HomeMy WebLinkAboutEDA 2018-03-07 Minutes MINUTES OF THE ECONOMIC DEVELOPMENT ADVISORY COMMITTEE OF THE
CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE COUNCIL WORKROOM,
4301 CITY POINT DRIVE
MARCH 7, 2018
The Economic Development Advisory Committee of the City of North Richland Hills,
Texas, met on the 7th day of March, 2018 at 11:30 a.m. in the City Council Workroom.
Present: Ms. Rena Arnold Street Level Investments
Mr. Lee Hertel Bank of the West
Mr. Ron Huggins Huggins Honda
Mr. Jay Redford Jones Lang LaSalle Advisory Services
Ms. Janice Townsend Roots Coffeehouse
Mr. Mark Wood Howe/Wood & Company
Mr. Michael Wright MJW Architects
Absent: Mr. Bob Brown Bates Container
Mr. Xavier Villarreal Medical City North Hills
Staff Members: Mr. Craig Hulse Economic Development Director
Mr. Clayton Comstock Planning Manager
Ms. Elizabeth Copeland Economic Development Assistant
1. CALL TO ORDER
Mr. Wood called the meeting to order at 11:34 a.m.
2. APPROVAL OF MINUTES OF THE JULY 13, 2017 ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE MEETING
APPROVED
A MOTION WAS MADE BY MR. HERTEL, SECONDED BY MR. REDFORD TO
APPROVE THE MINUTES FROM THE JULY 13, 2017 MEETING.
MOTION TO APPROVE CARRIED 8-0.
3. DIRECTOR'S REPORT
3.A UPDATE ON CITY HONORS AND UPCOMING EVENTS
NRH was ranked #10 on the list of Top 100 Cities to Start a Business in the U.S. by How
to Start an LLC, a non-profit group focused on advancing entrepreneurship. Factors
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considered for ranking include cost of living, unemployment, university data, and the
Kauffman index, which is a leading indicator of new business creation in the United States.
North Richland Hills continues to be ranked as one of Texas' safest cities according to
Safehome.org. Many suburbs in DFW are highly ranked and the City continues to place a
high emphasis on public safety.
Each year, NRH2O is highly rated by various sources; recently, the waterpark received
recognition as one of the 10 Best Waterparks in the nation by Homesnacks, an online
family resource.
The American Planning Association named North Richland Hills a `Great Place,' with an
emphasis on HomeTown. NRH was one of only six Texas cities to receive this recognition.
The most recent citizen survey results are in, and findings show similarities to previous
years. Top requested business categories among residents include restaurants, movie
theaters and retail. While we are making progress in these areas, the focus of citizen
comments centered on the condition of roads. Based on this feedback, staff is looking to
place a greater emphasis on streets.
NRH Economic Development is in the process of redesigning the department's website to
ensure it remains current and keeps up with technological advances.
The TexRail project is coming along; cars were delivered to downtown Grapevine and will
begin testing soon with an anticipated opening at the end of 2018.
The Economic Development Advisory Committee will attend a combined meeting with the
Strategic Plan Committee on Thursday, June 14, 2018 at 6pm.
3.B DEVELOPMENT UPDATE
Commercial permit numbers and values from 2017 exceeded 2016. While NRH welcomed
slightly fewer new businesses in 2017 in comparison to 2016, taxable sales grew by over
2.5%; sales tax is starting to plateau.
Regarding Retail, Dining, Hospitality and Entertainment, NRH saw positive net absorption
of existing retail space in 2017, led by HomeZone occupying a 36,000 square foot space
and Painted Tree occupying a 35,000 square foot space. Leading into 2018, Mr. Hulse is
hoping the City absorption numbers will be flat considering the negative net absorption due
to the loss of Total Shooting Sports, 99 Only, and Ross Dress for Less. The City had over
51,000 square feet of new construction, including the addition of LA Fitness and Wag N
Wash in the North Tarrant Marketplace.
Restaurants/Hospitality/Entertainment Update
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• Babe's is starting to take shape with an expected opening in Q3 2018 and Sweetie
Pie's will follow, opening in Q2 2019.
• Alamo Drafthouse Cinema submitted plans for a location on the corner of North
Tarrant and Davis.
• Marriott TownPlace Suites remains interested in a new location in Home Town,
(further away from the school).
