HomeMy WebLinkAboutEDA 2019-02-14 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
FEBRUARY 14, 2019
The Economic Development Advisory Committee of the City of North Richland Hills,
Texas, met on the 14th day of February, 2019 at 11:30 a.m. in the City Council Workroom.
Present:
Mr. Bob Brown Smurfit Kappa
Mr. Ron Huggins Huggins Honda
Ms. Mindy Monroe Legend Bank
Mr. Jay Redford CBRE Valuation & Advisory Services
Ms. Janice Townsend Roots Coffeehouse
Mr. Mike Vasquez New Age Real Estate
Mr. Michael Wright MJW Architects
Absent: Ms. Rena Arnold In Aereo
Mr. Xavier Villarreal Medical City North Hills
Mr. Mark Wood Howe/Wood & Company
Staff Members: Mr. Craig Hulse Economic Development Director
Mr. Mark Hindman City Manager
Ms. Elizabeth Copeland Economic Development Analyst
1. CALL TO ORDER
Mr. Brown called the meeting to order at 11:41 a.m.
2. APPROVAL OF MINUTES OF THE SEPTEMBER 12, 2018 MEETING
APPROVED
A MOTION WAS MADE BY MS. MONROE, SECONDED BY MR. REDFORD TO
APPROVE THE MINUTES FROM THE SEPTEMBER 12, 2018 MEETING.
MOTION TO APPROVE CARRIED 7-0.
3. 2018 YEAR IN REVIEW VIDEO
Mr. Hulse played the 2018 Year in Review Video for the committee.
4. ECONOMIC DEVELOPMENT DIRECTOR'S REPORT
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4.A UPDATE ON UPCOMING EVENTS
Key dates to keep in mind:
• Tuesday, February 26 — Hands-On Business Planning Master Series
O 8:30-10 a.m. monthly every 4th Tuesday, NET Chamber Office
• Thursday, March 7 — Tarrant County Days at the Capitol 2019
o Northeast Chamber is organizing attendees to represent
• Friday, March 29 — Northeast Leadership Forum Annual Luncheon
O 11:30 a.m. at the Marq in Southlake — Speaker "Mattress Mack"
• Thursday, April 4 — SCR Commercial Trade Expo
O 3:30-6:30 p.m. — Cendera Center in Fort Worth
4.B NEW BUSINESS UPDATE
The City added over 100 new businesses in 2018, including multiple professional offices
which added over 240 office professionals, providing additional daytime population. Adding
to the City's daytime population was one of the elements identified as an opportunity in the
Economic Development Strategy. Noteworthy new professional offices added in 2018
include:
• HeartCare Specialists — 8479 Davis Blvd
o HCA General Cardiology Practice— 16 Employees
• Reinforced Earth — 9001 Airport Fwy
o Civil Engineering Design Company— Regional HQ— 26 Employees
• Ameristar Information Network— 6616 Davis
o Abstract and Research Company— HQ— 60 Employees
• Crimson Building Company— 8721 Airport Fwy
o Construction Company— HQ — 30 Employees
• CarFinance.com — 9003 Airport Fwy
o Automobile Lending HQ— 30 Employees
• Riverwalk Credit Solutions — 9151 Boulevard 26
o Credit Enhancement Services— HQ— 20 Employees
• Deville Asset Management — 9151 Boulevard 26
o Asset Management Firm— HQ— 60 Employees
Mr. Hulse acknowledged Legend Bank which will soon be opening a new branch in North
Richland Hills, occupying 10,000 s.f. on the first floor of their building located north of 820.
