True or False: Caven Can Sell Oak Lawn Lots For By-Right, 120-Foot Buildings

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Caven Enterprises is seeking to sell their Cedar Springs lands, which contain a string of well-known LGBTQ+ bars, to developer Mike Ablon who intends to build a pair of high-rises while leaving the bars in place (read the first story here, and the follow-up here).

Caven has heavily spun the narrative that without this one deal, in this precise configuration, they will be forced to sell to another developer who would build a solid 10-12 story building (similar to Illume) and scrape the bars – and all without a zoning change.

Let’s examine that.

On February 12, 1997, city council approved PD-193, sub-district (19) seemingly instigated by Caven and covering their properties. The underlying zoning is GR (General Retail) which allows heights up to 120 feet – a far cry from the 260 sought by Ablon. But the sub-district Caven entered into (and now wants to rescind) significantly limits even the 120-feet.

The Ordinance And Development Plan

In the sub-district ordinance, it states that, “Development of Phase One [block bounded by Cedar Springs, Reagan, Throckmorton and Dickason] must be in compliance with the development/landscape plan for Phase One (Exhibit S-19B).”

What does Exhibit S-19B say?

An excerpt of Exhibit S-19B (above) lists lot coverage at 35 percent and maximum height at 36 feet. To my reading, the portion of Caven’s holdings containing Sue Ellen’s, JR’s, S4, and TMC, appear limited well below the 120 feet and 80 percent lot coverage of their underlying GR zoning – meaning that no by-right Illume-style apartment building can be built on subareas A-1 and A-2 (map below) without the same zoning change process Ablon and Caven must follow today.

But let’s ignore that for a moment. What does the rest of the sub-district 19 ordinance say? Essentially, 120-feet heights are possible, but unlikely.

Residential Proximity Slope

Just as today’s plan, the sub-district divides the parcels into four (shown above) – A-1, A-2 (the front and back parking lot of the JR’s and S4 block), and B-1, and B-2 (Skivvies building and rear parking lot).

Unusual within PD-193, given its age, sub-district 19 has a Residential Proximity Slope (RPS) controlling where it’s possible to build 120-foot height on the lots.

It says:

For the back B-2 “Skivvies” lot, it’s easy. For 150-feet from the Dickason lot line, no building is allowed above 36 feet in height (lightest blue on map). The remaining 275-foot deep, B-1 subarea fronting Cedar Springs Road could build to 120-foot heights (darker blue). This means that there could be no high-rise (or 75-foot parking garage) on the back of the “B” parcels, but the narrower Cedar Springs-facing portion could go to 120 feet.

On the A side, the back A-2 subarea stops 100-feet from the Dickason lot line. The RPS says that for every foot off the far edge of the Dickason right-of-way, a building can be a foot tall (1 foot away = 1 foot tall; 2 feet away = 2 feet tall, etc.). It begins at 26 feet because I suspect the lot line is 26 feet away from the Dickason starting point. This means that the back 100 feet of A-2 produces a wedge-shaped building envelope from 26 feet along Dickason to a max of 120 feet about 94 feet away from Dickason.

So while 120 feet is allowed by right on over half of the total acreage (bars or no bars) it is significantly less valuable to a developer than either a 12-story building or a pair of 260-foot high-rises.

RPS means no 75-foot garage looming over Dickason

One assumes the RPS placed on these lots by Caven was to prevent (Caven) from doing what they are seeking to do today.

But wait, there’s more …

Setbacks

Setbacks further limit the appeal of a by-right plan.

On Cedar Springs there is an eight-foot setback at ground level between Throckmorton and Reagan. Additionally, on Cedar Springs and Throckmorton, a 25-foot setback is required above 36 feet in height. In a by-right “Illume” scenario, that removes 25 feet on two borders of a building on what would likely be the residential floors, which might hamper design (especially for the already thin B-1 parcel and when adding the other infringements).

There are additional 10-foot setbacks required on Reagan and Dickason from the ground up. Ditto a 10-foot setback above 36 feet on the border with Woody’s Bar with a 10-foot setback from the ground up on the back section (subareas B-1 and B-2). The Cedar Springs-facing portion of the B-1 subarea is only 109 feet wide by 175 feet deep at its narrowest. Anything above 36 feet in height and the buildable width drops by 37.5 feet to 71.5 feet – this makes for a fairly thin, inefficient apartment layout (double-stack with a central corridor).

For comparison, the Ablon team needs to lift the 25-foot setbacks above 36 feet to 75 feet to accommodate their parking garage.

Floor Area, Height, And Lot Coverage

For floor area, the sub-district ordinance states:

“If no residential component, maximum permitted floor area for all uses combined is 200,000 square feet. An additional one square foot of floor area for each two square feet of residential floor area is permitted up to a maximum permitted floor area of 250,000 square feet for all uses combined on the Property.” [Emphasis mine]

The lots total 3.5385 acres, or about 154,137 square feet. At the 80 percent lot coverage allowed by GR zoning, this equates to a two-story building based on the 250,000-square-foot total buildable floor area allowed for multi-family.

Yes, you can center the height on a portion of the lot to get a taller building. But the tallest result for a not-quite-by-right 12-story, 120-foot building would produce a building with 21,000 square feet per floor or 14 percent lot coverage – quite a bit less than the 80 percent coverage allowed.

For comparison, the Ablon team wants to change floor area from a raw number to an FAR of 5:1. This nets buildings with a combined square footage of 770,685 square feet – more than triple the 250,000 square feet their ordinance allows.

Net-Net, No-No

Based on the above, I do not see truth in Caven’s statements that they could just sell to a developer who’d build an Illume-type project by-right (a sale that would also net them significantly less money from the land sale).

