Dallas Council Approves Phase 2 of Mixed-Income Oakhouse Multifamily Project

Following a debate we’ve all heard before over the merits of Public Facility Corporation Projects, the Dallas City Council authorized Mintwood Real Estate to proceed with a second phase of the Oakhouse mixed-income, multifamily development at 909 East Colorado Blvd.

The council action on Wednesday authorizes the Dallas PFC to “acquire, develop, and own the project” and enter into a 75-year lease agreement with Mintwood. The “estimated revenue foregone,” which some council members argued is an arbitrary figure, is about $157.7 million over the duration of the lease — but the city gets much-needed affordable housing in exchange. 

Dallas Council Members West, Mendelsohn Agree to Disagree on Public Facility Corporation 

The second phase of Oakhouse at Colorado is a 358-unit luxury midrise development south of Trinity River off Interstate 35 East in North Oak Cliff. Half the units will be reserved for families living at or below 80% of the Area Median Income. Amenities at the 3.2-acre site will include a clubhouse, dog park, green space, a pool, and fitness center. The project is accessible to Dallas Area Rapid Transit bus stops, according to the resolution approved Wednesday. 

Council members will discuss PFC projects and the cooperation bylaws at a special-called meeting of the Housing and Homelessness Solutions Committee, set for 9 a.m. Tuesday, Oct. 29. Committee Chair Jesse Moreno said the meeting would offer a chance to make sure that the current processes are aligned with the City’s policies and housing goals. 

Council Members Spar Over PFC Merits 

It’s no secret where Far North Dallas Councilwoman Cara Mendelsohn stands on PFCs. She doesn’t like taking projects off the tax rolls and pointed out Wednesday that the Oakhouse development only offers 10 percent of its units at an affordable rate. 

“This does not seem like a good deal to me,” she said. “At a time when we’re finally realizing that our dollars are constrained and we have to have the revenue to operate the city, this is not a deal that I think is workable for our budget. A 75-year tax abatement is a very bad idea. The property probably won’t even be standing that long.” 

Mendelsohn later said that Dallas needs more affordable housing and it will probably require government investment. 

“The question is, at what cost?” she said. “In this case, the cost is too high in my opinion. A 75-year tax exemption is not appropriate.” 

The U.S. Department of Housing and Urban Development defines 60% of the AMI at $46,000 and 80% at about $61,000 for a one-person household. 

Councilman Chad West, who represents the North Oak Cliff area where the project is proposed, disputed Mendelsohn’s “facts,” saying that over half the units “are in the affordability ranges.” 

“Isn’t the Public Facility Corporation’s purpose, its main goal, to address the 80% and the 60% [AMI} categories?” West said. “We use other tools to address the deep affordability at the 30% level.” 

The land is currently vacant, so the “estimated revenue foregone” is speculation on what the project would generate if built as a five-story apartment complex. 

West questioned how the estimated revenue foregone is calculated “when there’s no way this would be built in this market without this program.”

Chief Financial Officer Jack Ireland said the intent of reporting estimated revenue foregone is to be transparent.

“However, you’re exactly right,” he said to West. “If it’s not approved, if it’s not built, then the revenue is not generated, so it’s not foregone.” 

Location, Location, Location

The Oak Farms area where Mintwood is building has been vacant for decades, West said. 

“This is a catalyst project in addition to an affordable housing project by a woman-owned developer that’s going to continue, hopefully, developing this area into the future,” he said. 

A master plan is needed for the area which is near a park, downtown, and transit, the councilman added. 

In response to a question from council members, Housing Director Cynthia Rogers-Ellickson said the PFC has about $3.6 million in revenues that will be used for City housing programs such as home repairs or homebuyer assistance. 

Council members Jaynie Schultz, Omar Narvaez, and Paul Ridley spoke in support of the Oakhouse project and PFCs in general. 

“The ultimate result of this is that we have places for people on limited incomes or lower incomes to occupy in the City of Dallas rather than being forced to move outside the city,” Ridley said. 

West said the Colorado Boulevard site is the best place for new affordable housing stock. 

“We never talk about the environmental benefits of having people live closer to where they work because it doesn’t really translate into dollars,” West said. “There’s the transit benefit and the quality of life benefit … It is a beautiful Class A apartment. It’s nicer than any apartment I’ve ever lived in and to see that type of work product done for people of all income levels is inspiring.”

Mintwood Real Estate founder Katy Slade said her team plans to start construction on phase two in May.