[A. Meeting Opening] [00:00:03] ALL RIGHT, WELCOME TO THE ECONOMIC DEVELOPMENT CORPORATION BOARD MEETING. TODAY'S THURSDAY, AUGUST 20TH, AND THE MEETING IS CALLED TO ORDER AT 6:03 PM. IF EVERYBODY PLEASE RISE, I'LL LEAD US IN THE INVOCATION AND PLEDGE OF ALLEGIANCE. OUR DEAR FATHER IN HEAVEN, WE ARE GRATEFUL FOR THE OPPORTUNITY TO MEET TOGETHER THIS EVENING AND GRATEFUL FOR THE SACRIFICE AND THE TIME THAT THE BOARD PUTS TO, TO COME HERE AND TO WORK FOR THE GOOD OF THE CITY OF SACHSE. WE ASK FOR THY BLESSINGS OVER THE CITY, OVER OUR FIRST RESPONDERS, OVER OUR STAFF, AND OVER OUR CITIZENS. PLEASE BLESS US WITH PROSPERITY IN ALL THE THINGS THAT WE DO. PLEASE BLESS US THIS EVENING THAT WE'LL BE ENLIGHTENED TO KNOW THE RIGHT THINGS TO DO TO HELP THE CITY PROGRESS AND MOVE FORWARD. WE'RE GRATEFUL FOR THE MANY BLESSINGS THAT THOU GIVEST TO US EACH AND EVERY DAY AND FOR THE BLESSING THAT WE HAVE TO LIVE IN THIS CITY, IN THIS STATE, AND IN THIS COUNTRY. AND THESE BLESSINGS WE GIVE YOU THANKS FOR AND ASK YOU FOR, AND DO SO IN THE NAME OF JESUS CHRIST. AMEN. IF YOU'LL JOIN ME IN THE PLEDGE OF ALLEGIANCE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG, I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE. THANK YOU VERY MUCH. WE'LL MOVE ON [B. Public Comment] TO THE PUBLIC COMMENT. THE PUBLIC IS INVITED TO ADDRESS THE BOARD REGULARLY REGARDING ANY TOPIC NOT ALREADY ON THE AGENDA. FOR ACTION OR PUBLIC HEARING. COMMENTS REGARDING THE CONSENT AGENDA OR ANY DISCUSSION-ONLY ITEMS ON THE AGENDA SHALL BE ADDRESSED DURING THIS PUBLIC COMMENT SECTION. THE TIME LIMIT IS 3 MINUTES PER SPEAKER. A PUBLIC COMMENT CARD SHALL BE PRESENTED TO THE ACTING SECRETARY PRIOR TO THE MEETING. ACCORDING TO THE TEXAS OPEN MEETINGS ACT, THE BOARD IS PROHIBITED FROM DISCUSSING ANY ITEM NOT POSTED ON THE AGENDA, BUT WE'LL TAKE COMMENTS UNDER ADVISEMENT. I DO HAVE ONE COMMENT CARD HERE FROM MR. MARTY HOLBOKE. IF YOU'D LIKE TO COME UP. I'M LOUD. YOU GOT BUTTONS UP HERE. MARTY HOLBOKE, 5511 OAK RIDGE CIRCLE, SACHSE, TEXAS, TOP OF THE HILL. 5TH STREET DISTRICT, YOU SPENT $10 MILLION UP THERE SO FAR, AND YOU HAVE NEVER SAID WHAT THE RETURN OF INVESTMENT IS. SO, BEFORE YOU EVEN SIT HERE AND CONSIDER SPENDING MORE MONEY, WHEN DO WE GET TO KNOW WHAT IS THE RETURN OF INVESTMENT AND TIME FRAME FOR THE EXISTING $10 MILLION? YOU ALL HAVE DEMONSTRATED VERY MUCH THAT YOU KNOW HOW TO SPEND MONEY. THAT'S EASY. A 5TH GRADER CAN DO IT. MISS HOWARTH OVER HERE, SHE DOESN'T ANSWER EMAILS, SO YOU DON'T KNOW. YOU SEND HER AN EMAIL, YOU ASK HER A QUESTION, AND SHE SHOWS UP LATE AGAIN. SO, WHEN DO WE GET TO KNOW WHAT YOU'VE DONE FOR ECONOMIC DEVELOPMENT? THE STATION. WE GOT A 7-ELEVEN, A 7-ELEVEN, AND ANOTHER GAS STATION. WOOHOO! IF THAT'S WHAT YOU'RE RESTING YOUR LOYALS ON, THE BAR AIN'T SET VERY HIGH FOR ECONOMIC DEVELOPMENT IN THE CITY OF SACHSE. WHAT IS THE RETURN OF INVESTMENT FOR THE EXISTING $10 MILLION AND THE TIMEFRAME THAT THAT WILL OCCUR, BECAUSE YOU'RE ALL FIXING TO GET EMAILS ON IT. SO, YOU BETTER START HUDDLING AND FIGURING OUT WHAT YOU'RE GOING TO SAY. THANK YOU. YOU GOT A MINUTE AND A HALF. DO I HAVE ANYBODY ELSE THAT WOULD LIKE TO ADDRESS THE BOARD? SEEING [C. Consent Agenda] NONE, WE'LL MOVE ON TO THE NEXT ITEM. THE CONSENT AGENDA ITEM C. CONSENT AGENDA ITEMS ARE ROUTINE OR ADMINISTRATIVE IN NATURE, HAVE BEEN DISCUSSED PREVIOUSLY AT A BOARD MEETING, AND/OR DO NOT WARRANT DISCUSSION. THE BOARD WILL ACT UPON THESE ITEMS WITH ONE MOTION. THERE'LL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS A BOARD MEMBER REQUESTS THE ITEM BE REMOVED FROM THE CONSENT AGENDA. IF YOU HAVE COMMENTS RELATED TO THE CONSENT AGENDA, PLEASE ADDRESS THEM IN PUBLIC COMMENT SECTION OF THE MEETING. ITEM C1 IS APPROVED. THE JUNE 2020, JUNE 25TH, 2026 REGULAR MEETING MINUTES. AND ITEM C2 IS ACCEPT THE MONTHLY REVENUE EXPENDITURE REPORT FOR PERIOD ENDING MAY 31ST, 2026. SO, I'LL ENTERTAIN ANY MOTIONS. A MOTION TO APPROVE THE JUNE 25TH [00:05:01] REGULAR MEETING MINUTES. I'VE GOT A MOTION TO APPROVE THE JUNE 25TH. NOW THIS, WE, WE APPROVE IT ALL AT ONCE. OH, SO UNLESS YOU, UNLESS YOU WANT TO PULL ONE OFF, IS THAT, WE'RE GOOD. CONSENT AGENDA AS PRESENTED. OKAY. JUST SO I MAKE SURE WE GOT THIS RIGHT. SO, I HAVE A MOTION FROM JERMAINE TO APPROVE THE CONSENT AGENDA AS PRESENTED. DO I HEAR A SECOND? I SECOND. I'VE GOT A SECOND FROM CHINELO. ANY OTHER DISCUSSION? IF NOT, WE CAN CAST OUR VOTES. WE COUNT VOTES LIKE CALIFORNIA COUNTS ITS AS WELL. THAT PASSES 7-0 UNANIMOUSLY. THANK YOU. ITEM D, [1. Receive any reports and presentations by the Sachse Economic Development Corporation President, Board Members, Executive Director, and staff regarding items of