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[00:00:01]

>> ALL RIGHT. GOOD EVENING, EVERYONE. TUESDAY, FEBRUARY 4, 2020, 5:45

[1. CALL TO ORDER]

P.M. AND WE ARE IN CITY HALL CONFERENCE ROOM. AS AUTHORIZED BY 551.001 OF THE

[2. EXECUTIVE SESSION]

TEXAS GOVERNMENT CODE THIS MEETING MAY BE CLOSED TO DISCUSSION FOR THE PURPOSE OF THE CITY. CITY OF ROWLETT RESERVES THE RIGHT TO RECONVENE, CALL SPECIAL MEETING. WE HAVE TWO -- EXCUSE ME. EXCUSE ME.

WE HAVE TWO ITEMS ON OUR EXECUTIVE SESSION. CITY COUNCIL SHALL CONVENE TO A SPECIAL DISCUSSION PURSUANT TO TEXAS GOVERNMENT CODE. CONSULTATION WITH ATTORNEYS TO DISCUSS COMMERCIAL OR FINANCIAL INFORMATION WITH WHICH THE CITY'S ECONOMIC DEVELOPMENT NEGOTIATION TO RECEIVE LEGAL ADVICE FROM THE CITY ATTORNEY RELATING TO THE PROPERTY 3813 MAIN STREET IN THE VILLAGE OF ROWLETT TOWN. 2B THE CITY SHALL CONVENE IN EXECUTIVE SESSION REAL PROPERTY AT 5510771 CONSULTATION WITH ATTORNEY TO DISCUSS PURCHASE EXCHANGE OR VALUE OF REAL PROPERTY LOCATED IN THE NORTH SHORE DISTRICT WHERE AN OPEN GATE MAY HAVE A DETRIMENTAL EFFECT ON THE CITY'S POSITION IN NEGOTIATIONS WITH A THIRD PARTY AND TO CONSULT WITH AND RECEIVE LEGAL ADVICE FROM THE CITY ATTORNEY RELATED TO THE PURCHASE EXCHANGE OR VALUE OF REAL PROPERTY IN THE NORTH SHORE DISTRICT.

>> ALL RIGHT. WE ARE GOING TO RESUME OUR WORK SESSION.

[3A. Hear a presentation regarding a proposal to develop Residences at Merritt Hill, an affordable and market rate multi-family rental housing development, using a 4% housing tax credit with the Texas Department of Housing and Community Affairs. (30 minutes)]

PRESENTATION REGARDING PROPOSAL TO DEVELOP RESIDENCE AT MERRITT HILL USING A 4% HOUSING TAX CREDIT WITH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS.

>> THE APPLICANT WILL BE MAKING A PRESENTATION PURSUANT TO THEIR REQUEST OF NO OBJECTION AS YOU CAN SEE ON THIS AGREEMENT. THE AREA IS THE DOTTED LINE WHICH ENCOMPASSES RIGHT OF WAY AND CONNECTIVITY TO THE SUBJECT PROPERTY. THIS IS PURELY INFORMATIONAL.

THE PROPERTY IS COMPRISED OF SEVERAL PARCELS -- TRYING TO GET THIS TO WORK.

WE HAVE THE URBAN NEIGHBORHOOD PARCEL HERE AND HERE. THEN WE HAVE THIS RURAL NEIGHBORHOOD PARCEL, SPEAKING COMPREHENSIVELY. I BELIEVE THE APPLICANT WILL BE PURCHASING ONLY THIS PORTION IN RED. PROPERTY, ZONING OF THE PROPERTY DOES NOT HAVE A RIGHT. THERE IS A MINIMUM MIX OF 20% OF MIXED RESIDENTIAL SHOP FRONT AND MIXED USE. I JUST WANTED TO BRING THAT TO THE CONVERSATION.

THAT BEING SAID, I AM GOING TO TURN IT OVER TO THE DEVELOPER SO THEY CAN PRESENT THEIR CASE TO

YOU. >> I'M DAN OGER.

WE ARE PROPOSED 260 APARTMENT UNITS ON THIS SITE.

THE SITE LOCATION MAP IS ON THE NORTH SIDE OF TOWN BETWEEN MERRITT DRIVE AND THE GEORGE BUSH.

AS DESCRIBED, THIS IS THE SITE. IT'S OVER 30 ACRES AND THE TOTAL TRACT. WE'RE BUYING THAT PORTION OF IT WHICH IS NOW 15 ACRES. AND THAT'S WHAT WE ARE TALKING ABOUT DEVELOPING. THE LONG, THE LONG STRETCH THERE IS GOING TO BE A FUTURE RIGHT OF WAY FOR HARMONY DRIVE, I BELIEVE IS WHAT IT'S CALLED IN YOUR THOROUGHFARE PLAN.

AGAIN, SHE SHOWED YOU THE ZONING MAP.

IT IS CURRENTLY ZONED AS SHE SAID.

I WILL POINT OUT THAT WITH THE MIXED -- WITH THE MIXED -- THIS ZONING DOES REQUIRE SOME MIXED USE.

WE HAVE TALKED TO THE LAND OWNER.

THEY'RE PLANNING RETAIL ON THE BALANCE OF THIS SITE, AND ACTUALLY ARE WORKING VERY HARD ON SOME DEVELOPMENTS AS WE SPEAK. THE ACRES UNDER THE DESIGN WILL BE MIXED USE AND TOTALLY IN ACCORDANCE WITH THE PLAN.

[00:05:02]

IN THE FUTURE LAND USE, FOR WHAT IT'S WORTH, IT IS ZONED MU MULTITRAIL. I APOLOGIZE FOR THE LITTLE DOTS.

I COULDN'T GET THEM OFF THE ARCHITECTS DRAWING.

