development: - Dallas

Office of Economic DevelopmentWWW.DALLAS-ECODEV.ORG

1

Economic development grant proposal to support emerging development opportunities in

North Oak Cliff

Economic Development Committee

December 6, 2010


2

Purpose

Review the proposed economic development grant agreement in support of the initial phase of the Bishop Arts Village project.

Obtain Economic Development Committee approval for consideration of the agreement by City Council on December 8, 2010.


3

Overview

Urban revitalization is underway in the North Oak Cliff area as seen in the success of the Bishop Arts retail district and new businesses throughout North Oak Cliff.The area is still transitioning and City support will be needed to encourage new housing and mixed-use development.


4

Overview

Getting “in front of the market” in emerging areas will allow for more coordinated development.A potential multi-phased project would build on the success of the Bishop Arts District and provide linkages to the Jefferson Boulevard and Davis Street corridors is in the conceptual stages.


5

Bishop Arts Village – Phase I

Bishop Arts Village, LLC (an affiliate of Exxir Capital) has already invested $5 million in property acquisition in the area.The initial phase of a

proposed Bishop Arts Village project involves project feasibility evaluation, due diligence, and land assembly.Locations throughout the

“garden district area” of North Oak Cliff are being considered.


6

Economic Development Grant Agreement

A proposed Chapter 380 economic development grant in the amount of $2,000,000 from 2006 General Obligation Bond (Prop 8) Funds would support Phase I of the Bishop Arts Village project.Funds would be used for the acquisition of real property and related due diligence costs.The grant is conditional and subject to the following:

• Developer agrees to assemble property for future development, conduct due diligence as required, and develop a project scope for Phase II vertical development.

• The City and Owner will work to finalize the project scope and future phasing upon completion of the above.

• If the developer does not move ahead with a Phase II vertical development or cannot reach an agreement with the City on the vertical project scope and phasing by December 31, 2015.

• Developer agrees to give the City collateral property or the cash equivalent equal to the $2 million City grant.


7

Economic Development Grant Agreement continued

This conditional grant allows for continued negotiations towards a larger pedestrian oriented village project.Additional incentives will be needed for future phases to support redevelopment costs such as utility upgrades, streetscape and public open space improvements, demolition, and historic façade restoration.


8

Future Programs to Consider

During the course of Phase I, staff and the developer will evaluate the potential to create a tax increment financing district (TIF District).Other financing programs that may be considered include additional general obligation bond funding, the City of Dallas Regional Center (CDRC), New Markets Tax Credits (NMTC), and programs through the City’s Housing Department.


9

Bishop Arts Village, LLC –Background

Bishop Arts Village LLC (BAV) has been incorporated in Texas for the sole purpose of developing the Bishop Arts area of North Oak Cliff, Dallas.BAV’s principals, designers and city planners share an average experience of over 30 years in all aspects of real estate (acquisition, finance, development, construction, management and syndication) in markets the world over.The BAV team has collectively sponsored, structured or executed real estate transactions, in Europe, Asia and USA, totaling 25 million square feet and approximately $3 billion in value, involving residential, retail, office, and multifamily (See Appendix for more background).


10

Bishop Arts Village, LLC –Background continued

One example of the BAV group members’ involvement in a successful public-private partnership includes the Paseo Nuevo project in Santa Barbara, CA.In partnership with the City’s Redevelopment Authority, an overall vision was set to create a shopping and gathering destination in a once blighted area of downtown Santa Barbara.


11

Bishop Arts Village, LLC –Background continued

Paseo Nuevo, according to City staff, has been an economic engine for the City of Santa Barbara and property tax revenues in the downtown corridor have continued to grow.The new retail buildings were designed to be integrated into the existing downtown urban fabric.Both residents and tourists visit this destination.


12

Recommendations

The following actions are recommended:• Approval of an economic development grant agreement

pursuant to Chapter 380 of the Texas Local Government Code in accordance with the City’s Public/Private Partnership Program – Business Development Grant Program with Bishop Arts Village, LLC related to the acquisition of real estate and development of property in the City of Dallas.


13

Appendix


14

Bishop Arts Village LLC – Additional Background

Principals behind the Bishop Arts Village, LLC (BAV) are a family investment trust in partnership with many enterprises, experts, and professionals and have successfully instigated, financed, and invested in a host of projects including buying, renovating, developing real estate, as well as funding, seeding and investing in new ventures. The group has structured over 25 million square feet of real estate transactions around the world with an approximate $3 billion in value through family-owned vehicles.BAV is also a family investment company which has been formed in the same manner to partner with the best professionals and experts while bringing its own expertise and investment resources to infill neighborhoods in Dallas’s southern sector.


15

Bishop Arts Village LLC – Additional Background continued

Notable Development/Re-Development Projects include:• Harrow on the Hill – Office Development (Harrow, London, UK) • 7 Old Park Lane – Mixed-Use Renovation (Mayfair, London, UK) • Paseo Nuevo – Mixed-Use Town Center (Santa Barbara, CA) • The Charles – Residential Condo Tower (Upper East Side, NYC, NY) • Picachio Ln – High-End Residential (Montecito, CA) • Archstone Tech Ridge – Multi-Family (Austin, TX)

Other Companies: • Blue Rock Real Estate – A national real estate firm (A family corporation) • New World Coffee/Einstein Bros – Concept/Funding/IPO/Acquisition/Disposition (639

Coffee/Bagel Franchises - Publically Traded) • Vsource Inc. – Venture Capital/BPO/Disposition (Global B2B process outsourcing )

Memorandum

CITY OF DALLAS

Dale: December 3, 2010

To: City Council Economic Development Committee: Ron Natinsky (Chair) , Tennell Atkins (Vice Chair), Jerry R. Allen, Dwaine Caraway, Sheffie Kadane, Linda Koop, Ann Margolin, Steve Salazar

Subject: Building Inspection Enterprise Fund

On Monday, December 6, 2010, the Economic Development Committee will be briefed on the recommended adjustments to the Building Inspection Enterprise Fund. A copy of the briefing Material is attached for your review.

If you n ed further information please call Theresa O'Donnell at 214 670-4127 .

. Gonzalez istant City Manager

c: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins, City Secretary Thomas Perkins, City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Judiciary Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E ., Assistant City Manager Jeanne Chipperfield, Chief Financial Officer Theresa O'Donnell. Director Sustainable Development & Construction Karl Zavitkovsky, Director, Office of Economic Development Hammond Perot. Assistant Director, Office of Economic Development Helena Stevens-Thompson, Assistant to the City Manager

1

Sustainable Development and Construction –

Enterprise Fund

December 6, 2010

Building Inspections Enterprise Fund Task Force

2

Purpose

To review the BI Task Force discussions and recommend adjustments to the existing Building Inspection Enterprise Fund fee ordinance

3

Covered in this briefing

Background

Committee Work

Recommendations

4

What is the Building Inspection Enterprise Fund?