community interest; special events; announcements and activities; office, industrial, commercial, or retail business retention; and marketing projects.] DISCUSSION ITEMS. THESE ITEMS FOR THE BOARD AND STAFF TO DISCUSS AS NEEDED. AGAIN, COMMENTS ON DISCUSSION ITEMS SHALL BE ADDRESSED IN THE PUBLIC COMMENTS SECTION. ITEM D1 IS RECEIVING REPORTS AND PRESENTATIONS BY ECONOMIC, SACHSE ECONOMIC DEVELOPMENT CORPORATION PRESIDENT, BOARD MEMBERS, EXECUTIVE DIRECTOR, AND STAFF REGARDING ITEMS OF COMMUNITY INTEREST, SPECIAL EVENTS, ANNOUNCEMENTS, AND ACTIVITIES RELATED TO OFFICE, INDUSTRIAL, COMMERCIAL, RETAIL BUSINESS RETENTION AND MARKETING PROJECTS. SO, THIS I WILL TURN OVER TO MR. POTTS. MR. PRESIDENT, THANK YOU FOR THAT. WE'LL BE VERY BRIEF WITH THE STAFF REPORT THIS EVENING. WE HAD THE SACHSE FARMERS MARKET AUGUST 8TH. THE PEACH TRUCK DID A SPECIAL STOP AT OUR FARMERS MARKET. THAT WAS A, A COOL EVENT. YOU CAN SEE OUR NEXT MARKET, SEPTEMBER 12TH, IS GOING TO BE PET DAY AT THE MARKET. SO, WE ARE PARTNERING WITH THE SACHSE ANIMAL SERVICES TO DO A BIT OF A POP-UP EVENT WITH THEM AT THE MARKET. WE'RE REACHING OUT TO DIFFERENT VENDORS THAT FEATURE PET-RELATED ITEMS AS WELL, SO THAT SHOULD BE FUN. AND YOU CAN SEE OCTOBER 10TH, WE'VE, WE'VE SPOKEN WITH PUBLIC SAFETY DEPARTMENTS HERE AT THE CITY AS WELL AS CWD TO GET SOME COOL TRUCKS OUT FOR A TOUCH A TRUCK EVENT OCTOBER 10TH. SO, THOSE ARE SOME OF THE UPCOMING FARMERS MARKET DATES. JUST A BRIEF NOTE ON THE PARKSIDE VILLAGE GROUNDBREAKING, THAT WAS YESTERDAY, A PROJECT THAT YOU ALL ARE FAMILIAR WITH NEXT TO J.K. SACHSE PARK. WE WERE VERY, VERY HAPPY TO GO OUT THERE WITH THE, THE CONSTRUCTION COMPANY, THE, THE BROKER, COMMERCIAL BROKER, OWNERSHIP, COUNCIL, MAYOR, AND A COUPLE MEMBERS OF THE EDC BOARD AND SOME STAFF WERE THERE TO SORT OF OFFICIALLY WELCOME THIS, THIS PROJECT'S CONSTRUCTION. SO, VERY EXCITED ABOUT THAT. WE'LL KEEP YOU IN THE LOOP ON HOW THINGS ARE GOING THERE, BUT AGAIN, IT'S GREAT TO GET THAT NEIGHBORHOOD RETAIL PROJECT SO CLOSE TO THE PARK, AND WE THINK IT'LL BE A NICE COMPATIBLE RETAIL ELEMENT RIGHT THERE. SO, THAT'S ALL I HAVE. I'M SO SORRY, WE HAVEN'T MET SINCE. WE, WE HAVE A NEW STAFF MEMBER. HER NAME IS SHELBY CURTIS, AND I WILL LET HER A BRIEF INTRODUCTION TO HERSELF. HELLO EVERYONE, MY NAME IS SHELBY CURTIS. I GRADUATED FROM SFA, DID SOME MAIN STREET STUFF BEFORE THIS WORKING FOR A SMALL CITY IN EAST TEXAS, AND NOW I'M BACK UP HERE DOING ECONOMIC DEVELOPMENT. JARED'S BEEN GREAT, IT'S BEEN A GREAT START. WE'VE BEEN HITTING THE GROUND RUNNING, BUT I'M HAPPY TO BE HERE. GLAD TO MEET EVERYONE. GLAD TO HAVE YOU. THANK YOU SO MUCH. [2. Receive a briefing on the 5th Street District Activation and Action Plan.] WE'LL NOW MOVE ON TO ITEM 2 RECEIVE A BRIEFING ON THE 5TH STREET DISTRICT ACTIVATION AND ACTION PLAN. THIS IS MR. BRADLEY FORD. WE'LL WELCOME YOU UP TO. THANKS FOR HAVING ME BACK. ALL RIGHT. THERE WE GO. BOARD, BRADLEY FORD, FORD INSIGHT. I'M PART OF THE FIRM THAT YOU'VE SELECTED TO HELP ADVANCE THE 5TH STREET PROJECT. I WAS WITH YOU A COUPLE MONTHS AGO AND OUTLINED THE SCOPE OF WORK THAT WE'RE WORKING UNDER, AND TONIGHT I'M GIVING AN INTERIM UPDATE, LET YOU KNOW WHAT WE'VE BEEN UP TO AND WHAT OUR NEXT STEPS ARE, AND HOPEFULLY GATHER SOME, SOME QUESTIONS AND FEEDBACK [00:10:01] FROM YOU. AM I DOING THIS WRONG? THE BOX, THIS ONE? OH, OKAY, MAYBE THAT'S NEW TO ME. TELL ME WHAT TO DO AND I'LL DO IT. AWESOME. NOW IT'S NOT WORKING AT ALL. I CAN CLAP. I CAN, THERE YOU GO. WHAT'D YOU DO? ALL RIGHT, PERFECT. THANK YOU. AGAIN, WE'LL BE WORKING THROUGH THE ENGAGEMENT STATUS. I'M GOING TO WALK THROUGH EACH OF THE DELIVERABLES THAT ARE IN OUR SCOPE OF WORK, KIND OF GIVE YOU AN UPDATE ON EACH, WHERE EACH ONE IS. WE'LL SPEND SOME TIME, SIGNIFICANT TIME, LOOKING AT THE MULTIFAMILY MARKET UPDATE, PROVIDE SOME STATISTICS OF, OF WHERE THAT MARKET IS, AND ALSO SOME, SOME RECOMMENDATIONS ON PRODUCT SELECTION FOR ANY MULTIFAMILY THAT MIGHT HAPPEN IN THE FIFTH STREET DISTRICT, AS WELL AS GIVE YOU AN UPDATE ON THE REQUEST FOR QUALIFICATION SCHEDULE. I HAVE A RECOMMENDATION TO MOVE THAT UP AHEAD OF TIME THAT WE HAD ORIGINALLY PROPOSED. SO, MOVE IT UP IN THE YEAR AND ALSO DOCUMENT WHAT WE'RE GOING TO BE DOING OVER THE NEXT MONTH AND A HALF OR SO, SO YOU'RE AWARE AND THE PUBLIC'S AWARE OF ACTIVITIES WE'RE DOING UNDER THIS CONTRACT. ON THIS SLIDE, THIS IS OUR KIND OF OUR 9 ITEMS THAT WE'RE WORKING FROM IN THE SCOPE OF WORK, AND THEY'RE BUCKETED BY THE STATUS. SO, ON THE LEFT-HAND SIDE, YOU'RE SEEING THE ITEMS THAT ARE NEAR FINAL DELIVERY, DELIVERY TO STAFF. THAT INCLUDES THE MULTIFAMILY MARKET ASSESSMENT THAT I'LL GO OVER TONIGHT, AS WELL AS TARGETED