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Dallas City Council
10/23/24
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CC October 23, 2024
District: 1 | Oak Farms
358-Unit PFC Multifamily | 909 E Colorado Blvd | Approved
District: 7 | Southeast Dallas
364-Unit LIHTC Multifamily | 2770 Bethurum Ave | Approved
District: 6 | West Dallas
300-Unit SFR | 5500 Wilson St | Approved
District: 14 | Uptown
360’ Multifamily Tower | 3230 N Hall St | Approved
District: 11 | Far North Dallas
984-Unit Mixed-use | SEC of Preston Rd & Belt Line Rd | Postponed
You saved: 8h 59m
DISTRICT: 1
Oakhouse at Colorado Phase II 909 E Colorado Blvd
Oak Farms | 3.2 Acres | 358 Units | Approved
Katy Slade and Mintwood overcame opposition focused mainly on the broader Public Facility Corporation (PFC) tool, rather than on their specific 358-unit deal itself. The PFC tool grants the deal 75-year tax abatement in exchange for providing 50% of the total units as affordable. Council Member Cara Mendelsohn argued that the estimated in forgone tax revenue ($157.6 million) would not be worth the 36 affordable units at 60% AMI and 144 units at 80% AMI. She also emphasized the strain on city services:
‟They're going to need ambulances, police, libraries, park upkeep, rec centers, streets, all of those things that cost us real dollars. And we won't have revenue to support all of those residents.
District 4’s Council Member Carolyn King Arnold raised concerns about building longevity and transparency, noting "most buildings are not going to last 75 years without some type of investment."
The $100 million investment will create 358 units: 178 market-rate, 144 at 80% AMI, and 36 at 60% AMI. Monthly rents will range from $1,240 for 60% AMI units to approximately $1,800 for market rate, with 80% AMI units at $1,654 - representing about $200 in monthly savings.
The financial structure includes a $250,000 closing fee to DPFC, 25% of sales and property tax savings (property tax portion starting year 4), and graduated ground lease payments starting at $362,000 annually for years 1-3, increasing to $450,000 in years 4-5.
Term | Oakhouse Phase II MOU 8/27/24 |
|---|---|
PFC Structuring Fee | $250,000 |
PFC Management/Administrative Fee | 2.5-4% |
Contractor Fee | 5% |
Initial Annual Lease Payment | $362,000 Years 1-3, $450,000 Years 4-5 |
Lease Escalator | 3% annual increase starting from Year 6 |
Commission on First Sale | 15% of net after 10% preferred return |
Future Sale Commission | 2% |
Other Notable Terms | PFC receives 25% of sales tax savings on construction materials. |
However, supporters countered these concerns with broader economic and social benefits. Council Member Ridley reframed the revenue discussion, noting the foregone taxes represent theoretical revenue from development that wouldn't occur without the incentive.
Council Member Schultz offered particularly strong support, acknowledging that surrounding suburbs like Plano and Richardson are "actually closing schools because the price of housing has become so unaffordable."
‟The taxes that are foregone nowhere near touch the overall money that the city is going to be able to get from this, both in annual fees as well as any potential sale.
Schultz commended Slade’s shift towards affordability.
‟I remember when you first started coming in with absolutely non-affordable projects, some of them in Uptown. And now to see where you've come, I want to congratulate you as well for really moving in this area.
District 1 Council Member West praised the quality of Phase I and highlighted environmental benefits, noting a six-minute bike ride to City Hall.
‟It is a beautiful Class A apartments, nicer than any apartment I've ever lived in for sure, and to see that type of work product done for people of all income levels is inspiring.
The location sparked particular support, with Council Member Narvaez emphasizing its transit accessibility:
‟ This is the perfect place to put it because if people are needing a little bit of help, they may be needing mass transit.
The project ultimately won approval from the PFC Board and City Council, with supporters emphasizing its role in addressing regional housing affordability challenges. Council Member West concluded by requesting future master planning consideration for the broader Oak Farms area to ensure comprehensive development beyond just residential.
