08/22/23 DPFC Meeting Summary

Maple Highline project presented by Urban Genesis received positive feedback from the Dallas Public Facility Corporation (DPFC) Board during the August 22, 2023 meeting.

Key points:

• Developer: Urban Genesis, represented by Sameer Walvekar. This is their third PFC project. They have a mission to provide affordable apartments in unaffordable locations.

• Project: 130 units, transit-oriented development near Medical District providing workforce housing. Currently under construction, projected completion January 2024.

• Unit Details: Class A finishes, amenities include dog park, coworking space, bike storage.

• Rezoning Feedback: Met with neighbors and council member to get input during rezoning process in 2021. Made design changes based on feedback including landscape buffers, lighting, trees, fencing.

• Financing: Project is well-financed and already under construction. targeting closing in December 2022.

• Affordability: 10% units at 60% AMI, 40% at 80% AMI, remainder at market rate. Rent savings of $191,256 annually.

• PFC fees: Will provide 8x the current annual taxes of $42,000 through upfront and ongoing PFC payments. 59% tax savings through rent discounts and PFC fees over 15 years.

• Board Feedback:

  

Director Hansel - Positive comments on accomplishment of creating workforce housing from small urban parcels.

The project received unanimous approval from the DPFC Board.

Opposition

➊ ‘Workforce Housing’ — East Kessler Park Neighborhood Assoc.

Dr. Charles Haley

08/22/23 DPFC Meeting Summary

During a meeting at the East Kessler Park Neighborhood Association, initial apprehensions arose due to misconceptions about the nature of workforce housing, confusing it with Section 8/voucher housing. However, following enlightening interactions with Dr. Charles Haley, the association's president, and a firsthand look at another of Banyan's ventures, the community's perspective shifted, seeing the value in workforce housing.

Councilman Chad West championed the initiative, asserting that he believes neighborhood groups now stand in its favor. This sentiment arose post Banyan's proactive engagement to demystify the workforce housing model.

Stressing the disparity, the developer pointed out the scarce 34 affordable units constructed since 2014 in the region against a staggering 1,200 market rate units. Banyan Flats promises to significantly bolster these numbers.

With an overwhelming board consensus, the project got the green light. As proposed, the blueprint comprises 289 units, of which 145 cater to the 60% and 80% AMI demographic. Not only does it position itself in a Qualified Opportunity Zone, but it also pledges top-tier amenities. Addressing the acute workforce housing deficit, it emerges as a potential home for many prospective employees of the nearby Methodist Hospital. Recognizing its potential, the hospital's president even toured another Banyan property to get a sense of their product.

06/27/23 DPFC Meeting Summary

The Bishop 8th project received positive feedback from the DPFC Board. The developer is Breunig Ventures (BV Acquisitions LLC). Key points presented:

• The project will develop a 232-unit multifamily community one block off Bishop Ave in the Bishop Arts district.

• It will replace 60 demolished homes with 116 new income-restricted units.

• The project cost is $58 million, funded through equity and a loan.

• It will provide a mix of market rate and affordable units, with 40% at 80% AMI and 10% at 60% AMI.

• The 2.7 acre site allows for amenities like a sky lounge, fitness center, and private garages.

The project was praised by Director Toledo for bringing affordable housing to the rapidly growing Bishop Arts area. Director Montgomery highlighted that the project will generate over 10 times more revenue for the city than the current property taxes. The DPFC Board unanimously approved the project.

06/27/23 DPFC Meeting Summary

The Coombs Creek Alta Vista project received positive feedback from the DPFC Board. The developer is The Marcer Group, LLC, represented by Raul and Maria Estrada. Key points presented:

• The project is located in District 3, near Illinois Ave and Westmoreland Rd. The area has a need for new quality affordable rental housing.

• It will be a 210-unit Class A apartment complex with a mix of 50% market rate and 50% affordable units (40% at 80% AMI and 10% at 60% AMI).

• Amenities will include structured parking, pool, clubhouse, fitness center, etc.

• The project will provide resident programming and services focused on financial assistance, healthcare coordination, transportation access to DART, and childcare support.

• The project is designed to bring high-quality housing options to an overlooked area of Southwest Dallas.

The DPFC Board praised the minority-owned, Dallas-based developer and the focus on providing needed affordable housing and amenities in the neighborhood. There were no major concerns raised, only clarifying questions on unit mix, project costs, permitting status, traffic impacts, etc.