WORK WITH DEVELOPERS. I HAVE AN UPDATE ON THAT TONIGHT AS WELL. AND ALSO, NEAR-FINAL DELIVERY ON 3 DEVELOPMENT SCENARIOS AND PRO FORMAS. AND THOSE ARE THE DOCUMENTATION OF IF WE DEVELOP THE PROPERTY IN A CERTAIN MANNER, HOW MUCH REVENUE WOULD IT GENERATE IN SALES TAX AND PROPERTY TAX. AND SO ALL 3 OF THOSE ARE NEAR-FINAL DELIVERY. IN-PROGRESS ITEMS IN THE MIDDLE. YOU MIGHT RECALL THAT WE'RE DOING WORK TO BENCHMARK OTHER MIXED-USE DEVELOPMENTS IN TEXAS AND, AND WHAT INCENTIVES THOSE PROJECTS CITIES APPROVED IN THOSE PROJECTS, SO THAT WHEN WE DO GO OUT AND RECRUIT A DEVELOPER, THE TEAM HERE AT, AT THE BOARD AND COUNCIL AND STAFF WILL ALL HAVE PERSPECTIVE ON WHAT INCENTIVE PACKAGES HAVE LOOKED LIKE IN SIMILAR DEVELOPMENTS ACROSS THE STATE. SO, THAT WORK IS IN PROGRESS. ADDITIONALLY, WE'RE ALSO LOOKING AT PROPERTIES AROUND THE SITE AND LOOKING AT WHICH ONES MIGHT BE PRIORITIES FOR EITHER PUBLIC OR PRIVATE ACQUISITION STRATEGIES. WORK THAT WE HAVEN'T NECESSARILY STARTED YET, THAT'S UPCOMING, IS IN THAT FAR RIGHT BUCKET. THAT INCLUDES, WE INTEND TO GO OUT TO A FEW MIXED-USE DEVELOPMENTS AND DO MARKET TOURS AND SIT DOWN WITH DEVELOPERS THAT SUCCESSFULLY NAVIGATED THOSE PROJECTS AS WELL AS WORK WITH CITY STAFF IN THOSE COMMUNITIES SO WE CAN GAIN ADDITIONAL KNOWLEDGE. AND SO THOSE ARE CALLED MARKET TOURS. ADDITIONALLY, WE'RE DOING WORK IN THE UPCOMING FUTURE WITH, ON THE CIP TO LOOK AT PRIORITY CIP INVESTMENTS. YOU'VE ALREADY MADE SIGNIFICANT INVESTMENTS IN THE PROPERTIES, AND THERE'S OBVIOUSLY SOME ADDITIONAL INFRASTRUCTURE THAT'S GOING TO BE NEEDED DOWN THE ROAD. AND SO, THE STAFF'S ASKED US TO EVALUATE THAT AND ASSESS THAT. AND I REMEMBER FROM OUR PRIOR MEETING A LOT OF INTEREST IN THE REMOTE WORK ASSESSMENT. WE'VE NOT YET STARTED THAT, BUT WE'LL BE DOING THAT IN THE UPCOMING 45 TO 60 DAYS. AND THEN THE FINAL ITEM THAT'S KIND OF TOP OF MIND TONIGHT, AND I'LL TALK ABOUT AT THE END OF THE PRESENTATION, IS PRODUCING A REQUEST FOR QUALIFICATIONS. THAT'S THE INSTRUMENT THAT WILL GO OUT TO MARKET AND RECRUIT DEVELOPERS WITH. SO, THAT'S UPCOMING AS WELL. SO, LET'S TALK ABOUT MULTIFAMILY MARKET. A LITTLE BIT. I'M GOING TO START WITH KIND OF THE METHODOLOGY THAT WE USED, AND THEN WE'LL GET INTO THE NUMBERS. ESSENTIALLY WHAT WE'VE DONE IS ANALYZED EVERYTHING WITHIN THE RED BOX THERE, MULTIFAMILY MARKET WITHIN THE RED BOX. AND SACHSE, OF COURSE, IS IN THE MIDDLE OF THAT, BUT INCLUDES OTHER COMMUNITIES AS WELL. IT'S ABOUT A 100-SQUARE-MILE AREA, SO IT'S GOT WYLIE AND PARTS OF GARLAND AND ROWLETT. AND WE REVIEWED EVERY APARTMENT AND MULTIFAMILY PRODUCT IN THAT 100 SQUARE MILES AS LONG AS IT HAD MORE THAN 12 UNITS. SO, THIS, THE NUMBERS YOU'RE GOING TO SEE IS NOT LIKE A DUPLEX PROPERTY OR A SINGLE-FAMILY RENTAL. THIS IS TRADITIONAL MULTIFAMILY PROPERTIES WITHIN THAT AREA. AND WE LOOKED AT 5 YEARS BACK OF RENTAL HISTORY, VACANCY, RENT RATES, ABSORPTION, AS WELL AS LOOKED INTO THE FUTURE OF DEVELOPMENT PIPELINE. SO, YOU'LL GET A GOOD SENSE OF WHAT'S HAPPENED OVER THE LAST FEW YEARS IN THIS AREA AS WELL AS WHAT'S TO COME. IN THE SUMMARY, YOU MIGHT KNOW THIS JUST FROM DRIVING AROUND, THERE'S BEEN A LOT OF MULTIFAMILY GROWTH IN YOUR AREA, NOT JUST SACHSE BUT IN THE 100 SQUARE MILES SURROUNDING. IF YOU GO BACK TO 2020, THERE'S ABOUT 32,000 MULTIFAMILY UNITS, AND AS OF TODAY WE'RE SITTING AT 42,000 PLUS OR MINUS. SO, ABOUT 32% GROWTH [00:15:02] IN THAT 7-YEAR WINDOW. ONE OF THE MOST ACTIVE MULTIFAMILY MARKETS, FRANKLY, IN THE STATE OF TEXAS. AND THAT'S BECAUSE YOU'VE HAD SO MUCH EMPLOYMENT ACTIVITY AROUND YOU AND YOU'RE SO CLOSE TO EMPLOYMENT CENTERS AS WELL AS EDUCATION CENTERS. YOU LOOK BY THE YEAR, YOU'VE SEEN, YOU KIND OF HAVE SOME VARIATION BY THE YEAR OF HOW MANY UNITS GET ADDED, BUT IT CAN RANGE FROM 1,000 UNITS IN A YEAR TO 2024, THERE WAS 2,400 NEW MULTIFAMILY UNITS ADDED. THE AVERAGE IS ABOUT 01,500. IN THE PIPELINE, SO BETWEEN NOW AND 2030, THERE'S ABOUT 6,000 UNITS THAT ARE EITHER IN PERMITTING OR HAVE BEEN FINANCED OR UNDER CONSTRUCTION. SO, YOU'VE STILL GOT A GOOD AMOUNT OF GROWTH STILL YET TO COME. SO, IT'S BEEN A VERY BUSY SECTOR, AND THAT I THINK INFORMS SOME OF THE NEXT COUPLE OF SLIDES. WE'RE GOING TO TALK ABOUT WHAT DOES THAT MEAN FOR FIFTH STREET IN PARTICULAR. BUT FIRST, I WANT TO SHOW YOU THE VACANCY AND RENTAL RATES. SO, VACANCY, YOU STARTED IN 2020, REALLY STRONG, 93%. IT'S ONE OF THE REASONS THAT DEVELOPERS HAVE FLOCKED TO THE PRODUCT. AND NATURALLY, WHEN YOU HAVE THAT MANY UNITS ADDED, YOU'RE GOING TO SEE A COUPLE THINGS HAPPEN. LOGICALLY, YOU'RE GOING TO HAVE VACANCY GOES DOWN, RIGHT, WHEN YOU HAVE THAT MANY UNITS ADDED. AND RENTAL RATES ALSO HAVE GONE DOWN, AND THE GAP BETWEEN POSTED