ULI Dallas-Fort Worth Center for Leadership Class of 2020 Mini Technical Assistance Panel

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DEEP ELLUM DALLAS SERVICE CENTER

Mini Technical Assistance Panel (mTAP) URBAN LAND INSTITUTE DALLAS-FORT WORTH Center for Leadership Class of 2020


HEATHER GILL/UNSPLASH

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Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Table of Contents

HISTORY AND BACKGROUND............................................................................4 • Site/Existing Conditions....................................................................................6 • Community Stakeholders..................................................................................7 • Overview, Stakeholder Feedback, and Considerations....................................10 • Proposed Infrastructure Improvements.............................................................12 • Suggested Uses.................................................................................................13 PUBLIC POLICY....................................................................................................16 • Housing Considerations....................................................................................16 • Interactions with the City and Opportunities for Financial Incentives..............18 • The Environmental Condition of the Property..................................................20 • Zoning Considerations......................................................................................21 CLICK LINKS TO NAVIGATE

CLICK FOOTER TO RETURN

DESIGN CONCEPTS.............................................................................................23 • Option 1............................................................................................................23 • Option 2............................................................................................................32 PUBLIC REALM.....................................................................................................46 • Placemaking......................................................................................................46 • Regional Context...............................................................................................50 • Neighborhood Context.....................................................................................51 • Dining/Food......................................................................................................52 • Amenities...........................................................................................................54 • Community Gathering.......................................................................................56 • Vehicular Hierarchy............................................................................................58 • Street Profiles....................................................................................................60 FINANCIAL PRO FORMA.....................................................................................62 • Option 1............................................................................................................62 • Option 2............................................................................................................65 • Asset Classes.....................................................................................................68 APPENDICES........................................................................................................69 This report and all materials within are the property of ULI Dallas-Fort Worth. Reproduction or use, without permission, of any graphics or written content in the report is prohibited.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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STEVE RAINWATER

SITTING IN THE SHADOWS OF DOWNTOWN DALLAS, DEEP ELLUM IS ARGUABLY THE MOST UNIQUE CREATIVE COMMUNITY IN TEXAS. For more than 100 years, Deep Ellum has historically been home to Dallasites who don’t ‘fit in’ elsewhere in the city. Formerly a home to African American blues musicians and an eastern European Jewish merchant community, it regenerated again in the 1980’s to become a community of live music venues, bars, restaurants, apartments, and “raves.” Since then, while it has continued to be a spot for live music, it has evolved into a community with painters, craftsmen, galleries, entrepreneurs, and technology.

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Urban Land Institute Dallas/Fort Worth


DEEP ELLUM: THE OTHER SIDE OF DALLAS/GOVENAR

DEEP ELLUM: THE OTHER SIDE OF DALLAS/GOVENAR

DEEP ELLUM

BRAD FEATHERSTONE

“Deep Ellum, on the eastern edge of downtown Dallas, retains its character as an alternative to the city’s staid image with loft apartments, art galleries, nightclubs, and tattoo shops. It sprang up as a ramshackle business district with saloons and variety theaters and evolved, during the early decades of the twentieth century, into a place where the black and white worlds of Dallas converged.” “Deep Ellum was not a neighborhood, strictly speaking. Few had residences there, at least after the turn of the century, though rooming houses endured for several decades. It was primarily a business district--more accurately, the confluence of two business districts, one white (mostly Jewish), one black.” “As firsthand accounts attest, Deep Ellum once really did ring with music, from the street blues of Blind Lemon Jefferson and others to the orchestras that played in the theaters.” “Deep Ellum has provided an alternative to Dallas’s image of itself as a staid and proper place modeled more after the great cities of the East and the Midwest than those of Texas or elsewhere in the South or the Southwest.” One of the prominent early architects for Deep Ellum was William Sidney Pittman, referred to as the “Architect of Deep Ellum.” William’s “greatest Dallas achievement was designing the state headquarters of the Grand Lodge of the Colored Knights of Pythias in the 2500 block of Elm, completed in 1916. It was, from an architectural standpoint, the most distinctive building in Deep Ellum.” Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

Excerpts from Alan Govenar and Jay Brakefield’s Deep Ellum: The Other Side of Dallas

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DEEP ELLUM DALLAS SERVICE CENTER Site/Existing Conditions

GOOGLE MAPS

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THE CITY OF DALLAS OWNS 22.8 ACRES OF LAND IN DEEP ELLUM KNOWN AS THE “CENTRAL SERVICE CENTER” The Central Service Center is a series of sprawling, one-story buildings and surface parking for:

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Dallas Transportation Department

Dallas Fire Marshals Office

Dallas City Marshal’s Office

Dallas Police Department

Dallas Sanitation Services Department

Equipment and Building Services

Urban Land Institute Dallas/Fort Worth


DEEP ELLUM

DEEP ELLUM DALLAS SERVICE CENTER Community Stakeholders

THERE HAVE BEEN SIGNIFICANT DEVELOPMENTS IN THE PAST FIVE YEARS THAT ARE VIEWED SIMULTANEOUSLY AS A THREAT AND AN OPPORTUNITY FOR DEEP ELLUM. The ULI Dallas-Fort Worth Center For Leadership has interviewed multiple stakeholders within the area to gauge perception of these threats and opportunities, including: •

Deep Ellum Foundation (DEF)

Deep Ellum Community Association (DECA)

Westdale Real Estate Investment & Management

Asana Partners

Madison Partners

DART Board Members

Baylor Hospital

City of Dallas

City of Dallas Planning + Urban Design Department

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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Urban Land Institute Dallas/Fort Worth


Source: www.deepellumtexas.com

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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LIBRARY OF CONGRESS

DEEP ELLUM DALLAS SERVICE CENTER Overview, Stakeholder Feedback, and Considerations

Deep Ellum¹ and its nearby neighborhood are currently home to almost 5800 residents in about 2800 households. Of those households, approximately 2400 people rent their homes, while 400 own. In 2017, the average household income was $70,800, and the median age was 34.² The residents include a mix of tattoo artists, service industry staff, attorneys, painters and more. Deep Ellum sees itself as a place where “nobody fits, but everybody belongs³.” The community wants to extend the heart and “feel” of Deep Ellum by repurposing the 20+ acre City Service Center to the east. This heart of Deep Ellum is a history of Dallas housed in a bricolage of intimately scaled, load-bearing masonry merchant shops and former factories. The City Services center houses city departments such as sanitation services, Dallas Fire Marshal, and Dallas Fire Department headquarters. The Urban Land Institute (ULI) is assisting the neighborhood by advising the local tax increment financing district, the Deep Ellum Foundation (DEF), to canvas neighborhood input, business owner input, and other affected jurisdictions.

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Urban Land Institute Dallas/Fort Worth


The neighbors and the City of Dallas want mixed income housing nearby. Many are artists that can’t pay the higher rents of Uptown.4 The Foundation needs this ULI Technical Assistance Panel to recommend innovative strategies to provide mixed income housing, such as: • • • •

Vouchers using an endowment from the sale or lease of the property, upzoning, or other mechanism, 5,6 Inclusionary zoning, Upzoning, or other methods.

While the aggregate of structures of Deep Ellum are historical and help create a vibrant street life, the structures in the City Service Center are a milieu of 70’s utilitarian architecture with limited architectural value from a viewpoint of pedestrian activity, scale, and capacity. In replacing these structures, the neighborhood wants to retain and enhance the walkability of the neighborhood. The neighborhood also wants to further leverage alternate modes of transportation, including bike lanes7. Improved walkability can be achieved through development of shorter blocks8, and following the Downtown360 urban design guidelines9 including, but not limited to: • • •

Height to width ratio10,11 to foster a sense of enclosure, Sidewalk widths10 Buildings that respond to changing grids.

Stakeholders want a variety of uses, but favor publicly accessible spaces and locally owned shops. 12,13,14 More bars is not the answer, as it lends the cyclical nature that Deep Ellum has historically experienced.14 ULI enthusiastically supports a mix of creative uses. In the short term, provide structures that attempt to lower the “barrier to entry” for local businesses via modest construction costs. Considering the long term, provide durable construction materials arranged with adaptable floor-to-floor heights so that when buildings “take on a life of their own”, the structures will be candidates for adaptive re-use just like much of Deep Ellum has been in the past. This is an important consideration if, say, above grade parking structures are necessary, and the long term future of parking is uncertain. The community is lacking green space and public activity space, and this is a priority of the neighborhood in any new development.15 The area is served by the new Santa Fe hike and bike trailhead which can be extended to the west along the existing DART Green line and Canton Street.16 The Santa Fe hike and bike trial passes nearby the city services center site. Keep in mind that the City of Dallas is trying to find other ways to tie together nearby neighborhoods, such as Fair Park, with the planned renovation of nearby I-30. The Texas Department of Transportation has plans to lower I-30 from Good Latimer to Grand Avenue and possibly beyond. The community will then be tasked to raise funds to cap I-30 with a park thereby providing further connection to Fair Park.18,19 Also, the connection to Baylor from I-30 is critical. Options to connect to Baylor are from Trunk Avenue, Baylor, and 2nd Ave. While TXDOT has suggested 2nd Avenue as an off ramp from I-30, there are no options set in stone as of December 2019. 19 As mentioned above, materials should reflect the honesty, scale, and durability of Deep Ellum’s buildings. Many residents in the neighborhood would simply like to extend a brick veneer into the new developments.17 Consider, however, that Deep Ellum cannot simply be duplicated by copying new brick over a 21st century structure. What is important about the architecture of Deep Ellum is the scale and durability of the materials and buildings. Brick is certainly an option and probably a safe bet, but other scalable materials can complement the neighborhood.

Sons of Herman Hall Meeting Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

Deep Ellum Foundation Business Owners Meeting 11


DEEP ELLUM FOUNDATION

DEEP ELLUM DALLAS SERVICE CENTER Proposed Infrastructure Improvements

ANTICIPATED INFRASTRUCTURE IMPROVEMENTS AFFECTING DEEP ELLUM CITY SERVICE CENTER •

2030s - “Trenching” I-30 from Good Latimer to Dolphin Road. Fundraising to cap a portion of I-30 with a deck park.

