $813,979*. *Note: TIF funding is subject to approval of a plan amendment increasing the Cityplace Area TIF Project Plan Budget. 19

25 Cityville: CPTIF Assistance - Conditions for Funding As a condition for funding, Cityville Dallas Haskell Limited Partnership will be required to: Develop a mixed-used project containing a minimum of 300 residential units and a minimum of 50,000 square feet of retail space. Provide evidence of a minimum private investment of $44,000,000 in private improvements for the Cityville project, including land acquisition costs ($14,000,000) and building construction and soft costs directly related to construction (a minimum of $30,000,000). Construct project improvements that conform in design and materials to elevations, site and landscape plans approved by CPTIF District Board of Directors, (OED) staff and City Council. 20

26 Cityville: CPTIF Assistance - Conditions for Funding (continued) Cityville Dallas Haskell Limited Partnership will adhere to the following deadline dates: Obtain a construction permit for Project improvements or commence funding of Project improvements by December 31, Provide evidence of receipt of a final certificate of occupancy for the entire project by December 31, Obtain a certificate of acceptance issued by the City s Department of Public Works and Transportation for public infrastructure improvements associated with the Project by December 31, Execute an operating and maintenance agreement for all non-standard public improvements installed as a part of the Project by December 31,

27 JLB Tract 6C Project (3925 N. Central Expressway) 22

28 JLB Tract 6C: Project Details The proposed JLB Tract 6C project will be located at the northwest corner of North Central Expressway and Blackburn Street. JLB Tract 6C project will be located adjacent to the Mondrain and the Monterey. 23

29 JLB Tract 6C: Project Details 294 apartments units Two level concrete podium parking deck (one level of parking will be partially below grade) Pedestrian friendly streets with enhanced sidewalks and landscaping TIF financial incentive allows higher level of public amenities. In addition, City will have an agreement with owner to maintain improvements for 20 years. 24

30 JLB Tract 6C: Development Team DEVELOPER: JLB Cityplace, L.P. OWNERS REP: Bay W. Miltenberger, Manager ARCHITECT: Wilson, Garcia, Wilson Architects CONSTRUCTION MANAGEMENT: JLB Builders, LLC GENERAL CONTRACTOR: TBD 25

31 JLB Tract 6C: Project Details Public Improvements The project will include public infrastructure investment of approximately $815,930. The public infrastructure improvements include: Installation of new street paving system, curbs and gutters, trees (including tree grates), streetscaping, and utilities along Blackburn Street between Noble Avenue and North Central Expressway frontage road. Installation of new street paving system, curbs and gutters, trees (including tree grates), streetscaping, utilities, and a retaining wall along Noble Avenue. Utility improvements in connection to the traffic control light and signal box at Blackburn Street and North Central Expressway. Burial of overhead utilities located on the project site. 26

32 JLB Tract 6C: CPTIF Assistance - TIF Board Approval On March 31, 2011, the Cityplace Area TIF District Board of Directors reviewed and approved TIF Funding for the JLB Tract 6C Tract project in an amount not to exceed $815,930*. *Note: TIF funding is subject to approval of a plan amendment increasing the Cityplace TIF Project Plan Budget. 27

33 JLB Tract 6C: CPTIF Assistance - Conditions for Funding As a condition for funding, JLB Cityplace, L.P., will be required to: Develop a residential project containing a minimum of 240 residential units. Provide evidence of a minimum private investment of $30,610,000 in private improvements for the JLB Tract 6C project, including land acquisition costs ($8,400,000) and building construction and soft costs directly related to construction (a minimum of $22,210,000). Construct project improvements that conform in design and materials to elevations, site and landscape plans approved by CPTIF District Board of Directors, (OED) staff and City Council. 28

34 JLB Tract 6C: CPTIF Assistance - Conditions for Funding (continued) JLB Cityplace, L.P. will adhere to the following deadline dates: Obtain a construction permit for Project improvements or commence funding of Project improvements by December 31, Provide evidence of receipt of a final certificate of occupancy for the entire project by December 31, Obtain a certificate of acceptance issued by the City s Department of Public Works and Transportation for public infrastructure improvements associated with the Project by December 31, Execute an operating and maintenance agreement for all nonstandard public improvements installed as a part of the Project by December 31,

