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HomeMy WebLinkAboutEDA 2025-07-30 Agendas t4RH CITY OF NORTH RICHLAND HILLS ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 WEDNESDAY, JULY 30, 2025 REGULAR MEETING: 11:30 AM A. CALL TO ORDER B. PUBLIC COMMENTS C. ACTION ITEMS C.1 Approve Minutes of March 6, 2025, Economic Development Advisory Committee Meeting D. DIRECTOR'S REPORT D.1 Update on Local and Regional Economic Trends D.2 Development Trends (commercial, residential, multi-family) D.3 New and Upcoming Business Report E. PROJECT AND PROGRAM UPDATES E.1 2020 Street Bond Project Update E.2 2025 Capital Program Advisory Committee E.3 City Point Development EA Davis Boulevard/Boulevard 26 Neighborhood Empowerment Zone E.5 Restaurant Reward Program Debrief E.6 Update on City Efficiency Studies & Six Sigma Training F. FUTURE AGENDA ITEMS Wednesday, July 30, 2025 Economic Development Advisory Committee Agenda Page 1 of 2 F.1 Opportunity To Bring Forward Items For Future EDAC Meetings G. ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, July 25, 2025 by 3:00 PM. Craig Hulse Director Economic Development 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 30, 2025 Economic Development Advisory Committee Agenda Page 2 of 2 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 March 6, 2025 The Economic Development Advisory Committee of the City of North Richland Hills, Texas, met on the 6th of March at 11.30 a.m. in the Council Work Session Room. Present: Mr. Mikhail Orlov GRITR Mr. Jay Garrison JA Garrison & Associates Mr. Mark Wood Howe/Wood & Company Ms. Mindy Monroe Legend Bank Ms. Darlisa Diltz NTEEC Mr. Curtis Nash Grace's Tiers Bakery Ms. Stephanie Seybert Seytec Mr. Joshua Fichter Five Star Ford Mr. Jay Redford CBRE Staff Members: Mr. Craig Hulse Economic Development Director Ms. Elizabeth Copeland Economic Development Analyst Ms. Kelly Vaughn Administrative Secretary Ms. Paulette Hartman City Manager Ms. Cori Reaume Director of Planning A. CALL TO ORDER Chairman Wood called the meeting to order at 11.37 a.m. B. PUBLIC COMMENTS No citizens present for public comments. C. APPROVAL OF MINUTES OF MARCH 28t", 2024, MEETING APPROVED A MOTION WAS MADE BY MR. GARRISON, SECONDED BY MS. MONROE TO APPROVE THE MINUTES FROM August 7, 2024, MEETING. MOTION TO APPROVE CARRIED 7-0. D. ECONOMIC DEVELOPMENT DIRECTOR'S REPORT March 6, 2025 Economic Development Advisory Committee Meeting Minutes 1 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 Mr. Hulse asked the members of the EDAC council to give updates on their respective businesses. Joshua Fichter, General Manager of Five Star Ford, discussed the challenges of the automotive industry, including the impact of tariffs and installing electric charging stations. Mark Wood mentioned the high demand and costs of land for development, with multi- family projects expected to be flat or down slightly in 2025. Mikhail Orlov discussed the softening in the consumer goods retail space and the impact of tariffs on pricing and consumer behavior. Jay Redford from CBRE discussed the hot industrial market and the projected downward trend in multi-family cap rates. Mindy Monroe from Legend Bank discussed the regulatory changes that have benefited the banking industry and the challenges in the housing market. Stephanie Seybert from Seytec spoke of the uncertainty due to tariffs and raw material availability but mentioned the company's growth and hiring plans. Curtis Nash from Grace's Tiers Bakery shared the real challenge of rising egg prices. Despite challenges, the bakery is experiencing growth. Darlisa Diltz, with Foundations Entrepreneur Development Company, talked about the challenges of entrepreneurship post-pandemic and the importance of educating the community on the process. Mr. Hulse emphasized that the committee's focus is on being the standard bearer for economic development in operational excellence. He also referred to the city's social media engagement as responsive, transparent and informative to our community. Paulette Hartman, City Manager, provided an update on the city's efforts to focus on efficiency and process improvement, specifically the implementation of Lean Six Sigma training for many of the City Staff. Mr. Hulse discussed local and regional trends over the past year. NRH Unemployment is close to historical lows and consistently 0.5% less than DFW and Texas. All-time high was 12% in May 2020 and all time low was 2.1% in 1998. The inflation in DFW is down from 5% last year, however, it is up 22% over the past 4 years. E-commerce is up 7.5%, March 6, 2025 Economic Development Advisory Committee Meeting Minutes 2 outpacing brick and mortar. Local brick and mortar retail is up 1.9%. Full-service restaurants are down 1.2%. Brick and mortars are not keeping up with inflation across the United States. Federal Funds rates are down 1% from a year ago but remain elevated as the rate was 0% just 3 years ago. Current 30-year fixed mortgage rate is 6.8%. Texas Consumer Confidence was up 10% in December and currently Texas is 14% higher than the rest of the country, which is typical. D.2 Development Trends (commercial, residential, multi-family) Interest rates, inflation and construction costs took a toll on FY 2023,with a slight rebound in FY 2024. City Point is responsible for most of the new single family in FY 2024. Since NRH is 90% built out, infill development and "refill" or redevelopment is taking place. City staff and the City Council processed 70 new development applications over the course of 2024 alongside 400 new construction permits, 226 of which were single-family homes. We welcomed 92 new businesses for a net increase of 45 businesses. Commercial permits were the same as last year, with the large majority being commercial remodels. The single-family housing market is beginning to slow, as indicated by longer days on the market and a