RENTAL RATES AND THE ACTUAL RATE THAT'S RECEIVED HAS WIDENED. SO, THE, THE RENT CONCESSIONS NEEDED TO RENT THOSE UNITS HAS WIDENED, AND THAT'S JUST A FUNCTION OF ADDING SO MANY UNITS TO A MARKETPLACE. SO, WHAT DOES THAT MEAN FOR KIND OF OUR APPROACH HERE AT FIFTH STREET IN PARTICULAR? WE, WE THINK IT'S BEST TO LOOK AT THAT DATA AS WELL AS YOUR APPROVED ECONOMIC DEVELOPMENT STRATEGIC PLAN AND PLANNING DOCUMENTS AND REALLY COMMUNICATE TO THE MARKETPLACE THAT WE WANT TO START WITH MISSING MIDDLE HOUSING AND NOT TRADITIONAL MULTIFAMILY. THAT ALIGNS BETTER TO THE MARKETPLACE IN THAT WE DON'T WANT TO COMPETE WITH 42,000 UNITS AROUND US. WE'D RATHER HAVE A PRODUCT THAT IS MORE RESPONSIVE TO THE POTENTIAL MARKET, A LITTLE MORE UNIQUE, SMALLER, MORE FLEXIBLE, AND ALSO ALIGNS, WE THINK, BETTER WITH THE NEIGHBORHOOD CHARACTER. SO, I'VE PUT A FEW TYPOLOGIES ON THE SCREEN. I THINK THE BOTTOM LEFT ONE'S FROM STATIONS AND THE OTHERS ARE FROM OTHER COMMUNITIES AROUND THE COUNTRY. BUT YOU GET A SENSE OF WHAT WE'RE TALKING ABOUT WHEN WE SAY MISSING MIDDLE, AND AS WELL AS THE DWELLING UNITS PER ACRE DOCUMENTED KIND OF ON THE BOTTOM THERE. SO, WORKING AT A SCALE OF 10 UNITS TO 25 UNITS AN ACRE VERSUS, SAY, A TRADITIONAL MULTIFAMILY, WHICH COULD RANGE IN THE 30-PLUS TO 50 DWELLING UNITS AN ACRE, IF IT HAS A GARAGE, EVEN HIGHER THAN THAT. WE THINK THAT BETTER ALIGNS WITH, WITH THE BOARD AND COUNCIL'S APPROVED DOCUMENTS, BUT ALSO THE REALITY OF THE MARKETPLACE. WHEN YOU ADD THAT MANY UNITS IN A 100-SQUARE-MILE AREA ON APARTMENTS WE THINK, WE THINK IT JUST MAKES SENSE TO FOCUS ESPECIALLY EARLY ON THE MISSING MIDDLE. OKAY, GO BACK FOR JUST A MINUTE. GO BACK 2 SLIDES. GO BACK ONE MORE. SO. THAT ONE, OR? THAT'S WHY YOU CAN START HERE TOO. WHEN WE SAY NORTHEAST DALLAS, AGAIN, THAT'S JUST THIS 100-SQUARE-MILE RADIUS. THAT'S WHAT WE'RE CALLING THAT NORTHEAST DALLAS SUBMARKET, CORRECT? AND SO, WE'RE SEEING THE NUMBER OF UNITS OVER THE NEXT, AT LEAST THROUGH '26, NEW UNITS ADDED, THAT IS FALLING, THAT IS COMING DOWN. IS THAT THE EXPECTATION THAT CONTINUES TO COME DOWN OVER THE NEXT 3, 4 YEARS? I BELIEVE IT WILL BE, GIVEN UNTIL YOU SEE THE RENT RATE COME BACK UP AND THE VACANCY RATE CONTINUED TO IMPROVE, YOU'RE GOING TO SEE YOUR NEW UNITS ADDED PER YEAR, IT WILL NOT BE THOSE, THAT BANNER YEAR OF LIKE '23 AND '24 WOULDN'T, WOULD NOT HAPPEN. OKAY. WHEN YOU GO NEXT, THESE, THESE TYPES, AND THIS MAY BE SOMETHING WE TALK ABOUT A LITTLE BIT FURTHER, GOING TO THE NEXT SLIDE, WE SEE THE DIFFERENT, YOU KNOW, TOWNHOMES, FOURPLEXES, COTTAGE COURTS, AND SO FORTH. HOW DOES BUILDING SOMETHING LIKE THIS COMPARE TO THE LARGER, MORE DENSE UNITS? HOW DOES THAT CHANGE WHAT A DEVELOPER REQUESTS OF A CITY? BECAUSE, YOU KNOW, OBVIOUSLY THEY'RE, THEY'RE GOING TO COME IN AND SAY, YEAH, WE'LL DO THIS, BUT WE WANT A LOT OF MONEY TO DO THIS. DOES THIS CHANGE WHAT THOSE REQUESTS BECOME, OR DOES THAT MAKE IT EASIER, MORE PALATABLE, OR DOES THAT MAKE IT EVEN MORE DIFFICULT TO DO? WELL, I THINK THAT THE, IF WE WENT TO A REALLY DENSE PRODUCT, MOST DEVELOPERS ARE GOING TO ASK YOU TO CONTRIBUTE TO A PARKING GARAGE, WHICH WOULD DRIVE THE REQUEST UP FOR SURE. THESE PRODUCTS, IN, IN MY, AS YOU GET MY PRO FORMA DOCUMENT AND THAT KIND OF SHOWS THE LAYOUT, I EXPECT THESE PRODUCTS TO BE KIND OF ON THE EDGES OF THE 5TH STREET DISTRICT. OKAY. AND THERE'LL STILL BE [00:20:01] INFRASTRUCTURE REQUIREMENTS, PARTICULARLY ON ONE SIDE. YOU GOT DRAINAGE ISSUES ON AT LEAST ONE TRACK THAT WE NEED TO ADDRESS. BUT CERTAINLY, IF WE WENT DENSE, YOUR NUMBER, THE REQUEST IS GOING TO GO HIGHER BECAUSE THERE'S GOING TO BE A PARKING ELEMENT THAT WOULD BE ASKED FOR RIGHT AWAY FOR, FOR THE GARAGE. AND JUST FOR CONTEXT, THAT DEPENDS ON HOW NICE YOU WANT A GARAGE TO BE. CAN BE $35,000 A SPOT TO $50,000. SO, THAT CAN GET REALLY OUT OF SCALE REALLY QUICKLY. OKAY. HOPEFULLY THAT ANSWERS YOUR QUESTION. AND THEN WHEN YOU THINK OF, AND YOU MAY HAVE THIS AGAIN WITH PRO FORMAS, TO SAY HERE, BECAUSE I'M GOING TO GUESS IN MY SIMPLE MIND, THE DENSER THE, THE, THE, THE SPACE WHERE YOU GOT MORE AND MORE, THERE IS A HIGHER CHANCE OR A HIGHER CEILING FOR REVENUE TO THE CITY THAN IT IS HERE. BUT THERE'S A, BUT THAT IS A TRADE-OFF OF WHAT YOU HAVE TO PUT INTO IT. IS THAT, WILL THE PRO FORMAS SHOW US THAT TO SEE? BECAUSE YOU'RE, YOU'RE TRYING TO DECIDE, WHAT AM I, I'M WILLING TO TRADE OFF A LITTLE MORE OF A CEILING SO THAT I DON'T HAVE AS MUCH THAT HAS TO GO INTO IT INITIALLY. IS THAT RIGHT? WELL SAID. AND I'LL, I'LL ADD ON A LAYER TO IT THAT'S HOPEFULLY HELPFUL CONTEXT. YOU SEE THE ALL UNITS THE BAR CHART ON THE BOTTOM LEFT, IT SHOWS ALL UNITS AND SHOWS THE RENTAL RATE, THE POSTED RATE IS $1.66 