HomeMy WebLinkAboutEDA 2024-03-28 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
THURSDAY, MARCH 28, 2024
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 November 9, 2023 Economic Develo�ment
Advisory Committee meeting.
D. DIRECTOR'S REPORT
D.1 Update on City Management Organizational Changes
D.2 Review 2023 Citizen Survey Results
D.3 Update on Local and Regional Economic Trends
DA Development Trends (commercial, residential, multi-family)
D.5 New and Upcoming Business Report
Thursday, March 28, 2024 Economic Development Advisory Committee Agenda
Page 1 of 2
E. PROJECT AND PROGRAM UPDATES
E.1 2020 Street Bond Project Update
E.2 North Tarrant Express Capacity Improvement Project Update
E.3 City Point Development Update
EA Davis Boulevard/Boulevard 26 Neighborhood Empowerment Zone
Update
F. 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, March 22, 2024 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.
Thursday, March 28, 2024 Economic Development Advisory Committee Agenda
Page 2 of 2
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NOKTH KICHLAN HILLS
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
MEMORANDUM
FROM: Craig Hulse, Director of DATE: March 28, 2024
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 November 9, 2023 Economic Development Advisory Committee
meeting.
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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
November 9, 2023
The Economic Development Advisory Committee of the City of North Richland Hills,
Texas, met on the 9th of November at 11.30 a.m. in the Council Work Session Room.
Present: Mr. Mikhail Orlov GRITR
Mr. Jay Garrison JA Garrison & Associates
Mr. Jay Redford CBRE Commercial
Mr. Mark Wood Howe/Wood & Company
Ms. Mindy Monroe Legend Bank
Ms. Darlisa Diltz NTEEC
Mr. Curtis Nash Grace's Tiers Bakery
Mr. Mark Deno Medical City North Hills
Absent:
Ms. Stephanie Seybert SeyTec
Mr. Joshua Fichter Five StarFord
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 11.33 a.m.
B. CITIZEN'S PRESENTATION / PUBLIC COMMENTS
No citizens present for public comments.
C. APPROVAL OF MINUTES OF THE JULY 9t", 2023, MEETING
APPROVED
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A MOTION WAS MADE BY MR. REDFORD, SECONDED BY MS. DILTZ TO
APPROVE THE MINUTES FROM THE NOVEMBER 9, 2023, MEETING. MOTION TO
APPROVE CARRIED 8-0.
D ECONOMIC DEVELOPMENT DIRECTOR'S REPORT
Mr. Hulse presented a high level of what is going on in the community, specifically from
an economic standpoint.
DA Update on Local and Regional Economic Trends
Local unemployment is at 3.5%, a half percent below the Country/Region/State, with
traditional levels in the range of 3 to 4'/2 percent. Consumer prices and inflation are up
5% in DFW, relatively the same since we last met in July, however it remains 14% higher
since 2021 . For reference, between 2000 and 2020 the annual rate was 1.89%.
The Fed Fund Rate remains at a 15-year peak (5.25%) up 3% from a year ago. As of
November 2, the 30-year mortgage rate is 7.2%, slightly up since we met in July and the
highest since October 2000, over 23 years ago. Consumer confidence is slightly up from
this time last year but remains down 20% from 2 years ago just before inflation started to
increase.
Local sales are up almost 5% over previous year. Single family property values are
holding steady, while commercial property, specifically office property is challenged. Mr.
Hulse took a pause at this point in his report to get reflections from Advisory members
about their current experience on the general economy as it stands right now.
Curtis Nash of Graces Tiers Bakery spoke about his first 18 months in business,
acknowledging that his fresh baked goods are more of a luxury for people. Customers
come in somewhat expecting to pay more, however recently there was an egg shortage
that forced them to get creative and they are now working with local farmers to mass
produce for a better price and not have to outsource every time to bigger companies.
Mikhail Orlov, owner of GRITR indicated that while his local operation was up, the e-
commerce operation through Amazon was trending down and he believes this is
connected to how people feel about the world and the economy. When consumers are
concerned about the future, they spend less.
