Dallas City Council

08/09/23

August 09, 2023

Welcome to Ultraground. We find the harmony between zoning meetings.

District 1

279-Unit PFC Project | Approved
26-Unit Multifamily: Short Term Rentals By Right? | Approved

District 2

1.85-Acre Mixed Use | Approved

District 7

0.18-Acre Multifamily | Approved

District 8

4-Unit Multifamily | Approved

New Section | PFC Pipeline : Dallas Public Facility Corporation meeting summaries, project tracking, analysis, developer info, and more.

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DISTRICT: 1

Bishop Ridge

North Oak Cliff | 279 Units / 113 Affordable | Approved

In the heart of North Oak Cliff, Savoy Equity Partners is set to deliver 279 units with a structure you have probably heard little about: the Dallas Public Facility Corporation (PFC).

Savoy’s use of the PFC sets Bishop Ridge apart from other District 1 multifamily projects. Half of the 279 units will be market rate, while the other half will be affordable units at 60% and 80% of the Area Median Income (AMI) levels. But that’s not what makes it interesting.

This partnership means that the city retains land ownership, granting a 75-year lease to Savoy Equity. With this framework, the PFC purchases the land, ensuring public ownership and long-term oversight, then leases it back to the developer.

This lease, valid for 75 years, mandates that 50% of the units be kept at designated AMI levels, ensuring affordable units for the long haul. This arrangement allows the developers to enjoy tax exemptions, bringing to fruition the combined goals of affordability and city oversight.

Here are some of the specific financial incentives and tax exemptions you receive if you develop through the Public Facility Corporation (PFC) structure:

Sales tax exemption - The PFC ownership exempts the project from paying sales tax on construction materials and other applicable purchases.
Property tax exemption - The PFC ownership exempts the project from paying property taxes. Over the 75 year lease this amounts to an estimated $470,861 in forgone property tax revenue to the City's General Fund.
Tax-exempt bond financing - The PFC has the ability to issue tax-exempt bonds which can provide lower-cost financing to the developer.
Tax credits - The PFC ownership makes the project eligible for the Non-Profit Set-Aside for Low Income Housing Tax Credits from the Texas Department of Housing and Community Affairs. These tax credits provide equity financing for affordable housing projects.

Council Member Chad West backed Savoy’s Bishop Ridge, emphasizing its timely response to the affordability crisis facing the district as property values escalate.

"We're seeing pricing. A lot of people are getting priced out of the North Oak Cliff area and this is going to be an opportunity for long term affordable housing with this project.

Developer: Savoy Equity Partners, Seth Bame LinkedIn, Barrett Linburg LinkedIn Twitter

Resolution

Answering:

Who else is developing PFC projects? What kind of pushback are they getting from the DPFC board? From the neighborhood? Where are they in the process?

http://www.dal.ultraground.com/p/pfc-pipeline

What you see on this page:

Where in Dallas are the most PFC projects? Where are they being approved and denied?

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DISTRICT: 1

409 Sunset Ave Z212-321(JM)

Bishop Arts District | 0.44 Acres | 26 Units | Approved

The recent citywide ordinance prohibited short term rentals in all but a few zoning districts. However, Council Member Chad West surveyed neighborhood stakeholders and found residents wanted short term rentals allowed specifically for Bishop Arts to support tourism and small business activity.

The project involves a new apartment complex in Bishop Arts. Some community members expressed concerns about adding another apartment complex, though multifamily is an allowed use by right in the PD.

West said the Planning Commission worked to make the project more neighborhood-friendly. He praised the design and pedestrian-friendly features.

West's amendments focused on allowing short term rentals, prohibiting use as a surface parking lot, requiring setbacks and wider sidewalks, and eliminating parking requirements if affordable housing is included.

The Council approved the project with West's amendments. This demonstrated the Council's willingness to get community support by working with developers on design and uses.

West indicated the Council intends to hold the developer accountable to the zoning agreements.

"If they flip the property tomorrow, then whoever buys it will be subject to this.

No one spoke against the project in person at the public hearing.

Developer: Jeff Bosse, LinkedIn

Attorney: Baldwin Associates, Rob Baldwin [email protected]

Case Report

DISTRICT: 7

1822 Sanger Ave Z223-160(MP)

Cedars | 0.18 Acres | Approved on Consent

Owner: William Harris

Case Report

DISTRICT: 8

451 N Jim Miller Rd Z212-280(JM)

Elam | 0.31 Acres | 4 Units | Approved

The City Planning Commission had recommended denial without prejudice of the MF-1(A) zoning request.

Mr. Hamed spoke at the public hearing and volunteered deed restrictions to limit density to 4 units, require all units be attached, and restrict height to 2 stories.

The City Council approved the MF-1(A) zoning based on the volunteered deed restrictions.

No negative feedback or pushback was evidenced in the public hearing.