Regarding Office and Industrial, the City has seen a positive net absorption of over 44,000
square feet. NRH has a vacancy rate of 17%, slightly above the regional average, but
down from 20% this time last year. The additional square footage from Stericycle (84,000
s.f.), Riverwalk Financial (24,000 s.f.) and Federated Mutual Insurance (11,000 s.f.) has
helped with office absorption in the City. The Mid-Cities area as a whole remains
challenged by competing with DFW Airport, downtown Fort Worth and Alliance.
The strength and backbone of development is residential. Residential permit numbers are
slightly down from 2016; however, taxable value has increased. Construction value has
increased and permit value is averaging $460,000.
Mr. Hulse presented a chart listing new NRH subdivisions, corresponding lot sizes and
potential value. The data shows an average lot size of 7,000 s.f. with a potential value of
$410,000+. He made note of the diversity in lot sizes for future single-family subdivisions,
pointing out the shrinking lot sizes due to increases in land cost and cost of construction. A
trend of townhomes is also entering the NRH market including Iron Horse Commons in the
TOD.
Mr. Comstock mentioned a new Interactive Development Activity Map created by the
Planning department, located at www.nrhtx.com/map. This tool can be used to obtain
detailed information about new development, public hearings and road construction
projects, including City Council exhibits and project plans.
4. FINDING YOUR WHY
4.A DISCUSS THE NRH ECONOMIC DEVELOPMENT DEPARTMENT'S PURPOSE,
GOALS AND OBJECTIVES
Mr. Hulse spoke about the Simon Sinek `Why' video discussing the importance of
understanding why the Economic Development department exists. When going through
the exercise to determine the `Why' of the department, he determined two distinct
audiences: internal and external stakeholders. External stakeholders consist of taxpayers
and voters, including NRH Citizens, Existing NRH Businesses, NRH Property Owners as
well as those who make or influence decisions including Real Estate Brokers, Desired
Businesses/Site Selectors, Developers and Lenders/Investors.
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Mr. Hulse detailed a list of Why NRH Economic Development Exists to External
Stakeholders including:
Growing Efficiently.
We endeavor to grow and broaden the local economy in an effort to keep taxes down and
business up.
Focused on Quality.
We're a dedicated resource that facilitates development and business expansion in our
City.
Supporting Success.
We're the official City advocate for North Richland Hills' business, real estate and
development communities.
Experienced Staff.
We're a full-service department with an experienced staff, equipped with real-time city
information, real estate data and market intelligence that we provide at no cost to you.
Problem Solved.
We identify creative solutions to connect private sector enterprise with City goals.
Mr. Hulse then asked the committee to discuss. Mr. Wood added that the department is
the grease that keeps the wheel going and Mr. Wright agreed. Mr. Wood reminded the
group that the department creates awareness to the community. Mr. Redford spoke about
the possibility of creating a singular statement to tell a developer why they would want to
choose NRH over other surrounding communities. He reminded the group how the Why
video talked about "it's the `how' not `what' - how is this going to change your life?" The
group agreed to develop a singular statement for the department as a part of the next
committee meeting.
Ms. Arnold mentioned challenges she faces in cities without a solid economic development
department. She believes the committee should identify challenges external stakeholders
face in surrounding cities, so the department can communicate how much easier it is to do
business in North Richland Hills as opposed to nearby communities.
After discussing External Stakeholders, Mr. Hulse spoke about Internal Stakeholders,
consisting of those who shape policy, including City Council, P&Z Commission, EDAC,
Strategic Plan Committee, City Manager's Office, County, County College and School
District, as well as those who implement policy including the Development Review
Committee and City Departments.
Mr. Hulse presented a list of Why NRH Economic Development Exists to Internal
Stakeholders including:
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Here for You. The NRH Economic Development department functions as a dedicated
resource that facilitates quality development and business to achieve the best fit for the
City's vision and mission.
Meeting the Challenge. With over 65 cities in the greater DFW area over 10,000 in
population, our full-service department remains competitive to attract business and
development to our City.
Serving Our Community. NRH Economic Development is here to help diversify and
broaden the tax base in order to maintain essential public services and quality of life
amenities.
Uniquely Qualified. We're the only local government service that drives the tax base for
other public entities, such as the school district, the county, the community college and the
county hospital.
Mr. Hulse asked the group to discuss the internal list.
5. ECONOMIC DEVELOPMENT STRATEGIC PLAN
5.A REVIEW THE CITY OF FORT WORTH ECONOMIC DEVELOMENT STRATEGIC
PLAN
At the end of last year, the City of Fort Worth spent almost $400,000 developing their first
Economic Development Strategic Plan, a 400+ page document including data, insights
and opinion from business, real estate and education sectors. Mr. Hulse presented key
takeaways from the document.