35 Recommended Next Steps Economic Development Committee approval of: Amendments to the Cityplace Area TIF Plan to: (1) Increase the Total Plan Budget by $531,388, (2) Increase the Street, Utility, & Intersection Improvement budget line item by $531,388, and (3) update Table 2 of the Plan to reflect these changes. A development agreement, on behalf of the Cityplace Area TIF, with Cityville Dallas Haskell Limited Partnership, in an amount not to exceed $813,979. A development agreement, on behalf of the Cityplace Area TIF, with JLB Cityplace, L.P., in an amount not to exceed $815,930. Council consideration of the recommended plan amendment and TIF assistance on April 27,

36 Appendix A CPTIF Budget (amended) TABLE 2 - BUDGET FOR CITYPLACE AREA INFRASTRUCTURE IMPROVEMENTS PROPOSED PROPOSED NPV Actual $ Category Budget Budget 4/27/2011 4/27/2011 Central Expressway Bridges $ 2,585,909 $ 2,585,909 Street, Utility, Intersection Improvements $7,338,091 $7,523,175 $21,536,501 $22,067,889 Blackburn Mall $ 3,500,000 $ 3,500,000 DART $ 3,500,000 $ 3,500,000 Extension of McKinney Avenue Trolley $ 1,000,000 $ 1,000,000 East Side Retail Entry 1 $ - $ - Freedman's Park and Cemetery $ 50,000 $ 50,000 Improvement of J. W. Ray Park 2 $ - $ - Improvements for DISD Schools $ 2,571,000 $ 2,633,806 Improvements to Katy Trail 1 $ - $ - Improvements to Public Open Spaces $ 1,500,000 $ 7,026,548 Administration and Implementation $ - $ 911,262 TOTAL $20,046,000 $22,230,084 $42,744,026 $42,275,414 1 Amounts for Improvements to Katy Trail and East Side Retail Entry were included in Steet, Utility, and Intersection Improvments. 2 Amounts for J.W. Ray Park were included in Improvements for DISD. Updated: April, 27,

37 Appendix B Cityville Dallas Haskell LP: Pro forma Information/Project Requirements/Other Minimum # of residential units required Retail square footage required 300 units 50,000 s.f. Required private investment site acquisition, hard and soft costs $44,000,000 Expected total project cost $63,675,011 TIF funding requested* $813,979 % of TIF funds requested to expected total project cost 1.28% Developer s Fee $1,845,062 or 2.90% of total costs Return on investment without TIF funds** 9.60% Return on investment with TIF funds** 9.72% Deadline to obtain building permit December 31, 2011 Deadline to obtain Final CO December 31, 2013 *TIF Funding contingent on City Council approval of a Plan Amendment increasing the District s Budget. ** Rate of Return calculations are for Stabilized Year

38 Appendix C Cityville Dallas Haskell Limited Partnership: Sources and Uses of Funds SOURCES USES $40,689,671 Construction Loan $37,273,215 Hard Costs $813,979 TIF Funding $11,503,695 Soft Costs $22,001,361 Equity $11,503,695 Public Improvement Costs $63,675,011 Total Project Cost $14,084,122 Property Acquisition $63,675,011 Total Project Cost 33

39 Appendix C JLB Cityplace, L.P.: Pro forma Information/Project Requirements/Other Minimum # of residential units required 240 units Required private investment site acquisition, hard and soft costs $36,610,000 Expected total project cost $43,560,000 TIF funding requested* $815,930 % of TIF funds requested to expected total project cost 1.87% Developer s Fee $1,306,800 or 3% of total costs Return on investment without TIF funds 9.46% Return on investment with TIF funds 10.00% Deadline to obtain building permit December 31, 2011 Deadline to obtain Final CO December 31, 2013 *TIF Funding continent on City Council approval of a Plan Amendment increasing the District s Budget. ** Rate of Return calculations are for Stabilized Year

40 Appendix D JLB Cityplace, L.P.: Sources and Uses of Funds SOURCES USES $28,3214,000 Construction Loan $27,741,773 Hard Costs $815,930 TIF Funding $6,534,187 Soft Costs $14,430,070 Equity $815,930 Public Improvement Costs $43,560,000 Total Project Cost $8,064,110 Property Acquisition $43,560,000 Total Project Cost 35

