How Much "Public Financial Contribution" Sylvan Thirty Needs to Be "Feasible"

NewSylvanThirty.jpg
Click to enlarge the latest Sylvan Thirty layout from this morning's briefing docs.
The council's Economic Development Committee's being briefed this morning on two projects familiar to the Friends of Unfair Park -- Wynne/Jackson's redo of the old Dallas High School downtown, which we'll get to shortly, and Sylvan Thirty, which is first up.

The reason the latter's on the agenda, says Karl Zavitkovsky, head of the city's Office Economic Deveopment : Sylvan Thirty needs a small pile of publicly provided dough to work, per the briefing -- not just $3.2 million out of the Fort Worth Avenue TIF District, as we've previously discussed, but another $1.5 by way of a Public/Private Partnership grant. And, on top of that, says this morning's look-see: "The owner is also seeking a future New Markets Tax Credits allocation of about $12 million ($3 million cash value) subject to future review by the Dallas Development Fund Board, allocation, and future City Council approval."

Without all that, the $47.8-million mixed-use development on Sylvan and Fort Worth Avenue just ain't doable.

The TIF money, says the briefing, will go toward "infrastructure improvements (including sidewalks and pedestrian amenities on Fort Worth Avenue) to create a public plaza space in the center of the development, to create an east/west connection through the multi-family building; to leverage affordable housing; and to make the project financially viable." As for the $1.5 mil grant, says the briefing, "The project is not financially viable without this additional funding."

Zavitkovsky -- who says work on Sylvan Thirty should begin in July of this year, with a December 2014 wrap-up date -- just began his break-down for council, whose questions we'll get to in a moment.

Tennell Atkins wants to make sure Sylvan Thirty's affordable housing component -- which will add up to 20-percent of its housing -- isn't stuck in one place in the development. He wants those efficiencies and one-bedroom units spread out throughout the property. Zavitkovsky reassures the council member: That'll happen, you bet. "They are committed to this," he says, "and we will reinforce it in the development contract."

OK, then, Atkins says -- but what about the new market tax credits? Because the project won't move forward without those too, right? Right, says Zavitkovsky. But the application's already in to the Dallas Development Fund.

"And We are in the process of negotiating with tax credit investors," he says. "We have one identified ... and once that gets nailed down the DDF will have a session to approve the tax credit, and that recommendation will come before this committee and council for approval." When? Before council's summer break in June. Because they want to break ground by mid-July.

And with that, the committee votes unanimously to send the deal to the full council.
My Voice Nation Help
20 comments
Sort: Newest | Oldest
West
West

I don't remember the developer talking about affordable housing units when he pitched his project to Western Heights, the residential neighborhood one block to the northwest, and Kessler Park, one block to the south.

Oak Cliff Townie
Oak Cliff Townie

Bob By the time they have the ribbon cutting and after party the movers and shakers that brought this to us will be just a memory because they will be on to moving and shaking somewhere else.

Incubator Coffee Shop ? That is already thousands in the hole  before the doors are open ?

Or an understated Waffle House or Starbucks ? With an already established loyal customer base ?The lack of interest from the Restaurant and Grocery industry with apologies to Cox Farms kind of says DON'T put those here ! 

If I owned the property I would want something that was a Sure Thing so I would be getting a Rent Check every month .

Not this iffy stuff they seem to be pulling out of their hats  now .

 

Bob
Bob

Three years ago $ylvan/30 was going to have a 'green' restaurant.  Two years ago it was going to have a 'gorilla' restaurant and later, a 'hip' restaurant.  Last year it was going to have a 'pop-up' restaurant.  Last summer it was going to have an urban 'farmer's market'.  Now it's going to have an 'incubator' restaurant.  Unfortunately the developer hasn't noticed a great burger bar and grille already exist on the edge of the property and its business plan does not require public assistance to make a profit.

Brian
Brian

Public- Private Partnerships; Capitalism in the eyes of the bureaucrats, corruption in the eyes of everyone else.

RC
RC

So he needs MORE money to build something where two of the major views will be of the back of the building with shrubs. Can't get Trader Joe, Central, Starbucks but instead a organic guy from Duncanville. In other words, it's going to look like the Allen Outlet Mall from the streetwithout any big 'names' inside. This would never have happened at Royal and Preston. Take some dough out of Mayor Mikes $20 Million South Dallas Strategic Fund.

Oak Cliff Townie
Oak Cliff Townie

These are the first Generation Vendors ...The Organic guy was the First signed up tenet.I wonder how they ( BOTH SIDES ) feel about that now ?

HEY YOU, IN THE BACK
HEY YOU, IN THE BACK

Kinda looks like a drawing of the "apartments" on the opening to the 70s sitcom "Good Times".

Titus Groan
Titus Groan

If a private real estate development needs public money to be feasible, then guess what?

It isn't feasible.

Funny how everyone touts the free market, yet scrambles to be first in line to suckle at the public teat.

Anon
Anon

Is my math correct in that they need over 15% of the value of the property in free money to make it viable? Is that $47.8MM what I should be using as the denominator or is there something else that I should look at?

Oak Cliff Townie
Oak Cliff Townie

Maybe Free Money = What they don't spend they keep ?

Back in the day I knew a builder who said he always took his 10 % off the top and set it aside And worked from the 90% like it was the total amount he had to work with.I guess these folks want 15 %.

But now I am starting to wonder if That "QUAINT FRUIT STAND IDEA " is going to fit into what this projects goals really are ?

Anon
Anon

as long as we're just pissing away money, the city should be getting some equity-like returns for their "investment" in this property. 

Holy Sheet
Holy Sheet

Looks like Sylvan 30 is more FEESable than ODH.

Oak Cliff Townie
Oak Cliff Townie

Are all the projects in this area going to seem like a KIDNEY STONE is being passed ?

TB
TB

The more I look at this plan, and the more I understand what Patrick Kennedy's always talking about, the worse I feel about this development. There doesn't seem to be any attempt to integrate the site with the larger streetscape and neighborhood. Rather than being integrated into the area, it's an island that turns utterly inward. It doesn't engage with the outside world at all. What a poor start for the area.

elbueno
elbueno

Agreed. When you really study it, this site plan is plain stupid. Just look at the streets internal to the site!

Ed D.
Ed D.

You'll still be covering shady Dallas real estate deals at The Other Place, right? (Are there ever any Dallas real estate deals that aren't shady?)

Robert Wilonsky
Robert Wilonsky

Same as it ever way, in terms of what I'll cover. Just not where I cover it. Only now I'll have to leg-wrestle Rudy Bush.

Viper
Viper

Keep fighting the good fight and pumpin out the awesome coverage Robby !!

JBone
JBone

I will believe it when I see it. But I am hopeful! 

Jon Daniel
Jon Daniel

That is the $64,000,000 deck park question

Now Trending

Around The Web

From the Vault

 

General

Loading...