PILLAR: Growing
AGENDA DATE: November 10, 2026
COUNCIL DISTRICT(S): 7
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
Authorize an amendment to the South Dallas/Fair Park Opportunity Fund Chapter 380 Economic Development Loan Agreement and related documents, including the Deed of Trust and Promissory Note, between the City of Dallas and Southfair Community Development Corporation as authorized by City Council on November 13, 2024, by Resolution No. 24-1648 regarding the Malcolm’s Point Retail Project to: (1) extend the amortization period by five years (from 25 to 30 years) and allow for an additional year of interest-only payments according to the revised amortization schedule attached as Exhibit A; (2) subordinate the City’s senior lien position to Texas Mezzanine Fund; and, as consideration, (3) increase Southfair Community Development Corporation’s minimum investment requirement by $50,000.00 (from $1,650,000.00 to $1,700,000.00), in accordance with the City’s Economic Development Incentive Policy and the South Dallas/Fair Park Opportunity Fund Program Statement - Financing: No cost consideration to the City
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
On November 13, 2024, the City Council authorized (1) a Chapter 380 Economic Development Loan Agreement with Southfair Community Development Corporation in an amount not to exceed $1,190,354.00 (sourced from the South Dallas/Fair Park Opportunity Fund) and (2) a Chapter 373 Community Development Grant Agreement with Southfair Community Development Corporation in an amount not to exceed $312,500.00 (sourced from the Public Private Partnership Fund) for capital improvements and construction costs related to the development of the Malcolm’s Point Retail Project to be located at 2807 Al Lipscomb Way, Dallas, Texas 75215, in accordance with the City’s Economic Development Incentive Policy and the South Dallas/Fair Park Opportunity Fund Program Statement.
Led by Southfair Community Development Corporation, the Malcolm’s Point Retail Project (“Project”) is a new ground-up development project consisting of a 4,859 square foot building located at the corner of Malcolm X Boulevard and Al Lipscomb Way. Southfair Community Development Corporation is a community development corporation with a long history of operations in the South Dallas/Fair Park neighborhood, investing more than $35 million in the South Dallas/Fair Park area over the past 30 years. The Project is located within the boundaries for the South Dallas/Fair Park Opportunity Fund and is also within an Economic Development Target Area.
At the time of City Council approval in November 2024, the Project was estimated to cost $2.3 million, and Texas Mezzanine Fund was committed to provide a $675,000.00 subordinate loan to support the Project. Funding for the Project closed on October 17, 2025, and construction started November 17, 2025. Since November 2024, the actual Project costs have increased to approximately $3.0 million primarily due to increases in construction costs. As a result, Texas Mezzanine Fund’s loan increased from $675,000.00 to $1.4 million. Due to the larger loan size, Texas Mezzanine Fund has requested that the City subordinate its $1,190,354.00 loan to Texas Mezzanine Fund.
Texas Mezzanine Fund has also requested that the City provide for an additional year of interest-only payments, which would match the repayment terms of the Texas Mezzanine Fund loan. Additionally, the amortization terms of both the City and the Texas Mezzanine Fund loans would be extended by 5 five years (from 25 years to 30 years). The repayment period for both the City loan and the Texas Mezzanine Fund loan would remain unchanged at 10 years.
These requested changes will reduce the monthly debt service on the City’s loan by approximately $600.00 per month and provide a year for lease-up and operations to stabilize before requiring principal and interest payments. Together, these changes are intended to increase cash flow to the Project to help put the Project on track for success.
In consideration of the amendment, Southfair Community Development Corporation’s minimum investment requirement will be increased by $50,000.00 (from $1,650,000.00 to $1,700,000.00).
Construction of the Project is substantially complete, and Southfair Community Development Corporation celebrated its ribbon-cutting on October 8, 2026. Southfair Community Development Corporation has also been awarded a Shipley Do-Nuts franchise that will occupy approximately 1,500 square feet of the new building (scheduled to open early next year).
ESTIMATED SCHEDULE OF PROJECT
Begin Construction November 2025
Complete Construction December 2026
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 30, 2024, the South Dallas/Fair Park Opportunity Fund Advisory Board (SDFPOF Board) reviewed the proposed Project and unanimously recommended approval of a SDFPOF senior loan in an amount not to exceed $1,190,354.00.
On November 4, 2024, the Economic Development Committee was briefed on the proposed Project.
On November 13, 2024, the City Council authorized (1) a Chapter 380 Economic Development Loan Agreement with Southfair Community Development Corporation in an amount not to exceed $1,190,354.00 (sourced from the South Dallas/Fair Park Opportunity Fund) and (2) a Chapter 373 Community Development Grant Agreement with Southfair Community Development Corporation in an amount not to exceed $312,500.00 (sourced from the Public Private Partnership Fund) for capital improvements and construction costs related to the development of the Malcolm’s Point Retail Project to be located at 2807 Al Lipscomb Way, Dallas, Texas 75215, by Resolution No. 24-1648.
On October 26, 2026 the SDFPOF Board reviewed the proposed amendment and unanimously recommended approval.
The Economic Development Committee was briefed by memorandum regarding this matter on November 2, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=16098612&GUID=37B6F3C0-0952-4E29-91B6-45044E5C0042>
FISCAL INFORMATION
No cost consideration to the City.
OWNER/EXECUTIVE
Southfair Community Development Corporation
Annie Evans, Chief Executive Director
MAP
Attached