I interpret the subdistrict 19 ordinance and development plan to say they’re bound to restrict height to 36 feet and 35 percent lot coverage — period.

Even if that somehow doesn’t hold, there are severe limitations surrounding setbacks, residential proximity slope, and especially floor area that similarly make such a project impossible by-right.

Couple that with construction types, and while some portion of the parcels could theoretically reach 120 feet, the reality is that they’re more likely to be five stories of wood construction on top of three concrete parking levels – making such a project with these limitations even less viable – and nowhere near the money Caven wants.

It seems to me that whatever Caven wants to do, they need a substantial zoning variance to do it.

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Jon Anderson is CandysDirt.com's condo/HOA and developer columnist, but also covers second home trends on SecondShelters.com. An award-winning columnist, Jon has earned silver and bronze awards for his columns from the National Association of Real Estate Editors in both 2016, 2017 and 2018. When he isn't in Hawaii, Jon enjoys life in the sky in Dallas.

12 Comments

  1. Dana S on December 7, 2020 at 5:05 am

    Thank you, Jon. You DO the homework and present it to us: the good, bad and the hmmmmmm?
    Should be interesting to see how this plays out. Thanks again for the research and report. DS

  2. Joanna England on December 7, 2020 at 11:09 am

    Super interesting to see the math on this one. I wonder what Caven Enterprises thinks about it …

  3. Dr. Timothy B. Jones on December 8, 2020 at 8:53 am

    Great work as always Jon. Thank you!

  4. Levi Hanes on December 8, 2020 at 9:55 am

    Thank you Jon for the detailed information. I have no confidence that Caven Enterprises is trying to protect the bars. It is an employee owned company and they want to get the best payout possible.

  5. Mark Johnson on December 8, 2020 at 1:03 pm

    That’s why they’re trying to rezone it….paperwork has already been filed.

    • Jon Anderson on December 8, 2020 at 1:19 pm

      Yes, paperwork was filed with Zoning yesterday. Keep in mind, this is District 2 (Medrano) not D14 (Blewett).

  6. Johnathan Stuart on December 8, 2020 at 1:05 pm

    Wow. This article is really trying hard to twist the facts of this deal. VERY one sided view of someone that obviously doesn’t want the deal to go through.

    • Jon Anderson on December 8, 2020 at 1:14 pm

      Yes, it’s very one-sided reading the ordinance Caven put in place in 1997 and listing why any deal will likely need a zoning variance. Facts aren’t 2-sided. The ordinance says what it says.
      .
      You see a twist…tell us what it is.

  7. Goose on December 8, 2020 at 6:49 pm

    But who cares what was done in 1997? Bring modernity, class, density and people living in the heart of the hood! make it as tall as possible. Bring in some nice new multiple more retail and restaurant and bars! Instead of dead during week it will be thriving all the time. You’ll actually have more gay people come to the hood bc theres not one apt complex thats even remotely acceptable for modern single folk….im so tired of old and cranky people try to slow down growth and development. this preserves bars and we get highrises and more retail and people and just overall betterness….bc those low rent places will have to become nicer. doesnt mean they go away it just means they get nicer. and its 2020. Dallas is officially going to overtake Chicago by 2030. We are BEHIND. culturally, architecturally and def not even close to the amount of highrises and megarises a city like us should have. and yes, its disgusting to see so many cars and people driving to clubs and bars….less cars, less parking, more public and ride sharing or live nearby and walk (best option…and theres plenty of run down bldgs charging nothing for rent they can live in). I fear this will go to a soulless, non gay caring developer and any aid to THAT…thats on all those who impede. We have to compromise and be happy and lets get going. i mean in the hood, this is what, 40%…so that means 60% is still from the old school so plenty of diversity from bourgeoise to ghetto…something for everyone! if u dont want gay people, people in their 20s and 30s and 40s or single or whatever to abandon and see the strip whittle away….we need projects like this desperately. i mean, do u know in big cities, u could have a sweet view in your condo in 1990, then in 2010 a highrise comes…and then another comes and blocks their view. who cares? this is growth. and those properties whose views are so ruined…well then cash out and make that $$ bc your property is going to 100% gain value. hooray.

    • Goose on December 8, 2020 at 6:52 pm

      my parking/driving comment refers to less drunk drivers on road. dallas is terrible with that and gayborhood is one of the worst. its unacceptable in this age of uber. I know, i was young once living at home in flower mound coming to gayborhood and driving drunk…ages ago and irresponsible. it still happens. so why the need for so much parking? enough!

    • Jon Anderson on December 8, 2020 at 9:50 pm

      They are legally bound by the ordinance they installed themselves in 1997. Just because it’s 23 years old doesn’t mean it expires.

  8. Andrew on December 29, 2020 at 10:36 am

    @Goose,

    A big part of it is simply calling out Caven on their negotiating tactics. Their plan can and should be better for the neighborhood in terms of improved sight-lines, light/shade, and better interface with the pedestrian experience. For example, they should be putting parking underground… which is something that happens in more of those modern big cities you mention. They pitched their request for a zoning change by essentially threatening that if their requested changes weren’t immediately rubber stamped at first pass then an even worse building would be built “by right” of current zoning. BUT Jon is pointing out here that THAT was in fact not truthful, accurate, or even allowable by the current zoning. Bringing this to light doesn’t kill a tall building or a more modern proper building for big cities of the future. Instead it actually opens up the likelihood that the developer will have to update their plans with things like putting more (ideally all) parking underground, making any garage facades more appealing, making the building the same height or taller but less squatty (i.e. narrower at the base because the parking is moved underground) and a myriad of other possibilities.

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