Building Inspections Enterprise Fund is used to pay for functions in:

Building Inspections Office

Zoning/Historic Division

This fund is distinct and separate from the General Fund.

It is a fund that is fully supported by the fees that are collected for the services it provides

Each year, the Enterprise Fund establishes revenue-based fees to provide service to the development and construction industry and support the operation of the department

The Enterprise Fund consists of 146 employees with an annual budget of $16.5M

5

Overview Building Inspection

The Building Inspection Office is approximately 122 employees who work to keep the public safe by ensuring compliance with construction standards

Services provided include:−

Issuing building permits and Certificates of Occupancy−

Reviewing and approving site and construction plans for compliance with zoning and building codes

−

Researching information about development activity, past uses on property, allowed uses, etc.

−

Performing construction inspections−

Responding to Open Records Requests

6

Overview Zoning/Historic Division

This division consists of 24 employees who facilitate growth and

development in Dallas by: −

Reviewing and processing-

zoning requests, SUPs, variances, special exceptions, street name changes, plats, development code amendments and other miscellaneous land use applications

−

Maintaining the official zoning maps and providing all legally required notification

−

Providing staff support for the Council Transportation and Environmental Committee, City Plan Commission, Board of Adjustment, Landmark Commission, the Zoning Ordinance Advisory Committee, and other affiliated subcommittees and task forces

(Long Range Planning is not included division and is funded thru

the GF)

7

Impact of the Economic Downturn on the Enterprise FundFunding and revenues declined much greater and

faster than workload, from 2007−Overall permit workload decreased by 9.27 %−Construction valuation decreased 45.42 %−Staffing levels were reduced by 51%

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Tota

l Per

mit

Valu

atio

n

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Tota

l Num

ber o

f Per

mits

Total ValueTotal Permits

8

Impact of the Economic Downturn on the Enterprise Fund

9

Impact on the Current Budget and Staffing Levels

With a staff reduction of 51% and an overall workload reduction of 9.27%;

−Staffing assignments and allocations were adjusted to address most critical workload

−Core functions were prioritized

−All specialized services were eliminated

10

Impact on current budget and staffing levels

Significant and sudden reduction in staff has resulted in a sharp increase in customer complaints and dissatisfaction− Length of time to review and approve

construction plans increased − Length of time to review and process zoning

cases increased − Length of time to provide inspections increased−Staff not readily accessible for consultation,

information requests and reviews−Continued demand/expectation for services that

were eliminated

11

Zoning/Historic Division

Additional impact of uncompensated work

Accounts for 27% of regular agenda items on zoning docket (09/10 budget year)

Plus there exists a multi-year backlog of authorized zoning requests

Plus entire Landmark Commission docket, accounting for approximately $600,000 worth of staff resources

The difference between zoning revenues and zoning costs is more than $2M annually

At the same time, paying customers are experiencing longer and longer delays

12

Professional Staff / Fee Caseload Levels

07/08 09/10 Change

Zoning staffcaseload

6214

3152

-50%-29%

Plat staffcaseload

3447

1211

-

66%-

52%

BDA staffcaseload

1.5192

1129

-

33%-

33%

Historic staffcaseload

7722

2507

-

71%-30%

13

Uncompensated vs. Revenue Zoning Case Load

13

0

50

100

150

200

250

'06/07 '07/08 '08/09 '09/10

TotalNo Fee

14

Uncompensated Landmark Case Load (CA’s)

14

0

100

200

300

400

500

600

700

800

'06/07 '07/08 '08/09 '09/10

TotalNo Fee

15

Compounded impacts

Growing number of paid cases outstrips staff capacity to process

Delays for accepting and scheduling paid zoning cases has peaked at 4 months, extending the overall time to almost 1 year to completion

Uncertain and unpredictable hearing date schedules have frustrated customers and jeopardized important economic and public projects

16

Direction from Council

During the budget deliberations in late September 2010, Council suspended fee adjustment and directed staff to continue meeting with industry representatives to discuss proposal

Fee adjustments have not been enacted

17

Building Inspections Taskforce

Appointed by the City Manager in late September

Began meeting in early October

5 large committee meetings were convened

Smaller subgroups were created to have in-

depth discussions on specific topics

In all, more than 20 city hosted meetings have taken place

Industry has met privately many more times

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Building Inspections Taskforce

TREC

GDHBA

Texo

Black Contractors

Hispanic Contractors

Preservation Dallas

Zoning Consultants

Permit Consultants

Landmark Commission

South Dallas representative

Meadows Foundation

AIA

CEC

NTCAR

NAIOP

USGBC

CHDOs

ISDs

Oak Cliff Chamber

Greater Dallas Chamber

Dallas Black Chamber

Hispanic Chamber

North Dallas Chamber

19

Major findings of the committee

Resources were reduced much more than workload resulting in significant problems

Pressures on the general fund budget have resulted in the enterprise funds paying for all services they receive from other city forces

Not all work performed by enterprise fund employees is paid for

Questions were raised regarding appropriateness of some fees

20

Major findings of the committee

Enhancements to this operation will take months, if not years, to adequately address

Immediate changes are possible and advisable

At this time, volume of backlogged work dictates that priorities must be established

Most of the recommendations received consensus

21

Major Findings

In order to stay focused on this issue, a standing industry committee is recommended

Same composition as current committee structure

Guided by 2 co-chairs (one staff/one industry)

Ability to offer joint or minority recommendations

Monthly meetings for initial year

*(Additional committee information provided in the appendix)

22

Immediate Actions

Reconstitute a modified expedited processing menu for customers to use if they so choose

Hire all existing vacancies

Institute a “chess clock”

timing procedure for

building plan review and zoning cases

Refine production metrics and desired response times

Prioritize backlog of work for processing

23

Establishing Priorities

Due to the volume of work and lengthy processing times, the backlog of work must be prioritized to ensure key economic projects and important public projects are not jeopardized

As a stop gap measure, cases in both zoning and building permits will be given priority in scheduling and processing

The criteria for these projects is being developed. Committee input is being sought at this time.

24

The Differences

Additional staff recommendations not receiving consensus

Institute fees as originally proposed, with the exception of reducing Historic/Conservation fee increases by one-half and instituting the Q-Team related fees as described in the appendix

Additional fee modifications will be proposed in the upcoming budget deliberations.

