COUNCIL CHAMBER 160339 February 24, 2016 WHEREAS, the City recognizes the importance of its role in local economic development initiatives and programs; and WHEREAS, the City has established Tax Increment Financing Reinvestment Zone Number Eleven, (Downtown Connection TIF District or District) and established a Board of Directors for the District to promote development or redevelopment in the Downtown Connection area pursuant to Ordinance No. 26020, authorized by the City Council on June 8, 2005, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, as amended; and WHEREAS, on August 29, 2005, City Council authorized the Project Plan and Reinvestment Zone Financing Plan for the Downtown Connection TIF District by Ordinance No. 26096; and WHEREAS, the Tax Increment Financing Act specifies that the governing body of a city shall submit an annual report on the financial status of the district to the Chief Executive Officer of each taxing unit that levies taxes on real property in a reinvestment zone, and a copy of the report shall be forwarded to the State Comptroller; and WHEREAS, on January 14, 2016, the Downtown Connection TIF District Board of Directors passed a motion accepting the FY 2015 Annual Report for Tax Increment Financing Reinvestment Zone Number Eleven and recommending approval of same by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS: Section 1. That the FY 2015 Annual Report for Tax Increment Financing Reinvestment Zone Number Eleven, (Downtown Connection TIF District), City of Dallas, Texas, as of September 30, 2015, a copy of which is attached hereto (Exhibit A), is hereby accepted. Section 2. That the City Manager is hereby authorized to submit the FY 2015 Annual Report for Tax Increment Financing Reinvestment Zone Number Eleven, to the Chief Executive Officer of each taxing jurisdiction that levies taxes on real property in the District; and the State Comptroller, as required by state law. Section 3. That this resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Dallas, and it is accordingly so resolved. ADDp,)\?f:P p’( FEi3 2 4 2016 fi City Secretary 160339 Exhibit A Downtown Connection TIF District FY 2015 Annual Report B City of Dallas Office of Economic Development 1500 ManIla Street, 2CN • Dallas, Texas 75201 (214) 670-1685 http://www.dallas-ecodevorq/ October 1, 2014 to September 30, 2015 oxcim D tT 0 0 CD C) 0 -,0 H p Cl) CD C) CD Cl) 3 CD N) N 0 zCD 03 -ICD m CD -I, CD C C), C Cl) CD •00 160339 Exhibit A Downtown Connection TIF District FY 2015 Annual Report Table of Contents Mission Statement 4 District Accomplishments 4 Value and Increment Revenue Summary 10 Development Goals and Objectives 10 Year-End Summary of Meetings 14 Budget and Spending Status 14 MIWBE Participation 22 FY 2015 Work Program 23 District Financials 24 3 160339 Exhibit A Downtown Connection TIE District FY 2015 Annual Report Mission Statement The mission of the Downtown Connection Tax Increment Financing District is to create a fund for public capital improvements in the core of Downtown essential for development of key spaces and buildings as well as focusing on catalys,t projects to create a greater density and critical mass of development within the Main Street core area. The Downtown Connection TIF District was initiated by petition, pursuant to Section 311.005 (a)(5), Texas Tax Code through the sponsorship of the Downtown Improvement District and the Uptown Improvement District. The Downtown Connection TIF District took effect on June 8, 2005, per Ordinance No. 26020 and is scheduled to terminate on December 31, 2035 (including collections of the 2035 increment in calendar year 2036 or when the budget of $231.6 million (2006 dollars) has been collected. District Accomplishments Downtown redevelopment momentum continued during FY 2015. Projects were either approved or construction continued or completed during the fiscal year. Projects Completed or Continuing Construction During FY 2015 Hall Arts Center. Construction of the 18-story, 500,000 square foot office building with 20,000 square feet of restaurant space and an adjacent half-acre public open space is scheduled for completion in early 2015. LTV Tower — 1600 Pacific Avenue. Conversion of the historic building into a 171 room Hilton Garden Inn and 186 luxury rental apartments began April 2014. Construction completed during the 2015 calendar year. 4 160339 Exhibit A Downtown Connection TIF District FY 2015 Annual Report Statler/Library. Interior demolition and environmental remediation began in the Statler building June 2014 and continued throughout the fiscal year. Upon completion in 2017, the Statler and Library redevelopment project will produce 229 residential units, 164 hotel rooms, ballrooms, meeting rooms, restaurant, theater and retail space. The Olympic — 1401 Elm Street. Interior demolition and environmental remediation in the building began July 2014. Upon completion the renovated building will house 512 residential units, retail, restaurant and office space, as well as an observation deck on the 501 floor of the building. 