A SQUARE FOOT. TO JUSTIFY STRUCTURED PARKING, DENSE PRODUCT, YOU NEED TO BE $2.50, RIGHT? ANYTHING BELOW A $2.50 MARK, YOU'RE GOING TO HAVE TO SUBSIDIZE THROUGH INCENTIVES. AND SO, OKAY, WHAT IS PART OF THIS KIND OF THIS DISCUSSION IS RENTS HAVE GOT TO MATURE AND GET BETTER, OR YOU HAVE TO INCENTIVIZE TO GET REALLY DENSE PRODUCT. AND THAT DAY MAY COME, BUT IN MY MIND, LET'S LET ALL THIS NEW SUPPLY COME THROUGH THE MARKET. LET'S DO SOME RESIDENTIAL THAT'S BETTER SCALED AND THEN ALLOW FOR US TO ESTABLISH A REALLY GOOD IDENTITY IN THE FIFTH STREET DISTRICT. BECAUSE IF YOU START WITH A REALLY DENSE, THAT'S JUST WHAT THE IDENTITY IS GOING TO BE. BUT IF WE START WITH A REDUCED DENSITY ON MULTIFAMILY AND THEN A HEAVY COMPONENT OF THE FOOD AND BEVERAGE, THE IDENTITY WILL BE MORE OF A COMMUNITY SPACE. IT WILL BE MORE HUMAN-SCALED. AND YOU CAN SEE THIS IN OTHER DISTRICTS THAT HAVE POPPED UP. A LOT OF CITIES WILL GO AND THEY'LL PRIORITIZE THE REALLY DENSE BECAUSE, YEAH, THE DOLLARS ARE, YOU KNOW, ONE MULTIFAMILY COMPLEX CAN BE $60 OR $70 MILLION INVESTMENT IF IT'S REAL DENSE. BUT THAT BECOMES THE IDENTITY OF THE DISTRICT. AND A LOT OF TIMES IN THESE PUBLIC-PRIVATE PARTNERSHIPS, THE RETAIL AND RESTAURANT COMPONENTS DON'T FOLLOW AS QUICKLY AS YOU WOULD LIKE. AND SO, WE'RE KIND OF TAKING AN INVERSE APPROACH IS WHAT I'M SUGGESTING. AND I THINK IT ALIGNS REALLY WELL WITH YOUR ESTABLISHED COMPREHENSIVE PLAN, ED PLAN, AND THE COUNCIL'S DIRECTION OF KIND OF WHERE IT FEELS LIKE THEY WANT TO BE. IT ALSO ALIGNS REALLY WELL WITH THE MARKET DATA THAT WE'RE SEEING. SO, FOR THIS MULTIFAMILY OR DENSE DEVELOPMENT, WHERE ARE YOU ACTUALLY SUGGESTING THAT IT GO? BECAUSE I THINK THE LAST TIME YOU WERE HERE, AND I, WELL, I'LL SPEAK FOR MYSELF. I MADE IT KNOWN THAT THE 5TH STREET DISTRICT, THE SPACE THAT WE HAVE, WE WANTED IT TO BE MORE COMMERCIAL THAN RESIDENTIAL. AND SO I WAS, THIS IS KIND OF THROWING ME OFF A LITTLE BIT. YEAH, I'M TRYING TO FIGURE OUT WHERE YOU'RE, YEAH, EXACTLY WHERE. I WOULD LOVE TO COME BACK AT YOUR SEPTEMBER MEETING AND SHOW YOU KIND OF THE, WITH THE PRO FORMA, BOTH THE DEVELOPMENT STRATEGY AND THE PRO FORMA TOGETHER. AND THAT WAY WE CAN PUT IT ON THE MAP AND ALSO SHOW THE MATH OF THE TAX REVENUE GENERATION TOGETHER. THEN PUT THAT ON YOUR CALENDAR. IS THAT, IS THAT, ARE YOU COMFORTABLE WITH THAT? I MEAN, YES. YES, I'LL KEEP GOING. OKAY, I'LL HOLD OFF FOR A LITTLE BIT. FAIR. I GOT A QUESTION REAL QUICK. OH YES, SIR. CAN YOU GO TO THE NEXT SLIDE? WHY MISSING MIDDLE? SO SMALLER, MORE FLEXIBLE SCALE, AND FASTER ABSORPTION. SO, YOU'RE SAYING AS FAR AS BUILDING SOMETHING LIKE THIS, FASTER ABSORPTION, AS IN HOW? LIKE, ARE YOU SAYING LITERALLY? BECAUSE WE HAVE ANOTHER SET OF TOWNHOMES THAT CAME UP. YEAH, ACROSS, ACROSS 78. AND THOSE HAVE BEEN, I DON'T KNOW, IT'S BEEN THERE MAYBE ALMOST A YEAR. FOR SALE? MORE THAN A YEAR, RIGHT? HALF OF IT'S EMPTY. FOR SALE UNITS? YEAH, YEAH, YEAH, YEAH. AND IS THAT THE TYPE? BECAUSE IF I'M LOOKING AT TOWNHOMES, FOURPLEX, ARE THESE, ARE YOU LOOKING AT THESE BEING RENTAL PROPERTIES OR ACTUALLY TOWNHOMES PEOPLE BUY? I MEAN, WE'RE GOING TO HEAR FROM THE MARKETPLACE. MOST OF THESE, YOU KNOW, CAN BE A MIX OF RENTAL AND OWNED UNITS FOR SURE. THERE'LL BE SOME RENTAL COMPONENT HERE FOR SURE. OKAY. YEAH, [00:25:02] DEVELOPERS ARE GOING TO THEY WILL NOT BE 100% OWNED UNITS. WHEN WE GO TO MARKET AND SAY WE WANT MISSING MIDDLE, IT WILL BE A MIX. THOSE THAT, THE PROPOSALS THAT COME IN WILL BE A MIX. AND DOES THE PRO FORMA SHOW THE KIND OF TIMELINE AS FAR AS, OKAY, YOU NEED TO HAVE THIS MANY UNITS FILLED BY THIS TIME TO GET THIS RETURN? SURE, THEY WILL ABSOLUTELY SHOW IT. AND THEN WHEN WE ENGAGE WITH DEVELOPERS, THEY WILL NEED TO ALIGN THAT PRO FORMA WITH THEIR EXPECTATIONS TOO, BECAUSE THEY'LL HAVE THEIR OWN UNIT COUNT THAT THEY'LL PROPOSE DELIVERING BY YEAR. AND SO, THE PRO FORMAS, I'M GOING TO SHOW YOU ARE PRE- HEARING FROM THE MARKET. SO, I JUST WANT TO MAKE SURE, LIKE, WHEN WE SHOW THAT, WE'RE GOING TO BE BEFORE WE GO TO MARKET. WE GO TO MARKET, WE'RE GOING TO SEE WHAT THEY SAY ON THEIR TIMELINE, THEN WE'LL BE ABLE TO ADJUST AND SHOW YOU THE PRO FORMA AS IT RELATES TO THEIR SCHEDULE AS WELL. BUT SIMPLY, TO ANSWER YOUR QUESTION SIMPLY, YES, THE PRO FORMA WILL BE BY YEAR AND BY UNIT COUNT, AND YOU'LL BE ABLE TO TELL HOW WE'RE GETTING TO THE NUMBERS EACH YEAR. GOT YOU. I'M JUST KIND OF LOOKING AT, AGAIN, SOMETHING VERY CLOSE TO IT AND HOW LONG THOSE HAVE STAYED EMPTY. SO, YEAH, THAT'S KIND OF WHAT I'M ENVISIONING. OWNED TOWNHOMES CAN BE, CAN HAVE A LONG RUN, RIGHT? RIGHT. ESPECIALLY IN THE PRICE POINT. I MEAN, IN THE PRICE POINT AT THAT LOCATION IN PARTICULAR. YEAH, DEFINITELY. SO, I'M