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Dallas City Council + PFC
12/14/24 | Santa Fe Trail at Haskell | 240-Unit Mixed-use PFC
Welcome to Ultraground. You look under the underwriting here.
February 14, 2024, November 7-8, 2023, October 11,2023
District: 7
240-Unit PFC + Rezoning | 4000 Ash Ln | Approved
You saved: 3h 28m (PFC 1h 48m, CC 1h 40m)
DISTRICT: 7
620 S Hill Ave/4000 Ash Ln
Santa Fe Trail at Haskell 4000 Ash Ln
Expo Park | 2.69 Acres | 240 Units | Approved
City Council PFC Purchase 2/14/24
City Council Rezoning 11/8/23
PFC Board 11/7/23
City Council PFC Purchase 2/14/24
Pushing 20 months in the entitlements process, Larkspur Capital’s 240-unit PFC product was approved at the Valentine’s Day City Council meeting. This approval was for the Dallas Public Facility Corporation (DPFC) purchase of the land since they are the owner.
A Public Facility Corporation (PFC) is an entity created by the City of Dallas to deliver affordable housing through public-private partnerships.
Incentives:
PFC Gets: Annual rent payment starting ($341K for Larkspur’s PFC), + other fees ($250K+).
Developer Gets: Property tax exemption for 75-year lease + construction materials tax exemption + Developer fee (4% here) + majority of sales/refi proceeds after costs/returns paid.
The City Gets: 50% of the units as income-restricted affordable housing + investment of PFC fees in other affordable housing projects.
Council Members disagreed over the fiscal trade-offs, whether this project serves Dallas's greatest housing needs, and whether it will catalyze community redevelopment.
Let’s break down the discussion.
District 1 Council Member Chad West emphasized that this PFC would be built on vacant land that is currently generating minimal tax revenue. He asked the PFC manager:
‟So we are basically activating a vacant piece of land and we're putting housing on it, correct?
The Manager confirmed this. West also asked specific questions about the number of units - 240 total, with 120 being income-restricted affordable units. He argued The City must subsidize developers to get any affordable housing built.
‟Are developers building these affordable units for free - are they doing it out of the kindness of their heart?
No, absolutely not.
So if we don't subsidize them in some way, we're not gonna get affordable units in The City, correct?
This was also confirmed. In opposition, Council Member Mendelsohn focused on the long-term (75-year) tax abatement and the lost revenue to the General Fund. She stated this project is “fiscally irresponsible.” Mendelsohn’s stance:
‟Only 10% of them will be at the 60% area median income or less. We know that that is where our actual need is for housing.
Mendelsohn repeatedly asked if the fees paid to the PFC can be used for core city services like streets, libraries, and public safety. The answer was no - the fees stay within the Housing Department budget. Majed Al-Ghafry, an Assistant City Manager, stepped in at one point to clarify that PFC fees can be used for infrastructure related to that specific housing project, but not infrastructure beyond the project's property line.
Mendelsohn concluded with a warning.
‟You need to remember every single time you have voted for 75 years to give up these ad valorem taxes...I just think it’s fiscally irresponsible to not even have a limit on how many of these we’'ll do when we’re not creating the kind of housing that we actually need.
PFC Board Meeting 11/7/23
Carl Anderson of Larkspur Capital presented the 240-unit mixed-income mid-rise apartment project located at the intersection of Haskell Ave and Parry Ave in the Expo Park District. The project received overall positive feedback from the PFC Board.
The developer highlighted the project’s 450 feet of frontage along the Santa Fe Trail, adjacent to a new trailhead being built. He noted the current tax base is only $24,000 versus the $300,000 in PFC rent, a 12.3X increase. The site is currently old warehouses and industrial buildings, zoned IR.
The developer explained the zoning change from IR to PD based on WMU-5 after holding 5 neighborhood meetings and receiving zero opposition. However, Board member Victor Toledo asked specifically if they had shared the affordability levels with groups since they had only presented 10% affordable originally.
‟This isn’t a trap question, I just wanted to ask, did you share with them the subsidy levels and what the AMIs would be?
Anderson acknowledged after feedback they increased to 20% affordable but knew the PFC structure would likely get more units built. The zoning allows a density bonus to go up to 8 stories even though their plan is for a 5-story podium.
Board member Ronald Stinson asked about potential environmental issues from prior industrial uses. Anderson explained the site was accepted into the state Voluntary Cleanup Program to address minor groundwater contamination from a dry cleaning release on a nearby site. He said they would follow any recommendations.
The project received praise from Toledo, saying it was a “perfect case study for a PFC” because of its urban, trail engagement, and walkability. It was passed unanimously.
Anderson provided more details on the lengthy rezoning process, including initial delays in getting a planner assigned, having the council district boundaries change right before going to the Plan Commission, and having to hold an additional neighborhood meeting at the request of the new District 7 Commissioner.
‟This is probably month 16 of this rezone. It should probably go faster than that.
City Council 11/8/23
The case was deferred twice by City Council before opening public hearings - first on August 9, 2023 and again on October 11, 2023. When it came before Council for the final vote on November 8, 2023, the staff recommendation was approval subject to the same conditions and Frontage and Open Space Exhibit that were originally recommended by CPC on May 4, 2023.
City Council 10/11/23
Larkspur Capital’s 620 S Hill Ave, a 2.69-acre WMU mixed-use, was deferred by District 7 Council Member Adam Bazaldua with hopes to see a PFC in his district.
‟I've also been working with the group hoping that this project will be coming back with some excitement to pass as a PFC deal.
This was a deal that first came up in front of us as a 10% affordability. And they've been more than willing to work with the community on the feedback that we've heard about maintaining more affordability in the area.
And this is going to be a great addition to South Dallas.
The project proposes a Planned Development District to allow multifamily and ground floor retail uses on a site zoned IR Industrial/Research.
It received positive recommendations from City Staff with a 13-1 vote in favor from the City Plan Commission.
The only one in opposition at the CPC meeting was recently appointed Commissioner Tabitha Wheeler-Reagan.
Developer: Larkspur Capital, Carl Anderson LinkedIn
Case Report: Z212-287(MP)
Memorandum of Understanding (MOU): Santa Fe Trail at Haskell MOU
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