STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: September 13, 2023
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize the Dallas Public Facility Corporation to (1) acquire, develop, and own The Cedars, a mixed-income, multifamily development to be located at 2000 and 2220 South Ervay Street (Project); and (2) enter into a seventy-five-year lease agreement with Savoy Equity Partners, LLC or its affiliate for the development of the Project - Estimated Revenue Foregone: General Funds $700,377.00 (15 Years of Estimated Taxes)
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BACKGROUND
Savoy Equity Partners, LLC (Applicant), a Texas limited liability company, submitted an application to the Dallas Public Facility Corporation (Corporation) for the development of the Cedars, a 377-unit mixed income multifamily development to be located at 2000 and 2220 South Ervay Street (Project). The Corporation will own the site and improvements and lease the Project back to the Applicant or its affiliate. Pursuant to the Texas Public Facility Corporation Act, Chapter 303 of the Texas Local Government Code, as amended (Act), any public facility owned by a Public Facility Corporation is exempt from all ad valorem taxes. To qualify as a public facility, pursuant to the Act, a multifamily property must reserve at least 50% of the units for residents earning at or below 80% of the Area Median Income (AMI). The Project will reserve 40% of the units for residents earning less than 80% AMI, 10% of the units for residents earning less than 60% AMI and 50% of the units will be market rate.
The Applicant will be a limited liability company owned by Savoy Equity Partners, LLC (Savoy). Savoy is a Texas-based real estate development and construction company that is actively developing a portfolio of multifamily properties focused on residents earning between...
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