The Marcer Group addressed the questions from the Board and highlighted their community outreach efforts, including meeting with the previous and newly elected council members who are supportive.

The project received unanimous approval from the DPFC Board.

06/27/23 DPFC Meeting Summary

The Cedars project, named Power & Light Residential and The Marcus by the developer, received positive feedback from the DPFC Board. The developer is Savoy Equity Partners. Key points presented by Savoy:

• The project will develop two neighboring vacant land sites and restore the historic Power and Light building in the Cedars neighborhood.

• It will bring 376 new apartment units to the south side of the Cedars neighborhood, with a mix of studio, 1, 2, and 3 bedroom units.

• 50% of the units will be affordable at 80% AMI and 10% at 60% AMI.

• The project will upgrade some of the city's oldest infrastructure in the neighborhood.

• The historic Power and Light building will be converted into the amenity center. The building will also be placed on the National Register of Historic Places.

• Total project cost is $90 million, funded by Opportunity Zone equity, making Savoy long-term partners in the neighborhood.

The project was praised by Director Toledo for bringing much needed investment and affordable housing to the overlooked Cedars neighborhood. The DPFC Board unanimously approved the project.

04/25/23 DPFC Meeting Summary

The Elms is a 153-unit multifamily housing project proposed by developer Smart Living Residential (SLR) to be located at several addresses on Morrell Ave and Hutchins Road in the Cedar Crest neighborhood of Dallas.

The project received overall positive feedback from the DPFC Board, though there were some concerns raised about the proposed early termination option and questions about the unit mix.

SLR founder Swede Hanson presented the project to the Board. Key points he made:

• The area has a shortage of attainable workforce housing. The Elms aims to provide high quality yet affordable units, with 41% of units at 80% AMI rents and 11% at 60% AMI.

• The project will have high quality exterior materials like brick and interior finishes like stone countertops. This is informed by SLR's long-term investment strategy.

• The development will partner with local nonprofits like Behind Every Door, which is renovating the nearby community center, to invest in the broader community.

• M/WBE participation is a priority. They have already contracted M/WBE firms for multiple services.

The Board praised the quality of the project and SLR's presentation. DPFC President Keith Pomykal thanked Hanson for his expertise.

However, some concerns were raised about the early termination option that would allow SLR to exit the 75-year ground lease after 40 years. Board member Ken Montgomery felt this was "patently unfair" to other developers without such an option. Hanson argued it is needed to help finance improvements as a long-term asset holder.

There were also questions about the unit mix from Board member Victor Toledo, who felt the allocation of more affordable studio units and no market-rate studios was inequitable. Hanson said they would follow the letter of the agreement and get required approvals.

The Board ultimately approved it in a 6-4 vote (Toledo, Montgomery, Poss, Stinson against).

03/28/23 DPFC Meeting Summary

• The project received mixed feedback from the Board and significant opposition from the neighborhood.

• The project was not specifically praised by any council members at the meeting.

• The Board approved moving forward with negotiating a non-binding Memorandum of Understanding (MOU) for the project in a 8-4 vote, indicating divided opinion on the project among Board members.

• The developer is Sycamore Strategies. They presented that the project would be 189 affordable housing units located at 11520 N Central Expressway. It would be a mixed-income development with some market rate units as well.

• Multiple community members spoke against the project during public comments, citing concerns about it exacerbating issues with homelessness, crime, and strain on public resources in the area. Some commented the neighborhood is already saturated with affordable housing.

• Quotes representing negative feedback:

"We strongly oppose the activity that's going on here in that appeal. That's really a taking of the deed restriction from us, which has been in place to really create a planned, organized development of that community." - William Roth, adjacent property owner

• The developer responded that they believe this is an appropriate site for affordable housing based on statistics and demographics. They stated "the reasons for opposition are just unfortunately based more on emotion than the facts of demographics."

• The Board's decision to move forward indicates they are open to the project, but they specified the MOU is non-binding and there are still issues to be worked out including clarifying legal liability.

02/28/23 DPFC Meeting Summary

The Park at Northpoint received overall positive feedback from the DPFC Board. The project did not receive any direct feedback from the neighborhood at this meeting. The developer is LDG Development. Key points presented:

• The project will be built in two phases for a total of over 600 units, with Phase 1 having approximately 330 units and Phase 2 having approximately 270 units.

• It is located at 9999 Technology Blvd in District 6 and will have amenities like a pool, clubhouse, and fitness center.