25

The DifferencesAdditional recommendations of citizen members

Institute the recommended fee increases proposed by staff (and modified with respect to the Q-Team) provided that:

−

Historic Preservation fees not be imposed, but costs to be absorbed by the General Fund in the current fiscal year; and

−

In the following fiscal years, the Council is to provide for a funding source outside the BI/Planning fees sufficient to cover services being provided by the department which are not currently charged, such as authorized hearings, other governmental zoning cases, and historic preservation.

26

Staff Recommendation

To adopt the consensus recommendations for immediate action and fee adjustments

To adopt additional recommendations as proposed by staff in regards to “differences”

27

Questions?

Effective Business Strategies for Sustainable Growth

28

Appendices−BI Task Force Committee report−Summary of fee changes− Proposed fees−Current fee schedules−Workload indicators−Current uncompensated workload

29

BI Task Force Recommendations

The City’s planning and building inspection functions are critical to a successful economic development program. As such, these activities must be adequately funded, efficiently run, and appropriately priced.

Currently, these functions are overwhelmed causing unacceptable delays in processing, unreasonable expectations of performance, and frustrations for all involved.

Industry representatives and key staff recognize this situation will require a commitment to a sustained effort to work through these issues, some immediately actions to provide some relief, and acceptance of some guiding principles.

To this end, this report includes recommendations for:−

The creation of a staff/industry work group which will continue the efforts to improve the delivery of services in this area,

−

The adoption of immediate action steps,−

The request that the following guiding principles be recognized by all involved:

The development/construction industry should pay for the services rendered in this area provided that there are clear expectations of performance, efficiently provided, and are priced to cover the costs associated with the service delivered

The issue that there are significant amounts of service rendered

that are not currently charged nor provided with funding to provide them must be addressed−

All services should pay their fair share

As the work continues, the resources needed to develop additional recommendations will need to be provided by all of the participants, recognizing this

effort further burdens a very strained system

30

BI Task Force RecommendationsSpecific Recommendations

Create a standing Development and Construction Industry committee −

Follow the basic structure used with the current study group

Same representative organizations as are now in place

Two Co-Chairs (one staff, one from the industry)

Ability to have joint and/or minority recommendations

Monthly meetings for first year and then determine frequency in future years−

Topics to be addressed could include, as examples:

Work flow streamlining opportunities

Annual budget review/analysis

Privatization

Current year’s progress

Market comparison of fees

Furlough day management

Water and Sewer permitting process timing

Technology enhancements

Applicant education

Pre-development meetings

Help desk

Staff rewards program

Interdepartmental fees

Progress on production metrics

Cost for Authorized hearings

Quality and timeliness of services

Methodology of plan reviews

Funding for authorized hearings, Historic Preservation management, Governmental entities’

zoning changes, etc

Determining appropriate size of a fund balance for this enterprise fund

31


Reconstitute a Modified Expedited Processing Menu consisting with the following:−

A new Q-Team Review (replaces Express Plan) immediately where all trades

(10 trades or as needed for particular review) would meet with customer concurrently to review plans at a rate of $1,000/hr

Max fee will be set by category of work

See appendix

Fee will be assessed through contract until fee ordinance is approved−

A new Pre Q-Team Review Fee and Service

Flat fee to be developed by category

Availability of staff uncertain−

A Selected Review where the customer pays an hourly rate per trade ~ $200/hr−

Customer MUST request at time of permit application and only applies to regular plan review staff

−

An OT Review where customer would pay and hourly rate per trade for staff to work overtime for review ~ $250/hr above other applicable fees.

Considering supplementing with 3rd party for selected trade reviews

Coordinated through the City−

All Hourly fees are to cover face time (unless otherwise agreed by both parties) when services are rendered and will have a maximum charge

Other privatized work –

Green building plan review and inspections

32


Hire all existing vacancies immediately including the 14 new hires

Institute a “chess clock”

timing procedure for building permits and zoning cases

Refine production metrics and desired response times by January 30th−

Staff estimates for metrics have been provided (See BI performance improvement spreadsheet), but more work is needed to determine consistency

As a stop gap measure, prioritize top 20 “front of the line”

zoning projects−

Possible criteria:

Jobs created

Committed Investment

Signature project

Targeted investment areas

Governmental projects

Etc.

Recommendation to be developed

As a stop gap measure, prioritize top 20 “front of the line”

Building inspection projects−

Possible criteria:

Jobs created

Value of permit (construction costs)

Signature project

Targeted investment area

Governmental project

Etc.

Recommendation to be developed

Use $250,000 from fund balance to fund three additional planners

to deal with the backload

33


Additional actions/recommendations of staff, not receiving a consensus of the committee:

−

Institute the fees as originally proposed, with the exception of

reducing the Historical preservation fee increases by one half and instituting the Q-

Team related fees as described. Additional fee modifications will be proposed in the upcoming budget deliberations

Additional actions/recommendations of the citizen members of the

committee:

−

Institute the recommended fee increases proposed by staff (and modified with respect to the Q-Team fees) provided that:

Historic Preservation fees not be imposed, but costs to be absorbed by the General Fund in the current fiscal year; and

In following fiscal years the Council is to provide for a funding source outside the BI/Planning fees sufficient to cover services being provided by the department which are not currently charged, such as:−

Authorized Hearings−

Other governmental zoning cases−

Historic Preservation

34

Summary of Fee Adjustments

FY 10-11 Proposal –

Building Inspections

−

Full list of proposed fee adjustments included in the appendix

−

Core fees have NOT increased−

Limited number of specific fees have been analyzed and adjusted to move toward full cost recovery, i.e. re-

inspections−

Introduces a few new fees for work previously provided at no charge to the customer

35

Summary of Fee Adjustments

FY 10-11 Proposal –

Zoning

−

Create new fees to allow for accelerated zoning review−

Adjust fees to realize full cost recovery on “under-valued”

work, such as PD amendments−

Eliminate fee exemptions for certain types of uses, i.e. schools.

