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The Bottom

Revitalization Project - 2006 Bond

A Briefing to the Housing


Committee
Housing Department
June 2, 2008

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KEY FOCUS AREA:
ECONOMIC VIBRANCY

PURPOSE:

Recommendation to fund $500,000 in


Proposition 8 funds to assist in the
development of a portion of the residential
component for the Economic Development
Project in the “Bottom”, as detailed in the
Master Plan for the area.

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2006 General Obligation Bonds
„ November 2006 – a $41.5M in General
Obligation Bonds was approved by voters to
fund:
„ Southern Sector
„ Public Infrastructure for City right-of-ways or
dedicated easements, and may be used for
planning, designing, constructing, improving,
extending and expanding public streets, and
utilities
„ Economic development projects in connection
with commercial, retail, residential, and mixed-
use development
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2006 General Obligation Bonds (cont’d)
„ Other areas of the City
„ Transit Oriented Developments for economic
development projects in connection with
commercial, retail, residential, and mixed-use
development
ƒUses include development through:
„ Acquisition of land including improved and
unimproved properties, the demolition of existing
structures, making loans and grants, and otherwise
providing assistance for private commercial,
industrial, retail, residential and mixed-use
developments

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“The Bottom”
Community-Wide Master Plan
„ This Plan outlines a comprehensive vision for the
area, developed in cooperation with residents, local
churches, and private/public sector entities
„Revitalization of the Bottom by creating a desirable
community and reestablishing this neighborhood
through partnerships
„Texas Heavenly Homes, Ltd. (THH)
„Bottom Community Leadership
„Golden Gate Missionary Baptist Church
„Shiloh Missionary Baptist Church
„Golden S.E.E.D.S. Foundation
„City of Dallas 5
“The Bottom”
Community-Wide Master Plan (cont’d)
ƒ Located in City Council District 7
ƒ The west half of the Bottom has benefited from sizable
investments from
ƒ Golden Gate Missionary Baptist Church (GGMBC)
ƒ Shiloh Missionary Baptist Church
ƒ Both maintain a strong presence
ƒ The City of Dallas has included the “Tenth Street
Bottoms” area in the Trinity River’s Economic Land Use
Plan and incorporated proposed land uses as part of
the “forwardDallas” plan

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“The Bottom”
Community-Wide Master Plan (cont’d)
„ Bound by I-35 to the west, the Trinity River to
the north, Corinth St. to the east and 8th St. to
the south
„ Of approximately 92 acres with 142
predominately small single-family homes
„ Of 307 vacant lots, roughly 68% of the lots
directly adjacent to the Trinity River Levee are
vacant and on dead-end streets

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The Bottom
Community-Wide Master Plan Legend
„ Area 1: Commercial/Low Rise consist of primarily
ground floor retail or office with surface parking
„ Area 2: Single-family residential with yards on the side,
front and rear, driveways with detached or attached
garage
„ Area 3: Commercial/Mid-Rise consist of mainly ground
floor retail with additional uses above
„ Area 4: Yvonne A. Ewell Townveiw Center
„ Area 5: Green space and Parks- Eloise Lundy Park
„ Area 6: Multi-family Residential/Mid-Density
„ Area 7: Harllee Elementary School
„ Area 8: Dallas Housing Authority Brackins Village
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Area 1:
Commercial/Low Rise
„ Land development will consist of
primarily ground floor retail or office with
surface parking
„ Ideal for small shop retailers serving the
needs of the community
„ Development occurring along highly visible
corridors with a high traffic volume

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Area 1:
Golden Gate Missionary Baptist Church
„ Civic/Institutional/Religious
„ GGMBC, “The Flagship Church”, was
established in the 1930’s in a small
house across from the church’s present
location
„ In 1934, a frame building with an annex
built on four acquired lots
„ GGMBC has expanded into the largest
congregation in the Bottom
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Area 1:
Golden Gate Missionary Baptist Church (cont’d)
Church Campus
„ GGMBC continue to acquire adjacent properties with
church funds, assembling sufficient property to construct
new
„ Dining hall and kitchen
„ K-12 boy’s school
„ Children’s ministry
„ Office space and classrooms
„ Housing for elderly, and
„ Recovery Village – housing for men formerly engaged in
substance abuse
„ GGMBC now owns 10 lots, with the goal of assembling
a sufficient critical mass to fully realize it’s vision 12
Area 1:
Golden Gate Missionary Baptist Church (Cont’d)

Church Campus Development


Opportunity Area

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Area 2:
Single-family
„ Single-family consisting of:
„ Freestanding dwelling
units with yards
„ Driveways and/or alleys
with a detached or
attached garage
„ Separate lots maintained
by owner

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Area 3:
Commercial/Mid-Rise
„Commercial/Mid-Rise
consisting of
„ Mainly ground floor retail
with additional use above
„ Additional retail and/or
office use
„ Parking on adjacent
surface lots and/or
structured parking

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Area 4:
Yvonne A. Ewell Townview Center
„ Townview, DISD flagship
incorporates six independent
magnet schools
„ Gifted and talented
„ Science and engineering
„ Government, law and law
enforcement
„ Business and management
„ Education and social services
„ Health professions

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Area 5:
Green space and Parks
„ Open space/park areas
consist of:
„ Land set-aside for
public use and
enjoyment
„ Few to no buildings
and area maintained
for public recreation or
preservation
„ Single lot/block or
span many acres

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Area 5: Eloise Lundy Park
Trinity Gateway Amphitheater (cont’d)
Future Bond sales could
include pedestrian access
directly from Bottom to
River floodway and a
public gathering space
such as an outdoor
amphitheater