DPFC 8/27/24
DPFC Acquisition | Approved
The Dallas Public Facility Corporation Board unanimously approved Oakhouse Phase II despite concern about the concentration of PFCs in District 1. Ken Montgomery, Director of District 9, acknowledged the catalytic impact of Phase I and the proven quality of the product, but more broadly linked PFCs to increased criminal activity:
‟One of the challenges that we had is there's a disproportionate number of 311 and 911 calls. And it's not just your site, on other PFC sites, there's a reason for that. A lot of it is because we're in catalyst areas. Oakhouse is a prime example. It's not the development, it's just activity around it. We just want to have a way to be beyond reproach when it comes to monitoring.
Montgomery was also concerned about the concentration of PFCs in District 1.
‟Here's my concern - in District 1 we've got now four... and this would be a fifth... my concern is that there are four in District 1 now.
The deal at 909 E. Colorado Boulevard consists of 358 units with an affordability mix of 40% at 80% AMI and 10% at 60% AMI. Total development cost approaches $100 million. The financial structure includes a $250,000 closing fee to DPFC, with the corporation receiving 25% of both sales and property tax savings, though the property tax portion doesn't begin until year four.
Ground lease payments reflect consideration for environmental challenges - the site requires significant concrete removal from a buried minor league baseball stadium. As Jim Plummer explained the City of Dallas demolished the stadium because it was principally concrete and then simply buried it. Mintwood will have to remove the construction debris. To offset these costs, ground lease payments start at $362,000 annually for years 1-3 (reduced from approximately $400,000), increasing to $450,000 in years 4-5. DPFC also receives 15% of net proceeds after a 10% preferred return, plus 2% on subsequent sales.
The development team reports strong performance from Phase I across the street, which at 219 units is notably smaller than Phase II. Phase I is currently receiving TCOs by floor with the first two floors complete and approximately 20-25% leased. The developer noted success in reaching their target demographic of teachers, firefighters, police officers, and nurses.
The project includes specific design accommodations requested by Council Member West, including 15-foot ground floor ceiling heights to allow future retail conversion possibility, though no formal commitment to conversion was required. Market analysis revealed smaller differentials between market rate and 80% AMI rents compared to other Dallas areas, leading to what Jim Plummer characterized as "a 63% instead of maybe a 70% return."
The site's location offers strategic advantages with Trinity River adjacency, downtown Dallas views, and I-35 access. The surrounding area continues to evolve, with Related Companies marketing approximately six acres between the site and a planned pump station. The current site generates only $40,000 in annual property taxes, indicating significant potential for value creation through development.
You saved: 1h 26m
Developer: Mintwood, Katy Slade Email: [email protected] LinkedIn
Owner: Cienda Partners, Barry Hancock Phone: (214) 269-1620 Email: [email protected] LinkedIn, Investar Financial Alberto Martin Phone: (972) 518-0000
Case Report: Oakhouse at Colorado Phase II SR
Project Plans: Oakhouse at Colorado Phase II Plan
On the sentiment that multifamily equals more crime, a recent deal in neighboring Rockwall, TX approached this issue head-on. Rockwall’s City Council brought in Police Chief Ed Fowler to provide crime statistics.
A DFW All-In Sample
Rockwall Heights NWC of FM 3549 & I-30
Northeast Rockwall | 67.48 Acres | 485 Units | 115 TH | Approved
City Council 10/7/24
C → PD | Approved
Rockwall Heights won with a 4-3 vote in favor. Mayor Trace Johannesen and Council Member Sedric Thomas supported the project, citing economic benefits and the need for diverse housing. Thomas emphasized the development would attract "police officers, firefighters, EMT, and other school teachers" as residents.
Police Chief Ed Fowler provided crime statistics at the meeting showing apartment complexes in Rockwall do not have disproportionately higher crime rates compared to single-family areas, countering community concerns about increased crime.