41 Appendix E CPTIF Projects Project Target Store Office Max Cityplace Market Gables at Turtle Creek Bryson at Cityplace Mondrian at Cityplace Gables West Village Gables Cityplace West Monterey (Criterion Development) Blackburn Median Improvement Cityplace Infrastructure Improvement Project Taco Bell Location 2417 N. Haskell Avenue 2415 N. Haskell Avenue Cityplace Area TIF District Projects Projects Within TIF District Utilizing TIF Funding Calendar Year Complete Status Units/ SF 2 Approx. Value 3 TIF Investment Complete 116,480 SF Retail $7,423,890 $676,000* Complete 92,426 SF Retail $8,537,010 $258, Cole Avenue 1995 Complete 232 Units $27,000,000 $760, W. Cityplace Boulevard 3000 Blackburn Street 3839 McKinney Avenue 3636 McKinney Avenue 3930 McKinney Avenue Blackburn Street from Noble Avenue to Cole Avenue District Wide N. Washington Avenue 2003 Complete 232 Units $27,273,840 $960, Complete 2006 Complete 2006 Complete 2009 Complete 218 Units 25K SF Retail 75 Units 18K SF Retail 103 Units 29K SF Retail 371 Units 500 parking spaces $40,000,000 $1,800,000 $12,195,000 $554,999 $20,049,480 $450,000 $51,400,000 $684, Complete NA $113,000 $50,000 Under Construction NA $12,000,000 $12,000, Complete 2,210 SF Retail $729,800 $0 36

42 Appendix E CPTIF Projects (continued) Project Treymore at Cityplace Private Mini Storage Location 2101 N. Haskell Avenue 2320 N. Central Expressway Projects Within TIF District Not Utilizing TIF Funding Calendar Year Status Units/ SF Approx. Value TIF Investment Complete 1996 Complete 180 Units $4,500,000 $ Complete 90,215 SF Comm. $4,455,490 $0 Treymore North 414 Office Parkway 1997 Complete 70 Units $2,038,310 $0 Exxon Shurgard Storage and Whataburger Bank of America Porto Belo by the Creek The Park at Turtle Creek AMLI at Cityplace City Gates West Village Mixed Use Drexel Grand 2503 Lemmon Avenue 2420 N. Haskell Avenue 2428 N. Haskell Avenue 2500 N. Haskell Avenue 3301 Blackburn Street 3377 Blackburn Street 2403 N. Washington Avenue 418 Office Parkway 3699 McKinney Avenue 3303 Blackburn Street 1998 Complete 3,978 SF Retail $1,558,750 $ Complete 121,707 SF Retail/Comm. $4,538,850 $ Complete 2,422 SF Retail $940,000 $ Complete 3,500 SF Comm. $1,859,200 $ Complete 31 Units $10,554,538 $ Complete 308 Units $40,000,000 $ Complete 244 Units $19,611,880 $ Complete 32 Units $4,127,150 $ Complete 179 Units 125K SF Retail $55,075,910 $ Complete 28 Units $9,254,790 $0 37

43 Appendix E CPTIF Projects (continued) Project Perry Homes Town Homes Cascada Town Homes Borders Books/Chase Bank Valencia Town Homes Lowes Theater Hank Haney Golf Center Cityville JLB Tract 6C Location Calendar Year Complete Status Units/ SF Approx. Value TIF Investment S. Haskell & 2002 Complete 31 Units $6,000,000 $0 23 Blackburn Street 2003 Complete 22 Units $15,102,140 $ McKinney Avenue 2004 Complete 26,500 SF Retail/Comm. $5,300,000 $0 Blackburn Street and 2007 Complete 56 Units $21,032,231 $0 Cole Avenue Less Property Demolished, or Relocated for Redevelopment 2600 N. Haskell 1996 Demolished (210,060 SF Retail) ($7,977,000) $0 Avenue 3636 McKinney Avenue 2600 N. Haskell Avenue 3925 N. Central Expressway 1993 Relocated N/A ($6,068,280) $0 Projects Awaiting City Council Approval for TIF Funding 2013 Planned 356 Units 68K SF Retail $60,000,000 $813, Planned 294 Units $50,000,000 $815,930 Total All Projects Utilizing and Not Utilizing TIF Funding 3,062 Units Total 763,438 SF Retail/Comm. $508,625,979 $19,147,