Jay Redford of CBRE Commercial indicated the increase in interest rates have technically
raised house payments by 75%. A 3% 30-year mortgage allowed people to have a higher
standard of living; so going to a lower standard of living is very painful. We are living in
an adjustment period while people get used to a new normal. While housing prices have
stabilized specifically, no one wants to give up a 3% mortgage to go get a 7% mortgage
for a new house. People are not moving out of their houses anymore and new home
construction exceeds demand right now.
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Mark Deno of Medical City North Hills spoke from the perspective of the health sector. He
explained the difference between elective and emergent health care and said that if
someone came in with an urgent need and an unrelated concern was discovered, they
would opt to have it taken care of at the same time. There has now been a dramatic shift
as patients now choose to follow up with doctors down the line. There has also been an
overall decrease in demand to get appointments, especially if they think it could lead to
surgery. All these things lead to a very slow season in health care. Final point made is
that there are a lot of inflated costs over the last few years. Now that most of the pandemic
relief funds are gone, there is an increase in costs for labor and supplies. Many physicians
are looking to sell their practices and some smaller groups are trying to sell to the hospital
or hospital affiliated providers just to get the overhead off their books.
D.2 Development Trends (commercial, residential, multi-family)
We are nearing full build out in North Richland Hills, there are a few subdivisions that are
currently being built and some future subdivisions that have yet to start that have been
approved.
While the city continues to lead NE Tarrant County in single-family units, we're down 50%
over the last year as interest rates take a toll on overall development activity. The "lock-
in effect" remains while accidental landlords choose to rent their house while keeping their
low rate intact. Currently there is only 2.4 months of inventory available, which is one-
third the traditional norm. While home sales in Tarrant County are down 10% from a year
ago, a survey of local builders indicated optimism as buyers are no longer willing to wait
for declines in interest rates.
From a commercial real estate standpoint, the city is in decent shape. Retail vacancy is
currently down 2% from last year, while rents are up 3%. Currently at 6%, retail vacancy
peaked at 14% during the pandemic. The office vacancy bug is beginning to hit the city.
While we have benefitted from the shift of office demand from downtown to suburban,
one of the larger office businesses, Stericycle representing 128,000 square feet has
vacated their space going 100% remote as will Santander off Rufe Snow and their
200,000 sf of space in early 2024.
Mr. Hulse introduced the concept of shared workspaces. He defined it as an office or
other environment in which professionals and different businesses share equipment,
ideas, and knowledge for the betterment of all involved.
Right now, in NRH, we have seven collaborative locations that represent over 200,000
square feet. Many of them have come on recently that office flex warehouse and creative
spaces and they have dispersed throughout our community. Mr. Hulse gave brief
descriptions of each location and shared what made them different and what value they
brought to our community. These seven locations are listed as follows: 1) Warespace,
2) NT Suites, 3) Truespace, 4) Caddo, 5) AFT Commercial, 6) Platinum Music Complex
and 7) The Maker Spot.
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Work schedules have evolved past the typical 9 to 5 workday leaving office tenants to
rearrange their real estate footprints to accommodate the shifts in how employees work.
According to Coworker Mag, the coworking industry is one of the fastest growing
industries in the US due to the consequence of the pandemic and the rise in hybrid work.
D.3 New and Upcoming Business Report
Similar to Floor Decor, Seconds and Surplus is opening later this month right across the
street from City Hall and generate about $10 million in taxable sales. King Crab opened
on Bedford-Euless Road, but unfortunately at the wrong time due to street reconstruction
and changes to access. Even so, there have been really good reviews. Tru Hotel by Hilton
along the border of Hurst is opening tomorrow.
If you did not know, we have a craft beer culture here in North Richland Hills and Keyworth
brewery opened a couple of months ago and they are doing fantastic. Up north it was just
announced that a Five Guys is coming to NRH and the former Capitol One Bank across
Davis from Cotton Patch is going to be a CareNow medical clinic.
