[00:00:01]
ALL RIGHT, SO WE'LL GET STARTED.UM, DO WE HAVE A CONFIRMATION THAT WE HAVE A QUORUM PRESENT OF THE CPAC? OKAY.
WE DO HAVE A QUORUM PRESENT OF THE CPA.
SO FIRST ORDER OF BUSINESS, PLEDGE OF ALLEGIANCE.
UM, FIRST FEW ITEMS ARE JUST A LITTLE BIT OF HOUSEKEEPING, UM, AS EVERYONE HAD A CHANCE TO REVIEW THE MINUTES.
UM, WE'LL START WITH THE MINUTES FROM NOVEMBER 1ST, 2023.
AND DOES ANYONE HAVE ANY CHANGES TO THE MINUTES THAT WERE CIRCULATED ALONG WITH THE PACKET? OKAY.
[1. Consider Action on the Minutes from the November 1, 2023 Comprehensive Plan Advisory Committee Meeting.]
THE MINUTES FROM NOVEMBER 1ST, 2023? CATHERINE AND AL AS A SECOND.[2. Consider Action on the Minutes from the December 14, 2023 Comprehensive Plan Advisory Committee Meeting.]
TWO MINUTES FROM THE DECEMBER 14TH, 2023 MEETING.ANY CHANGES TO ANYTHING ON THOSE MINUTES? RIGHT.
DO I HAVE MOTION VOTE ALL ANGEL JIM.
DECOR WITH A SECOND? ALL IN FAVOR? AYE.
[3. Consider Action on the Minutes from the January 24, 2024 Comprehensive Plan Advisory Committee, Planning and Zoning Commission, and City Council Joint Meeting.]
UM, MINUTES FROM THE JOINT MEETING.SO THESE MINUTES WILL BE APPROVED BY US, THE CPAC, UH, AND THEN THEY'LL BE APPROVED BY P AND Z AND THEN APPROVED BY THE COUNCIL IF THEY HAVEN'T ALREADY BEEN REVIEWED BY P AND Z AND THE COUNCIL.
SO, UH, WE'LL PASS IT AND THEN, UH, THEY WILL AS WELL.
UM, ANY CHANGES TO THE MINUTES FROM JANUARY 24TH? 2024? YES.
SO, UM, JUST TO NOTE THAT YOU WERE NOT HERE.
SO SUBJECTS TO AND INCLUDING THOSE CHANGES.
DO I HAVE A MOTION? TYLER, TYLER, WRIGHT, AND LIZ WITH A SECOND.
UH, ALL IN FAVOR OF, UH, THE MINUTES AS, UH, AMENDED? I, ANY OPPOSED? ALL RIGHT.
WHAT'S THAT? DO I NEED NO, YOU'LL, YOU'LL DO P AND Z WILL CONSIDER 'EM, AND THEN THE COUNCIL WILL CONSIDER 'EM, AND EACH BODY WILL APPROVE THEM.
SO WHEN THEY COME TO YOU, THEY'LL HAVE THOSE TWO CHANGES OUT OF OUR COMMITTEE.
[4. Present and discuss the Advance Addison 2050 preliminary market assessment.]
PRESENT AND DISCUSS THE ADVANCED ADDISON 2050 PRELIMINARY MARKET ASSESSMENT.KEN, WHO'S, UH, WHO'S DOING THIS? THANK YOU.
UH, OUR, UH, PROJECT CONSULTANT KEVIN SHEPHERD, UH, FROM VIRGINITY, UH, WILL BE, UH, LEADING US THROUGH THE PRESENTATION.
UH, WE ALSO HAVE A MEMBER OF HIS TEAM THAT, UH, IS NOT LOCAL TO DFW, THAT WILL BE JOINING US VIRTUALLY AS WELL.
AND WHO'S THAT? UH, IT'S, UH, THE ECONOMIC DEVELOPMENT ANALYST, UH, FROM HAWS HILL.
WHAT'S THE NAME? TONY ALLEN THERE.
GOOD TO SEE YOU ALL, UH, FOR THE THIRD TIME, I BELIEVE.
UM, HOW MANY OF YOU HAD A CHANCE TO DIG THROUGH THAT, UH, REALLY THICK PACKET IN THE LAST COUPLE DAYS? GOOD.
UM, HOW MANY OF YOU THOUGHT THAT PACKET KIND OF JIVED WITH YOUR UNDERSTANDING OF THE ADDISON COMMUNITY? ANY, ANYBODY FEEL STRONGLY OPPOSED TO ANYTHING THAT WAS IN THERE? COOL.
LET'S, UM, JOY, SHOULD I POINT TO ADVANCE? OH, IT'S ON.
[00:05:02]
ALL RIGHT, HERE WE GO.SO, HERE'S A QUICK, UH, AGENDA FOR WHAT WE'RE GONNA COVER.
GIVE YOU AN UPDATE ON THE PROGRESS.
UM, WE'RE GONNA TALK, UH, A LITTLE BIT ABOUT, UM, YOUR DEVELOPMENT, ADDISON'S DEVELOPMENT TO DATE.
SO THE, THE HISTORICAL DEVELOPMENT PATTERN.
I'M GONNA TALK ABOUT THE FISCAL BENEFITS OF HOW YOU ALL HAVE DEVELOPED OVER THE LAST, UH, 40, 50 YEARS.
WE'RE GONNA GET INTO WHO LIVES IN ADDISON TODAY.
UH, TONY ISLANDER FROM S HILL, AS KEN WAS JUST MENTIONING, IS GONNA GO OVER THE PRELIMINARY MARKET, UH, RESEARCH THAT'S BEEN DONE.
UM, WE'RE GONNA TALK A LITTLE BIT ABOUT WHAT WE'VE HEARD FROM THE COMMUNITY TODAY, THE, THE LAST TRIP THAT WE HAD.
WE GOT INTO ASSETS AND VALUES AND, UM, ASPIRATIONS, AND GIVE YOU KIND OF A SNEAK PEEK AT, AT WHAT WE'RE, UH, SEEING FROM THOSE TAKEAWAYS.
AND THEN TALK ABOUT NEXT STEPS.
SO, TIMELINE, DON'T NEED TO SPEND A LOT OF TIME ON THIS.
WE'RE, UM, KIND OF IN THE, THE END OF THE DATA COLLECTION ASSESSMENT PROCESS ABOUT TO MOVE INTO LOOKING FORWARD INTO THE STRATEGY, UH, DEVELOPMENT, EVERYTHING TO DATE, THE DATA ANALYSIS, THE, THE SURVEYS, UH, THE WORKSHOPS, THE ENGAGEMENT THAT'S BEEN DONE.
ALL OF THAT'S GONNA BE ROLLED UP INTO, UH, A DOCUMENT THAT YOU ALL WILL SEE THE END OF NEXT MONTH.
THAT'S GONNA KIND OF PUT A BOW OF TO ALL OF THE, OR INITIAL INPUT.
UM, AND THEN GIVE US KIND OF THAT JUMPING IN OFF POINT INTO THE STRATEGY DEVELOPMENT.
SO LET'S TALK ABOUT THE, THE HISTORY OF, OF ADDISON.
UM, THE 2013 COMP PLAN HAD A, A VERY ROBUST SECTION ON THIS, THAT, THAT HAD A LOT ABOUT THE HISTORY.
UM, A COUPLE THINGS THAT JUMPED OUT TO US.
THE, THE VERY FIRST ONE THAT YOU SEE, THAT IMAGE ON THE LEFT THERE, UH, THERE'S A LOT OF CONVERSATION TODAY IN COMMUNITIES ABOUT TRYING TO, UM, RECONNECT COMMUNITIES THAT WERE DIVIDED BY HIGHWAYS.
THERE'S BEEN CONVERSATION ABOUT 3 45 IN DOWNTOWN DALLAS.
THERE'S OTHER, OTHER CITIES ACROSS THE COUNTRY THAT ARE TALKING ABOUT HOW CAN WE QUOTE, TEAR DOWN THIS HIGHWAY AND STITCH THOSE NEIGHBORHOODS BACK TOGETHER.
YOUR TOWN COUNCIL WAY BACK IN THE SEVENTIES, UH, INVESTED IN, UH, AS I UNDERSTOOD IT, CONTRIBUTED SOME OF THE TOWN RESOURCES TO DEPRESS THAT SECTION OF THE TOLL WASTE SO THAT YOU COULD HAVE AN AT GRADE CROSSING TO CONNECT EAST AND WEST ADDISON.
SO, WHILE THERE'S A LOT OF CHALLENGES THAT WE'RE GONNA TALK ABOUT IN THIS PLAN ABOUT HOW DO WE CONNECT EAST AND WEST ACROSS THE TOLLWAY, WE KNOW THAT'S AN ISSUE.
UH, BUT IT WOULD BE MUCH, MUCH HARDER TO DO IF THAT SECTION OF THE TOLLWAY WAS ACTUALLY AT GRADE, LIKE IT WAS ORIGINALLY, UH, PLANNED TO, TO BE SO VERY, JUST EVEN WAY BACK THEN.
THERE WAS FORESIGHT FROM TOWN LEADERSHIP IN THINKING ABOUT HOW ADDISON'S GONNA BE DIFFERENT THROUGH THE YEARS YOU'VE PRIORITIZED PARKS.
THERE WAS A, UM, A VERY FOCUSED INTENTIONAL EFFORT ON DENSITY AND WALKABILITY AND TOWN HOMES AND KIND OF A MIX OF HOUSING TYPES THAT WAS, UM, VERY PROGRESSIVE AND FORWARD THINKING AND INNOVATIVE AT THE TIME.
UH, AND SO A LOT OF WHAT WE HEAR TODAY HAVE HEARD TODAY IS WE WANT TO CONTINUE THAT INNOVATIVE SPIRIT, UH, OF ADDISON, AND HOW DO, HOW DO WE CARRY THAT FORWARD? BUT BACK WHEN IT WAS STARTED, WHEN THINGS LIKE ADDISON CIRCLE AND VITRUVIAN WERE IN THE PLANNING STAGES, THAT WAS NOT HOW MOST OF NORTH TEXAS WAS THINKING ABOUT DEVELOPMENT.
SO YOU MOVE FORWARD TO THE 2013 PLAN.
UM, THAT'S REALLY THE WHERE ADDISON STARTED TO TRANSITION INTO REDEVELOPMENT, FILLING IN THE, THE SPACES THAT WERE LEFT, UM, DOING SOME SUB AREA PLANS OR SMALL AREA PLANS FOR, UH, YOU KNOW, VITRUVIAN FOR THE INWARD CORRIDOR.
THERE'S A NUMBER OF 'EM THAT ARE, THAT ARE MENTIONED IN THERE, BUT THAT WAS REALLY WHERE ADDISON STARTED TO SHIFT FROM HOW DO WE BUILD OUT OUR, OUR GREENFIELD UNDEVELOPED AREA INTO HOW DO WE FILL, START TO FILL IN THE GAPS AND, AND START TO ADD AND, AND DEVELOP AND, UM, ADD SOME THINGS THAT ARE MISSING, UM, IN THE COMMUNITY.
SINCE THAT PLAN, UM, I THINK ADDISON HAS DONE A, A VERY, VERY GOOD JOB OF FOLLOWING THAT PLAN OF STICKING TO THOSE PRINCIPLES THAT WERE IN THERE, UH, FILLING THE GAPS, TRYING TO IMPROVE CONNECTIVITY, STAYING TRUE TO WHO ADDISON HAS BEEN WITH QUALITY PARKS AND PUBLIC SPACES AND THAT WALKABILITY COMPONENT.
UM, AND SO AS WE SIT HERE TODAY AND THINK ABOUT THIS PLAN IN THE NEXT 20 OR 30 OR 40 YEARS, HOW DOES ADDISON LEVEL UP? HOW DOES ADDISON TAKE THOSE THINGS THAT THAT'S MADE YOU SPECIAL, UM, AND CONTINUE TO KIND OF PUSH THOSE BOUNDARIES AND, AND INNOVATE, UM, AS YOU'RE REALLY TRANSITIONING INTO FULL ON REDEVELOP, YOU KNOW, REDEVELOPMENT.
WHAT DO WE, WHAT ARE PLACES OF THE COMMUNITY THAT WE WANT TO PRESERVE? WHAT ARE PARTS OF THE COMMUNITY THAT MAYBE WE WANT TO ENHANCE WITH A LITTLE BIT OF, OF REDEVELOPMENT OR INFILL? UH, AND THEN WHAT ARE THOSE PROPERTIES THAT WE WANT THAT, THAT WE, THE COMMUNITY THINK NEED TO BE SCRAPED AND, AND REDEVELOPED, UH, TO, UM, YOU KNOW, ADD SOMETHING THAT'S MISSING TO THE COMMUNITY?
[00:10:01]
SO THIS PART HAS BEEN INTERESTING.THE, THE LAND USE FISCAL ANALYSIS IS, IS SOMETHING YOU ALL HEARD IN THE, THE VERY FIRST PRESENTATION I GAVE.
IT'S, IT'S THE CENTRAL THING THAT VIRGINITY DOES.
EVERY, ALL OF OUR WORK IS BASED ON THIS IDEA OF HOW CAN WE ALIGN CITY'S DEVELOPMENT PATTERNS WITH WHAT RESIDENTS ARE WILLING AND ABLE TO PAY FOR, NOT JUST TODAY, BUT OVER TIME.
MOST OF THE TIME WHEN WE DO THIS WORK, WE'RE, WE'RE TALKING WITH CITIES ABOUT HOW THEY'RE BEHIND ON INFRASTRUCTURE COSTS, HOW THEY'RE GETTING UPSIDE DOWN ON AFFORDABILITY, UM, AND HOW THEY'RE THE EXPANSIVE FOOTPRINT.
UM, WHEN YOU DEVELOP OUTWARD, WHEN YOU HAVE MORE LARGER LOTS, YOU HAVE MORE AUTOCENTRIC INFRASTRUCTURE, ROADS, ET CETERA, THAT ADDS A LOT OF COSTS.
THAT IN THE SHORT TERM, UM, COMMUNITIES DON'T SEE IT.
IT'S ADDING THE TAX BASE INITIALLY, BUT THOSE LONG-TERM COSTS, ESPECIALLY INFRASTRUCTURE CATCH UP WITH CITIES.
AND SO IF YOU THINK ABOUT FIRST, SECOND, FIRST AND SECOND RING COMMUNITIES AROUND DALLAS, IF YOU THINK ABOUT THE PLACES AROUND ADDISON, REALLY, IF YOU THINK ABOUT THE FARMERS' BRANCH, UM, OR A GARLAND MAYBE, OR A MESQUITE, SOME OF THOSE PLACES, THEY WERE THRIVING ACTIVE PLACES IN THE SIXTIES AND SEVENTIES, BUT A LOT OF THOSE NEIGHBORHOODS ARE IN NEED OF A LOT OF REINVESTMENT AND REPAIR, UH, TODAY.
DOES THAT, DOES THAT MAKE SENSE TO Y'ALL? UM, IF I PUT IT IN CONTEXT NATIONALLY, TEXAS IS STILL AHEAD, WELL, OR BEHIND, I GUESS WE'RE YOUNGER IN THE DEVELOPMENT CYCLE THAN MOST OF THE COUNTRY.
SO IF YOU LOOK AROUND THE COUNTRY TO, TO OTHER PARTS THAT WENT THROUGH THEIR GROWTH BOOM EARLIER THAN WE DID, THEY'RE THE PLACES THAT ARE REALLY, UM, YOU KNOW, REALLY IN DECLINE IN TRYING TO RECREATE THEMSELVES.
AND THAT'S PART OF THE DRIVER OF WHO'S MOVING TO, TO TEXAS.
I'M GONNA TALK ABOUT REGIONAL TRENDS AND WHO'S MOVING TO TEXAS HERE IN A MINUTE.
BUT THERE'S A LOT OF TALK ABOUT BOTH COASTS AND THE MORE AFFLUENT FOLKS MOVING TO TEXAS.
SO THEY'RE SELLING A HOME IN CALIFORNIA, AND THEY'RE COMING HERE AND BUYING ONE AND BUYING TWO OTHERS THAT THEY CAN RENT.
UM, BUT THERE'S ALSO A LOT OF FOLKS FROM THE CENTRAL PART OF THE COUNTRY THAT ARE IN THOSE DECLINING PLACES THAT JUST WANT TO HAVE THAT QUALITY OF LIFE THAT THEY'VE HAD FOR THE LAST 20 YEARS AND, AND WANNA GET THAT, UM, YOU KNOW, AS WELL.
SO WITH ADDISON, IT'S ALMOST THE EXACT OPPOSITE BECAUSE OF THE WAY THAT YOU ALL HAVE DEVELOPED OVER THE LAST 30, 40, 50 YEARS, THAT THE INTENTIONALITY WITH THAT, THE MORE COMPACT PATTERN, THE SMALLER, MORE FINITE CITY LIMITS, THAT IS A BIG PART OF WHY YOU ARE IN SUCH A STRONG FINANCIAL POSITION TODAY WITH YOUR MIX OF, OF PROPERTY TAX AND SALES TAX.
UM, IT'S, YOU'RE IN A MUCH STRONGER FISCAL POSITION THAN REALLY ANYWHERE THAT WE'VE, UH, STUDIED IN, IN TEXAS OR, OR OTHER STATES.
SO IT'S A, IT'S A LITTLE BIT DIFFERENT CONTEXT FOR THIS, BUT WHAT WE DO WITH THE, THE FISCAL ANALYSIS, WE FOCUS ON PROPERTY TAXES, UM, WITH THE IDEA THAT, UH, PROPERTY TAX UNTIL SOMETHING CHANGES THAT THE LEGISLATURE, UM, PROPERTY TAX SHOULD, UH, BE ABLE TO COVER MOST OF YOUR CITY'S BASIC SERVICES AND INFRASTRUCTURE OUTSIDE OF ENTERPRISE FUND, WHICH IS UTILITY STUFF, THAT'S, THAT'S SEPARATE.
BUT PROPERTY TAX SHOULD BE ABLE TO COVER YOUR STREET INFRASTRUCTURE AND A GOOD PORTION OF YOUR BASIC SERVICES, WHETHER THAT'S PUBLIC, UH, PUBLIC SAFETY, CITY ADMINISTRATION, ET CETERA, SO THAT YOUR SALES TAX REVENUE CAN GO TOWARDS QUALITY OF LIFE.
THINGS LIKE PARKS, PUBLIC SPACES, ECONOMIC DEVELOPMENT.
YOU GUYS HAVE A VERY GOOD MIX OF THOSE TWO, A VERY STRONG MIX OF THOSE TWO THAT I'LL TALK ABOUT.
BUT, BUT WE FOCUS ON THAT RELATIONSHIP OF HOW MUCH IS DEVELOPMENT GENERATING IN PROPERTY TAX, AND CAN THAT PROPERTY TAX PAY FOR THOSE BASIC SERVICES? BECAUSE IF IT CAN'T, THAT HAS TO BE SUBSIDIZED WITH OTHER REVENUE SOURCES LIKE SALES TAX OR OTHER FEES.
UM, SO THIS IS, UH, THIS IS HOW A LOT OF COMMUNITIES AROUND, UH, WELL, NORTH TEXAS, ACROSS TEXAS OVERALL, EVEN OTHER SUBURBAN, UM, SUBURBAN FOCUSED PLACES AROUND THE COUNTRY WHERE WE SEE A REALLY RAPID GROWTH PERIOD OF A COUPLE OF DECADES.
YOU START AS A SMALL TOWN, AND I'VE COVERED THIS I THINK IN A PREVIOUS, UH, MEETING A LITTLE BIT.
BUT, BUT THAT MIDDLE PART IS WHAT I WANT YOU TO LOOK AT THERE, WHERE THE MARKET OR THE DEVELOPMENT WILL COME TO YOUR CITY, YOU'LL ADD A LOT OF, A LOT OF POPULATION AND A LOT OF DEVELOPMENT OVER ONE OR TWO DECADES.
THE AVERAGE AGE OF YOUR CITY GOES DOWN BECAUSE SO MUCH OF WHAT'S BEING BUILT IS NEW.
THAT'S WHAT YOU SEE IN A FRISCO OR A ROCK WALL WHERE I LIVE, OR SOME OF THE FAST GROWING NEWER SUBURBS RIGHT NOW AS WE'RE BUILDING A LOT OF NEW STUFF.
SO YOU DRIVE AROUND, YOU SEE THAT OLD KIND OF QUAINT PART OF DOWNTOWN THAT MIGHT BE THAT HISTORIC DOWNTOWN, BUT OVERALL THE COMMUNITY LOOKS SHINY, NEW, NEW NEIGHBORHOODS, NEW SCHOOLS, NEW PARKS, BEST PLACE TO LIVE, WORK, PLAY, KIND OF KIND OF THING, RIGHT? BUT IF YOU KEEP GOING TO THE RIGHT OF THAT CURB, WHEN YOUR CITY STARTS TO RUN OUT OF THAT LAND TO DEVELOP,
[00:15:01]
UM, THE REVENUE THAT THE NEW GROWTH SLOWS DOWN, AND THE REVENUE FROM THAT NEW GROWTH SLOWS DOWN.SO THE REVENUE FROM IMPACT FEES AND ADDITIONAL TAX BASE, ALL OF THAT STARTS TO SLOW DOWN FOR YOUR COMMUNITY.
AT THE SAME TIME, ALL OF THE INFRASTRUCTURE AND THE STUFF THAT WAS BUILT BY DEVELOPERS IN THE GROWTH PHASE, THE STREETS, THE WATER, THE SEWER, THE PARKS, THE BUILDINGS, ALL OF THAT STUFF HAS TO NOT JUST BE MAINTAINED.
AND SO THAT'S DETROIT, MEMPHIS, SHREVEPORT, UM, EVEN SOME COMMUNITIES OUT OUT IN CALIFORNIA THAT, THAT I LIVED IN BACK IN THE, THE SE THE SEVENTIES, UH, WHEN, WHEN I WAS A, A YOUNG GUY, BUT, UH, REALLY YOUNG GUY.
UH, BUT THAT'S WHERE A LOT OF COMMUNITIES ACROSS THE COUNTRY ARE, ARE STARTING TO GET, THEY'RE IN THAT PINCH POINT OF OUR REVENUES ARE FLATTENING OUT, AND THE SERVICE COSTS, ESPECIALLY INFRASTRUCTURE, ARE REALLY STARTING TO ADD UP.
ADDISON DOESN'T HAVE THIS PROBLEM.
YOU'VE BEEN SMALLER, YOU'VE GROWN A LITTLE MORE GRADUALLY OVER TIME, AND ESPECIALLY YOU DON'T HAVE ALL OF THE INFRASTRUCTURE LIABILITIES THAT SOME OF THE LARGER, MORE SPREAD OUT COMMUNITIES HAVE.
SO, VALUE PER ACRE IS A METRIC THAT WE USE FOR THIS ANALYSIS.
WE LOOK AT THE PROPERTY TAX REVENUE THAT'S GENERATED BY A PROPERTY, WE DIVIDE THAT BY THE SIZE OF THE PROPERTY, AND YOU GET A REVENUE PER ACRE NUMBER, RIGHT? WE ALSO GET INTO ALLOCATING THE COST TO THAT ON A PER ACRE BASIS AS AS WELL.
BUT IF YOU THINK ABOUT JUST THE REVENUE SIDE RIGHT NOW, UM, TWO THINGS THAT THAT ARE IMPORTANT TO THINK ABOUT.
UM, THE FIRST ONE IS THE AMOUNT OF BUILDING THAT YOU PUT ON A PIECE OF LAND.
THE MORE BUILDING COVERAGE YOU HAVE, THE MORE REVENUE PER ACRE YOU'RE GONNA GET.
SO, UM, IN THIS EXAMPLE, YOU'VE GOT THE SAME SIZE, SAME SIZE BUILDING, BUT YOU PUT IT ON THREE DIFFERENT SIZE LOTS.
YOU'RE GONNA GET MORE REVENUE PER ACRE OUT OF THAT DEVELOPMENT, THE MORE BUILDING COVERAGE YOU HAVE.
SO THINGS LIKE PARKING, THINGS LIKE YARDS, THINGS LIKE OPEN SPACE, UM, THE MORE LAND YOU DEDICATE TO THAT, THE LOWER YOUR REVENUE PER ACRE'S GONNA BE.