2020s - Extending the Santa Fe Trail into trailhead into Ellum.

2020s - Constructing an additional Deep Ellum DART rail station east of the Baylor University Medical Center station.

2020s - Consult with Oncor, Atmos to determine. Power distribution could be 2-3% of construction cost.

ADDITIONAL NOTES 1. 2.

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D2 Subway alignment does not directly affect this site, and therefore, is not addressed. Be mindful of pedestrian scale massing on the Deep Ellum side of the property (i.e. four stories), or concentrate taller office buildings on the “highway side” of the property. Consider the City’s thoughts on retaining control of the land/ office buildings as landlords, vs control via ground lease, vs. control via zoning/incentives.

Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Suggested Uses BASED ON THE DISCUSSIONS WITH NEIGHBORHOOD STAKEHOLDERS, THE ULI CFL COMMITTEE SUGGESTS THE FOLLOWING USES TO BE CONSIDERED FOR THE POTENTIAL REPURPOSING OF THE CITY SERVICES CENTER

Safety & Security

Residential

Commercial

Public Space

Parking

Section 1: Safety/Security A. Maintain a Dallas Police Department storefront presence; police storefront should face Hall or Canton. B. Maintain DPD communications facility.

Section 2 - Residential A. Construct dwelling units at a density of 50 - 120 dwelling units per acre. B. Allow residential dwelling units to cover approximately 40% of the available land area. C. Consider alternate product types for housing, including: 1. Live/work options, like artist lofts above studios (multiple requests) 2. Mixed Income Housing (40-120% Area Median Income. AMI = $52,000) a. Current incentive packages are not economically feasible to accommodate mixed income housing in high rise buildings. b. Consider retaining ownership of land, or contributing adjusted land basis as equity into deal with developer that will agree to building combination market rate and affordable housing. c. Synergies with affordable housing next to DPD presence will enhance safety, which has been a concern in other affordable+market rate housing. d. Comparable mixed income housing in the DFW area include 511 Akard, and Fort Worth’s Mistletoe Station Apartments. 3. Market-Rate Apartments 4. High-Rise at Perimeter of Neighborhood D. Consider pedestrian scale massing - i.e. four stories - if placed on the Deep Ellum side of the property.

Section 3: Commercial Consider providing various adaptable commercial uses. Keep in mind the history of Deep Ellum with respect to entrepreneurship, history of commerce, proximity to major traffic arteries, and location near CBD Dallas and Baylor University Health Center. Utilize remaining lot coverage (after residential and green space uses) for commercial use. Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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A. Office

1. Maintain DPD’s presence as a tenant in a multi-tenant office building or the sole tenant in an office building (depending upon size requirement). Explore option to be owner-occupied. 2. Consider soliciting offers from build-to-suit developers with identified tenants that desire a presence near Downtown & Uptown 3. Consider soliciting offers from speculative developers that understand tenant demand, existing/oncoming supply, and market dynamics: a. Supply 1. Uber properties (160K + 450K sf) 2. Continental Gin Building (70K sf) 3. Hines/Westdale spec tower (200K sf) 4. Rumored land sales expected to take place in the near future (few hundred thousand SF of office) b. Demand 1. Rental rates on par with CBD or slightly lower (if necessary) to CBD leasing rates. Broker feedback estimates that rents will be at least equal to CBD because of better amenities/feel of Deep Ellum in context of who the tenants are seeking for their employment base. 2. Understand the market for tenant demand (and credit quality) of tenants willing to pay $25-30NNN, with $10-11 PSF in estimated NNNs. Underwrite these rates along with development cost to understand if market yields are attainable (and adjust land accordingly).

B. Artisan Manufacturing/Flex Industrial

1. Consider warehouse use with office/showroom component in the front. 2. Lease to/build for tenants that maintain artistic integrity of Deep Ellum’s character. Build lease depths accordingly. 3. Proximity to major traffic arteries reinforces viability of industrial 4. Understand the market for tenant demand enabling tenants to pay rental rates in the low-to-mid-teens. Underwrite these rates along with development cost to understand if market yields are attainable (and adjust land accordingly).

C. Retail/Restaurant 1. 2. 3.

Deep Ellum has a significant amount of retail today; add uses that complement rather than compete/cannibalize existing local business. Deep Ellum is lacking the following uses or adequate supply of uses: grocery/ bodega, day care, dry cleaners, banks, pharmacy, Continue pursuit of unique tenants rather than big box retailers / national credit tenants; ideally build white box space for tenants <2,500 SF to keep monthly rents affordable based on $20-30 PSF NNN rents Provide some neighborhood services to limit walks to 5 minutes or less (it is a 10-15 minute walk from Good Latimer to Exposition)

D. Hospitality

1. Consider hotels in conjunction with commercial options above.

E. Education

1. Investigate a consortium of satellite higher ed campuses, business incubators, vocational schools, or education centers.

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Urban Land Institute Dallas/Fort Worth


Section 4: Public Space While the long range goal of Dallas is to construct a deck park nearby at I-30, the neighborhood believes that a smaller park, or parks, would be valuable to the neighborhood and the property owners. Care must be taken that the parks are surrounded with a mix of uses that provides “eyes on the street” 12-18 hours per day.

A. Park

1. On the site, locate a 3-5 acre park closer to core of Deep Ellum. Must have direct visibility and access from Canton or Hall. 2. Provide space for outdoor concerts by local musicians. 3. Consider pocket parks and dog parks. 4. Surround park and/or parklets with uses conducive to street activity (aka “eyes on the street”).

B. Streets

Just as Deep Ellum creates a ‘street wall’ to enclose the public street space, new buildings should add to this ‘notion of enclosure’ via relatively narrow streets. 1. Narrow right of way 2. Maintain approximately 10’- 16’ sidewalk widths. 3. Streets: Focus on short blocks but maintain urban ‘texture’ of Deep Ellum. 4. Desire for pedestrian and bike-friendly design

C. Roof-top Terraces D. Community Garden

Section 5: Parking Deep Ellum is a mix between a pedestrian oriented and car oriented neighborhood. The DART light rail line passes along its northern edge. Use parking ratios for properties that are serviced by transit and bike trails. Given the mixed-use nature of the area and proposed use of the study site, a market demand and shared parking approach may be favored over prescriptive exclusive parking allowances per use. The following are offered as guidelines. A. Office: 3 spaces per 1000 sf. Developers should study the impact of a possible future DART rail station within 2500 sf with a goal of reducing office parking to 2.4/1000 sf (i.e. 10-20% ridership) B. Residential: Provide 1.37 spaces per dwelling unit @ high rise. Provide 1.0 spaces per dwelling unit at low rise. (If accounting for transit, reduce these numbers by 10-20%. Further study required). C. Retail: Provide 1 per 1000 sf D. Restaurant: Provide 10/1000 sf (Includes the assumption that a portion of customers will walk to restaurant). E. Hospitality: Provide 0.5/1000 vehicles per Hotel Guest Room. Number may vary depending on function space. F. Shared Parking. Above densities have been extracted/interpolated from ULI’s ‘Shared Parking’ (2005) by Mary Smith. Evaluate shared parking by market (ULI) or city prescribed shared parking ratios.20 G. Designers should anticipate future trolley line at Main connecting to Fair Park. bike lanes at Canton St. 21 Notes: 1. The site has below grade gas tanks for city operated vehicles. 2. Surface parking lots are strongly discouraged. 3. Push for one (1) below grade garage serving multiple properties. 4. Consider repurposing parking garage into future residential. 5. Consider imposing a maximum parking limit. Reduce parking supply by relying on the density, walkability, and public transportation of the neighborhood.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Public Policy HOUSING CONSIDERATIONS Deep Ellum has historically been home to many artists, musicians and small business owners who enjoy the low cost of living in the area while having close proximity to the heart of Deep Ellum and Downtown Dallas. As the housing inventory increases from the current 5,800 residents to full build out, it is important that housing options are not only targeted to the highest end of the market but also meet the demand to allow those who have historically lived in the neighborhood to remain. The redevelopment of the Central Service Center is uniquely situated to meet that demand as the City of Dallas has a number of options to incentivize and help provide a wide range of pricing options. Deep Ellum Foundation Housing Goals The Deep Ellum Foundation has created a number of Strategic Goals that should guide the City of Dallas in their implementation of housing options: •

The Deep Ellum Foundation desires to ensure that new housing options being provided do not only supply the higher end of the market but also provide options for those long term artist, musicians and workers who have called Deep Ellum home for years.

The Foundation’s plans to measure success by tracking the ratio of housing units available in Deep Ellum by different income brackets.

The income brackets recommended to track were 60%, 80% and 100% Average Median Income. Residents also mentioned 40% AMI. We selected 60% as the baseline for this investigation.

We recommend tracking the 120% AMI level which opens up housing options for many of the work force employees in the area.

Rent Levels per Income Bracket The chart below shows the income limits for the different % AMI brackets along with their monthly rent burden at 30% allocation of income to housing cost. This is updated annually by HUD. Percentage of Average Median Income* Unit Type*** Efficiency

1BR

2BR

3 BR

60% Income Level Rent Level Income Level Rent Level Income Level Rent Level Income Level Rent Level

* Dallas AMI based on a family of four (4) - $83,100 ** Rent levels based on 30% of income level *** 1.5 persons per bedroom / 1 person per efficiency 16

Urban Land Institute Dallas/Fort Worth

80%

100%

120%

$34,920

$46,550

$58,170

$69,804

$873

$1,164

$1,454

$1,745

$37,410

$49,875

$62,325

$74,790

$935

$1,247

$1,558

$1,870

$44,880

$59,850

$74,790

$89,748

$1,122

$1,496

$1,870

$2,244

$51,870

$69,175

$86,424

$103,709

$1,297

$1,729

$2,161

$2,593


New Construction and Challenges to Affordability • Providing housing at a rent level that can be attained by a larger portion of the renter pool has proven to be very difficult due to raising land, construction and labor cost without alternative financing vehicles or incentives programs. •

The City of Dallas has implemented a Comprehensive Housing Policy to attempt to provide options to address the housing shortages in these income brackets. Many of their policies (ie. voluntary inclusionary zoning or density bonuses) will not be as effective for the Deep Ellum Service Station because this area already has entitlements that allow for high density, urban construction.

