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Dallas City Plan Commission
5/2/24
Welcome to Ultraground. We go through the details of development bonuses for you.
May 2, 2024
District: 6 | Arcadia Park
300-Unit Affordable Multifamily | 1200 N Walton Walker Blvd | Approved
District: 14 | Knox Park
399' Mixed-use | 4444 McKinney Ave | Approved
District: 13 | Northern Dallas
4.5-Acre Mixed-use | 8300 Douglas Ave | Approved
District: 3 | Oak Cliff
16-Unit Townhomes | 4106 W Kiest Blvd | Held Under Advisement
You saved: 12h 19m
DISTRICT: 6
The Ridge at Loop 12 1200 N Walton Walker Blvd
Arcadia Park | 16.42 Acres | 300 Units | Approved
LDG Development is proposing a 300-unit mixed-income product in District 6. If approved, it will be the first rezoning of its type in the Western Dallas District in over a year. By combining a zoning change, 4% Low-Income Housing Tax Credits (LIHTC), HFC-issued tax-exempt bond financing, and other funding sources, LDG is looking to bring a new affordable product to the western edge of Dallas.
On the zoning front, LDG is requesting to rezone 16.421 acres from R-7.5(A) Single-family to a Planned Development District for MF-2(A) Multifamily. In exchange for providing 5% of units (15 total) at 81-100% Area Median Family Income (AMFI) levels, LDG is requesting modifications to setbacks, density, lot size, height, and parking requirements. This strategy allows them to request zoning concessions while still providing community benefits.
Financially, LDG is pursuing a complex capital stack that includes $50 million in tax-exempt bonds issued by the City of Dallas Housing Finance Corporation (HFC), which is charging a 0.50% bond issuer fee ($250,000) plus a $100,000 administrative fee. The 4% LIHTC equity is projected at $13.8 M for the Construction Period and $36.9 M for the Permanent Period at a $0.92 credit price, which is noted as a critical source. Other funding includes a $43.9 million conventional loan, $9.0 million in deferred developer fee, and an unspecified "direct loan match."
The total development cost is $89.8 million for the 300 units, which will be garden-style with 3 stories, open space, dog parks, and amenities. It's worth noting the proposed development will have a vehicular emergency access gate and pedestrian connection to the adjacent neighborhood, which improves walkability to the nearby elementary school.
City Staff and CPC recommended approval, stating the project aligns with City goals for diverse and affordable housing.
Term | The Ridge at Loop 12 (1/30/23) |
|---|---|
HFC Administrative Fee | $100,000 |
Bond Issuer (HFC) Fee | $250,000 (0.50%) |
Contingency | $2,841,906 |
Permanent Loan | $43,934,000 |
Construction Loan | $50,000,000 |
Development Costs | $89,777,607 |
Land Acquisition | $2,500,000 |
Soft Costs | $4,720,095 |
Developer Fees | $10,609,338 |
Deferred Developer Fee | $8,950,526 |
Hard Construction Costs | $50,383,000 |
Financing Fees | $10,171,371 |
Reserves | $1,571,777 |
Housing Tax Credits Equity | $13,846,471 (Construction Period) $36,893,081 (Permanent Period) |
Developer: LDG Development, Justin Hartz Phone: (502) 931-5795 Email: [email protected], Jake Brown Phone: (502) 638-0534 Email: [email protected] LinkedIn
Attorney: Rob Baldwin Email: [email protected]
Case Report: Z234-106(GB) CR
Project Plan: Z234-106(GB) Dev Plan
Multifamily deal stats, political sentiment, financials, across all deals in DFW
DISTRICT: 14
Knox Promenade 4444 McKinney Ave
Knox Park | 3.14 Acres | Approved
A $3-5 million question confronted the City Plan Commission as they considered the Knox Promenade mixed-use development - how to correctly apply the Mixed-Income Housing Development Bonus (MIHDB). Hines & Stockdale Development Partners proposed 2.5% of multifamily units be reserved at 61-80% AMI and 2.5% at 81-100% AMI to achieve the bonus entitlements. However, city staff pushed for a higher percentage, recommending 10% at 61-80% AMI and 5% at 81-100% AMI. This discrepancy led to a lengthy discussion among the commissioners.
Commissioners grappled with whether the affordable housing requirement should apply only to the residential portion or the full 3.14-acre development, office included.
Why was there even a difference between how the developer applied the bonus and how City Staff applied the bonus?
Hines & Stockdale wanted to apply the Mixed-Income Housing Development Bonus (MIHDB) to the residential portion of the development as Knox Promenade will bring 399’ multifamily, 295’ office, and 260’ senior products online.
On the other hand, City Staff interpreted the policy differently. They recommended applying the MIHDB to the entire development, including the office component. They pushed for a higher percentage of affordable units, recommending 10% of the multifamily units at 61-80% AMI and 5% at 81-100% AMI.