UM, WE'LL SHOW, WE DO HAVE STUFF, ACTUAL EXAMPLES OF, OF SPECIFIC ADDISON PROPERTIES AS AS WELL.
BUT GENERALLY, THE MORE BUILDING COVERAGE YOU HAVE ON A LOT, THE HIGHER REVENUE PER ACRE, IT'S GONNA GET, NO ONE OF THESE IS RIGHT OR WRONG.
IT'S JUST UNDERSTANDING THE RELATIONSHIP THAT THE MORE BUILDING YOU PUT ON A PIECE OF LAND, THE MORE TAX REVENUE YOU'RE GONNA GET OUT OF IT.
THIS IS, THIS IS EASY TO THINK OF IN A RESIDENTIAL SENSE.
STREET, EVERYTHING'S EXACTLY THE SAME.
A ONE STORY HOUSE, A TWO STORY HOUSE.
THE TWO STORY HOUSE IS WORTH A LITTLE BIT MORE, SO YOU'RE GONNA GET MORE TAX REVENUE OUT OF IT.
SO THOSE ARE TWO THINGS THAT A CITY CAN DO WITH THE DEVELOPMENT PATTERN THAT CAN GENERATE MORE PROPERTY TAX REVENUE WITHOUT HAVING TO CHANGE THE TAX RATE.
IT'S PURELY A DEVELOPMENT PATTERN THING, RIGHT? UM, IF WE LOOK ACROSS ALL OF THE WORK THAT WE'VE DONE, NOT JUST IN ADDISON, THESE ARE SOME OF THE COMMON CHARACTERISTICS THAT YOU SEE.
UM, I MENTIONED THAT HIGH BUILDING FOOTPRINT, THE VERTICAL, UH, DEVELOPMENT.
IF WE ZOOM OUT A LITTLE BIT INTO PATTERN, IF YOU LOOK AT, UM, THE OLDER TRADITIONAL GRID TYPE STREETS THAT YOU SEE IN THOSE OLDER NEIGHBORHOODS, TRADITIONAL DOWNTOWNS, UM, VERSUS KIND OF THE LOOPS AND LOLLIPOPS, SUBURBAN CUL-DE-SAC KIND OF PATTERN.
UM, AGAIN, NO RIGHT OR WRONG, YOU NEED ALL OF THOSE IN A COMMUNITY TO WORK.
UH, BUT SOME ARE MORE FISCALLY PRODUCTIVE THAN THAN OTHERS.
AND THEN YOU CAN SEE THERE ON THE RIGHT, THE, THE HIGH DENSITY MIXED USE TYPICALLY HAS THE HIGHEST ASSESSED VALUE AND THE HIGHEST REVENUE PER ACRE.
UM, BIG BOX COMMERCIAL AND INDUSTRIAL HAS THE LOWEST, UM, SALES TAX IS ALSO IMPORTANT.
UH, DIFFERENT TYPES OF DEVELOPMENT WILL BRING, UH, YOU KNOW, MORE JOBS, MORE SALES TAX THAN THAN OTHERS.
UH, BUT, UH, WHAT'S GOTTEN LOST, I THINK, AND, AND REALLY HASN'T BEEN TALKED ABOUT ENOUGH, IS THE, THE PROPERTY TAX PRODUCTION OF DIFFERENT, UH, DEVELOPMENT PATTERNS.
AND IN GENERAL, THEY FOLLOW THE SAME TREND.
THE MORE, UH, THE MORE PEOPLE YOU PUT IN AN AREA, THE MORE REVENUE YOU'RE GONNA GENERATE, WHETHER THAT'S PROPERTY TAX OR SALES TAX.
UM, IF WE LOOK AT YOUR, JUST YOUR DEVELOPMENT PATTERN FROM THE, THE POPULATION AND THE, THE DENSITY, THIS IS AGAIN, WHERE ADDISON IS VERY DIFFERENT FROM A LOT OF PLACES.
YOU CAN SEE IN THAT BOTTOM RIGHT, UM, BOX THERE, YOUR SERVICE AREA, OVER THE LAST 50, 60 YEARS, YOUR SERVICE AREA HAS ONLY GROWN BY 1.2 TIMES, MEANING THE, THE CITY LIMITS AREA, YOU, YOU HAVEN'T ADDED, UH, TOO MUCH IN TERMS OF YOUR SERVICE AREA, BUT LOOK AT WHAT YOUR POPULATION DENSITY HAS DONE, RIGHT? YOU'VE, YOU HAVEN'T REALLY EXPANDED YOUR AREA TOO MUCH, BUT YOU'VE ADDED MORE AND MORE PEOPLE INTO THAT, UM, INTO THAT AREA.
THIS IS THE EXACT OPPOSITE OF WHAT A LOT OF SUBURBAN AREAS HAVE DONE, WHERE THEY'RE, THEY'RE ANNEXING, THEY'RE GROWING, THEY'RE, THEY'RE ADDING A LOT MORE SERVICE AREA THAT REQUIRES MORE POLICE AND FIRE AND,
[00:20:01]
UH, YOU KNOW, STREETS, ROADS, INFRASTRUCTURE, PUMP, YOU KNOW, PUMP STATIONS, ALL THE THINGS.BUT THEY'RE LOWERING THE DENSITY OF THAT POPULATION.
SO THE, THE COSTS AND THE LIABILITIES ARE GOING UP AND THE NUMBER OF HOUSEHOLDS TO SHARE THAT COST AMONG ARE GOING DOWN.
UM, WHAT HAPPENED IN 2000? JUST CURIOUS.
'CAUSE THAT'S WHERE THE PLATEAU OCCURS.
I STILL THINK WE'RE TRYING TO FIGURE, UM, I MEAN THAT'S THE PLATEAU IN THE, IN THE CITY LIMIT AREA.
IN THE GRAPH POPULATION PLATEAUS IN 2000.
THERE WERE SOME CHANGES IN THAT PERIOD OF TIME, REALLY THAT DECADE, UH, RELATED TO THE, UH, REDEVELOPMENT PROJECT AT VITRUVIAN PARK.
UM, THERE WAS, UH, AT ONE TIME MANY MORE, UH, LOWER DENSITY GARDEN APARTMENTS.
AND, UH, AS THAT PROCESS OCCURRED REALLY LATER IN THE DECADE, SO MORE LIKE 2007 TIMEFRAME, THAT'S WHERE YOU SAW, UH, SOME OF THE EXISTING HOUSING DEMOLISHED PREPARING THE SITES FOR NEW DEVELOPMENT.
SO YOU HAD A A PERIOD, AND YOU'LL SEE IT MORE IN SOME OF THE DEMOGRAPHIC SLIDES WHERE THE TOWN'S POPULATION ACTUALLY DROPPED AS A RESULT OF A REDEVELOPMENT PROJECT THAT WILL EVENTUALLY HAVE THE POPULATION GROW.
BUT, UH, BUT YEAH, SO THIS IS, IF YOU LOOK AT THIS TREND FOR A LOT OF OTHER COMMUNITIES, THERE'S, THERE'S A, THERE'S KIND OF THE SMALL COMPACT CORE OF THE CITY, UM, THE SMALLER, YOU KNOW, HISTORIC DOWNTOWN PART WITH THE NEIGHBORHOODS AROUND IT.
AND THEN YOU SEE THIS REALLY AGGRESSIVE ANNEXATION TO GO GRAB A BUNCH OF AREA, WHETHER THEY'RE CHASING ALONG A CORRIDOR OR THEY'RE JUST GOING OUT IN EVERY DIRECTION.
AND SO THAT LAND FOOTPRINT REALLY EXPANDS QUITE A BIT AND THE POPULATION DOESN'T QUITE KEEP UP WITH IT.
UM, IF WE LOOK AT YOUR GENERAL FUND, JUST AT A HIGH LEVEL ON THE, THE BUDGET SIDE OF THINGS, YOU KNOW, I MENTIONED THAT SPLIT BETWEEN PROPERTY TAX AND SALES TAX.
YOU ALL ARE ONE OF THE FEW COMMUNITIES THAT HAS OVER 50% OF YOUR GENERAL RUN, GENERAL FUND COMING FROM PROPERTY TAX.
DO YOU HAVE A BREAKDOWN OF WHAT THAT IS BETWEEN RESIDENTIAL AND COMMERCIAL NEXT? I DIDN'T, I DIDN'T SEE IT.
CAN YOU REPEAT THAT? I DIDN'T HEAR IT.
I SAID, DO YOU HAVE BREAKDOWN OF THE PROPERTY TAX BY COMMERCIAL AND RESIDENTIAL? COMMERCIAL IS LIKE 85.14% OF THE PROPERTY TAXES 52, AND THE RESIDENTIAL IS LESS THAN 14.
KEN, DO I HAVE THAT RIGHT? WE'LL GET TO IT, UH, HERE FURTHER IN THE PRESENTATION, BUT YOUR, YOUR NUMBERS ARE, ARE PRETTY CONSISTENT WITH WHAT'S BEING SHARED.
YEAH, IT'S, I HAVE A QUESTION.
ONE OF THE THINGS THAT I FIND, CAN YOU TALK INTO THE MIC, DAVE, SO THAT PEOPLE ONLINE CAN HEAR? YEAH.
SORRY, DAVE COLLINS, UH, I LIKE TO SEE BENCHMARKING WHEREVER POSSIBLE.
AND, UM, IT WOULD BE HELPFUL AT LEAST TO UNDERSTAND, YOU MENTIONED WE'RE UNIQUE, BUT YOU KNOW, TO USE MAYBE SOME OTHER CITIES OR SOME OTHER REPRESENTATIONS TO SAY, HEY, WHAT, WHAT DOES THAT MEAN? YOU KNOW, ARE WE 50 WHEN EVERYBODY ELSE IS 30%? WHATEVER? SO, SURE.
AND WE DO HAVE SOME OF THE BENCHMARK WITH SOME OTHER CITIES THAT WE'VE LOOKED AT AS PART OF THE MORE EXTENSIVE ANALYSIS.
YOU GUYS ARE JUST KIND OF SEEING THE, THE HIGHLIGHTS OF IT.
UH, BUT THAT'S, UH, THAT'S SOMETHING THAT WE CAN GET Y'ALL WITH THE, THE MORE EXPANDED, UM, ASSESSMENT.
SO ONE OF THE THINGS WHEN WE LOOK AT THIS, WE, WE TRY TO ENCOURAGE CITIES TO GET TO THAT 50% OF GENERAL FUND PRO FROM PROPERTY TAX SO THAT YOUR OTHER, YOUR OTHER, UH, SOURCES, ESPECIALLY SALES TAX, CAN GO TOWARDS THOSE QUALITY OF LIFE THINGS THAT I MENTIONED EARLIER.
REVENUE IS ANOTHER ONE THAT WE, UM, THAT WE TALK A LOT ABOUT.
UH, WHEN A COMMUNITY'S GROWING THAT DEVELOPMENT, THEY HAVE A LOT OF DEVELOPMENT COMING IN.
SO THEY GET A LOT OF REVENUE FROM BUILDING PERMIT FEES AND THINGS LIKE THAT, WHERE ONCE THE DEVELOPMENT SLOWS DOWN, AGAIN, THAT DEVELOPMENT REVENUE WILL SLOW DOWN WITH IT.
SO WHEN YOU'RE BUILDING SOMETHING FOR THE FIRST TIME, YOU'RE GONNA GET TO GET THAT DEVELOPMENT REVENUE.
BUT THEN ONCE IT'S BUILT, YOU WANT IT TO GENERATE PROPERTY TAX AND SALES TAX TO SUSTAIN ITSELF.
SO HERE IS YOUR PROPERTY TAX BREAKDOWN.
UM, SO THIS IS FROM THE ACTUAL, UH, CERTIFIED TAX ROLL FROM 20, THE CERTIFIED ROLES FROM 2022 SHOWS THE SPLIT DOWN BETWEEN THE SPLIT BETWEEN SINGLE FAMILY, MULTIFAMILY, COMMERCIAL.
UM, ON THE TOP PART THERE YOU SEE THE ASSESSED VALUES.
THE SECOND THAT MIDDLE ROW OF NUMBERS IS FOR THE ACTUAL PROPERTY TAX REVENUE THAT YOU GET.
UM, SO THIS, OUR NUMBERS SHOW COMMERCIAL BRINGING ABOUT 50% OF THE REVENUE.
SO THIS IS FROM THE CERTIFIED ROLES.
UM, AND THIS IS JUST PROPERTY TAX REVENUE, SO IT'S NOT, SO WHEN WE, WHEN WE TALK ABOUT THAT ISSUE, UH, AND YOU'LL SEE IT IN THE, THE SLIDE THERE, IT, IT'S COMBINING COMMERCIAL AS
[00:25:01]
WELL AS MULTIFAMILY.SO THAT, THAT'S WHERE YOUR RATIO COMES IN, SUE.
AND, AND ONE THING I'D, I'D HIGHLIGHT, THERE'S A HANDFUL OF SLIDES THAT BASED ON ADDITIONAL DIALOGUE STAFF HAD BETWEEN WHEN YOU GOT YOUR PACKET AND WHERE WE ARE TONIGHT THAT WE'VE ADDED THE SUPPLEMENT, THE PRESENTATION.
SO IF YOU SEE THAT, I KNOW SOME OF YOU SAW THAT THIS IS A NEW SLIDE, UH, WE, WE THOUGHT IT WOULD BE GOOD TO PROVIDE ADDITIONAL CONTEXT.
IS IT POSSIBLE, CAN YOU USE THE MICROPHONE? WE GOTTA USE THE MICROPHONE 'CAUSE WE HAVE PEOPLE ONLINE.
IS IT POSSIBLE TO BREAK OUT FURTHER THE COMMERCIAL SEGMENT? THERE'S A NUMBER OF PLACES THROUGHOUT THE PACKAGE WHERE IT'S COMMERCIAL, BUT AGAIN, IF IT IS COMMERCIAL RESTAURANTS, RETAIL OFFICE, HOTELS, WHATEVER BUCKETS.
SO THE, THE WAY THIS ANALYSIS WORKS, THERE'S TWO DIFFERENT DATA SETS THAT WE USE.
ONE IS THE CERTIFIED TAX ROLLS THAT HAVE SOME BASIC, UH, STATE LAND USE CODE INFORMATION ATTACHED TO IT.
AND THEN WE WORK WITH THE CITY DATA SOURCES THAT HAVE MORE OF THE ZONING LEVEL AND THE MORE, UH, KIND OF GRANULAR INFORMATION.
UM, WE CAN, YOU'LL SEE, UM, I THINK IN A, IN A, IN A FEW SLIDES WE HAVE, I'LL GO FORWARD JUST KIND OF, WELL, MAYBE I WILL.
SO WE HAVE INFORMATION LIKE THIS.
WE HAVE A TON OF CHARTS LIKE THIS THAT CAN SLICE AND DICE IT BY DIFFERENT LOT SIZES, DIFFERENT USES, DIFFERENT ZONING DISTRICTS.
UM, YOU, SO WE CAN LOOK INTO THIS A LITTLE BIT.
THIS, THESE CHARTS RIGHT HERE DO IT MORE BY LOT SIZE.
BUT I THINK WE CAN LOOK INTO, UH, DAVE, YOUR QUESTION AS WELL, DIFFERENT TYPES OF COMMERCIAL AND, AND KIND OF PULL OUT SOME OF THAT.
I'M CURIOUS JUST WHY, WHAT'S DRIVING THAT QUESTION? WE'RE ALL GONNA GET INDIVIDUAL MICS NEXT TIME.
UM, I THINK SO MUCH OF OUR DISCUSSION, UH, IS GONNA RELATE TO HOW WE VIEW VARIOUS BUCKETS IN OUR COMMUNITY.
AND COMMERCIAL IS A VERY BROAD BRUSH TO ME BECAUSE THERE'S VARIOUS PARTS OF THAT THAT HAVE DIFFERENT NEEDS, DIFFERENT CONSTITUENCIES, DIFFERENT OUTCOMES.
SO I BELIEVE, AND, YOU KNOW, WOULD THINK THAT IT WOULD HELP US MAKE AN INFORMED DECISION IF WE HAD A LITTLE MORE DATA ON THIS IN THAT AREA.
KEN, TO CLARIFY, ARE YOU GUYS GONNA GET US THE SLIDES THAT WE DON'T HAVE? YES.
WE'LL, THANK YOU
IF ANYONE WOULD LIKE TO PRINT, WE CAN PROVIDE THAT.
SO THIS SLIDE WAS, WAS ADDED, THE SECOND SLIDE WAS ALSO ADD ADDED.
WE WERE ASKED TO BREAK OUT THE TAXABLE VALUE BY REAL PROPERTY, WHICH IS, IS BASICALLY THE, THE BUILDING OWNERSHIP AND THEN BUSINESS AND PERSONAL PROPERTY.
UM, SO YOU CAN SEE THAT THAT SPLIT BOTH FOR THE, THE VALUE AND THEN REVENUE BPP MAKES UP ABOUT 7%.
UM, WHICH I THINK THERE, THE FEELING MAYBE THAT, THAT WE WERE GETTING WAS THAT MIGHT BE A LITTLE BIT HIGHER THAN WHAT THE DATA, UH, THAN WHAT THE DATA SHOWED.
IT IS SIGNIFICANT THOUGH THAT THAT BPP IN A LOT OF PLACES IS PRETTY MINIMAL, ONE 2%.
SO JUST HAVING 7% OF YOUR VALUE COMING FROM BPP IS, IS SIGNIFICANT.
UM, WHEN WE LOOK ON THE EXPENSE SIDE, YOU CAN SEE WHERE, UH, THIS KIND OF BREAKS DOWN AT A HIGH LEVEL WHERE THE MONEY IS GOING.
UM, YOU CAN SEE THE PUBLIC SAFETY MAKES UP A, A SIGNIFICANT, UH, PORTION.
THIS IS PRETTY, AGAIN, PRETTY TO, UM, DAVE, TO YOUR QUESTION, JUST TO GIVE YOU SOME CON, YOU KNOW, SOME CONTEXT, PUBLIC SAFETY AROUND 40 TO 50% IS PRETTY COMMON IN TEXAS ESPECIALLY.
UM, IT IS BY FAR THE BIGGEST, UM, EXPENSE ITEM FOR MOST GENERAL FUND BUDGETS.
BUT YOU CAN SEE HOW OTHER THINGS, UH, SPLIT OUT THERE.
UM, ONE THING WE LIKE TO HIGHLIGHT HERE IS HOW MUCH OF THE GENERAL FUND, JUST THE BASE GENERAL FUND IS GOING TOWARDS STREET INFRASTRUCTURE.
UM, THERE'S OTHER SOURCES AND, AND OTHER WAYS TO PAY FOR STREETS.
UH, BUT IF YOU GET TOO DEPENDENT ON BONDS AND DEBT FUNDED PROJECTS TO, TO DO THAT, UH, YOU'LL FIND YOURSELF STARTING TO, TO GET UPSIDE DOWN.
SO YOU NEED TO HAVE A GOOD, STRONG BASE OF YOUR GENERAL FUND THAT'S GOING TOWARDS, UH, OR AT LEAST A SUSTAINABLE REVENUE STREAM THAT'S GOING TOWARDS STREETS.
UM, YOU ALL, JUST IN THE CONVERSATIONS THAT WE'VE HAD WITH FINANCE AND PUBLIC WORKS AND OTHERS, YOU HAVE A VERY GOOD HANDLE WITH YOUR ASSET MANAGEMENT SYSTEM AND, AND EVERYTHING THAT'S GOING ON HERE OF WHAT YOUR, WHAT YOUR LIABILITIES ARE.
THERE'S A VERY PROGRESSIVE APPROACH IN THE TOWN TOWARDS UNDERSTANDING WHAT THOSE LIABILITIES ARE AND HOW TO ATTACK THEM.
UM, AGAIN, UNIQUE, DON'T SEE THAT IN A LOT OF, A LOT OF PLACES ARE JUST TRYING TO KEEP UP WITH THE NEXT FIVE YEARS.
UM, THIS IS AT A HIGH LEVEL WHAT ADDISON STREET LIABILITIES LOOK LIKE.
UM, THERE'S, THIS IS BASED ON AN OLDER PAYMENT CONDITION, UH, SURVEY THAT WAS DONE.
I THINK THE UPDATED ONE IS COMING OUT NEXT MONTH, I BELIEVE.
UM, WHICH REALLY WHAT THAT, THE, THE
[00:30:01]
NEXT ONE, I'LL TALK ABOUT IT ON THE NEXT SLIDE, BUT ACTUALLY I DON'T HAVE IT, UM, IN HERE.BUT AT A, AT A OVERALL LEVEL, YOU CAN SEE WHAT YOUR TOTAL, IF YOU HAD TO REPLACE ALL OF THE STREETS IN ADDISON TODAY, UM, AT A BALLPARK LEVEL, YOU'RE LOOKING AT ABOUT 297 MILLION.
SO CLOSE TO 300 MILLION IN STREET COSTS.
IF YOU HAD TO REBUILD EVERYTHING IN ADDISON TODAY, IF YOU AVERAGE THAT OUT OVER, UH, OVER 25 YEARS, OR I'M SORRY, OVER 50 YEARS, YOU GET TO AROUND $6 MILLION A YEAR.
JOSEPH FURNITURE, UM, I NOTICED THAT THE AIRPORT HAS QUITE A BIT OF RED.
UM, I ALSO THINK UNDERSTAND THAT THERE'S SPECIAL FINANCE ISSUES OR JUST THE AIRPORT'S UNIQUE.
SO ARE WE, WE'RE INCLUDING THE ROADS IN THE AIRPORT AS PART OF THE ANALYSIS FOR THE CITY? YEAH, JUST AT A, AT A HIGH LEVEL, WHAT WE DID IS ANYTHING THAT CITY OWNED.
SO WE TOOK OUT ANYTHING THAT'S CITY OF DALLAS OR TDO OR ANYTHING LIKE THAT.
UM, THIS IS JUST CITY STREETS.
THE AIRPORT IS, UM, A LITTLE INTEREST.
IT, IT IS UNIQUE BECAUSE THE, THE REVENUE GENERATED FROM THE AIRPORT DOES PAY FOR THE MAJORITY OF THE SERVICES ON THE AIRPORT.
UM, BUT THE OTHER THING TO POINT OUT, WHEN YOU LOOK AT THE COLORS HERE OF, I WAS JUST STARTING TO MENTION THAT THIS IS BASED ON THE OLD STUDY.
THE NEW STUDY WHEN IT COMES OUT IS MOST LIKELY GONNA SHOW, UM, A SIGNIFICANT PORTION OF THOSE RED STREETS.
I'VE ACTUALLY BEEN TAKEN CARE OF NOW.
SO WHAT WAS THE OLDEST STUFF IN THE LAST STUDY FIVE OR SIX YEARS AGO IS NOW, UM, SOME OF THE, THE NEWER INVENTORY.
SO YOU, YOU ARE KIND OF KEEPING UP.
SO THIS, AND SOME OF HOW WE BREAK IT DOWN OVER FIVE YEAR PERIODS IS, IS GONNA NEED TO BE UPDATED WHEN WE GET THE NEW STUDY.
UM, BUT THAT BIG NUMBER GENERALLY, WITHOUT ADDING ANY MORE STREETS, YOU'RE, YOU'RE JUST LOOKING AT THAT OVERALL INVENTORY OF 300 MILLION.
UM, AND THAT ROUGHLY THAT 6 MILLION A YEAR ON A RUNNING BASIS OF ADDISON NEEDS TO BE SAVING OR SPENDING ROUGHLY 6 MILLION A YEAR TO MAINTAIN YOUR STREETS OVER TIME.
AND KEVIN, IF I CAN, UH, IF I CAN JUST JUMP IN.
UM, THE CONDITION OF THE STREETS WAS ONE OF THE, WAS A SIGNIFICANT ISSUE I WOULD SAY IN THE BOND DISCUSSION OF THE LAST BOND COMMITTEE, WHICH IS 2019.
WE ULTIMATELY HAD A BOND ELECTION, WHICH THE VOTERS APPROVED THE PACKAGE OF ABOUT 72 MILLION.