slight decline in price per square foot. In ZIP code 76180, the median list price has risen by 4%, though this increase is largely driven by activity in the City Point area. Meanwhile, 76182 has seen an 8% decrease compared to the previous year, primarily due to softening in the higher-end segment, especially homes priced over $500,000. Despite these shifts, North Richland Hills continues to maintain a higher value per square foot than Tarrant County overall. The development community continues to discover areas for growth, specifically land that is underutilized or previously out of economic reach. Mr. Hulse pointed out that we have 7 active subdivisions alongside 7 pending subdivisions that are scattered throughout the city. These figures include detached single family and town homes, they do not include multi-family. The number of platted lots is 770, which is a 20% decrease from the previous year. Multi-family vacancy rates remain low and at traditional levels while rents have remained flat over the last two years, still at 25% higher than 2021. There is a clear difference between rental rates and age of rental property as the average rent for a unit built before and after 2010 is $1,400 and $1,700 respectively. Local commercial real estate continues to enjoy renaissance and uses of retail space. NRH enjoys a continued low retail vacancy rate. This does not include the former Big Lots. Offices are struggling nationwide as work from home continues. The former Stericycle is now BISD Administration, and the former Santander building remains dark. D.3 New and Upcoming Business Report March 6, 2025 Economic Development Advisory Committee Meeting Minutes 3 North Richland Hills typically welcomes just under 100 new businesses a year into the community and 2024 was a good year for the city. Some of the noteworthy businesses that have recently opened or are about to open are as follows: Caddo Office Reimagined, Catapult Adventure Park, Marble Slab, Jason's Deli, Five Guys, Einstein's Bagels, Starbucks on Davis Blvd., Tropical Smoothie Cafe, Malibu Jacks and Peppa Pig. Soulman's BBQ is coming to 6000 Rufe snow, the former Boston Market. Daiso is coming to 9147 Boulevard 26 behind McAlister's and Red Hot& Blue. This is a Japanese discount store that is a one stop for all your needs. Everything from home d6cor, cleaning products, to snacks, toys and decorations. 1611 Golf Bar & Grill is at 6001 Parker Rd at Boulevard 26. This is your local virtual golf country club mixed with your favorite sports bar and craft kitchen. E. PROJECT AND PROGRAM UPDATES EA Street Bond Project Update In 2020, with 79% voter approval, a $49 million bond package for the improvement of 27 streets was passed. Together with the bond package, Tarrant County participated with $1.8 million and at the time the Federal Government assisted with a $4.2 million grant from the Economic Development Administration (EDA). There are conversations happening now as to whether to consider another bond package for the future for additional streets. E.2 City Point Development Homewood Suites will be coming to City Point. They are an upscale innovative brand that offers travelers a unique approach to longer stays by allowing guests to remain in their routines while on the road for business or leisure. Across 2 acres, there will be 102 rooms, 4 floors, a meeting room, fitness center, lobby bar and outdoor pool. 42% will be available for extended stay (7-day max). The estimated cost is $19.8 million, and the construction timeline is 18-24 months. E.3 Davis Boulevard/Boulevard 26 Neighborhood Empowerment Zone The Empowerment Zone was created 2 years ago. Currently we are working on multiple projects. This program removes procedural, financial and physical barriers that prevent quality business development, interest and investment. 7921 Boulevard 26 used to be a dialysis center. The building is over 40 years old. This property is receiving new sidewalks to reach the building from the street, new backlit signage, new facade along with masonry columns, new paint, metal coping and parapet extensions. The project cost $290,618.24 (not including interior finish out improvements) They have received a $50,000 grant to offset portion of site improvements, as well as city fee waiver estimated at $7,124. March 6, 2025 Economic Development Advisory Committee Meeting Minutes 4 5501 Davis Boulevard has building improvements that include a new sidewalk and xeriscape along Davis in front of the property, parapet extension, stone columns, stucco over brick, new paint and elimination of windows. 5750 Davis Boulevard will be receiving a new facade, a masonry veneer sidewalk on Davis, new paint and stucco over brick. E.4 Restaurant Rewards Program Mr. Hulse discussed the success of the Restaurant Rewards Program, which offers customers 5% cash back on their receipts from local restaurants. The program is an opportunity for the city to support our 189 food service businesses. The program rewards food service customers, both citizens and those outside the city. It also leverages promotional funds to spur local sales tax revenue. Council approved a promotion of an increase to 10% redemption beginning on Valentine's Day. Since then, the program has seen significant growth, with 313 new users and doubling transactions. Our citizens have spent almost a quarter million dollars since the program launched, with many businesses reporting increased sales. F. FUTURE DISCUSSION ITEMS The invitation was offered for committee members to ask questions or to suggest specific topics that they would like to address for future meetings. The committee discussed the potential for future reports on Six Sigma and efficiency studies in city departments. G. ADJOURNMENT Meeting was adjourned at 1:07PM. Mark Wood, Chairman Craig Hulse, Secretary March 6, 2025 Economic Development Advisory Committee Meeting Minutes 5