Dallas High School Redevelopment Wynne Jackson

Economic Development Committee March 5, 2012

Introduction
Discuss the redevelopment of the Historic Dallas High School property into a multifamily housing project Recommend Economic Development Committee Approval of: -100% ten year Historic Preservation Abatement on current and added value to the Dallas High School Building - 90% ten year Real Property Tax Abatement on new construction
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History
Dallas High School Crozier Tech
The original three-and-one-half story Classical Revival building, designed by famed Dallas architecture firm Lang & Witchell was completed in 1907. A subsequent addition was made in 1911. Additional buildings were constructed on the site until 1941. Originally known as Dallas High School, the complex was renamed in 1941 for Dr. Norman Robert Crozier, a well-regarded principal and later DISD superintendent. The original structure, along with a 25-0 buffer, was designated a City of Dallas Landmark in December 2000. It is also listed on the National Register of Historic Places.

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Current Conditions

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Developer Background
Wynne/Jackson, Inc.
Clyde Jackson, Chairman/CEO Developed Plaza of the Americas mixed use complex and other properties in Dallas, Fort Worth, Houston and Atlanta 7,000 acres of master-planned community development totaling more than 10,000 lots and 5 million + square feet of mixed-use development Fee development partner is High Street Residential (CBRE / Trammell Crow Company)
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Project Site

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Project Site Plan

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Project Description
Project Site
2214 Bryan Street Approximately 5.42 acres

Existing Dallas High School 125,058 gross sq. ft. planned for conversion to multi-family Three new multi-family buildings (397,000 sq. ft.) will be constructed on the site
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Project Description
Final Development
1 historic Dallas Landmark conversion 3 new multi-family buildings 503,000 total square feet 510 class A multi-family units Investment Estimates
Dallas High School conversion - $10,000,000 New construction hard costs - $40,000,000

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Project Rendering

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Proposed Incentives
The Dallas High School conversion project would not occur without the proposed tax abatements because the project would not meet the requirements of debt and equity partners Real Property Tax Abatement
Non-Conforming within Public Private all residential New construction only 90% Ten-years
Estimated benefit: $2,859,200

Historic Preservation Tax Abatement

Estimated benefit: $923,690

On conversion of Dallas High School only 100% Ten-years *Dallas County has expressed willingness to participate and the project meets the Countys criteria
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Proposed Terms
Real Property Abatement
Developer completes the new construction with an estimated investment of $40,000,000 Developer verifies investment and obtains a Certificate of Occupancy

Historic Preservation Abatement

Owner spends at least 75% of the existing DCAD value of the site Owner complies with the Certificate of Appropriateness process and other requirements to qualify for the tax abatement
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Other Pending Items

Ingress / Egress
Entrance off Pearl will be relocated and enlarged New exit on Bryan to be constructed Request for abandonment of a small portion of city owned land pending Owner would like to take over the plantings and maintenance of the city owned lot adjacent to the site along Pearl Street (License Agreement)
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Adjacent open space

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Fiscal Impact
10 Year Total City GF Revenue Generated Total City GF Service Costs Net Impact Before Incentives City Incentives Net City Fiscal Impact *See Exhibit A 20 Year

$11,258,669 $25,145,952 $4,999,300 $6,259,369 $3,782,890 $2,476,479 $10,292,146 $14,853,806 $3,782,890 $11,070916

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Economic Impact
Economic Output Direct Impact Indirect and Induced Impact $58,855,534 $47,084,427

Total Impact

$105,939,961

*See Exhibit A
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Strategic Importance of Proposed Project Preservation of a Dallas Historic Landmark Adds significant amount of residential units, increasing residential population downtown Transit Oriented Development, adjacent to DART station Maintains Downtown redevelopment momentum
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Recommendation
Staff recommends approval of the proposed ten-year 90% real property tax abatement and the proposed ten-year 100% historic preservation tax abatement.

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Next Steps
On March 5th, the Landmark Commission will conduct its public hearing and consider the Certificate of Appropriateness for the project On March 28, 2012, City Council will consider authorizing a public hearing for the purpose of creating Reinvestment Zone 77 (required by Chapter 312 of the Texas Tax Code) On April 11, 2012, City Council will consider creation of Reinvestment Zone 77 and authorizing the described tax abatements.
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Exhibit A: 10 Year Impact

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Exhibit A: 20 Year Impact

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Questions?

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