36

Building Inspection Proposed Fees for FY10-11

Permit Service/Justification

Current Minimum Fee ($)

Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)

Multi Family Development Permit Fee is based on the number of units

$215 per unit

$225 per unit $20,000

Register new types of contractors similar to those currently registered. Annual registrations to be required for: residential general, commercial general, concrete/ asphalt /paving, demolition, landscape contractors, commercial pool, fence, back flow testers contractors and energy code providers $0 $120 $457,200

37




Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)Single Trade Permits $60 $100 $852,960

Building Inspection Board Fees for appeals to BI Board (Consistent with Board of Adjustment fees) $0 $600 $1,200Reinspection fee $25 $75 $144,760

Unauthorized cover up fee for any work concealed without first obtaining the required inspection $0 $200 $10,000

Expedited Priority Inspection (same day call BEFORE 2:00PM) $0 $250 $25,000

38




Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)

Expedited Priority Inspection (same day call AFTER 2:00PM). Replaces current after hour inspection $173 $300 $30,000 After hour release for gas and electric $0 $50 $10,200

Record change on registrations $10 $30 $3,000

Temporary Certificate of Occupancy (CO) Extension (record change) $0 $30 $7,200

39




Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)

Duplicate CO $0 $30 $4,500Parking agreement amendment/termination $0 $100 $600

Zoning determination letter (similar to zoning verification letter). This fee is only for the letter. Includes up to one hour of research time. $0 $100 $1,200

Zoning research only fee $0 $50 per hour $600

40




Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)Plan reviews, site verification and inspections for installation or construction of signs $0 $75 $138,750 Pre-Development meetings: structure is less than or equal to 25,000 sq ft. $0 $250 $13,750 structure is greater than 25,000 and less than 50,000 sq ft. $0 $500 $27,500 structure is greater than or equal to 50,000 sq ft. $0 $750 $37,500

41


Green Plan Review/Conservation District Plan Review/Other Consultation/Zoning/Building


Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)Consultations -

Fee per hour after free 20 minutes (in person meetings). Staff time required to guide applicants requiring this level of service. These fees do not apply to customers that come in to discuss an active permit application. $0

$50 per hour $7,500

42


Plan Reviews


Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)Conservation District reviews when building permit is required; Covers cost of performing review (checking ordinance, copying plans, entering Posse information, correspondence with applicant) $0

5% of building permit valuation per application $30,000

Conservation District review when building permit is not required. *Online permit will be available free of charge for simple permit requests. $0

$25 per application $3,000

43


Plan Reviews


Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)Overtime (OT) Review -

per trade (no meeting with staff required). Pays staff OT for plan reviews. Work assignments based on criteria that qualifies plan reviewer to work OT. $0

$250 per hour $12,500

Expedited Plan Review per trade $0$200

per hour $25,000

Historic District -

building permit surcharge for performing review (check ordinance, copy plans, etc.) $0

5% of valuation $12,000

44


Plan Reviews


Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)Expedited Plan Review (no meeting with staff; partial team, less than 3 trades) $500 $600 $38,000Express Plan Review (includes meeting with all trades simultaneously, plus coordinator's time. Does not include permit application fees. (matrix sets caps) $500

$1,000 per hour $30,000

45

Current Planning Inspection Proposed Fees for FY10-11

Current Planning


Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)

Eliminate fee exemptions for schools and governmental entities $0 varies $30,000Historic Districts -

Certificate of appropriateness review for "full process" (Task Force, Landmark Commission) cases only. $0

$150 SF/ $300 Com per case $39,000

Historic Districts -

Certificate of appropriateness review for Routine Maintenance cases only $0

$15 per case $4000

46

Current Planning Inspection Proposed Fees for FY10-11

Current Planning


Proposed Fee ($)

Projected FY10-11

Additional Revenue

($)

Amendment to planned development district or institutional overlay district site plan and/or conditions only $0 varies $25,000

Certificate of demolition $0 $500 $15,000

47

Q-Team Maximum Fee Based on Square Footage

Square Footage Maximum Fee Hours−

0-10,000 $2,000 2hours−

10,001 -

50,000 $12,500 12.5 hours−

50,001 -

100,000 $27,500 17.5 hours−

100,001 and greater $50,000 50 hours

Flat Fee for Pre Q-Team Review by Square Footage

Square Footage Maximum Fee−

0-10,000 $500−

10,001 -

50,000 $750−

50,001 -

100,000 $1,000−

100,001 +

$1,250

48

Building Inspection Current Fees Schedule

49


50


51

Workload indicators

Fiscal Year 08/09 Fiscal Year 09/10

56 staff that completed 166409 inspections

42 staff that completed 156606 inspections

27 Permit Center staff served 31656 customers

17 Permit Center staff served 31848 customers

Staffing Variance

Workload Variance

25% 5.89%

37.04% 0.61%

17 Permit Center staff issued 27135 over the counter permits

27 Permit Center staff issued 26667 over the counter permits

28.36%

1.75%

67 staff issued 32749 total permits

48 staff issued 34197 total permits

37.04%

4.42%

67 staff processed 7105 CO applications

48 staff processed 6558 CO applications

28.36% 7.70%

52

Workload Indicators (continued)

Fiscal Year 08/09 Fiscal Year 09/10

35 staff served 9769 customers in Technical Services

Staffing Variance

Workload Variance

22.86 17.32%

17 staff completed 1184 regular plan reviews

100%

16.39%35.29%

68.81%

100.% undetermined

27 staff served 8077 customers in Technical Services

11 staff completed 990 regular plan reviews

10 staff completed 388 express plan reviews

0 staff completed *655 regular plan reviews

*During FY10 express plans reviews were absorbed by the same staff responsible for regular plan review.

7 call center staff answered 7021 calls

0 call center staff/ voice messaging to various sections

53

Uncompensated workCurrent cases for government partners and

non-profit agencies−

Z090-215

Dallas Housing Authority−

Z090-219

Dallas ISD−

Z090-220

Charter School−

Z090-224

Dallas ISD−

Z090-227

Charter School−

Z090-236

Dallas ISD−

Z090-237

Dallas ISD−

Z090-241

Dallas Housing Authority−

Z090-258

Charter School−

Z090-259

Dallas ISD−

Z090-260

Dallas ISD−

Z101-103

Duncanville ISD−

Z101-121

Charter School

54

Uncompensated work – public hearings authorized by CC or CPC

Active cases −

Z090-225

PDD 145−

Z090-256

PDD 708−

Z090-242

Greenville Ave−

Z090-243

Post Office

Open cases−

Z067-203

Trinity Gateway−

Z067-204

La Bajada−

Z089-163

Stevens Park−

Z089-222

Disney Streets−

Z101-109

PDD 37

55

Uncompensated work – pending authorized hearings

Henderson Avenue

Downtown pedestrian core

PD 595

Glen Heights RR

Old Renner

Deep Ellum

Park Estates CD

East Kessler CD

Jefferson Street

1-20 Dowdy Ferry

Southern Gateway

Southward Industrial

Jappa

Rochester Heights

Pemberton Hill

Ideal Neighborhood

South Lamar

Cadillac Heights

Skyline Heights

Tenth Street Bottoms

West Commerce Riverside

Westmoreland Heights

Commonwealth/Trinity

Irving Blvd/Regal Row

Stemmons

Crossroads

Luna Road/Walnut Hill

Forest Heights

56

Uncompensated work – active code amendments and revisions

Convenience Store with Drive-through

Community Gardens

Alternative Financial Institutions

Parking Issues (15)

