[This transcript was generated automatically from audio using AI and hasn't been reviewed by a person -- it can contain mistakes, including plausible-sounding sentences that were never actually said. Treat it as a starting point, not a verbatim record.]

[0:06] Good evening.
[0:11] Good evening, everybody. I'm to a special workshop of the Highland Village City Council, planning a zoning commission. Today, as Thursday, June 30, the meeting is called to order at 6 p.m., let the record show all council members are in attendance with the exception of councilman, Kicks Miller and Councilman, Feester, Councilman Feester, didn't notify he would be running a little late tonight. So I've called the meeting order for City Council, Mr. Skinner, would you like to call the meeting order for P&Z?
[0:36] Yes, sir, I will. I'll call the meeting to order for the Planning and Zoning Commission and
[0:39] please let the record show that all commissioners are present.
[0:44] Thank you, sir. Before we get started, I just want to make a few announcements. The workshop
[0:49] for tonight is informational only. There will be no action taken by City Council or the Planning
[0:54] and Zoning Commission this evening. With that, I ask everyone to be respectful of others during
[0:59] tonight's workshop. Please, no yelling, clapping, or similar disruptions will be allowed.
[1:03] Seating is limited and we do have overflow in the training room where you can watch on a big screen.
[1:09] And tonight's meeting is also being streamed through halivolage.org-hvtv frontier channel 43.
[1:17] And the city's YouTube channel YouTube.com slash halivolage tx.
[1:22] The meeting is also being recorded and will be available for on-demand viewing on the city's website and the YouTube channel.
[1:28] We provided the community opportunity to submit questions for the presenter and for the
[1:32] city to address.
[1:34] There were many good questions and we appreciate the thought and effort put into submitting
[1:37] these questions.
[1:38] The city will retain all questions, some of which are best explored and answered if an application
[1:42] is made.
[1:44] The majority of our community's questions for the city center on a few specific things that
[1:47] I'd like to address right now.
[1:49] We are nearly at the halfway point of the Arvillage Arvision project.
[1:52] Community input is an important part of the project, which is why the open house and online engagement
[1:57] opportunities took place at the beginning of the project.
[2:01] Several other pieces of input are included in the project.
[2:04] McAdams and city staff are completing meetings with the business and property owners in the
[2:08] opportunity areas and along the 407 corridor to hear what they envisioned for their properties
[2:13] in the short and long term.
[2:16] A statically valid survey of our residents is concluding this month.
[2:19] The market analysis of the opportunity areas is complete and was part of the information provided in community input activities.
[2:26] All of this information, the community input findings, the property owner input,
[2:30] resident survey and market analysis will be used by Macadams to develop the proposed plans.
[2:35] Council, City staff, and the community will have the opportunity to view those plans and provide feedback before they are finalized.
[2:41] TechStop manages the FM407 and FM2499 roadways.
[2:46] TechStop's planning documents currently show traffic has not met their capacity triggers.
[2:51] FM407 is at ultimate build.
[2:53] TechStop's planning for FM407 traffic accounted for approximately 35,000 cars and is currently
[2:59] at 25,000.
[3:02] FM2499 face 4, which is not funded at this time, has a two-lane expansion that will be
[3:06] constructed sometime in the future.
[3:08] at 524-99 is designed for 43,000 cars and is currently at approximately 30,000.
[3:15] Flower Mount is hired in engineering consultant to design dual-left turn lanes and all directions
[3:20] at the intersection of 24-99 and 407.
[3:23] They're currently in the survey and site plan phase, and 30% of plans are expected for
[3:28] you late this summer.
[3:29] And as a side note, I met with Mayor's Gilmore and Francis Morning for Breakfast and one
[3:33] of things we talked about was an intersection and Mayor Francis said they expect to be able
[3:38] to start construction on those turn lanes next year, or I think you said 2024.
[3:43] City Water and sewer systems were designed to provide for our max build-out population of
[3:47] about 18,000 people.
[3:49] The city will work with future developments to ensure there is capacity in the city water
[3:54] and wastewater systems, and if they require upgrades to the various portions of our systems.
[3:59] Today's workshop with PNZ and Council is for the owner of the shops at Highland Village
[4:03] to present to us a proposal for their property.
[4:06] As the property owner, they have the right just as any of you do for your properties to
[4:11] present a proposal for consideration by the city, PNZ and Council.
[4:15] No formal submission or application has been made to the city.
[4:18] No formal action, approval or denial will take place at this workshop.
[4:22] With that, I item three on the agenda is to receive a presentation and discuss possible
[4:27] development of property at the shop's pile of village located at 1701 Shoal Creek.
[4:35] Thank you, Mayor.
[4:37] Council members, planning is heading.
[4:40] We really appreciate you all coming out today and spending your time on a Thursday evening right for how they we can to listen to us.
[4:48] We've been working on this for quite a while.
[4:50] We started meeting with people back in October with an HOA meeting and several of you and several of the planning and zoning.
[4:56] to start gathering thoughts and ideas about what we were anticipating and thinking about at the shops.
[5:02] And so that's what we're here today because we have evolved every time.
[5:06] And so now we have a vision for what we anticipate moving forward.
[5:11] So I am Josh Poga, I should have started with that with Pope shopping centers.
[5:15] We are the manager of the shops at Halloween Village.
[5:18] We took over in January 2020, thankfully right before COVID.
[5:22] And so we had some ideas about what we thought was going to happen with the shots in 2020, 2021,
[5:29] and a lot of that could put on hold, but that's where we also took the time during that
[5:34] pause in the retail world in front of the world at large to really work on our vision for
[5:39] what we thought for the future.
[5:41] So, I'll start and then we'll have several other team members that will make parts of the
[5:45] presentation today and so I think the presentation will last 20 to 30 minutes long and then we'll
[5:51] open up for Q and A for everybody to ask any question they want, we're here to be as open as possible and take feedback because as you know as maybe we have additional adjustments and I mean we just want to hear what you think of what others think and and we did get a copy of some of those questions from the public so that we can answer some of those and a lot of them as you address for more for the city than for us but I appreciate your taking care of some of those.
[6:17] So, first of all, I took a look at where we've been and where we're going just on the retail side,
[6:25] because that's my background. I focus on retail. I've done a couple of mixed use projects that have
[6:30] residential in them, but I have not been responsible for the residential. Multi-family is not my expertise.
[6:35] I have 25 years of history in the retail world in the life-salt center specifically. So, when you look
[6:42] The companies that have closed, the retailers have closed over the last five years at the
[6:48] shops at Holland Village, you'll notice the trend in the working company, Justice and
[6:53] Taylor, Charlie, Janey Jack, Dilias, Children's Place, Jimberry, Coerne Creek, Joe Zabak,
[7:00] 100% of those are fashion tenants, they sell clothes.
[7:04] And so when I started in the business back in the late 90s,
[7:07] The focus was on the clothing industry, and frankly, until probably about 2012, clothing,
[7:14] dominated the life-suffering industry, but then e-commerce, I mean, started expanding like
[7:19] crazy, people were able to buy clothing online, and a lot of these retailers are all line
[7:23] retailers that have not succeeded.
[7:25] Some don't even exist anymore.
[7:27] I mean, like Cold War Creek, and don't think Tilias existed all anymore, and New York
[7:31] and Company Antealer has a handful of stores out there, but their shelves, what they used
[7:36] to be. So then also looked at what the retail today is. And Sip and Saver is a great example
[7:43] of that. And that's a restaurant that you'll may know as under construction now. We'll
[7:49] open up this fall. And it's far into table. It's a restaurant. And the restaurants at how
[7:54] I'm Village are very important for our future. When we first developed the Lifestyle Center
[7:59] concept in late 90s, we're actually my dad and his partner developed in late 80s. It was about
[8:04] experience for the consumer.
[8:06] And so even at that early date, they focus on restaurants because restaurants create culture.
[8:11] We sit around a table and we talk to each other at dinner.
[8:14] It's a way to catch up with friends.
[8:16] And as restaurants have progressed over time, he think about the late 80s was Applebee's
[8:21] Ruby Tuesdays.
[8:22] Then you had the 90s and 2000s, which may have been the PF chains and the bravo, I mean
[8:29] that kind of stuff.
[8:30] I mean, chains that were very successful in high quality.
[8:33] But in this sort of falling out of favor in what is more dominant now, or the shift of
[8:38] in concepts, individual concepts that can cater to their individual environment, their
[8:42] individual community, rather than trying to be the same thing to everybody.
[8:45] There are still extremely successful chain restaurants, but we've tended to focus on the more
[8:51] likely driven concepts of late.
[8:54] So these are the concepts that have opened over the last five years.
[8:57] A seven-saver, I mean opening up this fall, brass tap, Lambo's, Lamarah, Madison's
[9:03] Lawrence, neon elephant, Buckle, Kendra Scott, Buff City, Slope, Tangerine, Slime.
[9:08] You'll notice another trend, only one of those is a fashion tint.
[9:12] All the rest of those are services there are, I mean, Kendra Scott being a jeweler, Lambo's,
[9:20] and brass tap and seven-saver being the restaurants.
[9:23] So it's about food and beverage, it's about services, it's about experience.
[9:26] the stuff that you can't readily get online, and so that's our competition in
[9:31] a day is what people can do online because the ease of access of getting good
[9:35] online.
[9:38] So, just real quick, the numbers on left are hard to see, but this is a
[9:42] traffic, five-year traffic pattern for the Shops of Allen Village. So, in 2018,
[9:47] so obviously prior to COVID, we were at about four and a half million visitors a year.
[9:52] In 2019, we've dropped a little bit, maybe 4.4 million, 2020, obviously devastating
[9:57] with COVID, we dropped down to about 3.2 million. In 2021, we got back to over 4 million.
[10:04] So we're heading in the right direction. Traffic is coming back, but we are still below where we were in 2018 and 19.
[10:11] So traffic has diminished over time at the shops at Howard Village.
[10:17] So this is a slide that I wanted
[10:18] to take you through because this is why we focus on the evolution of our properties. We're constantly
[10:23] looking at how to evolve our properties, make sure they stay relevant today's society.
[10:27] So in this property up in 2007, Ecommerce made up 3.4% of total retail sales.
[10:34] Today, that's four times, 13.2.
[10:37] So it's not just that the Ecommerce has grown, it's grown exponentially.
[10:42] So now it makes up 13.2% of total retail sales.
[10:45] And I made sure I use 211 numbers because 20-20 numbers were actually much higher than that.
[10:49] But that's because of COVID.
[10:52] And so Ecommerce sales came back down in 2021.
[10:55] 2007, the first iPhone debuted, now we're on the iPhone 13.
[11:01] And so what that matters, why that matters, is that prior to the iPhone, there was no
[11:06] e-commerce on your handheld.
[11:08] Now that's the fastest growing segment is buying people buying stuff on their iPhones.
[11:13] And so the dramatic change that the iPhone has made over the last 14 years and continues to
[11:17] make is exceptional to our business.
[11:19] Amazon sales were 14.8 billion last year, 469 billion, 30 times the size of where they were in 2007.
[11:30] So that just shows once again what's happened.
[11:32] Now the last two relate to the theater specifically.
[11:36] Netflix debuted in 2007.
[11:38] Today they have 220 million subscribers.
[11:41] The U.S. maybe box office in 2007 in real numbers,
[11:45] not inflated adjusted was 9.6 billion.
[11:47] the US movie box office in 2020 or 2021 because the movie theaters were still shut down
[11:54] for the most part for $4.5 billion. Now they're expected to go to $7 billion in 2022.
[12:00] And so that's actually obviously a much bigger increase. But in 2019 the number was 11.6 billion.
[12:08] So we're down about 40% from where the movie box office was in 2019. So I've told the story
[12:15] And so there's said anything that's private, but when we took over the property, we knew
[12:20] that the lease with AMC was coming out at the end of the year, end of 2022.
[12:24] And so we talked to the owner's A-Dubbing, and we said, look, AMC is not going to last.
[12:29] If they want to stay in the property, they're going to ask for a substantial reduction in rent.
[12:33] And if we want the best modern-movieter, they're not going to be willing to invest, and
[12:37] we'd have to put millions of dollars into it.
[12:39] And so I said, we need to start anticipating, and I say, I was really my team.
[12:44] It was a vision group that came together and said,
[12:46] we need to look at what we could do on the site
[12:50] if AMC closes.
[12:52] And so that's where the first germ of the idea
[12:54] with the multi-camel came up.
[12:56] So flash forward, and when COVID hit,
[13:00] the movie theater devastated, as you can imagine.
[13:02] I mean, they just couldn't open.
[13:03] There was no film coming out to them.
[13:05] And at that point, we just were certain AMC was going to close.
[13:10] Now, about a year ago, a little over a year ago,
[13:12] The whole Robinhood thing happened online where a community basically bought up the stock prices
[13:19] VAMC and GameStop and drove their stock price somewhere around $5 a share to $55 a share.
[13:26] And every landlord in the company were joys because suddenly AMC had capital that they could pay
[13:30] the rent and and survive the downturn.
[13:34] So they have steadily been doing better and I'll tell you like, and this is more anecdotal
[13:39] maybe more in the weeks than you want to know.
[13:41] but Bond, James Bond, last October was a first movie
[13:44] that really started saving the movie theater industry again.
[13:47] People started going back to the movie theater's last fall.
[13:49] James Bond did fairly well, but really we call
[13:51] Spider-Man, it's the movie that saved the industry.
[13:54] Because Spider-Man opened in December of 2021 and killed it.
[13:58] And so our movie theaters actually did better
[14:00] in December of 2019, or 2021, then they did December of 2019
[14:05] across the country.
[14:07] But January, February, March, will really
[14:09] months again because there was no new film that was coming out and no new good film coming out.
[14:14] But then April, Dr. Strange, I mean May, June, we've had some really good film with Top Gun,
[14:19] Jurassic Park, I mean Thor comes out next week. I mean so it's the the comic book industry,
[14:25] but I mean like it's like our summer is looking really positive. But then you can mark on a
[14:30] encounter because there's not a lot of good releases that are coming up in September, October, November.
[14:34] And December, there's a handful of good films coming out, so it's just right in the way that we're doing with the movie theater industry.
[14:41] I will tell you that since we originally said, okay, AMC is not going to be able to stay,
[14:47] because we didn't think that they'd financially be solved in.
[14:51] We have started working and it turned from an idea where we started negotiating with them and saying,
[14:56] okay, this is something that we think we can work through to now.
[15:00] Now, we're at the point where we have a handshake with them. So they actually want to stay in the property. Now, we are having to take a large financial hit in order to keep them the property to reduce or rent to stay in the property. But we think we have a deal for the long term.
[15:15] So that affects what we present, because when we first started looking at this back in October,
[15:21] or actually we've looked at it before October, but presented in October, we thought that the MAMC would go away.