Due to high construction cost, it is extremely difficult to provide affordable housing in Type I concrete construction. Having wood frame construction as a part of the development plan lends itself to the possibility of providing mixed income housing options with reasonable City investment or abatements. Public Policy Recommendations on Housing WE RECOMMEND PROVIDING 20% - 30% OF THE NEW HOUSING STOCK ON THE DALLAS SERVICE CENTER TO BE WITHIN THE 60% - 120% AMI RANGE. This could be increased more depending on the financial incentives and deal structure made with the City of Dallas. Below are the tools that can currently be used in order to help bridge the funding gap or incentivize developers to provide mixed income housing developments.

Housing Toolbox •

Deep Ellum TIF – The Deep Ellum TIF has the ability to provide funds to developers for providing housing units at 80% of AMI. This can be done on a case by case basis

Chapter 380 Agreement – Grants can be awarded for providing a percentage of affordable units in new developments.

Public Facilities Corporations (PFC’s) – Chapter 303 of the Texas Local Government Code allows for 100% tax abatement for developments providing 50% of housing units at or below 80% AMI. This requires a ground lease structure where the City of Dallas would retain ownership of the land and provide a 75 - 99 year ground lease to the developer. The City of Dallas is currently working on the creation of a city controlled PFC which could be utilized for this goal.

Low Income Housing Tax Credits – Federal tax credits are issued to developers of qualified residential projects. To qualify, among other things, the projects must offer a specified percentage of “affordable” housing units. The “affordability” of the units is based upon those units being restricted to only those renters below certain threshold income levels (tied to HUD-determined median income). Developers typically sell these credits to third-party investors in order to raise capital for their projects. This could be used to target the lower income levels below 80% AMI.

Creative Public/Private Partnerships – With the City of Dallas owning the land they have the ability to structure unique arrangements to incentivize affordable housing. This could be as simple as a reduce land cost, lower ground lease rent, waiver of permits and fees, fee in lieu for affordable housing redevelopment in other parts of Deep Ellum and/or other unique arrangements.

The City of Dallas should provide time and the ability for the Deep Ellum constituents to give input and feedback on how their neighborhood is going to be redeveloped. This collective approach ensures that the redevelopment will be something the City of Dallas and Deep Ellum is proud of for decades to come.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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INTERACTIONS WITH THE CITY AND OPPORTUNITIES FOR FINANCIAL INCENTIVES Development Review Process: Site Plan and Expedited Review Early in redevelopment efforts, we recommend a pre-development coordination meeting with the City of Dallas to establish what City approvals are needed. This will require a pre-development application including site plans and information on the proposed development. The developer of the project may decide to go through the Q-team/Express Plan Review. This program would allow the development to undergo an accelerated review process over a 10-15 day period. If no issues are found, express fees can be paid and permits can be processed. For the size of the planned redevelopment, the maximum cost would be $50,000. Of course, the City may decide to waive this if the City is a partner on the redevelopment. Public Facilities Infrastructure and Utilities: Development Considerations and Public Assistance In order to move forward with the construction of public wet utilities, paving and drainage, infrastructure design plans establishing connections to existing utilities must be provided and consistent with City requirements as guided in pre-development coordination meeting. Drainage conditions – including the FEMA flood plains - must be shown, with calculations on proposed improvements indicating a capacity to convey a 100-year storm. For roadway improvements, a completed trip generation worksheet will likely result in the requirement of a Traffic Impact Analysis (TIA) due to the significant vehicular movement that is anticipated on the site. The TIA will dictate improvements that must be made along the roadway infrastructure. All plats will need to have been established and easements identified. Per City standards, replacing of water mains and or fire hydrants may be required in this area, due to the fact that the age of the infrastructure exceeds the City’s standards. Redundant fire flow would be required for any building over 120 feet. The aforementioned infrastructure, as well as street and pedestrian lighting, is eligible for financing through the Deep Ellum TIF District as dictated in the project plan. Since the redevelopment project is making “substantial improvements and maintaining existing buildings, courtyards and alleys” while “benefit(ing) the Deep Ellum area as a whole and provide a model for future redevelopment efforts in the area,” it is appropriate that the TIF Board designate the redevelopment of the Deep Ellum Service Center as a “catalyst level” project, or even possibly a “district-wide” project in order to receive a greater share of funding. This would allow increased shared tax increment to go to the project, which could be used for enhancing or replacing vital utility infrastructure. All public infrastructure, from water and wastewater facilities to road facilities, would also be eligible for funding through a municipal management district, discussed more in-depth below. Parks and Green Space Some public funds may be available to facilitate the creation, expansion, or improvement of parks and green space within the property. The developer may seek a Local Park Grant through the Texas Parks & Wildlife Department, specifically an Urban Outdoor Recreation grant. Such a grant would contribute up to 50% of the financing of outdoor recreational areas on a reimbursement basis. While the applicant must share at least 50% of the cost, this can come through a variety of funds, including a dedication of land for the park space. The maximum amount available through such a grant is $1.5 million, and there are some limitations, depending on the volume of such grants already outstanding with the City of Dallas. The grant is awarded through a simple application and approval process, with applications due annually on December 4. In addition, the TIRZ documents indicate that TIRZ funds would be appropriately utilized in parks and green space. A public park potentially falls under the TIRZ’s 5% set aside for a “District Wide Improvement,” as a public park would provide benefits to the entire TIRZ area. Parking Parking will constitute a hefty but necessary expense regardless of site plan. The TIRZ documents name parking as a Project Plan Improvement. Similar to parks, public parking potentially falls under 5% set aside for District Wide Improvement, as it benefits whole TIRZ area. Private parking would likely not be qualified. The potential municipal management district, described in more detail below, could provide a source of funding for these high costs. The difficulties would lie in funding for any private parking—the use of privatized parking, reserved for the use of a particular business or person, rather than the public at large, would likely require that any bonds issued by the MMD for funding would be taxable, rather than tax-exempt, which could drive interest rates up. There is also the potential to fund parking through a 380 grant with the City of Dallas. Such a grant would typically come in the form of a loan, with forgiveness only occurring upon the successful completion of various performance thresholds.

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Urban Land Institute Dallas/Fort Worth


Public Financing Mechanisms Public Improvement District: Operational and Maintenance Assistance After Development The Deep Ellum Public Improvement District (PID), managed by the Deep Ellum Foundation, is generally not equipped to offer significant assistance in regards to the redevelopment construction project and capital outlays. However, it is important to engage with the PID early in order to ascertain their budgetary capacity to offer some level of operational support once the development is built and tenants are ready to open. Services that could be offered include: • • • •

Additional security services via cameras, signage or even the funding of off-duty police officers to provide some security in public parking locations or common areas Graffiti abatement to address vandalism, particularly on any public art Wayfinding and monument signage Marketing of events, businesses in area

Proposed Municipal Management District: Additional Financing Tool for Infrastructure and Maintenance The creation of a municipal management district (“MMD”) could provide funding for a large variety of public improvements, including water and wastewater infrastructure, roads, parking, landscaping, and parks, as well as provide funds for the continuing operation and maintenance of such improvements. An MMD may be created, with the City’s consent, through either the legislature or the Texas Commission on Environmental Quality. A legislative MMD can impose taxes or assessments on land, which can be used to directly fund development over time or can be used to finance bonds, which would provide the developer with funds more quickly. Financial analysis would be needed to ascertain what could be levied against the property without over-taxing or overassessing the potential land value. Moreover, other financing tools work well with MMDs. TIRZ funds can be used to offset, or pay down, the assessments, such that the improved value of the land generates the funds, rather than high tax equivalent rates. Should the planned hotel property be constructed, the MMD could be the recipient of a percentage of hotel occupancy taxes to provide additional ongoing maintenance and operational funds. Office Development Incentives • The proposed sites for the Deep Ellum Service Center redevelopment project both have considerable amounts of land for office development. While costs for these projects are considered to be substantial, fortunately, the City of Dallas has a robust economic development program designed to stimulate private investment where it would otherwise be difficult. Additionally, some various state and federal incentives may also be used to encourage development. As such, the following programs should be explored: •

City of Dallas Chapter 380 Program – Cash grants may be provided to companies that are considering a relocation / expansion. While these funds will not go to a developer, they can be marketed by a developer in order to hit pre-construction leasing requirements. A total of 100 jobs must be created or retained.

Texas Enterprise Fund – The State of Texas can provide up to $10,000 per qualified job for projects looking at one Texas location in comparison to another viable out-of-state site. Similar to the 380 program, while these funds go to the end user, they can potentially be leveraged to facilitate a build-to-suite.

Texas Enterprise Zone Program – The State’s Enterprise Zone project provides refund for all state sales and use taxes paid and used at the business site. The refund will be predicated on investment amount and number of jobs created. If the project investment amount is equal to or great than $5 million or more, then the refund amount is $2,500 per job, up to a maximum of 250 jobs created.

New Market Tax Credit – The federal tax credit program provides investors with a 39% federal tax credit payable over seven years for development in traditionally underserved or distressed areas. The Deep Ellum Service Center site is eligible.

