The city of Dallas needs cash to cover a $3 billion deficit in its police and fire pension fund and needs advice on how to reuse old city buildings and whether to buy or sell land. Therefore, a request was made to the Economic Development Corporation. help.
The issue of city-owned property came up during the budget process when Ward 1 Councilman Chad West, who chairs the Government Performance and Financial Management Committee, asked about city assets. At the time, few people knew that Dallas owned approximately 50,000 acres of land.
“There are a lot of expenses that need to be paid in the future. [police and fire pension]” West said. “We have had many conversations with city managers and city staff about how to utilize city real estate in the best possible way to do that. We also desperately need housing, parks and green space. I am.”
The key going forward is determining what assets are and what needs to be purchased, West said.
So they brought in big weapons from EDC.
Economic Development Corporation reviews city's real estate portfolio
Dallas Real Estate Office is a division of Public Works. It currently operates in a “reactionary” manner rather than pursuing deals. GPFM recognized the need for more strategic planning, West said.
EDC Board Chairman John Stevens said the company is hiring its first CEO and is already reviewing the city's “real estate book.”
“Our first challenge at EDC is to actually do the marketing for the city of Dallas, encourage investment, attract business and grow,” Stevens said. “One of the conversations we've had with the city manager is to look at properties that the city owns and work with them on whether it provides economic development opportunities or other goals that the city manager has. We are actively working on this, but we are only just getting started.”
In response to a question at the October 23 GPFM meeting about how the EDC would value land for potential housing, Mr Stevens said: ”
“What we do is evaluate the land, the buildings, etc. to understand the value and come up with alternative uses,” he said. “We intend to present them to the City Manager and City Council with the intention of encompassing all of the considerations the City has for all of its goals.”
Ward 5 City Councilman Jaime Resendez said he wants to make sure the city is “looking at the housing side and the green space side.”
“Those two things impact economic development,” he said. “If there was a way to make the analysis a little more extensive, that would be great.”
He added that it is also important to look for land that the city can acquire.
Stevens, who attended the GPFM meeting with former Dallas City Council member and EDC board member Alan Waln, said he plans to begin making recommendations to city officials in the first quarter of 2024.
Highest and best utilization of municipal real estate
Dallas department heads annually review the properties under their jurisdiction to determine whether the buildings are needed for future projects or could be considered surplus, said Robert Perez, assistant city manager. Said it was necessary.
“This year we’re actually going to go a step further and look at not just the land, but the facilities,” he said. “We would like to utilize any office space that is currently unused. We will look at all of that and develop a master plan on how to utilize the facility.”
Perez said Oak Cliff Municipal Center employees are currently being moved into space along Stemmons Freeway. Additionally, employees working at Hensley Field will be reassigned as the project is developed.
Chief Financial Officer Jack Ireland acknowledged that the city's real estate portfolio came up in discussions about how to close the gap on the $3 billion police and fire pension deficit.
District 9 City Councilor Paula Blackmon said she wants the EDC board to consider the highest and best use for city-owned property.
“You’re going to need cash,” she said. “I think you have to analyze everything. If the result is, 'Not this, not now,' that's fine, but saying, 'I have to take this off.' there is no. [the list]” is probably not a good practice. You need to maximize either your lease or sale and get the highest and best price. ”
District 12 City Councilwoman Carla Mendelsohn pointed out that in recent years, it has been up to the city administration to decide what to do with disused city buildings like OCMC.
“Who is responsible for actually monetizing or conserving land as needed, whether for parks, economic development, or other purposes?” she asked.
Perez said the city manager also does so based on recommendations from staff.
District 2 City Councilman Jesse Moreno said he would like the Economic Development Corporation to consider conducting a needs assessment.
“Some of these facilities are in disrepair and will cost a lot of money to continue operating,” he said. “At the end of the day, these conversations really excites me as we start to consider whether these buildings are going to be renovated, consolidated or relocated to a completely new location. I think it’s an opportunity, an opportunity to get more housing, more workforce, more green space.”