Blue Mound Cafe is coming to Rufe Snow as well as Crunch Fitness and EoS Fitness.
Crunch Fitness is located at the former UFC, where EOS Fitness is a few miles north on
Rufe Snow and Hightower. There is a lot of good activity that we are thankful for, and
proud of due to the leadership of this committee, the leadership of Planning and Zoning
Commission, City Council, and citizens.
Located on northeast corner of Rufe Snow and 820, Ross and Five Below are now open
and Pop Shelf will soon be joining them. Applebee's recently closed and will be the future
home of a Chick-fil-A with two drive throughs and new technology. We are also reviewing
plans for a Jason's Deli to replace the old Chick-fil-A location.
Caddo Office is beginning construction in front of B&B Theaters while Braums is also
about to resurrect their construction at the beginning of the year.
Construction is underway on Peppa Pig and the British company says that they are on
target for completion for the summer season 2024
E. PROJECT AND PROGRAM UPDATES
EA 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.
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A reminder that the city was awarded a$4.2 million grant from the Economic Development
Administration, the largest grant in North Central Texas area from the Cares Act which
allowed the city to pursue additional street reconstruction with the 2020 bond proceeds.
E.2 City Point
City Point is Tarrant County's first major mall redevelopment that when complete will be
home to 2,500 new residents and numerous new businesses. Model homes have been
built and the first homeowners are beginning to move in. Homebuilders, Mattamy Homes,
Ashton Woods and CB Jeni offer a diverse mix of detached and attached homes that are
two to three stories, ranging in price from the mid-300's to the low 500's.
The Delegate at City Point, a 4-story multifamily 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 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 late 2023.
E.3 Transit Oriented Development
TexRail ridership is up 23% over the last year which was the first year, post pandemic,
where there were no interruptions. Smithfield is the third most used station behind
downtown's Central station and Grapevine Main.
Last month the City Council approved the zoning for a 4 story, 298-unit multi-family
project. This also includes 20,000 square feet of commercial fronting Main Street and
surrounding Back 40 Barbeque. Another project in design on the west side of Smithfield
Road, directly north of Mid Cities, is a 300-unit project, parking deck, with 18,000 square
feet of commercial right at the station.
Jay Garrison, of JA Garrison & Associates gave an update on the 820 expansions. The
third lane is going to start at Riverside and run to Highway 26
F. Davis Boulevard/Boulevard 26 Neighborhood Empowerment Zone
We have an area of town where many of the buildings are functionally obsolete, starting
to decay and become unattractive. As a result they are either vacant or end up being
considered by businesses that are not becoming of the city.
Through community feedback and Council guidance, there was a need to address the
area on Davis Boulevard between Smithfield Road and 820 as well as Boulevard 26
between Harwood and 820.
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The State allows cities to consider special districts called Empowerment Zones where a
city can remove procedural, financial and physical barriers that prohibit quality business
development and investment from occurring. This specific zone is 121 commercial
properties across 130 acres, all built in the 60s or 70s. They either have a poor layout,
may be under parked and/or are deteriorating physically.
On October 9, City Council authorized a Neighborhood Empowerment Zone called "NRH
EZ Streets" where City staff will market the zone's benefits that include expedited review
of plans, permitting and inspections, city fee waivers, customized grants to assist with
property improvements, and variances to code to accommodate property constraints.
Participating projects must provide evidence of the following:
• A capital investment of at least 25% of the total market property value,
• Advancement of high-quality development or redevelopment,
• Effectively leverage private investment,
• Existence of a financial gap where project could not take place without
participation, and
• Furthering community revitalization.
Participating projects must provide evidence of the following:
• Contains 70% masonry,
• Best efforts to comply with design guidelines within existing development policies
adopted by City Council, and
• Site plans, including any building, landscape, lighting and engineering plans, must
come from a certified professional.
There are some uses that will be prohibited from participating.
G. ADJOURNMENT
Chairman Wood adjourned the meeting at 1.04 PM.
Mark Wood, Chairman
Craig Hulse, Secretary
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