Article X Tree Preservation

Neighborhood Stabilization Overlays

Conservations Districts

57

090 089 078 067 056 Total

Conservation Districts 2 1 3 6

Historic Overlay

LC Auth Hrg 2 4 5 4 15

General Zoning Change

City of Dallas 2 2

CPC Auth Hrg 2 1 2 5

Neighborhood Stabilization Overlay 1 3 2 1 7

Planned Development Dist

City of Dallas 3 1 2 6

CPC Auth Hrg 3 3 1 11 3 21

Housing Authority 2 1 2 5

DISD 17 3 6 1 5 32

DART 1 3 3 7

Dallas Co. Comm. College 1 1

RISD 2 2

Charter School (error) 1 1

List of Non Paying Items

58

090 089 078 067 056 Total

Specific Use Permit

City of Dallas 1 1 3 3 8

CPC Auth Hrg 3 1 4

Housing Authority 0

DISD 1 1

Charter School 10 7 10 8 8 43

Private School 1 1 3 4 7 16

DART 1 1 2 6 10

City of Mesquite 1 1

Dallas County 2 2 4

Dallas Co. Comm. College 2 2

C/FB ISD 2 2

Handicapped Group Dwelling Unit 1 1 2

Foster Home 1 1

Deep Ellum - original cases 5 19 2 26

Error 1 1

Specific Use Permit - auto renewal

Charter school 1 2 1 4

C/FB ISD 1

Housing Authority 1 1

Total non paying 42 28 43 65 58 236

Total cases 152 186 187 248 238 1011

Percentage 27.63% 15.05% 22.99% 26.21% 24.37% 23.34%

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Omni Dallas Convention Center Hotel

Omni Dallas Convention Hotel Update

Economic Development Committee

December 6, 2010

2

Vision for Overall Development

• Make the Dallas Convention Center (DCC) more competitive

• Build another destination for Dallas• Increase the economic impact of the DCC• Enhance convention attendee experience• Develop hotel, restaurant, retail, cultural and

entertainment elements• Create a Lamar entertainment corridor by

– Improving connectivity from the DCC through downtown to Victory

– Extending the DCC’s influence into the Cedars

3

Highlights

• Project status• Safety • Number of jobs created

• DCC City Wide Bookings

• Omni Dallas Bookings• M/WBE utilization/capacity

building for local companies• Commitments and interest in

ancillary development• Positive profile creation

On time/On budgetNo major injuries/low accident ratio3000+ project jobs created800 permanent jobs projectedDoubled after Hotel announcement; best year of city wides in DCVB historyBooked over $60M in salesSuccessful and achieving goals

Growing interest and pending lease

388 articles; 53 TV news stories; 441 hits: 357,655,462 impressions

4

Dallas Convention Center

5

Dallas Convention Center• $1B asset of the city• 2.1 million square feet • More than 1M square feet of exhibit space

– Largest column-free hall in the U.S.– 96 meeting rooms– 2 ballrooms: 26,992 and 19,134 square feet– 1,750 seat theater with state-of-the-art sound and lighting– 9,816 seat arena

• Generates over $306M annually of economic impact; spend on business that comes through the door; non polluting industry

• Overall impact; supports convention center & hospitality industry

• LEED Existing Building Silver Certification

6


LEED Silver (Leadership in Energy and Environmental Design) Projected to reduce 35% of electrical usage through equipment replacement and retrofitting

– Reduced water usage 18%, or 7 million gallons per year, by replacing installing low-flush plumbing fixtures & a more efficient cooling tower

– Uses solar energy, from 54 rooftop solar panels, to heat water

– Maintains temperatures in exhibit halls with high-speed dock doors that close automatically when there is no movement

– Revamped heating and air conditioning design to enhance efficiency

– Part of city-wide commitment to 40% of energy from renewable sources

– Uses green, environmentally safe cleaning supplies

7


For clients, expansion of recycling program all events

– We have greatly reduced the Center’s landfill usage

– Clients not charged to remove recycling dumpsters, unlike trash dumpsters

– We provide recycling collection containers for any event

8

Dallas Convention Center 2009

• Total events 117 • Attendance 961,287 • Peak room 51,815 • Total room night blocked 217,183 • Direct dollars over $103M• Economic impact over $306M

9

Dallas Convention Center• The DCC has initiated a capital

improvement program that will better serve its customers and compliment the hotel development by improving and upgrading the existing facility.

• Preserving the City's convention center physical investment: – Roofing/Waterproofing– Vertical transportation – Life Safety Systems - Fire Alarms,

Security – MEP systems renovations

http://www.google.com/imgres?imgurl=http://www.concierge.com/images/destinations/destinationguide/usa%2Bcanada/usa/texas/dallas/ft.worth/dallas/dallas_002p.jpg&imgrefurl=http://www.concierge.com/travelguide/dallas_ftworth/photos/photoview/15403&usg=__LBeAJ9E6Rdz7v5heRgzabQVvU7s=&h=300&w=380&sz=37&hl=en&start=0&sig2=oJ8Xpipw5pP_Dt8NqMxZnA&zoom=1&tbnid=XnUN8RJc2o6aVM:&tbnh=107&tbnw=131&ei=eyL1TNiBIoqfnQe09o3aCQ&prev=/images%3Fq%3D%2522Dallas%2BConvention%2BCenter%2522%26hl%3Den%26safe%3Doff%26sa%3DG%26biw%3D1145%26bih%3D516%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=266&vpy=105&dur=419&hovh=107&hovw=136&tx=94&ty=97&oei=BCL1TICpNIP48AaWmeG_Bw&esq=6&page=1&ndsp=21&ved=1t:429,r:1,s:0

http://www.google.com/imgres?imgurl=http://dallassouthblog.com/wp-content/uploads/2008/01/dallasconv.jpg&imgrefurl=http://dallassouthblog.com/tag/dallas-convention-center-hotel/&usg=__4zDse5U3FmqeE4tSLZU_jtrqC4g=&h=600&w=800&sz=138&hl=en&start=0&sig2=X8HOJLwT9jM5_JROm7cQcg&zoom=1&tbnid=htdGh573of3-WM:&tbnh=107&tbnw=138&ei=eyL1TNiBIoqfnQe09o3aCQ&prev=/images%3Fq%3D%2522Dallas%2BConvention%2BCenter%2522%26hl%3Den%26safe%3Doff%26sa%3DG%26biw%3D1145%26bih%3D516%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=116&vpy=108&dur=466&hovh=107&hovw=143&tx=135&ty=105&oei=BCL1TICpNIP48AaWmeG_Bw&esq=6&page=1&ndsp=21&ved=1t:429,r:0,s:0

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Dallas Convention Center– Renovating existing space

