- DFW Ultraground
- Posts
- Richardson | 1,175-Unit Mixed-use, 173-Unit Student Housing
Richardson | 1,175-Unit Mixed-use, 173-Unit Student Housing
6/18/24 | CityLine East, ATRE Waterview
Welcome to Ultraground. We go to zoning meetings for you.
CPC June 18, 2024
District: 2 | Northeast Richardson
1,175-Unit Mixed-use | SEC Plano Rd & Pres George Bush Hwy | Denied
CC June 17, 2024
District: 4 | Northwest Richardson
173-Unit Student Housing | 1050 Frankford Rd | Postponed
You saved: 1h 8m, 3h 1m
DISTRICT: 2
CityLine East SEC Plano Rd & Pres George Bush Hwy
Northeast Richardson | 62.5 Acres | +1,175 Units | 3,100 Total | Denied
KDC’s CityLine deal remains in a bind, forcing a second hearing at Richardson CPC to add 1,175 units to their existing entitlements. CityLine's current 90%+ residential occupancy, despite 39,000 SF of vacant retail space, signals strong multifamily demand amidst retail challenges. The departure of 11,000 State Farm employees to remote work reshaped the project's office and retail dynamics, pushing KDC towards residential solutions.
‟It's not compelling if you own real estate and at the end of the day you can't develop the entire thing because you don't have enough units…I'm trying to get JLB to partner with us on another multifamily project, and they want to know what's happening with the rest of CityLine…I can't show them a full buildout plan because I don't have the units approved for that. I've got opportunity for office, but you know, when might that come?
The site's Transit-Oriented Development status enhances its appeal for high-density residential projects. However, the Commission's concerns about oversaturation and preserving mixed-use character were reiterated.
‟I think this was sold as a destination…It's very hard to say we did the best we could do when we just put a bunch of wrap here, you know 5-story wrap, and we're done.
‟I think it opens the door for the possibility that the balance of the development does become the 5-story wrap.
The Commission remained divided, with Chairman Bryan Marsh and Commissioner Gary Beach supporting the expanded entitlements. Beach emphasized that there is still significant vacant land for future development opportunities.
‟To me, it's frankly sort of a no-brainer to go ahead and let them go ahead and be able to do business and still have a future for business that we would like to see.
‟I think the request is asking for at least a viable development plan to finish out the entire acreage
After discussion, the commission voted 5-2 to deny the request without prejudice, meaning KDC can return within a year with an alternative plan.
The denial recommendation means that if the request goes to Cty Council, it would require a supermajority (at least 6 out of 7 votes) to be approved.
City Planning Commission 6/18/24
The pandemic put KDC’s CityLine deal in a tight spot, causing them to come back for a 1,175-unit added amendment to their existing entitlements. Walt Mountford of KDC presented a request to amend the CityLine East Planned Development District, increasing the number of residential units from 1,925 to 3,100 and raising the minimum density from 30 to 60 units per acre.
Commissioners split 4-3 against recommending the density increase. In favor was Commissioner Gary Beach who saw the added multifamily entitlements as a compromise to help existing retail.
‟This looks to me like maybe not ideal, but it looks like an opportunity to keep this viable and to keep the retail and commercial aspects capable and producing.
In contrast, Commissioner Michael Keller expressed concerns about long-term implications:
‟Do we want to just say this is where the market is today and the only thing that's going to work today is apartments, which are fairly high density, and I guess lose the opportunity for doing something else in the future?
The developer emphasized the need for more "heads on beds" to support existing retail, noting that 40,000 square feet of retail space remains unoccupied.
Finance
The financial landscape for the project is challenging. Mountford stated that he’s "never seen the financial markets in such condition," noting that banks have "essentially red-lined" office buildings. The development benefits from a $118 million Tax Increment Financing (TIF) arrangement for public improvements, with KDC contributing 21% of the TIF reimbursement to the Silver Light Rail Line.
‟We need to proceed forward with the multifamily and we need to have, importantly, a viable full build-out plan that shows a product type that we're able to build.
Mountford emphasized the new entitlements are crucial for attracting investors and developers to complete CityLine's build-out. He explained that current entitlements, heavy on office space, no longer align with market demands due to post-pandemic work-from-home trends.
Former Mayor Paul Voelker spoke in support of the project but suggested considering live-work, condo, and entertainment options instead of traditional multifamily. Despite some favorable views, The Commission voted 4-3 against recommending approval, but without prejudice, allowing KDC to resubmit without a waiting period if Council chooses to deny it.
Developer: KDC, Walt Mountford Phone: (214) 696-7828 Email: [email protected]
Investor: 3Edgewood LLC, Jordan Mellovitz LinkedIn, Matthew Grens Phone: (847) 346-5121 Email: [email protected]
Staff Report: ZF 24-11 SR
Project Plans: ZF 24-11 Plan
DISTRICT: 4
ATRE Waterview Student Apartments 1050 Frankford Rd
Northwest Richardson | 13.03 Acres | 173 Units | Postponed
The Richardson City Council's anticipated vote on a contentious 173-unit student housing proposal near UTD has been postponed until July 15, 2024. A key member of the applicant's team was unable to travel due to illness, prompting the delay.
The 173-unit student housing product will replace market-rate multifamily plans if approved. That change prompted a conversation on Richardson’s growth needs.
City Planning Commission 5/21/24
Approved
The lack of affordable student housing options near the University of Texas at Dallas (UTD) campus had students attending this CPC meeting. One student said finding housing on campus is “a pain” because of the full existing housing options.
The key differences in the phasing plan for the Waterview student apartment project are:
Original plan: West student housing first, CO dependent on east apartments vertical construction and infrastructure.
New plan: East mixed-use with student housing and retail first, CO issued after infrastructure and sidewalks done.
New plan: West student housing CO dependent on Phase 2 retail and hotel being weathertight.
Despite the need, Commissioners were divided on a proposal to amend an existing planned development to allow purpose-built student apartments. Commissioner Gary Beach struggled with the change from majority market rate to almost entirely student housing, noting it wasn't what UTD wanted or the Commission would have supported a few years ago.
However, other commissioners were swayed by the students' compelling stories. Chairman Bryan Marsh was actually "glad" to see the change to student housing, as he didn't want to see more market rate apartments built in isolation. The Commission was also encouraged that so many students and residents supported the project.
‟I just didn't want to see more market rate apartments by itself out there.
As longtime Richardson resident Andrew Laska summed up:
‟That doesn't happen very often across a major thoroughfare next to a rail station that serves a major international airport next to a major university, okay? You shouldn't say no to this.
The commission ultimately approved it, acknowledging, as Dr. Mazaheri, the owner, put it - there is a "huge demand" and students "need different types of student housing."
You saved: 2h 17m
Developer: Alta Terra, Michael Augustine Phone: (435) 214-7431 Email: [email protected] LinkedIn
Owner: Dr. Michael Mazaheri Phone: (469) 998-3554 LinkedIn
5/21/24 CPC Staff Report: 24-08 SR
5/21/24 CPC Project Plans: 24-08 Plan
6/17/24 CC Staff Report: 24-08 SR
6/17/24 CC Project Plans: 24-08 Plan
Thank you for being a part of Ultraground.
How was this report? |
Reply