5 _____ 160339 Exhibit A Downtown Connection TIE District EY 2015 Annual Report Projects Approved andlor Started Construction During FY 2015 1712 Commerce. Conversion of a vacant office building and adjoining surface parking lot into 244 hotel rooms (121 room Residence Inn and 123 room AC Hotel by Marriott) and approximately 16,428 square feet of ground floor retail space. A parking garage will be constructed on the existing surface parking lot providing approximately 360 guest/public parking spaces for the hotel. The total project cost is $54.8M. Expected completion is July 2017. Tower Petroleum and Corrigan Tower Buildings. Phased conversion two vacant office buildings. Phase I - Tower Petroleum will be converted into a boutique hotel (Saint Elm Hotel) with approximately 150 guestrooms and a ground level restaurant. Levels 1 through 4 of the Corrigan tower will be renovated as part of Phase I to provide three retail/restaurant spaces on the ground floor, as well as a small motor court for the .,flnuIq project. Phase II includes conversion of Levels 5-17 of the Corrigan Tower to residential units. Total project cost for both phases is $102.4M. Construction for Phase I of the project began during the fiscal year and is expected to complete December 2020. Phase II is expected to complete construction in June of 2022. Mayflower Building — 411 N. Akard. Conversion of a vacant office building into 214 residential units with the apartments located on floors 4 through 9 of the building 156 parking spaces constructed on the 2nd and 3rd floors of the building for exclusive use of apartment tenants. The project will also include approximately 19,860 square feet of ground floor retail space. Total project cost is $56.IM. The project’s construction began during the fiscal year and expected completion is June 2017. 6 160339 Exhibit A Downtown Connection TIF District FY 2015 Annual Report Map of Projects within the Downtown Connection TF District Rito-Carlton Resdences II 1900 McKinney Avenue (Hanover) Granite-Gables Downtown Connection TIF District Project Location Map Legend TIF Funded Projects B ctty of DalI Non-TIF Funded Projects Office of Economic Development December 2011 Downtown ConnecitonTiF Bounde Souree: 5onomic Oevelpmeot flepanmeo11ceo RedeeIopmen1 floior 7 160339 Exhibit A Downtown Connection TIF District FY 2015 Annual_Report Downtown Connection TIE District Projects1 Projects Within TIF District Utilizing TIF Funding calendar Yr Project Location complete Status Units! SF2 Approx. Value3 TIF Investment4 1v Quarter 17 additional hotel Stoneleigh Hotel 2927 Maple Completed $19635390. $2,500,000 2008 rooms 1800 Main Street 4th Quarter 366 res. units; Mercantile Block Completed $56,349,950 $58,000,000 1808 Main Street 2008 33,770 sf retail Santa Fe Lofts IV 4ih Quarter 1033 Young Street Completed 193 hotel rooms $13,055,380 $4,296,264 (Aloft Hotel) 2009 Dallas Arts District l Quarter garage renovations! 2301 Ross Avenue Completed $10,500,490 $2,000,000 Garage 2010 updates 498,270sf 1600 Pacific 4th Quarter 1600 Pacific Avenue Completed renovated office Avenue 2013 $5,925,000 $12,870,000 space 1810 Commerce 1st Quarter 203 res. units; Continental Building Completed $23,750,000 $18,305,700 Street 2013 5,871 sf retail Atmos Complex Harwood and 1 Quarter Completed 107 res. units $2,200,000 $3,250,000 Phase I Wood Streets 2013 Joule Hotel Expansion 45 32 hotel rooms; Main and Quarter (Amended) 1530 Main Completed 24,700sf retail; $107,222,000 Commerce Streets 2013 $23,852,953 Street 9,221 sf office Atmos Complex Harwood and 4th Quarter 123 res. units; 9,500 Completed $25,000,000 $11,750,000 Phase II Wood Streets 2014 sf retail 4th Quarter Under 430,000 sf office; Hall Arts Center 2301 Ross Avenue $130,000,000 $5,000,000 2015 Construction 30,000sf retail 1600 Pacific 4th Quarter Under 171 hotel rooms; LTV Building $67,520,108 $17,500,000 Avenue 2015 Construction 186 res. units 512 res units 4th Quarter Under The Olympic 1401 Elm Street 71K sf retail 2016 Construction $151,283,000 $50,000,000 71K sf office 229 res units 1914 Commerce 4th Quarter Under Statler!Library 164 hotel rooms $175,299,650 $46,500,000 1954 Commerce 2017 Construction 47,621 sf retail 2nd 400 N. Akard Under 215 res units Mayflower Building Quarter $56,109,085 $10,000,000 Street Construction 13,700sf retail 2017 1712 Commerce 3rd Quarter Under 244 hotel rooms 1712 Commerce $52,934,700 $10,500,000 Street 2017 Construction 16,428sf retail 4th Quarter Under 150 hotel rooms Saint Elm Hotel 1907 Elm Street $68,623,079 $10,300,000 2017 Construction 6,174 sf retail 2nd 1900 St.