• Public spaces • Meeting and exhibition• Directional Signage• Service and Support • Expand meeting room and assembly space• Upper D meeting • Convert existing space into meetings, service & support areas

– Projects underway to be completed in conjunction with the opening of the CC Hotel

• Skybridge between DCC and the Omni Dallas• Chilled Water Loop Repairs• Upper Level D Meeting space

11

Skybridge

• Strategically placed connection between DCC and Hotel– Moving crowds from Hotel ball rooms quickly and comfortably– Connecting in the middle of the DCC– Creating outstanding views

Omni Dallas Hotel

http://www.google.com/imgres?imgurl=http://uptake-mu-blogs.s3.amazonaws.com/blog/travel-industry.uptake.com/files/2010/10/omni-dallas-hotel.jpg&imgrefurl=http://connect.phocuswright.com/2010/10/dallas-using-super-bowl-makeover-to-impress-meeting-planners/&usg=__WmWaUQxyxnNSZuM96lx7SeaN0uM=&h=321&w=450&sz=49&hl=en&start=0&sig2=a4iUN21iE2LB4DNAprouew&zoom=1&tbnid=L9HwYEYX3YRFIM:&tbnh=124&tbnw=153&ei=YiP1TJj3DoL88Ab6uKDGBw&prev=/images%3Fq%3D%2522Omni%2BDallas%2BHotel%2522%26hl%3Den%26safe%3Doff%26sa%3DG%26biw%3D1145%26bih%3D516%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=847&vpy=215&dur=780&hovh=190&hovw=266&tx=172&ty=78&oei=YiP1TJj3DoL88Ab6uKDGBw&esq=1&page=1&ndsp=20&ved=1t:429,r:13,s:0

13

Omni Dallas Hotel

• Ideal headquarters hotel location

• 1.1M square feet• Accessible• Addition to the skyline• Contemporary design

celebrating Dallas• Opening early 2012

14

Guest Rooms

• 1,001 luxurious rooms• 363 King and 586

Queen/Queen• 3 Presidential Suites• 19 Luxury Suites• 19 Stately Suites• 15 Grand Suites• 11 Executive Suites• In-room technology will include

flat screen TVs as well as TV monitors embedded within the bathroom mirrors.

15

Meeting Space

• 110,000+ square feet of total usable function and meeting space

• 24 meeting rooms • Grand and junior ballrooms,

encompassing 32,000 and 15,000 square feet respectively

• The hotel will comfortably accommodate groups of 3,300+

16

Dallas Themed

• Luxurious, warm and sophisticated design which reflects the essence of Dallas with a contemporary, reflective glass exterior and native textures, art and other materials enriching the interior.

17

Restaurants

• The legendary Bob’s Steak & Chop House

• The Owner’s Box—a state-of-the-art interactive sports bar

• Texas Spice—an innovative farm-to- market restaurant

18

Amenities

• Omni’s signature Mokara Spa

• Terrace Rooftop Pool Deck

• State of the Art Fitness Center

Construction Update

20

Results/Update• On time and on budget

21

Results/Update• Safety Record

o 863,827 hours work hours to dateo Lost Time Incident Rate (LTIR) is .46o Recordable Incident Rate (RIR) is 4.17 o Both are well below the national average

22

Results/Update

• To date 2,366 workers have been part of the construction—will exceed 3,000 jobs by completion

23

LEED Silver New Design and Construction

• High reflective roof material (reflects heat; cooler in summer)

• Highly efficient mechanical systems with at least 14% reduced energy usage

• High performance insulated Low E glass systems

• Enhanced Commissioning of mechanical systems

• Indoor Air Quality Management plan during construction

• Use of recycled materials• Irrigation supplied by recycled water;

water-saving fixtures• Guest room energy management

systems

http://www.google.com/imgres?imgurl=http://www.tlc-engineers.com/images/LEED_cert_silver.jpg&imgrefurl=http://www.tlc-engineers.com/sustainable_projects.htm&usg=__ZwLEMn5jnXpUv6QhhtCt1IPAFS8=&h=240&w=240&sz=72&hl=en&start=0&sig2=6-Q6Z1elkCP6oOkXONGZ0w&zoom=1&tbnid=ttAvIIJ2SbRTMM:&tbnh=109&tbnw=109&ei=mSH1TPbxAsH68AaW8r22Bw&prev=/images%3Fq%3D%2522LEED%2BSilver%2522%26hl%3Den%26safe%3Doff%26biw%3D1145%26bih%3D516%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=430&vpy=103&dur=881&hovh=192&hovw=192&tx=106&ty=108&oei=mSH1TPbxAsH68AaW8r22Bw&esq=1&page=1&ndsp=22&ved=1t:429,r:3,s:0

Sales Projections

http://www.google.com/imgres?imgurl=http://static.businessreviewonline.com/brnewsitesimagesrootfilepath/File_root/Article/omni_dallas_hotel_celebrates_topping_out_ceremony_in_dallas_101025/omni_dalls.jpg&imgrefurl=http://www.worldinteriordesignnetwork.com/news/omni_dallas_hotel_celebrates_topping_out_ceremony_in_dallas_101025/&usg=__dCO57UPzZtPfJtlTb_nEcTuHwjM=&h=280&w=336&sz=95&hl=en&start=20&sig2=ZB3RSowmTsrX24Qw2Uy9wg&zoom=1&tbnid=JxRE666gHAXQWM:&tbnh=110&tbnw=120&ei=myP1TNeaH4eynwfNt-TXCQ&prev=/images%3Fq%3D%2522Omni%2BDallas%2BHotel%2522%26hl%3Den%26safe%3Doff%26sa%3DG%26biw%3D1145%26bih%3D516%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=697&vpy=220&dur=570&hovh=110&hovw=132&tx=119&ty=100&oei=YiP1TJj3DoL88Ab6uKDGBw&esq=2&page=2&ndsp=21&ved=1t:429,r:11,s:20

25

Convention Sales

• In the 15 months after the Hotel announcement doubled city wide bookings from the 15 months prior

• 2012: – Dallas has already confirmed 18 city-wide conventions—

historic average 14• 2013:

– Dallas has already confirmed 19 city-wide conventions

26

Convention Sales

• In 2010:– Bookings for 1,020,603 room nights for future years– Economic Impact of $1,500,898,773– No. 1 in Texas for room night bookings for the sixth

straight year

27

Hotel Sales TimingGroup Business:• 75% of annual business• Conventions/large meetings-typically books 2-5 years before arrival• Small meetings - under 400 rooms book 3-24 months before arrival

Transient Business:• 22% of annual business• Leisure Guest - 90% book less then 21 days before arrival• Managed Corporate Travel – booked 4th quarter for next year• Rack rate travel - typically books over high demand periods and/or short term