Opportunity Zone – The site is also eligible for benefits under the federal Opportunity Zone designation. In exchange for investing in the opportunity zone, development investors can defer capital gains taxes owed from other investments, as well as possibly receive tax-free appreciation for longstanding investments.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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THE ENVIRONMENTAL CONDITION OF THE PROPERTY WHILE ENVIRONMENTAL CONSIDERATIONS WILL AFFECT DEVELOPMENT OF THE SITE, WE EXPECT THAT THE CITY WILL HAVE ACHIEVED REGULATORY CLOSURE FOR KNOWN ENVIRONMENTAL IMPACTS, AND THAT, WITH LIMITED EXCEPTIONS, ENVIRONMENTAL CONSIDERATIONS WILL BE GENERALLY CONSISTENT WITH OTHER REDEVELOPMENTS IN DEEP ELLUM. As with any property but particularly important considering the long industrial history of the Deep Ellum area, redevelopment plans must consider the potential for environmental impacts in soil, groundwater and soil vapor. According to City files, the Service Center property was historically used as a cotton gin and oilfield equipment manufacturer from the early 1900s through the 1970s. The historical facility included repair and machine shops, paint shops, electroplating shops and a foundry. Historical information indicates that underground storage tanks (USTs) were present on the east central portion of the Service Center Property. The City redeveloped the Site in the early 1980s, and the City’s use includes a service shop, fueling center, and car wash, as well as various City offices. In the fueling center, five USTs are currently in use, and various other USTs have previously been in use and removed. The City of Dallas is actively addressing environmental conditions at the Service Center. Investigations identified petroleum and chlorinated solvents affecting groundwater at the property, primarily in the central portion in the vicinity of the current car wash and fueling center. The City’s response includes response actions under two Texas Commission on Environmental Quality (TCEQ) programs. •

Voluntary Cleanup Program (VCP): First, the City has enrolled a portion of the Service Center in the TCEQ VCP as VCP No. 2901. The City has also applied for a Municipal Setting Designation (MSD), which would formally prohibit the use of groundwater at the property. With the MSD, the City would only be required to address remaining potential exposure pathways in the VCP property, including direct contact with soil, to obtain a VCP Certificate of Completion. Working through the MSD and VCP may take 1-2 years, but is likely to result in regulatory closure for this portion of the property. With the VCP Certificate, future owners and operators of the Site would be released from liability to the state for investigation or remediation. With respect to the VCP, we recommend that the City pursue a Certificate for residential use (with the current use, the City could pursue Commercial/Industrial closure, which would require further regulatory interaction for redevelopment of residential parcels).

Leaking Petroleum Storage Tank Program: In addition to the VCP, the City has addressed releases from the USTs through the TCEQ’s LPST program. The City detected phase-separated petroleum hydrocarbons in the subsurface, and removed those to the extent practicable considering the existing development at the property. The LPST program issued a “No Further Action” letter to the City in 2016.

According to the City’s MSD application, impacts remain in soil and groundwater at the property. It appears likely that regulatory closure will be achieved prior to the commencement of redevelopment. Even with regulatory closure, there will be some remaining environmental considerations for development and construction, including: •

Based on the historical use of the property and the available data, soil management plans will likely be required to provide information on addressing previously undiscovered impacts. Soils may not be suitable for unrestricted reuse off-site, and exported soil may require landfill disposal.

Residual impacts in groundwater could pose the potential for vapor intrusion to indoor air of future site buildings constructed at grade. The need for vapor mitigation for any specific building should be considered in diligence reviews.

The existing USTs will need to be removed prior to redevelopment. Considering that residual phase-separated petroleum was allowed to remain in place at the time of the previous No Further Action letter, it is possible that TCEQ will require additional remediation when the USTs are removed.

In addition to subsurface considerations, based on the age of the buildings, it is possible that asbestos and other hazardous building materials could be present. An asbestos survey should be performed prior to demolition, and asbestos and other hazardous materials abated or properly managed during demolition. Other than specific issues related to the UST removal and residual petroleum impacts, it appears likely that environmental considerations for the site will be similar to those of surrounding Deep Ellum properties. 20

Urban Land Institute Dallas/Fort Worth


ZONING CONSIDERATIONS History of Deep Ellum & Land Use Deep Ellum has a rich history of mixing land uses. Even as far back as the “Freedmen’s Town” when former slaves settled this area and several industrial uses emerged simultaneously, socio-economic success hinged on a diversity of land uses. By the 1920s the industrial uses were complemented by an explosion of retail and entertainment. However, the loss of the Houston and Texas Central Tracks in the ’40s coupled with the elevated Central Expressway bisecting the center of the community in the ’60s led to a huge reduction in business. In 1983, a Deep Ellum Plan to redevelop the area called for in to be downzoned to promote a small and artsy feel. Along that vein, building height, roadway width, and population density were all restricted. The culmination of these planning decisions coupled with rising crime caused Deep Ellum to struggle through the early 2000s. Revitalization efforts of the city and community partners since 1999 have contributed to a resurgence in multi-family housing, music venues, and restaurants. These efforts have proven successful in that they have stemmed reductions in crime, increased economic stimulation, and catalyzed development. If we’ve learned anything from the past, it’s that the right combination of land uses coupled with public policy stewardship is the best formula for success in the placemaking of Deep Ellum.

SHREYAS SHAH/UNSPLASH

As the “highest and best use” of the subject property within this district would certainly fall into a diversity of land use categories, it was important to explore the most proper development entitlement plan. Currently, the site is zoned PD-269 meaning there is already a development plan that allows the properties to be developed with master planning in mind. The framework of this zoning entitles the proposed site as a special district permitting specific residential, commercial, industrial, lodging and other desirable mixed uses across the affected tracts. This approach builds on the historic nature and what has been successful throughout Deep Ellum’s history. It is therefore recommended that the PD-269 remain in place in order to promote the continued reemergence and success of the district.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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22

Urban Land Institute Dallas/Fort Worth

Transfer Co. Food Hall Raleigh, NC

150 Charles Street New York, NY. (CITYREALTY.COM)


DEEP ELLUM DALLAS SERVICE CENTER Design Concepts - Option 1 N

Office Residential Restaurant /Retail Police Substation Park

AERIAL COMMENTARY Proposed Site Plan Option 1 introduces a ½ acre green that serves as a connector with the proposed development to the greater context of Deep Ellum. In addition to the neighborhood connector, this scheme also incorporates a series of neighborhood greens that are attached to a variety of land uses to help further activate the public realm of the new development.

activate street edges and enhance the energy of the development. Programming of the project parklets varies throughout the year and include water features, performance stages, open greens for flexibility in functions, and areas of shaded respite.

The approximate 20 acre development has signage standards that provide for ease of wayfindThe intersections are enhanced to create a bet- ing and tie a consistent brand and identity around ter sense of walkability and tree lined streets with the development. wide sidewalks envelope the building facades to

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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VE. TRUNK A

Aerial view of the proposed development illustrating continuation of green spaces to connect to Trunk Avenue (in the center of the development) and ½ acre parklet on Canton Street that serves as entry to development.

Aerial view of ½ acre entry parklet with 2,000 square foot pavilion anchoring edge of park. Attached greens anchor development uses allowing for resident and tenant break out zones creating an exterior environment that promotes health and wellness.

Aerial view of development illustrating tree lined streets with wide sidewalks encouraging connectivity and walkability.

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Urban Land Institute Dallas/Fort Worth


LOOKING NE

LOOKING S Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

25


AFFINITY IMAGERY

OFFICE

CREATIVE OFFICE/ RESIDENTIAL LOFTS ABOVE 26

Urban Land Institute Dallas/Fort Worth

RESTAURANT


HIGH-RISE RESIDENTIAL

HOTEL Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

MID-RISE RESIDENTIAL 27


LOW AERIAL

AERIAL LOOKING E 28

Urban Land Institute Dallas/Fort Worth


AERIAL LOOKING NW

EYE-LEVEL PERSPECTIVE LOOKING E Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

29


EYE-LEVEL PERSPECTIVE LOOKING NW

EYE-LEVEL PERSPECTIVE LOOKING SE 30

Urban Land Institute Dallas/Fort Worth


Office

Residential

Restaurant /Retail

Police Substation

Park

OPTION 1 TABULATIONS TRACT 1

TRACT 2

TRACT 3

TRACT 4

TRACT 5

TRACT 6

TRACT 7

TRACT 8

0.92

3.1

2.42

1.08

2.41

1.57

2.18

2.29

182,000

264,000

RESIDENTIAL UNITS

280

AVERAGE UNIT SIZE

650

SITE AREA (ACRES) RESIDENTIAL RSF

RETAIL/RESTAURANT 10,000

OFFICE

70,000

791,000

320

300

900

825

1,150 4,000

18,000

5,000

30,000

190,000

HOTEL SF

62,000

172,800

249,000

HOTEL KEYS

432,800 249,000

150

SUBSTATION OPEN SPACE

15.97

345,000

5,000

GROCER

GRAND TOTAL

150 24,000

31,200

36,700

67,900

ASSUMED STORIES

OPEN SPACE

4

6&7

7

1

15

9

6

PARKING PROVIDED

NA

REMOTE

400

195

290

450

850

450

ASSUMED ABOVE GRADE LEVELS

NA

NA

2

3

2

3

5

5

ASSUMED BELOW GRADE LEVELS

NA

NA

1

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

2,635

31


DEEP ELLUM DALLAS SERVICE CENTER Design Concepts - Option 2

Office Residential Restaurant /Retail Police Substation Park

N

AERIAL COMMENTARY Proposed Site Plan Option 2 has a unique identity as it incorporates an approximate 3 acre park in the center of the development. This park serves as a regional draw and attractor not only for the neighborhood of Deep Ellum but for the City of Dallas. This scheme keeps the existing cellular tower in the development and serves as iconic emblem of the development that people start to associate with Deep Ellum. Additionally, this plan incorporates smaller retail and restaurant outlets that help activate the park year around. Smaller

32

Urban Land Institute Dallas/Fort Worth

pocket parks dot the development providing a variety of spaces that provide respite and shade. The approximate 20 acre development has signage standards that provide for ease of wayfinding and tie a consistent brand and identity around the development. The intersections are enhanced to create a better sense of walkability and tree lined streets with wide sidewalks envelope the building facades to activate street edges and enhance the energy of the development.


Aerial view of the development with residential (multi-family) building in the foreground with private courtyard, and regional approximate 3 acre park in the center of the development.

Aerial view of the development reflecting the approx. 3 acre park as the centerpiece of the development.