AGAIN, WHEN YOU PROVE THE PACKAGE, THAT DOESN'T MEAN 72 MILLION IS INCURRED RIGHT? THEN IT MEANS THAT THE TOWN NOW HAS AUTHORIZATION TO ISSUE BONDS AND CERTIFICATES OF OBLIGATION TO CONDUCT THE WORK THAT'S REFERENCED IN THE, IN THE BOND PROPOSALS AND THE CONDITION OF THE STREETS AND TAKING CARE OF THE STREETS, UM, WAS A SIGNIFICANT ISSUE.
AND IT'S BEEN SIGNIFICANTLY ADDRESSED AS THOSE OF US WHO LIVE ON THE WEST SIDE.
NO, UM, YOU KNOW, WE'RE, WE'RE NEARING THE END OF, UH, OF THE MIDWAY ROAD PROJECT.
WE TALKED ABOUT MIDWAY ROAD WHEN I WAS ON THE COUNCIL 30 YEARS AGO.
AND, AND PART OF WHAT WE DISCOVERED IN THE BOND, UM, DURING THE BOND COMMITTEE DISCUSSIONS IS AT SOME POINT YOU START SPENDING MORE TO REPAIR THE ROADS THAN IT WOULD COST TO SIMPLY REBUILD THEM.
AND YOU CAN'T GET TO THAT POINT.
AND SO YOU GET, YOU GET TO A BALANCE, AN INTERESTING BALANCE OF SPENDING MONEY ON INFRASTRUCTURE, WHICH IS REALLY JUST SORT OF MAINTAINING YOUR ABILITY TO DRIVE AROUND.
SO IT'S NOT LIKE, YOU KNOW, A NEW ATHLETIC CENTER OR SOMETHING WHIZ BANG.
IT'S JUST, WELL, I ALWAYS DROVE ON BELTLINE ROAD AND NOW I'M DRIVING ON BELTLINE ROAD AND IT'S A LITTLE SMOOTHER.
UM, SO IT'S, IT'S YOU, YOU'RE SINKING MONEY INTO IT.
BUT A LOT OF WHAT HAPPENED WAS WHEN YOU GET YOU, YOU, YOU HAVE TO HAVE A COUNCIL THAT HAS THE POLITICAL WILL TO SPEND THE MONEY.
UH, THAT'S REALLY WHAT, UM, I'M GETTING AT HERE.
AND WHEN YOU DON'T HAVE A COUNCIL THAT HAS THE POLITICAL WILL TO SPEND THE MONEY AND THEY SURF CAPITAL PROJECTS LIKE THIS, YOU START TO GET INTO WHERE THE, THE STREETS ARE GETTING TO BE IN EXTREME CONDITION WHERE YOU'RE SPENDING MORE FIXING THEM THAN YOU, THAN YOU DO THAN YOU WOULD SPEND JUST TO REBUILD THEM.
SO THIS TYPE OF THING, HAVING THE POLITICAL WILL TO DO THESE TYPES OF CAPITAL PROJECTS YEAR IN AND YEAR OUT, UM, YOU KNOW, IT'S SOMETHING TO BE THINKING ABOUT.
IT'S NOT SOMETHING THAT PEOPLE REALLY THINK ABOUT A LOT.
THEY THINK A LOT ABOUT THE TAX RATE.
IF YOU HAVE A LOW TAX RATE, BUT YOUR STREETS ARE CRUMBLING, UM, YOUR, YOUR GOVERNMENT ISN'T REALLY DOING ITS JOB.
YOU, IT TAKES POLITICAL WILL TO TELL PEOPLE WE NEED THIS TAX RATE 'CAUSE WE NEED TO FIX THESE STREETS.
AND, UM, JUST SOMETHING TO, TO NOODLE ON AS WE THINK ABOUT THE THINGS WE'RE GONNA RECOMMEND.
[00:35:01]
UM, YOU KNOW, WE, WE'VE GOTTA MAINTAIN OUR INFRASTRUCTURE, OUR BUILDINGS, OUR STREET SCAPES OR PARKS THAT KEEP PEOPLE COMING HERE.PEOPLE COME HERE, THEN THEY EAT AT THE RESTAURANTS AND WE GET THE SALES TAX AND SO ON.
IT'S ALL SORT OF A, A BIG CYCLE.
UH, CONRAD DID YOU, CONRAD DID YOU HAVE SOMETHING? NO, WHAT YOU JUST SAID, MY QUESTIONS, UM, THERE'S A QUESTION BACK THERE, JIM.
TURN THAT MICROPHONE ON JIM RYAN THERE.
IT'S THAT GREEN LIGHT GREEN IS GOOD.
THERE'S AN ANNUAL STATED LIABILITY FOR THE STREETS OF 5,000,009 FROM THE GENERAL FUND.
YOU GOT 2.28 MILLION ANNUALLY.
THAT'S A 2.6 MILLION DIFFERENCE EACH YEAR.
IS THAT COMING FROM BOND MONEY? WHERE'S THAT COMING FROM? BONDS, I WOULD THINK.
SO THAT'S THE GAP THAT WE TALK A LOT ABOUT A, AN INFRASTRUCTURE FUNDING GAP.
AND, AND I COULD NOT HAVE SAID WHAT SUE JUST SAID ANY BETTER BECAUSE MOST PLACES ARE NOT DOING WHAT SHE'S TALKED ABOUT OR EVEN WHEN THEY ARE, IT'S ADDRESSING A VERY SMALL PERCENTAGE OF THE OVERALL NEEDS.
AND SO ONE OF THE THINGS HAPPENING WITH, WITH FINANCE DIRECTORS AROUND THE COUNTRY IS SHIFTING FROM STREETS USED TO BE ON THE BOOKS AS AN ASSET THINKING, YOU KNOW, WE'RE BUILDING A STREET.
THIS IS AN ASSET TO OUR COMMUNITY.
THEY'RE SHIFTING TO PUTTING THAT DOWN AS MORE OF A LIABILITY NOW.
BECAUSE ONCE YOU BUILD IT, IT'S ON THE CLOCK.
IT'S GONNA GIVE YOU 25 TO 50 YEARS DEPENDING ON HOW WELL IT WAS BUILT AND HOW WELL IT'S MAINTAINED.
RIGHT? AND SO YOUR REVENUE THAT YOU'RE CAPTURING YEAR TO YEAR NEEDS TO BE BASICALLY BEING SET ASIDE OR, OR YOU NEED TO HAVE THAT PLAN SO THAT IF AND WHEN THOSE ROADS DO NEED TO BE REBUILT.
WELL, NUMBER ONE, YOU'RE DOING PREVENTATIVE MAINTENANCE TO EXTEND THE LIFE AS LONG AS AS YOU CAN.
MOST COMMUNITIES ARE STARTING TO GET BETTER AT THAT PART.
AND THAT'S USUALLY WHAT'S COVERED FROM THE GENERAL FUND.
IF YOU TALK TO PUBLIC WORKS OF, THEY'LL DO POTHOLES AND CHIP SEAL AND ALL THE THINGS TO KIND OF EXTEND THE LIFE OF EXISTING STREETS.
UM, BUT IT'S WHEN YOU GET TO THAT REBUILD POINT, IF YOU DON'T DO THAT PREVENTATIVE MAINTENANCE AND THEY START TO GET PAST THE POINT OF NO RETURN, IT'S VERY EXPENSIVE TO DO IT.
AND EVERY YEAR THAT YOU WAIT, IT GETS MORE EXPENSIVE.
IT'S, IT'S HARDER WORK TO DO AND CONSTRUCTION COSTS GO UP.
SO IF I CAN JUMP IN ONE, JUST ONE OTHER THING THAT JIM RAISED IN TERMS OF THE BONDS, WE ALSO NEED TO RECOGNIZE THAT BONDS AS MUCH AS ANYTHING ARE A POLICY STATEMENT.
UM, I DON'T, I WOULDN'T WANT TO BE TAXED FOR THE ENTIRE, UH, COST OF FIXING MIDWAY ROAD SO THAT FUTURE RESIDENTS OF ADDISON COULD ENJOY IT WITHOUT PAYING FOR IT.
SO WHEN WE ISSUE BONDS, PART OF WHAT WE DO IS WE MATCH THE BENEFIT TO THE BURDEN.
UM, SO IF YOU'RE GONNA BE USING THE ROADS IN THE FUTURE, THEN YOU NEED TO BE PAYING YOUR PART OF THAT.
AND THAT'S WHY, THAT'S WHY WE HAVE A CONTINUALLY ROLLING AND MOVING DEBT PACKAGE.
AND, AND WE ALWAYS WILL, DEBT IS A RESPONSIBLE PART OF MUNICIPAL FINANCE BECAUSE IT MATCHES THE BENEFIT OF DRIVING ON THOSE ROADS WITH THE BURDEN OF PAYING FOR THOSE ROADS.
AND SO IT'S A POLICY STATEMENT AS MUCH AS ANYTHING, AND I MIGHT ADD, AS LONG AS I'M AT IT, ABOUT THE MUNICIPAL BONDS THAT WE ARE ONE OF 11 MUNICIPALITIES, 11 CITIES IN THE STATE OF TEXAS WITH THE AAA RATING FROM BOTH STANDARD AND POORS AND, AND MOODY'S CITIES ARE NOT LIKE PEOPLE.
WE AMASS ASSETS, WE GIVE THEM TO OUR HEIRS, WE WANT TO BE DEBT FREE.
UM, WE, WE DREAM ABOUT PAYING OFF THE MORTGAGE.
ADDISON'S GONNA BE HERE IN 50 YEARS WHEN WE'RE NOT.
UM, AND WE HAVE TO THINK ABOUT THE FUTURE OF ADDISON AND, AND WHAT THOSE PEOPLE WILL NEED, BUT WE DON'T HAVE TO PAY FOR ALL OF IT.
WE CAN MAKE THEM PAY TOO BY HAVING BOND PACKAGES THAT, THAT ARE RESPONSIBLY MANAGED.
AND OBVIOUSLY WE'RE RESPONSIBLY MANAGING THEM AS THE BOND PEOPLE.
AND, AND I DON'T WANT TO, I DON'T WANNA GET TOO FAR DOWN THAT, THAT HOLE 'CAUSE FISCAL POLICY AND SOME OF THAT IS A LITTLE OUTSIDE OF THIS, BUT THE DEVELOPMENT PATTERN IN STREETS, ALL ALL OF THIS IS CONNECTED AND LIKE, I'LL JUST BRING IT BACK TO THE, THE REASON THAT ADDISON IS IN THE FISCAL POSITION IS IT IS TO DO BOND ELECTIONS AND STAY AHEAD LIKE THEY ARE IS BECAUSE OF THE PATTERN OF THE PAST.
UM, SO CONTINUING THAT COMMITMENT TO STAYING ON TOP, I I I WILL USE SOMETIMES INVESTING VERSUS SPENDING.
UM, YOU SEE CITIES SPENDING A LOT OF MONEY TO GO ADD ROADS OR WHATEVER VERSUS INVESTING, UM, IN MAINTAINING WHAT WHAT YOU'VE GOT.
BUT ALL OF THIS TO SAY, ADDISON'S IN ONE OF THE, THE STRONGEST POSITIONS OF ANYWHERE THAT, THAT WE'VE LOOKED AT, THAT GAP BETWEEN THE, THE ANNUAL GENERAL FUND AND, AND THOSE STREET NEEDS IS MADE UP.
UM, YOU KNOW, WITH BOND ELECTIONS LIKE THAT IN, OR LIKE WHAT SUE IS DE DESCRIBING IN SOME OTHER PLACES, THOSE BOND PROGRAMS DON'T
[00:40:01]
EVEN BEGIN TO GET AT THE, THE GAP THAT THEY, UM, THAT THEY HAVE BECAUSE THEY'VE TAKEN ON SO MUCH AND THAT PATTERN IS NOT PRODUCING ENOUGH IN TAX BASE AND OR THEY'VE LOWERED THE TAX RATES SO MUCH, SO MANY TIMES OVER THE YEARS THAT THEY'RE, THEY'RE KIND OF HANDCUFFED WITH WHAT THEY'VE GOT TO, UM, TO CATCH BACK UP.UM, JUST KIND OF QUICKLY THERE, THERE'S A LOT OF MAPS IN HERE THAT THAT SHOW, UM, WHAT THIS LOOKS LIKE IN TERMS OF THE ASSESSED VALUE FOR, FOR DIFFERENT PROPERTIES, THE ASSESSED VALUE PER ACRE, THE TAX REVENUE PER ACRE, THE NET PER ACRE, WHICH FACTORS IN THE, THE SERVICE COSTS THAT, UM, THAT ARE IN HERE.
IF THERE'S QUESTIONS, IF YOU WANT TO KIND OF DO A DEEP DIVE ON SOME OF THIS, WE WILL, UM, WE WILL BE PUTTING VERSIONS OF INTERACTION INTERACTIVE VERSIONS OF THESE MAPS ONLINE.
SO YOU CAN ZOOM IN AND SPIN 'EM AROUND AND CLICK ON SPECIFIC PROPERTIES TO GET THE, THE DATA AND STUFF.
SO I KNOW LOOKING AT IT AT THE SCALE IS A, A LITTLE TOUGH JUST TO TRY AND SUMMARIZE ALL THOSE CHARTS.
IS IT BASICALLY THE IDEA THAT THE PURPLE IS PAYING FOR MOST OF WHAT'S GOING ON FOR THE REST OF US? THAT IS THE VERY SIMPLEST WAY OF PAYING IT IS, WHETHER IT'S ADDISON OR ANYWHERE ELSE, DENSITY PAYS FOR THE MORE SPREAD OUT PATTERN.
AND IF YOU HAVE A BALANCE, IT PENCILS OUT.
IF YOU DON'T HAVE ENOUGH DENSITY TO PAY FOR THE REST YOU GET, YOU GET UPSIDE DOWN.
SO ADDISON, AGAIN, THE, THE REASON YOU'VE GOT VERY, YOU'VE GOT SOME POCKETS THAT ARE VERY HIGH DENSITY THAT ARE GENERATING VERY HIGH PROPERTY TAX REVENUE PER ACRE.
THEY ALSO, A LOT OF THE SAME AREAS ARE PRODUCING MOST OF YOUR SALES TAX REVENUE, UM, AS WELL.
BUT THE FACT THAT YOU HAVE A GOOD BALANCE, YOU'VE GOT SOME VERY STRONG DENSITY BETTER THAN A LOT OF TYPICAL SUBURBS, I WOULD SAY.
UM, BUT YOU'RE, BECAUSE YOUR AREA IS NOT AS BIG AS MAYBE SOME OTHER CITIES AROUND HERE, UM, AND EVEN YOUR RESIDENTIAL DEVELOPMENT IS A LITTLE MORE COMPACT THAN SOME OF THESE OTHER PLACES.
THAT'S WHY ADDISON NOT ONLY DO YOU PENCIL OUT, BUT YOU'RE, YOU'RE IN THE, YOU KNOW, IN THE POSITIVE.
UM, I HAVE A QUESTION, AND IT MAY NOT BE ANSWERABLE, BUT YOU DID A, A, YOU KNOW, A GOOD JOB OF FACTORING IN THE STREETS IN TERMS OF A COST ANALYSIS.
ONE OF THE THINGS THAT I HAVE A QUESTION ON MY OWN IS WHEN YOU INCREASE DENSITY, THERE OUGHT TO BE AN INCREASED AMOUNT OF SERVICES COMMENSURATE WITH THAT DENSITY, WHETHER IT'S POLICE, WHETHER IT'S FIRE, WHETHER IT'S, YOU KNOW, SEWER, UTILITIES, WHATEVER.
HOW DO YOU MEASURE THAT AS WE GO THROUGH THIS ANALYSIS TO UNDERSTAND THE IMPACT OF THAT? YEAH, THAT'S A GREAT QUESTION.
UM, I WILL SAY THAT THERE IS A PERCEPTION OUT THERE THAT MORE DENSITY EQUATES TO MORE COSTS.
UM, BUT IT ALSO, UM, IT ALL, IT HAS A LOT TO DO WITH THE CONTEXT OF THAT DENSITY WHERE IT IS, HOW IT'S DESIGNED, YOU KNOW, WHERE IT'S LOCATED.
UM, THE WAY THIS COST ANALYSIS WAS DONE, THE WAY, SO WE DIDN'T JUST ACCOUNT FOR STREETS.
WE ALSO ACCOUNTED FOR, FOR PUBLIC SERVICE COSTS, WE ALLOCATED COST IN TWO WAYS.
IF IT'S PUBLIC SERVICE COSTS, UH, IT'S BASED MORE ON THE, THE DWELLING UNIT.
SO THERE'S A COST WHETHER YOU HAVE, UH, YOU KNOW, TO, I GUESS SIMPLIFY IF YOU HAVE A HOUSE ON A ONE ACRE LOT OR IF YOU HAVE A HOUSE ON A 10 ACRE, ON A 10TH OF AN ACRE LOT, YOU'RE STILL KIND OF CONSUMING THAT THAT DWELLING UNIT IS U IS ASSUMING ROUGHLY THE SAME AMOUNT, UM, OF SERVICES.
IF YOU HAVE MORE, YOU KNOW, MORE COMPACT, SAY IT'S, YOU KNOW, MULTI-FAMILY, APARTMENTS, TOWN HOMES, WHATEVER, YOU HAVE MORE DWELLING UNITS IN THAT AREA.
SO YOU'RE, YOU'RE CARRYING MORE OF THE BURDEN OF THAT COST.
UM, STREETS, UH, PARKS, DRAINAGE, INFRASTRUCTURE, THOSE ARE DONE MORE ON BASED ON A, A GEOGRAPHIC RATIO.
SO THE LARGER THE LOT, THE LARGER PORTION OF THAT COST YOU'RE GONNA CARRY.
SO IF YOU THINK OF A LARGER LOT ON STREET FRONTAGE, IF THAT, THAT LARGER LOT IS FRONTING ON A LARGER PORTION OF THAT STREET, SO IT HAS TO CARRY MORE OF THAT PORTION OF THAT STREET VERSUS IF YOU HAD A SMALLER LOT OR A NARROWER LOT THAT, THAT USES A SMALLER PORTION OF THAT STREET.
SO TWO DIFFERENT WAYS, SERVICE COSTS ARE MORE ON A, UH, PER DWELLING UNIT BASIS, UM, AND ALSO ON A DEVELOPED OR UNDEVELOPED.
SO IF THERE'S NOT A BUILDING ON IT, IT'S NOT CONSUMING SERVICES TO THE SAME LEVEL THAT A, A DEVELOPED PROPERTY WOULD CONSUME.
UM, ON THE INFRASTRUCTURE SIDE, IT'S ON A GEOGRAPHIC PROPORTIONATE AREA BASIS, BUT IT ALSO HAS TO DO WITH, IS IT SERVED? SO SAY YOU DON'T HAVE ANY, BUT SAY A CITY HAD A, A PROPERTY THAT WAS IN CITY LIMITS, BUT IT DIDN'T HAVE INFRASTRUCTURE TO IT DIDN'T HAVE STREET WATER, SEWER, IT'S NOT GONNA PAY FOR THAT INFRASTRUCTURE BECAUSE IT'S NOT THERE YET.
SO IF A STREET HAS INFRASTRUCTURE SERVICE, IT'S GONNA, IT'S GONNA, OR IF A PROPERTY HAS INFRASTRUCTURE SERVICE, IT'S GONNA CARRY, UH, ITS SHARE OF THAT COST BASED ON THE, THE SIZE OF THE LOT.
UM, IF IT'S, YOU KNOW, ON THE, THE PUBLIC SERVICE SIDE, IT'S BASED ON MORE ON DWELLING UNITS.
[00:45:02]
WHAT YOU SEE WITH THE DENSITY STUFF IS IT DOES HA BECAUSE IT'S MORE DENSE AND MORE DWELLING UNITS, IT DOES HAVE MORE COST TO IT.YOU'VE GOT MORE PEOPLE, YOU'VE GOT MORE UNITS, IT DOES HAVE SOME MORE COST TO IT, BUT THE REVENUE IS SO MUCH HIGHER THAT THAT REVENUE PER ACRE PRODUCTIVITY IS HIGHER, THAT IT COVERS THAT MARGIN, UM, MOST OF THE TIME.
SORRY, UM, IT'S NOT JUST RESIDENTIAL, YOU KNOW, COMMERCIAL.
IF YOU HAVE A 15 STORY OFFICE BUILDING, DO YOU HAVE TO BUY A CERTAIN FIRE TRUCK AND THAT, THOSE TYPES OF THINGS.
DO YOU HAVE AN INVESTMENT IN YOUR SEWER CAPACITY THAT HAS TO BE GREATLY EXPANDED? SO TO ME IT'S JUST HELPING TO UNDERSTAND AS WE LOOK FORWARD AND WE'RE MAKING THESE POLICY DRIVEN DECISIONS TO SAY, OKAY, WE WANT TO INCREASE THIS PORTION OF OUR COMMUNITY IN THIS AREA.
JUST BE HELPFUL TO HAVE A BETTER IDEA OF WHAT ARE THE COSTS OF THAT.
SO IT'S REALLY NOT NECESSARILY RESIDENTIAL DRIVEN.
MM-HMM,
UM, AND AGAIN, THERE'S A LOT OF DATA BEHIND THESE MAPS AND CHARTS THAT WE CAN SLICE AND DICE, BUT WE CAN GIVE YOU AVERAGE COSTS.
WELL, WHAT'S THE AVERAGE HOME VALUE HAVE TO BE TO PAY FOR EVERYTHING, KEVIN? THERE IS NO ONE ANSWER TO THAT BECAUSE THERE'S A LOT OF CONTACT, THERE'S STREET DESIGN, THERE'S LOT SIZE THERE, THERE'S ALL KINDS OF THINGS THAT, THAT GO INTO IT.
UM, BUT WHAT WE CAN DO IS LOOK AT THE DATA BY LOT SIZE BY USES AND STUFF AND PULL OUT WHAT THOSE COSTS FOR THOSE DIFFERENT AREAS ARE, WHETHER IT'S PER UNIT OR PER ACRE.
UM, AND AT LEAST IT'S A LITTLE MORE, UM, GIVES YOU A LITTLE MORE DATA POINTS TO, UM, YOU KNOW, TO WORK WITH.
SO A LOT OF THAT THAT IS UNDER THE HOOD OF, OF WHAT YOU'RE SEEING HERE.
BUT HAPPY TO PROVIDE MORE DETAIL FOR ANY OF YOU GUYS THAT WANT TO, UM, TO DIG INTO IT FURTHER.
I DO WANT TO KEEP US GOING AND I'M HAPPY TO STICK AROUND AFTER AND ANSWER, DO DEEP DIVE INTO THIS FISCAL STUFF FOR ANYONE, UM, THAT WANTS, BUT, BUT YEAH.
JUST TO SUMMARIZE, I DO WANNA HIT AIRPORT BEFORE I GO THROUGH KIND OF THE, THE REST OF THE MAPS.
UM, SO THE AIRPORT, THE, THE FIRST VERSION OF THIS THAT YOU ALL SAW, THE AIRPORT WAS INCLUDED, UM, IN THIS ASSESSED VALUE AND THE, THE REVENUE PER ACRE MAPS, WE PULLED IT OUT BECAUSE IT DOES, UM, IT'S GOT A DIFFERENT FUNDING STRUCTURE TO, UH, TO IT.
UM, THIS KIND OF GIVES YOU THE, THE HIGHLIGHTS OF THE AIRPORT.
UM, THE LAND VALUE ITSELF IS CLOSE TO 69 MILLION.
IT IS TAX EXEMPT, UH, MEANING IT'S NOT PAYING PROPERTY TAXES, BUT, UM, THERE'S A STRUCTURE SET UP.
THE, THE CITY HAS A SEPARATE, OR THE TOWN HAS A SEPARATE AIRPORT FUND.
UM, AND YOU CAN, SO YOU CAN SEE WHAT THAT, UM, THAT REVENUE IS MADE UP OF.
THERE'S THE LAND LEASES, WHICH IS THE HANGERS THAT MAKES UP MOST OF THE REVENUE.
AND THEN YOU HAVE BUSINESS PERSONAL PROPERTY, WHICH IS MOSTLY THE, UM, THE JETS, UM, AND THE AIRCRAFT AND GENERATES REVENUE INTO THE AIRPORT FUND.
AND THEN THERE'S A TRANSFER BACK.
IT CO THAT FUND COVERS THE MAJORITY OF THE COSTS ON THE AIRPORT STREETS INCLUDED.