BUT THE SITE WILL MEET PLANNING REQUIREMENTS.

WILL HAVE SET BACKS. WILL HAVE ADEQUATE PARKING AND ALL THE REQUIREMENTS OF THE CURRENT PLANNING.

WE'RE PROPOSED THREE STORY WITH SOMETHING LIKE THIS.

THERE'S SOME OF THE TYPICAL FLOOR PLANS.

ALL OF THIS -- I'M RUSHING THROUGH THIS BECAUSE IT'S ALL IN THE PRESENTATION AS WELL. SO WE'RE SORT OF -- I'M TELLING YOU THINGS THAT YOU'VE ALREADY GOTTEN IN WRITING AS WELL.

THE FLOOR PLANS WE USUALLY PROVIDE WALK-IN CLOSETS.

WE'LL HAVE OUTSIDE STORAGE ON MOST OF THE UNITS THAT HAVE BALCONIES AND PATIOS. THERE WILL BE MODERN TYPE DEVELOPMENTS NOW A DAYS FOR APARTMENTS.

CODE ENTRY, STORAGE ROOMS, COVERED PATIOS.

ONE THING I DO WANT TO EMPHASIZE HERE, IN THIS PROGRAM, EVERYTHING IS EXTREMELY ENERGY EFFICIENT WHEN YOU'RE DONE.

VERY HIGH EFFICIENT HEAT AND AIR.

OTHER ENERGY SAVINGS FEATURES. LED LIGHTING.

IT'S VERY ENERGY CONSCIOUS. THE RESIDENTS HAVE TO PAY ELECTRIC BILL, AND YOU WANT TO MAKE IT AS BEST FOR THEM AS YOU CAN. AND, OBVIOUSLY, IT'S GOOD TO BE ENERGY CONSCIOUS. CLUB HOUSE PROPOSED ON SITE HAS A LOT OF DIFFERENT FACILITIES IN IT.

HERE'S SOME OF THE AMENITIES. SWIMMING POOL IS OBVIOUSLY NOT IN THE CLUB HOUSE. FITNESS CENTER, INTERNET.

NOW A DAYS EVERYBODY GOES AND SITS AND PLAYS GAMES IN THE CLUB HOUSE AND USES YOUR WI-FI AND WHATEVER.

THAT'S WHAT THEY DO. COMMUNITY ROOM.

WE WILL PROVIDE SERVICES ON SITE.

THAT'S SOMETHING THAT WE DO FOR THE RESIDENTS.

THIS WILL BE USED FOR THAT AS WELL.

COMMUNITY ROOM WILL HAVE A KITCHEN FOR ENTERTAINING AND FOR EVENTS. BARBECUE GRILLS AND PICNIC AREAS SO WE DON'T HAVE BARBECUE GRILLS NEXT TO THE BUILDINGS.

THE INSURANCE COMPANIES DON'T LIKE THAT.

SO FORTH AND SO ON. HERE'S THE UNIT MIX.

THREE SIZES, APPROXIMATELY. ESTIMATED GROSS RENTS.

THIS IS A PROJECT USING HOUSING TAX CREDITS.

THAT'S RENT INCLUDING UTILITIES, ESTIMATED AMOUNT OF UTILITIES THAT THE RESIDENT WILL PAY. TYPICALLY THEY PAY ELECTRIC AND MAYBE WATER AND SEWER DEPENDING ON INDIVIDUAL NEEDS.

INCOME RETIREMENTS. DALLAS FT. WORTH AREA MEDIAN INCOME IS $82,000. $83,100.

100% OF THIS PROPERTY WILL BE FOR RESIDENTS THAT MAKE 60% OF THE AFFORDABLE OF THAT OR LESS. THAT IS, DEPENDING ON FAMILY SIZE, FROM IN THE 40S OR 50S OF INCOME.

HERE'S WHAT WE'RE REQUESTING. CITY COUNCIL RESOLUTION WITH NO OBJECTION. THAT'S STATE STATUTE IF YOU'RE APPLYING FOR HOUSING TAX CREDITS.

TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS WHICH RUNS THIS PROGRAM, THAT'S A REQUIREMENT.

ADDITIONALLY, EVEN THOUGH WE'RE PARTNERING WITH THE HOUSING PLAN CORPORATION, WE'RE TALKING ABOUT A PILOT AGREEMENT, PAYMENT IN LIEU OF TAXES. WE'RE PARTNERING WITH THE HOUSING FINANCE CORPORATION. HE'S RIGHT BEHIND ME.

THEY'RE ISSUING THE BONDS. THEY'RE GETTING SOME FEE.

THEY'RE GETTING A PERCENTAGE OF THE FEES AND THE CASH FLOW OF THE PROJECT. THEY'RE PART OWNER.

THEY CAN BUY US OUT IN 15 YEARS AFTER THE COMPLIANCE PERIOD.

THEY'RE ELIGIBLE FOR TAX EXEMPTION.

WE'RE TALKING ABOUT A PILOT HERE.

THE REASON FOR THAT IS WE'RE GOING TO BUILD HARMONY LANE FROM MERRITT DRIVE ALL THE WAY TO WHERE IT CURRENTLY EXISTS ON THE NORTH SIDE OF THE PROPERTY. MERRITT DRIVE CUTS THROUGH THE APARTMENTS NORTH OF THE SITE. HARMONY LUXURY OR SOMETHING LIKE THAT. I'M NOT QUITE SURE WHAT IT IS.

>> HARMONY HILLS. >> THANK YOU, HARMONY HILLS.