44 Memorandum DATE April 15,2011 CITY OF DALLAS TO SUBJECT Members of the Economic Development Committee: Ron Natinsky (Chair), Tennell Atkins (Vice-Chair), Jerry R. Allen, Sheffie Kadane, Linda Koop, Ann Margolin, Steve Salazar Danieldale Distribution Facility Project On Monday, April 18, 2011 Economic Development Meeting, you will be briefed on the Danieldale Distribution Facility Project. A copy of the briefing is attached. Should you have any questions, please contact me at (214) ~~m A '.C. "GOnZale~~ Assistant City Manager C: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins, City Secretary Tom Perkins, City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Administrative Judge MuniCipal Court Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Jeanne Chipperfield, Chief Financial Officer Karl Zavitkovsky, Director, Hammond Perot, Assistant Director, Helena Stevens-Thompson, Assistant to the City Manager Dallas Together- we do it better

45 Danieldale Distribution Facility Project Economic Development Committee April 18, 2011 dallas-ecodev.org

46 Introduction Discuss a new distribution facility for The Home Depot USA, Inc. (Home Depot) in Southern Dallas Present proposed City of Dallas economic incentives for the project dallas-ecodev.org 2

47 Background The Home Depot, Inc. World s largest home improvement chain and second largest US retail chain; Operates about 2,200 stores across North America, Puerto Rico and China; Approximately 321,000 employees worldwide. Has seven retail locations in the city and a 530,000 s.f. distribution facility on Beckleymeade Avenue in Southern Dallas dallas-ecodev.org 3

48 Project Description Expand a vacant 887,000 s.f. facility built by Trammell Crow in 2008 by 287,000 s.f. (1,174,000 s.f total) to house a new distribution facility for Home Depot Reconstruct Danieldale Road between Hampton Road and Polk Street to facilitate access to the project from the south Construct three lanes from Hampton Road to the east approximately 2,850 ft and two lanes the remaining 2,400 ft east to Polk Street Site: 74 acres at 2320 Beckleymeade adjacent to an existing Home Depot distribution facility Company also considered other sites in Texas 4

49 PROJECT SITE

50 Project Description Project Estimates Building, Site and Tenant Improvements - $15 million+ Business Personal Property and Inventory - $70-$80 million Approximately $4.1million for Danieldale Road improvements Employment required 75 within 12 months of substantial completion (estimated up to 250 over 5-years) 6

51 Proposed Incentives 10-year 75 percent Business Personal Property Tax Abatement for Home Depot Estimated forgone City revenue: $4,184,250 $2,475,000 Chapter 380 Economic Development Grant to Trammell Crow Company affiliate (PR Crow I-20 II, LLP) from 2006 Bond Funds (Proposition 8) for road and site infrastructure City will terminate a previously approved City agreement related to the existing facility that included a 90 percent real property tax abatement and infrastructure participation of $442,000 (no costs have been incurred by the City at this time) Estimated 10-year economic impact from the project is $206 million. Net fiscal impacts are as follows: 10-years: $1,102, years: $9,716,728 A summary of estimated fiscal impacts is attached dallas-ecodev.org 7

52 Proposed Incentives Project Partners The project has received valuable commitments from other entities toward the $4.1M Danieldale Road improvements: $1.3M in matching funds from Dallas County $300,000 from Desoto Economic Development Corporation $500,000 from private landowners in Desoto Note: This section of Danieldale Road is entirely within the City of Dallas but is adjacent to and services property within the city of Desoto. 8

53 Proposed Terms Minimum of $10M in Real Property Improvements Minimum of 75 full time jobs within 12 months of substantial completion Trammell Crow to deliver an improved Danieldale Rd. between Hampton Rd and Polk St. to City s thoroughfare standards City of Dallas participation is subject to finalizing funding agreements with other entities dallas-ecodev.org 9

54 Recommendation Staff recommends approval of the proposed $2,475,000 economic development grant to Trammell Crow and a ten-year 75 percent business personal property tax abatement for Home Depot. dallas-ecodev.org 10

55 Next Steps On April 27, 2011, City Council will consider authorizing a public hearing for the purpose of creating Reinvestment Zone 76 (required by Chapter 312 of the Texas Tax Code) to be held on May 25, On April 27, 2011, City Council will consider authorizing a) the described Chapter 380 Economic Development Grant, b) Project Supplemental Agreement to the Master Interlocal Agreement with Dallas County for the construction of Danieldale Road and c) Participation Agreement with Trammell Crow for the construction of traffic signals on Danieldale Road. dallas-ecodev.org 11