Council Member Dennis Lewis highlighted crime statistics from the police chief showing that apartment complexes in Rockwall do not have disproportionately higher crime rates compared to single-family areas, which helped address some concerns.
‟The reason I asked the tough question about crime is that's not matching the data I got from our police department.
‟These aren't people that are here that qualify to come to want to do crime and really tear up things, and I think the data supports that.
In closing, Mayor Trace Johannesen humbly noted the Council's lack of development expertise:
‟I don't feed my family by doing developments. That's not what I do for a living. In fact, I don't think any of us does. So, I think the market decides what we do.
You saved: 3h 5m, 1h 19m
DISTRICT: 7
The Culbreath 2770 Bethurum Ave
Southeast Dallas | 44.04 Acres | 364 Units | Approved
Deputy Mayor Pro Tem Adam Bazaldua noted this 364-unit deal would be his first LIHTC approval in District 7, breaking from his previous stance against such projects due to concerns about concentrated poverty. He supported this exception because "this is a very unique property" that will create "a true mixed-income community." The development will begin with senior affordable housing and later include single-family homes for purchase.
‟I wasn't a fan of this. This will be the first LIHTC project that I've approved in District Seven since I've been on Council. And that was intentional because of the concentration of poverty that we have already built from reasons of our past. However, this is a very unique property... We have the opportunity for a true mixed-income community. And this is going to be senior living... This will also have a mix of dwelling types, including single-family structures for purchase for homeownership.
City Council 9/25/24
Resolution of No Objection 4% | Postponed
The Culbreath, a 364-unit senior affordable housing deal in southeast Dallas, faced unexpected scrutiny at a City Council hearing on September 25, 2024. The discussion revealed a complex interplay between innovative financing and community concerns.
Deputy Mayor Pro Tem Adam Bazaldua moved to postpone the deal, citing a need for community input to "weigh in."
‟But when we're talking about a LIHTC property that's coming into anyone's community, I need to give my—I mean, with any zoning case, really, but specifically with a property in a district with a history of having a proliferation of them and a concentration of poverty. There has to be due diligence, and there has to be an opportunity for my community to weigh in.
You saved: 8h 12m
Funding Source | Amount | Terms |
|---|---|---|
Tax-Exempt Bonds | $43,500,000 | 3.25% for 48 months |
Freddie Mac Forward Tax-Exempt Loan | $33,071,000 | 6.15% for 17 years, 40-year amortization |
Low Income Housing Tax Credit Equity | $33,762,934 | $0.92 per credit |
Amegy Bank Construction Loan | $45,800,000 | 7.85% for 24 months |
LISC Subordinate Loan | $3,000,000 | 4.5% for 18 years |
Dallas Housing Authority Loan | $12,000,000 | 0.5% for 50 years |
VOANS/Capital Magnet Fund Loan | $1,000,000 | 5% for 40 years |
Federal Home Loan Bank AHP Grant | $2,000,000 | Grant (no repayment) |
Reinvested Bond Proceeds | $5,183,750 | N/A |
Deferred Developer Fee | $3,731,024 | To be paid from cash flow |
The $93,748,707 deal showcases a sophisticated financing structure rarely seen in typical affordable housing deals. At its core is a $43,500,000 tax-exempt bond issuance at 3.25% for 48 months, utilizing a cash-collateralized mechanism. This structure helps meet the 50% test for 4% Low Income Housing Tax Credits while potentially lowering construction period interest costs.
The permanent financing relies on a $33,071,000 Freddie Mac Forward Tax-Exempt Loan at 6.15% for 17 years with a 40-year amortization. This is complemented by $33,762,934 in Low Income Housing Tax Credit equity, priced at $0.92 per credit. During construction, the project will use a $45,800,000 loan from Amegy Bank at 7.85% for 24 months.