UM, AND THEN THERE'S A TRANSFER BACK THAT SOME OF THAT MONEY GETS TRANSFERRED BACK INTO THE GENERAL FUND TO HELP, UH, SUPPLEMENT OTHER THINGS.
SO YOU CAN SEE THAT 952, UM, THOUSAND, UM, IN FISCAL YEAR 23 THAT GOT TRANSFERRED BACK INTO THE GENERAL FUND ON TOP OF COVERING THE COST OF THE, THE AIRPORT.
SO THE AIRPORT, FROM A REVENUE STANDPOINT, THE AIRPORT IS DEFINITELY AN ASSET, UH, TO THE TOWN.
QUESTION, IT MAY BE BEYOND THE SCOPE OF THIS, BUT IF THE AIRPORT WASN'T OWNED BY THE CITY, BY THE TOWN, DO YOU HAVE IDEA OF WHAT REAL ESTATE TAX VALUE IT WOULD BRING TO THE TOWN? LIKE ARE, ARE WE WHAT THE I'M SORRY.
WHAT THE VALUE IF, IF, IF, IF THE AIRPORT WAS OWNED BY SOMEBODY ELSE AND WAS AN A TAXED ENTITY FROM A REAL ESTATE PERSPECTIVE, DO YOU KNOW WHAT KIND OF INCOME THAT WOULD BE TO THE TOWN VERSUS THIS 952,000? WE DO HAVE PAYING.
WELL, OKAY, SO THERE'S TWO PARTS TO THAT QUESTION.
SO YEAH, IF YOU, I MEAN IF YOU TOOK THE TOTAL VALUE AND THEN MULTIPLY IT BY THE TAX RATE, YOU WOULD GET A BALLPARK OF WHAT THAT REVENUE WOULD BE.
UM, BUT THE 952 UH, MILLION THAT'S TRANSFERRED BACK IS AFTER IT PAYS FOR ALL OF THE COSTS ON THE AIRPORT.
SO IF IT WAS TOWN OWNED, THEN THE TOWN WOULD ALSO BE RESPONSIBLE FOR ALL THE SERVICES.
AND THAT'S WHAT THE NET, YOU KNOW, THE NET CALCULATIONS ON THAT MIGHT BE, UM, A LITTLE BIT, YOU KNOW, A LITTLE BIT DIFFERENT.
I'M JUST DOING THE COMPARISON OF YEAH, THE TOWN CHARGING ENOUGH TO MAKE IT SOMEWHAT, YOU DON'T WANT IT TO BE A LOSING ENTITY FOR THE TOWN.
IF IT, IF IT WAS A TAX ENTITY, WE'D BE MAKING ALL THIS REAL ESTATE TAXES.
THAT'S ALL I'M TRYING TO MAKE A COMPARISON TO.
SO IS, IS THE TOWN FUNDING THE SAME AMOUNT INTO THE FUND IN COMPARABLE AMOUNTS, OR IS IT COSTING US A LITTLE MONEY THAT'S, I'M JUST CURIOUS IF THAT ANALYSIS.
UM, I BET FINANCE HAS THE ANSWER TO THAT AND KNOWS FOR SURE AND I WOULD BE JUST BASED ON EVERYTHING ELSE THAT WE'VE SEEN AND HOW ON TOP OF STUFF IS IF, IF THAT WASN'T THE CASE, I IT PROBABLY WOULD'VE BEEN FLIPPED.
SO THERE'S GENERALLY A LOT OF FA A FUNDING THAT COVERS A MASSIVE PORTION OF THE AIRPORT.
SO TAKING CARE OF A RUNWAY IS NOT CHEAP.
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OR SOMEONE WAS RESPONSIBLE FOR THAT, THAT WOULD BE VERY EXPENSIVE.OR YOU CAN GET THE FEDERAL GOVERNMENT TO TAKE CARE OF THAT AND YOU LOSE TAXABLE VALUE.
IF, IF I COULD JUMP IN, UM, THE FAA IS VERY PROTECTIVE OF THIS AIRPORT.
IT'S A, IT'S, IT USED TO BE, I, SOMEBODY CAN TELL ME IF I'M WRONG ABOUT THIS USED TO BE THE THIRD BUSIEST SINGLE RUNWAY GENERAL AVIATION AIRPORT IN THE COUNTRY.
IT MAY BE THE MOST, IT MAY BE THE BUSIEST.
IT'S NUMBER ONE, THE BUSIEST, UH, SINGLE RUNWAY GENERAL AVIATION AIRPORT IN THE COUNTRY.
UM, 30 YEARS AGO MY COUNCIL FUNDED, UM, PUTTING A CUSTOMS OPERATION THERE SO THAT PLANES COULD COME DIRECTLY TO THE AIRPORT FROM MOSTLY MEXICO, BUT ANY OTHER FOREIGN DESTINATION AND CLEAR CUSTOMS HERE AS OPPOSED TO LANDING AT LOVE LANDING AT DFW AND, AND DOING A FERRY FLIGHT BETWEEN THOSE AIRPORTS AND ADDISON, WHICH, WHICH IS VERY DANGEROUS IN THE, IN THE CROWDED AIRSPACE, BUT WE LEVERAGE WITH THE FAA, UM, AND IT'S ALMOST, IT USED TO BE 90 10, UM, 90 10 WE'RE THE 10.
SO IF WE PUT $10 IN, THEY PUT 90 IN BECAUSE THEY WANT THIS AIRPORT OPEN.
AND IT HAS OTHER INTANGIBLE BENEFITS TO ATTRACTING BUSINESS HERE.
THE CORPORATE JETS, MBNA, MARY KAY HAD THEIR JET HERE WHEN DON CARTER OWNED THE MAVERICKS, THE DC NINE WAS HERE.
THERE ARE A LOT OF THINGS ABOUT IT THAT ARE IMPORTANT, BUT WE OWN IT.
UM, AND, AND I WON'T GO INTO THE HISTORY OF THE FINANCES OF IT.
I'M DELIGHTED IT'S MAKING MONEY NOW FOR REASONS THAT I'LL EXPLAIN.
IF ANYONE WANTS TO BUY ME A BEER, I CAN TELL YOU WHAT WENT ON WHEN I WAS ON THE COUNCIL BECAUSE OF SOME CONTRACTS THAT WERE DONE IN THE SEVENTIES AND IT WENT ON AND ON AND ON.
BUT WE HAVE NOW TAKEN CONTROL OF IT AND, YOU KNOW, IT'S PROVIDING US WITH, WITH THIS REVENUE, YOU KNOW, WHAT WOULD THE DIFFERENCE BE IF WE WERE TO GIVE IT TO SOMEONE ELSE? IT'S NEVER GONNA BE GIVEN TO SOMEONE ELSE.
IT WOULDN'T BE GIVEN TO A COMMERCIAL ENTITY.
THE FAA WILL NEVER LET THAT HAPPEN.
AND ECONOMICALLY WITH THE 90 10 WITH THE LEVERAGE THAT WE GET, BECAUSE THEY'RE SO POSSESSIVE OF THIS AIRPORT, UM, YOU KNOW, IT IT, IT, IT WOULDN'T, IT'S JUST, IT'S NOT GONNA CHANGE, YOU KNOW? YEAH.
SO THE AIRPORT IS ACTUALLY, IT IS A FULLY FUNDED ENTERPRISE, UH, BUDGET.
SO THEY, THEY GET NO TRANSFER IN FROM OUR GENERAL FUND AND THEY HAVE HEALTHY, HEALTHY FUND BALANCES.
UH, AND A LOT OF THAT IS DUE TO THE FACT THAT MOST OF OUR CAPITAL PROJECTS ARE FUNDED ON 90 10 GRANTS FROM, UH, TX AND THE FAA.
SO THEY'RE A FULLY FUNDED ENTERPRISE, UM, BUDGET THAT I, I MEAN WE, WE COULDN'T ASK FOR BETTER, ESPECIALLY RIGHT NOW.
DOES ANYBODY HAVE ANY OF YOU OR NUMBERS ON IF WE KEEP HEARING ABOUT THE, UM, UM, ADJACENT VALUES THAT THE AIRPORT BRINGS IN? SO HOW MUCH PROPERTY VALUE, HOW MUCH PROPERTY TAXES ARE WE COLLECTING BECAUSE PEOPLE HAVE CHOSEN TO RELOCATE HERE BECAUSE OF THE PROXIMITY TO THE AIRPORT AND HOW MUCH IN SALES TAX REVENUE? I MEAN, THOSE ARE THE TWO BIG ONES THAT ARE WORTH TALKING ABOUT.
HOW MUCH DOES THAT RE HOW MUCH DOES THAT GENERATE? I'LL, I'LL HAVE TO FOLLOW.
I'M NOT EVEN GONNA GO OUT ON A LIMB ON THAT ONE, BUT I MEAN, WE HAVE AN ECONOMIC IMPACT OF THE AIRPORT, WHAT IT BRINGS IN AS FAR AS SALES TAX, UM, ADDITIONAL PROPERTY VALUE AND EVERYTHING.
BUT I CAN FOLLOW UP AND GIVE KEN THAT INFORMATION AND HE CAN GET THAT OUT.
I JUST THINK THAT'S IMPORTANT TO HAVE UP HERE BECAUSE IF YOU JUST, I MEAN JUST THE OPTICS OF THIS LOOKS BAD, $952,000 IN TAXES ON A $69 MILLION PROPERTY.
I MEAN, IF IT WAS DEVELOPED INTO SOMETHING ELSE, THAT'S THE THOUGHTS THIS MORNING PEOPLE'S HAD.
SO IF WE HAD ALL OF THE ANCILLARY BENEFITS THAT COME WITH IT SURE.
WOULD MAKE THE, IT WOULD MAKE THE OPTICS LOOK BETTER.
AND AND AGAIN, AND, AND I THINK KEN HAS MENTIONED THIS AND EVERYBODY, THESE ARE VERY HIGH LEVEL NUMBERS AND VIEWS, BUT I MEAN, WE CAN GET THIS INFORMATION AND DEFINITELY GET IT TO KEN AND KEN CAN GET IT OUT AND WE CAN PROCESS THAT.
I JUST THINK IT'S IMPORTANT 'CAUSE I THINK IT'S PART OF OUR RESPONSIBILITY FOR WHEN WE HAVE MEETINGS IN THE BOXES AND DO THAT KIND OF THING, THAT WE HAVE TO KNOW THAT BECAUSE YOU GET ALL THESE PEOPLE GRIPING ABOUT ALL THESE THINGS AND THEY DON'T UNDERSTAND ALL THE METHODOLOGIES OR ALL THE, THE REASONINGS.
SO THAT'S, I THINK PART OF WELL WRITING THE, THE STATS FOR THAT KIND OF THING AND THAT TO, TO EDUCATE PEOPLE.
'CAUSE I THINK THAT'S WHAT HAPPENS A LOT IS THERE'S NOT, AND IT'S AN EDUCATE.
AND IT'S, IT IS AN EDUCATION FOR PEOPLE TO UNDERSTAND THEIR TAX DOLLARS ARE NOT FUNDING THE AIRPORT.
THE AIRPORT IS FUNDING ITSELF.
AND IF I COULD JUMP IN, I MEAN, RECOGNIZE WE HAVE GROUND LEASES THAT WE GET REVENUE FROM.
WE HAVE, WE, WE HAVE A VALOREM TAXES, WE TAX THOSE
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BIG JETS AND THERE ARE PLENTY OF 'EM THERE.WE NOW HAVE A NEW FBO THAT'S MORE AD VALOREM, THAT'S MORE, UH, LEASE REVENUE.
UM, SO THERE ARE A LOT OF SOURCES OF REVENUE THERE.
UM, BUT YOU KNOW, REALISTICALLY IT'S NOT GOING AWAY.
THE FAA IS NOT GONNA
WELL, YEAH, AND SO SHORT STORY, THE AIRPORT MORE THAN PAYS FOR ITSELF.
ALL THE CONVERSATIONS YOU JUST HEARD.
SO THAT'S THE, YOU SEE THE TAXABLE VALUE, IT IS TAXED.
IT, IT, IT JUST, THE MONEY MOVES A LITTLE BIT DIFFERENTLY.
SO YOU'RE NOT JUST GETTING THAT 950,000, YOU'RE GETTING THAT BACK TO THE GENERAL FUND ON TOP OF IT, COVERING ALL OF THE OTHER COSTS.
UM, ALL OF THE OTHER COSTS AND ALL OF THE ADDITIONAL REVENUE THAT COMES FROM FAA, WHICH IS A GREAT POINT THAT I HADN'T EVEN THOUGHT TO, UM, TO BRING UP.
UM, SO IF YOU GO THROUGH KIND OF THE, JUST THE ASSESSED VALUE PER ACRE, THIS IS JUST THE ASSESSED VALUE PROPERTIES DIVIDED BY THE, THE PARCELS.
THIS IS YOUR REVENUE, THE TAX REVENUE PER ACRE.
UM, THIS IS YOUR NET PER ACRE FOR CURRENT BUDGET.
SO THIS TAKES YOUR, YOUR CURRENT BUDGET COSTS AND ALLOCATES THEM OUT TO THE PARCELS.
UM, IF IT'S GREEN OR PURPLE, IT'S POSITIVE.
IF IT'S RED, IT'S COSTING MORE TO SERVE THAN IT'S BRINGING IN.
UM, AND THEN IF WE ADD IN THE UNFUNDED STREETS.
SO IF WE TAKE THAT, IF WE TAKE THAT STREET GAP AND WE SAY, WE'RE GONNA PAY FOR THIS OUT OF THE GENERAL FUND WITHOUT DOING THE, THE BOND APPROACH, JUST A STRAIGHT UP CASH PAY AS YOU GO APPROACH.
UM, THE DIFFERENCE BETWEEN YOUR CURRENT BUDGET AND YOUR UNFUNDED STREETS IS MINIMAL.
UM, AGAIN, COMPARED TO SOME OTHER PLACES, WHEN WE DO THIS FOR OTHER PLACES, IT'S A MASSIVE DIFFERENCE.
SO YOU'VE GOT SOME PLACES THAT, WHETHER YOU'RE LOADING JUST CURRENT BUDGET COSTS OR YOU ADD SOME ADDITIONAL STREET COSTS IN, NOT JUST ARE THEY STAYING GREEN, THEY'RE PURPLE, THEY'RE VERY, VERY PRODUCTIVE.
UM, YOU KNOW, PARTS OF, OF THE TOWN AND SOME OF THESE OTHER PARTS.
UM, I THINK WITH A LITTLE BIT OF, OF INFILL, JUST A LITTLE BIT OF, OF, LET'S JUST CALL IT FRESHENING UP, UM, CAN ADD SOME MORE, UH, UH, SOME MORE VALUE.
AND AS PROPERTY VALUES CONTINUE TO GO UP, THEY'RE GONNA, THEY'RE GONNA INCREASE AS WELL.
UM, THE SLIDE PRIOR TO THIS, WHICH OR BUDGET COSTS? OH, THIS ONE.
YOU'VE, YOU'RE ALLOCATING GENERAL FUND COST TO THE PARCEL.
HOW, WHAT DOES THAT MEAN? HOW DO YOU DO THAT? SO, THAT'S WHAT I WAS MENTIONING IN A, A MINUTE AGO.
SO THE, THE GENERAL FUND BUDGET, THERE'S, THERE'S PUBLIC SERVICE COSTS, UM, WHICH IS MOST OF THE GENERAL FUND BUDGET, AND THEN THERE'S SOME INFRASTRUCTURE COSTS OR, OR THINGS THAT ARE MORE ON A GEOGRAPHIC BASIS.
SO WE TAKE THE, THE WAY THIS ANALYSIS IS DONE IS WE TAKE, WHATEVER THAT 50 OR 51% OF THE GENERAL FUND THAT COMES FROM PROPERTY TAX, WE TAKE 51% OF THOSE EXPENSES, THOSE GENERAL FUND EXPENSES, AND THEN WE ALLOCATE THOSE BACK TO THE PROPERTIES.
SO WE, IT'S KIND OF AN APPLES TO APPLES OF, YOU HAVE THIS MUCH PROPERTY TAX REVENUE COMING IN, AND THERE'S THIS MUCH, UH, OF THE OVERALL BURDEN, UH, THAT'S COMING FROM PROPERTY TAX.
AND THEN WE ALLOCATE THAT ON TWO DIFFERENT WAYS.
THE PUBLIC SERVICE IS ON A DWELLING UNIT.
THE, UH, THE INFRASTRUCTURE IS ON MORE OF A GEOGRAPHIC LOT SIZE, UM, BASIS.
THE, THE ADDITIONAL STREETS ARE ALSO ON THE, THE LOT SIZE BASIS.
TAYLOR JUST, JUST TOUCHED A LITTLE GREEN.
UH, KEVIN, HEY, ON THIS CHART, IS IT, IS IT RIGHT FOR US TO LOOK AT THIS ONE SINCE YOU NETTED OUT THE OBLIGATIONS, UH, THAT DAVE BROUGHT UP IS MAYBE, MAYBE THE MOST TELLING CHART HERE IF WE REALLY ARE LOOKING AT WHAT IS OUR TAXABLE VALUE PER PARCEL AROUND THE TOWN TO REALLY UNDERSTAND WHAT, WHAT'S PRODUCING AND, AND WHAT ISN'T? YEP.
WAS THERE ANY TAKEAWAYS OR ANYTHING HERE THAT YOU NOTICED? ANYTHING? I'LL COVER SOME OF 'EM HERE IN A, IN A FEW.
UM, SO JUST LOOKING AT THESE IN 3D, SOMETIMES 2D IS HARD TO SEE, SO 3D HELPS TOO.
BUT THE HIGHER THE BARS, THE MORE PRODUCTIVE, WE DID THIS IN BOTH DIRECTIONS.
SO YOU'RE LOOKING, LOOKING AT IT FROM THE NORTH AND THE SOUTH.
YOU CAN, YOU CAN REALLY SEE WHERE THE, YOU KNOW, THE GENERATORS ARE FOR THE, UM, FOR THE TOWN.
THERE'S A LOT OF ANALYSIS BEHIND THIS, AND WE CAN SHARE THE, THE FULL REPORT, UM, THAT WE'VE BEEN GOING THROUGH WITH, WITH STAFF.
BUT THIS SLICES AND DICES EVERYTHING BY THE DIFFERENT LAND USES THE LOT SIZES.
IF YOU FOLLOW THESE CHARTS ACROSS, YOU'LL SEE IN THE LAST THREE COLUMNS THERE, IT'S GOT THE REVENUE BREAKER, THE NET BREAKER FOR CURRENT BUDGET, AND THEN THE NET BREAKER THAT'S GOT BUDGET PLUS THE ADDITIONAL STREET COSTS IN THERE.
SO YOU CAN SEE HOW DIFFERENT LOT SIZES AND PATTERNS ARE DOING.
UM, THE SIMPLE STORY HERE IS THE SMALL, THE SMALL STUFF IS THE MOST FISCALLY PRODUCTIVE.
[01:00:02]
AND IT TENDS TO COVER, UH, SOME OF THE OTHER DEVELOPMENT, UM, IN THE COMMUNITY.WE GET INTO THIS A LOT WITH OTHER CITIES THAT ARE TALKING ABOUT MINIMUM LOT SIZES AND WANTING TO GO TO LARGER LOT SIZES.
UM, AND AGAIN, THERE'S TRADE-OFFS, THERE'S PROS AND CONS TO, TO ALL OF THOSE.
BUT YOU HAVE TO NOT JUST THINK ABOUT THE, THE VALUE OF THE HOME OR THE DWELLING UNIT.
YOU ALSO HAVE TO THINK ABOUT THE AMOUNT OF LAND IT'S USING.
YOU HAVE TO THINK ABOUT THE AMOUNT OF INFRASTRUCTURE THAT'S REQUIRED TO SERVE IT.
UM, ALL OF THOSE THINGS KIND OF, UM, YOU KNOW, COME TOGETHER.
AND AGAIN, YOU GUYS ARE A, A MORE SAVVY PLACE.
YOU'RE A MORE SAVVY COMMUNITY THAT'S ASKING GREAT QUESTIONS.
WE'RE HAPPY TO DIG INTO AS MUCH DETAIL WITH THIS STUFF, UM, AS YOU ALL WANT.
UM, I DON'T WANNA BOG DOWN THE WHOLE
'CAUSE THIS IS, IN OUR OPINION, THIS IS REALLY IMPORTANT STUFF, AND A LOT OF IT JUST PROVES UP WHY ADDISON IS IN THE POSITION, UM, THAT IT, UM, THAT IT IS, OR, AND I'LL JUST REITERATE IN A LOT OF PLACES, WE'RE, WE'RE USING THIS TO HELP THEM UNWIND AND SAY, MAYBE THE BEST STRATEGY IS NOT TO JUST CONTINUE GROW OUT AND GROW OUT AND GROW OUT, BECAUSE THOSE INFRASTRUCTURE COSTS ARE GONNA CATCH UP WITH YOU.
UM, SO YEAH, HERE'S, HERE'S A FEW OF THE, THE TAKEAWAYS.
YOU'RE, YOU GUYS ARE IN A MUCH STRONGER FISCAL POSITION THAN MOST TEXAS CITIES, NOT JUST TEXAS.
MOST COUNT, MOST CITIES ACROSS THE, THE COUNTRY, YOUR PROPERTY TAX BEING OVER 50%, UM, IS A REALLY GOOD METRIC AND, AND INDICATOR A LOT OF PLACES WOULD DIE TO BE IN THAT POSITION.
UM, AND THEY'RE LEFT TO TRY TO MAKE IT UP WITH SALES TAX AND OTHER, AND OTHER THINGS, WHICH, IF YOU'RE USING SALES TAX FOR BASIC SERVICES AND MAINTENANCE, YOU DON'T HAVE THAT MONEY TO GO TOWARDS QUALITY OF LIFE AND PARKS.
AND WHAT YOU SEE IS, IN THE SHORT TERM, CITIES ARE SPENDING THAT MONEY ON QUAL ON PARKS AND STUFF, AND THE MAINTENANCE CATCHES UP WITH 'EM, UH, LATER ON BECAUSE THEY LOWER THAT TAX RATE TOO MANY TIMES.
UM, THE, THE HIGH DENSITY COMMERCIAL RESIDENTIAL, UM, THAT'S REALLY GENERATING THE MAJORITY OF THE TAX BASE FOR THE TOWN THAT'S HELPING, UM, OFFSET SOME OF THE OTHER HU AND THAT'S, THAT'S OKAY.
MOST, MOST SINGLE FAMILY RESIDENTIAL DOES NOT PAY FOR ITSELF.
IT'S COMMERCIAL AND HIGH DENSITY RESIDENTIAL THAT CATCHES UP.
YOU ALL HAPPEN TO HAVE A MIX THAT DOESN'T JUST COVER EVERYTHING AND ACTUALLY GIVES YOU A, A SURPLUS POSITION.
UM, SO I THINK, YOU KNOW, LOOKING STRATEGICALLY AT WHERE DO, DO YOU NEED TO PRESERVE AND ENHANCE, UM, WHEN WE START TALKING ABOUT WHAT PARTS OF THE CITY MIGHT BE REDEVELOPED AND WHAT MIGHT WE PUT THERE, OR THE VACANT LOTS THAT ARE LEFT, WHAT MIGHT WE PUT THERE? WHEN WE LOOK AT THE DIVERSIFICATION OF HOUSING OWNERSHIP VERSUS RENT, UM, WE WANT THIS KIND OF, THIS TAX PRODUCTIVITY, THE, THE UNDERSTANDING OF PROPERTY TAX AND COMMERCIAL, UH, PROPERTY TAX AND SALES TAX, THE DIFFERENT SHAPES AND SIZES OF LOTS AND HOUSING TYPES, ALL OF THAT HAS TO COME TOGETHER TO JUST LIKE A PERSONAL INVESTMENT PORTFOLIO.
YOU'RE GONNA DIVERSIFY AND INVEST IN DIFFERENT THINGS.
ADDISON HAS INVESTED IN DIFFERENT THINGS, AND THAT'S WHY YOU'RE DOING WELL.
UM, OUR RECOMMENDATION IS THAT YOU CONTINUE TO DO THAT, AND IT'S MORE WHERE DO YOU PUT THINGS AND HOW IS IT DESIGNED SO THAT IT FITS WITHIN THE ADDISON CONTEXT.