LOOKING AT TOWNHOMES, AND THEY'RE USUALLY ALL AROUND THAT SAME PRICE AROUND HERE. YEAH. THE OWNED TOWNHOMES ARE, IN MANY WAYS, COMPETITIVE WITH SINGLE-FAMILY PRICING. OKAY, SO THESE ARE GOING TO BE A MIX OF POSSIBLY THAT AND RENTAL? OKAY. SO, KIND OF A SUMMARY OF DIRECTION, YOU KNOW, WANT TO START IN A SMALLER DIRECTION. IT DOESN'T MEAN THAT LATER IN 2030S WE MIGHT NOT SEE FOLKS AROUND THE DISTRICT ACQUIRE PRIVATE SITES AND BUILD VERTICAL MULTIFAMILY. I MEAN, ZONING IS GOING TO ALLOW FOR SOME OF THAT BUT RELATIVE TO THE 5TH STREET OWNED AREAS BY THE EDC AND CITY, YOU KNOW, IN OUR MINDS, WE'RE, WE'RE NOT LEADING OUT WITH THAT. IT CAN BE RECONSIDERED DOWN THE ROAD, 2030 AND BEYOND, ONCE ALL THIS NEW SUPPLY HAS BEEN ABSORBED AND RATES COME UP AND VACANCIES GET BETTER. AND PROBABLY MOST IMPORTANTLY, THE DISTRICT HAS ESTABLISHED AN IDENTITY AND MOMENTUM. LET'S TALK ABOUT DEVELOPER OUTREACH A LITTLE BIT. I WOULD JUST SAY THE FEEDBACK HAS BEEN REALLY GOOD. THE STAFF GOT STARTED ON CONVERSATIONS WITH DEVELOPER, DEVELOPERS EVEN PRIOR TO MY ENGAGEMENT. SO, THEY HAD A HOST OF DEVELOPERS THEY WERE ALREADY ENGAGED WITH, AND WE'VE BROUGHT ADDITIONAL ONES INTO CONVERSATIONS. THE INTEREST HAS BEEN STRONG THUS FAR. WE'VE TALKED TO ABOUT 20 DEVELOPERS THUS FAR. I'M GOING TO TALK ABOUT THE FUNNEL, KIND OF ON THE RIGHT SIDE OF THE GRAPHIC. WHAT WE WANT TO DO IS FILL THE FUNNEL WITH REALLY QUALIFIED DEVELOPERS THAT HAVE DONE SIMILAR PROJECTS, MIXED-USE, SUBURBAN MARKETS, AIMED AT FOOD AND BEV AND HIGH QUALITY. SO, WE'VE HAD 20 CONVERSATIONS, AND THE IDEA IS AS WE HAVE THOSE CONVERSATIONS, WE'RE LOOKING FOR FIT AND ALIGNMENT IN PARTICULAR, AND TIME ALIGNMENT, BECAUSE MANY OF THESE DEVELOPERS DON'T DO 100 PROJECTS A YEAR. THEY DO 1 OR 2 A YEAR BECAUSE THEY TEND TO BE SMALLER SCALE, BECAUSE THEY DO SMALLER SCALE PROJECTS. AND SO, IN THAT PROCESS, WE'RE LOOKING TO FILL THE BUCKET AND THEN FIND BY THE END, AS IT FILTERS THROUGH, REALLY WELL-ALIGNED POTENTIAL RFQ RESPONDENTS. AND THAT TENDS TO BE AN APPROACH THAT I FIND WORKS REALLY WELL. WE'RE NOT GOING TO GET TO THE END OF THAT PROCESS AND HAVE 20 DEVELOPERS PROPOSE, RIGHT? WE'RE LOOKING TO GET 5 OR 7 REALLY WELL-FITTING DEVELOPERS THAT HAVE TIME AND CAPITAL DO A PROJECT. SO, WE WANT TO MAKE SURE WE'RE COMMUNICATING THAT REALLY WELL. AND BUT THOSE CONVERSATIONS HAVE BEEN VERY FRUITFUL. I WILL SAY THAT SACHSE IS STILL NOT ON EVERYONE'S RADAR, BUT, BUT GETTING THERE. I THINK THE, THE BRAND WORK AND THE WORK YOU ALL ARE DOING IS, IS HELPING RAISE THE PROFILE. SO, LIKE YOUR DFW DEVELOPERS ARE A LITTLE MORE AWARE. IF WE GET OUT OF MARKET, IT AWARENESS TENDS TO TREND DOWN. AND SO THOSE CONVERSATIONS ARE A LITTLE LONGER, MAY TAKE MORE THAN ONE OR TWO TO GET SOMEBODY TO MAKE A SITE VISIT TO SACHSE AND START LEARNING MORE. BUT I DO FEEL VERY ENCOURAGED THAT WE WILL HAVE RESPONDENTS, WE WILL HAVE PEOPLE INTERESTED [00:30:01] IN THE SITE. WITH THAT IN MIND, I WOULD LIKE TO RECOMMEND ACCELERATING THE RFQ DELIVERY BY A FEW WEEKS. THERE'S 2 THINGS GOING ON THERE. SO, THE TIMELINE WOULD BE RELEASED RIGHT AFTER YOUR NEXT BOARD MEETING, ABOUT A WEEK AFTER THE SEPTEMBER 17TH BOARD MEETING, HAVE IT OPEN FOR ABOUT 4 AND A HALF WEEKS, AND HAVE SUBMITTALS DUE AT THE END OF OCTOBER. ONE REASON FOR THAT IS THE INTEREST HAS BEEN REALLY STRONG. AND WANT TO GET TO MARKET WHILE THE INTEREST IS STRONG. THE SECOND REASON IS, AS YOU DELAY FURTHER INTO THE CALENDAR, YOU GET CLOSER TO HOLIDAYS, AND FOLKS DO TEND TO LOSE INTEREST AROUND THE HOLIDAY SEASON. AS WE GET CLOSER TO THANKSGIVING, WE WILL LOSE FOLKS THAT HEAD OFF TO OTHER LOCATIONS. SO, WE WOULD LOVE TO ADVANCE WITH THIS SCHEDULE GIVEN THE INTEREST AND, AND THAT REALITY. SO, WHAT WE'RE GOING TO BE DOING THE NEXT MONTH AND A HALF OR SO IS GETTING THAT RFQ DOCUMENT READY. IT WILL SEEK TO COMMUNICATE THE DATA WE'RE GATHERING AS WELL AS THE DIRECTION, OUR PREFERENCES OF DEVELOPMENT. SO, I WOULD LIKE TO BE BACK WITH Y'ALL ON THE 17TH OF SEPTEMBER TO ANSWER SOME OF THE OUTSTANDING QUESTIONS SO THAT IF THERE ARE FOUNDATIONAL CHANGES WE NEED TO MAKE TO THAT RFQ DOCUMENT, YOU HAVE A CHANCE TO SEE PRIOR. ADDITIONALLY, WE'LL BE WORKING ON FINALIZING THOSE NEAR-TERM DELIVERABLES THAT I MENTIONED, THE DEVELOPMENT SCENARIOS, THE MARKET ASSESSMENT, AS WELL AS THE INCENTIVE BENCHMARKING, BECAUSE THOSE ARE PRETTY PIVOTAL TO HAVE IN OUR HANDS BEFORE WE START RECEIVING PROPOSALS. AND LASTLY, WE'LL BEGIN THE ADDITIONAL WORK STREAMS ON REMOTE WORK AND THOSE MARKET TOURS. AND WITH THAT, I WILL TAKE ANY QUESTIONS Y'ALL HAVE OF ME. I WOULDN'T REALLY APPRECIATE AN RFQ THAT FOCUSES ON MULTIFAMILY FOR FIFTH STREET DISTRICT BECAUSE THAT'S NOT REALLY