Dallas City Council approves $49 million City subsidy to support development of West End Lofts Project

DALLAS -Today, the Dallas City Council approved a $49million incentive package to support the development of the West End Lofts Project, a proposed mixed-use, mixed-income, and transit-oriented development project. The project will be developed on three existing parcelswithin the historic West End addressed as 805 Elm Street, 711 Elm Street, and 211 N. Austin Street within and adjacent to the City Center tax increment financing (TIF) district. The proposed project, led by Sycamore Strategies, LLC,is directly south of the West End DART light rail station and directly north of El Centro (Dallas College).

"This is an exciting project that will convert underutilized/vacanthistoric buildings and surface parking lots into active residential and commercial uses abutting the West End DART light rail station and across the street from El Centro College," said City Councilmember Paul Ridley (District 14), a member of the City Council's Economic Development Committee. CouncilMemberRidley added, "With the reconstruction and expansion of the Kay Bailey Hutchison Convention Center and impactfulprojects such as West End Lofts, we can expect to see significant positive changes to the west side of downtown Dallas over the next several years."

The estimated $103.2million project will include 154 mixed-income apartments comprisedof 56 efficiencies, 25 one-bedroom, 69 two-bedroom, and 4 three-bedroom units to be constructed within the historic 805 Elm Street building and in a new 6-story building to be constructed on theexisting adjacent surface parking lot. Of the 154 apartments, 63(41%) will be income-restrictedand leased solely to households earning at orbelow 30%, 60%, 70%, and 80% area family median income. Additionally, the project will include the development of residential amenities, rehabilitation of approximately 26,462 gross square feet of ground floor retail/commercial space, creation of an approximately 25,751 square foot plaza and promenade (open space), and rehabilitation of approximately 140 parking spaces in the historic711 Elm Streetparking garage.

The project's funding includes $54,224,085 in non-City sources, including equity in the form of low incomehousing tax credits and historic rehabilitation tax credits. The City's incentive packageincludes an amount not to exceed $28,275,676 in City Center TIF District fundingas well as up to $20,724,324 from other economic development funding sources administered by the City's Office of Economic Development, including general obligation bond proceeds from the economic development/housing propositions in the City's 2012 and 2024 bond programs.

"The West End Lofts development is about more than apartments to us. It is a chance to revitalize and transform an area of downtown with a brand new pedestrian plaza, street-level retail, workforce housing and the preservation of two pieces of Dallas history," said Zachary Krochtengel of Sycamore Strategies. "The City of Dallas has been an essential and invaluable partner to us, and we are extremely grateful for their support."

"TheCity's dedication to working with the West End Lofts Project development team is a prime example of how public-private partnerships can bring meaningful development to areas in need of an economic development boost," said Kimberly BizorTolbert, Interim City Manager for the City of Dallas. "This important project will provide much needed affordable housing and ground floor activation within downtown's West End Historic District. Prior to City Council consideration of the City subsidy for the project, the City Center TIF District Board of Directors unanimously recommended the use of City Center TIF District fundingfor this project, with the added conditionthat best efforts bemade to provide a minimum of two square feet per residential unit for pet relief facilities. It is exciting to think of adding housing stock that will beoccupied with individuals, families, and their pets, helping togrow the live-work-play spirit of downtown Dallas".