• LDG is requesting $10 million in CDBG funds from the City for acquisition of the land. This would be a 1% interest loan repaid over 40 years.

• The proposed lease payment to the DPFC is $425,000 per year.

The Board praised the opportunity for affordable and mixed-income housing and the location near transit and jobs. Director Toledo specifically praised the value creation, estimating the project value in 75 years could be $2.4 billion for the City.

Director Callis asked about the land ownership and phasing. The developer said all the land would transfer at closing but the lease payment for Phase 2 would be negotiated later, when that phase begins construction.

Director Montgomery and Director Pauls asked several questions about the building construction, lease payment amount, and other financial details. The developer provided details on the unit mix, parking, and financing sources.

Director Holmes asked about estimated completion timing. The developer is targeting end of 2023 for closing and Phase 1 construction start, with Phase 2 starting 18-24 months after Phase 1 is substantially complete.

The project was approved unanimously by the Board after this discussion.

02/28/23 DPFC Meeting Summary

The Standard Silver Line project proposed by Ojala Partners for 7825 McCallum Blvd received mixed feedback from the DPFC Board and negative feedback from the neighborhood.

Key points:

• The project received praise from Director Toledo for being located in a high opportunity area and for not displacing any existing residents.

• The neighborhood residents who spoke expressed strong opposition. They felt the area was already oversaturated with apartments, citing existing crime and traffic issues. Residents were upset about the lack of community engagement by the developer prior to bringing this project to the DPFC.

• The Board had concerns about the developer's proposal to rehabilitate the existing 1970s/1980s apartment buildings as part of this project. Some Board members did not think these older buildings would last the 75 year term of the partnership.

Quotes:

The Board deferred the project unanimously until the next meeting, citing the need for more community engagement and answers to concerns about renovating the existing apartments.

02/28/23 DPFC Meeting Summary

The 290-unit affordable housing project proposed by Larkspur Capital for 3525 Ash Lane received mixed feedback from the DPFC Board.

• Director Toledo praised the location across from Fair Park, citing the amenities and transit access.

• Director Reyes criticized the lack of engagement with the South Dallas community, encouraging the developer to meet with neighborhood leaders to get their input.

• The Board had concerns about the unit mix being majority 1-bedroom units rather than family-sized units.

• The Board questioned whether the developer's debt commitments from 2021 were still valid. The developer indicated they were, but rates and terms may change.

The developer is Larkspur Capital, who highlighted their track record building affordable housing in Dallas. Key points were:

• 290 units on a vacant site across from Fair Park

• Amenities like a pool, gym, dog park

• Art Deco design to match Fair Park

• Projected start of construction by end of 2023

No direct community feedback was presented, though Director Reyes implied there had not been robust engagement with South Dallas residents and leaders. The developer did not directly respond to the community engagement concerns raised.

The Board ultimately denied the term sheet 7-4, requesting more substantial community engagement before reconsidering the project.

01/24/23 DPFC Meeting Summary

The Bluffview Highline project received overall positive feedback from the Board. Council member Zoe Halfmann praised the project for being the first PFC or affordable housing project in District 13, calling the area "ripe for this type of community-driven development." She thanked the developer Urban Genesis for putting together a "great proposal."

The developer Urban Genesis was represented by Sameer Walvekar. He presented key points about the project:

• 175-unit Class A multifamily development near Love Field and other employment centers

• 50% market rate units, 40% at 80% AMI, 10% at 60% AMI

• $35 million investment in mixed-income housing

• Amenities like a pool, fitness center, lounge spaces

• Connecting to the Bachman Creek Trail

• Replacing vacant commercial buildings currently on the site

The Board had an overall positive reception. Director Victor Toledo said he was "very excited to support this project" and bring affordable housing to the area. The Board unanimously approved moving forward with negotiations on the project.

The only negative feedback came from Director Mary Poss, who said she would vote against the project because she believed the area did not need assistance to develop. She wanted to see the but-for analysis to prove affordability was needed. The GM Kyle Hines responded that the project would not be feasible without the PFC partnership due to the reduced rents on the affordable units.

Overall, the developer received praise for bringing much-needed mixed-income housing to this opportunity area, with amenities and trail connectivity. The Board was receptive to negotiations moving forward. Key details were the unit mix, amenities, and replacement of vacant commercial buildings. The only concern raised was whether affordability was needed, which staff addressed.