56 Questions? dallas-ecodev.org 12

57 Attachment: Fiscal Impact City of Dallas General Fund Fiscal Impact 10-Year 20-Year Total City GF Revenue Generated $ 10.21M $ Total City GF Service Costs $2.45M $5.21M Net Impact Before Incentives $7.76M $16.38M City Incentives $6.66M $6.66M Net City Fiscal Impact $1.10M $9.72M dallas-ecodev.org 13

58 Memorandum DATE April 15, 2011 CITY OF DAllAS TO SUBJECT Members of the Economic Development Committee: Ron Natinsky (Chair), Tennell Atkins (Vice-Chair), Jerry R. Allen, Sheffie Kadane, Linda Koop, Ann Margolin, Steve Salazar Lakewest Senior Assisted Living On Monday, April 18, 2011 Economic Development Meeting, you will be briefed on the lakewest Senior Assisted Living. A copy of the briefing is attached. Should you have any questions, please contact me at (214) ~QQQ]l Assistant City Manager C: The Honorable Mayor and Members of the City Council Mary K Suhm, City Manager Deborah Watkins, City Secretary Tom Perkins, City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Administrative Judge Municipal Court Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Jeanne Chipperfield, Chief Financial Officer Karl Zavitkovsky, Director, Hammond Perot, Assistant Director, Helena Stevens-Thompson, Assistant to the City Manager Dallas Together - we do it better

59 Lakewest Senior Assisted Living Economic Development Committee April 18, 2011 dallas-ecodev.org

60 Introduction Discuss new low income assisted senior living facility in West Dallas Present proposed City of Dallas bridge loan for the project dallas-ecodev.org 2

61 Background Stonegate Company is a senior housing and healthcare company that operates 32 senior care properties in Texas, Oklahoma, and Missouri that have resident capacity of more than 4000 residents employees across their facilities Headquarters Lewisville, TX Founded-2001 Approximately 35 employees at HQ dallas-ecodev.org 3

62 Background Company has been negotiating with the City of Dallas Regional Center (CDRC) to open 4 Low Income Senior Assisted Living Facilities in Dallas. It has secured financing in the amount of $15 million through the EB-5 visa program. Due to timelines established by the US Citizenship and Immigration Service, it takes about 9-12 months for the CDRC to close on the financing thus creating a significant delay in the project, if no bridge financing is provided. City Council is being asked to authorize a $1,500,000 loan that will serve as a bridge until the CDRC financing closes dallas-ecodev.org 4

63 Project Description Stonegate (Lakewest) wants to build the first of four Low Income Senior Assisted Living Facility in West Dallas. Project Site Name: Lakewest Address: 2696 Bickers Facility will have 65-apartment units, each with two bedrooms and one bath with a living/dining room kitchen Approximately 71,000 square feet (45,500 net rentable space 5

64 Project Description 6

65 Project Description This facility will complete an existing senior healthcare campus in West Dallas. The campus currently includes 360 units of independent senior apartments and a 118 bed skilled nursing facility. The total private investment by Stonegate (Lakewest) will be approximately $9,400,000, excluding land. In addition, Stonegate plans to build 3 additional facilities throughout the city bringing the total investment to $37,600,000 and 300 jobs dallas-ecodev.org 7

66 The Village at Lakewest Campus

67 Project Description Stonegate (Lakewest) has secured financing from the CDRC but due to timelines established by the US Citizenship and Immigration Service, it takes about 9-12 months to close on the financing. The project is in need of bridge financing to avoid a lengthy delay and complete the facility by June dallas-ecodev.org 9

68 Proposed Loan Terms Proposed Terms 1) Interest only at 6.5% for 12 months; 2) Borrower will make quarterly payments; 3) No prepayment penalties or changes in the interest rate for pre-payments; 4) In the event that Stonegate (Lakewest) is late on a payment, they will have a cure period of 5 days; 5) In the event Stonegate (Lakewest) does not make its quarterly payment within the cure period, they will be declared in default and the interest rate would increase to 13%; 6) If in default, City has Corporate Guaranty, CEO Guaranty and Assignment of CDRC commitments to repay. dallas-ecodev.org 10

69 Benefits Development of Lakewest facility can begin sooner, benefiting West Dallas Bridge financing will provide the City an opportunity to earn market rate return on its capital with very low risk Guarantors of the bridge loan will have a net worth of approximately $15mm Economic Development receives $187,500 in loan origination fees Economic Development receives up to $97,500 in interest Provide the last piece of capital to unlock a larger $15M source of financing and $37.6M in total development. dallas-ecodev.org 11

