City of DallasOffice of Economic Developmentwww.Dallas‐EcoDev.org

April 27, 2010

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Overview• This is a long term investment for the City• Current status ‐

minimal taxes generated from 1661 acre site

• Cost of infrastructure into area is high and would be prohibitive 

for the City to undertake without private development 

commitment• Proposal on table is for creation of partnership where 

– Capital cost financing is provided by private group– Reimbursed in part through existing programs

• Developer can proceed with quality development• City gains

– Potential 'windfall' to general fund of $17+ million annually in

approximately 23 years 

– Opportunity to advance other goals of affordable housing (20%), M/WBE 

hiring for construction work (25%) and stringent urban design standards 

for area

– Opportunity to realize substantial growth while minimizing costs

and risk

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• Project Location

• Project Vision

• Project Orientation

• Project Maps

• Zoning

• Service Delivery Plan

• Financing Strategy

• Next Steps

• Appendix

Table of Contents 

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Project Location

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Project Location Map

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Project Location Map

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Project Vision

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Cypress Waters VisionTo be a planned development comprised of:

• Traditional multi-family and single-family neighborhoods,

• Commercial and retail areas Designed with strict architectural guidelines to ensure quality and excellence emphasizing aesthetics, human comfort and the creation of a sense of place.

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Traditional Neighborhood Development (TND)The Project intends to utilize a comprehensive planning system called Traditional Neighborhood Development to include a variety of housing types and land uses in a defined area including educational facilities, civic buildings and commercial establishments to be located within walking distance of private homes.

A TND is designed to include a network of paths, streets and lanes suitable for pedestrians as well as vehicles which provides residents the option of walking, biking or driving to places within their neighborhood.

Present and future modes of transit are also considered during the planning stages.

Public and private spaces have equal importance.

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Waterfront views from the retail, courtyards, greens and residences (single and multi-family)

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Commercial DesignCommercial buildings are to be designed to be a part of the community, harmonious to their environment and within architectural guidelines to ensure quality and lasting value.

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Project Orientation

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Project Description

• Property– Located at the northeast corner of LBJ/I-635 and S. Beltline Road 5 miles from DFW

Airport and 20 miles from Downtown Dallas

– The property in and around North Lake consists of approximately 1,661 acres, all within the City of Dallas. Of that land area, Billingsley will develop 928 acres of contiguous undeveloped land which will be adjacent to a 362 acre

lake.

• Build Out Goals– 4+ million square feet of Commercial Office Space– 10,000 Multi-Family and Single Family Residential Units with waterfront living with

parks and parkways, plazas, water features, hike and bike trails, playgrounds, sports fields, swimming pools, community centers and workout facilities

– 150,000 SF of Pedestrian Oriented Retail in Dallas – 25,000 Residents and 9,000 Jobs on site.

• Experienced Developer– Billingsley Company has numerous office, industrial, retail, single-family and multi-

family developments

– Active projects include International Business Park, One Arts Plaza, Austin Ranch, Hemingway Court, Austin Waters, and Gramercy on the Park

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• In 2004, Billingsley purchased 360 acres from TXU at Northlake– During the zoning process, Coppell ISD and the City of Coppell filed condemnation

claims on this land– City of Coppell lost the case due to lack of jurisdiction and CISD was awarded the right

to condemn; appeals filed• In 2007/08, Billingsley bought an additional 715 acres• In late 2008, as part of the settlement process

– Billingsley agreed to sell 122 acres to CISD which plans for up to 3 school sites and one 20 acre administrative campus

– City of Coppell purchased 558 acres– TXU (now Energy Future Holdings and Luminent) retains 55 acres (which includes a

power plant), 7 drill sites, transmission lines and easements• Power plant can stay for up to 10 years; however TXU has given written notice it intends

to begin removing it over the next 3 years. At closing, the lake

size will be 360 acres• City of Coppell is responsible for lowering the lake level

– Billingsley agreed to a cap of 10,000 residential units• During this period, the developer, the Cities of Dallas and Coppell have worked

to establish an efficient utility delivery plan• In June 2009, an MMD was established on 947 acres

– Permits multiple financing options for public infrastructure/municipal service costs

Project History

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Build Out Statistics

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9,500 units averaging871 Sq. Ft. per unit

500 units averaging3,060 Sq. Ft. per unit

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Build Out Statistics 

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Project Maps

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Existing Conditions Map

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Ownership Map

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Conceptual Master Plan Map 

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* All maps are conceptual and may change in response to specific development plans