Developer: Volunteers of America National Services (VOANS), Deborah Welchel Phone: (512) 671-0000 Email: [email protected] LinkedIn
Case Report: The Culbreath SR
Pro Forma: The Culbreath PF
Project Plans: The Culbreath Plan
DISTRICT: 6
Westfork 5500 Wilson St
West Dallas | 44.6 Acres | 300 Units | Approved
DR Horton's West Dallas deal marks an experimental approach to residential density in Dallas, combining 2,000 and 4,000-square-foot lots across 300 homes. The project site, located between Ledbetter Eagle Ford and the levees, required significant environmental remediation due to its history as a lead smelter waste disposal area.
The development exceeds standard requirements with 20 acres of green space (double the 10% minimum) and wider five-foot sidewalks instead of the typical three-foot standard. A retention pond addresses existing flooding concerns through the center of the property.
Council reception revealed nuanced perspectives on density and affordability. Council Member Paul E. Ridley praised it as a model for new development. Council Member Arnold expressed geographic concerns, noting such density would be problematic in parts of her district.
 ‟This is the way we should be doing it - establishing a whole new neighborhood with this type of consistent housing so that when people buy or rent in this location, they know what they're getting. Paul E. Ridley, CM, D14 |  ‟I'm glad to hear it's in a specific place and not all over the place. The sky would fall out in District 4, except for the bottom, where we are already working on that zero lot plan. Carolyn King Arnold, CC, D1 |
The project's design restrictions reflect community input: two-story maximum height, pitched roofs only, and no "square box" or "shoebox" style homes. The community successfully negotiated against using "Trinity" in the development's name and secured input rights for street naming. All amenities will be open to existing Ledbetter Eagle Ford residents.
The formal community response was minimal but mixed. Of 295 notices sent to property owners within 500 feet, seven opposed the project while none registered support. Only one community member, Matt Houston, appeared at the hearing, offering to answer questions but making no substantive comments.
Project lead Council Member Omar Narvaez noted this project succeeded where "five, six, seven, eight different developers" had failed, crediting Commissioner Carpenter's work with developers and community engagement. The innovative lot arrangement places smaller lots on the exterior with larger lots toward the middle near the levee, aiming to maintain affordability while creating appropriate density.
Council Member Chad West framed the project as a preferable alternative to industrial development, while Council Member Cara Mendelsohn supported the targeted approach, appreciating that it was "very specific" to a specific area of Dallas.
 ‟It's better than getting an Amazon-style warehouse that we could get there. Chad West, CM, D1 |  ‟What I love is that it's very specific to a certain place instead of all of the city. Cara Mendelsohn, CM, D12 |
The project ultimately received council approval.
City Plan Commission 8/22/24
Approved
Commissioner Lorie Blair expressed enthusiasm for the project, particularly highlighting the project's green spaces.
‟I'm excited too that this type of development is coming in District 6. It seems that it's attainable housing for the community that is already there…I'm especially excited to see the green space and where the green space is located.
Vice Chair Brent Rubin, while supportive, pointed out systemic challenges. His comments indicate that while this project is viewed positively, current zoning regulations may not readily accommodate such developments aimed at providing more attainable housing options.
‟I'm very excited about this case...I look forward to future updates to the development code that potentially make something like this much easier to do by right, maybe with some light deed restrictions.
Commissioner Housewright emphasized the need for policy changes. This sentiment was echoed by other commissioners, highlighting a broader conversation about balancing affordable housing needs with existing neighborhood character in Dallas.
‟We've got to make neighborhoods like this easier to do and encourage developers to do them.
Chair Tony Shidid summed up the Commission's general sentiment, saying that he is "happy to support it."
They approved a Planned Development District (PD) for single-family uses, subject to a conceptual plan and the applicant's recommended conditions, with some modifications.
You saved: 10h 42m
Developer: DR Horton
Owner: JAMP Enterprises, LLC, Brady Giddens Phone: (530) 588-9366 Email: [email protected] LinkedIn
Case Report: Z223-301(LG)
Project Plans: Z223-301(LG) Plan
DISTRICT: 14
Carlisle on the Creek 3230 N Hall St
Uptown | 2.45 Acres | Approved
Carlisle on the Creek, a Lang Partners deal led by Dirik Oudt, secured City Council approval for a 10X upzoning from 36 feet to 360 feet in the Oak Lawn district of Dallas.