AL, I WANNA MAKE SURE I UNDERSTAND WHAT I HEARD YOU SAY.
THE THIRD POINT, HIGH DENSITY COMMERCIAL AND HIGH HIGH DENSITY RESIDENTIAL PARTS ARE GENERATING MAJORITY BY OMISSION.
DOES THAT MEAN SINGLE FAMILY ARE NOT GENERATING A SIGNIFICANT PORTION? YES.
IT DEPENDS HOW YOU WANNA DEFINE SIGNIFICANT.
UH, BUT SINGLE FAMILY HAS A LOT TO DO WITH WHAT'S THE LOT SIZE AND WHAT'S THE VALUE OF THE HOME.
SO IF YOU HAVE A REALLY LARGE LOT, BUT YOU HAVE A $4 MILLION HOME ON IT, IT'S GONNA DO WELL.
IF YOU HAVE A REALLY LARGE LOT WITH A LOWER VALUE HOME, IT DOESN'T, IT DOESN'T DO SO WELL.
SO IT'S, I MEAN, ALL OF THESE CHARTS, IF YOU LOOK AT THIS ONE IN PARTICULAR, IT BREAKS DOWN ALL THE SINGLE FAMILY BY DIFFERENT LOT SIZES.
UM, THAT SHOWS YOU THOSE, UM, YOU KNOW, THOSE 5,000 SQUARE FOOT LOTS AND SMALLER ARE THE MOST, UH, POWERFUL AND PRODUCTIVE IN TERMS OF CARRYING THEIR COSTS.
AND THEN THE BIGGER YOU GET, AGAIN, THE, THE BIGGER YOU GET, THE MORE INFRASTRUCTURE COSTS GET TAGGED TO IT.
THAT'S THE BIG WHAMMY THAT A LOT OF PEOPLE DON'T THINK ABOUT IS WHAT'S THAT INFRASTRUCTURE COST.
ONE, ONE LAST THING, KEVIN, LET ME JUST MENTION THIS.
AND THAT IS, UH, ADDISON HAS AN ASSET MANAGEMENT, UM, UH, PROGRAM.
UM, EVERY ASSET THAT WE OWN FROM THE STREETS TO THE COMPUTERS, TO THE CHAIRS, TO THE TABLES, TO THE BUILDINGS, EVERYTHING IS IN THE ASSET MANAGEMENT, UH, SYSTEM.
AND THIS ALLOWS US TO PLAN AND TRACK WHAT THE, WHAT THE NEEDS ARE IN TERMS OF, UM, IN TERMS OF REPLACING THINGS, IN TERMS OF REPAIRING THINGS, IN TERMS OF MAINTENANCE.
UM, I, I DON'T THINK WE NEED TO GO INTO A LOT OF IT NOW, BUT IT'S GOOD TO KNOW THAT WE HAVE IT AND IT'S PART OF WHY WE'RE WHERE WE ARE IN TERMS OF TAKING CARE OF STREETS AND BUILDINGS AND SO FORTH, BECAUSE WE KNOW EXACTLY WHAT WE HAVE.
WE KNOW HOW OLD IT IS, WE KNOW WHAT CONDITION IT'S IN, AND THAT'S FROM, YOU KNOW, FROM THE COMPUTERS TO THE
[01:05:01]
STREETS, TO THE BUILDINGS AND ALL THE REST.SO JUST SOMETHING TO KEEP IN MIND, KEVIN.
SO, UM, IF WE MOVE ON, SO JUST SUM UP WHERE WE'RE AT.
ADDISON DEVELOPED IN A CERTAIN WAY INTENTIONALLY.
UM, THE PREVIOUS PLANS, IF YOU GO BACK AND READ ALL OF THE DIFFERENT PLANS AND POLICIES OVER THE YEARS, AND EVEN TO BUILD ON SOME OF WHAT SUE SAID, THERE WERE VERY INTENTIONAL DECISIONS MADE THAT GOT ADDISON TO THIS POINT.
YOU'RE IN A VERY FINANCIALLY STRONG SPOT BECAUSE OF THOSE, AND THAT IS VERY DIFFERENT THAN A LOT OF PLACES IN THIS COUNTRY AND IN NORTH TEXAS.
UM, SO YOU'RE IN A VERY STRONG AND UNIQUE SPOT WHEN IT COMES TO JUST FISCAL HEALTH AND A RESILIENCE AND AFFORDABILITY, UM, IN A
YOU'RE TALKING SEVEN 50, A MILLION, YOU KNOW, A MILLION BUCKS IS WHERE THINGS ARE GONNA HAVE TO GO TO ULTIMATELY SUSTAIN THEMSELVES, AND HOW MANY PEOPLE CAN REALLY AFFORD THAT.
SO, UM, WHO LIVES IN ADDISON? IF WE LOOK AT WHO'S HERE TODAY?
UM, I DON'T WANNA SPEND A LOT OF TIME ON THIS.
THIS IS KIND OF A SNAPSHOT OF SOME OF THE DIFFERENT DEMOGRAPHICS.
UM, I'LL HIGHLIGHT A COUPLE THINGS THAT JUST JUMPED OUT TO ME JUST ON THIS SLIDE.
MEDIAN HOUSEHOLD INCOME OF A LITTLE OVER 78,000, MEDIUM HOME VALUE OF ALMOST 500,000.
THAT WAS, THAT WAS KIND OF AN INTERESTING, UM, MIX THERE.
I WOULD'VE EXPECTED US TO, EXPECTED TO SEE A HIGHER HOUSEHOLD INCOME WITH THAT KIND OF HOME VALUE.
SO JUST RETIREES, THAT'S THE CONNECTING THE DOTS, I THINK IS YOU'VE GOT FOLKS THAT YEAH, HAVE DONE WELL FOR THEMSELVES OVER TIME, AND THAT'S, YOUR RENTER GOES INTO THAT CALCULATION TOO.
SO THAT, THAT'S TO SOME EXTENT ALSO BRINGS THAT NUMBER DOWN.
AND THAT'S WHY IT'S IMPORTANT TO LOOK AT ALL OF THIS TOGETHER.
YOU GOTTA LOOK AT ALL THE, YOU CAN'T TAKE ONE CERTAIN DATA POINT AND SAY, OH, THAT'S IT.
YOU GOTTA LOOK AT THE WHOLE CONTEXT OF, OF EVERYTHING.
POPULATION AND HOUSING TRENDS.
IF YOU LOOK AT OVER THE YEARS HERE, HOW THE POPULATION'S GONE UP AND YOU CAN SEE THE ADDITIONAL HOUSING THAT MORTGAGE DID NOT INCLUDE TAXES AND INSURANCE.
THAT WAS JUST THE MORTGAGE PAYMENT.
UM, ON THE POPULATION HOUSING TRENDS, THE DARK BLUE THERE IS POPULATION GROWTH, THE BLUE BARS OR THE ADDITIONAL HOUSING UNITS.
SO YOU CAN SEE HOW HOUSING HAS MORE UNITS HAVE, HAVE BEEN ADDED.
AND TO WHAT KEN WAS SAYING EARLIER, THERE'S BEEN TIMES THROUGH HERE WHERE YOU'VE ACTUALLY LOST A LITTLE BIT OF HOUSING, UM, WHEN STUFF WAS, WAS TORN DOWN, AND THEN YOU'VE REPLACED IT WITH SOME MORE DENSITY OR SOME NEW DEVELOPMENT THAT'S BUMPED THE, THOSE UNITS BACK UP.
RACE AND ETHNICITY TRENDS, YOU CAN SEE HOW THINGS ARE TRENDING IN THE COM UH, IN THE COMMUNITY AS WELL.
UM, THE AGE TRENDS, ADDISON IS SLOWLY GETTING OLDER, TOP 2, 45, 64, 65 PLUS THEY'RE UP.
THE BOTTOM THREE ARE ALL DOWN.
SO I DON'T KNOW HOW WE DEAL WITH THAT
IT IS, IT IS A QUESTION TO ASK IS WHAT, WHAT IS THE ADDISON OF THE FUTURE LOOK LIKE? IS IT GOING TO CONTINUE TO TREND OLDER OR DO YOU THINK, UH, IT STARTS TO GO BACK THE OTHER DIRECTION? JUST SOMETHING TO THINK ABOUT THAT.
WE'LL, WE'LL BE EXPLORING MORE IN THE NEXT PHASE WHEN WE TALK, START TALKING ABOUT THE TYPES OF HOUSING AND NEIGHBORHOODS THAT, THAT WE NEED.
EMPLOYMENT SECTOR TRENDS, UH, ARE IN HERE.
LET'S TALK A LITTLE BIT ABOUT THIS.
SO, UM, DWELLING UNITS, HOUSEHOLDS, THOSE FIRST TWO, UH, COLUMNS THERE, BOTH OF THOSE HAVE BEEN INCREASING.
UM, YOU, YOU CAN SEE JUST THE, THE, JUST, YOU KNOW, THE, THE INCREASE IN DOLING UNITS AND HOUSEHOLDS FROM 1990 TO, TO TODAY, A LOT OF THAT IS THAT DENSIFICATION IN, IN THE INFILL THAT I WAS TALKING ABOUT AT THE START OF THIS PRESENTATION.
UM, THE HOUSEHOLD SIZE IS GOING THE OTHER DIRECTION THOUGH, WHICH AGAIN, I, I THOUGHT WAS A LITTLE INTERESTING.
SO YOU'RE ADDING A LOT OF UNITS, BUT YOUR HOUSEHOLD, YOUR AVERAGE HOUSEHOLD SIZE IS GOING DOWN.
I THINK A LOT OF THAT IS THE RETIREES, UM, MAYBE MORE, YOU KNOW, SINGLE, UM, A SINGLE PERSON HOUSEHOLDS.
UM, AND YOU DON'T HAVE A LOT OF THE, YOU KNOW, THE FOUR OR FIVE, SIX PERSON HOUSEHOLDS.
THE, THE FAMILIES, UH, THAT SOME OF SOME OTHER COMMUNITIES, UM, HAVE ON THE HOUSING COMPOSITION.
THIS IS A MORE, THIS IS MORE SPECIFIC.
THIS IS SOMETHING THAT JADE AND AND STAFF KEEP UP, UM, IN HOUSE.
THE, THE COMPOSITION, THE MIX OF THE DIFFERENT UNITS.
UM, YOU CAN SEE THE, THE BREAKDOWN BETWEEN THE SINGLE FAMILY, THE DUPLEX, THE TOWN HOMES, THE CONDOS, AND THE, THE MULTIFAMILY.
UM, THAT, YOU KNOW, THAT IS AN INTENTIONAL,
[01:10:01]
THERE'S BEEN AN INTENTIONAL EFFORT FROM STAFF, UM, YOU KNOW, TO CONTINUE TO TRY TO ADD SOME OF THE OWNERSHIP UNITS.UH, BUT DOING IT IS TOWNHOUSE IN THIS CAN CONTEXT RENTAL OR FOR SALE, IS THIS A FEE OWNERSHIP? WHAT TOWNHOUSE IS THERE? OWNERSHIP? YEAH.
YOU KNOW, A STAT THAT I THINK IS MAYBE WORTH MENTIONING, PREVIOUS CHART, IF YOU LOOK AT YOUR PREVIOUS CHART ON, ON POPULATION GROWTH FROM 2000 TO 2022, IT'S GROWN 25%.
IF YOU LOOK AT THE APPROVED UNITS AND FACTOR THOSE IN GOING FORWARD, THAT'S A 40% INCREASE.
SO OUR POPULATION FOR 22 YEARS GREW, CALL IT 25% PLUS OR MINUS APPROVED, NOT BUILT, WILL ADD 40% TO THE BASE.
SO AGAIN, A LARGE COHORT INCREASE IN, IN POPULATION TO BE THINKING ABOUT.
AND THAT'S BAKED IN, THAT'S APPROVED.
AND, YOU KNOW, SHOVEL READY TITLED YEP.
OUR ULTIMATE POPULATION IS WE ESTIMATE TO BE, WHAT, 30,000? YES.
THAT'S ALWAYS, THAT'S ALWAYS BEEN THE CASE.
SO WITH THAT, UH, THAT'S A, A PROJECTION.
AND WITH A GROWING COMMUNITY, A PROJECTION LIKE THAT IS VERY EASY.
'CAUSE YOU CAN ACCOUNT FOR VACANT LAND THAT NEEDS TO BE CONSUMED.
IT'S VERY MUCH A VARIABLE FOR A COMMUNITY THAT'S LARGELY BUILT OUT.
AND POPULATION GROWTH IS LARGELY GONNA RESULT FROM INFILL AND REDEVELOPMENT, WHICH IS FAR LESS PREDICTABLE THAN DEVELOPMENT OF VACANT LAND.
SO IF YOU SAY, LOOK AT THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS ESTIMATES, THAT IS THE GENERAL BALLPARK ESTIMATE FOR ADDISON'S ULTIMATE BUILD OUT.
BUT I WOULDN'T COUNT THAT AS A RELIABLE, AS, AS A RELIABLE OF A NUMBER OF, SAY, THE BUILD OUT OF PROSPER WHERE THEY HAVE LARGELY VACANT LAND TO ACCOUNT FOR AND WILL BE A MUCH MORE PREDICTABLE DEVELOPMENT PATTERN.
THIS, THIS IS ONE, SOMETIMES FOR A VERY, A YOUNGER GROWING COMMUNITY, WE WILL LOOK AT POPULATION PROJECTIONS AND SAY, OKAY, WHERE DID ALL THESE PEOPLE NEED TO GO? AND WE'VE GOT A LOT OF VACANT LAND TO PLAY WITH AND DIFFERENT OPTIONS WITH YOU ALL.
THE, THE CONTROLLING FACTOR IS WHAT'S ALREADY BEEN BUILT AND WHERE YOU'RE, YOU'RE LIMITED BY THE REMAINING VACANT LANDS AND THEN REDEVELOPMENT OPPORTUNITIES.
SO, UM, YOU'VE GOT A LITTLE, AS A COMMUNITY, YOU'VE GOT A LITTLE MORE CONTROL OVER THE ADDITIONAL DENSITY THAT THAT GETS ADDED.
BUT, UM, BUT THERE HAS BEEN SOME, YOU KNOW, ENTITLED, UM, AS WELL.
SO, UM, AND I'M GONNA, THERE'S A COUPLE OF REGIONAL SLIDES THAT, THAT HAVE BEEN ADDED IN HERE THAT I'M GONNA TALK, TALK ABOUT IN A SECOND, THAT THAT IS SOMETHING TO, UM, TO BE AWARE OF AS WELL.
SO THE HOUSING MIX TRENDS, THIS POINTS TO, YOU CAN SEE THE INCREASE IN THE SINGLE FAMILY AND CONDOS THAT HAVE BEEN ADDED IN ADDISON FROM 1980 TO, UH, TO NOW THERE'S BEEN AN INTENTIONAL EFFORT TO EXPAND THAT PORTION OF THE, THE HOUSING BASE.
UM, THAT'S IMPORTANT TO ACKNOWLEDGE THE SUCCESSES AND THE, AND WHAT'S BEEN ACCOMPLISHED IN THE LAST COUPLE DECADES.
UM, GIVEN THE DEVELOPMENT PATTERN OF ADDISON, THAT'S A, THAT'S A CHALLENGING THING TO ACCOMPLISH.
SO THE FACT THAT THAT THAT KIND OF INCREASE HAS BEEN ACCOMPLISHED IS, IS A BIG KUDOS TO STAFF IN LEADERSHIP IN THE LAST COUPLE, UH, COUPLE OF DECADES, UM, REGIONAL GROWTH.
SO LET'S ZOOM OUT A LITTLE BIT THERE.
THERE'S A LOT OF PEOPLE IN DFW AND THERE'S A LOT MORE PEOPLE COMING, UM, AS A REGION, IF YOU, YOU KNOW, IF YOU TALK TO NCT COG, UM, THE, THE REGIONAL PLANNING ORGANIZATION, UM, YOU KNOW, WE HAVE A LOT OF SINGLE FAMILY DETACHED HOUSING THAT A LOT OF COMMUNITIES THAT WERE BUILT AROUND THOSE YOUNG FAMILIES THAT WANT THE, YOU KNOW, THE, THE SCHOOLS AND THE LARGER HOMES AND, AND THAT KIND OF SUBURBAN PATTERN.
WHAT WE DON'T HAVE ENOUGH OF IS THE OTHER ENDS OF THAT SPECTRUM, OR WHAT DO YOUNG PROFESSIONALS WANT, WANT TO, THE RETIREES WANT IN TERMS OF THERE, THERE'S A TERM MISSING, MIDDLE HOUSING, RIGHT? A LOT OF STUFF.
NOT THE HIGH DENSITY APARTMENTS AND NOT THE REALLY LOW DENSITY SINGLE FAMILY DETACHED, BUT WHAT'S ALL THE STUFF IN THE MIDDLE OF YOUR COTTAGE COURTS, YOUR DUPLEX, YOUR TRIPLEX, THINGS LIKE THAT, THAT THEY'RE IMPORTANT IN KEEPING HOUSING AFFORDABLE FOR THE REGION.
IF YOU BUILD, IF ALL YOU DO IS BUILD A WHOLE BUNCH OF ONE THING, IT'S GONNA ARTIFICIALLY DRIVE THOSE PROPER, THOSE VALUES HIGHER THAN THEY REALLY NEED TO BE.
UM, SO WE NEED MORE UNITS, UM, IN NORTH TEXAS.
UH, A LOT OF THAT, THERE'S A, THERE'S AN ADJUSTMENT CULTURALLY OF, OF WHAT THAT DIFFERENT MIX NEEDS TO LOOK LIKE.
UM, YOU ALL HAVE, AGAIN, HAVE A HEADSTART ON THOSE PLACES BECAUSE OF THE WAY THAT YOU'VE BUILT IN THE PAST, IT'S GONNA MAKE YOU VERY ATTRACTIVE GOING FORWARD.
UM, A LOT OF DIFFERENT FOLKS AT DIFFERENT AGES AND STAGES AND MEANS OF LIFE ARE LOOKING FOR SOMETHING OTHER THAN THE SINGLE FAMILY DETACHED ON A BIG LOT.
[01:15:01]
FROM A LOT OF THE FOLKS THAT WE'VE TALKED THROUGH THROUGH THIS PROCESS.SO HOUSING IS DEFINITELY GOING TO BE THE BIGGEST TOPIC THAT WE DIVE INTO WHEN WE GET TO THE, THE STRATEGIES OF WHAT KIND OF HOUSING DO WE NEED AND WHERE DOES IT GO, AND WHAT DOES THAT MEAN FOR AFFORDABILITY FOR FOLKS AT DIFFERENT AGES AND STAGES OF, OF LIFE.
BUT THERE IS DEFINITELY THIS BIGGER TREND PUSHING ON ALL OF US IN NORTH TEXAS THAT THERE IS A LOT OF PEOPLE COMING HERE, AND WE AS A REGION ARE, WE'RE STARTING TO GET TO THAT POPULATION NUMBER THAT WE'RE, WE'RE BEING COMPARED WITH A NEW YORK OR CHICAGO OR AN LA OR SOMEWHERE LIKE THAT, BUT WE DON'T HAVE THE TRANSIT SYSTEM AND THE DEVELOPMENT PATTERN THAT THEY HAVE.
AND SO THAT'S A BIG ISSUE IN NORTH TEXAS.
AND TEXAS OVERALL, IS WE WANT ALL THE PEOPLE, BUT WE HAVE A DIFFERENT DEVELOPMENT PATTERN THAT IS MUCH MORE EXPENSIVE TO SERVE.
WHEN YOU THINK ABOUT WATER AND YOU THINK ABOUT TRANSPORTATION INFRASTRUCTURE, AND I QUESTION WHETHER WE AS A STATE ARE WILLING AND ABLE TO PAY THAT BILL OVER THE LONG, OVER THE LONG TERM.
WE'RE GONNA HAVE TO HAVE SOME DENSITY AND WE'RE GONNA HAVE TO HAVE MORE TRANSIT.
THAT'S THE PERSONAL RECOMMENDATION THERE.
YOU CAN SEE THE EMPLOYMENT GROWTH AS WELL.
AGAIN, THIS IS A PLACE WHERE A LOT OF PEOPLE WANT TO BE.
UM, THEY'RE GONNA START TO HAVE CHOICES OF DO THEY GO WAY OUT TO THE SALINAS AND PROSPERS OF THE WORLD, OR DO THEY COME CLOSER TO THE CORE, INTO, UM, INTO ADDISON.
UM, TONY, YOU STILL WITH US, MAN? YES, ABSOLUTELY.
ALL RIGHT, SO I'VE TALKED, UH, THE FISCAL STUFF.
I'VE TALKED TO DEMOGRAPHICS, WHO'S IN ADDISON.
I'M GONNA TURN IT OVER TO TONY ALLEN.
HE'S A PRINCIPAL WITH HAWS HILL AND ASSOCIATES.
THEY'RE, UM, THEY'RE BASED DOWN IN HOUSTON.
WE'VE DONE A LOT OF WORK WITH THEM ACROSS THE STATE.
UM, THEY'VE GOT A LITTLE, UH, A UNIQUE APPROACH TO MARKET EVALUATION.
ONE OF THE REASONS THAT WE HAVE THEM ON THE TEAM IS THEY DID A LOT OF SIMILAR WORK IN HOUSTON'S ENERGY CORRIDOR, WHICH IS VERY SIMILAR TO SOME OF THE SAME ISSUES THAT YOU ALL HAVE WITH OFFICE SPACE.
AND, AND WHAT DO WE DO WITH THAT? SO, UH, TONY, I'M GONNA TURN IT OVER TO YOU.
I'LL, I'LL DRIVE SLIDES, SO YOU JUST TELL ME WHEN TO GO TO THE, THE NEXT SLIDE.
BUT TONY'S GONNA KIND OF DIVE THROUGH SOME OF WHAT WE'VE HEARD ON THE MORE OF THE COMMERCIAL BUSINESS AND, AND DEVELOPER SIDE OF THE, THE CONVERSATION SO FAR.
AND, UH, CERTAINLY FIRST OFF, APOLOGIES FOR NEEDING TO DO THIS VIRTUALLY.
I WISH I WAS THERE WITH Y'ALL, UM, HAVING THIS DIALOGUE.
UM, BUT, UH, BUT EXCITED TO BE A PART OF THIS AND CERTAINLY EXCITED TO BE A PART OF, UH, UM, WHAT WE'RE DOING FOR, FOR THE TOWN OF ADDISON.
SO THIS, UH, THIS MARKET POSITION PIECE IS, IS ALWAYS INTERESTING BECAUSE AS KEVIN SAID, WE TAKE A SLIGHTLY DIFFERENT APPROACH FROM THE STANDPOINT THAT WE REALLY LOOK AT THE MARKET FROM FIVE DIFFERENT PERSPECTIVES.
ONE, UH, WE START OFF BY HAVING INTERVIEWS, TALKING TO INDIVIDUALS WHO ARE PROFESSIONALS, BOTH INTERNALLY, WE HAD A CHANCE TO TALK TO FOLKS THAT ARE STAFF AND LEADERSHIP, BUT ALSO HAD THE OPPORTUNITY TO TALK TO INDIVIDUALS WHO ARE WORKING IN THE INDUSTRY ON A DAY-TO-DAY BASIS.
WHETHER IT IS GOING TO BE YOUR OFFICE SPACES, YOUR, UH, RESIDENTIAL SPACES, UH, RETAIL SPACES, UH, YOU NAME IT.
UM, AND WE START THERE FIRST BECAUSE 90 TO 95% OF THE TIME, WHAT THEY TELL US ENDS UP BEING FACTUALLY CORRECT VERSUS THE PERCEPTION.
AND SO IT'S ALWAYS GOOD TO GET THAT EXPERTISE RIGHT OUT OF THE GATE BECAUSE WHEN WE START WITH DATA FIRST, WE CAN COME UP WITH FALSE ASSUMPTIONS, UM, BY STARTING TALKING TO PEOPLE FIRST, WE'RE ABLE TO THEN GO IN AND SAY, OKAY, IS THIS ACCURATE? IS THIS NOT ACCURATE? AND THAT'S REALLY WHERE THE DATA ANALYSIS COMES IN.
THE PEER PLACE REVIEW COMES IN.
