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HomeMy WebLinkAboutEDA 2023-07-19 Agendas t4RH NOKTH KICH�AND HILL CITY OF NORTH RICHLAND HILLS ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 WEDNESDAY, JULY 19, 2023 REGULAR MEETING: 11:30 AM Held in the Council Workroom A. CALL TO ORDER B. PUBLIC COMMENTS An opportunity for citizens to address the Economic Development Advisory Committee on matters which are scheduled on this agenda for consideration by the Board, but not scheduled as a public hearing. In order to address the Economic Development Advisory Committee during public comments, a Public Meeting Appearance Card must be completed and presented to the recording secretary prior to the start of the Economic Development Advisory Committee meeting. C. ACTION ITEMS C.1 Approve Minutes of the February 15, 2023 Economic Develo�ment Advisory Committee meeting. D. INFORMATIONAL ITEMS D.1 Introduction of New Economic Development Staff E. DIRECTOR'S REPORT E.1 Update on Local and Regional Economic Trends E.2 Development Trends for commercial, residential, and multi-family properties E.3 New and Upcoming Business Report Wednesday, July 19, 2023 Economic Development Advisory Committee Agenda Page 1 of 2 F. PROJECT AND PROGRAM UPDATES F.1 Street Bond Project Update F.2 City Point Development Update F.3 Transit Oriented Development Update G. LEGISLATIVE UPDATE G.1 88th Texas Legislative Session H. ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills Economic Development Advisory Committee was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, July 14, 2023 by 3:00 PM. Traci Henderson Assistant City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. Wednesday, July 19, 2023 Economic Development Advisory Committee Agenda Page 2 of 2 IrLp NOKTH KICHLAN HILLS ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEMORANDUM FROM: Craig Hulse, Director of DATE: July 19, 2023 Economic Development SUBJECT: Approve minutes of the Economic Development Advisory Committee meeting. PRESENTER: Craig Hulse, Director of Economic Development SUMMARY: The minutes are approved by majority vote of the Economic Development Advisory Committee. GENERAL DESCRIPTION: The Economic Development department prepares action minutes for each Economic Development Advisory Committee meeting. The minutes for the previous meetings are prepared and provided for review of the Committee. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve minutes of the February 15, 2023 Economic Development Advisory Committee meeting. MINUTES OF THE ECONOMIC DEVELOPMENT ADVISORY COMMITTEE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE COUNCIL WORK SESSION ROOM, 4301 CITY POINT DRIVE February 15, 2023 The Economic Development Advisory Committee of the City of North Richland Hills, Texas, met on the 15th of February at 11.30 a.m. in the Council Work Session Room. Present: Mr. Joshua Fichter Five Star Ford Mr. Jay Garrison JA Garrison & Associates Mr. Jay Redford CBRE Commercial Mr. Mark Wood Howe/Wood & Company Ms. Mindy Monroe Legend Bank Ms. Stephanie Seybert SeyTec Mr. Mikhail Orlov GRITR Mr. Mark Deno Medical City North Hills Absent: Mr. Mike Vasquez Century 21 Preferred Properties Ms. Darlisa Diltz NTEEC Staff Members: Mr. Craig Hulse Economic Development Director Ms. Elizabeth Copeland Economic Development Analyst Ms. Paulette Hartman Deputy City Manager Ms. Kelly Vaughn Administrative Secretary A. CALL TO ORDER Chairman Wood called the meeting to order at 11.40 a.m. B. CITIZEN'S PRESENTATION / PUBLIC COMMENTS No citizens present for public comments. C. APPROVAL OF MINUTES OF THE AUGUST 4, 2022, MEETING APPROVED A MOTION WAS MADE BY MR. REDFORD, SECONDED BY MS. MONROE TO APPROVE THE MINUTES FROM THE AUGUST 4, 2022, MEETING. MOTION TO APPROVE CARRIED 8-0. February 15,2023 Economic Development Advisory Committee Meeting Minutes Page 1 D. NEW ECONOMIC DEVOLOPMENT STAFF INTRODUCTION Mr. Hulse introduced Kelly Vaughn as the new Administrative Secretary of Economic Development. E. ECONOMIC DEVELOPMENT DIRECTOR'S REPORT Mr. Hulse presented a high-level summary of what is going on in the community, specifically from an economic standpoint. EA Update on Local and Regional Economic Trends Unemployment is currently down to 3%, down from 4% this time last year. DFW inflation was up 8.6% over 2021. Since 2000, the average inflation rate was 2.33%. The Fed Fund Rate is at a 15-year peak (4.33%), while the 30-year mortgage rate now sits at 6%. Consumer confidence, a highly volatile indicator is down due to high levels of inflation and interest rates, in addition to global uncertainty. However, unemployment remains at record lows (3.5%). Still, local taxable sales are up -9% over the previous year, mostly due to inflation and commensurate price increases. Since June 2022 