The most striking aspect of this case was the contrast between official support and vocal opposition. While 63 neighbors formally supported the project with zero opposing responses out of 727 notifications, several long-time Turtle Creek residents came out to the council hearing to voice concerns.
Council Member Paul E. Ridley, District 14, initially struggled with "seeing the justification for a 36-story tower" at this site. However, the project's community benefits package ultimately won his support. These benefits include a $6 million payment to the Mixed Income Housing Development Bonus program, micro units at affordable rents, underground parking, and improved Katy Trail access.
The deal will replace approximately 100 existing affordable units. Council Member Jesse Moreno acknowledged this tradeoff.
‟It is a current affordable complex... it's at the end of its life and has no really life to it, and the $6 million that's going to be added to the fee in lieu is going to make up for that.
The project's design sparked debate about density and urban form. Council Member Gay Donnell Willis backed the taller, slender design, explaining that the setback from the street avoids the "canyon that we don't want."
Traffic emerged as a primary community concern. Rita Leonard of Renaissance on Turtle Creek counted "30 cars at the red light at Hall and Turtle Creek coming from the Carlisle area already before these two high-density projects are even complete." The developer's traffic study claimed minimal impact, though some residents questioned its findings.
The development team conducted over 50 meetings with community stakeholders since 2022. Architect Evan Beatty of GFF noted that the tower occupies less than 25% of the site area and maintains a 120-foot setback from the Katy Trail and a 100-foot setback from Hall Street. These design choices reflect community input aimed at minimizing the tower's impact.
Deputy Mayor Pro Tem Adam Bazaldua addressed late opposition regarding views, stating firmly that "no one's view is protected." He emphasized this project's alignment with ForwardDallas's goals for increased density and housing stock.
The case received support from key neighborhood groups including the Oak Lawn Committee, City Plan Commission, and Uptown Neighborhood Association. The final approval included additional conditions for traffic signal upgrades, pedestrian improvements, and parking restrictions on Hall Street.
City Plan Commission 8/22/24
Approved
Commissioner Tabitha Wheeler-Reagan, District 7, expressed concern about the lack of affordable housing for working-class people in the area. She noted that what was affordable two years ago is no longer attainable for many, specifically mentioning firefighters and teachers. Wheeler-Reagan encouraged developers to consider on-site affordable units rather than in-lieu fees, particularly for working-class residents making around $60,000-$80,000 annually.
Despite her concerns about affordability, Wheeler-Reagan ultimately supported the case, praising the thoughtful impacts and community amenities included in the project.
‟I would hope that at some point a developer who's building these amazing sites... would also consider not doing the in-lieu and allowing some of these units to be affordable for those working-class people…I do support this case because you all have thoughtful impacts of what you're building up in Uptown now, compared to other parts of the city where they're building to the lot line and not making sure there's community amenities.
You saved: 6h 19m
Developer/Owner: Lang Partners, Dirik Oudt Phone: (214) 628-7822 Email: [email protected] LinkedIn
Case Report: Z223-280 (MP)
Project Plans: Z223-280 Plan (MP)
DISTRICT: 11
Pepper Square SEC of Preston Rd & Belt Line Rd
Far North Dallas | 15.51 Acres | 984 Units | Postponed
The controversial Pepper Square deal was postponed by Council with no discussion.
City Plan Commission 8/8/24
Approved
The Dallas City Plan Commission approved the Pepper Square rezoning case, despite vocal opposition and after the developer slashed their proposal by more than half.
Developer: Henry S. Miller, Greg Miller Phone: (972) 419-4000 Email: [email protected] LinkedIn
Case Report: Z212-358(JM)
Project Plans: Z212-358(JM) Dev + Concept Plan
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