AND THEN ALSO LOOKING AT THIS IN COMPARISON TO TRENDS.
UM, AND AS ANYBODY KNOWS IN THE MARKET RIGHT NOW, THAT'S INCREDIBLY IMPORTANT BECAUSE, UH, OFFICE HAS CERTAINLY BEEN TURNED ON ITS HEAD.
UM, RETAIL, UM, RESTAURATEURS, ET CETERA, ALSO HAS BEEN TURNED ON ITS HEAD.
THINGS HAVE DYNAMICALLY TRANSFORMED, UM, AS A RESULT OF THE PANDEMIC AND, UH, WHAT HAS TRANSPIRED IN THE PANDEMIC.
BUT I WILL SAY ONE POINT THERE BEFORE WE JUMP INTO THE REST OF THIS, WHAT WE SAW IN THE PANDEMIC WAS REALLY NOT AN, UH, A MAGICAL TRANSFORMATION AS MUCH AS IT WAS TRENDS THAT WERE ALREADY ON THE WAY.
THE PANDEMIC JUST PUT THOSE ON HYPER STEROIDS, UM, MUCH FASTER THAN THE MARKET WAS PREPARED FOR.
AND SO EVERYBODY IS TRYING TO LEARN FROM THAT AND REACT QUICKLY.
UM, THAT LAST PIECE IS PROFESSIONAL OBSERVATIONS, AND THAT'S REALLY THE OPPORTUNITY TO SEE AND FEEL WHAT'S GOING ON, UM, IN THE TOWN.
AND, UH, AND WE PUT ALL OF THAT TOGETHER TO REALLY THEN SAY, OKAY, HOW COMPETITIVE IS THE TOWN OF ADDISON AS IT RELATES TO, UM, YOU KNOW, ITS, ITS CURRENT SITUATION AND GOING INTO THE FUTURE.
SO WHEN WE TALK ABOUT PEER PLACES, AGAIN, THIS IS WHERE ADDISON IS IN FACT, SPECIAL AGAIN.
[01:20:01]
LOOK AT OTHER COMMUNITIES, UM, MAYBE THEIR COMMUNITIES SURROUNDING YOU OR COMMUNITIES THROUGHOUT THE STATE THAT HAVE MAYBE THE SAME POPULATION OR THE SAME TYPE OF EMPLOYMENT BASE, ET CETERA.WHAT MAKES YOU SPECIAL IS THAT YOUR PEERS IN MANY WAYS ARE NOT CITIES.
YOUR PEERS IN MANY WAYS ARE GOING TO BE OTHER COMPETITIVE MARKETS SURROUNDING YOU.
AND SO WE HAD THIS OPPORTUNITY TO HAVE A CONVERSATION, UH, WITH STAFF AND ASK THIS QUESTION, AND IT BROUGHT UP A NUMBER OF DIFFERENT AREAS THAT WE ARE LOOKING AT.
UM, WE START WITH ADDISON CIRCLE BEING OUR PEER PLACE HERE, AND I'LL TALK TO THAT HERE IN JUST A MINUTE.
UM, BUT WE ALSO THEN LOOKED AT LAS COLINS LEGACY TOWN CENTER, UM, PRESTON CENTER, THE DOMAIN IN AUSTIN, TEXAS, WEST SEVENTH STREET IN FORT WORTH, AND THEN ALSO BUCKHEAD VILLAGE IN ATLANTA, GEORGIA.
UM, THE MARKET THERE IS A LITTLE BIT DIFFERENT, BUT WE WANT TO INCLUDE THAT TO BE ABLE TO SEE HOW WE ARE COMPARED TO CERTAIN PEERS.
WHEN WE LOOK AT PEER PLACES, UH, WHAT WE LOOK AT IS REALLY TWOFOLD.
WE LOOK AT WHAT WE CALL THE CATALYTIC CORE, RIGHT? SO WHEN WE LOOK AT ADDISON, FOR EXAMPLE, ADDISON CIRCLE IS IN MANY WAYS THE CATALYTIC CORE THAT IS THAT HEART THAT EVERYTHING KIND OF STEMS FROM.
IT'S THE MAGNET THAT DRAWS OTHER THINGS TO THE AREA.
UH, THE SAME THING IF WE'RE LOOKING AT LE UH, LEGACY TOWN CENTER, FOR EXAMPLE.
WE LOOK AT WHERE IT STARTED, AND THEN WE LOOK AT THAT AS THE MAGNET THAT CREATED THE OTHER THINGS THAT ARE GOING ON AROUND IT.
UM, WE THEN BRANCH OUT AND LOOK AT THE DIFFERENT, UM, THE DIFFERENT AREA THAT'S HAPPENING WITHIN A FIVE MINUTE DRIVE TIME OF THAT.
AND THE FIVE MINUTES WAS DECIDED AS A GROUP HERE FOR THIS PARTICULAR PROJECT, SO THAT WE'RE BOTH UNDERSTANDING YOUR CORE, BUT ALSO UNDERSTANDING THE GENERAL MAGNETISM OF THAT CORE.
WHAT IS IT CAPABLE OF DRAWING IN? UM, AND SO NEXT SLIDE.
KEVIN, CAN I, TONY, CAN I INTERRUPT DENISE? YES, ABSOLUTELY.
SO, I, I THINK I WAS A LITTLE SURPRISED HERE AND, AND I'M CURIOUS IF YOU ALL DISCUSSED IT AT ALL, IS WHY UPTOWN WASN'T REALLY DROVE INTO, INTO THIS DISCUSSION BEING PART OF DFW FROM A STANDPOINT OF A LEGACY TOWN VILLAGE IS NEW, IT HAD LAND UNLIMITED WHEN IT WAS DEVELOPED.
UPTOWN HAS A LOT MORE SIMILARITIES TO US, WHICH IS HEAVY APARTMENTS GETTING AGED WHERE YOU'RE HAVING TO DO RE, YOU KNOW, REDEVELOPMENT PROJECTS.
AND I'M JUST CURIOUS WHY IT DIDN'T REALLY MAKE THE LIST, GIVEN THAT IT'S SO CLOSE IN PROXIMITY TO US AS WELL.
SO ULTIMATELY THE LIST WAS, UM, AND, AND UPTOWN WAS PART OF THE DISCUSSION.
SO, AND IT CERTAINLY WAS DISCUSSION, PART OF THE DISCUSSION IN THE INTERVIEWS AS WELL.
UM, I THINK ULTIMATELY WHEN WE SAT DOWN AND HAD THE, THE, UM, YOU KNOW, COLLABORATED WITH STAFF, ET CETERA, THE THE ONES THAT YOU SEE ARE ULTIMATELY THE GROUP THAT, UH, THAT FOLKS FELT WOULD BE, UH, THE GROUPS WE SHOULD BE TAKING A LOOK AT.
IT CERTAINLY DOESN'T TAKE AWAY FROM UPTOWN, UM, AS, AS A COMPETITOR.
AND, AND I, I APPRECIATE WHAT YOU'RE SAYING BECAUSE IT, UH, UM, THERE ARE LIKENESSES THAT ARE WORTH NOTING.
SO, UM, BUT ULTIMATELY AS A GROUP, IT WAS DECIDED TO GO AHEAD AND RUN WITH THE LIST THAT WE HAVE CURRENTLY.
I DON'T KNOW IF THAT ANSWERS THE QUESTION CORRECTLY OR NOT, FROM, FROM A STANDPOINT.
I GUESS I DON'T, I GUESS I DON'T KNOW WHY IT GOT ELIMINATED.
I DON'T KNOW, KEN, IF YOU WANT TO ADD SOME CONTEXT TO STAFF.
'CAUSE THIS FINAL LIST IS WHAT I'D BE HAPPY TO ADDRESS THAT.
I THINK WHILE ADDISON IS URBAN, UH, I'D SAY IT'S CLOSER TO THE URBAN SUBURBAN CONTEXT OF PLACES LIKE, UH, PLANO, UM, I'D SAY, UH, AND, AND SOME OF THE OTHER COMMUNITIES, BUCKHEAD VILLAGE, UH, CERTAINLY PRESTON CENTER, UH, THE SCALE OF UPTOWN, PARTICULARLY WITH THE INVESTMENT WE'RE SEEING NOW, I THINK IS A, AT A DIFFERENT SCALE THAN WHAT WE'RE SEEING OR WHAT WE'VE SEEN IN ADDISON AND WHAT WE'RE SEEING MOVING FORWARD.
SO WHILE THERE ARE A LOT OF SIMILARITIES AND IT WOULD BE A GOOD COMP, UH, WE ULTIMATELY DIDN'T LAND THERE.
UM, BECAUSE I, I THINK WE, WHILE WE COMPETE WITH UPTOWN, UH, QUITE A BIT, WE DO COMPETE WITH THESE, UH, OTHER AREAS AS WELL.
I, UH, DAVE COLLINS, I TRYING TO KINDA WRAP MY HEAD AROUND THIS WHOLE SECTION.
MM-HMM,
SO IN SOME WAYS YOU'RE LOOKING AT ADDISON CIRCLE, BUT WE HAVE VILLAGE ON THE PARKWAY, WHICH IS QUITE A RETAIL ENGINE.
UM, WHEN YOU LOOK AT THE OFFICE COMPONENT, THE, YOU KNOW, THE TOLLWAY CORRIDOR IS REALLY THE DRIVER.
SO HOW DO YOU SYNTHESIZE ALL OF THIS, SOME OF YOUR CHARTS KIND OF STEP WAY OUT.
SOME ARE VERY SPECIFIC, GIVE US A LITTLE BIT OF FLAVOR OF HOW THAT ALL FITS TOGETHER.
AND ONE THING I FAILED TO MENTION AT THE BEGINNING, AND I SHOULD HAVE IS, UM, THERE'S A REASON WE CALL THIS PRELIMINARY FINDINGS, RIGHT? THERE'S A LOT MORE DATA THAT GOES INTO THIS.
UM, THERE'S, THIS IS REALLY, AS KEVIN SAID AT THE BEGINNING,
[01:25:01]
MORE THE HIGH LEVEL, UH, THE GREATEST HITS, IF YOU WILL.BUT WHAT WE TRIED TO DO HERE, ONCE WE RECOGNIZE, AGAIN, BECAUSE WE DIDN'T, UM, WE, WE LOOKED AT IT IN TWOFOLD AREAS.
WE LOOKED AT YOUR MAGNET, UM, ADDISON CIRCLE, UM, AND, AND YOU, YOU HIT THE NAIL ON THE HEAD TOO.
THAT VILLAGE ON THE PARKWAY IS THAT OTHER PIECE.
AND WE'LL TALK ABOUT THAT IN A SECOND TOO.
BOTH OF THOSE ARE WHAT WE CALL NEAR DESTINATIONS.
AND, AND I'LL TELL YOU WHY WE DIDN'T CALL THEM JUST FLAT OUT DESTINATIONS, UM, WHEN WE GET TO THAT SECTION.
BUT THEN THESE OTHER AREAS THAT ARE HIGHLIGHTED, THE, UH, THE MID TOLLWAY, THE CORRIDOR ALONG THERE, UM, AND THE STRENGTH IN OFFICE.
I MEAN, YOU'VE GOT 9.9 MILLION SQUARE FEET OF OFFICE SPACE, 7.7 MILLION OF THAT IS IN THAT AREA, THAT'S SHOWN ON THIS MAP IN, IN THE BROWN.
UM, BUT IF YOU ADD IN ADDISON CIRCLE, THEN YOU'RE LOOKING LITERALLY AT ALMOST 83% OF THE OFFICE SPACE IN, UM, YOU KNOW, IN, IN THE TOWN OF ADDISON.
UM, THE SAME THING, RESTAURANT ROW.
AND, AND THIS CAME UP MULTIPLE TIMES IN SEVERAL OF OUR INTERVIEWS.
UM, WE LOOKED AT VILLAGE ON THE PARKWAY DIFFERENT BECAUSE IT DOES STAND AS, AS ITS OWN NEAR DESTINATION OR DESTINATION DEPENDING ON YOUR POINT OF VIEW.
UM, BUT THEN WHEN YOU ADD IN, UM, WHAT, UH, WHAT SOME OF THE, UH, YOUR COLLEAGUES WERE CALLING RESTAURANT ROW, UH, YOU END UP WITH ALMOST 78% OF ALL OF THE RETAIL AND RESTAURANT SPACE WITHIN THAT AREA.
SO WE WANTED TO BE ABLE TO RECOGNIZE BOTH WHAT'S GOING ON AS PEERS, BUT ALSO TO TAKE A LOOK AT THE AREAS THAT ARE MOST DOMINANT WITHIN YOUR MARKET AND LOOK AT THEM, UM, AND STEP AWAY AND LOOK AT THEM SEPARATELY AND SEE WHAT STORY THEY TELL AS WELL.
SO THAT'S ALWAYS THE PIECE WE'RE LOOKING FOR IS TO BE ABLE TO LOOK AT ALL OF THESE THINGS, PUT IT TOGETHER AND SAY, OKAY, WHAT IS THE STORY, UH, THAT'S GOING ON IN, IN THE TOWN OF ADDISON AS IT RELATES TO THE MARKET? WHERE HAS IT BEEN? WHERE'S IT HEADED? UM, AND HOW DO EACH OF THESE AREAS PLAY, UM, INTO THAT? AND SO, AND AT THE SAME TIME, LOOKING AT HOW YOUR STORY COMPARES TO WHAT'S GOING ON IN OTHER AREAS.
SO YOU'RE RIGHT, YOU SEE A LOT OF BOUNCING BACK AND FORTH, AND THAT'S PRIMARILY RIGHT NOW IN THIS, BECAUSE WE'RE GIVING YOU A HIGH LEVEL OF MA A HIGH LEVEL OF INFORMATION, UM, AND YOU'RE NOT GETTING TO SEE ALL OF THE OTHER THINGS THAT GO ALONG WITH THIS.
UM, BUT AT THE SAME TIME, IT'S, UH, IT'S TRYING TO BE ABLE TO SHOW KIND OF WHAT'S GOING ON IN MULTIPLE AREAS.
AND SO WE HAD A COUPLE CHOICES.
WE COULD HAVE GONE WITH PEER COMMUNITIES AND THEN COME DOWN AND LOOKED AT AND, AND TOLD THE STORY FROM A PERSPECTIVE OF WHAT'S HAPPENING INTERNALLY.
UM, INSTEAD WE TRIED TO STAY WITH THE TOPICS.
SO THAT'S WHERE YOU SEE SOME OF THAT BOUNCING BACK AND FORTH.
SO THE AREAS, THE AREAS THAT WE TOOK A LOOK AT HERE, UM, YOU AS MENTIONED, UM, THE, THE AREAS THAT WE CALLED THE NEAR DESTINATIONS, ADDISON CIRCLE VILLAGE ON THE PARKWAY, MID TO WAKE CORRIDOR AND RESTAURANT ROW, BUT ALSO WE PULLED OUT THE AREA THAT SEEMED TO BE, UM, CENTRIC TO THE AIRPORT, UM, WHETHER IT WAS ON AIRPORT PROPER OR OTHER AREAS THAT TENDED TO, TO APPEAR TO GRAVITATE TOWARDS THE AIRPORT OR IMPACTED BY THE AIRPORT.
AND SO WE ENDED UP LOOKING AT THESE AREAS.
BY THE WAY, WE HAVE ALSO, UH, WE HAVE VITRUVIAN, UM, WE HAVE VITRUVIAN PARK IN THE MIX AS WELL.
UM, WE DID NOT SHOW THAT IN THIS PARTICULAR ANALYSIS, PRIMARILY, UM, BECAUSE THE OFFICE AND RETAIL COMPONENTS AREN'T AS, AS STRONG IN THAT AREA.
UM, BUT WE DO INCLUDE THAT IN THE ACTUAL REPORT ITSELF.
AND SO, SO THE, UH, SO WHAT WE'VE DONE THEN TO, TO LOOK AT, WE TAKE ALL THAT INFORMATION AND THEN WE DIVIDE OUR ANALYSIS INTO FOUR DIFFERENT FOOD GROUPS, RIGHT? YOU'VE GOT THE BUILT ENVIRONMENT, WHICH IS WHAT WE'LL TALK THE MAJORITY ABOUT TODAY.
UM, THAT BUILT ENVIRONMENT PIECE.
AND THAT LOOKS AT ALL THE PHYSICAL ASPECTS, THAT'S LOOKING AT HOW YOU RATE IN TERMS OF YOUR LOCATION.
UM, BUT IT ALSO LOOKS AT HOW YOU RATE IN TERMS OF YOUR VARIOUS TRAITS ASSOCIATED WITH OFFICE SPACE, WITH RETAIL, MULTIFAMILY, INDUSTRIAL STRUCTURES, UM, ET CETERA.
YOU SEE ALL OF THESE DIFFERENT FACTORS AND WE TRY TO TAKE INTO CONSIDERATION ALL OF THE DIFFERENT THINGS GOING ON.
SO WHETHER IF IT'S YOUR OFFICE, THEN WE'RE GONNA BE PAYING ATTENTION TO YOUR VACANCY RATES, BUT WE'RE ALSO GONNA BE PAYING, YEAH, ATTENTION TO YOUR RENTAL RATES IN COMPARISON OR THE AGE OF THE STRUCTURES, THE QUALITY OF THE STRUCTURES, WHAT ACTUALLY IS GOING ON WITHIN THE STRUCTURES, THE QUALITY OF OF PRODUCT THAT'S AVAILABLE TO FOLKS, AND HOW DOES THAT MEET TREND.
WE TAKE A LOOK AT YOUR AUDIENCES, AND IN THIS CASE FOR PURPOSES OF A COMPREHENSIVE PLAN, WE LOOK
[01:30:01]
AT TWO SETS OF AUDIENCES.WE LOOK AT RESIDENTS, AND IN THIS CASE, WE'RE LOOKING AT RESIDENTS AND EMPLOYEES THAT ARE WITHIN FIVE MINUTE DRIVE TIME OF THESE MAGNETS.
FORTUNATELY, SOME OF THOSE NUMBERS AND LOOKING AT THOSE AND COMPARING 'EM AGAINST WHAT KEVIN JUST PRESENTED EARLIER, YOU'LL SEE THOSE NUMBERS ALSO REALLY PAN OUT IN COMPARISON WITH THE TOWN AS WELL.
UH, THAT THIRD PIECE IS THE BUSINESS ENVIRONMENT THAT'S NOT LOOKING AT THE STRUCTURES, THAT'S LOOKING AT YOUR CONTEXT OF YOUR BUSINESS COMMUNITY AND WHAT'S GOING ON WITHIN THAT BUSINESS COMMUNITY.
AND WE LOOK AT THAT A COUPLE OF DIFFERENT WAYS TOO.
UM, ONE OF THE MOST PARTICULAR WAYS WE LOOK AT IS, UM, IF YOU HAVE THOSE DESTINATIONS THAT ARE THE MAGNETS TO DRIVE PEOPLE TO YOUR COMMUNITY, UM, VERSUS WHAT WE CALL CONVENIENCE BASED.
IF YOU COMPARE RESTAURANT ROW, FOR EXAMPLE, TO, UM, VILLAGE ON THE PARKWAY, IT GIVES YOU AN IDEA OF WHAT IS CLUSTERED AND THE IMPACT OF CLUSTERED VERSUS WHAT IS CONVENIENCE DRIVEN, WHICH IS WHAT YOU SEE ON LINEAR DEVELOPMENT ALONG THE PARKWAYS AND HOW THAT IMPACTS THE WAY RESTAURANTS ARE FARING THE WAY STORES OR BOUTIQUE, UM, STORES, ET CETERA, ARE FARING.
AND THEN THE LAST PIECE IS ECONOMIC INFRASTRUCTURE.
WE DON'T HAVE THAT IN THIS PRESENTATION, UM, BUT 'CAUSE WE'RE STILL WORKING ON SOME OF THIS INFORMATION, AGAIN, IT'S PLACE-BASED, NOT CITY-BASED.
BUT WE LOOK AT THE INCENTIVES THAT ARE AVAILABLE, THE CODES AND HOW THE CODES IMPACT THAT AREA.
THE MARKETING AND THE MARKETING IS A GREAT EXAMPLE OF, UH, OF HOW PLACES ARE TREATED DIFFERENTLY.
AND THEN ALSO CUSTOMER SERVICE, UH, TO NAME SOME OF THE HIGHLIGHTS.
UM, WHAT WE'VE SEEN AND HEARD, UM, THIS GETS BACK TO SOME OF THE INTERVIEW, UH, DISCUSSION.
ONE OF THE IMPORTANT PIECES, PROXIMITY TO DALLAS AND PARTICULARLY NORTH OF DALLAS, AND ONE OF THE POINTS THAT WAS HIGHLIGHTED THERE WAS THE MID TOLLWAY IS, UH, HAS THE BEST OF BOTH WORLDS FROM THAT STANDPOINT.
YES, YOU'RE NOT THE PLACE WHERE ALL THE VERY COOLEST THINGS ARE GOING ON RIGHT NOW, SUPPOSEDLY IN PLANO AND FRISCO, ET CETERA, BUT YOU HAVE CLOSE PROXIMITY TO THERE AT THE SAME TIME YOU HAVE CLOSE PROXIMITY TO UPTOWN, TO DALLAS, ET CETERA.
SO YOU HAVE GREAT POSITIONING IN THAT REGARDS.
ADDISON HAS MORE RESTAURANTS PER CAPITA THAN MOST PLACES, I'LL BE HONEST, THAT WAS SOMETHING SAID TO US.
WE HAVE NOT NECESSARILY TRIED YET TO SEE IF THAT'S A TRUE STATEMENT.
WE WILL, BEFORE WE'RE DONE WITH THE, THE ANALYSIS.
UM, DOWNTOWN DALLAS IS STRUGGLING WITH ITS OFFICE COMPONENT.
UM, YOUR DEVELOPMENT COMMUNITY SAYS THAT'S GOOD NEWS FOR YOU.
UM, AND THE TRENDS SAY THAT TOO BECAUSE THE TRENDS ARE MOVING, UM, WITH THE, UH, WITH THE MOVE OF WORK FROM HOME AND GETTING CLOSER TO, UH, YOUR TARGETS.
ADDISON IS EXTREMELY WELL POSITIONED THAT WAY.
TRANSIT-ORIENTED DEVELOPMENT, THE DART STATION AND ITS POTENTIAL TO CATALYZE THE, UM, THE ADDISON CIRCLE AREA AND BRING MORE LIFE INTO THAT AREA, UM, IS CONSIDERED A STRENGTH.
AND THEN THE AIRPORT AND THE FACT THAT THE AIRPORT IS INCREASINGLY BRINGING A NEW AUDIENCE TO ADDISON, UM, THAT IS TO YOUR BENEFIT AS WELL.
THE WEAKNESSES SIDE OF IT, UM, SURPRISINGLY OR NOT WALKABILITY, CONNECTIVITY, QUALITY OF AMENITIES, ET CETERA.
WE HAVE TO LOOK AT THAT FROM THE PERSPECTIVE OF NOT JUST ADDISON CIRCLE, UM, AND NOT JUST VILLAGE ON THE PARKWAY, BUT YOUR OTHER MAJOR GENERATORS AND HOW THEY COMPARE.
UM, AND WHAT WE ARE SEEING IN TRENDS IS THAT MOVE AWAY FROM CONVENIENCE, MOVE TOWARDS EXPERIENCE BASE AS IT RELATES TO YOUR OFFICES, AS IT RELATES TO YOUR RETAIL AND RESTAURANT.
AND PEOPLE ARE MAKING DECISIONS BASED ON THE HIGHEST QUALITY OF AMENITY, OPPORTUNITIES, EXPERIENCES, WALKABILITY, CONNECTIVITY.
THOSE ARE ALL REALLY CREEPING UP AS BEING SOME OF THE MOST IMPORTANT THINGS TO CONSIDER IN TERMS OF LOCATING IN PLACES WHERE EMPLOYEES WANT TO, UH, WORK AND LIVE.
SO THOSE ARE THINGS TO BE THINKING ABOUT IN THE BACK.
UM, AS WE'RE HAVING THESE DISCUSSIONS.
RETAIL, UM, WAS NOTED TO BE DIFFICULT OUTSIDE OF PROXIMITY TO ADDISON CIRCLE AND BELTLINE ROAD.