THAT'S AROUND $3 MILLION. THE CURRENT TAX ESTIMATE FOR 15 YEARS BASED ON VALUATIONS AND THE WAY YOU DO IT NOW IS $2.8

[00:10:05]

MILLION. SO IN ESSENCE, IF WE BUILD THIS ROAD, YOU'RE GETTING $3 MILLION CURRENTLY FOR 15 YEAR TAXES THAT

ARE $2.8 MILLION. >> YOU'RE NOT TALKING ABOUT TAXES. YOU'RE TALKING ABOUT --

>> WE'RE TALKING ABOUT AN EXEMPTION.

>> THAT'S NOT A PILOT. >> OKAY.

ALL RIGHT. >> I JUST WANT TO MAKE SURE WEIR

ON THE SAME PAGE. >> MY TERMINOLOGY --

>> A PAYMENT IN LIEU OF TAXES IS AN AGREEMENT IN PLACE TO PAY AN ANNUAL AMOUNT COMMENSURATE WITH PROPERTY TAXES THAT WOULD BE ON THE PROPERTY THAT WE DON'T COLLECT BECAUSE OF THE TAX EXEMPT PROPERTY. SOME OF THIS IS FOR THE PUBLIC.

>> SURE. >> THE ESSENCE OF THESE TRANSACTIONS ARE, THEY ARE TAX EXCEPT TRANSACTIONS AND, THEREFORE, BY RIGHT, DON'T PAY PROPERTY TAXES.

BUT WE HAVE ENTERED INTO PILOT AGREEMENTS AT OUR INSISTENCE IN THE PAST WITH A SIMILAR TRANSACTION SO THAT WE DO HAVE REVENUE COMING IN ON THOSE PROPERTIES.

THAT'S FOR THE PUBLIC. >> I'M USING THE WRONG TERMINOLOGY AND I APOLOGIZE FOR THAT.

BUT THE POINT IS WE'RE GOING TO BUILD A ROAD AND THE 3 MILLION.

WHAT OTHER BENEFITS ARE THERE OF WHAT WE'RE DOING HERE? EXTENDING HARMONY ROAD HAS A LOT OF BENEFIT.

ONE, YOU GET DUAL ACCESS TO THOSE ADJACENT PROPERTIES RIGHT NOW FOR EMERGENCY VEHICLE. RIGHT NOW YOU'VE ONLY GOT ONE WAY IN AND OUT. IT'S AN ALTERNATIVE ROUTE TO ROWLETT. CURRENTLY YOU COME OUT OF THE EXISTING ROAD, YOU CAN ONLY TURN RIGHT ON MERRITT ROAD AND YOU GOT TO GO TO GEORGE BUSH AND/OR THROUGH SAXY AND COME BACK.

THIS IS IMPROVED ACCESS TO GET TO SCHOOLS AND DOWN TO ROWLETT FOR SHOPPING. IT ALSO IMPROVES THE COMMERCIAL DEVELOPMENT IN THE AREA. HAVING THAT INTERSECTION THERE IS ADVANTAGE FOR RETAIL AND COMMERCIAL DEVELOPMENT THERE. AND I KNOW THE REALTORS HERE.

I KNOW THEY'RE WORKING ON THIS NOW TO DEVELOP THE SITE.

THE ADVANTAGES, THE AFFORDABLE HOUSING FOR HERE.

IT IMPROVES BUSINESS OPPORTUNITIES IN ROWLETT.

BY THIS I MEAN, WHY DO PEOPLE MOVE? WELL, THEY MOVE BECAUSE THEIR FAMILY CHANGES.

THEY GET MARRIED. THEY HAVE KIDS, SO FORTH, SO ON.

THEY ALSO MOVE TO BE CLOSER TO THEIR JOB OR CLOSER TO JOBS.

YOU'VE GOT A LOT OF BUSINESS HERE AND TO HAVE A PLACE PEOPLE CAN BE CLOSE TO BY IS GOOD FOR BUSINESS.

IF YOU'RE NOT MAKING A LOT OF MONEY AND YOU'VE GOT A JOB HERE AND CAN'T AFFORD TO BUY A HOUSE HERE, YOU HAVE TO DRIVE IN FROM SOMEPLACE ELSE. THAT'S TRAFFIC.

THIS REDUCES TRAFFIC AS WELL. AND, OBVIOUSLY, RESIDENCE BY THEIR GROCERIES AND THEIR GAS AND GO TO THE DOCTOR AND ALL OF THAT. LITTLE BIT ABOUT NUROCK.

ONE OF THE LARGER DEVELOPMENT FIRMS IN THE COUNTRY.

OFFICES TEXAS, GEORGIA, FLORIDA. WE'VE DONE A LOT OF STUFF VERTICALLY INTEGRATED COMPANY. THAT MEANS BESIDES DEVELOPMENT, WE DO OUR OWN CONSTRUCTION AND MANAGEMENT.

LONG TERM OWNERSHIP. I HAVE WORKED HERE A LONG TIME AND THEY'VE NEVER SOLD A PROPERTY.

THEY HOLD IT AND KEEP IT. THAT'S THE DEAL.

YOU'VE GOT STUFF ON HERE LIKE A COUPLE DEALS.

THIS IS HERITAGE PARK. VERY NICE NEIGHBORHOOD.

THREE STORY. TOTALLY FULL.

WORKED ON THAT ONE. THE OTHER ONE IS A VERY NICE RELATIVELY NEW PROJECT IN TYLER. FULL, DOING VERY, VERY WELL.

AND I'LL OPEN UP FOR QUESTIONS. THERE'S MY CONTACT.

IF YOU NEED MY PHONE NUMBER. MY STAFF HAS THAT.

I'M AVAILABLE TO ANSWER QUESTIONS.

WE HAVE A COUPLE OTHER PEOPLE. >> THANK YOU VERY MUCH, DAN.