local residential property values started to slightly decline due to higher interest rates. A study conducted in 2023 by Ernst and Young on the greater Fort Worth Region recommended a continued focus on existing industries where the region has a competitive advantage. Those target industries are aerospace, mobility, and energy. From a target market standpoint, Mr. Hulse pointed out that target areas for recruitment are Southern California and Chicago, however there is a challenge in recruiting large corporations to come over to this side of the metroplex due to the lack of contiguous blocks of space available. E.2 Development Trends (commercial, resident, multi-family) North Richland Hills is 90% built out and has a focus on redevelopment & revitalization. The city is a dynamic community that embraces diversity with continued growth due to location, demand, and quality of life. We are fortunate to have stable, seasoned, and respected leadership and staff. Mr. Hulse directed members to several highlights over the course of this past year. City staff and city council kept busy processing 90 new development applications. Staff processed 350 new construction permits; 250 of which were single-family homes. The City welcomed 130 new businesses for a net increase of 50 businesses. Every two years a citizen survey is conducted to keep on top of community needs, and 94% of those surveyed indicated quality of life in NRH is excellent or good. The city was able to attract four noteworthy businesses that are slated for 2023 openings representing over 250,000 square feet of formerly vacant commercial space. Pertaining to local development trends, the City continues to benefit from a central location, excellent quality of life and a solid business climate. Single family starts are continuing to exceed 200 per year, leading NE Tarrant County for the past 7 years. Single family remodels February 15,2023 Economic Development Advisory Committee Meeting Minutes Page 2 are slightly down now that people are no longer required to social distance and can get out and about. On the commercial side, permitting is steady as most permits involve the upgrading or renovating of existing commercial property. The development community continues to discover areas for growth, specifically land that is underutilized or previously out of economic reach. Home prices are flat when compared to this time last year but were up 20% from the year before. The current overheated single-family prices are being tested by increased interest rates, so it will be interesting to see if prices eventually taper, or if days on the market continue to increase. From a commercial real estate standpoint, the city is in good shape. Retail vacancy is currently down over 2% from last year, while rents are up 3%. The shift toward suburban office continues to be a strongpoint, where the city experienced 20% vacancy just five years ago. In downtown Dallas alone, approximately 3.7 million square feet office space is set to convert to residential. E.3 New and Upcoming Business Located directly across from City Point, Warespace is a new concept to DFW that offers small private business units with the capabilities of a large facility such as shipping & receiving and meeting rooms. The 77,000 square foot building has been renovated to offer 70 different spaces under flexible lease terms for new start-ups and small businesses. Warepace staff is on-site with plans to open in the coming weeks. A few of the businesses that have moved in are CDG Elevated Events a DJ and Event Planning, Sabrena Experience a hair and makeup beauty consultant, Ranger to the Rescue — a pet waste removal business, Best Bodies for Life — ecommerce health food, and Meadow Hill Farms — ecommerce for high end and farm-based foods. Volli Entertainment selected North Richland Hills for their first Texas location at the former Hobby Lobby location at Rufe Snow and Loop 820. Currently under construction, the 66,000 square foot building will play host to the largest indoor pickleball/sportsbar/adventure park in the country. The family friendly megaplex will offer 7 competitive pickleball courts, an arcade, golf simulators, plus a kid-friendly adventure park alongside a restaurant and bar. Currently under construction, Volli is expected to open late spring, early summer. EoS Fitness, a Dallas-based fitness organization with over 100 gyms across California, Arizona, Texas, Nevada, Utah and Florida, is coming to NRH. In addition to weights, cardio machines and fitness classes, the facility will include a pool, sauna, recovery room and even towel service. This is a long time coming for this 59,000 square foot vacant property as Tom Thumb Grocery was still under lease until last year. EoS Fitness is expected to open early 2024. And finally, B&B