The City Plan Commission ultimately sided with the Staff's recommendation regarding the percentage of affordable units. They decided to tie the MIHDB to both the Floor Area Ratio (FAR) and height, which means the bonus would apply to the entire development, not just the residential portion.
‟I don't think we should fundamentally alter tonight how we have handled the Mixed-Income Housing Development Bonus on pretty much any other PD case.
This statement suggests a precedent for applying the MIHDB to the entire development, including non-residential components, in mixed-use projects. However, the commissioners' discussion also highlighted the need for clearer guidelines and a more consistent approach to implementing the MIHDB in such cases.
Commissioner Melissa Kingston, District 14, acknowledged the developer's willingness to participate in the affordable housing program but expressed frustration with the lack of clarity in the City's policy.
In the end, the Commission took a principled stand, tying the bonus to both FAR and height, matching staff's recommendation. For Hines & Stockdale, this means paying "$3 to 5 million dollars" more than initially proposed, according to their attorney Tommy Mann with Winstead.
Despite the MIHDB disagreement, the Commission expressed enthusiasm for the mixed-use product itself.
‟I'm very excited about this project. It brings hundreds of housing units and a significant number of senior housing units.
The Oak Lawn Committee's support, secured through the developer's extensive outreach, helped seal the deal.
Developer: Hines Phone: (972) 716-2909, Stockdale Development Partners Kenneth Pratt (Stockdale) Phone: (214) 220-3423 Email: [email protected]
Attorney: Winstead, Tommy Mann Phone: (214) 745-5724 Email: [email protected]
Case Report: Z223-208(LG) CR
Project Plan: Z223-208(LG) Dev Plan
Multifamily decision reasoning, entitlement trends, pre-application proposals
DISTRICT: 13
8300 Douglas 8300 Douglas Ave
Northern Dallas | 4.51 Acres | Approved
RAMROCK’s rezoning for a mixed-use development in Preston Center was approved by the City Plan Commission (CPC) on May 2, 2024, after being postponed from March 7, 2024, due to a typo in the noticing documents.
The project received support from several commissioners, including Larry M. Hall (District 13), who moved to approve the case, and Tipton Housewright (District 10), who commended Commissioner Hall's work on this complicated case. Commissioner Darrell Herbert (District 3) seconded the motion, appreciating the historical context of the area.
Commissioner Lorie Blair (District 8) addressed traffic concerns raised by residents, stating:
‟Yes, in all areas in the City of Dallas we're all challenged with traffic but that's going to happen because we also have hundreds of people moving here on a daily basis. So, until you can take a city and knock it completely down and reengineer it, you're going to always have that, and I'm sorry but that's just our reality. This is a beautiful development, I love it.
Despite the support, Commissioner Deborah Carpenter (District 6) voted in opposition to the motion to approve the zoning case.
RAMROCK has requested an increase in FAR from 2.0 to 4.5 and a height increase from 85’ to 225’, contingent upon providing mixed-income housing. Staff recommends that 15% of the total residential units be reserved for households earning between 51% and 100% of the AMI.
Developer: RAMROCK Real Estate LLC, Robert Dozier, Matt Gibson Phone: (214) 983-0280 Email: [email protected] LinkedIn
Attorney: Jackson Walker, Suzan Kedron LinkedIn
Case Report: Z223-141(MP)
Plan: Z223-141(MP) Dev Plan
DISTRICT: 3
Guadalupe City Homes 4106 W Kiest Blvd
Oak Cliff | 1.85 Acres | 16 Units | Held Under Advisement
Raul Estrada, faced significant community opposition when attempting to rezone a single-family property to multifamily for a 61-unit age and income-restricted apartment complex.
Despite reducing density to 16 townhome units, residents remained opposed. Ellen Taft, a nearby resident, said they’ve "not seen the townhome plan." Commissioners were divided after Tom Forsyth, District 4, made the motion to deny.
 ‟This is a tough one for me….I have to respect the wishes of of the neighbors…I make a motion to deny Tom Forsyth, CPC, Dallas |  ‟I will be unapologetically supporting this motion (to deny). Tabitha Wheeler-Reagan, CPC, Dallas |
 ‟If there were an application in my neighborhood to put in the duplex, my answer would absolutely be yes. Brent Rubin, CPC, Dallas |  ‟Did not support the motion to deny the rezoning. Argued case was being denied because it ‟doesn't look like exactly what's on the street. Tipton Housewright, CPC, Dallas |
After much discussion, Commissioner Darrell Herbert, District 3, made a motion to hold the case under advisement to allow more time for Marcer Construction to present its development plan to the neighbors. The motion passed despite some Commissioners arguing the case should be denied or voted on that day. So a final decision was not made, and the case will come back to the Commission on June 6th.
Developer: Marcer Construction, LLC, Raul Estrada Phone: (214) 946-0404 Email: [email protected] LinkedIn, Mariela Estrada Phone: (214) 946-0404 LinkedIn
Case Report: Z223-217(MP)
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