WHAT WE HAD INTENDED FOR THAT SPACE WHEN THE LAND WAS PURCHASED. THAT'S MY COMMENT, SO. IS IT POSSIBLE TO GET SOME OF THE NUMBERS, SOME OF THE NUMBERS AHEAD OF TIME SO WE CAN LOOK AT IT? THAT WOULD HELP US SO AT THAT SEPTEMBER MEETING I'M NOT SEEING IT FOR THE FIRST TIME. YEAH, IT'S PRO FORMA. IT'S JUST LIKE KIND OF GET A LITTLE BIT, I KNOW I WON'T UNDERSTAND ALL OF IT. BUT THAT WAY, AT LEAST IF WE CAN HAVE A LITTLE BIT OF THOSE NUMBERS, A LITTLE, EVEN IF IT'S JUST A FEW DAYS AHEAD OF TIME, JUST SO WE CAN SEE THAT, THAT WOULD HELP, I THINK, FOR THE SEPTEMBER MEETING TO BE BETTER VERSED AND READY TO ASK OTHER QUESTIONS THAT WE DON'T UNDERSTAND. SURE. THAT'D HELP. YEAH, I THINK WITH THE STAFF, WE'RE ABOUT 10 DAYS OUT ON DELIVERY. AND I IMAGINE THEY'LL HAVE SOME FEEDBACK FOR ME AND SIMILAR QUESTIONS. FROM STAFF, AND SO THAT PUTS US ON A TIMETABLE THAT I THINK WORKS REALLY WELL TO DELIVER TO THE BOARD AHEAD OF TIME AS WELL AND GIVE YOU A WEEK OR HOWEVER LONG YOU WANT WITH IT. WHATEVER WE CAN GET IS FINE. YES, WE HAVE A CHANCE TO LOOK AT IT BECAUSE IT HELPS ME TO SEE THE NUMBERS AHEAD OF TIME VERSUS TRYING TO DIGEST AT THE SAME TIME YOU'RE EXPLAINING IT. THAT, THAT HELPS A LOT FOR ME. YEAH, YOU MAY HAVE MENTIONED THIS ALSO, VISUALS THOUGH. LIKE, YEAH, VISUALS. YEAH, I'M INTERESTED TO SEE HOW IT WOULD DEFINITELY FIT IN THAT SPACE. YEAH, BECAUSE IT'S ABOUT WHERE IT IS, IS IMPORTANT AS WHAT IT IS, RIGHT? I THINK THAT'S THE ONLY WAY TO RESPOND TO SOME OF THE FEEDBACK THAT'S BEEN GIVEN TONIGHT. YEP. AND POTENTIALLY, WHAT, LIKE, WHAT ELSE, ONCE YOU DO THAT, THEN THAT SOMEWHAT CHANGES HOW YOU'RE GOING TO PLAN THE REST OF IT OUT. THAT'S RIGHT. RIGHT. SO, KIND OF, YEAH, ABSOLUTELY. YEAH, YOU'RE ON THE RIGHT TRACK. IT ABSOLUTELY INFORMS THE WORDS THAT WE USE IN THAT DOCUMENT. YEAH. IS THERE ANY, WHEN YOU START TALKING ABOUT FOOD AND BEV AND ANY TYPE OF MULTIFAMILY, IS THERE ANY REASON WHY IT'S ONE SEQUENCING OF THEM? WHICH ONE COMES FIRST, YOU KNOW, KIND OF CHICKEN OR THE EGG? OR DOES THAT, HOW DOES THAT PLAY INTO AS WE MAKE DECISIONS ON, BECAUSE, YOU KNOW, THERE MAY BE OPTIONS WHERE PEOPLE WANT TO COME, THEY'RE ASKING FOR INCENTIVES. LIKE, ARE WE, SHOULD WE BE WAITING ON THAT FOR THIS, FOR SOMETHING ELSE FIRST? OR HOW DO WE FIGURE THAT SEQUENCING OUT? WELL, I THINK THE MARKET INTEREST AROUND FOOD AND BEVERAGE IS, IS, IS THERE. IT WOULD BE MY RECOMMENDATION THROUGH OTHER DISTRICTS I'VE BEEN INVOLVED WITH THAT FOOD AND BEV IS KIND OF THE LEAD. OKAY. IT GENERATES A WHOLE LOT MORE VISITS. TO A SITE THAN THE MISSING MIDDLE [00:35:02] HOUSING COMPONENT OR ANY MULTIFAMILY COMPONENT. AND AS YOU THINK ABOUT WHAT YOU'RE TRYING TO DO HERE IS KIND OF TRIPLE BOTTOM LINE ON DEVELOPMENT. YES, WE WANT IT TO MAKE MONEY AND STIMULATE COMMERCE. WE ALSO WANT IT TO BE A REALLY FABULOUS COMMUNITY VENUE. AND IF YOU HAVE A DEVELOPER LEAD WITH ONLY MULTIFAMILY OR MISSING MIDDLE EVEN, THAT'S GOING TO IMPACT 100 PEOPLE. BUT IF WE HAVE REALLY STRONG FOOD AND BEVERAGE OFFERING RIGHT AWAY, YOU'RE GOING TO IMPACT HUNDREDS OF THOUSANDS OF PEOPLE AND WAY MORE VISITS TO THE SITE, WHICH WILL GENERATE OBVIOUSLY DOLLARS AND COMMERCE, BUT ALSO GENERATE A PLACE THAT DEFINES SACHSE, WHICH I THINK IS PART OF WHAT OTHER COMMUNITIES HAVE DONE THIS REALLY WELL. IT BECOMES A LASTING IMAGE OF YOUR COMMUNITY. IS THERE ANY, IS THERE ANY SCENARIO WHERE DEVELOPMENT LIKE THIS CAN BE DONE WITHOUT ANY TYPE OF RESIDENTIAL? IT CAN. IT'S. IS THAT COMMON? I GUESS. NO, NO. I MEAN, MOST, MOST DEVELOPERS ARE GOING TO WANT TO LOAD UP YOUR MULTIFAMILY AS QUICKLY AS YOU'LL ALLOW. AND SO. BECAUSE THAT'S WHERE THE PROFIT IS FOR THEM? YEAH, YOU HAVE A LOT OF DOLLARS AND A LOT OF QUICK ACTIVITY THAT CAN HAPPEN. IF YOU'RE OPERATING IN AN ENVIRONMENT THAT HAS A LOT OF OFFICE, YOU CAN DO IT WITHOUT MULTIFAMILY EASIER. OKAY. WHICH, YOU KNOW, WE HAVE SOME OFFICE IN SACHSE. WE HAVE A LOT MORE ADJACENT. SO, IF YOU ASK LIKE WHAT'S THE LIKELIHOOD OF DOING IT WITHOUT MULTIFAMILY, IT'S GOING TO BE FOOD AND BEV IS PROBABLY THE LOWEST HANGING FRUIT TO DO IT WELL. AND SO THAT'S WHY IT'S REALLY IMPORTANT OUR FIRST FEW CONCEPTS ARE HOME RUNS. WE WANT ESTABLISHED, REALLY STRONG FOOD AND BEV OPTIONS. I'M NOT TALKING NATIONAL CHAINS. STILL TALKING LIKE THE LOCAL DRIVERS, BUT WE NEED REALLY GOOD BRANDS TO JOIN US AND DO REALLY WELL. BECAUSE WHAT TENDS TO HAPPEN WITH FOOD AND BEV IN PARTICULAR IS THEY LIKE TO FOLLOW EACH OTHER. SO, YOU GET 1 OR 2 AND THEY START TALKING TO THEIR FRIENDS, BUT THEY ALSO SEE THAT, OKAY, SACHSE'S A MARKET I WOULDN'T HAVE CONSIDERED, BUT IT'S WORKING FOR CONCEPT A. CONCEPT C, D, AND E START COMING ALONG. AND THAT'S THE STORY IN BURLESON, WHICH WAS WHEN I