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Denton City Council
2/6/24
Welcome to Ultraground. We track tax credits for you.
Today’s report is a bit different - these are all 9% tax credit applications that needed Council approval. 2 were approved and 2 denied. 1 had an important discussion, which we detail below.
Note: some of these will need to return for rezoning approval.
February 6, 2024
District: 4 | Southeast Denton
90-Unit Multifamily | 3300 Sundown Blvd | Approved
98-Unit Senior Living | 3980 State School Rd | Withdrawn
District: 2 | North Denton
90-Unit Senior Living Adaptive Re-use | 2229 N Carroll Blvd | Approved
District: 1 | Central Denton
110 Unit Multifamily | E Sycamore St & Industrial St | Withdrawn
You saved: 5h 35m
DISTRICT: 4
Stella Haven 3300 Sundown Blvd
Southeast Denton | 1.712 Acres | 90 Units | Approved
O-SDA Industries’ Stella Haven 9% Tax credit application split the Council in their sentiment on affordable housing in Denton.
This project drew a line between Council members. 2 Council Members supported this type of product in this location and 2 sided with the neighbors in opposition. The Council Members in opposition pledged to the neighbors they will be “on the lookout,” making sure the project passes all of the planning “gates.” Denton’s Mayor Gerard Hudspeth was part of this group.
In Support:
Council Member Brandon Chase McGee strongly supported affordable housing.
‟It will be ludicrous of me. It will be inauthentic for me to say that I'm going to vote no because somebody else has it (housing), but no one else is allowed to have an opportunity to get it.
‟The biggest problem in this Country now, in terms of discrimination, is housing. It’s housing.
Council Member Vicki Byrd questioned common associations of affordable housing.
‟So what I'm going to do is support this because we need the housing.
‟We’re a very caring city. But it's just always something about these apartment complexes. I don't know what it is about connecting apartment complexes with crime.
In response to Council Member Byrd and McGee's impassioned speeches on affordable housing's link to discrimination, Mayor Hudspeth stated: “Let's try to trim back the soliloquies.”
In Opposition:
The Denton Mayor opposed the resolution as he flagged the two driveways exiting onto Teasley Lane. Hudspeth doubted claims from the developer about failed outreach attempts to the neighborhood association.
‟I'm absolutely going to be hawk on that on the traffic study. Irrespective of who's living there. You got to be able to get out and you have two driveways going out on Teasley.
Council Member Paul Meltzer also expressed reservations.
‟I’ll be on the lookout to make sure that all the other gates that we are watching for.
Does the traffic make sense? You know, is the school question answered? Is the green space and the tree preservation meeting everything we, as a community, want?
“Increased traffic will greatly impact our neighborhood,” warned local resident Vince Baugher, citing congestion concerns, especially near the area where children play. Fellow homeowners echoed anxieties about crowded schools, insufficient parking, and crime stemming from “all these extra people.” One neighbor even visually referenced the development marring his sunset view and towering over surrounding houses.
The intensity of the backlash against Stella Haven surprised some Council Members given how “the immediate community around this does not support it,” as commenter Kate Bean summarized. Residents surfaced doubts over whether Stella Haven could meet city planning standards on issues like green space. Homeowner Charity Krieger painted a dire portrait of the complex exacerbating already ”incredibly difficult” rush hour gridlock and school commutes.
While no one dismissed affordable housing needs outright, residents issued demands ranging from traffic remediation to access restrictions on their private neighborhood amenities. Homeowner Sandy Norton urged Council - “Don’t give them an extra point” in the tax credit application since they'll likely just “fail” planning approvals anyway.
Ultimately, Council approved the resolution 6-1, advancing Stella Haven’s tax credit pursuit.
Developers:
O-SDA Industries Megan Lasch Phone: (830) 330-0762 Email: [email protected], Across Development, and AZ Morse Development
Denton Affordable Housing Corporation Jacob Moses Phone: (940) 484-7048 Email: [email protected]
Application: Stella Haven Application
Project Plans: Stella Haven Plan
DISTRICT: 2
Cairn Point Carroll 2229 N Carroll Blvd
North Denton | 4.994 Acres | 90 Units | Approved
The Vecino Group’s Cairn Point Carroll is an adaptive reuse of a historic care center into affordable elderly housing. This enabled State Historic Credits of $2.22M.
Here are some more details on the application:
Financial | Cairn Point Carroll |
|---|---|
Construction Loan | $17,987,000 |
Development Costs | $20,108,708 |
Land Acquisition | $2,000,000 |
Soft Costs | $1,684,000 |
Total Tax Credit Value (10 Year) | $17,390,708 |
Developer Fee | $2,286,748 |
Total Qualified Basis | $19,851,146 |
Credits Supported by Eligible Basis | $1,786,603 |
Credit Request | $17,390,708 |
Interest Rate (Permanent Period) | 7.95% |
Subtotal Financing Cost | $1,565,416 |
Annual Debt Service | $225,560 |
Operating Expense | $718,538 |
Rental Income | $83,117 |
Developer: The Vecino Group Rick Manzardo Phone: (417) 861-6212
Email: [email protected], Val DeLeon Phone: (512) 417-0985 Email: [email protected]
Application: Cairn Point Carroll Application
Project Plans: Cairn Point Carroll Plan
DISTRICT: 1
The Quad NWC of E Sycamore St & Industrial St
Central Denton | 0.976 Acres | 110 Units | Withdrawn
One unique aspect that The Quad had was a FHLB Dallas Grant for $2M. Here are some other details on Matthews Southwest’s pulled 110-unit product.
Financial | The Quad |
|---|---|
Mortgage Loan | $19,500,000 |
Total Financing | $36,024,120 |
Development Costs | $36,024,120 |
Project Budget | $36,024,120 |
Soft Costs | $1,603,262 |
Total Tax Credit Value (10 Year) | $18,798,120 |
Developer Fee | $4,067,341 |
Total Qualified Basis | $26,910,055 |
Credits Supported by Eligible Basis | $2,421,905 |
Credit Request | $2,000,000 |
Interest Rate (Permanent Period) | 7.25% |
Depreciable Bldg Cost | $35,132,085 |
Subtotal Financing Cost | $2,764,987 |
Annual Debt Service | $688,233 |
Operating Expense | $739,999 |
Rental Income | $1,531,467 |
Developer: Matthews Southwest Victor Smeltz Phone: (504) 884-0545
Email: [email protected]
Owner: First Unified Methodist Church Inc. (Majority), MSW (Non-majority)
Application: The Quad Application
Project Plans: The Quad Plan
DISTRICT: 4
Legacy Oaks Senior Living 3980 State School Rd
Southeast Denton | 5.56 Acres | 98 Units | Withdrawn
Jack Traeger withdrew his 98-unit product after he put in the work for a successful relationship with the Oakmont II HOA and Wimbleton Village HOA.
The development cost was $24M.
Developer: Legacy Multifamily Development LLC Jack Traeger Phone: (214) 244-4725 Email: [email protected]
Application: Legacy Oaks Application
Project Plans: Legacy Oaks Plan-
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