[15:26] So now we start looking at it, okay, what happens and what can we design to evolve the center, but to keep the MAMC in place?
[15:34] So, the other thing I want to look at is just some of the questions I've been, I've had, or what about what's going on elsewhere?
[15:43] What's the competition in the market?
[15:45] And to ask Ravi, our property manager,
[15:47] Joan and manager, to take a look and offer suggestions
[15:50] of what else is going on.
[15:52] And some of these may be familiar to you,
[15:53] some may be in the drawing board.
[15:55] But all of these are mixed use projects that are happening
[15:57] in this rounding area.
[15:59] All of them, opening restaurants, retail,
[16:02] residential, some with hotels, some with all of this.
[16:06] Mixing uses, because that's
[16:07] what the evolution of the life cell center has become.
[16:11] When the original developer developed, the shops of Allen village, they were intelligent
[16:15] to put office in the property, but a lot of our projects now have hotels and animal
[16:21] decampling.
[16:22] And so that's just the evolution of the lifestyle center over time.
[16:26] So these are just some of the projects that are either existing and offer competition.
[16:30] I mean, I was talking about one gentleman today who was talking about the restaurants that
[16:33] lakeside doing more than double, but our restaurants do it our project.
[16:37] and a lot of that is attributed to the experience that they've created with the constant
[16:41] traffic from all the residential in the area.
[16:45] So another thing that I've been asked about is just the view that the Shops of Holland village
[16:52] is as an quaint small project for just the Holland village community and the reality is
[17:01] it's got a much wider draw than just Holland village.
[17:04] And that should be appreciated because the fact is that that draws a lot of people in a lot of
[17:11] tax dollars from outside of Holland Village into the city of Holland Village.
[17:15] And so when you look at these numbers, about 40% of our traffic comes with them three mile radius,
[17:21] and 60% comes from outside that three mile radius.
[17:25] So a majority of our customers come from outside the three mile radius of the project.
[17:31] So, with all that being said, let me think.
[17:39] Yeah, so I think I've covered everything that I wanted to cover, but with all that being said,
[17:43] it's one thing to hear from me.
[17:44] I've been on the project for a couple of years.
[17:46] I've been working on the project and visioning this.
[17:49] But we wanted to bring Sean Chattless.
[17:52] And Sean is with A, W, and A, W is the pension fund manager that oversees the ownership of asset.
[17:59] So he's a one that I talked to on a regular basis about what the vision for the center should be and where the
[18:06] leasing should go and what kind of deals we can make and all that kind of stuff.
[18:09] So versus hearing it just for me, I wanted to bring Sean and introduce himself and to talk about AW in the
[18:15] project.
[18:16] So, John.
[18:22] Thanks all.
[18:24] First, thanks everyone for the time today again.
[18:27] You know, I go Josh's comments there.
[18:30] This asset is really important to us.
[18:32] You know, my name is Sean Chalos.
[18:35] I work for AW Capital, and we own this shopping center.
[18:42] Specifically, you know, I think it goes without mentioning, you know, this is a big asset.
[18:48] You know, where we each year spend millions of dollars to operate, truly with the partnership
[18:53] of the City Council, shops at how in the village that make this happen, and we do appreciate
[19:00] business and support of the shops over these years.
[19:05] We bought this center back in 2014 on behalf of a pension fund, and since that time we've spent
[19:14] additional tens of millions of dollars to track and retain high quality tenants that deliver
[19:21] the vision that Josh has mentioned.
[19:23] I've had fortunate experience of working on the asset for the majority of that time, and I can speak that, you know, it has had its ups and downs, you know, I think COVID and the pandemic really sort of highlighted the reasons why we need to make a pivot and as Josh mentioned, you know, I think we're looking at this collaboratively with, you know, the city and the community at large to try to better serve them.
[19:50] So, it's a job and responsibility to take very seriously.
[19:54] The stakes are very high and ultimately for our client and our investor, you know,
[20:00] we're very focused on delivering, you know, high quality, function and property.
[20:05] That is future proof, and that's really the focus of this meeting today.
[20:11] You know, there's, you know, the rest of the slides will go over a little bit more detail on that,
[20:16] But, you know, this is part of the first time you might have heard of my company, A.W.
[20:20] So I thought I'd use the time now to briefly give an overview of our portfolio and our experience.
[20:29] A.W. is a global real estate asset manager.
[20:33] We have a global network across essentially three different hubs here in Europe, Asia and North America.
[20:42] We work with hundreds of clients, mainly large institutions, looking to invested real estate across
[20:49] the country.
[20:50] And it really across the globe.
[20:52] I embossed them based and for this client, they're actually bossed based as well.
[20:59] But when I heard there's a workshop in a working session here,
[21:02] I definitely want to make sure I about opportunity to speak in front of you all.
[21:07] In total, it's close to $100 billion of assets.
[21:10] We are one of the biggest real estate investors in the whole world and we have over 40 years of experience
[21:18] and you don't gain 40 years of experience managing that amount of money without making
[21:24] not just the right decisions to invest but being proactive to pivot and deliver results for the clients.
[21:33] So we've been very fortunate to deliver that performance.
[21:37] It's again something we take very seriously and we're very focused on the future to retain that.
[21:44] Just a little bit of a composition of the $94 billion dollars.
[21:50] You know, what we do is a bread and butter are core investments.
[21:54] Those are investments that we see as holding for over 10 years.
[21:59] These are long-term commitments with communities.
[22:03] These are hand-hand decisions to figure out the best real estate value we can deliver.
[22:12] And that is a partnership with our investors and local communities and product.
[22:17] Again, something we take very seriously on our commitments.
[22:22] In terms of overall sort of product types,
[22:27] We are very, very much a global player.
[22:32] We invest in prototypes across spectrums and risks.
[22:37] These are high quality shopping centers, office buildings,
[22:41] industrial sites, senior living facilities across the country
[22:45] and globe.
[22:48] This is just an excerpt of visuals to help demonstrate the quality.
[22:56] specific to North America, you know, we have over $40 billion of assets.
[23:03] To Josh's expertise in the retail, you know, we partner with managers such as Josh and his team
[23:10] to operate these shopping centers.
[23:13] We have in total for retail, 12.8, 12.7 million square feet, which is about $5 billion of assets.
[23:23] specific in Texas across all of our assets is close to four billion, which a lot of it
[23:30] is in the DFW area.
[23:34] So we absolutely bring a lot of expertise to operating these shopping centers.
[23:41] We bring a lot of breadth and expertise in managing across shopping across all product types.
[23:47] That includes mixed developments and Josh's right to point out that we are seeing
[23:53] actually in a global level, the desire to move to mixed use
[23:57] developments, the desire to facilitate living, working, and
[24:02] shopping in a very cohesive way, really strong trends that
[24:08] we need to be thinking of in a future proofing mindset,
[24:14] back to the slide about sort of our risk spectrum.
[24:17] You know, the shops at how new village are a core asset for us
[24:21] is a core pension fund looking for stability of the asset.
[24:26] As you can imagine during COVID, when the shopping center was being shut down,
[24:33] stores, you know, we're telling employees to go home and we'll see what happens in a couple of weeks or months.
[24:40] Very concerning time to be a real estate operator.
[24:43] I'm very proud to say that was Josh's team and myself.
[24:47] We work with almost every single tenant of the shopping center to provide relief and make sure that they kept the doors open when we came back to the business.
[24:59] I think that's the success we've seen in 2021 and in 2022 and just how vibrant the community is around here.
[25:07] It's been a really awesome to see everyone pitching in and helping the community at large.
[25:14] So going to the next slide, just in our investment process,
[25:20] we, with our experience, we see a lot of deals.
[25:25] We are very selective in our risk,
[25:28] and we are very selective in funding capital.
[25:32] For each deal that we see about 10% goes through our screening
[25:35] process as investable ideas.
[25:38] You know, shops at Hollywood Village was an adjustable idea for us.
[25:43] I'm proud of that.
[25:44] You know, we love the shops.
[25:46] We love what we're doing at the center.
[25:49] We absolutely have had tough times.
[25:52] But we see a really bright future and what we can do here.
[25:56] Our client does not like to accept a lot of risk.
[26:00] You know, these are supposed to be stable assets.
[26:03] When you're talking about transformational changes
[26:06] This is Josh mentioned about the theaters and changes to the retail landscape.
[26:13] We need to be thinking about holistically future-proofing the assets.
[26:18] That's what we do.
[26:19] That's why we work with a team here to figure that out.
[26:23] That's why we work with the cities in the future visions, one of the priorities to figure
[26:27] that out.
[26:29] And it's something we take very seriously for our screening process and putting additional
[26:33] money to work.
[26:34] Just to be clear, this would be a very big event for us to move forward with the ideas
[26:40] that we're laying out here today.
[26:43] It would be tensed millions of dollars in additional money we've been putting to work to
[26:48] build this development, including new jobs, tax-city funding, from tax revenues, and the
[26:56] total impact that came in, I think, would be helpful from a cohesiveness to the Shopping
[27:02] center. You know, based on our experience in based on our studies, you know, we would not be here today.
[27:08] Unless we thought that was true.
[27:11] On top of our screen process, too, we also have been working with a number of multi-family developers to evaluate this proposal.
[27:21] And totals almost ten different multi-family developers.
[27:24] and we let a screening process to evaluate what we thought based on the quality of the product,
[27:30] based on the pipeline of deals based on track record, who was the right party to be working with.
[27:37] We have selected a pricidium, which Mark is represented here, and he's going to go over the next couple slides,
[27:45] where we are in that process.
[27:47] Again, thank you guys for your time.
[28:00] Good evening, Mayor.
[28:01] City Council members, Chairman Skinner and PNZ members.
[28:08] Thank you so much for having us here tonight.
[28:10] We know this is contentious.
[28:12] We got a nice crowd here to support our development.
[28:16] I think I probably should have went before Sean,
[28:20] because our numbers are going to look at the door
[28:22] compared to the numbers you're doing.
[28:24] But I'm Mark Farrell.
[28:26] I'm the President of Development for the Presidium Group.
[28:29] A proceeding group is close to 20 years old, it's a Texas-based company with corporate headquarters in Dallas and in Austin.
[28:40] We have over 2 billion dollars under assets, growing every day, 400 employees, 80 assets, over 13,000 apartments, and we have four large master plan communities in Austin.
[29:01] This kind of gives you an idea of our footprint.
[29:05] You can see we're in Florida, you see Jacksonville, we're also in Tampa.
[29:11] We've acquired one site, we have four sites on a contract, up in Atlanta, Portland, Maine.
[29:16] We've got all the Texas covered, Santa Fe, and Phoenix, you can see we have a pipeline
[29:22] at close to 10,000 units.
[29:25] But
[29:29] what I wanted to do, let me just step back,
[29:33] Percidium, we were pretty much a company
[29:36] doing acquisition and rehabs, and we acquired
[29:39] about 20,000 apartments, and probably five years ago,
[29:45] we kind of flipped the platform, because the acquisition
[29:48] was getting more expensive, and it made more sense
[29:50] to build and to buy something old that's over price,
[29:54] and then try to fix up and hope to sell it.
[29:57] Well, I joined the company three and a half years.
[30:01] I partnered with the owners in Florida. That's how we got in Jacksonville. And we hit it. We hit a home run. We did a great job. I've been in the business since 87 developed over 10,000, probably close to 15,000 apartments. We had a very successful development there. They asked me to come out here and join the company. And since then, we've been quite busy. I mean, we've already developed 20 from last three and a half years, about 20 years.
[30:31] We have about 25 under construction and we'll probably close on another 2,000 by the end of the year.
[30:38] Provided construction costs and interest rates don't screw everything out.
[30:42] But that's where we're going.
[30:44] When I came to the company, I just said if my name's going to be on it, it'd better be good.
[30:51] And so I started with working to start branding our apartments.
[30:55] So, everything we do has pricidium, blank, pricidium, town center, pricidium, hills, tree,
[31:02] pricidium, chase hill, pricidium, frisco, whatever it is, we're going to put our name, front
[31:07] and center there.
[31:09] So, people know who did it, and if it's bad, they're going to know who did it.
[31:14] And if it's good, they're going to know who did it.
[31:16] And our thought is, if we do a real good job, we're going to get more investors, more
[31:20] lenders, and be more successful.
[31:23] So that's my goal, that's my direction to our team, is to make the best product out there.
[31:30] So when we look at a site and every site is different, every market's different, every demographic is different.
[31:36] But what we do is I bring my team, the architects and engineers, ID, interior designers, and we canvas the market.
[31:46] we do a five, like a five-mile ring and let's look at the competitive set and let's make
[31:52] it better.
[31:54] And that's what we do.
[31:56] It's a lot easier developing when you're the best in the market as opposed to coming
[32:02] into the middle and that's what we're going to do and that's our thoughts if we're lucky enough
[32:08] if we're able to work something out that we will build without question the nicest apartment
[32:15] in this area. Hands down. Here it is. My name is on it. It's going to be the best.
[32:24] So, what
[32:24] I wanted to do is bring some slides of some product that we've done. And this will
[32:30] be similar to what we would propose. It shows you in a minute area. This is in Florida.
[32:36] This is the Jacksonville deal that I got associated with Percidium. And you can see the double
[32:42] side of fireplace. The trellis has plexi up there. See through so you can sit out there in the rain.
[32:49] The zero edge pool.
[32:53] This is another project in Jacksonville. Again, you can see the zero
[32:58] edge pool, the modern design.
[33:02] This is one of the club room spaces that we have. You can see
[33:05] we have the pool tables, the shuffleboards. You can't see everything up there, but there's a bar
[33:10] that leads out to a second story balcony porch.
[33:14] We typically, in this case here, we won't have it,
[33:18] but we typically like to have at least a 18 foot
[33:21] and depth 30 foot wide balcony that comes down
[33:24] into the pool area.
[33:26] We like to blow out the gyms.
[33:28] Minimal 2000 square feet, in this case here,
[33:30] it's a two story.
[33:32] And we think this will all this I can't do.
[33:35] This is an easy way to lease a unit.
[33:37] People think it's finally going to get in shape.
[33:38] I'm finally going to be able to work out and people like CNS and they don't have to join
[33:44] a club.
[33:45] But this has all the modern equipment, we're spending at least $150,000 on equipment.
[33:52] And whatever the latest ingredient is, we tell the team, buy it.
[33:57] This shows a passive courtyard.
[34:00] So a lot of times we would have this in the development that we're proposing, we have
[34:05] two courtyard.
[34:05] When we have a wrap product with a garage, you're wrapping the garage with units, and then it offers some opportunities to have courtyards.
[34:17] A lot of times you have two courtyards or three courtyards.
[34:20] Well, the product that we're proposing would have two courtyards.
[34:24] We have an active courtyard, which has the pool, which has the cabanas, which has a zero-edge pool.