UH, VITRUVIAN PARK IS A GOOD EXAMPLE OF THAT AND HOW THEY'VE HAD TO PIVOT A BIT ON THEIR RETAIL STRATEGIES, UM, BECAUSE THEY ARE A BIT DISTANT.
UM, LOOKING AT THE NUMBERS, AND WE'LL GET TO THOSE NUMBERS IN A MINUTE.
UM, ONE OF THE BIG THINGS, AND AGAIN, THIS IS THE FEEDBACK WE RECEIVED, IS THAT THE, UH, HOTEL AND HOSPITALITY SYSTEM IS, UH, IS SHOWING ITS AGE.
AND THEN FINALLY ADDISON NEEDS SOMETHING TO DO ENTERTAINMENT DESTINATIONS OUTSIDE OF RESTAURANTS.
THAT CAME UP TIME AND TIME AGAIN, UM, FROM INDIVIDUALS WHO ARE INVESTORS IN THE COMMUNITY.
SO AS IT RELATES TO THE BUILT ENVIRONMENT, AND HOLD ON A SECOND ON, HANG ON, HOLD ON.
I'M CURIOUS, WHAT ARE THE QUALITY AMENITIES THAT WE'RE MISSING THAT OTHER AREAS,
[01:35:01]
UH, SHOPPING AREAS HAVE? SO THAT, THAT IS AN OUTSTANDING QUESTION BECAUSE WHAT YOU SEE IS, AND LET'S TAKE VILLAGE ON THE PARKWAY IS A GOOD EXAMPLE, AND THEN WE'LL FLIP OVER TO OFFICE IF THAT'S OKAY.UM, VILLAGE ON THE PARKWAY BY THEIR OWN ADMISSION IS A GREAT PLACE TO PARK AND A GREAT PLACE TO GO TO A RESTAURANT.
UM, BEYOND THAT THOUGH, IN TERMS OF THE OPPORTUNITIES FOR OPEN SPACE, THE OPPORTUNITIES TO SIT OUTSIDE AND LISTEN TO MUSIC, UM, THOSE INSTAGRAMABLE MOMENTS, WHAT WE'RE STARTING TO SEE, AND, AND I'LL HIT ANOTHER PIECE IN JUST A SECOND, IS AN INCREASING TREND TOWARDS PLACES WHERE I CAN PARK.
BUT I CAN SPEND UP TO FOUR HOURS IN A SINGLE LOCATION.
AND SO THAT MEANS GOING TO THAT RESTAURANT AND THEN MAYBE GOING TO A BAR OR MAYBE GOING TO ANOTHER ACTIVITY.
UM, WHAT STUDIES SHOW IS IF I CAN KEEP YOU BETWEEN FOUR TO SIX HOURS, YOU'RE GONNA SPEND INCREASINGLY MORE MONEY.
WHAT THE OTHER SIDE OF THAT TREND IS SHOWING IS THAT MORE AND MORE PEOPLE ARE GRAVITATING TOWARDS THAT MODEL AS OPPOSED TO JUST PICKING A PLACE AND GOING TO EAT.
SO THAT'S WHERE YOU'RE STARTING TO SEE THE REFLECTION ON, YOU KNOW, THAT NEED TO BE ABLE TO HAVE MORE OF THAT TO REMAIN COMPETITIVE.
THE GOOD NEWS IS THE VILLAGE ON THE PARKWAY FOLKS, FOR EXAMPLE, ARE WELL AWARE OF THAT AND TRYING TO DO THEIR OWN INTERNAL PIVOT TO THE EXTENT THAT THEY CAN, UM, THE OFFICE SIDE OF IT.
UH, WHAT WE'RE SEEING IS THAT FLIGHT TO QUALITY, WHERE AFTER THE PANDEMIC, PEOPLE SAID, OKAY, WE REALLY DON'T LIKE THE OPEN CONCEPT OFFICE SPACE.
WE WANT OFFICES, BUT WE DON'T WANT THE OFFICES YOU HAD BEFORE YOU WENT OPEN CONCEPT.
YOU KNOW, WE WANT MORE HEALTH AMENITIES, WE WANT OUR LIFESTYLE AMENITIES, WE WANT MORE GREEN SPACE.
AND NOW INCREASINGLY, UM, A LOT OF THAT NEEDS TO HAPPEN OUTSIDE, IMMEDIATELY ADJACENT, PREFERABLY A PLACE WHERE I CAN THEN WALK AND HAVE CHOICES OF DIFFERENT PLACES TO GO.
AND SO WE ARE SEEING WITHIN THAT OFFICE COMPLEX, AND AGAIN, THIS IS NOT JUST ADDISON, THIS IS HAPPENING ACROSS, YOU KNOW, THE UNITED STATES.
UM, YOU'RE SEEING THAT PUSH TO HAVE OFFICE SPACES THAT HAVE A WHOLE PACKAGE OF AMENITIES THAT ARE DIFFERENT THAN WHAT MOST OFFICE, PARTICULARLY OFFICE OF THE AGE THAT WAS CONSTRUCTED IN ADDISON, UM, DIFFERENT THAN WHAT THEY HAVE TO OFFER.
AND SO THAT'S REALLY CREATING AN, IT'S, IT'S AN OPPORTUNITY FOR OFFICE DEVELOPERS TO PIVOT.
UM, BUT IT'S ALSO A THING WE HAVE TO KEEP IN MIND AS COMMUNITIES BECAUSE SOME OF THOSE, UM, AMENITIES ARE GOING TO BE AMENITIES THAT MAY NEED SUPPORT FROM THE PUBLIC SIDE, PARTICULARLY ALONG A LARGER CORRIDOR LIKE THE MIDWAY CORRIDOR.
SO DOES THAT HELP ANSWER THE QUESTION? YES, THANK YOU.
YOU, SO CERTAINLY OUT OF THESE AREAS THAT YOU PICKED AS YOUR, WHO YOU'RE HIGHLIGHTING HERE, UHHUH,
AM I MISSING SOMETHING IN THOSE DEVELOPMENTS? SO THERE'S A COUPLE THINGS TO THINK ABOUT THERE TOO.
AND SO LET'S GO BACK TO VILLAGE ON THE PARKWAY, FOR EXAMPLE.
WHEN WE HAD OUR CONVERSATIONS WITH FOLKS THERE, ONE OF THE THINGS THAT THEY POINTED OUT WAS THAT WHEN THEY STARTED OUT AND TOOK OVER, UM, THEY HAD, UM, THEY HAD MORE OF THE BOUTIQUE SHOPPING.
WHAT THEY FOUND WAS MORE AND MORE OF THAT WANTED TO MOVE OUT, AND MORE AND MORE RESTAURANTS WANTED TO MOVE IN, WHICH IS GREAT BECAUSE IT'S AN INCREDIBLY PRODUCTIVE, UM, PLACE.
BUT WHAT WE FIND FROM A DESTINATION PERSPECTIVE IS WHAT WE CALL THE TEN, TEN TEN RULE, IS IF YOU WANT TO BE A DESTINATION, THE THINGS YOU NEED TO BE ABLE TO PROVIDE ARE GOING TO BE 10 DISTINCTIVE RESTAURANTS.
NOT NOT YOUR NATIONAL BRANDS, BUT SOMETHING WORTH DRIVING TO, UM, 10, UM, BOUTIQUE SHOPPING DESTINATIONS, MEANING THAT, AGAIN, YOU CAN, YOU THEY'RE UNIQUE TO THAT AREA.
UM, AND THEN 10 DIFFERENT PLACES TO STAY OPEN PAST 6:00 PM AND HAVING THAT, HAVING THE GREEN SPACE COMPONENT, YOU ADD THOSE TOGETHER.
IF YOU LOOK AT THE DOMAIN AS AN EXAMPLE, THE DOMAIN IS A SHOPPING DESTINATION.
IT'S A RESTAURANT DESTINATION, IT'S A PLACE TO HANG OUT.
UM, AND THEY HAVE STARTED TO HAVE SOME OF THOSE MORE OPEN SPACES.
THE THING THAT THAT WE FOUND IS THE OPEN SPACES DON'T HAVE TO BE BIG.
UM, THEY JUST HAVE TO BE A PLACE WHERE PEOPLE CAN SOCIALIZE AND HANG OUT.
AND SO YOU ARE SEEING PLACES LIKE THE DOMAIN THAT HAS ENOUGH OF EACH OF THOSE TO BE A, A DESTINATION.
IS IT THE MOST DESIRABLE? IT'S REALLY NOT FOR ME, IT'S NOT MY PLACE TO GO.
UM, WHEN WE TALK ABOUT A PLACE LIKE LEGACY TOWN CENTER, AND I THINK ONE OF THE OTHER, UH, INVESTORS SUMMED IT UP BEST,
[01:40:01]
UM, IT PROBABLY DOESN'T MEET ALL THOSE METRICS PER SE.UM, BUT WHAT THEY HAVE DONE INCREDIBLY WELL IS TO CONVINCE PEOPLE THAT THEY DO.
SO IT'S IN THAT CASE, MARKETING TRUMP'S REALITY TO SOME DEGREE.
AND AGAIN, I SAY THAT I HAVEN'T GONE OUT AND MEASURED TO SEE IF THEY HAVE THE 10, 10, 10 RULE.
UM, THEY PROBABLY DO COME CLOSE BECAUSE OF, UM, THE AMOUNT OF STUFF THAT THEY HAVE.
BUT, UM, IF YOU WANT TO SEE A PLACE THAT IS PROBABLY CLOSER TO THAT FULL ON DESTINATION, BUCKHEAD VILLAGE, PROBABLY ONE OF THE BEST BETS, INCREDIBLY WALKABLE THEY HAVE, BUT IT'S A DIFFERENT KIND OF CONCEPT.
SO YOU'RE RIGHT, EACH ONE OF THESE IS DIFFERENT, AND EACH ONE WAS DEVELOPED IN A DIFFERENT TIMEFRAME.
UM, AND SOME OF THEM HAVE THE KEY ASPECTS.
SOME OF THEM ALSO ARE GONNA STRUGGLE TO DO THE SAME THINGS.
AND ONE OF THE, ONE OF THE STRUGGLES I WOULD SAY IN, IN, IN DOING THIS EXERCISE AND SPEAKING TO WHAT YOU, UH, YOUR QUESTIONS EARLIER, DENISE, IS ADDISON IS SO UNIQUE, IT'S, IT'S HARD TO FIND COMPARISON, UH, PLACES.
SO, UH, IT, IT'S, IT'S SO UNIQUE THAT THERE'S NOT, UH, THERE, I WOULD SAY THERE'S NOT ANY EXAMPLE THAT JUST PERFECTLY ALIGNS WITH ADDISON.
SO THAT WAS, UM, A FUN EXERCISE, BUT A STRUGGLE AT TIMES TOO.
HEY, TONY, I WOULD COMPLETELY AGREE WITH JEN.
I, WE WANT TO SHOOT TO TRY TO WRAP UP AS CLOSE TO EIGHT AS WE CAN.
SO TRY TO, I KNOW WE'RE ASKING YOU TO SPEED THROUGH SOME STUFF, BUT TRY TO HIT HIGH POINTS AND THEN FOR THOSE WHO WANT TO STICK AROUND AND ASK A, ASK A FEW QUESTIONS AFTER THAT, MAYBE, UM, WE CAN TAKE SOME MORE THEN OR, UM, CAPTURE QUESTIONS AND, AND GET RESPONSES BACK AFTER.
BUT WE WANNA RESPECT THE, THE COMMITTEE'S TIME.
SO DO WHAT YOU CAN TO GO QUICKER.
NO, THANK YOU FOR THAT, KEVIN.
KEVIN, WELL ENOUGH TO KNOW THAT KNOWS.
I CAN GO ON A TWO HOUR SERMON.
YES, TAYLOR, WE'LL BE, WE'LL BE REAL QUICK.
UH, BUT I THINK THAT YOU DID A GREAT JOB ON PUTTING THESE NUMBERS TOGETHER AND WE GET IT.
IT'S HARD, YOU GOTTA PARSE THROUGH THE DATA, BUT MY WOULD SUGGEST TO THE GROUP, 'CAUSE I THINK IT'S IMPORTANT FOR US TO LOOK AT THIS IN TERMS OF THE ASPIRATIONAL CITIES.
I WOULD SAY THAT WE ARE, UM, BEHIND IN ALMOST EVERY CATEGORY.
AND, AND, YOU KNOW, AS YOU'RE REALLY LOOKING AT THIS, IT'S SOMETHING THAT WE SHOULD BE VERY AWARE OF TO KNOW WHERE WE REALLY FIT IN, IN THE GREATER, YOU KNOW, REAL ESTATE MARKET.
UM, SO AS YOU'RE UPDATING OR THINKING ABOUT THIS, IT'S OKAY, YOU'RE NOT GONNA HURT OUR FEELINGS.
YOU KNOW, WE'RE LOOKING AT A $37 OFFICE RENT, AND THAT'S FINE.
BUT YOU'LL, YOU SHOULD BE LOOKING AT THIS WHERE YOU'RE PULLING OUT THE OUTLIERS AND REALLY GETTING US TO FOCUS ON THE AREAS THAT ARE GONNA REDEVELOP AND WHERE DO WE REALLY STACK UP AND WHERE SHOULD WE FOCUS OUR, OUR TIME AND ENERGY.
BUT DON'T LET ME STEAL YOUR THUNDER.
LET'S GO TO HOTELS, WHICH IS ANOTHER VERY, VERY IMPORTANT TOPIC.
NO, AND, AND THAT'S, THAT'S AN EXCELLENT POINT BECAUSE THERE YOU ARE IN A FANTASTIC POSITION.
IT'S, AND IF I WAS TO SUM UP EVERYTHING, I'D SAY ADDISON'S GREAT, BUT IF YOU LOOK OUT OVER THE HORIZON, YOU CAN SEE THE STORM CLOUDS.
SO, UM, RUNNING THROUGH THE BUILT ENVIRONMENT PIECE, JUST VERY QUICKLY, CAN WE POP BACK TO THE OTHER SLIDE REAL QUICK, UH, KEVIN, AND, AND IT DOES SHOW EXACTLY THAT YOU HAVE, YOU, YOU ARE COMPETITIVE.
THERE ARE OTHERS THAT HAVE HIGHER RENTAL RATES THAN YOU, PARTICULARLY AS IT RELATES TO OFFICE, AS IT RELATES TO RETAIL.
IF WE GO TO THE NEXT SLIDE AND COMPARE THAT ACROSS THE BOARD, WHAT YOU SEE IS ADDISON CIRCLE HAS THE HIGHEST OFFICE RATES, OF COURSE.
UM, VILLAGE ON THE PARKWAY HAS THE O THE HIGHEST RETAIL RATES.
SO THAT'S NOT A BIG SURPRISE, BUT THAT DOES GO BACK TO THAT QUALITY OF CLUSTER.
UM, IN TERMS OF YOUR BUILT ENVIRONMENT, THIS IS ONE PIECE I REALLY WANNA HONE IN ON BECAUSE A LOT OF PEOPLE TALK ABOUT, UH, VACANCY RATES AND VACANCY RATES ARE VERY IMPORTANT.
YOUR VACANCY RATES HERE ARE NOT TERRIBLE, THEY'RE ALSO NOT NECESSARILY GOOD.
UM, PROBABLY THE MORE WORRISOME PIECE THAT YOU NEED TO BE PAYING ATTENTION HERE IS SOMETHING THAT'S NOT GONNA BE SHOWING UP IN THESE SLIDES, BUT IT WILL BE SHOWING UP IN THE REPORT.
IS THAT IF, UH, LET'S FLIP TO THE NEXT SLIDE REAL QUICK, KEVIN, AND I'LL HIT IT.
UM, IS THAT IT'S, UM, OH, I'M SORRY.
WELL, LET ME HIT ONE MORE SLIDE IF YOU CAN.
SO IF WE LOOK AT THE, UH, IF WE LOOK AT WHAT'S GOING ON WITHIN THE COMMUNITY, YOUR VACANCY RATES 20.2%.
ADDISON CIRCLE, 18.9%, UM, FOR YOUR OFFICE SPACES, YOU NEED TO BE PAYING ATTENTION TO THAT.
WE HAVE MEASURED WHAT'S GOING ON IN ADDISON CIRCLE, AND YOUR RATES ARE SLOWLY CREEPING UP ACROSS THE BOARD, EVEN PRE PANDEMIC SO THAT YOUR, YOUR VACANCY IS SOMETHING YOU NEED TO BE THINKING ABOUT AND HOW TO MAKE THAT PIVOT.
UM, YOUR OFFICE PARK, 18.7%, YOU KNOW, ALSO ABOUT THE SAME.
YOUR RETAIL'S ACTUALLY REALLY GOOD.
UM, THE, UH, THE 10.7 VACANCY RATE IN ADDISON CIRCLE, AGAIN, SOMETHING TO THINK
[01:45:01]
ABOUT.I CAN EXPLAIN THAT MORE LATER.
UM, YOUR MULTIFAMILY IS, IS EXTREMELY HEALTHY, AND I DON'T THINK THERE'S ANY SURPRISE THERE.
UM, AS IT RELATES TO THE OTHER, THIS SLIDE AND THE ONE THAT WAS PRIOR TO THIS, THE POINT BEING THAT YOU'RE, YOU'RE, YOU'RE AGING AS A COMMUNITY AND THAT'S NO SURPRISE AS IT RELATES TO YOUR OFFICE SPACE AND YOUR RETAIL SPACE.
SOME OF THIS WAS BUILT, UM, A WHILE AGO.
YES, IT MAY STILL BE A QUALITY PRODUCT, BUT IT DOESN'T HAVE THE SAME AMENITIES THAT SOME OF THE OTHER FOLKS DO.
AS IT RELATES TO YOUR HOTELS, UM, YOUR REVPAR, YOUR REVENUE, UM, PER AVAILABLE ROOM, $65 A NIGHT IS VERY LOW.
SO THIS IS SOMETHING YOU REALLY NEED TO BE THINKING ABOUT IN TERMS OF WHEN PEOPLE SAY THAT YOUR ENVIRONMENT IS TIRED.
UM, YOU CAN LOOK AT THE AMOUNT OF THAT THAT IS RELATED, RATED AS A COSTAR RATING OF THREE OR LESS.
IT'S PRETTY HIGH OCCUPANCY RATE, PRETTY LOW.
THAT RESULTS IN YOUR REVPAR $65 A NIGHT.
SO, UM, THAT'S DEFINITELY AN AREA OF WEAKNESS AND AREA OF FOCUS.
2.86 MILLION SQUARE FEET, UM, PERCENT OF LOCAL INDUSTRY ADJACENT TO THE AIRPORT, 49%.
THERE'S A REASON IT'S LOCATED THERE.
UM, THE, UH, THE PIECE, AGAIN, THE STORM CLOUD ON THE HORIZON, IT'S ALWAYS GOOD TO TRY TO GET THESE CHURNED AND KEEP THEM, UM, UPDATED.
UH, 62% BEING CONSTRUCTED PRIOR TO 1970S IS SOMETHING TO, UH, TO BE A BIT CONCERNED ABOUT AS FAR AS AUDIENCES GO.
AND WE'LL BE ABLE TO MOVE THROUGH THIS FAIRLY QUICKLY.
UM, THE TRAITS HERE THAT YOU SEE ARE GOING TO MIRROR WHAT KEVIN TALKED ABOUT.
THE THING I WANNA POINT OUT HERE, YES, MEDIAN AGE IS STARTING TO CREEP UP.
LOOK AT THE HOUSEHOLDS WITH ONE PERSON.
ALMOST HALF OF YOUR END OF YOUR, UM, HOUSEHOLDS ARE A SINGLE PERSON LIVING ALONE.
UM, THE OTHER PIECE I WANNA POINT OUT, AND THIS IS IMPORTANT IS YOUR PERCENT WITH A BACHELOR'S DEGREE OR HIGHER, 57.5% IS THE SECOND LOWEST ACTUALLY AMONG THESE DIFFERENT AREAS.
AND SO THAT PLAYS OUT WITH THE NEXT SLIDE.
WHEN WE LOOK AT THE INCOMES THAT ARE ASSOCIATED WITH THE AREA, UM, KEVIN SHOWED YOU EARLIER THE MEDIAN HOUSEHOLD INCOME, BUT LOOK AT SOME OF THESE OTHER NUMBERS.
AND AGAIN, THIS IS NOT ADDISON, THIS IS WITHIN FIVE MINUTE DRIVE TIME OF ADDISON CIRCLE.
BUT LOOK AT YOUR WEALTH INDEX.
IT'S A 64 COMPARED TO SOME OF THESE OTHER AREAS.
COMPARATIVELY SPEAKING, YOU CAN SEE WHERE THAT FALLS.
THAT DOESN'T, THAT'S NOT A WARNING SIGN, THAT'S A BUYING POWER SIGN.
SO WE NEED TO KEEP THAT IN MIND WHEN WE'RE TALKING ABOUT THE TYPES OF THINGS, UH, THAT WE WANT TO ATTRACT OR DO WE NEED TO MOVE THAT AUDIENCE A CERTAIN DIRECTION.
SO ALSO SAME THING, AND I REALLY WANT TO HIT HARD ON THIS.
YOUR EMPLOYEES ARE YOUR BEST BET.
LOOK AT THE EMPLOYEES WITHIN FIVE MINUTES.
YOUR DAYTIME POPULATION IS 123,000 PEOPLE.
EVEN LEGACY TOWN CENTER CAN'T COMPETE WITH THAT.
IT'S CLOSE, BUT IT, UH, AND THAT'S YOUR EMPLOYMENT BASE THAT DRIVES INTO THIS AREA.
THAT ALSO SPEAKS TO WHY MOST OF YOUR INVESTORS ARE SAYING YOUR DAYTIME SALES ARE STRONGER THAN YOUR EVENING SALES, WHICH IS TYPICALLY FLIPPED FROM WHAT MOST COMMUNITIES WILL HAVE.
SORRY, WAS THERE A QUESTION? YEAH, DAVE COLLINS.
SO IS THIS, YEAH, DAVE, WHAT TIMING IS THIS? IS THIS PRE COVID POST COVID? WHAT IS IT? OH, THIS WAS, UH, THIS IS VERY RECENT.
THIS IS THIS, THESE NUMBERS ARE WITHIN THE LAST MONTH.
AND ARE THEY COMING FROM COSTAR OR WHERE, WHERE ARE YOU GETTING THEM? THESE NUMBERS ARE COMING FROM ESRI.
SO ESRI PROVIDES US WITH OUR, WE USE ESRI AS OUR TOOL FOR, UM, POPULATION BASE, EMPLOYMENT BASE, THOSE TYPES OF THINGS.
UM, AND THEN WE USE COSTAR FOR MORE OF THAT CATALYTIC CORE ANALYSIS.
SEEMS VERY HIGH, BUT IT DOES SEEM HIGH.
AND WE ACTUALLY TRIPLE CHECKED THIS TO SEE WHY IN THE WORLD IT WOULD BE THAT WAY.
UM, 'CAUSE WE WERE ACTUALLY, WE WERE VERY CRITICAL OF THIS NUMBER.
IT SEEMED RIDICULOUSLY HIGH, UM, BUT IT CHECKS OUT IN EVERY SINGLE ASPECT.
SO, AND TO GIVE YOU SOME MORE CONTEXT ON THAT, ADDISON'S EMPLOYMENT BASE IS JUST UNDER 80,000.
SO YOU DO BRING IN A LOT OF FOLKS FOR THE, THE, THE RESTAURANT ENVIRONMENT AND CERTAINLY DOING COMMERCE AT THE VARIOUS EMPLOYMENT AREAS AS WELL DURING THE DAY.
AND THE OTHER PIECE TO REMEMBER ON THIS TOO IS YOU ARE MORE DIVERSE THAN SEVERAL OF THESE OTHER AREAS.
YOU HAVE YOUR INDUSTRIAL BASE, YOU HAVE THE AIRPORT, PLUS YOU DO HAVE THE EMPLOYEES.
THESE ARE NOT JUST THE EMPLOYEES IN THE OFFICE STRUCTURES, IT'S THE EMPLOYEE IN LONG RESTAURANT ROW, ET CETERA.
SO IT'S THE RANGE THAT REALLY COMES IN AND PACKS A PUNCH.
UM, NOT GONNA DWELL ON THIS PIECE.