Four Goals came out of the research:
• Establish Fort Worth's competitive edge
• Become a hub for creative business
• Ensure community vitality — Fort Worth doesn't prioritize Parks and Trails like NRH
• Develop tools and resources — Currently, Fort Worth has minimal financial
incentives available in comparison to other large cities, so they're considering an
Economic Development bond.
Current Issues and Challenges
• Lack of STEM occupations
• Lack of high skill level jobs
• Heavy on oil, gas, transportation, warehousing and manufacturing
• Light on corporate and regional offices, IT, professional services
For the purposes of the report, DFW was divided into two sectors, the Fort Worth
Metropolitan District and the Dallas Metropolitan District (which includes Denton). These
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sectors were compared to other U.S. cities such as Denver, Nashville, etc. Mr. Hulse
pointed out employment figures that affect NRH and Tarrant as a whole. The location
quotient related to STEM occupations including Computer and Math, Architecture and
Engineering, and Science (higher salaries and skill levels), shows Fort Worth to have, on
average, a competitively lower number of jobs in those categories. Most cities cited in the
report have a strength in one of the three STEM occupations reported (the Dallas District is
strong in Computer and Math); however, the Fort Worth District is not strong in any of the
areas.
To add further evidence, in comparison to other cities evaluated in the report, Fort Worth
has the lowest percentage of high skilled employment and the highest percentage of
employment that is considered low skilled. Fort Worth believes this is why their city isn't
competing for large corporate headquarters like other local cities have seen.
Resulting from this data, Fort Worth is putting more dollars and resources (tailoring
economic incentives) toward businesses that follow the STEM occupation level and the
Chamber is looking to double its budget.
5.B DISCUSS NRH ECONOMIC DEVELOPMENT STRATEGY #1 — REDEVELOP &
RE-USE VACANT & UNDERUTILIZED PROPERTIES
North Richland Hills last updated the City's Economic Development Plan in 2003. The Plan
includes three strategies: Redeveloping and Re-using Vacant and Underutilized
Properties, Promoting a Positive Business Climate, and Developing and Promoting an
Attractive, Diversified, and Thriving Community. Within each of these strategies, the
Strategic Plan identifies actions and goals. Mr. Hulse focused on the first strategy in the
plan (Redevelop and Re-use Vacant and Underutilized Properties). Current goals and
objectives under this heading include the following:
1. Targeting Reuse of Vacant Retail
2. Redevelop South Grapevine Highway
3. Redeveloping North Hills Mall
4. Evaluating Highest and Best Land Use of Loop 820 Area
5. Redeveloping Existing Neighborhoods
Some of these actions and goals may no longer be relevant today or may need to be re-
worded. The Economic Development Advisory Committee will recommend verbiage
changes to the actions and goals within the Economic Development Plan when meeting
with the Strategic Plan Committee in June. Mr. Hulse presented each goal individually to
the group and asked for feedback and edits.
Targeting Reuse of Vacant Retail — Mr. Hulse asked the group to keep in mind a few
things when discussing:
• The reuse of vacant space exists and will continue in the future
• Retail demands are changing with ecommerce delivery, big box retailers, etc.
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• Retail may be too specific of term
• Is the desire for traditional retailer occupancy or sales tax growth?
After discussing the specific words and connotations, the group agreed that this goal
should stay in place, but be re-worded with a more positive spin and a more generic term
of `commercial properties' instead of `retail.' Mr. Wood took a vote and the committee voted
unanimously to change the wording of Goal #1 to Revitalize and Reinvest in Existing
Commercial Properties.
Redevelop South Grapevine Highway — Mr. Hulse reminded the group that Grapevine
Hwy. has been renamed Boulevard 26 and there is an underperforming TIF district on the
west side that was implemented right before the recession. One of two intersections was
improved (Glenview and Boulevard 26), but Rufe Snow and Boulevard 26 was not
improved. The City has dramatically increased code enforcement in the area. When the
committee considers rewording this goal, it is important to ask the question: Is the desire or
intent to `redevelop' or `revitalize'?
The group discussed some options for wording taking into consideration that all of
Boulevard 26 should be included, not just the southern portion. This led to a discussion
that other corridors outside of Boulevard 26 exist that need improvement. In addition, the
group preferred the word `reenergize' over `redevelop.' There was a unanimous consensus
to change the wording of Goal #2 to Reenergize Mature Transportation Corridors.