[34:30] We have the fire pits, we have ping pong,
[34:38] and the passive courtyard would be more like this.
[34:42] And this would be something similar that we would have in our second courtyard.
[34:47] And you can see there's hammocks, there's gathering spots, place the outdoors where you can work.
[34:54] You can see how this project's in Austin, how we landscape the garage, again, to soften it.
[35:07] This is down in this is Chase Hill, this is down in San Antonio.
[35:13] We're probably 75% least up. This is the clubhouse.
[35:16] I mean, this is as good as yet. You can see it's a two-level pool.
[35:22] There's a pool area at the bottom.
[35:24] But this is the type of quality because there was an apartment that had a pool that I've never seen before.
[35:35] And I told our landscape architect, make it better.
[35:38] This is what we got.
[35:40] We were over budget, but I mean, it's stunning.
[35:43] But that's the type of stuff we do make it better.
[35:47] He jumbo sized it.
[35:50] That's looking over a lock in terror that we're sitting on a hill.
[35:55] Hold number one, and we were looking down the fairway.
[35:59] This is right in Frisco.
[36:01] This is right up the street here near the soccer stadium.
[36:07] This is an interesting site about 370 units.
[36:10] It's a city block.
[36:11] They required us to have three different facades.
[36:15] This has three courtyards.
[36:17] This is going to be stunning when it's done, but again,
[36:20] that fiscal area has wonderful apartments.
[36:24] High level, we said, make it better.
[36:29] Here's our pool area.
[36:31] It looks like something out of Vegas.
[36:34] But that's one of our courtyards.
[36:36] But again, that's what we would plan.
[36:38] The quality that we would bring to the neighborhood.
[36:41] I know there's concerns talking about apartments.
[36:44] Well, yeah, they are apartments, but they're different.
[36:46] They're not the apartments that we grew up in.
[36:49] These are the apartments my four kids are living in now, and they're enjoying this.
[36:58] So we'll talk about the design, what we're proposing next.
[37:07] Before we do that, just some thoughts, some benefits to the community, and we're having
[37:13] this conversation with some of the largest mall owners in the country, we're probably going
[37:19] strike a deal in Maine with a national developer to repurpose a JCPenney, then also a
[37:30] Sears could be a four-phase project. We're talking to a group and DC about telling
[37:36] something. These centers, these small lifestyle centers, if they were not developed with
[37:46] apartments, they're bringing apartments in.
[37:50] This is an incredible turbo charge to these centers.
[37:55] We expect the residents that are living there to make 80,000
[37:58] in above.
[38:00] There'll be people making $300,400,000.
[38:03] That's who we expect living here.
[38:06] And they're going to bring their wallets.
[38:08] They eat three meals a day out.
[38:10] They don't cook.
[38:12] So, we think, you know, if I'm a retailer in the shops, I'm like, oh my God, how better
[38:21] could it be?
[38:21] We're talking about getting 60% of the people from three miles out.
[38:25] We're going to bring people and they're going to live on site.
[38:29] Are you kidding me?
[38:31] They're going to walk to this shops.
[38:34] They're not going to drive cars, they're not going to generate any traffic coming to the
[38:38] shops.
[38:38] Excuse me.
[38:39] So, we think it's a wonderful advantage there.
[38:44] And that increases the viability of the tenants.
[38:47] Okay, we've heard in our last community meeting,
[38:51] you know, when are you going to get better tenants?
[38:52] And where are the restaurants?
[38:54] And this and that.
[38:55] This type of stuff does that.
[38:57] This transforms the center.
[39:00] You have 280 apartments there.
[39:02] luxury apartments with 25 to 42-year-olds living there that are spending money.
[39:13] Yeah, I think I want to come here.
[39:17] Because they're going out in stakes and they're drinking expensive wines and things like that.
[39:25] I mean, the conditions, we all know the conditions in the market.
[39:29] I mean, the housing market is nuts.
[39:32] I mean, expensive. There's no product out there.
[39:34] If there is the house for sale, you got 20 offers on them.
[39:40] So what do they do?
[39:42] What are these young professionals do?
[39:45] Well, they go to apartments.
[39:46] That's why you see all the apartments being built.
[39:48] And they're all filled.
[39:50] And they're being absorbed twice the expected velocity.
[39:56] So these young professionals, the places to live.
[40:03] In addition, I mean there will be some economic benefit for the city.
[40:07] I mean, with a traditional revenue that they're spent at the centers, they're going to have
[40:12] more sales tax.
[40:13] They're going to pay more goods, which have sales tax.
[40:17] And it's stabilization.
[40:18] We're going to be somewhere around 1.4 million dollars annually, and add the long taxes.
[40:29] Then we get to the stereotypes.
[40:31] We hear it constantly.
[40:35] These are my kids that are living here.
[40:37] These are kids, young professionals, making six figures.
[40:40] I mean, that's who's living here.
[40:42] I mean, this isn't, we heard this is affordable housing,
[40:46] HUD housing, this is anything but that.
[40:50] I mean, this housing, members in the audience would live here,
[40:55] the diets would live here.
[40:57] I live in one down in Austin.
[41:01] So, I think that stereotype, I mean, for getting people
[41:04] that can't afford a house to live in here,
[41:07] and it might be a time.
[41:08] It's a lifestyle choice.
[41:10] I mean, the amenities that we have, the clubhouses that we're building, I mean, this
[41:15] will have a minimum 10,000 square feet.
[41:18] It'll have a clubroom, leasing room.
[41:21] Clubroom will have the pool tables and the shuffleboards and the arcade games and the pack
[41:25] ban.
[41:26] We'll have co-work space.
[41:28] How you have 1,500 square feet.
[41:30] We'll have conference rooms.
[41:33] Large ones, small ones.
[41:35] We'll have podcasts rooms.
[41:36] with a soundproofing of people who want to do a podcast,
[41:41] will have the exercise room.
[41:43] I mean, this is what we're providing.
[41:48] So people like that lifestyle.
[41:50] And the people that are downsizing,
[41:52] I'm 63, so to be 64, I have friends that are downsizing.
[41:56] They're looking to travel.
[41:58] They're running apartments in different cities
[42:00] so they can visit grandkids.
[42:03] And that's happening.
[42:05] People here in the community here are being one of downsides, get the equity out of their house.
[42:10] Have a nice place to lift, shut the doors, they go, still live in Highland Village, and then they can travel.
[42:18] Crime.
[42:20] Again,
[42:23] while we require background checks and everyone, we're going to have a courtesy officer.
[42:30] One of the Highland Village police officers we will ask, give them an apartment.
[42:36] And then we just don't tolerate just like anything, you know, people respect what you
[42:41] inspect.
[42:42] We're not going to put up with any nonsense.
[42:44] I don't want it.
[42:45] You all don't want it.
[42:47] It just makes it for it.
[42:49] It's just harder to manage when you have problem people.
[42:52] But these are young professionals.
[42:54] These are all employing.
[42:57] Security, we'll have state of the art.
[42:59] I mean, with the garages, we'll be, the we gated.
[43:02] certainly well lit, we'll have cameras in our entrances,
[43:08] and we asked the Highland Village
[43:10] Police Department to give us the 911 calls generated from Montana, about the park, the
[43:18] apartments here. And what I did is, we did, we extrapolated the number of bedrooms there,
[43:28] and we represented one person per bedroom. So we probably were conservative, probably understated
[43:33] that, and then we use that number based on 17,000 people,
[43:40] and they represent less than one
[43:41] percent of the calls. So in regards to 911 calls, I mean departments are generating
[43:48] any more than the general public. But again, it's the quality of the people that we're
[43:55] looking to live here.
[44:01] Getting into the design up on the screen, in the center of the screen,
[44:07] You can see the AMC theater, and the first time we presented this, it was a two phase thinking
[44:16] that the AMC was not going to be here.
[44:21] So we've adjusted the plan and cut the density in half because I know that was a concern,
[44:28] where it's a single phase in 280 units and to the right in the dark black, that's the apartment on the right and you can see in the middle of that area kind of the hash lines there that's the parking garage and you can see the garage we've wrapped the garage with units or you're not going to see the garage, okay?
[44:54] And you can see there's two court yards there in their good size.
[45:00] And right now we have parking lots, and now we're going to bring some green space into that area.
[45:06] And you can see there's an entrance, kind of north and south.
[45:11] And up above you can see what the average size is 848 units, 280 units.
[45:16] It's going to be four levels.
[45:19] And what we did on the left-hand side is kind of required parking on the retail there.
[45:25] It's a 110-spaces that theater for 50, the residential's fort.
[45:29] So 981, and what we're providing is 956, but this plan does not include snuffers, so it would
[45:38] be in kind of compliance in that regard.
[45:45] Here's a visual, and this is looking south, and you can see the building, one, what I would
[45:53] call the passive courtyard, and you can see the neighbor, it's to the right.
[46:00] You can see the garage in the middle.
[46:01] It's enclosed, so you're not going to see into the garage.
[46:06] This is looking further west on the back side.
[46:09] You can see in the white box at the AMC.
[46:13] We're doing this for scale.
[46:15] I mean, just to kind of give you this.
[46:16] And sometimes it's hard to visualize how big these are,
[46:18] but just to kind of give it some scale.
[46:23] What we did here is we actually
[46:25] dropped our renderings into, say, Google Earth.
[46:29] So these are the actual trees in
[46:37] the view.
[46:39] with the trees and I know there's a big concern and I understand the concern to the
[46:48] North or residents of the North but you can see the oak trees I mean it's pretty
[46:52] full and the beauty about oak trees they don't lose their leaves they're they're
[46:56] quite dirty but they don't lose their leaves and that's just kind of a further shot
[47:02] and this just kind of helps you too you know just the height of the building you're
[47:06] pretty much the same height as the AMC.
[47:13] And one thing we wanted to present here, again,
[47:16] there's questions about the concern of the view
[47:20] from the back of the house's and vice versa.
[47:23] So what we did is we got a drone, and at those three
[47:26] points, A, B, and C, and starting from A, we said,
[47:30] OK, what is that view at the second floor, third,
[47:33] four, and four, four?
[47:36] So that's the second floor day.
[47:38] That's the tree.
[47:39] coverage, that's third floor, that's the fourth floor.
[47:47] Here's B, second, third, fourth and
[47:54] second, third and fourth.
[48:03] So with that, I just want to say, I know there's
[48:08] concerns about apartments, I get it, I've heard it,
[48:11] understand it. But I think this is something we'll be proud of. I mean, like I said,
[48:19] my name is not going to be on this unless this is quality. And in light of the discussions
[48:26] that are had, I'm going to make sure it's pretty damn good. Because I'm not going to go in
[48:31] front of you all and say, it's not that good. Well, if we turn it over, we wanted to have a traffic
[48:36] study, it camely horned head. I want to introduce Jonathan Kirby. Thank you very much for your time.
[48:50] Good evening. I'm Jonathan Kirby with Kimley Horn, a vice of engineer. So just wanted to briefly
[48:55] go over the traffic study that was performed for this. As you can see here, the traffic counts were
[49:01] collected in November of 2021. Important to note it was while schools were in session and you have the
[49:09] study area for the intersections, the intersections along the village Parkway, Justin Road,
[49:15] Chinchap will, and obviously the intersection of village Parkway and Justin.
[49:23] Mary, you kind of stole my thunder with this one at the start, talking about the proposed improvements
[49:27] for village Parkway and Justin Road.
[49:31] So I'll be brief on this, but yes, dual left turn lanes, it all intersections.
[49:36] they will also have to retime the signal with all of that, so the signal timing, meaning the time the light is green, yellow and red for all phases will also be looked at and changed with these.
[49:53] Again, you went into this, the 30% plans are set to be finalized, I think, in July, with construction anticipated to start in 2024.
[50:05] So, if we hit the ground running, go full steam ahead, mark correctly if I'm wrong, I don't think we're delivering units before 2024.
[50:13] So, we are very confident to say that based on the schedule that we've been provided by text.
[50:20] And by flower mount, that the improvements would be constructed before we delivered units.
[50:30] So, I wanted to just put this graph up there that shows the existing traffic volumes that we had at the study and intersections.
[50:43] And we have an AMP hour, the morning, and a PMP hour, and what we do is we sit out there for this project.
[50:50] We actually sat out there all day.
[50:52] Normally we just do a three hour window in the morning and a three hour window in the evening, but we were there all day.
[50:57] And the AMP peak hour was between eight and nine AM.
[51:03] That was the highest volume traffic that we saw.
[51:05] The PM peak hour was between five and six PM.
[51:09] The PM peak hour, as you can see here, it's the gray.
[51:13] The AM is the orange, I guess.
[51:18] The PM peak hour was the highest volume.
[51:21] So that's what we're focusing on with this graph.
[51:24] that's by far the most volume for these study
[51:27] intersections.
[51:32] So this is our trip generation.
[51:34] So what we do in our traffic study,
[51:38] we get the existing counts that we got in November.
[51:40] I went through that.
[51:42] Then the industry standard is to go to the ITE Manual,
[51:46] the Institute of Transportation Engineers.
[51:49] And we calculate our proposed trips,
[51:52] what our proposed project,
[51:54] trip generation would be based on the industry standard for whatever that land use is in that
[52:01] project. So what you see here on the left hand side is the existing condition, am and orange,
[52:10] and PM, and gray, peak hour trips generated. So that's what's being generated by the site today.
[52:17] And then on the right side, that is the proposed trip generation. So you'll see that in the
[52:24] PMP power, we have an increase in trips over that hour of six trips per day and in the
[52:33] AMP power, it's 96 trips additional per day.
[52:43] This is a graphic that shows the trip distribution, so this is based on the counts that we
[52:48] have and based on our industry experience and industry standards of where these trips are
[52:54] coming from.
[52:56] I'll briefly go through this, but it's really just more of a point for everyone to see.
[53:01] You know, we kind of have it green, yellow, red of where the most trips are coming from.
[53:08] So you'll see, as expected, what's bound on Justin Road, the most trips from the site,
[53:15] Chen Chappell, generates the least trips to the site.
[53:22] This slide represents the peak hour volume increase at the study intersections based on the proposed development.
[53:32] So what that means is the total number of trips that are there today in existing conditions.
[53:37] What is the percent increase at those studying intersections based on the chip generations that I went over a minute ago?
[53:47] So as you'll see, it is less than 1% at most intersections.
[53:53] It is 1% at the most of the study there is.
[54:02] Then we have level of service.
[54:05] Level of service is an industry standard term used to decide if a intersection or if a roadway
[54:13] is operating at acceptable delay times, it's the definition.
[54:20] Kind of like in a school right D equals degree,
[54:22] I think we've all heard that before, D is the acceptable level of service.
[54:26] So if you're at A, B, C, or D, you're considered acceptable.
[54:30] If you're at E or F, F is the lowest, then you are considered not acceptable level of service.