PROFESSIONAL SCIENCE AND TECH SERVICES, UM, IS YOUR HIGHEST PERCENTAGE OF, UH, BUSINESSES IN THE AREA.
UM, WE'LL GO THROUGH THESE QUICK, AGAIN, NEAR DESTINATIONS.
I EXPLAINED EARLIER WHY WE CALL THESE NEAR DESTINATIONS.
[01:50:01]
THEY DON'T HAVE WHY ALL THE INGREDIENTS NECESSARILY TO, UH, BE CALLED A DESTINATION AND REALLY BE THAT STRONG MAGNET, BUT BOTH CASES ARE PRETTY CLOSE.SO WE POINT THAT AS A NEAR DESTINATIONS.
THE OTHER AREAS THAT WE TOOK A LOOK AT, UM, WERE YOUR OFFICE CORRIDOR.
AGAIN, WE'VE TALKED ABOUT THAT ALREADY.
IT'S A GREAT BACKBONE, BUT IT IS SHOWING SOME OF ITS AGE.
UM, YOUR RESTAURANT ROW IS DEFINITELY SHOWING AGE.
YOUR BIG ISSUE HERE IS GOING TO BE THE DIFFERENCE BETWEEN CLUSTER VERSUS CONVENIENCE.
AND WE'RE SEEING A STARK MOVE AWAY FROM CONVENIENCE BASED SHOPPING AS IT MOVES MORE ONLINE, OR IT MOVES MORE TOWARDS ONLINE DELIVERY TO HOME.
UM, WE WON'T DWELL ON THE AIRPORT TOO MUCH EXCEPT FOR THE FACT THAT, AS KEVIN SAID EARLIER, THIS IS A FANTASTIC, UM, FEATURE OF THE COMMUNITY.
YOU ARE COMPETING DIRECTLY AGAINST LOVE FIELD AND DIRECTLY AGAINST DALLAS EXECUTIVE AIRPORT, UM, FOR BUSINESS.
UH, YOU'VE GOT NUMEROUS DIFFERENT, A WIDE VARIETY OF BUSINESSES AND AIR RELATED SERVICES, INCLUDING A VARIETY OF DIFFERENT TRAINING, WHICH IS FANTASTIC.
THE BIG POINT THAT KEPT COMING UP FROM FOLKS WAS THE LACK OF A STRONG MAINTENANCE, REPAIR, AND OVERHAUL FACILITY.
THERE'S A NUMBER OF REPAIR OR BUSINESSES HERE, BUT IT'S LOWER LEVEL DAILY SERVICE TYPES OF REPAIR.
IF THERE'S A MAJOR BREAKDOWN, SOMEBODY'S COMING IN FROM LOVE FIELD TO HELP MAKE THAT REPAIR.
YOU DON'T HAVE THE CAPABILITIES HERE, BUT IT'S SOMETHING THAT'S POSSIBLE AND COULD REALLY HELP STEP UP THE COMPETITIVE NATURE OF THE AIRPORT.
SO, UM, THIS PIECE WE REALLY HONE IN ON TO SHOW YOU THE POWER OF CLUSTERING.
IF YOU LOOK AT THE POWER OF CLUSTERING THE RENTS $37, UM, IN ADDISON CIRCLE, $34 IN VILLAGE ON THE PARKWAY.
COMPARE THAT TO THE REST OF THOSE CORRIDORS.
COMPARE THAT TO THE TOWN OF THE WHOLE, AND THAT GIVES YOU AN IDEA THAT'S ONLY GOING TO IMPROVE AS PEOPLE BECOME MORE AND MORE FOCUSED ON EXPERIENCE, UH, VERSUS CONVENIENCE.
UM, THIS JUST GIVES YOU AN IDEA OF THE RETAIL FOOD AND BEVERAGE EXPENDITURES AND WHAT'S GOING ON.
IF YOU LOOK AT THE AREA WITHIN FIVE MINUTES OF ADDISON CIRCLE, UM, YOU $508 MILLION WHEN YOU TAKE IN RETAIL AS WELL AS FOOD AND DRINK.
UM, AND YOU CAN COMPARE THAT IT COMPARES VERY FAVORABLY, UM, TO YOUR PEERS.
LEGACY TOWN CENTER, HIGHER, BUCKHEAD VILLAGE, MUCH HIGHER.
BUT AGAIN, THE, UH, METRICS ARE, ARE RADICALLY DIFFERENT THERE.
WE, WE DEFINE A LITTLE BIT ABOUT WHAT YOU'RE DEFINING AS RETAIL TRADE.
'CAUSE THIS SUPPLIED REALLY SURPRISED ME, ESPECIALLY THE RESTAURANT.
YEAH, SO RETAIL TRADE, YEAH, RETAIL TRADE LOOKS AT ALL OF THE DIFFERENT RETAIL ASPECTS, BUT IT IS GONNA BE YOUR, UM, YOUR SHOPS.
IT'S GONNA BE, OF COURSE, FOOD AND DRINK INCLUDES YOUR RESTAURANTS, YOUR BARS, ET CETERA.
SO IT IS, UM, IT'S, IT'S ACTUALLY A REALLY STRONG NUMBER.
AND, AND I'LL BE HONEST, I WAS A LITTLE SURPRISED BY THE RETAIL TRADE NUMBER.
I EXPECTED IT TO BE LOWER, UM, BUT IT TURNED OUT TO BE A LITTLE HEALTHIER.
UM, THE ONE THAT ALSO SURPRISED ME WAS I EXPECTED FOOD AND DRINK TO BE A LITTLE BIT HIGHER THAN IT IS.
UM, AND, AND THAT TURNED OUT NOT TO BE THE CASE, BUT AS A WHOLE, IT, IT TENDS TO, UH, IT TENDS TO WORK ITSELF OUT FOR BALANCE.
TAYLOR, DID YOU HAVE SOMETHING? OKAY.
UM, PRIMARILY, UM, HERE, AND THERE'S MANY MORE AS PART OF THIS.
AGAIN, THIS IS JUST PRELIMINARY INFORMATION, BUT, UM, YOU DO, YOU'RE STILL A VERY DESIRABLE LOCATION.
UM, AND, AND AS WE TOLD KEN, IT'S, YOU ARE NOT NECESSARILY, YOU, YOU'RE STILL ONE OF THE COOL KIDS.
YOU JUST MAY NOT NECESSARILY BE THE COOLEST KID RIGHT NOW, AND THERE'S WAYS TO ADAPT AND HELP FIX THAT FLIGHT TO QUALITY.
SOMETHING WE NEED TO DEFINITELY BE PAYING ATTENTION TO AS IT RELATES TO YOUR OFFICE EXPERIENCE.
ADDISON AIRPORT, AGAIN, VERY STRONG FOR YOUR MARKET.
UM, YOU, UH, A AGAIN, WE TALKED ABOUT NEAR DESTINATIONS, YOU LACK THAT SINGLE LOCATION THAT REALLY IS THAT FULL ON DRIVER, BUT BOY, DO PEOPLE COME INTO VILLAGE ON THE PARKWAY REGULARLY, AND ADDISON CIRCLE IS JUST A COUPLE STEPS AWAY.
UM, AND HOPEFULLY THE TAD WILL BE ABLE TO HELP THAT YOUR HOTELS ARE A WEAKNESS.
UM, AND THEN THE LOCAL, UH, THE LOCAL INDUSTRY IS A PLACE THAT YOU DON'T HEAR MANY PEOPLE TALK ABOUT, BUT, UM, AND IT'S FAIRLY QUIET, BUT IT'S A, IT'S A PRETTY SUBSTANTIAL STRENGTH, UM, FOR ADDISON, BOTH FROM DIVERSITY AND, AND ITS ABILITY TO, UH, ATTRACT EMPLOYERS.
SO THOSE ARE THE KEY TAKEAWAYS.
SORRY I HAD TO RUSH THROUGH MOST OF THAT, BUT, UH, KEVIN, YEAH, THANK, THANK YOU TONY.
AND JUST FOR EVERYBODY, UM, I, I REFERENCED EARLIER ON IN THE, THE TIMELINE.
SO END OF NEXT MONTH, YOU'RE GONNA GET A MORE EXPANDED REPORT OF ALL THE EXISTING, THE DEMOGRAPHICS, THE FISCAL ANALYSIS, ALL OF THE ENGAGEMENT SURVEY, ALL, ALL OF THAT SUMMARIZED TODAY, PLUS THE FULL REPORT THAT, THAT TONY'S WORKING ON.
SO WE, WE WANT TO BE RESPECTFUL OF TIME,
[01:55:01]
KIND OF GIVE YOU GUYS THE HIGH POINTS, AND THEN THOSE OF YOU THAT WANT TO DIG INTO ALL OF THE DETAILS OR, OR DIVE DEEPER INTO WHETHER IT'S THE, THE ECONOMIC DEVELOPMENT OR HOUSING OR WHATEVER THE TOPIC MAY BE, THAT'S THE NEXT FEW MONTHS WHEN WE START TO DIVE INTO THOSE SPECIFIC TOPICS, IS REALLY WHERE WE'RE GONNA UNPACK THIS A A LITTLE BIT MORE.UM, I'M GONNA WRAP US UP JUST REAL QUICKLY WITH WHAT WE'VE HEARD, UH, FROM SOME OF THE, THE ENGAGEMENT TODAY.
YOU GUYS CAN SEE THE, UM, THE PROCESS HERE THAT WE'VE BEEN THROUGH LOTS.
WE, WE'VE BEEN ASKING A LOT OF QUESTIONS A LOT OF DIFFERENT WAYS.
SO ONLINE SURVEYS, THE WEBSITES, THE POPUPS THAT WE'VE DONE OVER THE, THE FIRST COUPLE OF TRIPS, UM, WE'VE DONE THE, THE MORE OF THE, THE DATA ANALYSIS, LIKE WHAT TONY WENT THROUGH AND, AND SOME OF THE, THE DEMOGRAPHIC STUFF I PRESENTED WITH JUST A LOT OF CONVERSATIONS WITH DIFFERENT FOLKS OF DIFFERENT TYPES AND BACKGROUNDS AND, AND LOCATIONS, UM, IN THE COMMUNITY.
UM, ALL OF THIS STUFF, YOU CAN SEE SOME OF THE, THE PICTURES THERE THAT JUST THE DIFFERENT WAYS THAT WE'VE ENGAGED FOLKS.
A LOT OF THOSE JUST ONE-ON-ONE CONVERSATIONS, WHETHER IT WAS COFFEE SHOP, A LUNCH HOUR AT A RESTAURANT, SOME OF THE BIGGER COMMUNITY MEETINGS, UM, YOU KNOW, THOSE ONE-ON-ONES ARE WHERE WE GET THE LITTLE, THE MORE GRANULAR DETAILS THAT WE CAN KIND OF PAIR UP THE INDIVIDUAL STORIES WITH SOME OF THE, THE MORE AGGREGATE INFORMATION THAT WE GET.
UM, A COUPLE OF THEMES THAT ARE EMERGING, AND I'LL CONNECT THIS TO, TO TONY'S STUFF.
UM, THESE FOUR THEMES ARE REALLY STARTING TO EMERGE.
THE FIRST ONE IS THIS FEELING OF SAFETY AND COMFORT.
AND IT'S A COMBINATION OF ALL OF THE CONVERSATION ABOUT THE PUBLIC SAFETY AND THE RESPONSIVENESS OF YOUR POLICE AND FIRE, BUT ALSO THE SAFETY OF THE ENVIRONMENT, THE WAY THAT THE ENVIRONMENT HAS BEEN DESIGNED, THE WAY THAT PEOPLE KNOW EACH OTHER AND INTERACT WITH EACH, WITH EACH OTHER BECAUSE OF THE ENVIRONMENT.
SO THAT, THAT FEELING OF COM OF OF SAFETY AND COMFORT IS A BIG ONE.
CONNECTIVITY AND WALKABILITY IS PROBABLY THE BIGGEST THING THAT, THAT WE HEARD.
IF YOU REMEMBER THE FLOWER EXERCISE AND THE SHARED VALUES, RENT OWN OLD YOUNG RESIDENT BUSINESS COMMERCIAL, EVERYBODY IS TALKING ABOUT WALKABILITY TO VARIOUS DEGREES.
UM, I THINK THIS IS THE ONE IM FEELING LIKE WE'RE GONNA PUSH ON THE MOST AND SEE HOW FAR DOES ADDISON REALLY WANT TO GO HERE? UM, AND I'LL CONNECT THIS TO VILLAGE ON THE PARKWAY AND WHAT TONY WAS JUST TALKING ABOUT.
UM, HOW MANY OF YOU GUYS HAVE BEEN TO THE LA LA COFFEE PLACE? OKAY.
YOU KNOW, THE LITTLE OUTDOOR AREA THEY HAVE RIGHT IN FRONT OF THE COFFEE SHOP, RIGHT? THAT USED TO BE TWO PARKING SPOTS.
THOSE PARKING SPOTS WERE REMOVED TO CREATE THAT OUTDOOR SPACE.
THAT'S AN EXAMPLE OF A VERY SMALL INCREMENTAL THING THAT CREATES THAT OUTDOOR OUTSIDE OF THE BUILDING EXPERIENCE.
BUT HOW MUCH OF THAT CAN WE DO BEFORE PEOPLE GET UPSET THAT THE PARKING STARTS TO GO AWAY? UM, BUT WHEN YOU TALK TO THE COMMERCIAL FOLKS AND YOU TALK ABOUT, AND YOU THINK ABOUT THE INNOVATIVE HISTORY OF, OF ADDISON, THIS IS WHERE I'M A LITTLE PRELIMINARY IN SAYING THIS, BUT THIS IS WHAT I'M JUST TELLING KIND OF WHERE WE ARE AND WHAT WE'RE FEELING RIGHT NOW.
ADDISON HAS BEEN A VERY INNOVATIVE, BOLD PLACE, AND I THINK THE, I DON'T REMEMBER THE EXACT QUOTE, TONY, MAYBE YOU CAN FILL ME IN HERE ON WHAT IT WAS, BUT ONE OF THE COMMERCIAL FOLKS WAS SAYING, ADDISON HAS AN OPPORTUNITY TO BE BOLD AGAIN AND SEE HOW FAR TOWARDS THAT WALKABLE PLACE-BASED EXPERIENTIAL ENVIRONMENT DO YOU WANT TO BE, BECAUSE YOU HAVE BEEN A MORE WALKABLE PLACE KIND OF AN OASIS IN A SEA OF AUTOCENTRIC DEVELOPMENT.
UM, BUT YOU'VE BEEN PASSED A LITTLE BIT BY THE LEGACIES OF THE WORLD THAT PEOPLE DRIVE, THEY PARK IN THE PARKING GARAGE AND THEN THEY GET THEIR FOUR TO SIX HOUR EXPERIENCE.
WHAT ADDISON HAS AT THOSE PLACE DO THOSE PLACES DON'T IS THAT AUTHENTIC CONNECTION OF YOU CAN TRULY LIVE, WORK, PLAY AND HAVE EVERYTHING WITHIN WALKING AND BIKING DISTANCE IN ADDISON.
SO YOU DON'T HAVE TO GO CRAZY HIGH DENSITY, JUST DOUBLE DOWN ON WHAT MADE YOU GOOD, BUT HOW, HOW FAR ARE YOU WILLING TO GO ON THAT WALKABILITY COMPONENT? UM, BUT KNOW THAT WHEN, WHEN WE TALKED WITH FOLKS THAT REALLY STARTED TO MERGE AS SOMETHING THAT A LOT OF PEOPLE APPRECIATE, EVEN FAMILIES, EVEN PEOPLE WITH KIDS THAT LIVE IN ADDISON, THEY'VE CHOSEN TO LIVE HERE BECAUSE THEY WANT THAT WALKABLE, CONNECTED, COMFORTABLE, SAFE PLACE VERSUS, YOU KNOW, THE, UM, YOU KNOW, SOMEWHERE ELSE WHERE THEY MIGHT HAVE THE SAFETY OF THEIR, THEIR HOME IN THE SCHOOLS, BUT THEY, THEY WANT THE, THEY WANT ADDISON OVER THE GREAT SCHOOL DISTRICT MAYBE.
SO JUST SOMETHING TO START TO START TO THINK ABOUT.
AND THERE'S PLACES YOU GO BIG AND BOLD WITH A VACANT SITE AND YOU JUST DO A, A NEW DEVELOPMENT THAT HAS ALL THIS BAKED IN, BUT THERE'S A LOT OF INCREMENTAL THINGS THAT CAN BE DONE TO START TO TRANSFORM, UH, PLACES A LITTLE SLOWER WITH, WITH SMALLER INVESTMENTS.
UM, ECONOMIC PROSPERITY AND THE IMPORTANCE OF COMMERCIAL, UM, COMMERCIAL IS KEY TO ADDISON.
[02:00:01]
TAX, SALES TAX, ALL OF THE ABOVE.IT, IT IS KEY WHEN YOU, WHEN YOU DIG INTO A LITTLE MORE OF WHAT WE'VE HEARD, SOME OF THAT, UM, THE BOUTIQUE SHOPPING, THE EXPER THE, THE ENTERTAINMENT STUFF, IT'S BEEN KIND OF PAIRED WITH, IT WOULD BE NICE IF IT WAS LIKE A LOCAL KIND OF LOCAL SPECIAL STUFF.
NOT, WE DON'T WANT THE CHILIES OR WE DON'T, YOU KNOW, WE DON'T WANT THE FILL IN THE BLANK KIND OF COOKIE CUTTER THAT EVERYBODY HAS.
WE WANT UNIQUE, WE WANT BOUTIQUE, WE WANT LOCAL.
UM, AND THERE'S A LOT OF OPPORTUNITY HERE FOR ENTREPRENEURS AND FOLKS TO DO SOME OF THOSE SMALLER KIND OF EXPERIMENT EXPERIENTIAL TYPE PLACES.
UM, AND THEN THAT LAST ONE, THE COMMITMENT TO INNOVATION.
UM, ADDISON HAS ALWAYS BEEN COMMITTED TO FORWARD THINKING, BEING AHEAD OF FOLKS.
UM, AND THAT'S WHEN THE VERY FIRST CONVERSATION WHEN WE HAD WITH STAFF AND, AND, UM, WHEN WE WERE STARTING TO THINK ABOUT THE BRANDING OF THIS AND HOW THE ADVANCED ADDISON CAME TO BE, IT WAS LEVELING UP.
IT'S LIKE WE, WE HAVE BEEN THE LEADER.
WE HAVE ALWAYS BEEN THE LEADER IN THIS KIND OF DEVELOPMENT.
WE KNOW WE'RE KIND OF NECK AND NECK WITH SOME FOLKS AND HOW DO WE LEVEL UP AND BE A BETTER VERSION OF, OF WHO WE, UH, WHO WE HAVE BEEN.
SO, UM, TONY, IS THAT A FAIR SUMMARY OF KIND OF WHAT YOU HEARD, UM, AS WELL? YEAH, KEVIN, I I THINK YOU COMPLETELY NAILED IT.
YOU MAY HAVE ALREADY GONE OVER THIS, I APOLOGIZE.
ARE WE GONNA SEE THE SURVEY RESULTS? UM, AND THEN THE COMMERCIAL VERSUS RESIDENCE, WHICH I THINK IS SO IMPORTANT.
YEAH, JADE HAD SENT THAT TO US.
I DON'T, WE'RE WORKING THROUGH OUR TEAM WITH BRI, WITH BRIE AND RYAN FROM CIVIC BRAND WHO YOU, YOU GUYS MET ON THE LAST TRIP.
WE HAVE ALL, UM, AS BEST AS WE CAN WITH THOSE RESPONSES OF, YOU KNOW, WHETHER THEY WERE A RESIDENT OR A BUSINESS OR, OR WHATEVER.
WE, WE CAN, UM, DIG INTO THAT, UH, THAT DATA DIFFERENT WAYS.
AND I KNOW DAVID ASKED FOR, UM, RESIDENTIAL VERSUS THE, THE SPLIT OF RESPONSES OF RESIDENTIAL, UM, AND COMMERCIAL.
UM, WE'RE GONNA HAVE THAT WHOLE, THE WHOLE DETAILED, UM, SUMMARY OF, OF SURVEY TOO.
WE HAVE THE RAW RESULTS, UM, ALREADY, BUT THE, UM, ALL OF THE TAKEAWAYS AND THAT'S NOT GONNA COME UNTIL THAT, UM, WELL THE NEXT CPA MEETING AND THEN THE FORMAL REPORT AT THE END OF MARCH.
BUT WE CAN GET, I DON'T, I, JADE, I DON'T, I CAN'T REMEMBER IF WE'VE SENT YOU THE RAW SUMMARY OF SURVEY TWO RESULTS OR NOT.
UM, SO YEAH, WE CAN ABSOLUTELY GET THAT STUFF, UM, TO YOU.
UM, HOLD ON, HOLD ON, HOLD ON EVERYBODY.
WE STILL, AND WE STILL HAVE AN AGENDA ITEM.
UM, AROUND 17 YEARS AGO WE HAD A CULINARY COMMITTEE, UM, WITH ADDISON THAT ALSO EXPLORED THE REDEVELOPMENT OF INWOOD, UM, WITH THE OLD BUSINESSES, UM, SITUATED THERE.
BUT WE DID A REALLY DETAILED REPORT BECAUSE OUR AIM WAS TO FIGURE OUT HOW TO ATTRACT MOM AND POP BUSINESSES, INCUBATORS.
UM, IT'S A REALLY DETAILED REPORT AND I'M HOPING YOU ALL, UH, HAVE ACCESS TO THAT, TAKE A LOOK AT IT AND SEE WHAT WE WERE LOOKING FOR AT THAT TIME.
THAT'S A, THAT'S A GREAT QUESTION.
AND, AND I THINK THE INWOOD CORRIDOR IN PARTICULAR IS A PLACE THAT THERE, BECAUSE OF THE AIRPORT AND SOME OF THE CONSTRAINTS ON MORE VER USES VERTICAL DEVELOPMENT.
THAT'S A GREAT AREA TO, TO RETHINK ABOUT MORE OF THE, THE ENTREPRENEURIAL MAKER SPACE KIND OF ARTS DISTRICT KIND OF STUFF.
ANY OTHER? SO SEED, I'M SORRY, YOU JUST TOOK ME BACK TO WHEN, WHEN OUR CONTRACT WAS GOING TO COUNCIL FOR APPROVAL THAT NIGHT WAS THE, I SPENT, I THINK THEY SPENT A GOOD 45 MINUTES TALKING ABOUT PICKLE PICKLEBALL.
THAT
ANY OTHER QUESTIONS OR COMMENTS FROM, FROM ANYBODY? OKAY.
KEN, DO YOU HAVE ANYTHING ELSE BEFORE I GO TO THE LAST AGENDA ITEM? UH, NO, WE DO NOT.
[5. Consider, discuss, and act on the appointment of a Comprehensive Plan Advisory Committee (CPAC) Vice Chair.]
AGENDA ITEM IS TO APPOINT A VICE CHAIR.UM, I HAVE A RECOMMENDATION OF CATHOLIC ERICKSON.
UM, I WILL ALSO TAKE, UH, NOMINATIONS FROM THE FLOOR IF ANYBODY ELSE WANTS TO NOMINATE ANYBODY INCLUDING THEMSELVES.
I'LL MAKE A MOTION THAT CATHOLIC ERICKSON BE, UH, APPOINTED AS THE VICE CHAIR.
IS THERE A SECOND? DENISE HAS A SECOND.
TAYLOR HAS A THIRD, UH, SINCE THERE'S NO ONE ELSE.
ALL IN FAVOR? WHAT'S THAT? SITTING RIGHT THERE.
UH, ALL IN FAVOR OF, UH, CATHERINE AS VICE CHAIR SAY AYE.
ANY OPPOSED? ALRIGHT, VERY GOOD.
IS THERE ANYTHING ELSE ANYONE HAS, UH, DO
[02:05:01]
WE NEED TO, UM, DO WE NEED TO OPEN ANY KIND OF A CITIZEN'S COMMENTS? DO WE, WE HAVE A, AN ITEM FOR CITIZENS' COMMENTS? YOU CAN POST THAT.WE NEED TO POSE THAT AS AN OPTION.
IS THERE ANYONE HERE? NONE CPAC THAT, UH, WOULD LIKE TO COMMENT AT THIS TIME? ALRIGHT, HEARING NONE, WE ARE ADJOURNED.