While the City added 100 new businesses and 1,043 new jobs, 50 businesses and 553
jobs were lost, for a net of 50 businesses and around 500 new jobs created in NRH. A few
noteworthy new businesses in the Service/Retail sector include the following:
• Bonzai Cycle Werx— 5750 Davis
o Bike Shop
• Fitness Now relocated from Watauga to NRH at 7580 NE Loop 820
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o Fitness Facility
• Dirt Cheap moved into the former 99 Only store at 6246 Rufe Snow
o Discount Apparel
• NTX Bulls Baseball Club now occupies approximately 50,000 sq. ft. of space at
7601 Boulevard 26 which used to house a Laser Tag business.
o Baseball Club Indoor Facility
4.0 DEVELOPMENT TRENDS (COMMERCIAL, RESIDENTIAL, MULTI-FAMILY)
The City is still developing at a record pace in regards to permits and construction activity.
• 642 construction permits issued last year, $115 million in value
O 7% more permits than previous year
• 100 case submittals
O 18 more than previous year to date
• 178 commercial construction permits
O 86% increase in commercial remodels
• 234 new residential permits issued
o Ties with 2016 as most in the last decade and most in NE Tarrant County
Isolating Service and Retail in NRH, the City has 5.5 million square feet of retail/service
related space with 550,000 square feet currently vacant. While it seems like a high
number, looking at trends back to 2014, the City's vacancy rate has improved with
absorption. In 2018, 30 new leases representing 150,000 square feet helped lower the
vacancy rate. Alamo Drafthouse coming online will add another 60,000 square feet to the
total amount of space in North Richland Hills.
Alamo Drafthouse is currently under construction with a targeted opening of April 26 to
coincide with the new Avengers movie release. The theater is currently hiring for staff on
Indeed.com in hopes of beginning training on April 1. The owner of the pad sites in front of
Alamo is close to issuing a contract with Braums.
Airborne Trampoline Park recently opened in the former Ross Dress for Less on the
Southwest corner of Davis and North Tarrant. A state-of-the-art trampoline park, the
business includes a ninja warrior course, wipeout attraction, and an escape room.
The southeast corner of Maplewood and Davis was a former Taco Bell, vacant gas station,
and lube station which was not the most attractive area of town. RaceTrac was able to
consolidate these obsolete properties and construct a brand new gas station, providing
cross access to the former Total Shooting Sports building and serve as a model for
revitalization in North Richland Hills.
Commercial Office is an important component of the community. The City has over 2.2
million square feet of commercial office space with a current vacancy of just over a quarter
million square feet. While this is a large amount, the number is dramatically down from
400,000 in 2016. In 2018 the City had 62 new leases representing 109,000 square feet.
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The current vacancy rate is 12% which is the lowest the City has seen in the past ten
years.
A couple of current renovation projects in North Richland Hills include:
• High Line Group - currently renovating the exterior and interior of the former NTB
located at 6904 NE Loop 820.
• Urbanology Designs — award winning interior design firm that was operating out of a
NRH resident's home is moving into the former fire station at 8300 Starnes.
Multifamily is currently under construction in HomeTown and the TOD areas include a
multifamily component. Multifamily vacancy rates in NRH have increased since 2017,
largely due to the new Dolce still leasing brand new spaces.
The City has 5,082 units that were built prior to 2000. Rent prices for these units average
$1.11 per square foot. 1,203 units in the City were constructed between 2000-2010 and
rent at an average of $1.13 per square foot. Since 2010, 575 units have been built, with an
average rent of$1 .49 per square foot.
The new Millennium at HomeTown is currently under construction with 252 multifamily
units, expecting rents in the $1.50-1.60 per square foot. This new complex will have an
urban and walkable feel.
Another current multifamily project in the City is Stone Creek Assisted Living on the corner
of Amundson and Mid Cities. This facility will have 72 units of assisted living and memory
care with 13 separate one-story units, offering a single family lifestyle.
Regarding residential development, there is a tremendous amount of activity with 400 lots
approved and 300 available, ranging from 1 ,800 square feet to 4,000+ square feet, and
starting at $320k to over $600k.
The City also has 424 new lots approved for townhomes with 341 available, ranging from
1,350 square feet to 2,500+ square feet, and prices starting at $225k to over $350k.
