Richardson

CPC 7/2/24

July 02, 2024

Welcome to Ultraground. We extract entitlement data for you.

CPC July 2, 2024

District: 1 | Northeast Richardson

410-Unit Mixed-use Rehab | 2000 E Arapaho Rd | Approved

District: 2 | Northeast Richardson

1,175-Unit Mixed-use | SEC Plano Rd & Pres George Bush Hwy | Denied

You saved: 2h 22m

DISTRICT: 1

Block 24 2000 E Arapaho Rd

Northeast Richardson | 25.28 Acres | 410 Units | Approved

Tonti Properties, owner of Block 24 - a 25.28-acre luxury mixed-use product in Richardson, Texas - is seeking to adapt its product to changing market conditions. Tonti aims to carve out 15 units from existing “underutilized space,” reducing the minimum unit size to as low as 380 SF.

Key Proposal Details:

$5,000,000 in property improvements.
Increase the maximum number of units from 395 to 410.
Reduce the minimum unit size from 750 SF to 380 SF.
Allow efficiency studio apartments, currently not permitted.

Adam Auensen of Tonti Properties emphasized their “long-term vision” for the asset. They acquired the asset in 2010 and intend to “self-manage the property” with no third-party management company.

Market-Driven Approach: The proposal stems from Tonti’s own “market feedback” which indicated a hole in the local market:

An unmet demand for smaller, efficient-style apartments that provide a more affordable option.

Developer’s Narrative, Block 24, Tonti Properties

Commissioner Reactions: The City Planning Commission displayed a mix of curiosity and caution. Commissioner Nate Roberts probed about the “unused areas” and the Developer’s data that supported their reinvestment.

Neighborhood Concerns: Not all community members are enthusiastic about the proposed changes. One neighbor starkly characterized the property as “a place of crime and prostitution.” Another resident said they have standing water issues to address before they add anything new.

‟This is a place of crime and prostitution. What improvement really should be done is to put a gate around this block, this dirty block.

Unnamed Neighbor, Richardson District 1

The City Planning Commission ultimately approved the request with modifications, specifying that the 15 additional units are not subject to special conditions of ordinance 3373 and “may include efficiencies.” The motion passed 6-1 with Commissioner Beach opposing.

Developer: Tonti Properties, Adam Auensen Phone: (972) 764-0853 Email: [email protected] LinkedIn

Staff Report: ZF 24-13 SR

Project Plans: ZF 24-13 Plan

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 its existing entitlements. CityLine's current 90%+ residential occupancy is strong despite 39,000 SF of vacant retail space. The departure of 11,000 State Farm employees to remote work reshaped the project's office and retail dynamics, pushing KDC towards residential solutions to attract new investors.

‟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.

Walt Mountford, KDC

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.

Joe Constantino, City Planning Commissioner, Richardson

‟I think it opens the door for the possibility that the balance of the development does become the 5-story wrap.

Michael Keller, City Planning Commissioner, Richardson

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.

Gary Beach, City Planning Commissioner, Richardson

‟I think the request is asking for at least a viable development plan to finish out the entire acreage.

Bryan Marsh, Chairman, City Planning Commission, Richardson

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 City Council, it would require a supermajority (at least 6 out of 7 votes) to be approved.

City Planning Commission 6/18/24

Approval Failed

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.