Contract Business:• 3% of annual business• Airline Crews - contracts short term for 1 to 2 years, set number of rooms 7

days per week but get the lowest rates• Training - corporations that have training needs sign long term agreements to

get a favorable rate (usually weekday business)

28

Omni Sales Effort

• Sales effort for the Omni Convention Center Hotel started September 2009

• The sales effort matches the locations of large association conventions, corporate hubs and is aligned with the DCVB and Omni Global Sales

29

Omni Sales Summary

• Selling since September 2009:– 2012 will require more short term group bookings and transient

rooms due to meeting planners not willing to book shortly after hotel opens

– 2013 with 12 more months to book group already has more contracted group revenue then 2012

– 2014 also looks very strong with 87% of the 2012 revenue with 24 additional months to book groups

• Booked from 2009 through November 30, 2010:– Total definite group room nights: 174,295– Total definite group room revenue: $31,788,713– Total hotel room revenue $60,000,000

• Inclusive of Food & Beverage Revenue

30

Omni Sales Effort

• Omni Dallas is projected at 75% of its room revenue in group sales (20% of the group is projected to book in the year for the year)

– 2012: Lagging slightly behind projections– 2013: Exactly on projections at 30% – 2014: Exceeding projections at 22%

31

Omni Dallas 2012 Total Projected Room Revenue

• Booked Group Revenue as of 11/30/10 $ 10,000,000– Contracts Executed $9,148,788

• Group Revenue to be booked in 2011 $ 11,000,000 • Group Revenue to be booked in 2012 $ 5,000,000• Transient Revenue booked in 2012 $ 10,000,000

• Total Projected Room Revenue $ 36,000,000

DCCH M/WBE Program

Utilization and Building Capacity

33

M/WBE Highlights

• Exceeding City’s Good Faith goal of 25% participation– Currently 29.53% – Outstanding outreach with over 2,000

companies contacted• Outstanding collaborations with successful

partnerships and mentoring relationships• Outstanding capacity building with

informative programs and workshops

34

Utilization and Building Capacity

• M/WBE utilization is an important goal, but Building Capacity is the

differentiator • Hotel project provides an exciting

opportunity • Successful results will have far

reaching impacts

35

DCCH M/WBE Program Goals

• Outreach: – Increase local M/WBE awareness and participation

• Collaboration:– Create meaningful M/WBE joint ventures and

partnerships• Training:

– Implement capacity building programs for local M/WBE firms

• Utilization: – Exceed the City’s goals for M/WBE participation

36

Outreach: Strategies

• Provide M/WBE certification assistance, conduct orientation on bid process, and coordinate collaboration between primes and subcontractors

• Communicate with local agencies to increase access to project information and bid process

• Provide easy access to potential M/WBE firms• Conduct and participate in networking events to

expand M/WBE participation

37

Outreach: Results

• M/WBE Certification and Technical Assistance– One-on-one meetings between M/WBE firms and the

Project Team representatives on weekly basis to learn about M/WBE certification assistance, project opportunities and the bidding process

– To date, have met with over 500 firms to provide assistance about project opportunities

– To date, have met with over 100 to assist in obtaining M/WBE Certification

38

Outreach: Results• Utilized online bidding specifications and bidding information via

www.ISQFT.com• Executed project update website: www.dallascchotel.com• Published a quarterly electronic newsletter sent to over 2,000 M/WBE firms

and professionals per distribution• Made available Bid Plans for review at the following locations:

– Black Contractor Association (BCA)– Dallas Black Chamber of Commerce (DBCC)– Greater Dallas Asian Chamber of Commerce (GDACC)– Greater Dallas Hispanic Chamber of Commerce (GDHCC)– DFW Minority Supplier Development Council (MSDC)– Regional Hispanic Contractors Association (RHCA)

• Solicited inclusion of project information in advocacy groups newsletters and websites

• Established an online vendor registration to do business with Omni Hotels• Advertised in local minority press to increase awareness and information

regarding project opportunities

http://www.isqft.com/

http://www.dallascchotel.com/

39

Outreach: Results

• Coordinated major Networking events to increase awareness and distribute information for all MWBEs interested in working on project

• Developed a list of vendor opportunities for the new Omni Dallas Hotel

• Conducted over 500 meetings with MWBE firms to encourage participation in bidding process;

• Have participated in over 80 workshops, seminars and events to date

• Produced a large diversity vendor fair for M/WBE firms to meet with Omni senior management, corporate buyers, hotel buyers, procurement staff, hotel managers and hotel facility engineers

• Conducted the first of four M/WBE supplier fairs with Omni• Established an Omni Diversity Partners Program with local

chambers of commerce

40

Collaboration: Strategies

• Promote team-based relationships between prime contractors and M/WBE contractors

• Promote creation of meaningful M/WBE joint ventures and strategic partnerships

• Develop mentor-protégé relationships to encourage one- on-one capacity building training

• Encourage long-term strategic partnerships for future projects

41

Collaboration Results: Partner Program

• Implemented a joint venture between Balfour Beatty and two M/WBE firms: Pegasus Texas and H.J. Russell Co. (BRP JV)

• Instituted Partner Program to align primes/subcontractors and provide project management credentials: – LAZO Technologies & Walker Engineering – Low Voltage

Construction Management– TinMan Enterprises & Irwin Steel Erectors – Structural Steel

Supplier and Fabricator– Lawrence Engineering & Henley/Johnston & Associates –

Materials Testing– Trainor Glass Company & and Ventura Enterprises - Glass and

Glazing

42

Collaboration Results: Mentor/Protégé Program

• BRP JV promoted mentoring opportunities in the area of project management to:– Vendigm Construction

• Brandt promoted mentoring opportunities on a wide range of technical areas in the mechanical and plumbing field to:– Barbosa Construction– Beard Integrated Systems– Concepts Facilities Services– Echols & Sons Plumbing– Momentum Mechanical

43

Collaboration Results: Strategic Partnerships Going Forward

– Balfour and H.J. Russell (Parkland)– Balfour and Azteca Enterprises (Parkland) – Balfour and K Strategies Group (Parkland) – Balfour and H.J. Russell (DFW)– Balfour and Azteca Enterprises (DFW) – Balfour and K Strategies Group (DFW) – Balfour and Azteca Enterprises (Irving

Convention Center)

44

Training/Capacity Building: Strategies

• Expand opportunities for M/WBE involvement by alleviating bonding requirements

• Provide capacity building workshops to aid in development of strong business practices in the areas of: – Accounting– Business Development– Cost Control & Cash Flow Management– Estimating & Bidding– Safety