70 Recommendation Staff recommends approval of the proposed $1,500,000 economic development loan. dallas-ecodev.org 12

71 Next Steps On April 27, 2011, City Council will consider authorizing bridge loan in the amount of $1,500,000M dallas-ecodev.org 13

72 Questions? dallas-ecodev.org 12

73 Memorandum DATE April 15, 2011 CITY OF DALLAS TO SlJBJECT Members of the Economic Development Committee: Ron Natinsky (Chair), Tennell Atkins (Vice Chair), Dwaine Caraway, Sheffie Kadane, Linda Koop, Ann Margolin and Steve Salazar Digital Billboard Code Amendment Update On April 4, 2011 the Committee was briefed on the status of the proposed digital billboard code amendment. At that time, the committee asked for additional information including maps showing the locations of existing billboards. Staff has not completed compilation of the requested maps. Staff continues to meet with all interested parties on the proposed code amendment and will return to the committee in May with additional information. C~tt;;;Z)Lb1=ritiOnal information. 14A. C. Gonzalez \J Assistant City Manager C: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Ryan S. Evans, First Assistant City Manager Deborah Watkins, City Secretary Tom Perkins, City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Administrative Judge Municipal Court Forest Turner, Assistant City Manager Jill A. Jordan P.E., Assistant City Manager Jean Chipperfield, Chief Financial Officer Theresa O'Donnell, Director of Development Services Helena Stevens-Thompson, Assistant to the City Manager Dallas. The City fhat Works: Diverse. Vibrant and ProgresSive"

74 Memorandum CITY OF DALLAS DATE April 15, 2011 TO SUBJECT Members of the Economic Development Committee: Ron Natinsky (Chair), Tennell Atkins (Vice-Chair), Jerry R. Allen, Sheffie Kadane, Linda Koop, Ann Margolin, and Steve Salazar Amendment to the By-Laws for the Skillman Corridor TtF District, April 27, 2011 Council Agenda Background The City established Tax Increment Financing Reinvestment Zone Number Fourteen (Skillman Corridor TIF District), and established a Board of Directors for the District to promote development and redevelopment in the District pursuant to Ordinance No approved by the City Council on October 26, 2005, in accordance with the Tax Increment Financing Act, Chapter 311 of the Texas Property Tax Code, V.T.C.A. (the "Act"). On February 25, 2011, the Skillman Corridor TIF Board recommended modifications to the By-Laws including a position on the Design Review Committee for a representative of the Lake Highlands Public Improvement District (LHPID) and any additional public improvement districts that may be established within the TIF District boundary in the future. The LHPID had not been established when the TIF District By-Laws were first approved on May 24,2006. In addition, the Dallas County Community College District (DCCCD) waived its right to an appointment on the Skillman Corridor TIF District Board of Directors as evidenced by written notice in October To maintain a ten member Board of Directors, the number of City of Dallas appointments was increased from five to six. The TIF District By-Laws spell out the powers and duties of the Board of Directors. The Skillman Corridor TIF District Board of Directors are responsible for advising on development or redevelopment in the Skillman Corridor TIF District boundaries in order to implement the purposes for which the Skillman Corridor TIF District was formed and set forth in the ordinance creating the District. Implementation of the Project Plan for the District shall be managed and controlled by the City Council based on the recommendations of the Board of Directors of the District. FinanCing No cost consideration to the City.

75 Skillman Corridor TIF District By-Law Amendment April 15, 2011 Page 2 of 2 Recommendation Staff recommends City Council approval of the item. Should ou have any questions, please contact me at (214) C: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins, City Secretary Thomas Perkins, Jr., City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Administrative Judge Municipal Court Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Jeanne Chipperfield, Chief Financial Officer Karl Zavitkovsky, Director of Hammond Perot, Assistant Director, Helena Stevens-Thompson, Assistant to the City Manager Dallas-Together, we do it better

76 'E7 ' r FOREST " 'I l, r ' /1,,/, 'I -I /, i \ \ \,'.. ~,! 1 ) <- Skillman Corridor TIF District Map is for descriptive purposes only. Please confirm the status of individual parcels by contacting the Office of Economic Development. III Existing DART Station Future Station -+--t DART Blue Line c:j TIF Perimeter Boundary Properties & right-ot-way inside TIF CITY OF CAUAS April 2009

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