Aerial view looking down Canton and other internal development streets emphasizing the tree lined streets creating greater walkability and connectivity.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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OFFICE

CREATIVE OFFICE/ RESIDENTIAL LOFTS ABOVE CREATIVE OFFICE WITH RESIDENTIAL LOFTS ABOVE 34

Urban Land Institute Dallas/Fort Worth

RESTAURANT


AFFINITY IMAGERY

HOTEL Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

MID-RISE RESIDENTIAL 35


LOOKING NE

LOOKING S 36

Urban Land Institute Dallas/Fort Worth


LOW AERIAL

AERIAL LOOKING E Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

37


AERIAL LOOKING NW

EYE-LEVEL PERSPECTIVE LOOKING E 38

Urban Land Institute Dallas/Fort Worth


EYE-LEVEL PERSPECTIVE LOOKING NW

EYE-LEVEL PERSPECTIVE LOOKING SE Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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Office

Residential

Restaurant /Retail

Police Substation

Park

OPTION 2 TABULATIONS TRACT 1

TRACT 2

TRACT 3

TRACT 4

TRACT 5

TRACT 6

TRACT 7

TRACT 8

0.92

3.1

2.42

1.08

2.41

0.49

2.18

2.29

182,000

264,000

446,000

RESIDENTIAL UNITS

280

320

600

AVERAGE UNIT SIZE

650

825

SITE AREA (ACRES) RESIDENTIAL RSF

RETAIL/RESTAURANT

10,000

GROCER OFFICE

5,000

4,000

18,000

8,500

14.89

65,500

10,000 40,000

70,000

225,000

HOTEL SF

201,600

249,000

HOTEL KEYS

536,600 249,000

150

SUBSTATION

150 24,000

OPEN SPACE

40

20,000

GRAND TOTAL

124,000

124,000

ASSUMED STORIES

2

4

6&7

8

1

1

6

10

PARKING PROVIDED

REMOTE

800

600

0

4

REMOTE

REMOTE

400

325

290

ASSUMED ABOVE GRADE LEVELS

NA

NA

2

4

2

ASSUMED BELOW GRADE LEVELS

NA

NA

1

1

Urban Land Institute Dallas/Fort Worth

2

2,415


DEEP ELLUM DALLAS SERVICE CENTER Comparable Developments

THE CENTRAL SERVICE CENTER 22.8 AC

Several comparable developments within the United States were examined based on similar size, mix of uses, cultural and historical significance, and other factors.

• • • •

Wynnewood - Miami, Florida The Pearl - San Antonio, Texas River North (RiNo) - Denver, Colorado The Meatpacking District - Manhattan, New York, New York

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

41


WYNWOOD Fast Facts • Located in Miami, FL just north of downtown • ~525 acres • Prominent Entertainment District dotted with artwork, restaurants, breweries, clothing stores, dance venues, and other retail

42

Urban Land Institute Dallas/Fort Worth


THE PEARL Fast Facts • Located in San Antonio, TX just north of downtown • ~47.6 acres • Top culinary and cultural destination • Mixed use space featuring retail, dining, green spaces, riverside amphitheater • Sustainable buildings mixed with historic architecture

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

43


RiNo Fast Facts • Located in Denver, CO just north of downtown • ~1,107 acres • Trendy River North Art District features contemporary art galleries, hip concert venues in revamped industrial buildings • Historic warehouses and factories now house jazz bars, restaurants, art galleries and working studios • Known for its colorful murals, cocktail lounges, brewpubs and late night food trucks • Boasts a diverse mix of creative businesses ranging from visual artists, designers, furniture makers, craft distillers, winemakers, creators of unique outdoor gear and small batch coffee roasters

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Urban Land Institute Dallas/Fort Worth


MEATPACKING Fast Facts • Located in Manhattan, NY • ~20 acres • Transformed from its slaughterhouse origins into a luxury destination filled with clubs, stylish restaurants and several of the City’s trendiest hotels. • Neighborhoods historic cobblestone streets are upscale boutiques and salons along with the High Line, an elevated park built on a former railway line

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

45


DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Placemaking

Placemaking and the creation of an iconic destination is an important aspect for consideration when developing within the urban environment. Mixed-use developments must carefully weave the goals of density, land use mix, infrastructure, circulation, financial proforma, amenities, and programming into a holistic, highly functional, and beautifully articulated place to live, work, and play for its residents, tenants, visitors, patrons, and future stakeholders. Done right, the development can be both a neighborhood, city, and even regional draw for entertainment, commerce, shopping, dining, and relaxation. Working collaboratively with the community and neighborhood leaders, the City of Dallas, real estate professionals, and a wide range of invested stakeholders, the Deep Ellum Dallas Service Center will be transformed from a restricted access, outdated, mundane collection of public service buildings, to a vibrant, connected, and forward thinking mixed-use community of office and communal working spaces, retail shopping, dining, entertainment, open space, and urban living. The Public Realm components of this development will follow several key guiding principles for success: 1. A district layout, including building massing, open space, streetscape articulation, and vehicular and pedestrian circulation that is both consistent with the historic overlay of Deep Ellum, while furthering progressive and current trends for mixed-use developments. 2. Streetscape networks and neighborhood blocks that are both efficient and pragmatic for the vehicular realm, while also thoughtful in its considerations for the pedestrian experience, including opportunities for social gathering, community events, and connections to green space, at a variety of scales. 3. A wide range of public uses and programming that offer a variety of year-round options for residents, tenants, and visitors to connect and engage with one another. The following pages indicate the initial framework and inspirations for how the Public Realm can be collaboratively articulated among the various teams to achieve a successful project for everyone involved. 46

Urban Land Institute Dallas/Fort Worth


Public space iscreative inherently multidimensional. better urban design, placemaking facilitates patterns of Successful and genuine pub-

lic spaces are used by many different people for many different purposes at

use, paying particular attention to the physical, cultural, and many different times of the day andsocial the year. Because public spaces harbor so many uses and users—or fail to do identities that define a place and support its ongoing evolution.so—they are also where a staggering cross-section of local and global issues converge.

WHAT IS PLACEMAKING?

ARCHITECTURE & DESIGN GOVERNANCE

EQUITY INNOVATION & ENTREPRENEURSHIP

Placemaking inspires people to collectively reimagine and reinvent public spaces as the heart of every community. Strengthening the connection between people and the places they share, placemaking refers to a collaborative process by which we can shape our public

MAIN STREETS ARTS & CULTURE

realm in order to maximize shared value. More than just promoting better urban design, placemaking facilitates creative patterns of use, paying particular attention to the physical, cultural, and social identities that define a place and support its ongoing evolution.

SUSTAINABLITY & RESILIENCE

PLACE

LOCAL FOOD

PUBLIC HEALTH

STREETS & TRANSPORTATION

Public space is for negotiating the interface between our homes, our businesses, our institutions, and the broader world. Public space is how we get to work, howof we providing do our errands, and how we get back home. Public space is Cities have the capability something nearly half ofand violent crimes happen. Public space is where policing for everybody, where only beacuse, only when, ensures safety for some but not others. Public space is for buying and sellthey are created by everybody ing, or for meeting, playing, and bumping -Jane Jacobs into one another. Public space is for conveying our outrage and our highest aspirations, as well as for laying the most mundane utilities and infrastructure. And when we let it, public space can be a medium for creativity, expression, and experimentation. Cities have the capability of providing something

POWER OF 10+and only when, for everybody, only beacuse, they are created by everybody

-Jane Jacobs How Cities Transform through Placemaking To be successful, cities need destinations. They need destinations that give an identity and image to their communities, and that help attract new residents, businesses, and investment. But they also need strong community destinations that attract people. A destination might be a downtown square, a main street, a waterfront, a park, or a museum. Cities of all sizes should have at least 10 destinations where people want to be. What makes each destination successful is that it has multiple places within it. For example, a square needs at least 10 places: a café, a children’s play area, a place to read the paper or drink a cup of coffee, a place to also sit, somewhere to meet friends, etc. Within each of the places, there should be at least 10 things to do. Cumulatively, these activities, places and destinations are what make a great city. We call this big idea the “Power of 10+.”

In short, public space is where so many tragedies and triumphs of the commons play out. And that’s why getting it right matters. The ten issue areas where we believe placemaking can have the most transformative impact are: equity & inclusion; streets as places; architecture of place; innovation hubs; market cities; place governance; sustainability & resilience; rural communities; creative placemaking; and health.

1

Place

10+ THINGS TO DO, LAYERED TO CREATE SYNERGY

City/Region

10+ MAJOR DESTINATIONS

Destination

10+ PLACES IN EACH

2

3

NOTE: The approach to the design of the Public Realm at the City Services Center should be focused on the ideologies of experiential Placemaking. The graphics on this page and the following two pages are general guidelines for consideration provide by the Project for Public Spaces found here: https://issuu.com/projectforpublicspaces/docs/oct_2016_placemaking_booklet

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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WHAT MAKES A GREAT PLACE? It's surprisingly simple. Most great places, whether a grand downtown plaza or humble neighborhood park, share four key attributes:

1. They are accessible and well connected to other important places in the area. 2. They are comfortable and project a good image. 3. They attract people to participate in activities there. 4.

They are sociable environments in which people want to gather and visit. again and again.