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MMD Map

Cypress Waters Current Land OwnershipOctober 7, 2009

Property Owner Within MMDBillingsley Company (MMD) 947.6City of Coppell 0.0Coppell ISD 0.0Energy Future Holdings/TXU 0.0Total 947.6

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MMD AreaMMD Area

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Zoning

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Zoning Map

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• Current

Zoning

• MU‐3 in  PD 741:  

187.86 Acres• TH‐3 in PD 741:  

154.72 Acres

• Requested

Zoning : Amend & Expand PD 741 as follows:

– Include expanded Billingsley and CISD owned property –

1019 Acres– Expand MU‐3 Base Zoning– Include 10,000 Dwelling Unit Cap per Settlement Agreement– Add additional main uses such as Single Family, Data Center and Light 

Manufacturing among others– Amend various restrictions to create a more Urban and Pedestrian

friendly environment such as:• Incorporation of non standard public street cross sections and lighting;  

Setback Reductions; Lot Coverage Increased by 10%; Various Parking 

Reductions

Rezoning Requested

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Rezoning Requested– Eliminate the PD requirements for any Residential Adjacency Review 

(RAR), Residential Proximity Slope, and Urban Form Setback

• Site is contiguous and there are no existing developments within

the 

boundaries

– Enhance landscaping requirements to utilize lake as storm detention 

plus storm water reuse for irrigation.

– Modify tree replacement requirements to provide flexibility to 

perform tree replacement as development occurs

– Require a Tree Survey prior to the issuance of any building or grading 

permit

– Require a Development  and Landscape Plan before the issuance of

a 

building permit

• Timeline– Zoning Application

October 6, 2009– CPC Meeting

March 18, 2010– City Council Meeting

May 26, 2010

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Ownership Recap

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CYPRESS WATERS

CURRENT LAND OWNERSHIP WITHIN THE CITY OF DALLAS

November 3, 2009

PROPERTY OWNERCURRENT TOTAL

LAND AREA

TOTAL LAND AREA UPON

PLANT REMEDIATION &

FINAL CISD PURCHASE WITHIN MMD

CURRENT ZONING REQUEST

BILLINGSLEY COMPANY 947.6 927.6 947.6 917.3

CITY OF COPPELL 412.9 557.5 0.0 0.0

COPPELL INDEPENDENT SCHOOL DISTRICT 102.0 122.0 0.0 102.0

ENERGY FUTURE HOLDINGS / TXU 199.3 54.7 0.0 0.0

TOTAL 1661.8 1661.8 947.6 1019.3

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Service Delivery Plan

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•

Major infrastructure will include approximately:—

5 miles of water transmission improvements—

9 miles of sanitary sewer improvements—

9 miles of primary and 18 miles of secondary road improvements• Police

—

DPD will provide basic services through existing facilities. —

As development grows, a permanent police presence can be provided on site 

using the joint DPD/DFR public safety facility. Developer will contribute 

approximately 2.5 acres.  At some intermediate point in time, the owner may 

furnish space until there is sufficient development to support the joint facility.

—

Cost reductions possible through private security force in the early years • Fire‐Rescue:

—

DFD will provide basic services to the site through existing facilities. —

As development grows, could utilize joint DPD/DFR public safety facility

City Service Delivery 

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City Service Delivery• Library: 

—

A City of Dallas branch library site is optional for this area based on 

the

anticipated population

at full build‐out.—

However, City is exploring alternative opportunities to augment library 

services such as

through partnership with Coppell ISD.• Parks:

—

Extensive green space on site along the lake edge and power line

easements, 

accessible to the public 

—

Multiple parks, hike and bike trails, and vehicular and pedestrian connections  

through‐out development will be available to the public for use

—

Over 122 acres of school land  (CISD)—

Any maintenance over and above basic city services will be provided by 

Developer or MMD. 

• Sanitation:—

Multi‐family and Commercial solid waste and recycling services to be 

rendered via private vendor contract.  Such services to be provided in 

accordance with city ordinance.

—

City will coordinate solid waste and recycling services for Single‐family 

residences within the area.  Only

500 single‐family residential units are 

planned at full build‐out.

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Road Maps

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* All maps are conceptual and may change in response to specific development plans

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Water System Map

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* All maps are conceptual and may change in response to specific development plans

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Wastewater System Map

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* All maps are conceptual and may change in response to specific development plans

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Infrastructure Cost Summary

*City’s utility participation funded through Water department’s 

capital fund up to 30% as development creates demand.