[54:37] This chart shows existing conditions, so you'll see that the village parkway,
[54:42] And Justin wrote intersection is currently operating at a level of service of E and AM, that's why there's two letters there.
[54:51] So left side is AM, right side is PM, so it's a level of service E in the AM and F in the PM, which is why the project is going on on the intersection improvements are happening.
[55:07] This graph shows what the level of service will be at those intersections with the build-out of our project in addition to the project that is being done at the intersection of Justin Road and Village Parkway.
[55:26] So, you'll see that what was a level of service of E in the AM and AF in the PM at just
[55:33] in Rotten Village Parkway is now a level of service of D in the AM and D in the PM, which
[55:40] is considered an acceptable level of service.
[55:46] And that is the end of the presentation.
[55:47] Thank you.
[55:52] All right.
[55:53] I appreciate your patience and so now we open the floor to any questions you have.
[55:58] I mean, I'm here today to answer the retake questions, and obviously my compatriots are able to answer the residential and traffic or anything else you'll have.
[56:07] So, do we want to start with P&Z questions first?
[56:12] Do we do?
[56:16] I do.
[56:18] And it actually was about the traffic.
[56:22] And you might want to pull the act.
[56:25] If you don't mind, can you pull the slide up
[56:28] that showed the 1% because I made them misunderstood
[56:34] with that right there?
[56:37] So that's the peak hour volume increase.
[56:39] You proposed the proposed development.
[56:42] But in an earlier slide for the AM,
[56:45] I thought you said it would be a 100 additional trip.
[56:49] So what from $2.96, the $3.00, which is $1.00.
[56:53] So $30 or $4.00?
[56:54] If I didn't mention this, my apologies.
[56:57] I meant to, this is based on the peak hour,
[57:01] which was the PM that five to six window.
[57:05] Oh, just the PM was so, yes, so if you go.
[57:08] So it was the six, the increased by six.
[57:15] Yeah, that went there.
[57:16] Right, right, yes, I don't.
[57:18] have the numbers memorized, so I don't want to over commit here, but as I recall the AM
[57:26] max increase was a 5% increase.
[57:31] 5% based on that slide you just showed, because that again.
[57:35] Now that's based on the existing traffic volumes.
[57:38] That's not an increase from off of our site.
[57:41] That is all the cars that are driving through these study intersections, what's the percentage
[57:46] increase that we're adding to those intersections, not percentage increase cutting it out of the
[57:51] site.
[57:52] If the development went forward 5% in the AM, that's what you're saying.
[57:57] Yeah, that will be in our traffic study that we will submit if we make an application
[58:02] and move forward, so that number will be out in the open, that's what I recall it being.
[58:12] Okay, that answers that question and I had an additional question based on the
[58:17] apartments. If the average is 848, 848 square feet, what would, and this probably is more
[58:27] from Mr. Pope. But what would be the, what is the expected rent structure of that?
[58:38] The question was, what is the rents going to be? What we anticipate, we haven't finalized
[58:44] a unit mix on this, but I would say we're probably going to have 70% one bedrooms and 30%
[58:49] two bedrooms. The blended rent, and we'll have various sizes, especially with a, he
[58:57] start having angles around the parking garage as you have some unique. So we'll have probably
[59:01] 12 different floor plans. But the average will be the rents will be at least $2,000.
[59:09] We'll have one bedroom up to $2,000 and the two bedrooms probably close to $3,000. So we'll have
[59:17] $2,000.
[59:19] And so I'm assuming when you say this is more for young professionals, retirees, that's
[59:26] kind of where you're getting enough to make sure that price point is more suited for
[59:32] that.
[59:33] That's a comedy.
[59:34] I mean, we have, I think we have 10 under construction right now and that helps us and then
[59:40] looking at the market.
[59:41] I mean, really, when we, there's a whole process when we design the development,
[59:47] Not only do we look at the competitors that we look at the rents, and then we want to
[59:53] certainly be in tune with the rents that are being charged, and then we look at the
[59:59] product that we're going to...
[1:00:00] So, it's a combination of all those. So, I think we feel very comfortable with the rents. And people making that income can certainly pay that. So, we feel good about the rent structure.
[1:00:14] Do you mind me asking, is that kind of where you're at in the first go development? That price point?
[1:00:19] We're going to be hiring first go then here.
[1:00:23] Just because the market's higher.
[1:00:26] I mean, what will happen is, and it typically happens,
[1:00:32] you start at a point, and in effect,
[1:00:35] heavy is very good.
[1:00:36] You raise it up.
[1:00:37] So the starting point for fiscal will be higher than here,
[1:00:39] because the market out there is higher.
[1:00:50] And maybe this will be helpful too.
[1:00:52] What I didn't mention is just kind of the level
[1:00:55] finish of the apartments, they're going to have quartz countertops, stainless steel
[1:01:00] appliances, islands, kitchen islands, pendant lights, LVT wood flooring, we'll have tiles
[1:01:09] around so the ceiling up in the showers, tile bass. These will be full size washer and dryer
[1:01:17] in each unit. These will be nice units. We'll have smart apartments where you can, we'll
[1:01:22] application, where you can get into the garage, you can get into the buildings, you can get
[1:01:27] into the humanity space, you can open up your door, you can turn on your light, you can turn
[1:01:31] on your thermostat, you can do your, you can pay your rent, you can put it in a work order.
[1:01:37] So, it'll be real high technology on this.
[1:01:41] What other questions?
[1:01:43] You showed us kind of what that view was from the, from the north side of the province.
[1:01:49] what's your lighting like back there? What do you propose for lighting?
[1:01:53] What are we proposing? Well, we're going to have to go certainly light it up. Put a bit.
[1:01:57] We'll be mindful of the neighbors.
[1:02:00] What will the neighbors be looking at?
[1:02:04] They're not going to be looking at lights.
[1:02:06] If anything, we're going to have the lights on the neighbor side pointing towards our buildings.
[1:02:12] I mean, certainly there's porch lights and things like that that people will probably be utilizing,
[1:02:20] but as relates to street lights, or anything like that, there won't be anything.
[1:02:23] It will be very mindful that there's anything lighting there now.
[1:02:27] Yeah, I mean, there's existing poles there now.
[1:02:29] So if we have to compliment it to get the light, because we want to say, I mean, we want,
[1:02:34] you know, I always say light it up, you know, so that's a preference, it's just good.
[1:02:39] And people feel secure when it's split.
[1:02:42] Okay, thank you.
[1:02:43] Yeah.
[1:02:43] Do we have any more questions?
[1:02:46] Go question on this side.
[1:02:49] Is that better?
[1:02:54] Is that better?
[1:02:56] Yes.
[1:02:57] Yes, it's bigger.
[1:02:58] Some more.
[1:03:00] Okay.
[1:03:01] So my question is, do you guys have a summary of a list of the zoning changes
[1:03:06] or SPUs or whatever they're going to be needed to complete this development?
[1:03:17] We do not have a list, but we certainly, we know we don't have to have a list before we talk to them.
[1:03:23] Do we have a list to present to you?
[1:03:25] No, we know height, parking in the landscaping setbacks and all that.
[1:03:31] Or kind of at a conceptual right now.
[1:03:36] And we're just trying to be mindful of the process and, you know, if we get to a point
[1:03:42] that we are going to then our engineers, Kim Lee, who we work with, we'll get put some
[1:03:48] fine lines onto the drawings and get more jacked in and an actual request.
[1:03:55] Okay.
[1:03:55] Thank you.
[1:03:57] Quick question.
[1:03:59] Is the parking garage going to be open to the public?
[1:04:01] Or is it gated?
[1:04:02] I didn't get to look.
[1:04:03] No, there will be some retail parking in the first four.
[1:04:08] Since we're taking some spaces, yeah.
[1:04:10] Where that demarcation is, we haven't determined that yet,
[1:04:14] because we haven't designed it.
[1:04:16] But there's probably, I think, some around 180 spaces,
[1:04:20] I think within the garage, don't hold me to that,
[1:04:23] but something like that, that we'll have for retail.
[1:04:26] Since we're taking some space.
[1:04:27] Thank you.
[1:04:33] question that I did have relates more to the current occupancy, where your rates are, and the
[1:04:42] expectation, and again, I want to clarify for myself, my understanding, and I'm excited
[1:04:48] about this, if I'm understanding correctly, AMC stays, is that the current plan, I know there's
[1:04:52] no guarantee on that, but that's exactly exactly what I was going to say.
[1:04:55] We have a handshake on it, and so yes, we anticipate that a movie theater will be there and
[1:04:59] thing, but I can't control the industry or AMC.
[1:05:03] I spend a lot of money on movies over there, so it's good.
[1:05:07] Are you shrinking your clothes in a state of saying?
[1:05:09] No, it's going to stay the same.
[1:05:12] I mean, we have talked to them about redeveloping it, which is putting more luxury
[1:05:15] seating, but they just don't have the capital right now.
[1:05:17] So that's if that happens, that'll be three to five years down the road.
[1:05:21] So that would reduce number of seats, but footprint would stay the same even then.
[1:05:25] And on that note, the slide that I saw does look like snuffers would be gone?
[1:05:33] Yeah, and so that's where I don't know where those discussions are, because if snuffers would like to stay in the project,
[1:05:40] we would like them to stay in the project, we'll find a new home form, because we are well-leased on a percentage basis.
[1:05:47] We have quite a few deals that are on shorter terms that we could find a space form.
[1:05:51] And then the anticipation, if the units to go in, is there a short list of potential new tenets?
[1:06:02] I mean, I have my list that I want very badly, and I tell my leasing team that all the time.
[1:06:07] Sometimes they tell me I'm completely unrealistic, because there's a balance there.
[1:06:11] But like the sit and savor was high on our list.
[1:06:13] That restaurant tour was one that worked for the group that's done some phenomenal concepts around the Dallas area and so what he's designing what he's building is really going to be added to the restaurant's air and really just bring the competitive level within the restaurant's to hire level and I should say this
[1:06:33] At lunch today, we went to Sholes, and so we met Jim, the owner of Sholes and Lambo's here.
[1:06:40] There you go.
[1:06:41] And so we were asking for his feedback about what he thought about this.
[1:06:44] And it was just like, I'll bring more customers.
[1:06:47] We need the people who are coming by the expense of drinks.
[1:06:50] So sorry, Jim, we're also bringing the competition.
[1:06:52] I hope we'll help.
[1:06:55] Okay.
[1:06:55] The only other question that I had was about the traffic.
[1:06:59] One of the things that we know is happening west of this intersection, there's a lot of growth and there are a lot of new subdivisions and new homes being built in those areas was that taken into consideration as part of the growth coming from that western direction.
[1:07:17] Yeah, sure. So when we do, when we do the study, we do, there's a horizon here, there's
[1:07:23] what we call it. So for this, the horizon here was 2028. So we project growth volumes based
[1:07:30] on historic data and based on industry standards. And these aren't growth volumes of
[1:07:35] population growth necessarily. It's traffic growth. So based on historic data and based on what
[1:07:45] We have done on other studies around here working with other cities.
[1:07:49] We assumed a 2% traffic growth year over year.
[1:07:53] That, to say, the only person that this has been submitted to is the public.
[1:07:59] So, if the city wanted us to take a look at different growth rates and had data to support different growth rates,
[1:08:05] we certainly would do that.
[1:08:13] And there's just one phase, right?
[1:08:15] There's just, yeah, we heard that one loud and clear at the meeting last fall.
[1:08:20] So, yeah, that was one thing we really studied from an economic standpoint, just to see whether we could justify the one phase.
[1:08:27] And because we heard loud and clear that the larger 580 apartments, I think, was just not tenable.
[1:08:35] And so that's where we made that decision to shrink it.
[1:08:38] I know it's still in conceptual phase, but you guys feel comfortable with an estimate on the total capital to complete this project,
[1:08:46] the time that it would take to do that and then when it would be completed.
[1:08:53] Yes, we're anticipated about the 75 million and 25 million of equity.
[1:09:00] If we were once given the green light, I would say a year for us to start.
[1:09:07] Probably deliver the first, first units, 18 months out, complete in 26 months.
[1:09:14] So right now we haven't started full design, really kind of conceptual, we haven't got
[1:09:18] into our schematic design yet.
[1:09:26] Anybody else?
[1:09:30] How long y'all mean?
[1:09:31] Do you build things in the hole in where you build a solid, move on down the road?
[1:09:38] Well, we typically hold them.
[1:09:40] I mean, we only sold one of our new projects so far.
[1:09:45] And to be honest, it was because we never had a history of selling.
[1:09:49] And it was funny with the investors that we were talking to.
[1:09:51] they go, well, what's your success but I knew new project was that we haven't sold any.
[1:09:56] And so it's almost like we had to do a round trip in a sense to show that what the yields
[1:10:00] were.
[1:10:00] So we did that.
[1:10:02] I think with a partner, for the AWS, I think Shawn was pretty clear that this is a long-term
[1:10:10] hold asset for them, and they would be partners in this, so this would be a long-term
[1:10:16] hold.
[1:10:16] So with that long-term hole, you make better decisions long-term.
[1:10:22] You know, you might spend more money on finishes and development.
[1:10:24] If you know you're going to hold that versus flipping it,
[1:10:27] you just do it a little smarter.
[1:10:29] So this would be considered a whole property.
[1:10:37] Well, we just start developing, you know, five years.
[1:10:39] Those types of five years on the new stuff.
[1:10:42] We've owned stuff probably 15 years.
[1:10:44] I think companies, about 18 years old,
[1:10:47] start off buying dueplexes and stuff,
[1:10:50] but getting into the bigger 200-plus units,
[1:10:55] probably after three years,
[1:10:57] so probably 15 years or so?
[1:11:05] Yeah, just something to something question for,
[1:11:09] do we plan to flip?
[1:11:10] This is absolutely, we'd be a build decor,
[1:11:13] for us long-term hold.
[1:11:17] Essentially, they'll let down on the center, honestly,
[1:11:19] but we have that much conviction on the asset
[1:11:21] in all the growth that's happening here to make that call.
[1:11:25] Build decor is a concept we do see nationally,
[1:11:29] taking vacant land parcels and back to Vietnam.
[1:11:32] It's very competitive.
[1:11:34] If you think it's really competitive
[1:11:35] by single family home today, it's just as competitive
[1:11:38] in the commercial side.
[1:11:40] So big institutions like myself, we find land developers,
[1:11:45] partner with groups such as Mark and Percidium,
[1:11:48] build the product and hold it.
[1:11:50] to the absolute be a long-term hold.
[1:11:57] Thank you, Mr. Mayor.
[1:11:58] As much as the question for the question for the pension fund.
[1:12:02] You're finding what pension do you represent?
[1:12:07] Yeah, I'll try to dive into as much detail as it can.
