PILLAR: Growing
AGENDA DATE: May 27, 2026
COUNCIL DISTRICT(S): 4
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
Authorize a Chapter 380 economic development agreement and all other necessary documents with Veterans Community Project and/or its affiliates for the Veterans Community Project Village, including the conveyance (fee simple estate) of approximately 7.33 acres of City-owned real property located west of South Lancaster Road, south of Mentor Avenue, and east of Denley Drive in consideration of the development and operation of a transitional housing community on the Property for veterans experiencing homelessness, consisting of small residential units, a community center, and on-site supportive services, in accordance with the Economic Development Incentive Policy - Financing: This action has no cost consideration to the City (see Fiscal Information)
*In alignment with Economic Development Incentive Policy.
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BACKGROUND
Since 2015, the City of Dallas (City) has owned approximately 7.33 acres of vacant land located west of South Lancaster Road, south of Mentor Avenue, and east of Denley Drive (“Property”), which consists of 30 individual lots/parcels zoned as Planned Development District No. 855. The Property is located approximately 100 feet from the Dallas Veterans Administration Medical Center and approximately 50 feet from DART’s VA Medical Center Station. The current estimated fair market value of the Property in “as is” condition is approximately $1.5 million.
Over the past decade, the City has issued three Requests for Proposals (RFPs) soliciting private development proposals for the Property. None of the RFPs resulted in the execution of any agreement or the delivery of any development project. After the most recent RFP process ended, the City Manager’s Office directed the Office of Economic Development (OED) to begin to identify potential partners/projects for the Property. As a result, over the past six months, OED has been coordinating with City Council Member Johnson to explore the possibility of a new veterans-focused, non-profit transitional housing development at the Property led by Veterans Community Project (VCP).
VCP is a national 501(c)(3) non-profit organization founded by combat veterans and dedicated to fixing veteran homelessness. VCP builds and operates specialized communities of small homes (commonly called tiny homes) with on-site, comprehensive case management services, helping veterans transition from homelessness to permanent, sustainable, long-term housing. Since opening their first community in 2018 in Kansas City, Missouri, VCP has helped over 8,000 veterans and has expanded to six locations across five states, earning national recognition for their scalable, community-based approach that pairs local engagement with centralized support systems.
The VCP Village (“Project”) in Dallas will create a community of approximately 50 stand-alone residential units with an appearance of small cottage homes (site-built on permanent foundations with full bathroom, dedicated sleeping space, efficiency kitchen, and a covered porch) that will be available at no charge to qualified veterans experiencing homelessness. The Project will include at least two types of homes: individual studio units of at least 240 square feet and family-size units of at least 320 square feet. Additionally, the Project will create an approximately 6,000 square foot community center to include office and caseworker space, a fellowship hall, conference rooms, restrooms, a dog washing room, and flex space to support the residents or other veterans in need.
VCP’s estimated total Project cost is $15 million, including remaining due diligence and pre-development activities, soft costs, hard construction costs, and furniture, fixtures, and equipment.
To effectuate the Project, in accordance with Section IV(4)(b) of the City of Dallas Economic Development Incentive Policy adopted by City Council on January 25, 2023, by Resolution No. 23-0220, and as amended, and Section 253.0125 of the Texas Local Government Code, OED staff is proposing the conveyance (fee simple estate) of the City-owned Property to VCP for consideration in the form of a Chapter 380 economic development agreement (“Agreement”) requiring the use of the property to promote a public purpose of the City relating to economic development.
Chapter 253 of the Texas Local Government Code was amended in 2023 to allow for this scenario and the City’s Economic Development Incentive Policy was amended by City Council in March 2024 to reflect the change in Chapter 253.
Under the Agreement, the City will convey the Property to VCP at no cost. Prior to the City’s execution of the Agreement and conveyance of the Property, VCP will:
a) secure (through charitable donations, philanthropic contributions, and other non-City sources) and provide evidence of at least $4 million of the construction funding needed for the Project (with an estimated construction budget based on final design development plans), and
b) obtain Director’s approval of a proforma business plan demonstrating financial feasibility of the Project’s operations (including reserves) over the Compliance Period without the need of any financial support from the City.
VCP will design, fund, construct, operate, and maintain a Veteran Community Project Village on the Property consisting of the new ground-up construction of a minimum of 50 stand-alone residential units with an appearance of small cottage homes, a 6,000 square foot community center, and site amenities (gazebo/open air shade structure, barbeque grilling area, walking paths, and a small dog park). VCP will deliver all site improvements including grading, paving, utilities, surface parking, irrigation, landscaping, hardscaping, lighting, security fencing, and perimeter streetscape improvements.
VCP will be required to incur a minimum of $10 million in eligible investment expenditures, which may include both cash expenditures and the fair market value of in-kind contributions for delivery of the Project.
Upon closing, a Deed Without Warranty shall be executed and provide that the conveyance of the Property in “as is” condition to VCP is subject to the terms of the Agreement, including a right-of-reversion in favor of the City in the event VCP fails to deliver the Project in accordance with the Agreement or fails to continuously use the Property to promote the public purpose described in the Agreement. The City’s right-of-reversion shall remain in place for the duration of the Compliance Period. Upon substantial completion of construction, VCP will be required to operate the Project for no less than 20 years (“Compliance Period”).
ESTIMATED SCHEDULE OF PROJECT
Property acquisition deadline December 2027
Substantial completion December 2029
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 9, 2024, the Veteran’s Affairs Commission received an informational briefing regarding Veterans Community Project.
The Economic Development Committee was briefed by memorandum regarding this matter on May 4, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15433143&GUID=864942D0-4524-43DA-88A9-9959C2931F45>
FISCAL INFORMATION
This action has no cost consideration to the City. The current estimated fair market value of the Property in “as is” condition is approximately $1.5 million.
OWNER/EXECUTIVE
Veterans Community Project
Bryan Meyer, Chief Executive Officer and Co-Founder
MAP
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