Mr. Hulse opened it up for questions from the Committee.
Mr. Vasquez asked about the former Don Pablo's. Mr. Hulse said there is a user that is
interested in the property and is close to being under contract. This is an attractive user
that would tear down and build a new building on the property.
Mr. Wright mentioned Berry Creek Village which is developing a mixed use development
without residential on the ten acres north of Birdville High School between Hawk and Mid-
Cities, all the way to Precinct Line.
4.D PROJECT UPDATES
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TEXRaiI opened in January with 11,000 riders on opening weekend and 100,000 during
the first 22 days of service, averaging 4,500 riders per day. TEXRaiI targets 8,000 riders
per day by the end of the year. One way fare is $2.50 and all day passes cost $5.00.
Mr. Brown asked if a particular leg is the busiest. Mr. Hulse said that while numbers aren't
out yet, he has heard that Smithfield Station has the third highest ridership and the
Grapevine and Downtown Fort Worth stations also have high ridership numbers.
Mr. Vasquez asked if there are plans to expand the rail to the west. Mr. Hulse said the
original plan was to go south to Crowley and while that didn't happen, the plans still exist.
The network along the Cottonbelt Trail is already funded and approved to extend the
network eastbound through Carrolton and Farmers Branch, into Addison.
As it relates to Transit Oriented Development, the Smithfield TOD was approved for a
grant to reconstruct Main Street, which is currently in the design phase with plans to
complete construction in 2021. The City hired Catalyst Commercial for a consultative
review of Smithfield, looking at how to stimulate commercial uses and ensuring staff and
Council have made the right decisions. The consultant plans to present to Council in
March. The recent ISD bond election was approved, which included the redevelopment &
relocation of Smithfield Elementary. The City is working closely with the ISD to fit the TOD
design guidelines and swap land with the City. The City owns 14 acres fronting Davis
Boulevard and will be issuing an RFP later this year to select a developer for the land.
Construction is underway on Iron Horse Commons (CB Jeni & Our Country Homes) in the
Iron Horse TOD, north of Boulder Drive. RightQuest, a developer, is mobilizing to begin
construction of 300 multifamily units on the corner of Boulder and Iron Horse.
In late 2018, Council adopted plans for the final phases of HomeTown, including 50 single
family lots, 150 additional townhome lots and 46 condos (first of its kind in NRH). Also
approved was a 100+ room Marriott TownPlace Suites. In late 2017, Council voted down a
hotel use in HomeTown, due to its close proximity to the elementary school. The new,
approved location is situated at Parker Boulevard and Grand Avenue.
Mr. Hulse gave a brief review of the history of City Point, reminding the group that in 2014,
it was a finalist location for Top Golf, which is now located in Fort Worth. In 2015, it was
selected for Babe's Chicken Dinner House; however the property owners passed on the
opportunity. This was the first time the City Point property was ever listed. In 2016, City
Point land was under contract, pending development by Kroger Marketplace, but Kroger
was not prepared to move; therefore, the contract was dropped. In late 2017, 10 acres
were pending sale for 300 multi-family units, and in 2018, the land was purchased by AG
Spanos for multifamily use.
In January 2019, the balance of the City Point property (approximately 50 acres) went
under contract with Centurion American and a special session is scheduled in March 2019
for City Council to review the conceptual plan. Centurion is a diversified real estate firm
that is one of the largest developers in North Texas. Headquartered out of Farmers
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Branch, the developer has ties to North Texas with notable projects including the
Riverwalk in Flower Mound, Founders Park in Euless, and Westlake Entrada. More
information about the developer can be found at www.centurionamerican.com.
4.E 86TH LEGISLATIVE SESSION UPDATE
The current Texas Legislative Session began in January and ends on May 27. Unlike
many other states, the Senators and Representatives only convene once every two years.