4

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Urban Land Institute Dallas/Fort Worth


+ Visually pleasing + Generally stimulating + Sense of belonging + Greater security + Better environmental quality + Feeling of freedom

THE BENEFITS OF GREAT PLACES THE BENEFITS OF GREAT PLACES

PROMOTES SENSE OF COMFORT

CREATES IMPROVED ACCESSIBILITY

+ Greater community organization + Sense of pride and volunteerism BUILDS & NURTURES & SUPPORTS DEFINES + Perpetuation of integrity THE LOCAL SENSE OF PLACE and values ECONOMY COMMUNITY Placemaking both a process and a philosophy. It is centered around + Less need forismunicipal control observing, listening to, and asking questions of the people who live, work, + Self-managing and play in a particular space in order to understand their needs and

THE PLACEMAKING PROCESS PROMOTES

+ Small-scale entrepreneurship + Economic development + Higher real estate values + Local ownership, local value + More desirable jobs + Greater tax revenue + Less need for municipal services

FOSTERS SOCIAL

INTERACTION HEALTH aspirations for that space and for their community as a whole. Working with the community to create a vision around the places they view as important to community life and to their daily experience is key to building + Increased physical activity + Access to fresh food a strategy for implementation. Beginning with short term, experimental + Greater security improvements can immediately bring benefits to public spaces and the + Greater social inclusion people who use them and inform longer term improvements over time. + Enhanced environmental health

Place Led, Community-Based Process

10

+ More walkable + Safe for pedestrians and bicyclists + Compatible with public transit + Reduces need for cars and parking + More efficient use of time and money + Greater connections between uses

+ Improves sociability + More cultural exposure, interaction + Draws a diverse population + More women, elderly, children + Greater ethnic/cultural pluralism + Encourages community creativity

Underlying Ideas

11

1 The Community is The Expert 2 Create a Place, Not a Design 3 Look for Partners 4 They Always Say “It Can’t Be Done.”

Planning & Outreach Techniques

5 Have a Vision 6 You Can See a Lot Just By Observing

Translating Ideas into Action

7 Form Supports Function 8 Triangulate 9 Experiment: Lighter, Quicker, Cheaper

Implementation

10 Money Is Not The Issue

18

11 You Are Never Finished 13

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Regional Context

[ Old East Dallas

IH 345 Removal

ile 1M

Uptown

1/2 Mile

Baylor U. Medical Center

75

360 Plan Catalytic Development Area

30

Elm St (360

Exposition Park

r Majo Plan ts) en

n St Canto

e Av

ve dA 2n

City

t 1s

em St erceate improv Comm / Priv

SITE Deep Ellum Entertainment Center DART Rail Operations

[

Downtown

Proposed D2 Line

Fair Park

IH 345 Removal

Cedars 45

olm alc M

30

Existing DART Line

X

South Dallas

Set within the historic Deep Ellum neighborhood, the Dallas Service Center is an existing regional hub for a wide range of city services. This secure and generally privately accessed 22.8 acres is set just north of I-30 along the eastern edge of one of Dallas’ most premier upcoming neighborhoods in Deep Ellum. Within 1/2 mile of the site, visitors to this site will have direct access to the Baylor Medical Center located to the north, Exposition Park to the east, as well as significant portion of the Deep Ellum district itself to the west. With 1 mile of the site, one can access one of Dallas’ most historic landmarks, Fair Park, Downtown Dallas, the Cedars historic residential and mixed-use neighborhood, and the future 360 Plan Catalytic Development Area, located just east of I-75, east of downtown Dallas. There are three major arterials leading to the subject site, I-45, I-30, and I-75, all primary routes for both regional and neighborhood traffic. These three highways provide critical linkages that offer our site a unique access to the site. Future development opportunities and infrastructure improvements across the Deep Ellum district will provide a strong economic outlook for this evolving Dallas neighborhood. The following pages indicate the initial framework and inspirations for how the Public Realm can be collaboratively articulated to achieve a successful development in Deep Ellum for everyone involved.

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Urban Land Institute Dallas/Fort Worth


36 "

8"

"

"

t 1s e Av

"

8

12

ve dA 2n "

8"

8"

6"

8"

36

6"

Grain Mill

"

"

20

6" 6"

8"

20

8" 6"

6"

4" 6"

30

8"

6"

8"

"

"

12

"

18

6"

"

6"

"

Public 8 " Storage

12

8"

"

6"

"

8"

8"

6"

12"

20

8"

8"

20

"

Residential

8"

36

8"

12

Self Storage

6"

8"

8"

6"

6"

6" "

6"

6"

20

8"

8"

Communication Tower

8"

12

8"

"

10

"

8"

8"

"

12

8"

20

15"

Sandbar Cantina

8"

8"

12"

6" "¥

"

8"

6"

10"

"

15

10"

10"

t

8"

8"

12"

12"

12"

Exposition 8" Park

8"

10

6"

8"

St Hall

8"

8"

12

8"

8"

12"

8"

6"

10

6"

8"

6"

"

6"

6"

6"

6"

8"

20"

8"

6"

8"

6"

6"

8"

16"

"

"

8"

6"

6"

nS Canto

6"

12"

10

36

6"

12"

12"

12"

8"

12"

12"

6"

6"

8"

DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Neighborhood Context

"

6"

12

8"

18

20

"

" 8" City Square The overall site is 22.8 acres and is generally disengaged from the historic fabric of the surrounding Deep Ellum DART neighborhood. Rail 4" 8" Operations 8" The site itself disrupts the overall street grid of the district to the west and blocks vehicular and pedestrian connectivity to 8" 8" the east. 12 4" "

I-30 poses both a constraint and an opportunity, as this major highway serves both a physical impediment to connectivity to the southern neighborhoods, while also providing direct access to the site for regional connectivity and visibility. Canton street serves as the northern border of the site, providing strong connectivity to the west into Deep Ellum, while providing the primary vehicular connections to 2nd Ave. and 1st Ave. to the west, as well as Exposition Park. Hall Street borders the western edge, providing direct connectivity to Baylor Hospital to the north, while also offering an opportunity to split off and become the site’s primary point of entry. Within the development area, few amenities are available for preservation. There are no significant trees, historic monuments, notable features, or any considerations for adaptive reuse of the buildings or infrastructure, other than the sites primary iconic structure, the Communication Tower. This large central element will likely remain in the proposed development scenarios and could be a future opportunity to be a signature element that is easily recognizable and could provide a wide range of possible adaptive options for identity, branding, color and light.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

51


DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Dining/Food

KLYDE WARREN PARK/VISITTHEUSA.COM

• • • • • • • • •

52

Urban Land Institute Dallas/Fort Worth

Food Trucks Casual Dining Cafe / Bistros Permanent vs Transitional Local Markets Regional Sourced Food Culinary Arts Test Kitchens Food Halls


TRUCK YARD/YELP

Creating casual restaurant and bar opportunities with the site, in keeping with the style and aesthetic qualities of Deep Ellum, will be important components of the culture and entertainment aspects of the new development. Restaurants designed for small to medium sized crowds, craft beer, food trucks, gaming, and social interaction will all be considered.

KLYDE WARREN PARK/EXPEDIA.COM

CAFE MELBA/TREAT.COM

The plan emphasizes boutique restaurants, casual dining with open, outdoor seating, and iconic, memorable one to twostory architectural structures that pay homage to the Deep Ellum architectural standards. The materiality of current trends for energy use, lighting, sustainable materials, and best practices for space planning and adaptive reuse will be critical components of these vital community businesses within the proposed green spaces of the district.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

Along with permanent restaurants and dining opportunities, the development will connect food and the urban environment together, seamlessly blending functional outdoor park space with food. Highly customizable interactions and flexible organization of design and pedestrian circulation will ensure the park will be adaptable to a wide range of programming and uses throughout the year.

53


DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Amenities

Gaming Active Recreation Water Features Passive spaces / Relaxation Wellness Programming Shade Trees / Ornamental Trees Open Lawn Pavilions / Stage Site Furnishings Cafe Seating

PEARL BREWERY SAN ANTONIO/OCT.CO

• • • • • • • • • •

54

Urban Land Institute Dallas/Fort Worth


INDEPENDENCE BEER GARDEN/UWISHUNU.COM

Games are universally popular as part of outdoor activities. Activities such as corn hole, bocce ball, pickleball, and even outdoor fitness are all gaining in popularity for younger and older generations alike. These entertainment options and amenities for social interaction go far beyond the traditional passive uses for parks, blending more intentional social opportunities withing the natural fabric of urban green space.

KLYDE WARREN PARK/KITTENSANDPITBULLS.BLOGSPOT.COM

NEW YORK PUBLIC LIBRARY/NY DAILY NEWS

Passive activities such as shared book exchanges, outdoor dining, soft seating, lounges chairs, fire pits, and quiet pocket parks will offer more intimate moments for visitors, tenants and residents needing to find solace in the busy urban environment. These elements are an important counter balance to the more active public spaces, both equally needed. The culture of Deep Ellum lends itself to these “found moments” of respite that are to be discovered and experienced between a few friends, and not designed for larger gatherings.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

Places to sit and gather, whether around food and drinking, happy hours, early morning breakfast, or chef driven dining, the mixeduse development will provide ample opportunities for shade, connections to nature, fresh air, and seasonal color and textures. Amenities such as seating areas, fire pits, pocket parks, and even water features are important elements for the urban environment, especially supporting retailers, office tenants, hotel patrons, and the surrounding residential buildings.

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DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Community Gathering

PACIFIC PLAZA/PARKSFORDOWNTOWNDALLAS.ORG

• • • • • • • • •

56

Urban Land Institute Dallas/Fort Worth

Concerts Movie Night Festivals Art Programs Dog Parks Monthly Events Community Outreach Health and Wellness Fitness


THE RUSTIC DALLAS

Larger public gatherings, such as concerts, would bring additional opportunities for the Deep Ellum public realm. Dedicated green space, designed for larger crowds, would bring an renewed sense of community and offer a dynamic range of activities that aren’t currently achievable within the existing exterior spaces of the surrounding neighborhood. Music, art, food, and culture could be celebrated in larger, more meaningful ways with dedicated, carefully managed, thoughtfully designed open space.

