PILLAR: Growing
AGENDA DATE: January 14, 2026
COUNCIL DISTRICT(S): 1
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize a tax increment financing (“TIF”) development agreement and all other necessary documents (“Agreement”) with 549 E Jefferson Blvd, LLC and/or its affiliates (“Developer”) in an amount not to exceed $10,000,000.00 from current and future Oak Cliff Gateway TIF District funds (“TIF Subsidy”) in consideration of The Jefferson Redevelopment Project on property currently addressed as 549 East Jefferson Boulevard in Tax Increment Reinvestment Zone Number Three (“Oak Cliff Gateway TIF District”), in accordance with the Economic Development Incentive Policy - Not to exceed $10,000,000.00 - Financing: Oak Cliff Gateway TIF District Fund (subject to annual appropriations from tax increments)
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
The Jefferson Redevelopment Project (“Project”) is proposed to include the renovation and adaptive reuse of the historic property that was formerly the Oak Cliff Methodist Church totaling approximately 43,291 gross square feet located on approximately 1.72 acres of land currently addressed as 549 East Jefferson Boulevard at the northwest corner of Marsalis Avenue and Jefferson Boulevard (“Property”).
The Property was designated a City of Dallas Landmark in 1995 and a Texas Historical Landmark in 1999. There are three existing buildings on the Property totaling approximately 46,600 square feet, including:
• a 14,600 square foot Classical Revival Style sanctuary building built in 1915,
• a 20,000 square foot, 3-story education building built in 1926, and
• a 12,000 square foot, 1.5-story youth building added in 1951
The Property has been vacant since 2015 and was damaged by a fire in 2022. The Developer purchased the property in 2023 with intention to deliver this proposed Project.
Over the past nine months, the Office of Economic Development has been coordinating with the Developer to refine the Project scope and work through a development incentive application.
The proposed Project will consist of the rehabilitation and adaptive reuse of all three existing buildings into flexible workspaces for commercial/retail tenants (approximately 14,297 square feet of gross rentable space) and approximately 45 multi-family residential units (studio apartments and/or live/work units). The proposed scope of the Project includes the following:
• Interior and exterior improvements to the three buildings (totaling approximately 43,291 gross square feet) to create new residential, retail, office, and/or flex space; and
• Site improvements to include water, wastewater, and storm drainage, new paving, landscaping, signage, lighting (site and pedestrian), and furnishings such as benches and bike racks; and
• Sidewalk and streetscape improvements along the Jefferson Boulevard and Marsalis Avenue frontages of the Property.
Developer’s estimated total Project cost at Substantial Completion (as defined herein) is approximately $19,472,589 and is comprised of the following components:
(i) site acquisition cost: $2,238,162
(ii) building (hard) construction costs: $10,675,398
(iii) contingency: $566,108
(iv) professional fees: $735,000
(v) soft costs: $4,238,792
(vi) reserves: $404,362
(vii) developer fee: $614,768
The Project was reviewed by the City’s Urban Design Peer Review Panel (“Panel”) on May 16, 2025. The Developer made changes to the Project’s urban 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 development incentive application. In consultation with the underwriter, Office of Economic Development staff structured the proposed TIF Subsidy as gap funding to make the Project financially feasible. The Office of Economic Development negotiated a detailed Letter of Intent (“LOI”) with the Developer, and, on December 9, 2025, 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 $10,000,000.00 is anticipated to be deployed from the Bishop/Jefferson Sub-District of the Oak Cliff Gateway TIF District according to the following budget categories: (i) environmental remediation and demolition $353,000.00, (ii) historic façade improvements $1,292,379.00, (iii) public infrastructure improvements $298,615.00 and (iv) economic development grant $8,056,006.00.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction December 31, 2026
Complete Construction December 31, 2028
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 11, 1992, the City Council authorized the establishment of the Oak Cliff Gateway TIF District by Ordinance 21466, as amended.
On February 12, 1997, the City Council authorized the adoption of the Oak Cliff Gateway TIF District Project Plan and Reinvestment Zone Financing Plan by Ordinance 23033, as amended.
On December 15, 2025, 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 $10,000,000.00.
The Economic Development Committee was briefed by memorandum regarding this matter on January 6, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15043807&GUID=424172D9-4FCF-4B48-9DFB-5E3A3ECFE321>
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Oak Cliff Gateway TIF District Fund |
$0.00 |
$0.00 |
$10,000,000.00 |
DEVELOPER/EXECUTIVE
549 E Jefferson Blvd, LLC
Andrew Ramler, Manager
MAP
Attached