** Costs are represented in 2009 dollars.

*

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Infrastructure Cost Summary

* Costs are represented in 2009 dollars.

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Financing Strategy

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Financing Strategy

• Share costs between City, developer, and  future growth

• All up‐front funding ($217.2m) will be  provided by developer with reimbursement 

from City and/or TIF/MMD • Cost share:

– Developer 

$133.8m (61.6%) – TIF/MMD 

$  68.9m (31.7%) 

– DWU capital fund  $  14.6m (6.7%) 

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* Costs are represented in 2009 dollars

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Financing Strategy

• Several financing/transitioning partners were  identified/developed:

– Developer Billingsley – City of Dallas’

Water Capital Funds

– Municipal Management District (MMD)– Tax Increment Financing Zone (MMD/TIF)– City of Coppell

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Financing Strategy

• These partnerships provide:– Short term provision of utilities 

– Taxing authority needed for bonding– Funding through Chapter 49 participation– Funding for non‐infrastructure city services– Up front financing for the water, sewer and roads 

through direct funding and the issuance of bonds 

– Mechanisms to reimburse developer and provide  revenue stream for operating agreements, long 

term participation/maintenance

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Financing Strategy ‐

Phasing

• Immediate provision of utilities are being coordinated  through the Cities of Dallas and Coppell and TRA

• For all major infrastructure improvements, developer  is providing up front financing

• Development of infrastructure will be driven by area  build out

• Reimbursements to developer will be handled by:– Coordination of Water Department bond financings– Generation of TIF increment– MMD Fees     

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Projected TIF Increment Schedule 

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Tax Distribution Graph

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• Initial tax increment from real property taxes will be split 

between the City and the MMD/TIF.  • The taxing authorities will retain franchise, Business Personal 

Property, sales and the base tax revenue (non City/County 

Entities)

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

2010

2013

2016

2019

2022

2025

2028

2031

2034

2037

2040

2043

2046

2049

Tax increment to TIF fund

Real Property Taxes retained

Franchise Taxes retained

BPP taxes retained

Sales Taxes retained

Base tax revenue retained

2034: End of City's TIF Participation:

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Tax Revenue Over TIF TermTaxing 

Jurisdiction

Total Tax Revenue 

Less TIF 

Contribution

City of Dallas $  302,180,979

County 81,593,806

Coppell ISD 568,588,029

Carrollton, Farmer’s Branch ISD 48,011,780

Dallas Co Community College 40,406,979

Parkland 114,802,826

DART 32,633,903

Total $1,188,218,302

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Next Steps

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Next Steps

Action

Date

• MMD:  Affirm Board Members

December 2009

• PD Zoning:  CPC Meeting

March 18th

, 2010• PD Zoning *:  City Council Vote

May 26th

, 2010• TIF Agreement City Council Vote

October 2010

• MMD Ad Valorem Tax Election

November 2010

• MMD General Obligation Bond Election

November 2010

• Begin Utility Design / Engineering

Estimated Nov 2010

• Begin Utility Construction

Estimated 2011

* Zoning includes finalization and signing of Master Development

Agreement. 

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Appendix

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• PD Ordinance 

‐

Effective with zoning approval– Parties: City of Dallas and Developer– Purpose: Establishes zoning and development requirements for project

• Master Development Agreement

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Effective on or before zoning approval– Parties: City of Dallas, Developer and MMD– Purpose:

• Establishes obligations relating to water, wastewater, roadways and public service infrastructure and provision 

of services• Sets up cost sharing relationships• Imposes targets and triggers for timing of commencement/completion of infrastructure• Ties development obligations and benefits to TIRZ Agreement

• TIF Agreement

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Effective when passed by City Council– Parties: City of Dallas, Developer and MMD– Purpose:

• Establishes Tax Increment Reinvestment Zone• Sets up Tax Increment Fund and obligates City to provide/assign agreed percentage of TIF Revenue to MMD to 

use to reimburse Developer for infrastructure costs incurred and/or to use as funding/security source for 

TIRZ/MMD Bonds• Makes MMD and development subject to TIF requirements including required levels of affordable housing, 

minimum minority hiring requirements, etc.

• MMD Development/Financing Agreement ‐

Effective when passed by City Council– Parties: City of Dallas and MMD– Purpose:

• Establishes general parameters for MMD assessment based (TIF reimbursed) bond financing

Major Legal Documents 

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Tax Distribution Summary

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