KLYDEWARRENPARK.ORG

TASTE OF ADDISON

Year round events, such as weekend festivals, and daily events, further the connections to the community at both a neighborhood and a regional level. These events, whether highly organized and scheduled, or more organic and spontaneous, breath life into the district and create an urban energy for a more healthy, entertaining, and vibrant experience.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

Central green space, access to fresh air, open space, and dedicated gardens and ornamental plantings offer a connection to the outdoors that is meaningful, both passively and recreationally. An emphasis on health and wellness, as well as intentional views of the natural environment, create a more sustainable and healthy long term development. These open spaces offer both physical and mental respite for the urban environment, and are highly desirable for residents and visitors who will be living and working daily in the district. And don’t forget dogs need places to play too. 57


DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Vehicular Hierarchy - Site Plan Option 1

Collector Road 2-Way Street (80’-100’ ROW) Downtown 2Street Way Street (80'-100'ROW) Downtown 2 Way (80'-100'ROW) Neighborhood (50’-60’ ROW) Neighborhood 2Street WayStreet Street (50'-60'ROW) Neighborhood 2 Way2-Way (50'-60'ROW)

TRACT 2 134,919sf 3.10ac

TRACT 1 40,796sf 0.94ac

TRACT 4 54,263sf 1.25ac

TRACT 5 14,421sf 0.33ac

TRACT 4 54,263sf 1.25ac TRACT 8 94,807sf

TRACT 3 113,673sf 2.61ac

TRACT 7 75,807sf 1.74ac

TRACT 6 112,667sf 2.59ac

OPTION B VEHICULAR OPTION B VEHICULAR HIERARCHY ROW WIDTHS HIERARCHY WITH WITH ROW WIDTHS

58

Urban Land Institute Dallas/Fort Worth

PEDESTRIAN CONNECTION

TRACT 1 40,796sf 0.94ac TRACT 5 14,421sf 0.33ac

TRACT 3 113,673sf 2.61ac

TRACT 2 134,919sf 3.10ac

TRACT 6 112,667sf 2.59ac

TRACT 8 94,807sf

TRACT 7 75,807sf 1.74ac

TRACT 10 106,032sf 2.43ac

TRACT 10 106,032sf 2.43ac


DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Vehicular Hierarchy - Site Plan Option 2

Downtown 2 Way Street (80'-100'ROW) Collector Road 2-Way Street (80’-100’ ROW) Downtown 2 Way Street (80'-100'ROW) Neighborhood 2 Way Street(50’-60’ (50'-60'ROW) Neighborhood 2-Way Street ROW) Neighborhood 2 Way Street (50'-60'ROW)

TRACT 2 134,919sf

TRACT 1 40,796sf

TRACT 1 0.94ac 40,796sf 0.94acCREATIVE OFFICE / RETAIL CREATIVE OFFICE / RETAIL TRACT 5 14,421sf

TRACT 4 54,263sf 1.25ac 6 STORY HOTEL (150 KEYS) REST (4K SF)

0.33ac TRACT 4 1 STORY 54,263sf F&B 5K SF 1.25ac 6 STORY HOTEL (150 KEYS) REST (4K SF)

TRACT 5 14,421sf F&B 0.33ac 6K SF 1 STORY F&B 5K SF

PEDESTRIAN CONNECTION

F&B 6K SF

F&B 6K SF

F&B 6K SF TRACT 8 PARK + RADIO TOWER 2.03 ACRES

TRACT 3 TRACT 3 113,673sf 113,673sf 2.61ac 2.61ac 5 STORY 5 STORY WRAP MF (230 UNITS) WRAP MF (230 UNITS)

TRACT 6 112,667sf 2.59ac 5 STORY WRAP MF (230 UNITS)

3.10ac TRACT 2 2 STORY 134,919sf CREATIVE OFFICE (120K SF) 3.10ac CREATIVE OFFICE / RETAIL 2 STORY CREATIVE OFFICE (120K SF) CREATIVE OFFICE / RETAIL

TRACT 8 PARK + RADIO TOWER 2.03 ACRES HISTORIC GRAIN ELEVATOR

TRACT 7 TECH OFFICE 6-STORY 350K SF (58,000 SF / FLOOR) 1.33 ACRE

TRACT 6 112,667sf 2.59ac 5 STORY WRAP MF (230 UNITS)

HISTORIC GRAIN ELEVATOR

TRACT 7 TECH OFFICE 6-STORY 350K SF (58,000 SF / FLOOR) 1.33 ACRE TRACT 10 106,032sf 2.43ac 10 STORY OFFICE (350K SF)

TRACT 9 RELOCATED POLICE SUBSTATION SINGLE-STORY 121K SF

TRACT 10 106,032sf 2.43ac 10 STORY OFFICE (350K SF)

TRACT 9 RELOCATED POLICE SUBSTATION SINGLE-STORY 121K SF

OPTION D VEHICULAR HIERARCHY ROW WIDTHS OPTION DWITH VEHICULAR

HIERARCHY WITH ROW WIDTHS

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Downtown Two-Way Street (80’ ROW)

Downtown 2 Way Street (80’ ROW)

Source: National Association of City Transportaton Officials https://nacto.org/publication/urban-street-design-guide/streets/downtown-2-way-street/

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Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Public Realm - Neighborhood One-Way Street (60’ ROW)

Neighborhood 2 Way Street (60’ ROW)

Source: National Association of City Transportaton Officials https://nacto.org/publication/urban-street-design-guide/streets/neighborhood-street/

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Financial Pro Forma - Option 1 Assumptions

GROUND LEASE

SITE ACQUISITION

Ground Lease Rent – 2.00% Growth ​

Land Cost - $135.43/SF Average​

Creative Office: $7.88/SF​

Creative Office: $150/SF​

Office: $7.88/SF​

Office: $150/SF​

Office Tower: $17.50/SF​

Office Tower: $350/SF​

Multifamily: $3.00/SF - $3.10/SF​

Multifamily: $80/SF​

Retail: $3.00/SF​

Retail: $50/SF​

Hotel: $3.75/SF​

Hotel: $50/SF​

Rents – 2.50% Growth w/ 3-Year Stabilization​

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Rents – 2.50% Growth w/ 3-Year Stabilization​

Creative Office: $35/SF​

Creative Office: $35/SF​

Office: $37/SF​

Office: $37/SF​

Multifamily Wrap: $2.10/SF/Month​

Multifamily Wrap: $2.10/SF/Month​

Multifamily Tower: $2.25/SF/Month​

Multifamily Tower: $2.25/SF/Month​

Retail: $35/SF​

Retail: $35/SF​

Hotel: $215 ADR

Hotel: $185 ADR

Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Financial Pro Forma - Option 1 Deep Dive GROUND LEASE

SITE ACQUISITION

Creative Office – 120,000 SF​

Creative Office – 120,000 SF​

• • • •

Cost: $352/SF​ IRR: 24.05%​ Exit Cap Rate: 6.25%​ Return on Cost: 8.06%

Office (8) – 140,000 SF​ • • • •

Cost: $407/SF​ IRR: 26.67%​ Exit Cap Rate: 6.25%​ Return on Cost: 8.21%​

Office (10) – 350,000 SF​ • • • •

Cost: $462/SF​ IRR: 19.25%​ Exit Cap Rate: 6.00%​ Return on Cost: 7.20%

• • • •

Cost: $533/SF​ IRR: 17.69%​ Exit Cap Rate: 5.75%​ Return on Cost: 6.94%

Office (8) – 140,000 SF​ • • • •

Cost: $518/SF​ IRR: 23.45%​ Exit Cap Rate: 5.75%​ Return on Cost: 7.47%​

Office (10) – 350,000 SF​ • • • •

Cost: $584/SF​ IRR: 18.10%​ Exit Cap Rate: 5.50%​ Return on Cost: 6.85%

Hotel – 150 Keys​

Hotel – 150 Keys​

• • • •

• • • •

Cost: $188,189/Key​ IRR: 9.69%​ Exit Cap Rate: $8.50%​ Return on Cost: 6.89%​

Cost: $208,754​ IRR: 12.89%​ Exit Cap Rate: 8.00%​ Return on Cost: 8.14%​

Retail – 5,000 SF​

Retail – 5,000 SF​

• • • •

• • • •

Cost: $238/SF​ IRR: 41.14%​ Exit Cap Rate: 7.00%​ Return on Cost: 10.09%

Multifamily Wrap (3) – 230 Units​ • • • •

Cost: $183,527/Unit​ IRR: 15.72%​ Exit Cap Rate: 5.00%​ Return on Cost: 5.73%​

Multifamily Wrap (6) – 230 Units​ • • • •

Cost: 183,493/Unit​ IRR: 15.85%​ Exit Cap Rate: 5.00%​ Return on Cost: 5.74%

Multifamily Tower – 320 Units​ • • • •

Cost: $328,083/Unit​ IRR: 11.68%​ Exit Cap Rate: 4.75%​ Return on Cost: 5.19%

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

Cost: $400/SF​ IRR: 25.18%​ Exit Cap Rate: 6.50%​ Return on Cost: 8.23%​

Multifamily Wrap (3) – 230 Units​ • • • •

Cost: $227,363/Unit​ IRR: 17.06%​ Exit Cap Rate: 4.50%​ Return on Cost: 5.35%​

Multifamily Wrap (6) – 230 Units​ • • • •

Cost: $226,940/Unit​ IRR: 17.21%​ Exit Cap Rate: 4.50%​ Return on Cost: 5.36%

Multifamily Tower – 320 Units​ • • • •

Cost: $349,011/Unit​ IRR: 18.51%​ Exit Cap Rate: 4.25%​ Return on Cost: 4.88%​

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DEEP ELLUM DALLAS SERVICE CENTER Financial Pro Forma - Option 1 Summary

64

GROUND LEASE

SITE ACQUISITION

Capitalized Ground Rent: $107,411,080​

Total Land Cost: $101,215,860​

Tax Revenue: $13,438,003​

Tax Revenue: $16,850,365​

Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Financial Pro Forma - Option 2 Assumptions

GROUND LEASE

SITE ACQUISITION

Ground Lease Rent – 2.00% Growth ​

Land Cost - $159.46/SF Average​

Creative Office: $7.13/SF​

Creative Office: $150/SF​

Office: $4.50/SF - $13.50/SF​

Office: $300/SF - $500/SF​

Multifamily: $2.80/SF​

Multifamily: $80/SF​

Retail: $2.75/SF​

Retail: $50/SF​

Hotel: $3.50/SF​

Hotel: $50/SF​

Rents – 2.50% Growth w/ 3-Year Stabilization​

Rents – 2.50% Growth w/ 3-Year Stabilization​

Creative Office: $35/SF​

Creative Office: $35/SF​

Office: $37/SF​

Office: $37/SF​

Multifamily Wrap: $2.10/SF/Month​

Multifamily Wrap: $2.10/SF/Month​

Retail: $35/SF​

Retail: $35/SF​

Hotel: $215 ADR

Hotel: $185 ADR

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

65


DEEP ELLUM DALLAS SERVICE CENTER Financial Pro Forma - Option 2 Deep Dive

66

GROUND LEASE

SITE ACQUISITION

Creative Office 1 – 36,285 SF​ • Cost: $355/SF​ • IRR: 24.03%​ • Exit Cap Rate: 6.25%​ • Return on Cost: 8.05%