APPRECIATE IT. SO, COUNCIL, WHAT QUESTIONS DO

YOU HAVE? >> YOU SAID YOU OWN ALL OF YOUR PROPERTIES THAT YOU'VE DEVELOPED AND YOU'VE OWNED THEM THROUGHOUT

THE LIFE OF THE PROPERTY? >> YES.

>> WHAT'S YOUR OLDEST PROPERTY? 2002 IS WHAT I'M SEEING HERE.

>> THE OLDEST ONE IN TEXAS DIAMOND HILL.

IT'S 18 YEARS OLD. >> 2002.

YEAH, RIGHT, 2002. THAT ONE'S STILL FULL AND UPKEEP

[00:15:02]

IS STILL -- >> CORRECT.

>> WHAT'S THE RENT ON THOSE? >> IT'S AN AFFORDABLE 4%

AFFORDABLE, SAME AS THIS. >> DO YOU HAVE PICTURES?

>> WHAT IS IT CALLED AGAIN? >> RESIDENCES AT DIAMOND HILL.

IT'S IN FT. WORTH. NORTH SIDE OF FT. WORTH.

IT'S A TOWNHOME DEVELOPMENT. IT'S STILL AN APARTMENT BUILDING. IT'S BEEN AROUND FOR AWHILE.

>> WHY DID YOU LEAVE THE TABLE?

>> I HAVE A QUESTION. I HAVE A QUESTION ABOUT THE RENT. SO, YOU HAVE TO MAKE UNDER --

MAXIMUM $49,000, WHATEVER IT IS. >> OR LESS.

>> OR LESS. YOU SAID RENT WAS $900 FOR A BEDROOM. DOES THAT COME DOWN IF PEOPLE

MAKE LESS MONEY? >> NO.

>> NO, NOT ON A PROPERTY LIKE THIS.

>> THERE'S DIFFERENT TYPES OF PROPERTIES THAT DO THAT.

>> THE 9% ONES HAVE TO TERRACE THEIR -- I WON'T GO INTO TOO

MUCH DETAIL. >> 4% DEALS HAVE AMI REQUIREMENTS AND THE RENTS ARE CONSISTENT AMONG TENANT TO

TENANT. >> WE HAVE TO DO A UTILITY ALLOWANCE CALCULATION TO ESTIMATE WHAT UTILITIES THE RESIDENTS HAVE TO PAY. ELECTRICITY AND GAS, ELECTRIC, IF WE METER THEM. THAT'S COMPLICATED.

AND THE RENTS PLUS THE UTILITY IS THERE.

IF THE UTILITY ALLOWANCE IS 80 BUCKS FOR TALKING PURPOSES.

AND THAT'S THE MAXIMUM. BUT EVEN IN 2008, WE WERE ABLE TO GET MAXIMUM BECAUSE THE MARKET IS CERTAINLY A LOT

HIGHER. >> THANK YOU.

>> WE TALKED ABOUT THAT THIS REQUIRES A MIXED USE ZONING.

SO I WANT YOU TO SAY AGAIN WHAT THOSE REQUIREMENTS ARE.

AND THEN, DAN, I DIDN'T UNDERSTAND ANY PART OF YOUR CONVERSATION IN REGARD TO MEETING THOSE REQUIREMENTS.

>> I'LL VERIFY. >> THE ZONING ON THE PROPERTY IS AN URBAN NEIGHBORHOOD. THERE IS A LAW THAT STATES IF YOU ARE DOING -- IF YOU ARE BUILDING A MULTIPROPERTY DEVELOPMENT YOU HAVE TO HAVE INTEGRATION OF LAND USE.

THAT'S WHAT I WAS REFERRING TO, WHEREBY, A MINIMUM OF 20% MIXED RESIDENTIAL, MIXED USE HAVE TO BE INCORPORATED IN THE DEVELOPMENT PROGRAM. SO IT REQUIRES A READY REQUIREMENT WHICH SHOWS IF THAT MIXED USE CONCEPT IS BEING INCORPORATED IN THE DEVELOPMENT. THE CAVEAT HERE IS THE APPLICANT IS PROPOSING, FROM WHAT WE HAVE SEEN, IS JUST THIS PIECE.

WE HAVE NOT OBVIOUSLY SEEN ANY AT THIS POINT, IT IS THERE BUT WE HAVE NOT SEEN THE MIXED USE COMPONENT HERE.

IF THEY'RE DOING HORIZONTAL INTEGRATION AS WAS AN EARLIER CONVERSATION, WE HAVEN'T SEEN HOW THAT WOULD BE LAID OUT.

AT THIS POINT WE'RE ONLY LOOKING AT MULTIPROPERTY HERE IN THE RED AREA. WE WOULDN'T KNOW.

>> OKAY. THAT'S WHAT I HEARD.

DO YOU WANT TO ADDRESS THAT? >> YES.

WE'RE BUYING 15 ACRES OF THE 30 SOME ACRE TRACT.

THE SELLER IS WILLING TO DO REGULATING WHICH WILL MEET THE REQUIREMENTS OF THE ZONING CODE TO PROVIDE ON THE OTHER TRACTS OF LAND THE REQUIRED MIXED USE DEVELOPMENT.

>> REGULATED PLAN IS NOT A DEVELOPMENT.

>> AND WE'D DO A LAND USE RESTRICTIVE AGREEMENT BECAUSE IF IT'S NECESSARY OR IF THE CITY REQUIRES IT.

>> I DON'T KNOW WHAT THAT IS. >> THAT'S A DEED RESTRICTION.

>> IT DOESN'T MEAN IT'S BUILT. >> IT DOESN'T MEAN IT'S BUILT.

>> I JUST WANT YOU TO UNDERSTAND THE ZONING ON THIS PIECE OF PROPERTY IS A TRUE MIXED USE ZONING.