[1:12:09] If you don't have to get in the way, just just.
[1:12:11] Yeah, exactly.
[1:12:12] So this is a state pension fund.
[1:12:15] They represent state employees and teachers for the state
[1:12:20] of Massachusetts.
[1:12:22] They're one of the largest pension funds.
[1:12:24] And it then, you know, very active investor,
[1:12:28] and certainly, you know, for this site, you know,
[1:12:30] I think, you know, I've been pleasantly pleased
[1:12:36] with the results here, but they've definitely
[1:12:38] see the potential to add value and, you know,
[1:12:41] make the center better.
[1:12:42] And, you know, I think we're really focused on that.
[1:12:44] I think back to the question about the occupancy, you know,
[1:12:48] we are trying to do everything we can to bring fresh tenants
[1:12:51] and attract tenants, that does require a capital.
[1:12:55] We've been very willing to do that, you know,
[1:12:58] and I think in a long-term strategy like that,
[1:13:01] a long-term hold when you're giving new information
[1:13:04] new data, the pandemic was one of those for us.
[1:13:07] It requires us to think about the next 10 years, right?
[1:13:12] So the pension funds can do that, you know,
[1:13:14] not every investor can.
[1:13:16] So you guys really have a good partner here, you know,
[1:13:19] be looking at these things proactively and in terms of your strategy.
[1:13:24] So, and you guys are funding the apartment, the old family, you guys are on the pension fund
[1:13:30] would be funding it.
[1:13:31] Denver, that's the, that's the reason I asked that question, because typically pension funds,
[1:13:36] they hold assets for long term, so it's like, clip and keep on for their members.
[1:13:41] Thank you.
[1:13:42] All right.
[1:13:43] So, 75 million to bill.
[1:13:44] And then your average unit size is 848 square feet.
[1:13:50] What's the largest unit size?
[1:13:53] Well probably our two bedrooms will be 1450.
[1:13:56] Okay.
[1:13:56] So your rents are anywhere from 2 to 2,500?
[1:14:01] Yes, the average.
[1:14:02] Yeah.
[1:14:02] We'll have the average will be a little over 2,000.
[1:14:06] And we will have one bedroom set maybe smaller.
[1:14:08] Based on where they line up.
[1:14:11] So they may be below 2,000.
[1:14:13] I mean, it may have 600, 700 square foot,
[1:14:16] but we're being close to 2,000 on the one
[1:14:19] better.
[1:14:19] And the two of them is close to 3,000.
[1:14:22] I ask this repeat that in the mic.
[1:14:25] I'm sorry.
[1:14:26] Our viewers.
[1:14:27] No, I apologize.
[1:14:30] Okay.
[1:14:31] Let me see if I try and repeat the question.
[1:14:34] The question was, the average size being 848 units
[1:14:39] are square feet and I said that there was going to be we're probably going to have probably
[1:14:45] 12 different unit sizes. And the two bedrooms are probably going to go up to 1450 again.
[1:14:52] It depends could go up to 1500. So it could be 3,000. That could be close to that.
[1:15:00] As I follow yet, but I'm trying to gauge for our listeners, you're not going to have a units in this complex that are going to be running for $12 to $1500. You're talking high in class A.
[1:15:13] Well, yes. I would say, without having to, we're going to be probably close to $250 square foot on those small one-bedroom isolated.
[1:15:21] And so that's probably, and then if you put a 10 percent, you know, the fees and things like that, they're probably minimum, be 1,700, even the smallest ones.
[1:15:32] And then the bigger ones are going to go up to probably close to 2,800 and then some.
[1:15:37] How many elevators in the project?
[1:15:40] We typically like to do, I don't know what we have planned here, but we probably have four.
[1:15:46] Please like to do 70 to 80, an elevated per 75 to 80 people.
[1:15:52] And then all units are sprinkled fire gas.
[1:15:56] And then going to the comment about the police officer apartment.
[1:15:59] I'm sorry.
[1:16:00] The police officer that's going to have an apartment.
[1:16:03] Is that what you said?
[1:16:04] We would offer if the police officer or the police department would allow it.
[1:16:10] Okay.
[1:16:11] We do that.
[1:16:11] We call them courtesy officers.
[1:16:13] And we would offer a unit as compensation for doing minor patrol, having a car present and
[1:16:21] things like that.
[1:16:22] Would you please tell the chief that I accept that position?
[1:16:27] Okay.
[1:16:28] We would have to, I don't want to be presumptuous, but we'd have to make sure that it is acceptable.
[1:16:35] We do this in other communities, but we just think it's a wonderful asset to have enough
[1:16:41] sort.
[1:16:42] And then, when does the, to you the shop owner, when does the snuffers lease expire?
[1:16:52] I believe it's 2023.
[1:16:54] Okay.
[1:16:55] Because you, you can probably, in less you guys do something really sweet.
[1:16:59] You can probably count on snuffers to exit.
[1:17:02] Yeah, I mean, that's, that's where it always comes down to as negotiation.
[1:17:06] Yeah.
[1:17:06] So, I mean, I think we would like it.
[1:17:08] We've heard they like it, but it's, we've already taken a huge shit on the AMC.
[1:17:12] So, I'm not sure how much more of a hit we can take.
[1:17:14] Yeah. And then for those who are listening 75 million dollars to build this, that is just
[1:17:21] so, you know, that is a plus. We've been involved. I'm in the banking industry. I've
[1:17:27] been involved in several multi-family projects. And you guys are making a true commitment here
[1:17:31] whether or not it goes through and passes. I just commend you on your work and a true commitment
[1:17:36] of 75 million. And if you're getting close to $3 a foot, which I'm calculating on the larger
[1:17:41] larger units, that's pretty stout, the interior parking, you're not going to allow anybody to park on the street or outside of the units, correct?
[1:17:53] Let me correct something here. You mentioned three dollars foot, no, we're not going to get to three dollars foot.
[1:18:02] I know what you're getting close.
[1:18:04] So I would say with the one veterans maybe we get the 250 or so.
[1:18:08] I think overall might be 250.
[1:18:11] In regards to the parking, we plan to have enough parking, 1.5 spaces per unit within the garage.
[1:18:20] Now, and hopefully their guests can park there too, but certainly there's parking available.
[1:18:27] I can't control people, but we should, the parking for the apartments should be self-contained.
[1:18:32] I've got you. Last question, what is your walking traffic goal? Talk about it, 2019, 2021.
[1:18:40] How many people you want to see, you guys want to see going through the shops? What's your
[1:18:44] goal?
[1:18:47] Talk about your walking traffic. Talk about your walking traffic.
[1:18:49] So what's your goal? You mean like on the the four and a half million side?
[1:18:54] Yeah. I mean ideally we'd be with the five million. I mean what we really try to do is
[1:18:59] is grow that traffic and that's our marketing program
[1:19:01] and the tenant leases.
[1:19:04] And so we would like to be over five million.
[1:19:12] Anybody else?
[1:19:15] And let me actually have one thing on the part in question
[1:19:17] is that I was just saying, you know,
[1:19:19] of it from the retail perspective, is that yes,
[1:19:20] we're going to be very tight from the retail perspective
[1:19:24] to make sure that renters are parking
[1:19:26] in front of all the stores.
[1:19:28] Because that's the most valuable space
[1:19:29] for the store state.
[1:19:30] We're getting in current rents right now.
[1:19:33] The current rents on the property, average average is probably mid 20s plus
[1:19:40] triple taxes.
[1:19:41] Yeah, triple net.
[1:19:43] OK.
[1:19:44] Five, four, I want to know.
[1:19:45] Thank you.
[1:19:50] Anybody down here?
[1:19:51] Yes.
[1:19:53] Let's see.
[1:19:54] Have you had any conversations with DCTA
[1:19:56] since it appears that a majority of these residents will not
[1:19:59] be driving in or out?
[1:20:01] D.C.T.A. didn't get any transit authority.
[1:20:06] I have transit.
[1:20:07] I don't know.
[1:20:08] Jonathan, have you had any?
[1:20:09] No.
[1:20:13] Let's see.
[1:20:14] We are in the process of updating our comprehensive plan.
[1:20:17] If you had any conversations with McAdams or any involvement in our comprehensive plan.
[1:20:22] I have not.
[1:20:23] We have not been approached yet.
[1:20:26] Sounds like that's coming soon.
[1:20:28] Okay.
[1:20:28] Your one's quoted, our mantra has always been, get on the ground and let neighborhoods come up with the plan.
[1:20:33] We're not marching into a community and telling residents what should go on each corner.
[1:20:36] We're working with them on a daily basis to earn their trust.
[1:20:40] Are you currently doing that with Highland Village residents and how?
[1:20:44] Well, we had an HOA meeting that a new year aware of in October.
[1:20:51] And that was to present it to the HOA, it turned out that a lot more people than HOA came out.
[1:20:57] And so then we've met with HOA Board and this is another attempt to disclose what we're doing in public and to open that dialogue.
[1:21:12] All right, so back in October market indicated that the demographics did not include children.
[1:21:19] Maybe newborns but no children.
[1:21:21] Are you still anticipating no school age children to be residents here?
[1:21:29] I can't tell you what residents are going to come and we can't discriminate on that.
[1:21:33] We just anticipate that the profile that we're seeing across our properties typically do not have children.
[1:21:41] Okay.
[1:21:42] But I can't say that a couple doesn't show up with a child.
[1:21:47] We can't say no.
[1:21:49] So, no matter that's our anticipation.
[1:21:51] Because we're not building three bedrooms.
[1:21:53] If we thought that was the market, we would build three bedrooms.
[1:21:57] I understand just seeing if anything changed since last October.
[1:22:00] You also mentioned last October that you guys were tearing down theatres all over the nation to put up apartments.
[1:22:10] Do you have examples of communities where you have torn down apartments and torn down the movie theatres and replaced with apartments?
[1:22:19] Yes, Jacksonville, Florida, Regal Theatre.
[1:22:23] Can you give you the name of the property?
[1:22:26] It's on Beach Boulevard, Regal Theatre, it's torn down right now, and we're building
[1:22:33] 340 apartments.
[1:22:35] Is that inside a retail area like the shops at Highland Village?
[1:22:39] No, there's some outparsals with residential behind.
[1:22:43] Do you have a property that we have another, do you have a property that was currently developed
[1:22:48] that you redeveloped with apartments that is similar to the shops at Highland Village
[1:22:51] that we could base line against or reference to.
[1:22:56] I'm sorry, I didn't understand the question.
[1:22:58] Basically what I'm looking for is,
[1:22:59] everything that we've seen here is new builds.
[1:23:02] What I haven't seen is a redevelopment of a property
[1:23:05] within close proximity to existing housing.
[1:23:09] This isn't going to be a redevelopment.
[1:23:11] They're redeveloping a portion of it.
[1:23:14] Exactly, they are.
[1:23:16] No, no.
[1:23:17] It's not versus going on a way.
[1:23:19] Okay, do you have a dance here, do you have an example of an existing shopping center where you removed
[1:23:26] a portion of it to build up apartments?
[1:23:29] Now, well, what we are doing, I think I've mentioned earlier, we are working with a national developer
[1:23:34] right now that we're submitting an LOI to take down either a JC Penny or Sears that we're
[1:23:42] doing, which is in a neighborhood.
[1:23:44] In addition, we are, we knock down, who are going to knock down, I probably purchased the property
[1:23:51] up in Kennesaw, Georgia, just north of Atlanta, another regal theater, because they are
[1:23:56] all going out of business.
[1:23:58] And we are going to knock that down and build 350 units, and we already want the property,
[1:24:03] and we're anticipating breaking ground, probably in September, October, where's the property?
[1:24:09] Canisol, Georgia, it's the Canisol Mall,
[1:24:14] it's on town center Parkway.
[1:24:27] Mr. Beaster.
[1:24:30] This may be for the city, maybe for the developers,
[1:24:34] but the current infrastructure in that area in that corner,
[1:24:37] water, sewer,
[1:24:40] has it, is it available to service this property
[1:24:44] as you intend it to be developed with the current infrastructure
[1:24:48] that's there in the ground?
[1:24:51] Or would you be anticipating an upsize water or sewer to this property?
[1:24:55] We haven't done that analysis as far as I know.
[1:24:58] I mean, I think that's more of a city question.
[1:25:00] We've never run into any issues on the existing property, but I haven't asked that question
[1:25:04] at the city before.
[1:25:06] I didn't do the math.
[1:25:07] I apologize.
[1:25:08] But what is the density that you would be looking for just for the apartments?
[1:25:13] How many people per acre, basically?
[1:25:14] Well, it's two.
[1:25:15] I apologize.
[1:25:19] It's 280 units, and it's probably four and a half acres.
[1:25:27] 50 something units, Breaker.
[1:25:30] Thank you.
[1:25:36] For now, I'll have some.
[1:25:38] I do have a question for you.
[1:25:41] When you started looking at reconstruction,
[1:25:46] we're doing something with a center to enhance its viability.
[1:25:50] What I'll turn to is did you look at beyond the apartments?
[1:25:55] And we looked at quite a bit, so I mean, I'll tell you like from a hotel perspective, we looked at hotels and hotels were an opportunity, but I mean hotels is not going to make or break anything.
[1:26:10] We looked at office, but office is, and one was suffering part of COVID now, and I mean nobody's going to touch office with the poll.
[1:26:19] And so, really, the two hottest concepts are residential and industrial, and I was making
[1:26:27] a leap of faith here, but I guess the show would not approve us putting up an industrial
[1:26:31] building here and doing warehousing.
[1:26:35] So, that left residential is all turned up.
[1:26:37] So we did talk about different alternatives to residential, and that was brought up at the October
[1:26:41] meeting.
[1:26:43] And so, I mean, I really needed to further mark on that, because I was part of the conversation
[1:26:47] was about the viability from like a town home concept would potentially work in under
[1:26:54] right but it doesn't really move the needle because there are that many town homes that
[1:27:00] can fit in there because it gets a lower density and then when you start looking at senior
[1:27:04] housing and stuff like that then that's just not what Mark historically has done and
[1:27:10] we wanted something of a higher quality that really brought a consumer that was going to
[1:27:17] the best consumers or those that are really from, say, 15 to 40 and they are the ones that
[1:27:23] spend the most money and so that's where the multifamily really aligns with that vision
[1:27:28] and creates more viability for the shops. And so from a shops perspective, the multifamily
[1:27:34] is the most ideal to bring that traffic to the shops and to the retailers and to drive
[1:27:38] ourselves.
[1:27:43] Said that the townhome aspect doesn't really move the needle. When you say it doesn't
[1:27:48] move the needle in terms of profit for the organization or in terms of additional sales tax
[1:27:55] revenues and foot traffic to the businesses.
