PILLAR: Growing
AGENDA DATE: November 12, 2025
COUNCIL DISTRICT(S): 3
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize a Chapter 380 economic development grant agreement and all other necessary documents with RG University Hills, LLC, a Texas limited liability company and/or its affiliates in an amount not to exceed $23,500,000.00 in consideration of the Rivulet Phase 1 Project, a master-planned and mixed-use development proposed on real property currently undeveloped and addressed as 6400 University Hills Boulevard, in accordance with the Economic Development Incentive Policy - Total not to exceed $23,500,000.00 - Financing: Economic Development & Housing Development Fund (2012 General Obligation Bond Fund) ($503,533.00), Economic Development Fund (I) (2017 General Obligation Bond Fund) ($1,721,521.00), Economic Development (G) Fund (2024 General Obligation Bond Fund) ($14,411,515.00), and Infrastructure Investment Fund ($6,863,431.00) (subject to current and annual appropriations)
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
In 2023, RG University Hills, LLC, a Texas limited liability company and/or its affiliates (“Developer”) submitted a development incentive application to the Office of Economic Development seeking gap funding to make Rivulet Phase 1 (“Project”) financially feasible.
Rivulet is located west of University Hills Boulevard and north of Camp Wisdom Road. The Property is bisected by Ricketts Branch Creek and is approximately 150 feet from the University of North Texas at Dallas campus.
Rivulet is a mixed-use, master-planned, and multi-phased development to include a mix of single-family residential, multi-family residential, commercial, and open space uses in an area of southern Dallas known as the Education Corridor. The development will aim to bring needed goods and services, housing, and an opportunity to create an active gathering place for the community with a mix of buildings in a wooded setting surrounding Ricketts Branch Creek. Phase 1 of the Rivulet development will encompass approximately 71 acres and focus on the delivery of horizontal infrastructure improvements essential for supporting future vertical development.
In 2022, by Ordinance 32314, the City Council approved the Developer’s rezoning request as an amendment to PD 49 to enable the proposed Project and include design standards. The rezoning request was found to be in conformance with the UNT - Dallas Area Plan adopted by the City Council in 2009.
With the Phase 1 Project, Developer will:
o complete all horizontal infrastructure improvements necessary to make the Project building pad sites shovel-ready, and
o convey at least 300 platted lots to home builder(s) for the construction and sale of a mix of single-family attached townhomes and single-family detached homes, and
o convey a platted lot to a multi-family developer for the construction of a minimum of 200 rental multi-family residential units, and
o construct either of the following neighborhood amenities:
(i) an air-conditioned club house and pool, or
(ii) at least 4 of the following: covered pavilion, grill/picnic area, dog park, neighborhood trails, playground, or a multi-sport court
The anticipated total cost of the Project, including costs expended to-date, is approximately $47,250,506, comprised of the following: (i) land acquisition costs of approximately $6,157,236; (ii) hard construction costs of approximately $27,897,437; (iii) professional fees of approximately $3,144,419; (iv) soft costs of approximately $3,350,137; (v) financing costs of approximately $3,143,069; and (vi) construction management fee of approximately $3,558,208.
The Project is located in an Economic Development Target Area as designated in the City’s Economic Development Incentive Policy and is in alignment with the City’s Economic Development Policy. Based on a comprehensive review of the development incentive application and extensive consultation with the City’s independent outside underwriter, staff structured a proposed economic development Grant in an amount not to exceed $23,500,000 (“Grant”) as gap financing to make the project financially feasible and negotiated a detailed Letter of Intent (“LOI”) with the Developer. On October 3, 2025, the Developer accepted staff’s proposed incentive and executed the LOI.
The Grant shall be sourced as follows:
• $503,533.00 from the City’s 2012 General Obligation Bond Fund (Proposition 3: Economic Development/Housing); and
• $1,721,521.00 from the City’s 2017 General Obligation Bond Fund (Proposition I: Economic Development/Housing-City Council District 3 discretionary allocation); and
• $14,411,515.00 from the City’s 2024 General Obligation Bond Fund (Proposition G: Economic Development/Housing); and
• $6,863,431.00 from the City’s Infrastructure Investment Fund.
The Grant shall be earned by and disbursed to Developer as follows:
• Grant Installment No. 1 in an amount not to exceed $4,712,610.00 shall be payable as reimbursement for actual capital costs incurred by Developer for Developer’s completion of design and construction of the specific Phase I public infrastructure improvements (public rights-of-way grading; utilities excavation) as depicted in Exhibit B to the Resolution.
• Grant Installment No. 2 in an amount not to exceed $5,791,202.00 shall be payable as reimbursement for actual capital costs incurred by Developer for Developer’s completion of design, construction, and City acceptance of the specific Phase II public infrastructure improvements (stormwater; sanitary sewer; water) as depicted in Exhibit C to the Resolution.
• Grant Installment No. 3 in an amount not to exceed $3,380,005.00 shall be payable as reimbursement for actual capital costs incurred by Developer for Developer’s completion of design, construction, and City acceptance of the specific Phase III public infrastructure improvements (roadway paving) as depicted in Exhibit D to the Resolution.
• Grant Installment No. 4 in an amount not to exceed $9,616,183.00 shall be payable upon Developer’s completion and submission of documentation evidencing completion of each of the requirements set forth in the Chapter 380 economic development grant agreement and all other necessary documents (“Agreement”).
The Resolution accompanying this agenda item contains the detailed terms and conditions of the proposed economic development grant agreement.
The Rivulet master plan was reviewed by the City’s Urban Design Peer Review Panel (“UDPRP”) on April 28, 2023, and the Developer has submitted responses satisfying the recommendations by the UDPRP.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction December 2027
Complete Construction December 2029
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Economic Development Committee was scheduled to be briefed by memorandum regarding this matter on November 3, 2025 <https://cityofdallas.legistar.com/View.ashx?M=F&ID=14894845&GUID=B302DFF0-25CD-48D2-9278-5A793C9652B2>. However, the Economic Development Committee was unable to review this matter due to insufficient time.
The City Council was briefed by memorandum regarding this matter on November 7, 2025. <https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcityofdallas.legistar.com%2FView.ashx%3FM%3DF%26ID%3D14894845%26GUID%3DB302DFF0-25CD-48D2-9278-5A793C9652B2&data=05%7C02%7Cvhee.anastacio%40dallas.gov%7C9419f7f547224de896d908de1ce683f1%7C2935709ec10c4809a302852d369f8700%7C0%7C0%7C638979973533272853%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=DbTriFWbr%2Bo813lsY%2FECIOdsM%2BCiGJSl8pU%2Bl3eDWYo%3D&reserved=0>
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Economic Development & Housing Development Fund (2012 General Obligation Bond Fund) |
$0.00 |
$0.00 |
$ 503,533.00 |
|
Economic Development Fund (I) (2017 General Obligation Bond Fund) |
$0.00 |
$0.00 |
$ 1,721,521.00 |
|
Economic Development (G) Fund (2024 General Obligation Bond Fund |
$0.00 |
$0.00 |
$14,411,515.00 |
|
Infrastructure Investment Fund |
$0.00 |
$0.00 |
$ 6,863,431.00 |
|
Total |
$0.00 |
$0.00 |
$23,500,000.00 |
DEVELOPER/EXECUTIVE
RG University Hills, LLC
Terrence Maiden, Managing Member
MAP
Attached