MY EXPECTATION IS THAT THE DEVELOPMENT IS A MIXED USE

[00:20:05]

DEVELOPMENT. CONCURRENT, I AM NOT AGAINST AFFORDABLE HOUSING. I THINK WE NEED AFFORDABLE HOUSING IN THIS TOWN TO SOME EXTENT.

I HAVE HAD THIS DISCUSSION IN AN OPEN FORUM.

BUT WE ARE VERY, VERY -- I WAS GOING TO SAY STRETCHED.

WHAT WE PUT IN THIS NORTH SHORE IS INCREDIBLY IMPORTANT.

AND THERE'S A REASON THAT WE HAVE THIS ZONING IN PLACE FOR TRUE MIXED USE DEVELOPMENT. THAT'S ME TALK.

BUT I HAVE A LOT OF OTHER QUESTIONS, TOO.

>> OKAY. WELL, REPRESENTATIVE OF THE PERSON THAT CONTROLS THE BALANCE OF THE LAND IS HERE.

>> WE'RE NOT TALKING ABOUT THE BALANCE OF THE LAND.

WE'RE TALKING ABOUT THE DEVELOPMENT.

I'M SORRY. THAT'S WHAT WE'RE TALKING ABOUT.

>> WE ARE UNABLE TO ENFORCE THE RESTRICTION.

IF SOMEONE CAME IN, WE WOULD HAVE TO SEE THE FULL SCALE OF

THE COMPREHENSIVE DESIGN OF IT. >> AND THE REGULATING PLAN DOES

NOT PROVIDE FOR THAT? >> IT WOULD HAVE TO.

>> YEAH. 'CAUSE WE WOULD PROVIDE YOU WITH A REGULATING PLAN THAT WOULD MEET THE REQUIREMENTS FOR THE

WHOLE PROPERTY. >> OKAY.

SO LET ME ASK ANOTHER QUESTION. SO IN THE EFFECTIVE SUMMARY IT SAYS THAT, THIS IS AN COMBINATION OF AFFORDABLE AND MARKET RATE. IS THAT JUST A TYPO?

>> YES. >> OKAY.

>> ALL I HEAR WAS AFFORDABLE. OKAY.

AND THIS WAS PROPOSED 240 UNITS. >> 360.

>> I'M LOOKING BEHIND YOU NOW. WHAT WAS THE NUMBER OF UNITS?

>> 248. >> I DON'T KNOW WHO I'M ASKING THIS QUESTION TO, BUT WHAT ELSE IS IN THE PIPELINE? WE HEARD A TRANSACTION LAST MEETING.

NOW HEARING ANOTHER ONE TODAY. WHAT ELSE IS IN THE PIPELINE?

>> WE TALKED WITH THEM. IT WOULD BE THE THIRD ONE THAT WE BUILT.

>> IF I COULD ADD. >> CAN YOU TELL EVERYBODY WHO

YOU ARE? >> EXECUTIVE DIRECTOR FOR THE HOUSING CORPORATION. THIS IS OUR THIRD ONE.

ALL THAT I HAVE GOT ON THE BOOKS RIGHT NOW.

THIS IS REALLY THE LAST PIECE OF PROPERTY THAT EVEN HAS ANY MULTIFAMILY ZONING THAT WE WOULD NOT HAVE TO DO THROUGH A ZONING CHANGE. SO OUR HOPES HSC RESPECTS THE COUNCIL WANTING TO HAVE A POSITIVE AGREEMENT.

SO WE TRIED TO GET CREATIVE WITH THIS ONE IN PROVIDING A ROAD ON THE THOROUGHFARE PLAN THAT THE CITY WOULD EVENTUALLY HAVE TO BUILD WITH THOSE TAX DOLLARS, GIVING YOU THAT VALUE IN YEAR ONE RATHER THAN THE PRESENT VALUE OF THOSE 15 YEARS, WHENEVER YOU SPREAD THAT OUT, TO OPEN UP THAT ECONOMIC REDEVELOPMENT THERE. WE'VE GOT THE BROKERS HERE THAT REPRESENT THE LAND OWNER THAT WE WILL PUT TOGETHER A REGULATED PLAN FOR THAT 15 PLUS THE 4 TO COVER ALL OF THAT.

SO WE'RE TRYING TO GET ALL OF THOSE RESPONSES IN THERE THAT WE KNOW THE COUNCIL WANTS. WE'VE GOT A TOTAL OF 76 UNITS BEING BUILT FOR FAMILIES IN AFFORDABLE HOUSING IN THE CITY.

A PLAN CLOSE TO 6,000 APARTMENTS BETWEEN WHAT'S ON THE GROUND AND UNDER CONSTRUCTION AND BEING PLANNED.

I SENT COUNCIL AN ARTICLE TODAY THAT 50% RIGHT NOW.

WE'VE GOT TO BE ABLE TO HAVE SOME MEANS OF THIS HARD FAST, HARD WORKING PEOPLE LIVING PAYCHECK TO PAYCHECK TO HAVE A PLACE TO LIVE AND TO HAVE THE WORK FORCE HERE FOR WHEN SAPPHIRE BANK COMES IN. IT WILL TAKE US TO ABOUT DECEMBER 2023 TO GET SOMETHING DONE LIKE THIS, TO GET IT IN LINE SO WE CAN HAVE THE WORKERS THERE.

WE'VE HAD TWO BEFORE YOU. WE'VE GOT ONE COUNCIL IS WILLING TO DO. THIS IS MY LAST SHOT, THIS IS MY LAST PIECE OF LAND THAT IT'S BEEN ZONED FOR.