[1:27:59] Really, I'm talking about the foot traffic because when you have 280 apartments and one
[1:28:05] and a half people per apartment, so I mean you're talking and what is that 420 people versus
[1:28:11] town towns and I don't know if we even let anything out but you're talking 30 to 40 and that's
[1:28:16] family oriented and so it's a consumer that's a little older may not spend as much
[1:28:21] and so you're talking maybe a hundred people total so I mean that's sort of
[1:28:26] the multi-family brings probably four times as many people but a lot more
[1:28:30] spending power to yeah and this may be for you sir the complex the multiple
[1:28:38] complexes you have on the ground at this this stage relatively new I believe
[1:28:42] is what you said before, how often and what percentage of input do you give, what time
[1:28:50] frame do you give for reinvestment in the buildings to keep them up to standard for the
[1:28:55] community, keep them viable, keep them attractive, how often are you going to reinvest in
[1:29:01] this complex to keep it attractive for people?
[1:29:07] Yeah, I mean, it's absolutely an evolution, I mean, we work the sites, I work on a handful of
[1:29:15] assets across the country at the same time, but this is probably my biggest commitment.
[1:29:19] So this is essentially a full-time job for me to not just make sure we are attracting tenants
[1:29:25] but maintaining the property.
[1:29:27] I'm very happy and proud of the stop that's how we have today.
[1:29:31] You know, of the four corners, you know,
[1:29:34] we're the one with the brightest landscape,
[1:29:36] you know, the freshest, you know,
[1:29:37] feel in best, I mean, customer shopping experience.
[1:29:41] That takes money and we are very proud to spend that
[1:29:44] because we think that's the best shopping experience,
[1:29:46] attracts the best customers, attracts the best tenants,
[1:29:49] you know, attracts the most sales.
[1:29:51] So it's something we are constantly looking at.
[1:29:54] We go through a pretty rigorous, you know,
[1:29:56] business-paying process, we identify, you know,
[1:29:59] I mean...
[1:30:00] We're spending capital for maintenance issues. You know, it's, you know, besides me, it's a huge team for
[1:30:08] public and robbing here to identify that and over the course of less than a decade, it's been
[1:30:15] tens of millions of dollars. So that's an ongoing commitment for us. And again, we operate quality
[1:30:22] shopping centers. We operate quality real estate. You know, that's what our clients expect us to do.
[1:30:28] And that's what they went on.
[1:30:31] Thank you.
[1:30:32] Mr. Hezler.
[1:30:33] Yeah, I have one other comment.
[1:30:35] And I'm sure Dan, representing our city's mayor, will say this.
[1:30:39] But all of you that are out here, thank you for coming tonight.
[1:30:42] I mean, you're concerned, you're care, you're belief in how
[1:30:47] and villages is very big.
[1:30:49] And I would say this to you, sir.
[1:30:52] I think we're all going to want to.
[1:30:54] And we all have a lot of vested interest here in how and how
[1:30:56] But what are you going to do to win these people over because we are their voice
[1:31:02] They support us, we support city and the city we love and we live in.
[1:31:06] So really, these people out here are the ones that count.
[1:31:09] These people are the ones that are here that have the concern.
[1:31:11] So what are you guys going to do to make them feel comfortable with what you're going to propose in this change to this city?
[1:31:24] I definitely appreciate everyone being here.
[1:31:26] I'm sure everyone else on the lines and on the recording YouTube so thank you guys for making
[1:31:33] the time. The key message here is you guys are in good hands. You know, we have a very
[1:31:40] conservative, long time horizon owner that wants to make the right calls and is willing to put
[1:31:49] in the work and dollars to make it happen. I think the key here is we're looking at a
[1:31:56] a long time horizon, you know, we're talking about AMC, you know, but if everyone just
[1:32:00] flushes back to one for a month ago, what we're all focused on completely different
[1:32:05] landscape, you know, looking at the Joshua slides about where we were, you know, 2007,
[1:32:12] 2017, you know, there's a lot of progress that's happening.
[1:32:16] These plans take a long time to develop, a lot of work for everyone here to make it happen.
[1:32:24] So you guys are in good hands, we need time to go through this process, we're focused on delivering
[1:32:31] the best results, and we have the capital in the partners, in the owner's investors to do that.
[1:32:39] So you guys absolutely should trust us to get this done, but first and foremost, this is a retail
[1:32:45] shopping center, and we are looking at this opportunity to help complement that. Future proof that,
[1:32:51] And make us competitive versus where we see the rest of the market and national trends are happening.
[1:32:58] That are going to make us be able to retain tenants attract new tenants.
[1:33:03] And I will say, you know, we are having success.
[1:33:06] But, you know, today's success might not be tomorrow's success.
[1:33:09] So we need to be thinking more holistic about where this could go.
[1:33:14] And, you know, I think this is really what we're trying to accomplish today.
[1:33:17] So that's my message.
[1:33:21] I've got additional question for you in the presentation, the leaving the AMC, you built, you
[1:33:35] showed a drawing with the apartments on the east side of AMC.
[1:33:41] Given the concerns of the citizens that they've already in October given and many of us have
[1:33:46] beyond the traffic was the height of the building, as well as the view to the residents behind it and you showed a video of the drone, which appears to show no impact visually, right?
[1:34:03] When you looked at the plan and you had the building on the east side of the AMC, there, that one.
[1:34:12] And I'm assuming just by looking at it, it's a space configuration, more than anything else.
[1:34:18] There's a pond on the west side behind the AMC and parking lot.
[1:34:27] Why would you not try to configure it on that side to minimize the impact to your residents?
[1:34:33] Yeah, I mean, we've explored a lot of options here.
[1:34:37] Again, this is not something we've pulled together in a couple of weeks.
[1:34:42] We've been studying this and even before Josh and the team have onboarded since our ownership,
[1:34:46] we've worked at this and tried to pencil and think about what we could be doing with the pad
[1:34:51] sites or other areas of the shopping center.
[1:34:55] I think we have to look fundamentally at the economics and you have a very large open parcel
[1:35:01] for parking from a logistics toll cost and to be able to actually deliver what we intend
[1:35:09] to do with minimal impact and compliments.
[1:35:13] These are very complex moving pieces of what we're trying to accomplish.
[1:35:18] We think steering a single phase on the east side was the easiest path forward that accomplish
[1:35:26] I think what we intended and in satisfied, you know, some of the questions and concerns
[1:35:32] from the community.
[1:35:34] So.
[1:35:34] And a lot of the concerns from the community, obviously, were the traffic.
[1:35:38] The, just, the lack of desire for apartments, and I know you've heard that before, given
[1:35:44] the amount of land that's available, and I know that the AMC staying creates a different
[1:35:50] challenge for you.
[1:35:51] The initial plan is different.
[1:35:53] You've cut the apartments back roughly in half, but in alternative to configuration, putting
[1:35:59] apartments on the west side and adding additional retail shopping restaurants on the east side,
[1:36:06] which gives the residents what they're looking for, more shopping opportunities, it minimizes
[1:36:12] the apartments on the west side if you put it on that, obviously.
[1:36:15] So, you're minimizing the impact overall, you're also minimizing the visual view from the
[1:36:21] residents, if you're able to put it on the west side with a pond, you've got a road on the
[1:36:25] west side, Chin Chapel, so you don't have an effect to your residents.
[1:36:31] And those are the alternatives I was asking about before, not simply types of buildings,
[1:36:36] types of structures, but there's so many ways you can figure this.
[1:36:40] And I know it's a dollar, dollars, more than anything else.
[1:36:43] But we built this corner when we put that in, our primary focus was for sales tax revenue.
[1:36:54] We needed to increase the sales rate tax revenue in the city, and the only place we had
[1:36:59] that was along 407.
[1:37:01] You're asking us to reduce that possibility, and that have alarm tax, where the arguments
[1:37:09] before we were heavily dependent upon property tax and we needed an alternative and that is
[1:37:16] our sales tax revenue.
[1:37:17] When I look at this, I think it's a beautiful development and I trust that you're going
[1:37:21] to build it in a very high level standard, but you're still minimizing the sales tax revenue
[1:37:28] to this community, which is asking our community to pay a little bit more in property tax
[1:37:35] to maintain the services that we have.
[1:37:37] So when this is configured, if there's any alternatives that can be looked at to maximize sales tax revenue,
[1:37:44] I think it's more receptive overall in the community.
[1:37:48] Yeah, and absolutely, I've echo that.
[1:37:51] But we're fundamentally landlords, right?
[1:37:53] We don't operate these businesses.
[1:37:56] So when Josh and his teams are in the market, trying to find tenants and replacements,
[1:38:01] we're kind of at the back and call for who's there.
[1:38:04] we certainly will do what we can to be attractive and bring capital for them to make the investments
[1:38:11] and take the space. But we have to consider as long-term holders what happens to AMC if they decide
[1:38:18] to leave. In that case, there are producing any sales tax, right? So there are definitely risks
[1:38:25] those deals. There's risks to do in development. And we're very focused on trying to get this
[1:38:30] plan, right? I think fundamentally, again, this is a shopping center and we are very focused
[1:38:36] on first serving our current tenants and attracting new tenants and increasing the sales
[1:38:41] tax that this is not changed, you know, our mission. This is complimentary and we do think
[1:38:47] because it is a vacant land right now, activating it and bringing these units online in the future
[1:38:53] is the best path forward to collectively help everyone.
[1:38:58] We have looked on the west side, but because of the density
[1:39:03] in require a parking structure.
[1:39:07] And essentially, asking tenants to be,
[1:39:11] you have to walk all the way across the shopping center
[1:39:14] to get a car if you're a resident from a flow perspective,
[1:39:19] it wouldn't really be challenging
[1:39:21] to build a structure, a parking structure, and the units.
[1:39:26] It was a trade-off, and I think we struggle with that in our design process.
[1:39:31] We just could not make the numbers pencil out to build on the west side,
[1:39:38] and the number you could deliver on the east side,
[1:39:43] and also prove that the path of least resistance.
[1:39:45] So, and the building that is on that faces the southern piece of this land, first level,
[1:39:57] every level before levels is all apartments.
[1:40:00] The possibility of converting the first level along that entrance into the center to retail.
[1:40:08] Has that been explored?
[1:40:10] Yeah, we have to study that.
[1:40:12] There's a possibility we could have first floor retail, you know, I think we have retail today and we probably have a little bit more than we want.
[1:40:22] In terms of, you know, I think we're still some leasing we want to do.
[1:40:25] But absolutely, you know, we're striving down in the lakeside and there's a lot of first floor retail and all that stuff is full.
[1:40:32] So, you know, I think absolute brings those type of units, brings different kind of tenant and you know, something we would explore.
[1:40:38] of the other complexes that you manage, what is your best way to ask you, what is your average vacancy rate?
[1:40:48] I think in our full retail portfolio, we're about 94% least least.
[1:40:53] Where are you here?
[1:40:54] We are around 86-87.
[1:40:58] This shopping center is a little unique.
[1:41:00] We do have a second floor office, which, you know, office is probably the biggest prototype we're struggling with.
[1:41:10] But this is still pretty well performing.
[1:41:14] It's sort of two steps forward once that back,
[1:41:16] for a long time in 2016 to 2018.
[1:41:20] There are a lot of national bankruptcies that sort of
[1:41:23] rippled through everything.
[1:41:27] So the list example Joseph A. Bank was a national closure.
[1:41:30] We didn't have any control. We tried to retain them.
[1:41:33] That's kind of the challenge that Josh was talking about.
[1:41:35] You know, so we definitely have some more to do on the leasing side, that includes the new concepts that are coming in later this year.
[1:41:45] But on top of that, you know, there's a lot of temp tenants that were hoping to bring to permanent deals and sort of
[1:41:52] incubate them to take permanent locations and grow their relationship.
[1:41:57] So, we're absolutely, you know, on top of trying to stabilize the asset and make it the best it can be.
[1:42:05] And honestly, it's short term pain for us, you know, because it's less dollars in our pocket,
[1:42:10] but we're willing to meet that came in and try to, you know, shore it up.
[1:42:16] Thank you.
[1:42:21] What's the plan?
[1:42:22] Let's say, let's say, things don't go out the way we want you want.
[1:42:28] What is a backup plan or plan B? Is there even one in place or anything you can share?
[1:42:33] You guys know what you're doing. So I know there's there's a potential backup. Does that change your outlook on the long term hold versus a short term hold?
[1:42:44] Does he change? I mean, where would that go if things don't go out the way you want them to go?
[1:42:50] Specifically for the development, you're just talking about retail.
[1:42:52] No, no, no, no. Specifically for this development, what we're here for today. I mean, I know you can't predict everything and gosh, we couldn't predict what's going on right now, anyway, but if this doesn't go through to your liking, what's planned me.
[1:43:06] Yeah, no. Again, the key of this raise the focus on the future of what we think adds value in attracts the most tenants.
[1:43:16] We think those are key drivers to where we think competitive retail and really competitive real estate is going to be.
[1:43:24] If you're not addressing the demand drivers for the product, you're going to fall behind up to less sense and you're going to see that in the performance.
[1:43:34] right. So that said, we like the fun and I was a lot here. Our investor is really focused
[1:43:44] on a long-term commitment. They've proven that. They've been here for almost 10 years. We've
[1:43:50] see a path forward without this development just to be clear. And again, we have a great
[1:43:56] working relationship with the city to make that happen. You know, we have a number of city
[1:44:04] are employed many people on the site in, you know, I think we see really try to unlock the potential of the project.
[1:44:16] I don't think this changes, you know, our decision to hold or sell.
[1:44:20] You know, that's, we can't take a day-to-day, you know, mindset based on this.
[1:44:24] We see this as a decision that needs to come ahead in the near term.
[1:44:32] But, you know, we can be patient and work through that, you know, process, for sure.
[1:44:37] You know, we just, we're essentially, you know, are allowing or requesting for some ability to, you know, be flexible in how this plan development was approached, you know, 15, 20 years ago.
[1:44:53] And then I just had one last thought and that was, I understand the reason why
[1:44:59] Thanks for watching, and I'll see you in the next video.
[1:45:00] Moving into the west is tough, just because of the footprint you want to do a wrap around type situation.
[1:45:08] Is there, and this is, I'm not here to redesign your project. I'm not an architect or an engineer.
[1:45:14] But is there a thought to putting the parking garage at the back of the property so you don't have your residents overlooking other residents?
[1:45:24] So it's just a garage.
[1:45:26] And that might even be a garage without any openings on that end.
[1:45:29] So that way there's a curtain wall with the foliage on it and whatever to help mask it.
[1:45:37] But that would remove some of the issues that obviously are a problem here, and that is for
[1:45:42] story homes looking into people's backyards.
[1:45:44] And I know what the drone looks like and so forth.
[1:45:47] I get it.
[1:45:47] But just as a piece of mind type thing, is that even a way to shuffle that around?
[1:45:52] It's study that and I think that where we see the design trends is, you know, it's more effective.