Redeveloping North Hills Mall — Since this goal was developed, there has been a name
change from North Hills Mall to City Point. City Hall was moved to the property and 57
acres were rezoned from Commercial to Planned Development. The owner of the land is
willing to subdivide, but the City desires a master developer. A developer is in the process
of bringing 300 units of upscale multi-family to the ten acres behind St. John the Apostle
and the city is moving events and programming to City Point from Home Town.
The committee decided that since the land is now clear, the wording of this goal should
change from `Re-develop' to Develop'; this works well with the City Council goal of
`Develop City Point.' Mr. Hulse mentioned the idea of an Urban Village and the group
unanimously voted to change Goal #3 to Develop City Point into a Vibrant Urban
Village. The group had a brief conversation about identifying and/or creating a downtown
for the City (keeping in mind both City Point and Hometown). Mr. Hulse noted this could
be a good topic to talk about during the next committee meeting.
Evaluate the Highest and Best Land Use of Loop 820 Area — Kimley Horn conducted a
Loop 820 Corridor Study in advance of the highway-widening project approximately nine
years ago, providing recommendations to facilitate commercial. As a result, you can see
enhanced landscaping in the redevelopment of Ron Huggins' dealership, Taco Cabana,
Chipotle, Autonation, etc. Now that the North Tarrant Express project is complete, there is
still plenty of development opportunity including the former City Hall for sale and four acres
of land east of Sweetie Pie's. While the highway project created improvements, it also
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caused restricted access to many properties, creating under-performing commercial in
certain areas with sub-optimal access and visibility.
Mr. Comstock added that in 2012, NRH passed the Freeway Corridor Overlay District
Ordinance. Through this ordinance, the City implemented new land use classifications for
the corridor. The committee discussed keeping Loop 820 as one of the goals, but re-
wording to focus on implementation rather than evaluation. Mr. Hulse will be sending out a
copy of the Freeway Corridor Overlay Plan for the committee to review after the meeting.
Further discussion was postponed until the next meeting to vote on changing Goal #4 to
Implement Freeway Corridor Overlay Plan.
Redeveloping Existing Neighborhoods — The City has a successful matching grant
program in place inside Loop 820 to encourage residential renovation and flipping. North
Richland Hills is 90% built out, but has quite a bit of underutilized residential property
(small dwellings on large pieces of land). The possibility exists to combine larger lots into
subdivisions. The current residential trend is moving toward smaller lots. Mr. Hulse asked
the committee to discuss this goal, keeping in mind the options of renovation and resale in
addition to demolishing, combining and densifying.
The group discussed and agreed that the current wording of this goal is still relevant with
the word "re-develop" being broad enough to cover all of the abovementioned possibilities.
The committee voted unanimously to keep Goal #5 the same — Redevelop Existing
Neighborhoods. A conversation followed about the school district's role in helping
improve neighborhoods; Mr. Hulse made a note to discuss an integration with the school
system during the next meeting when discussing Strategy #3. He also pointed out that the
Overarching Strategy #1 wording of `Redevelop & Re-use Vacant & Underutilized Property'
may need to change. Possible verbiage from the committee includes `Community
Development Initiative' and `Re-invest'. Mr. Hulse plans to have staff review the wording
and make recommendations for discussion at the next meeting when finalizing Strategy
#1.
6. COMPREHENSIVE PLAN UPDATE
Mr. Comstock gave a short preview of the June 14, 6pm Strategic Plan Committee
meeting. The meeting will be a refresher to the Economic Development Advisory
Committee showing how the Economic Development Plan ties into the bigger picture
which will include Land Use Policies, Transportation Policies, Redevelopment and
Revitalization, Parks and Recreation, Urban Design and Beautification of the City. After
June, one or two more Strategic Plan Committee meetings will take place and then staff
will take the summer to write the individual planning documents. The goal is to have an
open house in October for public review of the Strategic Plan with adoption expected on
October 22.
7. DISCUSS FUTURE MEETING SCHEDULE
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Mr. Hulse will send out an email with date suggestions for the next meeting. The group
agreed that Wednesdays during lunch work well.
8. ADJOURNMENT
Mr. Wood adjourned the meeting at 1:05 p.m.
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Mark W.od, Chairman
Craig Hul.e,eecretary
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