STRATEGIC PRIORITY: Economic Development
AGENDA DATE: October 23, 2024
COUNCIL DISTRICT(S): 4
DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize a tax increment financing (“TIF”) development agreement and all other necessary documents with 900 E. Clarendon QOZB, LLC and/or its affiliates (“Developer”) in an amount not to exceed $2,681,864.00, payable from current and future Oak Cliff Gateway (OCG) TIF District Funds (“TIF Subsidy”), in consideration of the East Dock Redevelopment Project on property currently addressed as 900 East Clarendon Drive in Tax Increment Financing Reinvestment Zone Number Three (OCG IF District) in accordance with the City’s Economic Development Incentive Policy - Not to exceed $2,681,864.00 - Financing Oak Cliff Gateway TIF District Fund (subject to annual appropriations from tax increments)
Body
BACKGROUND
The East Dock Redevelopment Project (“Project”) is proposed to include the renovation and adaptive reuse of an existing vacant building totaling approximately 62,000 square feet located on approximately 3.41 acres of land currently addressed as 900 East Clarendon Drive (“Property”). The Property is generally located near the southeast corner of East Clarendon Drive and South Ewing Avenue. The proposed Project is within walking distance of the DART Dallas Zoo light rail station, Dallas Zoo, and Southern Gateway Deck Park (now Halperin Park). The Project is located in a Target Area pursuant to the City’s Economic Development Policy and Incentives Policy.
Over the past eleven months, the Office of Economic Development has been coordinating with the Developer to refine the project concept and work through an incentive application. The scope of the Project is summarized as follows:
• Developer’s exterior and interior renovation of approximately 62,000 square feet of existing vacant building space into leasable flexible commercial space for active uses including but not limited to, office, personal service, showroom, warehouse, and retail; and
• On-site improvements to include landscaping, publicly accessible green space, signage, lighting (site and pedestrian); and
• Streetscape improvements along Viola Street frontage.
The total Project cost is approximately $10,588,097.00, comprised of the following components: (i) property acquisition of $2,737,500.00, (ii) hard costs of $6,094,000.00, (iii) soft costs of $1,274,368.00 and (iv) financing costs of $482,229.00.
The Project’s design was reviewed by the City’s Urban Design Peer Review Panel (“Panel”) on April 12, 2024, and efforts by the Developer to create a unique redevelopment on the east side of the I-35 was applauded. The Developer made changes to the Project’s design to accommodate recommendations by the Panel.
The Office of Economic Development engaged an independent outside underwriter to extensively review the Project and the Developer’s incentive application. In consultation with the underwriter, staff structured the proposed TIF Subsidy as gap financing to make the Project financially feasible. The Office of Economic Development negotiated a detailed Letter of Intent (“LOI”) with the Developer and on September 6, 2024, the Developer executed the LOI accepting all terms and conditions. The Resolution accompanying this agenda item contains the detailed terms and conditions of the proposed TIF Subsidy and development agreement.
Staff’s recommended TIF Subsidy of $2,681,864.00 is anticipated to be deployed from the Clarendon/Beckley/Kiest Sub-District of the OCGTIF District according to the following budget categories: (i) public infrastructure improvements $365,000.00 and (ii) economic development grant $2,316,864.00.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction December 2025
Complete Construction December 2027
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 11, 1992, the City Council authorized the establishment of the OCG TIF District by Ordinance No. 21466, as amended.
On February 12, 1997, the City Council authorized the adoption of the OCG TIF District Project Plan and Reinvestment Zone Financing Plan by Ordinance 23033, as amended.
On September 23, 2024, the Oak Cliff Gateway TIF District Board of Directors reviewed the proposed Project and unanimously recommended City Council authorization of a development agreement with the Developer in an amount not to exceed $2,681,864.00.
The Economic Development Committee was briefed by memorandum regarding this matter on October 7, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13352206&GUID=9BA4A5D5-CD03-410E-A0C1-5634A299B7BE>
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Oak Cliff Gateway TIF District Fund |
$0.00 |
$0.00 |
$2,681,864.00 |
DEVELOPER/EXECUTIVE
900 E. Clarendon QOZB, LLC
Mr. Andrew Ramler, President
MAP
Attached