[1:46:01] It's less obstructive, you know, terms of people's opinions on the project, if you're able to minimize the parking appearance.
[1:46:11] So if you're able to hide that mask and I think Mark put the other a pretty thoughtful design package.
[1:46:16] Again, this is months of studying alternatives.
[1:46:19] And I understand why you want to do it that way and how it looks for your property, but the residents that live behind there are looking at a concrete wall from the movie theater and had been forever.
[1:46:30] So it's not going to be that big of a deal to put a concrete wall right next to it the other way without people looking over into their yard.
[1:46:36] Yeah, I know.
[1:46:37] Yeah.
[1:46:40] We also started to just point out the setback from the tree line that Mark pointed out.
[1:46:47] You know, that was something we also started to make sure that we feel like we're giving
[1:46:51] more than an ample enough space.
[1:46:53] As far as we could take it, and you know, ultimately we did, you know, have to make a top decision
[1:46:59] about sufferers.
[1:47:00] You know, we talked about the sales tax issue.
[1:47:02] You know, we don't like to lose the retail, and you know, I think we're trying to again
[1:47:06] to deliver quality product, and sometimes it means, you know, taking some dollars out of
[1:47:10] our pocket and making it happen, but that's what quality takes sometimes.
[1:47:18] So, anybody else, Mr. Feather, you had some questions?
[1:47:20] I think I should have.
[1:47:21] I have a couple of questions for staff and fire.
[1:47:24] So, I'll start with Mr. Chris, is there any reason to believe that the existing infrastructure
[1:47:28] at this corner would need to be upgraded to service this, water and sewer, specifically,
[1:47:33] Well, and I'll amidst storm because it's impervious now in being
[1:47:38] impervious when it gets re-developed.
[1:47:42] And if it does need to be upgraded, can you clarify who would bear that cost to upgrade those utilities?
[1:47:49] Sure, we would work with the developer on application to review the existing infrastructure.
[1:47:57] here. Right now it's built with additional capacity.
[1:48:05] 300 proposed units. You know, we'll look
[1:48:08] at it. See what the flows would be and look for choke points in the existing system.
[1:48:14] If we do find some, we would work with the developer to develop a plan to design and pay
[1:48:26] for those upgrades.
[1:48:27] By the developer, okay.
[1:48:29] Thank you.
[1:48:31] And then for the fire department,
[1:48:32] Chief Collier, I'm sorry.
[1:48:34] I'm just gonna call everybody, I'm just kidding.
[1:48:37] It plays the B&Q.
[1:48:39] Please get their apartment there, plan for those for that.
[1:48:44] Thanks, Chief.
[1:48:46] So I know fire was looking at this plan
[1:48:49] with a four-store building.
[1:48:51] I'm gonna say it's maybe 55, 65 tall on average
[1:48:55] with our current fire department.
[1:48:56] And I don't mean to integrate what anybody does, but with the equipment we have, is there
[1:49:01] any reason to believe that we couldn't service this facility with our current equipment?
[1:49:06] Currently, this facility, being in four stores, we will not be able to.
[1:49:10] We will not be able to pull me additional more life-lane aerial traffic.
[1:49:15] Lighter traffic.
[1:49:15] Okay.
[1:49:16] Can I follow a real quick?
[1:49:17] Yeah.
[1:49:18] That was a cheap given recent conversations with respect to mutual aid on EMS calls.
[1:49:25] Do you have any experience or knowledge, like, for example, Lewisville with similar projects?
[1:49:33] How frequent calls are for just an ambulance to multifamily versus regular single family?
[1:49:44] And where I'm going is with this pressure that we're going to now experience because of the mutual aid situation.
[1:49:50] And if you have an ambulance that's dispatched to the east side of the city, and then something
[1:49:56] happens in a place like this on the far west side, what are we looking at in terms
[1:50:02] of ability to respond, time to respond, risk to patient?
[1:50:12] Looking, and I can only look at the district right now, the call load that the district provides
[1:50:17] as far as the residential, it is that large event back, I mean we will make about 40 to 50
[1:50:24] calls out there last year, so it's not that huge of impact.
[1:50:29] As far as response time, I mean, it's, is any other calls to that area, if we're
[1:50:35] on the other side of town or out, then you're going to have a delayed response, because
[1:50:39] we only have one ambulance in town.
[1:50:41] Right.
[1:50:41] And we're looking at if we have to rely on fire mound in this case, it's going to be coming
[1:50:48] from where.
[1:50:49] But what they're telling them, currently right now, if it's in house, it's coming from, basically, the post office, where the post office is in farmhouse, off Morris.
[1:51:01] And is that, I mean, what I'm hearing is that may not, that may change in the future that they may want to come for further out. Is that true?
[1:51:12] They will have, I mean, as far as the farm out ahead and said, that they're going to
[1:51:15] remove the animals anywhere, but there could potentially be one added out of farm
[1:51:20] out on an extension for, which is on Bridalwood, at the country club, I don't know
[1:51:26] exact address of it, but obviously it's a station of one in farm out on that's their
[1:51:31] busy stem, so it's an utilization.
[1:51:36] So our next medic comes out a little useful, which is their station of one, which
[1:51:40] just by a little high school so that and that's both the two busy
[1:51:46] examiners so potentially a significant impact on response times what we're going
[1:51:50] sure okay the brighter with stations halfway between four seven and twenty four ninety
[1:51:55] nine I'm sorry eleven seventy one yeah that's all I have for my part of
[1:52:02] department any other questions anybody else otherwise I've got a handful
[1:52:10] So I want to talk about the city a little bit and throw some facts out that I'm sure you
[1:52:15] guys are aware of.
[1:52:16] We're about five and a half square miles, about 16, almost 17,000 people were landlocked
[1:52:20] by the lake and are neighbors to the south.
[1:52:23] We don't have room to grow.
[1:52:24] We're not urban, and some would say we're barely suburban.
[1:52:30] So my question is, and it was kind of going to what Mr. Nelson was talking about.
[1:52:36] When you look, most of your properties that you've shown in your presentation appear to be more urban-based or urban-centered,
[1:52:45] so when you talk about the type of tenant that you're going to be trying to attract,
[1:52:52] how accurate do you think your estimates are when you take into consideration
[1:52:59] and we are literally not like anything else you've ever done.
[1:53:03] Our community is not, I don't think there's a place where you've done something like this before.
[1:53:13] To be honest, this is nicer.
[1:53:16] This is a wonderful development.
[1:53:20] There is such a demand.
[1:53:22] I think you could put an apartment on the airport runway,
[1:53:27] and it would fill up.
[1:53:29] There is such a demand.
[1:53:30] I mean, this is not.
[1:53:32] not someplace that's hard to get to. I mean, you can get to employment centers pretty easy
[1:53:38] from here. So this is in a stretch. Have we done anything exactly now? We haven't. Any property
[1:53:46] that we go to, I mean, they're all different. But we are building retail. I mean, we're taking
[1:53:53] down theaters. We're talking, that's a repeat myself. But there is a movement of mall developers
[1:54:01] to redevelop existing malls with more multi-family.
[1:54:05] I mean, that's a trend.
[1:54:06] I mean, just a Google.
[1:54:07] I mean, it's a trend.
[1:54:08] It's what's going on.
[1:54:09] I don't disagree with that.
[1:54:10] You're bringing your shoppers.
[1:54:11] But we haven't had anything.
[1:54:13] Have we done something similar to this?
[1:54:16] But have we developed in residential areas?
[1:54:19] This far off the freeway?
[1:54:22] I mean, we're not talking mild and mild,
[1:54:24] but it's not right on the freeway, like, say,
[1:54:27] Frisco is.
[1:54:28] No.
[1:54:28] And I know it's not, but yes, we have.
[1:54:33] I mean, I live in an area called Pantavita Beach in Florida.
[1:54:38] I live in Dallas, too, and it's 28,000 people,
[1:54:42] and it's a very affluent beachside community.
[1:54:45] And no one drives there, and I built some apartments there,
[1:54:48] and they filled up, and it's very nice.
[1:54:53] So people will, I think, what makes this site attractive
[1:54:57] for an apartment developer, okay, we were asked to participate in this. I mean the owner
[1:55:03] thought this would be what would be needed to take it into the next generation
[1:55:08] and wherever the retail goes. So being invited to this group, Shawnee, the interview 10
[1:55:16] groups, I mean national, you know, it's the who's who, and for whatever reason we were fortunate.
[1:55:22] But I look at this and why once you want to come home here in travel, but when you come home
[1:55:31] you have a beautiful place to live, I mean why wouldn't you do that?
[1:55:36] Why wouldn't you drive an extra 510 miles because once you get there, example I live
[1:55:42] at the beach, but I commuted 30 minutes because when I came home I was at the beach and
[1:55:46] drive that. You got the same thing here, same situation here. Why do I want to live on 35 with
[1:55:54] a highway there in the noise, where I can drive five minutes west and be in this community.
[1:56:04] With a retail and I can go right downstairs, I can get a sandwich, I can get a drink, I can meet
[1:56:08] some friends. It's a no-brainer. Whole foods right there. So it's not hard. I mean, we
[1:56:16] want to be collectively betting 75 million that we hope they come.
[1:56:22] Well, I guess we're always going. It was a different direction. Where my question is going is,
[1:56:30] The Highly Village has always been a lakeside community, single family, lakeside community,
[1:56:38] and whereas other places that you have developed, they've been communities that had room
[1:56:43] to grow, room to accommodate multi-family and keep, I guess, a firewall, if you will, between
[1:56:51] multi-family and single-family residential, and obviously given the outspoken nature of our residents
[1:56:58] last October through the election season this spring,
[1:57:04] it's still a really, really tough rock
[1:57:06] to push up a really tall mountain, you know, I'm trying to, I'm trying to, how do you integrate
[1:57:11] this project into what is an established culture in our city?
[1:57:16] Well I think, it's a great question, I understand the issue, it's quite clear,
[1:57:26] but the
[1:57:26] It's four and a half million people that are coming here to the center.
[1:57:32] You have 17,000 people here.
[1:57:35] The majority of the people are coming from outside of Highland Village, and you know what?
[1:57:40] They live in apartments.
[1:57:42] So you have apartment people coming to Highland Village to shop.
[1:57:47] And I'm sure there's a great cause that's what they do.
[1:57:50] That's what apartment people do is they go out to eat.
[1:57:52] So I bet you you're getting everyone from the neighboring communities, all the apartments coming
[1:57:59] here, T. So the concern about apartments and maybe the profile of the tenants, you have
[1:58:05] them here in the city's not burning down. So I think what we are proposing is to build something
[1:58:14] better than what they have built. So I don't know that it still may not be receptive. I understand
[1:58:20] that. But again, we were asked to participate in this with a goal. Okay, this is a beautiful
[1:58:29] neighborhood.
[1:58:31] So we have to build something nice. And we have to profile the people in the
[1:58:36] rents and the amenities. We will have people similar to the residents here or the audience
[1:58:42] here, we'll live in the apartments, maybe not specifically them, but people like them. They make
[1:58:47] the same amount of money or more that want a quality of life.
[1:58:51] I don't think we're going to overburden schools.
[1:58:53] I mean, we're not building three bedrooms.
[1:58:56] But we are building, we're building in opportunities,
[1:59:03] we're building something right now, we're in McKinney.
[1:59:07] We got a thousand units proposed and we have residential nearest.
[1:59:11] So we're kind of getting ready to do that too.
[1:59:14] So, but this is a special place.
[1:59:17] We won't be here if it wasn't, and I understand the concerns, and it's up to the city
[1:59:23] to decide that that fate, but I just want to say as Sean did, I mean, Sean representing
[1:59:30] being the owner,
[1:59:34] whether we do want another apartment here, that's where fine, but you have
[1:59:39] wonderful partner here. I mean, hey, they're world-renowned. I mean, they are world-renowned.
[1:59:48] And you have a tremendous partner here. Whether we do apartments here or not, I think I think
[1:59:53] the city is fortunate because they do do a wonderful job in taking care of their assets.
[2:00:00] If there's no purpose, they will continue to develop this and make it the best they can. I think the thought is, how do we take it to the next step and collectively, the industry is doing this. So I think they're just doing what the industry is doing.
[2:00:16] So I'm going to ask some traffic related questions. The first set of questions are for you and then I think a couple for you.
[2:00:25] How many spaces, parking spaces are currently located on the site that you're...
[2:00:32] I think there's 440.
[2:00:35] Okay, so 400 will take your numbers as gospel.
[2:00:39] I'll do that one now.
[2:00:40] It should be real close gospel.
[2:00:43] And then if you build how many external spaces,
[2:00:48] spaces outside the parking garage would be left.
[2:00:51] So I think it's on the south side that I see some that would be that would remain.
[2:00:54] Do you have any idea how many of those would be?
[2:00:57] And I would be the north side.
[2:00:59] North side I'm sorry.
[2:01:00] I have all these numbers in my head.
[2:01:14] I was right.
[2:01:15] 440.
[2:01:17] All right.
[2:01:21] Right now, what we're going to be doing is we're providing.
[2:01:24] We're going to provide six hundred eighty-one spaces.
[2:01:27] the majority, which would be resident only space.
[2:01:30] The 420 of the residential, so we'll have 261 spaces available for the retail.
[2:01:36] First is the 440, but you still have the retail spaces behind the center.
[2:01:43] Does that have two hundred and sixty for retail?
[2:01:45] I think that would.
[2:01:46] Number 261.
[2:01:47] Does that include those the line of spaces on the north side?
[2:01:51] Yes.
[2:01:51] Okay, so it's a net loss of approximately 200 parking spaces for retail.
[2:01:57] Yes, 180.
[2:02:01] And in terms of-
[2:02:02] Well, one thing we're doing, excuse me, one second.
[2:02:05] One thing we're doing, mayors were presuming snuffers move away,
[2:02:10] and they would probably take somewhere.
[2:02:13] If you did 10, they'll probably somewhere around 60 or so.
[2:02:15] So we're 180 to let 60, so about 120 sure.
[2:02:19] And you're talking, we're talking about 260 units in the complex.
[2:02:24] I'm sorry.
[2:02:29] I'm guessing at 1.5 people per unit.
[2:02:34] You're looking at somewhere between 300, 350 cars.
[2:02:37] It would be residential cars.
[2:02:40] That would be at that be a safe guess.
[2:02:42] In the garage.
[2:02:43] Well, there would be 420.
[2:02:45] 420.
[2:02:48] Have you done any, do you have any data that shows, and I know this is, this is hard in the time we're living in right now?
[2:02:55] Any data that shows the trends on going forward of people teleworking versus return to work?
[2:03:04] Well, they absolutely are, and the trend is, I know we have, maybe a parking expert here, the trend is to less parking for residential and then to the co-parking.