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Area 6:
Multifamily Residential/Mid-Density
„ Multifamily residential/Mid-
density consists of:
„ Freestanding buildings,
one to multiple levels
„ Dwelling units with
bedroom(s), kitchen,
living areas
„ Both indoor and outdoor
common space, as well
as parking and other
amenities
„ May include small retail
establishments

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Area 6:
8th St Retail @ Hutchins (cont’d)

High traffic area ideal for


development of small shop retail
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Area 7:
N.W. Harllee Elementary School
„ Harllee Elementary
School is located
directly across the
street from Townview
Center on 8th Street
„ Small campus with
270 students, PK-5th
and 26 faculty
members

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Area 8: Brackins Village
Dallas Housing Authority
„ “The Village”, a 152-unit
complex with numerous
multi-family structures
in good repair
„ Was constructed in
1952 as an addition to
the Frazier Courts
complex on Hatcher
Street
„ DHA is planning future
demolition and
replacement

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Housing: Texas Heavenly Homes, Ltd
Applicant
„ Texas Heavenly Homes, Ltd., a subsidiary of Hanover Property
Management Company, a Texas Land Development Co.
„ THH formed in 2004 for the explicit purpose of redeveloping the
Bottom
„ Hanover Properties
„ Richard LeBlanc, Executive Vice-President
„ Hanover has over 30 years of land development experience in
Dallas/Ft. Worth
„ Approximately 4,000 acres developed for residential
„ Over 6500 lots developed with home construction coordinated with
builders
„ Developer of Master-Plan Communities for custom, middle-
market, second-time homebuyer communities with high quality
residential development
„ Lowes Farm and Mira Lagos, located adjacent to Joe Pool Lake, are
approximately 1,000 acres of mixed-income communities
„ Hanover Retail/Commercial development often accompanies the
residential
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Texas Heavenly Homes, Ltd (Cont’d)
„ THH Founders
„ Richard LeBlanc, Chairman
„ Gabriel Meadows, President, and Limited Partner
„ 5950 Berkshire Lane, Ste. 1200
„ Dallas, TX 75225
„ THH has made a commitment to building quality homes
that are affordable
„ Single family housing will replace existing vacant lots and
substandard housing
„ THH owns approximately 40 lots and has 15 under
contract
„ THH has identified 25 Dallas Land Bank lots that they
intend to acquire

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Texas Heavenly Homes, Ltd (Cont’d)
„ THH funding request is for:
„ Land acquisition – vacant, improved blighted and/or
crime ridden residential properties
„ Predevelopment expenses (i.e. environmental assessment,
appraisal, survey)
„ Demolition and Relocation
„ Bond funds not to exceed appraised value plus
demolition
„ For the purpose of constructing residential
„ Single-family homes will sell for $110,000 to $130,000
with floor plan starting at 1233 sq’ to 1900 sq’
„ Residential development will include driveways and/or
alleys with a detached or attached garage

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Texas Heavenly Homes, Ltd (Cont’d)
Funding
„ Sources:
„ Equity $* 205,000
„ 2006 Bond Funds $ 500,000
Total $ 705,000
„ Uses:
„ Acquired Lots $ 205,000
„ Property Acquisition** $ 500,000
Total $ 705,000

* 36 Lots already acquired by THH, Ltd


**Demolition Relocation and Pre-development costs are
included
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THH Model Homes

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THH Model Homes (cont’d)

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THH Model Homes (cont’d)

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THH Model Homes (cont’d)

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Texas Heavenly Homes, Ltd. Loan
„ The initial loan amount will be $500,000 in Bond
funds
„ Any additional Bond commitments will be
evaluated after next Bond Sale in November
2008

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THH, Ltd. Loan (Cont’d)
„ Loan Terms:
„ Zero percent interest with maturity date of
seven (7) years
„ If Borrower fails to expend all of the Loan
proceed within two years of execution of the
Note, or to redevelop the acquired properties
with residential units within seven years of
execution of the Note, then the portion of the
project expenditures for projects that are
incomplete will be due and payable

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THH, Ltd. Loan (Cont’d)
„ Upon CO, Borrower will be released from
indebtedness on the Note for corresponding Bond
loan proceeds advanced and the Bond Deed
Restrictions terminated on that property
„ City funding will not exceed appraised value for
acquisition
„ New deed restrictions to the homebuyers will be
placed on the land and improvements if federal
funds are used
„ All other funding and required financing (Gap) to
be provided by THH
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THH, Ltd. Loan (Cont’d)
„ If Borrower fails to comply with the
expenditure or construction requirements, the
City of Dallas has the option to require
Borrower to convey fee simple title to the
properties acquired with Bond funds under the
loan, to the City, free of any liens or
encumbrances not acceptable to the City
„ If Borrower obtains acquisition loans from
another Lender for remainder of acquisition
costs, the City will subordinate its lien position

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Recommendation
That the Housing Committee approve the
Bottom proposal for City Council
consideration to:
„ Texas Heavenly Homes, Ltd., award of
$500,000 in 2006 Bond Funds
„ Evaluation of progress on Bottom
revitalization project after November ’08
Bond Sale and possible addition of $500,000

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Next Steps
„ Continue discussions with THH on terms of
loans and obligations of funds
„ June 25, 2008 – City Council Consideration
of $500,000 in Bond Funds
„ July 2008 Acquisition residential properties to
begin
„ January 2009 – Evaluate timing of future
funding of project

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