WE'RE HOPING COUNCIL CAN SEE FIT TO AT LEAST ALLOW THIS TO GO THROUGH THE PROCESS AND SEE WHAT THIS DEVELOPER CAN DO AND PUT THIS TOGETHER. I REALLY THINK IT'S WHAT YOU'RE LOOKING FOR IF YOU GIVE HIM THE TIME TO DO IT.

WE DON'T HAVE ALL THE DETAILS AT THIS TIME.

THAT'S I GUESS MY TWO CENTS ON THE WHOLE THING.

HAPPY TO ANSWER ANY QUESTIONS. >> COUNCIL?

[00:25:05]

QUESTIONS? >> NO.

JUST A COMMENT ON THIS. THIS IS JUST, SAY, NO OBJECTION TO MOVE THIS THING FORWARD. I'M IN FAVOR IN KIND OF MOVING THIS FORWARD, BECAUSE THIS IS AN AREA THAT I THINK PROBABLY COULD BE AN AREA THAT WE COULD DO SOME MULTIFAMILY AND AN AFFORDABLE ONE. BUT MY PUSHBACK IS, AND WHY I WANT TO SEE MORE IS, I DO WANT TO KNOW WHAT THE CONVERSATION IS FOR THE REST OF THE LAND THAT'S THERE.

I WANT TO SEE WHAT KIND OF DEALS THAT YOU CAN WORK.

WE'RE ALSO NOT IN THE BUSINESS OF WINGING TAX IN ORDER TO BE ABLE TO SUPPORT THE SERVICES THAT ARE GONNA BE NEEDED FOR THESE MULTIFAMILY AND FOR THE RESIDENTS THAT ARE OUT THERE.

I UNDERSTAND, I APPRECIATE YOU BEING CREATIVE IN TRYING TO DO THAT. I COULD PROBABLY GO GET A MARKER ACROSS THE STREET AND HE WOULD BUILD THE ROAD.

AND SO I CAN'T GIVE UP DOLLARS FROM THE CITY TO GET SERVICES ESPECIALLY WITH SENATE BILL 2 GOING IN NEXT YEAR -- THIS YEAR.

WE'RE GOING TO HAVE TO AFFECT THIS YEAR'S BUDGET NEXT YEAR, THIS YEAR. THAT'S GOING TO BE -- WE'VE GOT TO LOOK AT ALL THAT. I CAN'T FOREGO 15 YEARS OF SERVICES FOR A ROAD. TO ME, I HAVE NO OBJECTION WITH YOU MOVING IT FORWARD TO WORK WITH THE LAND OWNER, TO SEE HOW YOU CAN BE CREATIVE. IF YOU CAN TRY TO WORK THOSE DOLLARS TO HELP THOSE COMMERCIAL PEOPLE DEVELOP, TO HELP WITH THAT ROAD. THAT MIGHT BE A REALLY ENTICING ALL TOGETHER PROPOSAL THAT I WOULD REALLY LIKE TO LOOK AT.

SO FOR ME, I'M WILLING TO SUPPORT, UNDER NO OBJECTION, TO MOVE THIS THING FORWARD. BUT I WILL SAY THAT I WOULD NOT BE SUPPORTIVE IN LIEU OF A PILOT PAYING FOR THE ROAD.

AND THAT'S GONNA MAKE THAT PROJECT REALLY, REALLY HARD, JUST KNOWING WHAT WE HAVE TO PREPARE FOR IN THE FUTURE.

THOSE ARE MY TWO CENTS. >> ARE YOU SAYING YOU WOULD WANT

THE ROAD DONE? >> YES.

>> I JUST WANTED TO MAKE SURE THAT WAS CLEAR.

>> AND SOME COMMERCIAL ON SOME OF THOSE CORNERS.

>> THAT'S REALLY MY CAVEAT. I DON'T WANT A PLAN FOR MICKED USE. I WANT A MIXED USE.

I PERSONALLY AM NOT GOING TO APPROVE ANYTHING UP THERE THAT BUILDS 100% AFFORDABLE HOUSING WITHOUT THE MIXED USE COMPONENT.

NOT GONNA HAPPEN. FOR MY VOTE.

>> I AGREE. >> MY OTHER POINT IS, I DON'T THINK WE NEED, YOU KNOW COUNCIL AGREED AND THERE WAS A MIXED VOTE, BUT COUNCIL AGREED TO MOVE FORWARD ON A LETTER OF NO OBJECTION FOR THE LAST ONE THAT YOU BROUGHT FOR US.

I AM CERTAINLY NOT GOING TO BE IN SUPPORT OF TWO.

I AM NOT. FROM AN AFFORDABLE HOUSING STANDPOINT BEING BUILT AT THE SAME TIME.

YOU LOOK A LITTLE SURPRISED THERE.

>> MARKET WILL SHOW THAT THOSE BOTH CAN BE ABSORBED.

>> MARKET CAN SHOW WE CAN BUILD MULTIFAMILY UNTIL DOOMSDAY.

>> TRUE. >> THAT DOESN'T MEAN THAT'S

WHAT'S GOOD FOR THE CITY. >> I WOULD CONTEND THAT THE CONVERSATION IS NOT ABOUT MULTIFAMILY.

THE CONVERSATION IS ABOUT HOUSING FOR PEOPLE WORKING PAYCHECK TO PAYCHECK AND WE DON'T HAVE A PLACE FOR THEM TO

LIVE IN THEIR CITY. >> I AGREE.

I SAID ME PERSONALLY IRK AOEPL NOT GOING TO SUPPORT IT.

I'M GOING TO ASK IF THERE'S ANY COMMENTS FROM ANYBODY IN THE AUDI AUDIENCE?

>> I WOULD DISAGREE. ALSO TO ADD ON THE CURRENT INTEGRATION OF MULTIFAMILIES IN THE CITY AT THE TIME.