Theatres, the nation's largest privately held theater chain. Aside from their food menu and bar, B&B offers free refills on all sodas and large popcorn, and will feature their Grand Screen, which is a curved wall to wall screen that is among the largest in the February 15,2023 Economic Development Advisory Committee Meeting Minutes Page 3 nation. The city was disappointed to see Alamo close, but excited to see this theatre re- open. F. PROJECT AND PROGRAM UPDATES F.1 Street Bond Project Update Mr. Hulse updated the members on the $49 million NRH bond package voted on in 2020 and gave progress on all major streets and where they are on the timeline towards completion. F.2 City Point This is a six-year project. In year three, the estimated completion is December 2026. Originally, this was a $185 million project plan, there has been a 20% increase in single property values and the project plan is now estimated at $225 million. The horizontal infrastructure is 100% complete. This includes the streets, drainage, sewer, streetlights, and franchise utilities. Model and speculative homes are underway and there is a projection of 2,500 additional residents that will live in this area. This is 30% the size of Richland Hills. Homebuilders Mattamy Homes, Ashton Woods and CB Jeni Model offer a diverse mix of detached and attached homes that are two or three stories, ranging in price from the mid- 300's to the low 500's. The Delegate at City Point, a 4-story multi-family project, began construction at the beginning of 2022 and is expected to be available for lease in early 2024. The commercial area is the centerpiece of City Point and is divided into two separate 30,000 square foot phases along City Point Drive. Master Developer Centurion American and NRH City Staff are in the final stages of review with the first phase set to start construction in summer of 2023. F.3 Transit Oriented Development The TEXRail station at Smithfield has grown in weekday ridership by 66% over the last year. People can ride for fun or business, but data reveals the biggest trigger is to take it to the airport. Numbers will continue to increase as development increases around Iron Horse and Smithfield. Smithfield is the number three most used station during the weekdays. The Council approved the sale of 9.5 acres to Presidium group out of Dallas. They are going to be constructing a 4 story, 325-unit multi-family mixed use development. They will also be building 20,000 square feet for commercial use around Back Forty Smoke House along Main Street. 70% of the building must be food service or for entertainment use. The remaining 30% of the building could be non-food service or non-entertainment related. Also, just north of the Smithfield station platform, there is another group looking to construct a 4 story, 214-unit, multi-family, parking Garage, 10,000 square feet commercial space on the front. This is another exciting project in Smithfield. February 15,2023 Economic Development Advisory Committee Meeting Minutes Page 4 G. 88t" Texas Legislative Session The Texas Legislature meets in regular session on the second Tuesday in January of each odd-numbered year. The Texas Constitution limits the regular session to 140 calendar days. Senator Kelly Hancock, born and raised in North Richland Hillis is our state senator. He is one of the more notable leaders in the state senate. Stephanie Klick is our State Representative that offices out of the same building as Mindy Monroe fronting Loop 820 at Rufe Snow. Mr. Hulse brought these state officials to the attention of the members because of their legislative importance and because of priorities that need our attention. The newsworthy issues now are high property taxes, the electrical grid, gender rights and books in schools. There is a $33 billion surplus in the state budget right where important decisions are being made about what to do with these funds, where much of it will go towards property tax relief. Regulatory and local priorities are to preserve decision making authority of local leaders. We need to preserve tools for economic development and address workforce shortages in health care, as well as reduce the number of un and under-insured. We must also ensure the electric grid is reliable, expand broadband, ensure water supply, and support infrastructure public/private partnerships. We must oppose any legislation that would erode authority of Texas cities. Cities must be assured of a predictable and sufficient level of revenue. And finally, we must oppose the imposition of state mandates that do not provide commensurate compensation. H. ADJOURNMENT Chairman Wood adjourned the meeting at 1.09 PM. Mark Wood, Chairman Craig Hulse, Secretary February 15,2023 Economic Development Advisory Committee Meeting Minutes Page 5