I was excited about attending the first community meeting for the proposed redevelopment of the southwest corner of Preston Road and Royal Lane. I was not alone. Three members of the City Plan Commission and two members of the City Council were in attendance, including Gay Donnell Willis, who represents District 13, where the project sits.
Why was I anticipating it? The zoning game has changed. For the first time, developers have significant leverage following the passage of Senate Bill 840, which allows the construction of multifamily housing on land zoned for office, commercial, retail or warehouse uses.
The rules of engagement with neighbors are different, too. It’s no longer necessary for neighbors to consent to change. Apartments can be developed on commercial property as a matter of right.
At one time, North Dallas was arguably the nicest community in the state. As the child of a council member, I attended countless ribbon cuttings and groundbreakings in North Dallas in the late 1970s and 1980s. It was a beating. If you are the child of an elected official, they dress you up like a doll, and require you to behave like an adult.
North Dallas was on fire then. It was affluent and happening. It embodied the ethos of the television show Dallas.
Opinion
Those days, like the show, are long gone. All the best things being developed today are being done north of Dallas — not in North Dallas. People in North Dallas have a lot of nostalgia for when the area was great; they remind me of fans of the Dallas Cowboys.
The Preston-Royal site was devastated by the October 2019 tornado. It is on the tax rolls for around $9 million. This amounts to only $63,346 in city taxes and $90,090 for the school district. A newly hired police officer will cost the city about $80,000, and a new teacher $65,000. So, as it is, this site only pays for one teacher and one police officer — that’s it for a premier corner. Remember these numbers, your wallet is going to quiz you on them later.
Let’s make a deal
There are only two choices regarding the redevelopment of the site. Behind door No. 1: Burk Interests and Greenway Investment Co., the owners of the property, have the right under the new state law to build 650 apartments. These would be market-rate units that would likely rent to young professionals and service industry people dying to be centrally located. There would be no problem leasing these — look no farther than Preston Hollow Village’s three different buildings with distinct price points. There would also be retail. This would be a wood-frame construction that my firm and various other industry professionals estimate at $180 million — good, but not good enough. This is an A site; a B project won’t do.
This option would create $1.25 million in city taxes and $1.78 million for the Dallas ISD annually. That’s 28 teachers and 15 police officers.
Behind door No. 2 is, in my estimation, an outstanding, expensive project that positions one of the corners of Preston-Royal for the future. Maybe it’s a little too tall, but only a little. The developers plan a 28-story building containing a luxury hotel and 100 for-sale condos. These condos would be 3,000 square feet or larger and sell for $5 million each. Repeat, $5 million. A small, expensive subdivision in the sky. Lots of chances for the Jeffersons to move on up — and spend a bundle doing so.
The developers plan another smaller tower at 22 stories with luxury apartments. I believe these would largely be rented by people over 55 — many who used to own homes nearby, now renters by choice. See all the Uptown and Oak Lawn construction to substantiate this trend. These units will be expensive.
The proposed plan commits more than 10% to open space. There would also be restaurants, retail and two five- or six-story office buildings. The total investment for this project would be $650 million.
This would result in more than $4.5 million in taxes for the city, and almost $6.5 million for the school district. That’s about 56 new police officers and 100 teachers. There would also be significant hotel occupancy tax and sales tax.
The creation of new for-sale and luxury rental, playing to empty nesters, serves another purpose of turning over nearby homes for young families. This also assists area schools.
This is how you build a city, by using the best real estate for the best projects.
Renter intolerance
At the meeting, when neighbors were told there would be renters on the site, the last bastion of public discrimination was on full display. Who would think that many people still feel good about denigrating people for not owning a home?
Opponents resorted to catcalling, shouting and hooting. One person said, “We don’t want these transient people.” Another woman stridently went to the microphone and declared, “They don’t have the same investment in the city.”
This kind of discrimination is not allowed in the densest part of the city, Oak Lawn. The Oak Lawn Committee has done a tremendous job ensuring that everyone’s home is treated with dignity. They also always conduct meetings with dignity, even when a project is controversial. Maybe the group has time for tutorials.
This is why the state has had to step in; there are too many NIMBYs. City councils need political cover to grow their tax base.
Why we can’t have nice things
I knew going in that people would be screaming for the nonexistent door No. 3. That’s where NIMBYs hide their preference, which is no change. They find grievances, backed by anecdotal evidence, to ensure things stay the same. This strategy worked prior to SB 840.
I was certain that I’d hear it’s too tall and that there would be too much traffic. I was right.
I’ve written about how scared people are about height. But taller buildings often have better architecture and presence. And height isn’t the same as bulk. In a world now governed by SB 840, a developer can cover significantly more of the site (20% more), up to 54 feet in height.
I’ve stopped listening to people when they cry about traffic. Everybody thinks their traffic is worse than anywhere else, and NIMBYs believe they have expertise on traffic because they have a license to operate a motor vehicle. I’ve got a marriage license, but I am certainly no expert at it.
The facts are clear based on a traffic study from a registered, professional engineer from one of the most esteemed national firms: The proposed project generates 45% less traffic. The top engineer at the city, who holds a doctorate in the field, was in the audience; he didn’t budge. It’s math, not a matter of opinion.
Another common ploy was on display — among my favorites. One woman claimed, “It’s a great design that would work really well at Valley View.” She worked on that zinger all day; somewhere else is where all nice projects live. We’ve been trying that method since the 1990s, and it works. Those places are called Plano, Frisco and Prosper. Head north on the tollway and you’ll find these places with smooth, safe streets and lots of sales tax. Oh, and young, happy families using the public schools.
Nothing is more divisive than a nice project. I don’t understand this, but it’s true. NorthPark Center could not get done today: too much traffic and people visiting from outside the neighborhood. It would need to be somewhere else too — like Valley View.
Mob censors
What has surprised me, however, was the aftermath of the meeting. I interviewed people who have since called and clawed back their favorable comments. One said she could not be quoted because her children would be impacted, even bullied, at school.
One retail merchant at Preston Royal said, “I fully support the project, but can’t let anyone know.” This retailer went on to say, “I think it would be great. The land needs something done with it. It’s been an empty wasteland.”
When Dallas passes on high-value projects it hurts everyone. Dallas has the highest taxes in the region in part because it passes up sensible development. Likewise, the city has massive debt, and relies on its commercial tax base more than any other major city besides Boston.
A North Dallas that is not interested in an elevated plan that emphasizes public open space and high quality is a North Dallas stuck in the 1970s. Except with a lot fewer ribbon cuttings.
Correction — Nov. 7, 11:55am: A previous version of this column misidentified Senate Bill 840 as House Bill 840.