THAT'S ANOTHER REASON WHY I THINK I'M NOT GOING TO BE ABLE

TO SUPPORT THE APPLICATION. >> I WILL SAY I AGREE WITH MATT.

I DON'T THINK THAT WE CAN EXCHANGE THE PILOT FOR THAT, EVEN THOUGH I UNDERSTAND IT'S NEEDED FOR THAT PIECE OF PROPERTY TO BE DEVELOPED. I HAVE A PROBLEM WITH THE 100% MULTIFAMILY IN THAT SPOT AND I KNOW THAT WE NEED THE AFFORDABLE HOUSING IN OUR CITY, BUT WE'VE BEEN VERY CONSISTENT AND

[00:30:01]

DILIGENT IN STANDING OUR GROUND FOR NORTH SHORE DEVELOPMENT.

AND SO HAVING THAT RETAIL COMPONENT IS EXTREMELY IMPORTANT TO US. AND WE JUST WENT THROUGH OUR COMPREHENSIVE PLAN. I'M WITH MATT.

WE NEED THE PILOT AGREEMENT FOR THE SERVICES TO BE PROVIDED.

>> WOULD ANYONE FROM THE AUDIENCE LIKE TO SPEAK?

>> PAIGE TURNER. HI THERE.

THE LAND OWNER IS OPEN TO -- 4.1 ACRES THERE ON THE CORNER MARKED OUT FROM THE 15 ACRES. AND SO THE SELLER IS OPEN TO THAT PROPERTY BEING SET ASIDE FOR THE REGULATING PLAN FOR

COMMERCIAL USE. >> IS THAT 20%?

>> NO. RIGHT.

THAT'S WHY IT WOULD HAVE TO GO UP.

>> THANK YOU, MA'AM. WE APPRECIATE THAT.

THERE'S ONE THING WE'VE BEEN VERY EMPHATIC ABOUT.

WE'RE NOT GONNA LET THIS GET PIECE MEALED IN THE NORTH SHORE.

THERE'S A REASON THAT'S ZONED MIXED USE.

FROM THE AUDIENCE? CAN WE HAVE AN TUNE TO PUT THE PLAN TOGETHER? IF WE WERE TO AGREE TO A LETTER OF NO OBJECTION TONIGHT, THEY WOULD MOVE FORWARD WITH THEIR APPLICATION TO TRY TO QUALIFY FOR THIS.

THEY COULD, THEY WOULD THEN FILE A REGULATING PLAN FOR THE ENTIRE PIECE OF PROPERTY. THEN IF IT MET THE 20% MIXED USE REQUIREMENT, THEY WOULD NOT NEED TO COME BACK TO US FOR ANY ADDITIONAL APPROVAL. IT WOULD NOT REQUIRE THEM TO BUILD THAT 20% CONCURRENT. ANYBODY DISAGREE WITH WHAT I

SAID? >> THAT'S MY GUESS.

>> DOES THAT ANSWER YOUR QUESTION?

>> YES. IF WE OKAY THEM TO MOVE FORWARD, WE'VE PRETTY MUCH IMPROVED THE ENTIRE PROJECT.

>> THEY COULD ALSO BUILD THE 20%.

>> I UNDERSTAND. I'M SAYING IF WE'RE APPROVING --

>> BECAUSE IT'S ZONED NEIGHBORHOOD, THEY COULD FILE THE REGULATING PLAN WITH THE 20% MIXED USE.

>> CAN I ASK THIS QUESTION? WE HAD A LOT OF DISCUSSION ABOUT COMMERCIAL GOING FIRST. IN THE URBAN NEIGHBORHOOD --

>> COMMERCIAL. >> OKAY.

THANK YOU. >> ONLY COMMERCIAL CENTER ZONING.

[00:35:02]

>> IF I MAY INTERJECT FOR JUST A SEC

SECOND. >> I WANT TO MAKE A COMMENT.

>> HANG ON. >> IF THE APPLICANT CHOSE TO JUST LOOK AT THE 15 ACRES THEY'RE LOOKING AT, THEY COULD DO A MIXED USE PROGRAM FOR THAT. CORRECT?

>> YEAH. >> THAT WOULD BE FINE.

>> IF YOU ADD -- FROM A REAL ESTATE STANDPOINT, IT'S LOGICAL.

COMBINATION OF THE TWO, FOUR ACRES AND 12 ACRES AND THREE ACRES OF ROAD IS DEDICATED. THAT'S OVER 20% ACREAGE WISE.

THAT WOULD WORK. I UNDERSTAND YOUR ISSUES.

I UNDERSTAND THAT. WE COULD DEFINITELY DO A PLAN THAT WOULD MEET THOSE REQUIREMENTS.

>> DID YOU WANT TO SAY SOMETHING?

>> YES. >> CAN YOU STAND AND SAY YOUR

NAME? >> I'M BOARD PRESIDENT OF THE ROWLETT HOUSING FINANCE CORPORATION.

ONE THING WHEN COMMERCIAL DEVELOPMENT COMES INTO AN AREA, THEY LOOK AT THE AVAILABLE LABOR FORCE.

IF THERE'S NOT A LABOR FORCE THERE, MANY TIMES THEY WON'T GO THERE. SOMETIMES THEY WILL EXPECTING THE LABOR TO COME, BUT NOT ALWAYS.

THEY WILL LOOK AT THAT BEFORE THEY COME.

IT KIND OF GOES TOGETHER. AND SO IF WE DO BOTH OF THESE TOGETHER, THEN THAT WOULD WORK. BUT IF WE RESTRICT ONE BECAUSE OF THE OTHER'S NOT SOLIDIFIED YET, WE MAY NOT EVER HAVE TO CAP

IT AT ALL. >> THANK YOU SO MUCH, BARBARA.

APPRECIATE IT. I APPRECIATE YOU, TOO, RICK.