To date, 3,148 bills have been filed; however, only a small percentage will actually pass.
NRH's Guiding Principles include: 1) Local control, 2) A predictable and sufficient level of
revenue to deliver quality services, 3) Opposition of unfunded mandates, and 4)
Preserving `Quality of life.'
Texas Economic Development Council's Priorities include: 1) Promote and Protect Local
Control, 2) Support and Promote Innovation and Entrepreneurship, and 3) Maintain
Funding for Texas Workforce Development Programs.
Property Tax Reform is the hot topic this session. Mr. Hulse shared a chart showing
property values since 1997, which are increasing; therefore, residents are paying more in
property tax. The state has chosen to take a route that makes sense, but Mr. Hulse doesn't
believe it is comprehensive enough. Breaking down property taxes, over 50 percent of
property taxes go to the school district, 23 percent to the County and just over 22 percent
go to the City. Both County and City combined make up 45 percent of the tax burden.
When it comes to school financing, the state has control, taking the tax revenues and
distributing to ensure that each student receives the same amount of funding regardless of
where they are located, socioeconomic status, etc. This is a good thing; however, the local
share is becoming a larger piece of public education funding. The state share of education
funding is going down, while the local share taken from property tax is increasing. The
legislators are only focusing on the small share of property tax (cities and counties) rather
than the 55 percent that supports the schools. The City believes that they need to look at
the entire amount (including schools). The Property Tax Cap that is currently being
proposed reduces the cap on cities and counties; however, it doesn't address the school
district's portion of property taxes. Limiting the property tax cap will affect the city's ability
to fund streets, police, fire, etc.
Mr. Hulse encouraged the group to read the news and keep track of these bills to see how
things shake out. State legislators are proposing a 2.5 percent cap which may not even
equate to CPI or inflation. The City is hopeful a middle ground will be agreed upon and the
cap will be higher.
5. ECONOMIC DEVLEOPMENT STRATEGIC PLAN
5.A COMMUNICATE STATUS
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Mr. Hulse reviewed the Committee's work on the Economic Development Strategic Plan
thus far, including:
May 2017 — City Overview, Discuss 2003 Plan
July 2017 — City Deep Dive, business, development, property, societal trends
March 2018 — Review & Discuss Plan Goal #1
May 2018 — Review & Discuss Plan Goals #2 and #3
June 2018 — Joint Meeting of EDAC & SPC
September 2018 — Confirm, Discuss and Recommend Plan Forward
Staff is targeting a date in March/April 2019 for Council to review the work and consider it
for adoption. Mr. Hulse mentioned the recent Council Retreat, saying that the Council is
eager to see the new Economic Development Plan. He expects them to have a few
tweaks, but overall, be very pleased with the work.
6. COMPREHENSIVE LAND USE PLAN UPDATE
6.A UPDATE ON STRATEGIC PLAN COMMITTEE
Mr. Hulse reminded the committee of the work the Strategic Planning Committee has
completed, including:
March 2017 — First Meeting, Review of Existing Plans
May 2017 —Tour of City
August 2017 — SWOT Analysis
January 2018 — Discussion of Future Land Uses
Joint Meetings
April 2018 — Joint Meeting with Parks & Recreation Board
May 2018 — Joint Meeting with Keep NRH Beautiful
June 2018 — Joint Meeting with EDAC
September & October 2018 — Public Hearings On Future Land Use Plan
November 2018 — Discuss Transportation Plan with Future Land Use Plan
The Strategic Planning Committee will also be involved in the March/April Council review
and adoption.
7. DISCUSS FUTURE MEETING SCHEDULE
Mr. Hulse expressed interest in meeting again in the next two months. The Committee
agreed that Thursdays at lunchtime seem to be a good meeting time. Mr. Hulse will send
out an email with a few date options prior to the next committee meeting.
8. ADJOURNMENT
Mr. Wood adjourned the meeting at 12:42 p.m.
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