[2:03:14] We haven't done a parking study on it.
[2:03:17] I'm not talking about parking now, I'm talking about the people.
[2:03:19] How many of these do you not have any projections on how many people will be able to stay
[2:03:23] home and work versus people that will still have to at some point return to an office and
[2:03:28] be traveling?
[2:03:29] Well, I think they have different,
[2:03:33] I would say the majority of the people are staying home
[2:03:37] at least one day, the majority.
[2:03:40] I would say, you know, we're probably 20% work from home and what we're doing is we're expanding
[2:03:51] our co-work space.
[2:03:53] So we started with the typical, we have a little office with a booth and three computers
[2:04:00] and that was it.
[2:04:02] I mean, now we're going to like 1500 square feet, I mean, that's size this auditory.
[2:04:06] And we're putting conference rooms and podcasts and open areas.
[2:04:12] So we are developing and expanding our co-work space so people can work here.
[2:04:19] And the inventories you put, I mean we're putting Java bars.
[2:04:22] I mean we're making it really convenient for everyone to stay home.
[2:04:27] So the mayor I don't have, I don't have any facts.
[2:04:31] I just know that we are building larger co-work space.
[2:04:34] they're selling them up, we're making a bigger, I would say minimum 20 percent, but I would say
[2:04:41] probably close to 80 to 90 percent or stay in home at least one day. And at the 288 units at
[2:04:48] 1.5 per unit that turns out to be how many total people living there? 420? I'm sorry, it's
[2:04:57] Yeah, 420.
[2:04:58] 420.
[2:05:01] 80% of that.
[2:05:03] I'm not sure what that number comes out to, so this is where I'm going to probably start
[2:05:07] there.
[2:05:09] Well, I would say there.
[2:05:10] I mean, the numbers were throwing out her guesses.
[2:05:12] I understand.
[2:05:12] So they're not factual, but the trend is absolutely going where more people are working remotely.
[2:05:19] Absolutely.
[2:05:20] So where I'm going is the traffic study.
[2:05:23] I know that was a big point of discussion back in October.
[2:05:28] I think it's safe to say it would be a big point of discussion coming out of this meeting as well.
[2:05:34] And I've got to admit, I'm a skeptic of what the projection show.
[2:05:37] If we're talking about 80% of your residents are still going to be commuting at least,
[2:05:45] you know, one, if not three or four days a week or even five,
[2:05:50] I'm questioning how that only adds 1% to the traffic numbers, added intersection that is already our busiest and most dangerous intersection, and that's not going to change anytime soon.
[2:06:05] Sure, so I'll start by saying the work from home, all that, it's so fluid right now that none of the traffic projections that we're doing account for any of that.
[2:06:18] The IT that I mentioned, the Institute of Traffic Engineers that provides these data that we use, it's not updated.
[2:06:26] right so we're we're still living in the average person is commuting to it from every day so
[2:06:33] start with that also say that one thing that is unique about this development that has been
[2:06:40] talked about a lot tonight is specifically in the PM or weekends what have you there's going to
[2:06:49] trips that are taken by the development, right? Instead of me driving a half mile a mile
[2:06:57] to down the road, I'll just go to the grocery store on-site. I'll just walk there.
[2:07:01] So there's some trips that are taken in by the development. That is factored in. That is an
[2:07:08] IT-E standard. That is described in the report. The reason that the PM peak is only a slide
[2:07:18] increase is because, you know, hold the tomatoes at me for this one. But retail is a higher
[2:07:26] traffic generator than multi-family. That's what the data shows. That's what we use across
[2:07:33] the board across the country. Those retail trips are happening in the evening. Right? People
[2:07:38] are going to snuffers in the evening. So we're competing with what we're recognizing as retail
[2:07:47] traffic in the evening when we're comparing existing to
[2:07:51] proposed. That's why you see the morning going up and
[2:07:55] again to address the 80% of the 420.
[2:08:02] Not everyone leaves the same
[2:08:03] time. That's why we study these over hours. That's why we studied
[2:08:08] this one over the whole day. That's why we do the projections as we
[2:08:11] do them because there's mornings when I leave the house at 630 to get
[2:08:15] to the office, there's mornings where my daughter
[2:08:18] caused me to leave the house at 9 a.m.
[2:08:20] So, I think we're all leaving, we're all doing things
[2:08:24] at various hours throughout the day,
[2:08:26] and we have to take that into account
[2:08:29] when we're doing these projections as well.
[2:08:31] Dan, I actually, with the stay at home model,
[2:08:32] actually, the traffic at the peak times is probably less,
[2:08:36] and it would be, if everybody went to work,
[2:08:39] because at 9 o'clock or 830 people are sitting there
[2:08:41] in their jammies and cooking coffee in their kitchen rather than in their car going to work.
[2:08:49] I'll get to that.
[2:08:49] And that'll fluctuate because we won't be this way forever.
[2:08:53] I get that.
[2:08:54] I'm looking at it from the perspective of it and this conversation that we're having
[2:08:58] in other parts of city business that this is a traffic wise.
[2:09:03] It's a terrible location.
[2:09:05] And there's very little we can do about it to make it better, at least at this point.
[2:09:08] I think that's all I had for now.
[2:09:17] Anybody else have anything?
[2:09:18] Plainz, you know, follow-up, sorry.
[2:09:20] I don't like that.
[2:09:23] I wish I know.
[2:09:24] Oh, there you go.
[2:09:26] Go ahead.
[2:09:26] Go ahead.
[2:09:28] So I kind of have a thought here.
[2:09:31] Maybe maybe just to simplify it in my mind.
[2:09:35] And maybe for some of the people sitting here and watching.
[2:09:38] Well, last two years, what have you guys been in?
[2:09:45] I've already lost for, you know, say it on the 2020, 2021.
[2:09:53] What did that look like if you feel like sharing?
[2:09:57] Yeah, we did make money.
[2:10:02] our revenues were down something like 40%, it was really difficult for retailers and
[2:10:11] you know that meant sometimes we weren't able to pay rent that month but we did work
[2:10:16] with everyone and we got through it so yeah it could have been really bad but we got through
[2:10:24] it.
[2:10:25] is this building, you know, bringing people closer to retail is really that versus like building
[2:10:34] more shop. Is this more of a, you guys having the ability to track, get in pieces from
[2:10:42] certain type of tenants, where there's apartments already there versus, I mean, is the issue
[2:10:48] here, you know, you build some apartments and get more foot traffic, like obviously instantly
[2:10:55] right? They're there. Versus like the the the organic development that's going around in all the
[2:11:01] different you know cities around highland village whether it's apartments or homes. What's the
[2:11:09] thought is it is it when you put in apartment there's it's easier to maybe attract some of this you're
[2:11:14] talking about future proofing some of the different retail that you're looking in bringing. Is that really
[2:11:20] Just hey, you build this put $75 million in, and is the issue attracting retail, Thailand village?
[2:11:29] Yeah, I feel like that's like a Dallas way, right, Jerry Jones, he put money in and people shut up to the games.
[2:11:36] No, absolutely, there's a couple of layers to that, right?
[2:11:40] So, at a fundamental level, what we're trying to accomplish with this is satisfying the current tenants.
[2:11:45] feedback which is bringing blood to the seats and increasing daily foot traffic, increase
[2:11:52] knock and so on. So we think this does accomplish that. Without a doubt, this area has
[2:11:59] grown significantly. I totally get the growing pains to the community. We are thinking for
[2:12:05] this site, though, is a lot of a term plan and maximizing the utility, I think, other shops.
[2:12:12] Whole Foods, we own in the shopping center, and I think during COVID, there's sales when
[2:12:17] up, something like 30%, that's, in my opinion, the reason behind that is the growth
[2:12:24] we're seeing around the communities, people shopping, ordering delivery, you know, that's
[2:12:29] definitely happening, but there's so much more for the center to go, based on our total retail
[2:12:36] portfolio and looking at metrics for a healthy shopping center.
[2:12:41] That's why we need to put a money where I'm not this and help them.
[2:12:47] Without a doubt, you throw a big project like this and make a splash.
[2:12:53] I think the gut reaction is we don't need that.
[2:12:55] But it does attract tenants to know that you have a landlord and operator and owner
[2:13:02] that are going to take care of the center.
[2:13:04] You know, the retailers are making significant commitments,
[2:13:07] these least to sometimes, or 10, 20 years.
[2:13:11] You know, you have a handshake agreement with AMC,
[2:13:14] is that just a year extension?
[2:13:17] I will say that's not done yet.
[2:13:19] Okay, and the world is increasing.
[2:13:22] It's not a multi-year extension.
[2:13:24] It would be a multi-year extension.
[2:13:27] But again, it's not done and, you know,
[2:13:30] we'll try to do our best to get that done.
[2:13:31] And is this in response to, if the AMC were to go away tomorrow, what's that impact on the shops and you guys?
[2:13:42] Yeah, so I mean, and I'm talking about just money, right?
[2:13:46] Like, what would that impact look like?
[2:13:48] Yeah, I'm not sure we can disclose economics of that particular deal, but it would be over a million dollars in impact.
[2:13:58] AIMC is our anchor, you know, it was developed and intent to drive a sniffing amount of the foot traffic and, you know, sort of shore up the tendency around there.
[2:14:10] There are a lot of restaurants in that area. We have Mount Fuji, you know, Seoul Creek, Rockfish, which I'll get to in a second, you know, there's probably five or six restaurants there.
[2:14:25] You know, dying in a movie that's pretty classic, but you know, it's not all, it's not all great, I mean we just found out in past couple months, right Josh, that one of our strengths is going to be closing in the next couple months.
[2:14:42] So, you know, for theories we back in, like Josh was saying, you know, really successful first half of the year, you know, we can be doing more and we're trying to do more, we're trying to play off and say,
[2:14:54] So what is plan B if something happens to MC if they don't renew the lease?
[2:14:59] I know that.
[2:15:00] But originally, a year ago, the thought was that AMC would not survive, so therefore there was a phase 1 and a phase 2, if by chance AMC does not renew their lease or if something happens, what does plan be?
[2:15:10] Yeah, I mean, best case scenario is AMC stays on the path, right?
[2:15:14] Worst case scenario. The backup plan would be to try to find a backfill.
[2:15:19] You know, I think the, like, Josh was saying, look at the box office, the year volumes down.
[2:15:25] It's not very encouraging for new operators to take new space.
[2:15:29] That's kind of the challenge of the industry right now.
[2:15:32] And again, this is a big footprint.
[2:15:35] You need to kind of find it back a operator for it to make sense.
[2:15:39] Alternatively, you are reconditioning that space, putting several million dollars into that.
[2:15:46] It would essentially require a full demo if not scripted the building.
[2:15:51] It's very rare to find that size of tenant, you know, and you're talking about a community
[2:15:57] of 17,000 people,
[2:16:01] you know, that's like, you know, we see that cross street with the
[2:16:05] wallmarks and, you know, those big blocks were just difficult to lease, so you're talking
[2:16:10] about time, you're talking about millions of dollars extra money into that, and you're kind
[2:16:16] not really addressing, so what we're focused on, which is trying to deliver impact the current
[2:16:22] tenants. So, absolutely, if we get that back, we will do what we need to do. That's our client
[2:16:27] expects us to do. And, you know, Josh and Team will do something at that done. But, you know,
[2:16:34] we need to absolutely consider the possibilities that AMC does not happen, or three, four,
[2:16:40] ten years down the road. They decide, you know, they don't want to be in the business anymore.
[2:16:45] It's just pretty business, so yeah.
[2:16:52] You mentioned a restaurant going out of business, are you able to say which one that is?
[2:16:57] I don't think I will at this time.
[2:17:00] One last question, one last question.
[2:17:03] Based on the construction timelines, we're going to assume that there's going to be quite a bit of a overlap between text.construction on 407 to 2499 along with construction of the building itself.
[2:17:13] I think piece on timing, it seems like that project scope will be a little bit ahead of where our development plans would be.
[2:17:24] Absolutely, you know, the time lines are pretty close in sync, but I look at that as a partnership to work with them to try to make sure we're not making issue worse.
[2:17:33] You know, the fact when that does get cleared up, you know, I think it gives us more flexibility to actually get off the ground there too.
[2:17:44] So, yeah, we can be flexible with timeline.
[2:17:47] For sure.
[2:17:47] My final two comments.
[2:17:50] One, you AMC, and I don't want to go down this rabbit hole, and I'm not opening this up for any rabbit hole that I'm about to sound like I'm going down.
[2:17:59] AMC is a major big problem.
[2:18:01] Boarder books is more of what you need to worry about.
[2:18:04] Massive score footage, people by books online.
[2:18:06] So that's not your only challenge that you're facing in the future, but we don't have
[2:18:10] to go there.
[2:18:11] But my comment, and I want to make it very clear when I make this comment that this comment
[2:18:15] does not echo any support for or against what I'm about to say.
[2:18:20] but Jared to your comment about the apartments driving retail.
[2:18:30] Without disclosing, there's a pre-successful shop concept
[2:18:36] that's a couple of towns over to the west
[2:18:39] that I've been involved in from a banking perspective
[2:18:42] that has to the west.
[2:18:44] I'm sure your wife goes over there every now and then.
[2:18:47] That does have a multi-family concept attached to it, and I can tell you for fact that it does drive retail.
[2:18:56] It retail, the more established the names, they look at the demographics, they look at the surrounding areas.
[2:19:03] And when they see multi-family, any type of multi-family sitting there, it's like it's gold money.
[2:19:10] Now that doesn't mean that I support this, not one bit, but that is a proven fact.
[2:19:15] So, anyway, that, I'm done.
[2:19:19] Okay, last, last call, any other questions?
[2:19:22] Everything.
[2:19:24] Thank you.
[2:19:25] Thank you for coming and answering questions in your presentation to our residents.
[2:19:29] Thank you for coming and being good listeners.
[2:19:33] This is in my opinion.
[2:19:35] This is a much better representation of what our city is about than what we saw in October.
[2:19:40] I really appreciate everybody listening closely and intently.
[2:19:44] And I'm sure we're going to have a lot of discussions this month forward and I want to emphasize there is a process for this, assuming that they decide to move forward.
[2:19:53] They will have to submit an application for a zoning change first, that has a process that goes through.
[2:19:58] Then there is a process, if that were approved, it has to happen.
[2:20:01] It's could take a long time.
[2:20:03] I would ask everybody to be patient.
[2:20:05] Let the process work.
[2:20:06] Let City staff who do a fantastic job.
[2:20:09] Let them do their job.
[2:20:10] And, you know, whatever happens will happen.
[2:20:14] I don't want to make any predictions or anything like that,
[2:20:16] but I just ask a we all be patient
[2:20:22] and whatever's right we'll prevail.
[2:20:25] But thank you.
[2:20:25] That concludes our meeting.
[2:20:26] We are now adjourned.