>> LET ME ASK THIS. IF WE APPROVE THE LETTER OF NO OBJECTION THOUGH, THAT DOESN'T CONFIRM OR SOLIDIFY WHAT THAT DEAL IS YET, RIGHT? THAT'S NOT TALKING ABOUT THE PILOT. THOSE GET WORKED OUT LATER,

CORRECT? >> CORRECT, BECAUSE THIS IS A TAX EXCEPT PROPERTY, UNDER THIS SCENARIO, THERE ARE NO PROPERTY TAXES. IT'S GONNA COME BACK TO US.

>> IT DOES THROUGH ZONING IF, IN FACT --

>> NO, IT DOESN'T. >> JUST THE PLAN?

>> HOW WILL IT BE STRUCTURED?

>> OR A NEGOTIATION OF A LETTER OF NO OBJECTION.

>> ONE POINT THAT THIS WOULD ALSO WORK IS IN THIS PARTICULAR CASE, SINCE THE ZONING IS ALREADY THERE, I THINK THAT MAY BE PART OF THE REASON. I'M JUST ASKING IF THAT'S WHY THEY'RE PROPOSING A SWATH FOR THE ROAD AS OPPOSED TO THE PILOT. IS THAT ONE OF THE REASONS? NO, IT'S NOT? FINANCING?

>> WE WERE OFFERING SOMETHING IN ADDITION TO THE FACT THAT WE

WERE -- >> THIS WOULD BE MY PROPOSAL BECAUSE I'M NOT WILLING TO MAKE THAT GAMBLE TONIGHT.

BUT WHAT I AM WILLING TO DO IS TABLE THIS AND LET YOU GO BACK AND MAYBE GET SOME MORE DUCKS IN A ROW AND COME BACK AND PRESENT IT AND LET US TAKE ANOTHER LOOK AT IT.

>> WE HAVE TIMELINES WITH THE STATE, WE PROBABLY CAN'T DO

THAT. >> THAT WOULD BE MY COMPROMISE.

>> MAYBE I CAN ADD WHILE EVERYBODY IS SITTING STILL.

OBVIOUSLY, THESE ARE RESTRICTED RENTS, SO GETTING TO A STABLIZED VACANCY RATE, STABLIZED NO OPERATING INCOME TAKES A LITTLE LONGER. YOU HAVE TO BUILD IT A LITTLE BIT MORE TO HAVE THE EXTRA MONEY TO DO THE PILOT OR TO DO THE ROAD IN THIS CASE. THE THOUGHT BEING WITH THAT ROAD, BEING ON THE CITY'S THOROUGHFARE PLAN R PUTTING THAT IN COULD JUMP START THAT ECONOMIC GROWTH IN THAT AREA FASTER, AND YOU WOULD GET BENEFITS BEYOND JUST THE ROAD ITS ITSELF.

>> THAT WAS THE THOUGHT PROCESS. >> IF YOU COULD SAY THAT COMMERCIAL IS GONNA HAVE TO CONCURRENTLY, WITH THIS DEVELOPMENT, I WOULD BE REALLY APT TO AGREE WITH YOU.

I'M NOT GONNA WAIT TEN, FIVE YEARS FOR THAT COMMERCIAL DEVELOPMENT TO COME IN BEHIND IT.

[00:40:02]

THAT'S THE STICKING PART OF IT. >> IT OBVIOUSLY TAKES AT LEAST A YEAR TO BUILD AN APARTMENT THIS SIZE OR MORE.

IT TAKES EVEN -- IT TAKES, GOSH, ANOTHER 14, 16 MONTHS TO LEASE IT OUT. WE'RE TALKING, THIS ISN'T GOING TO BE DONE FOR AWHILE. YOU USUALLY DON'T START UNTIL

YOU HAVE A CLIENT TO MOVE IN. >> FROM A REESTATE STANDPOINT, THAT'S MUCH MORE BENEFICIAL TO DO IT THAN WHERE THERE'S NO

VISIBILITY. >> SO, WE COULD PHAMAKE A DECIS NOW TO APPROVE OR NOT APPROVE, OR WE COULD ASK YOU TO COME BACK IF YOU WANT TO TRY TO MEET SOME OF THESE CONCERNS.

>> THIS IS SIMPLY A PRESENTATION.

WE DON'T HAVE A RESOLUTION ON THE AGENDA.

>> I UNDERSTAND. ARE WE PUTTING ONE ON THE

AGENDA? >> THAT WOULD BE THE DISCUSSION.

SORRY. >> YOU'RE GOOD.

I THINK THAT'S WHAT I WAS TRYING TO SAY.

>> COUNCIL? >> DO YOU WANT TO PUT IT ON THE

NEXT AGENDA? >> YES.

>> THERE IS NO MOTION. >> EXACTLY.

>> JUST PUT IT ON THE NEXT AGENDA.

>> OR WHENEVER, WHENEVER THEY'RE READY.

>> IS EVERYBODY OKAY WITH THAT? >> I'M GOOD WITH THAT.

>> OKAY. >> DO YOU UNDERSTAND OUR

OBJECTIONS, OUR CONCERNS? >> I DO.

>> SO IF YOU COULD TRY TO ALLEVIATE SOME OF THOSE CONCERNS, WE'LL BE GLAD TO RECONSIDER IT.

>> WE'LL DO WHAT WE CAN. >> THANK YOU.

>> THANK YOU. >> APPRECIATE YOUR TIME.

>> THANK YOU. >> ALL RIGHT.

COUNCIL, ANYBODY HAVE ANY QUESTIONS ABOUT THAT OR WANT ANYTHING REMOVED? WITH THAT, WE WILL --

* This transcript was compiled from uncorrected Closed Captioning.