Creative Office 1 – 36,285 SF​ • Cost: $550/SF​ • IRR: 15.48%​ • Exit Cap Rate: 5.75%​ • Return on Cost: 6.72%

Creative Office 2 – 120,000 SF​ • Cost: $355/SF​ • IRR: 24.00%​ • Exit Cap Rate: 6.25%​ • Return on Cost: 8.05%

Creative Office 2 – 120,000 SF​ • Cost: $550/SF​ • IRR: 15.50%​ • Exit Cap Rate: 5.75%​ • Return on Cost: 6.72%

Office (7) – 350,000 SF​ • Cost: $452/SF​ • IRR: 25.83%​ • Exit Cap Rate: 6.00%​ • Return on Cost: 7.57%​

Office (7) – 350,000 SF​ • Cost: $545/SF​ • IRR: 23.63%​ • Exit Cap Rate: 5.50%​ • Return on Cost: 6.98%​

Office (10) – 350,000 SF​ • Cost: $462/SF​ • IRR: 22.41%​ • Exit Cap Rate: 6.00%​ • Return on Cost: 7.47%

Office (10) – 350,000 SF​ • Cost: $567/SF​ • IRR: 20.38%​ • Exit Cap Rate: 5.50%​ • Return on Cost: 6.85%

Hotel – 150 Keys​ • Cost: $188,210/Key​ • IRR: 10.36%​ • Exit Cap Rate: $8.50%​ • Return on Cost: 6.93%​

Hotel – 150 Keys​ • Cost: $208,754​ • IRR: 12.89%​ • Exit Cap Rate: 8.00%​ • Return on Cost: 8.14%​

Retail – 5,000 SF​ • Cost: $238/SF​ • IRR: 44.34%​ • Exit Cap Rate: 7.00%​ • Return on Cost: 10.40%

Retail – 5,000 SF​ • Cost: $400/SF​ • IRR: 25.18%​ • Exit Cap Rate: 6.50%​ • Return on Cost: 8.23%​

Multifamily Wrap (3) – 230 Units​ • Cost: $183,564/Unit​ • IRR: 17.45%​ • Exit Cap Rate: 5.00%​ • Return on Cost: 5.84%​

Multifamily Wrap (3) – 230 Units​ • Cost: $227,363/Unit​ • IRR: 17.06%​ • Exit Cap Rate: 4.50%​ • Return on Cost: 5.35%​

Multifamily Wrap (6) – 230 Units​ • Cost: 183,530/Unit​ • IRR: 17.58%​ • Exit Cap Rate: 5.00%​ • Return on Cost: 5.85%

Multifamily Wrap (6) – 230 Units​ • Cost: $226,940/Unit​ • IRR: 17.21%​ • Exit Cap Rate: 4.50%​ • Return on Cost: 5.36%

Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Financial Pro Forma - Option 2 Summary

GROUND LEASE

SITE ACQUISITION

Capitalized Ground Rent: $122,365,533

Total Land Cost: $115,307,775

Tax Revenue: $14,086,970

Tax Revenue: $17,665,000

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Financial Pro Forma - Asset Classes

Creative Office​

IRR and spread are more competitive and appealing as a ground lease versus land acquisition. ​

Retail ​

Competitive IRR and spread, thus viable asset class on site if a ground lease; however land acquisition does not achieve a competitive return thus would require additional financial assistance through incentive programs.​

Office​

IRR and spread appear competitive asset class for either ground lease or acquisition. ​

Hospitality ​

Low IRR, regardless of ground lease or adjusted land price; therefore would require incentives offered by community or municipality i.e. Chapter380 Agreement or New Market Tax Credit.​

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Urban Land Institute Dallas/Fort Worth

Multifamily ​

Reasonable IRR for core location, however low spread between ROC and Exit Cap, could potentially improve spread by utilizing low income tax credit.


DEEP ELLUM DALLAS SERVICE CENTER Appendices - Notes

1

Including zip codes 75226, 75246, and 75204.

2

Point2Homes. https://www.point2homes.com/US/Neighborhood/TX/Deep-Ellum-Demographics.html.

3

Board Member. Deep Ellum Community Association (DECA). Personal Interview. 19 November 2019.

4

Jim Rogers. President, Deep Ellum Community Association (DECA). Personal Interview. 19 November 2019.

Rosalsky, Greg. NPR. “The Return of Rent Control.” https://www.npr.org/sections/money/2019/03/05/700432258/thereturn-of-rent-control. Swedish Economist Assar Lindbeck called ‘rent control’ “the most efficient technique presently known to destroy a city – except for bombing”. 5

Mankiw, Greg. Greg Mankiw’s Blog. http://gregmankiw.blogspot.com/2009/02/news-flash-economists-agree.html. 93% of economists believe that a “ceiling on rents reduces the quantity and quality of housing available”. 6

7

Board Member. Deep Ellum Community Association (DECA). Personal Interview. 19 November 2019.

8

Jacobs, Jane. The Death and Life of American Cities Great Cities. New York, NY: Random House. 1961. Pp.

City of Dallas. Downtown Dallas 360. (2011). https://downtowndallas360.com/wp-content/uploads/2017/12/8f.-Appendix-Downtown-Dallas-360-Urban-Design-Guidelines-2011.pdf 9

10

City of Dallas. Page 191-192.

11

Gehl, Jan. Life Between Buildings: Using Public Space. New York: Van Nostrand Reinhold. 1987. Print. Pp.

12

Board Member. Deep Ellum Community Association (DECA). Personal Interview. 19 November 2019.

13

Business Owner. Deep Ellum Foundation (DEF). Business Owner Meeting. 13 November 2019.

14

Sean Fitzgerald, Past DECA President. Personal Interview. 28 October 2019.

15

Board Member. Deep Ellum Community Association (DECA). Personal Interview. 19 November 2019.

16

City of Dallas. DowntownDallas360. Page 134.

17

Board Member. Deep Ellum Community Association (DECA). Personal Interview. 19 November 2019.

18

Jessica Burnham. Past Deep Ellum Foundation Executive Director. Personal Interview. 11 November 2019.

TXDOT. Dallas City Center Master Assessment Process (cityMAP). http://www.dallascitymap.com/results.html#home 27 September 2016. Page 113. 19

20

Deep Ellum Foundation. Deep Ellum Road MAP (Draft). 2019. p 5.

21

Smith, Mary. Shared Parking. Urban Land Institute. 2005.

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Appendices - Online Resources

1. Deep Ellum Foundation Logic Model Strategic Goals bokap.it/mtap01 2. Deep Ellum 2019-2025 Strategic Plan bokap.it/mtap02 3. Deep Ellum 2019-2025 PID Map bokap.it/mtap03 4. PD 269 bokap.it/mtap04 5. TXDOT City Map 113 bokap.it/mtap05 6. DART / Patrick Kennedy City Map Overlay bokap.it/mtap06 7. Deep Ellum Infrastructure Priorities bokap.it/mtap07

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Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Contributors/Stakeholders

DEEP ELLUM FOUNDATION • • •

Stephanie Hudiburg Jon Hetzel Jessica Burnham

STAKEHOLDERS • • • • • •

Ian Trumpower Steve Leeke Chuck Hixson Mitchell Fonberg Scott Rohrman Rich Cass

CITY OF DALLAS • • • •

Majed Al-Ghafry Michael Mendoza Arturo Del Castillo Dorcy Clark

DECA • • • • • • • • • • • •

Amber Crimmings (Deep Ellum Art Co) Meri Dahlke (8 Bells) Mike Snider (Allgood Café) Ian Sinnett Rod Hanson Bob Sullivan (Sons of Hermann Hall) Duncan Black Kim Finch (Doublewide) Ian Saint Jim Rogers (DECA Pres.) Dave Hartman Sean Fitzgerald

DART •

Patrick Kennedy

BAYLOR UNIVERSITY MEDICAL CENTER

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Contributors

ULI DALLAS-FORT WORTH CENTER FOR LEADERSHIP CLASS OF 2020 • • • • • • • • • • • • • •

James Adams GC Carriero Britton Church Dana Compton Jason Elms Brian Fitzgerald Paul Freeland Justin Goertz DJ Harrell Jason Haun Will Jones Sarah Landiak Jason Mann Zac McGuire

• • • • • • • • • • • • •

Ciara Nackino Logan ONeal Stuart Page Brooks Powell Jenna Pugliese Susan Rainey Alexis Semach Brad Sicard Michael Tan Bo Trainor Phil Wagner Michael Ware Jonathan Wood

ULI DALLAS-FORT WORTH CFL ALUMNI MENTORS AND STAFF • • • • • • •

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Urban Land Institute Dallas/Fort Worth

Andrew Barnes Jon Hetzel Ryan Davis Tyler Johnson Chris Janson Meaghan Janson Tyler Adams

• • • • • • •

Joe Kidwell Jay Orelup Gloria Salinas Christy Thurston Pam Stein Brandon Brewer Jonathan Ragsdale


DEEP ELLUM DALLAS SERVICE CENTER Notes

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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DEEP ELLUM DALLAS SERVICE CENTER Notes

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Urban Land Institute Dallas/Fort Worth


DEEP ELLUM DALLAS SERVICE CENTER Notes

Deep Ellum Dallas Service Center | Mini Technical Assistance Panel (mTAP)

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Deep Ellum Foundation 2919 Commerce St. No. 548 Dallas, Texas 75226

Urban Land Institute Dallas-Fort Worth 600 N Pearl St. Suite 650 Dallas, Texas 75201


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