STARTED THERE 20 YEARS AGO. WE DIDN'T HAVE A SINGLE RESTAURANT IN OLD TOWN, AND WE WERE FORTUNATE ENOUGH TO LAND PROBABLY ONE OF THE BEST ONES RIGHT AWAY IN BABE'S CHICKEN. AND NOW THERE'S 22 FOOD AND BEVERAGE SPOTS ALL AROUND THE OLD TOWN DISTRICT. IT'S LIKE THEY, THEY ATTRACT EACH OTHER. YOU MIGHT THINK THAT THAT CREATES COMPETITION AND DRIVES EVERYBODY'S DOLLARS DOWN, THE REVENUES DOWN. IT'S ACTUALLY THE INVERSE. IT DRIVES SALES UP WHEN YOU HAVE THAT MUCH ACTIVITY AND THAT MANY OPPORTUNITIES. AND SO, IF YOU SAY, HEY, WE DON'T WANT TO DO MULTIFAMILY, IT'S GOING TO BE REALLY CRITICAL THAT WE DO THE FOOD AND BEV VERY WELL. BUT THAT'S AGAIN WHERE THE PRO FORMAS CAN HELP US WITH THAT. OKAY, DEFINITELY. BUT GOOD QUESTION. OTHER QUESTIONS? JUST TO, SORRY, JUST TO CLARIFY. NO, GO AHEAD. YEAH, SO IN THE DESIGN, IT'S NOT JUST GOING TO HAVE THE RESIDENTIAL, IT'S GOING TO HAVE POTENTIALLY WHAT ELSE YOU CAN PUT AROUND IT, LIKE EVERYTHING? OKAY, I'M JUST MAKING SURE. YES, SIR. OTHER QUESTIONS? ALL RIGHT. AND HE'S ON THE AGENDA FOR SEPTEMBER, RIGHT? WONDERFUL. LOOK FORWARD TO IT. THANK YOU SO MUCH. I APPRECIATE THAT. THAT HELPS. I KNOW WE GOT, STILL GOT SOME MORE TO GO, BUT THAT'S, THAT GETS, WE'RE, WE'RE PROGRESSING. SO, I APPRECIATE IT. THANK Y'ALL. THANK YOU. ALL RIGHT, [E. Executive Session] WE'LL MOVE TO ITEM E, EXECUTIVE SESSION. THE SACHSE ECONOMIC DEVELOPMENT CORPORATION, OR ECONOMIC DEVELOPMENT CORPORATION, SHALL CONVENE INTO EXECUTIVE SESSION FOR TO TEXAS GOVERNMENT CODE SECTION 551.087, ECONOMIC DEVELOPMENT DELIBERATIONS, TO DELIBERATE THE OFFER OF A FINANCIAL OR OTHER INCENTIVE RELATING TO THE DEVELOPMENT OF A PROJECT WITHIN OLD TOWN DISTRICT OF SACHSE. WE WILL ADJOURN TO EXECUTIVE SESSION AT 6:42 PM. WE GOT EVERYBODY BACK. WE WILL RETURN TO OUR REGULAR SESSION. IT IS OFFICIALLY 7:22 PM. AND [F. Action Resulting from Executive Session] ITEM I GUESS F1, ACTION RESULTING FROM EXECUTIVE SESSION. THERE IS NO ACTION TO [00:40:01] BE TAKEN, SO NOTHING NEEDS TO BE DONE ON THAT PART. IS THAT CORRECT? BECAUSE IT'S AN ACTION ITEM. OKAY, OKAY. SO ARE THERE ANY COMMENTS RELATED, OR ANYBODY FROM THE AUDIENCE WANTS TO SPEAK REGARDING THE EXECUTIVE SESSION F1? TAKE YOUR TIME. WE'RE NOT, WE DON'T HAVE, WE DON'T HAVE A STOPWATCH HERE. MAKE SURE YOU GET THERE. HI, JANE REED, SACHSE, TEXAS. I'M JUST CALLING, NOT CALLING. I DO NOT LIKE SPEAKING IN FRONT OF, BUT I WAS UNDER THE IMPRESSION, OR I'M TRYING TO FIGURE OUT, OLD TOWN IS ON THE OTHER SIDE OF 78, CORRECT? ON THIS SIDE OF 78, ON THE SAME SIDE, ON THIS SIDE OF 78. OKAY, GO AHEAD. NO, BUT I THOUGHT, WELL, OLD TOWN, I GUESS, DOES IT START THIS SIDE OF, AND THEN IT GOES TO THE OTHER SIDE UP TO BLACKBURN? OR IS IT 5TH STREET, 3RD STREET, AND IT ENDS AT BEN DAVIS? IS THAT, OKAY, WELL, OKAY, WELL, I'M JUST, I'M CURIOUS, YOU KNOW, THEY, THERE'S 24 TOWNHOMES RIGHT NOW OFF DEWITT THAT ARE PRETTY MUCH EMPTY, AND THEY'RE GETTING READY TO BUILD 104 TOWNHOMES RIGHT DOWN THE ROAD ON 3RD STREET. SO, I'M, I GUESS I'M JUST CURIOUS THE REASON, YOU KNOW, WHY THESE, THE 24 IS NOT SELLING, AND THEN THE 104 THAT WILL BE COMING THROUGH. BUT THEN I HEAR TONIGHT, THEN Y'ALL ARE LOOKING AT ADDING A WHOLE ANOTHER SECTION OF TOWNHOMES. SO, I'M JUST TRYING, AND I WAS WONDERING WHAT'S HAPPENED TO THE RESTAURANT ASPECT OF THE OLD TOWN SIDE. SO, I GUESS I'M JUST KIND OF CONFUSED. I THOUGHT THIS SIDE WAS FISH STREET AND THE OTHER SIDE WAS OLD TOWN, BUT YOU'RE, I'M UNDERSTANDING IT'S ALL ONE BLOCK. I MEAN, ONE BIG SECTION. SURE. SO, THE, THE OLD TOWN DISTRICT REFERS TO, TO A ZONING DESIGNATION, RIGHT? IS TECHNICALLY IT'S ON BOTH SIDES OF HIGHWAY 78, RIGHT? I THINK WHAT YOU'RE REFERRING TO IS THE PROPERTY OWNED BY THE CITY AND THE EDC THAT'S ON THIS SIDE OF HIGHWAY 78. SO, I, I, I THINK THAT'S WHAT YOU'RE REFERRING TO? WELL, I'M ALSO, BUT I UNDERSTOOD THAT OLD TOWN WAS ALSO ON THE OTHER SIDE. TECHNICALLY, THE ZONING, THE ZONING DISTRICT CONTINUES. AND AGAIN, I WILL, I CAN PROVIDE YOU THE MAP. OKAY, THE ZONING AREA, I'D BE HAPPY TO. BUT, BUT I'M UNDER THE IMPRESSION THAT THE 24 TOWNHOMES ON DEWITT IS IN OLD TOWN. I BELIEVE SO. I WILL CONFIRM THAT. AND THEN WITH THE 104 TOWNHOMES. I BELIEVE THOSE ARE AS WELL. SO, THAT WILL BE ALL OLD TOWN? I BELIEVE THAT THEY ARE WITHIN THAT, THAT ZONING DISTRICT, BUT I'LL CONFIRM THAT AND I WILL LET YOU KNOW. OKAY. YES, MA'AM. THAT'S ALL I NEED TO KNOW. THANK YOU. THANK YOU VERY MUCH. WE DON'T HAVE ANY ACTION OR ANYTHING THAT'S GOING TO RESULT FROM THAT EXECUTIVE SESSION EITHER. SO, WE WILL THEN GO TO ITEM G, ADJOURNMENT. WE WILL ADJOURN OUR MEETING AT 7:26 PM. THANK YOU ALL VERY MUCH. * This transcript was compiled from uncorrected Closed Captioning.