45

Training/Capacity Building: Results

• Instituted Subguard program helping small companies by– alleviating bonding and insurance barriers – providing access without requiring Payment &

Performance Bond– providing financial protection to the project

46


• Focused 2010 workshops on a wide range of topics including:– iSqFt Preconstruction Software Utilization– Leadership Skills – Project Managers and

Superintendents (TWICE)– Estimating 101– Mentor-Protégé / Strategic Partnerships– Marketing / Business Development

• Will focus 2011 workshops on the financial stability of M/WBE firms

47


• Partnered with the Regional Hispanic Contractors Association (RHCA), Occupational Safety and Health Administration (OSHA), and the Construction Association (TEXO) to provide a 10-hour OSHA Safety Training for contractors working on the DCCH– Offers 10-hour English and Spanish OSHA classes and 30-hour

safety training classes for its contractors on a monthly basis• Partnered with Hartford Financial Services to provide

leadership skills training for project managers and superintendents

• Developed internal supplier diversity training documents for annual training through Omni

• Held Omni supplier diversity training for hotel managers, facility engineers, buyers and other pertinent staff

48

M/WBE Utilization: Specific Goals

• Exceed City’s Good Faith goal of 25% • Achieve a Hotel operations M/WBE

overall spending goal 25%

49

M/WBE Utilization: Strategies

• Increase local M/WBE awareness and participation throughout the project

• Create meaningful M/WBE joint ventures and partnerships

• Implement capacity building programs for local M/WBE firms

50

M/WBE Utilization: Results

• As of October 31, 2010– 98 MWBEs on the DCCH Project Team– Awarded 116 contracts to M/WBEs totaling $68 million– Contracts range in size from $10,000.00 to $7,729,000.00– This accounts for 29.53% of the project value for contracts

issued to date • Omni developed and published supplier diversity

commitment statement• Omni created corporate supplier diversity program

including written policies and procedures

51

Program Results— Goals are being achieved

• Outreach: – Enhanced communications and increased participation

• Collaboration:– Promoted meaningful M/WBE joint ventures & partnerships

• Training: – Provided capacity building programs for M/WBE firms

• Increase Utilization: – Exceeding City’s goals for M/WBE participation

52

Ancillary Development Update

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54


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Ancillary Development Background

• Hotel is serving as a catalyst for adjacent development:– Goal is to add additional restaurant, retail,

entertainment and commercial tenants– Sites have been identified and conceptual

plans created– Improve the surrounding areas with enhanced

connectivity and pedestrian enhancements– All resulting in developing a destination for

year-round activities

56


• Preliminary marketing package distributed to hundreds of retail tenants

• In final negotiations with a 30,000 sqft office tenant to occupy the top two floors of new four story building beside the Hotel

• Currently drafting a LOI for a 5,000 sqft restaurant/bar tenant for a portion for first floor of new building

• In discussions with a well know chef looking to expand to the Dallas area requiring approximately 4,000 sqft

• In discussions with a Business Center to locate adjacent to the Convention Center

• Currently undergoing a Demographic Study to include in marketing materials

• Continue to see interest from many local restaurant/bar operators looking to locate next to the Convention Center Hotel

57

Ancillary Development Update• Existing conditions:

58

Enhance S. Lamar Tunnel

• Create of pedestrian friendly environment• Enhance of existing DART Station—

eventual connectivity to Love Field/DFW• Establish store front activities along both

sides including retail, restaurant and entertainment

• Initial funding from NCTCOG Sustainable Development Grant ($2.695M)

59

S. Lamar Tunnel: Conceptual Designs

60

Build on Existing Connectivity

• Explore Skybridge to Reunion Parking

61

Future Development

Discussion

DATE

TO

SUBJECT

Memorandum

CITY OF DALLAS

December 3, 2010

Members of the Economic Development Committee: Ron Natinsky (ChairL Tennell Atkins (Vice-Chair), Dwaine Caraway, Jerry R. Allen, Sheffie Kadane, Ann Margolin, Linda Koop, Steve Salazar

TEFRA Bond Sale (Financing for McCommas Bluff landfill Gas Plant)

The December 8, 2010 Addendum includes an item for the Council's consideration of a request to the Mission Economic Development Corporation to issue $55 million of taxexempt solid waste disposal revenue bonds. The proceeds will be used by Dallas Clean Energy to construct improvements to the landfill gas processing plant at the McCommas Bluff Landfill.

The City of Dallas is not being asked to issue debt; nor will the bonds will be an obligation, a debt, or a liability of the City; and the City's name will not appear on the bonds. Further, the financing documents will include language that provide for the City's right to payments from the lease of gas revenues to be superior to those rights of any party receiving payments associated with the debt service on the bonds.

The McCommas Bluff Landfill generates large volumes of gas daily, and when treated, the gas is usable and salable as a green energy commodity. Dallas Clean Energy LLC (or, DCE) holds a lease with the City through 2024 with the obligation to manage the gas to its best use. The gas processing plant is now 12 years old, and new technologies have emerged that, once incorporated to the current plant, will allow the plant to handle the increasing volumes of gas the landfill is projected to produce - and to do so more efficiently.

DCE has determined that a capital expenditure of $55m is needed to effect the facility improvements and to refinance existing debt. They sought a low-cost financial instrument for this amount through the Mission Economic Development Corporation (or MEDC) of Mission, Texas, using the revenue from the sale of the gas as the means to repay the bonds. MEDC will issue revenue bonds as tax-exempt, provided that (1) the City requests the financing and approves the planned use of the funds as suitable for the work and that (2) a public hearing (a TEFRA hearing) meeting the statutory requirements is held on the matter.

"Dallas, the City that works: Diverse, Vibrant, and Progressive"

On the first matter, the City stands to benefit from the improved processing technology, as DCE remits royalty (lease) payments to the City quarterly - with an annual total of $1.3m in paid royalties for FYI0 and a projected FYll amount of $1.9m. Improving the processing will allow DCE to sell more of the gas, and so further the royalty payment due to the City.

On the second matter, DCE has scheduled the required TEFRA hearing for Wednesday, December 8th at 8:30 am at Dallas City Hall. The notice was published on November 24th; satisfying the 14 day minimum advance posting requirement.

Please let me know if you have any questions.

~~j) Jeanne Chipperfield Chief Financial Officer

C: Mary K. Suhm, City Manager Deborah A. Watkins, City Secretary Thomas P. Perkins, Jr., City Attorney Craig D. Kinton, City Auditor Judge C. Victor lander, Administrative Judge Ryan S. Evans, First Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Forest E. Turner, Assistant City Manager A.C. Gonzalez, Assistant City Manager Mary Nix, Director, Sanitation Services

development: - Dallas

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