Wednesday, January 14, 2015

A Tale of Two Developers


Last night was an interesting evening concerning the tale of two developers.  One developer came to us and wanted approval of a “W” hotel in our city.  Now the piece of property that the hotel went on was a terrible location but the developer did the heavy lifting, and through diligence got the job done.  Earlier, since he had the zoning, there was no need for him to come to us for a Planned Development, but on his own, he has established three quality businesses that front the “W” hotel.  That is the way to effect change for the good in Arlington.

The very next case was one known as Champion’s Park.  This is the property on the east side of Collins and the north side of I-30.  This developer has been trying to put together a Planned Development for the last two years.  Two years he came to us with the same plan.  Last year he came to us with the same plan.  This year he came to us with the same plan.  He could have come to us two years ago and requested a change of zoning and it would have been approved without issue.  But he didn’t.

His plan is to develop this property in two phases.  Phase one is eight pad sights.  Of these eight locations, the developer doesn’t know what business will be put in the development.  He has no letters of intent signed by anyone.  The second phase of the operation consists of two large pad sites.  Although Arlington is in need of hotels, this developer can’t find a hotel to go on one of these sites.  I find this odd because the first developer accomplished this at a much less desirable location.  So this developer has no clue what will go in any pad site in this development and wants approval of his development plan.  The developer did admit that the normal template for shopping centers is to secure principals and then fill in the subsequent businesses.  I stated that he was putting the cart before the horse, and he had no horse.  His plan is tantamount to building a Footlocker and hoping a Dillard’s shows up.  Others may think this is how Arlington should conduct business but I am less convinced.  If you want me to take the responsibility of putting something in a gateway property, then at least tell me what it is.  I deserve that courtesy.  I want to apologize to the thirty constituents that were at the meeting last night in support of this project.  I hope that your support is well warranted.  I however, want something more than hope for North Arlington.  That is why I could not support this developer.   I hope you recognized last night what my representation of your best interest  looked like.

12 comments:

  1. Am I reading this correctly that north Arlington is getting a W hotel?

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  2. This hotel will be at the corner of Ballpark and Lamar behind the BFF Asian Grill and Rio Mambo. It is a derivative of the W called the Aloft. It will be exactly like a W but a little smaller, 136 rooms. This is a very nice product for North Arlington. Mr. Haddad expressed some plans for a larger hotel in the future.

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  3. Thanks for the response, Mr. Parker. I've seen the construction behind the BFF and thought it was just another small hotel brand. I agree that the Aloft will be a nice addition to the area. Are the BFF and Rio Mambo apart of the planned development or is there something else going in with the construction of the hotel?

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    1. Nothing else. There is land to the east of the development, but it is not owned by Mr. Haddad.

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  4. The Aloft would not have located at this location without the adjacent restaurants and other retail Mr Haddad developed over the past 2+ years. During the public meeting, the representative for the hotel even stated how convenient is will be for his guests to walk over to the restaurants. There is nothing at this location "yet" to entice a major flag hotel to locate on this site. Once the first phase of Champions is developed, the nucleus will be in place to attract such users. Your stated assertion as to what uses come first in real estate development is totally flawed.

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  5. Mr. Cavendar I'm sorry that you feel that way. But Neiman Marcus is relocating to the Clear Fork development from the current Ridgemar location. There is nothing out there now, but Neimans will assure quality in that development. So to not have any stores at all, much less zero anchors does not speak well for the development. Mojy did it right. We had some assurance because we knew what was going in. We approved an Aloft hotel not another duplicate of the secondary hotels we already had. I get that this is your project. I get that Mr. Moritz is part of this. What I don't want, and I have no assurance that it will not happen, is a Hoffbrau Steak House, or a Keg. Both of these were mentioned by the developer prior to his corrected view on QUALITY. He has sense changed his tune. When the first Chinese Buffet goes in there those citizens that you brought down are not going to go to you and complain. They will come to me and ask where is the quality that was promised. I get the $300 sq/ft building cost. But I also understand cash flow, and if you don't get what your asking then the price will be lowered till it's profitable.
    The city will be contracting to put an office park across the street. We know what will go in there. We don't know one business that is going into your project. That's the flaw.

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  6. I have never, ever mentioned hoffbrau or keg. our goal for quality has been the same since day one. same goal, same tune. and, Mr. Parker, we hope to make you and the citizens of North Arlington proud.

    Jay Grogan

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  7. Mr. Grogan I respect this source very much, since he is as high in the city as one can get. I believe you also stated that Arlington is not ready for high end development so you are offering a step below that level of development. This is why the issue of trust is so important in this particular location. We don't have a great deal of land left in Arlington. That is why this piece is so important.

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  8. Mr. Parker – We really appreciate your transparency on this issue as well as the other issues that you present in your blog, and in my opinion, many readers and few comments suggest a lot of agreement with your positions.
    Concerning Champions Park, there appears to be more to the story than the original blog posting. Even though it makes interesting reading, I struggle to understand your role in this matter. Specifically, I like that you’re a voting member of a small set of elected officials looking out for our best interest and realizing the utmost importance of developing this “gateway” property in the most advantageous manner. However, although you portray this developer as somewhat inexperienced, or a dreamer with a strategy of hope, I ask you what you can offer to help out. How can you help the developer, help us? Can you offer any constructive, achievable advice, or perhaps introduce the developers to work jointly with proven successful developers that have the wherewithal to create a development with the caliber of businesses that contribute to elevating the North Arlington environment? These questions are meant to be constructive, not critical.
    Thanks,
    Rob L.

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  9. Ms. Lane, I do not feel this developer is inexperienced in his trade. On the contrary he has skins on the will in places like Plano. We have a different dynamic here in Arlington. Developers come and go in my office on a weekly basis. Some people I can trust. Others have yet to earn my trust. What I have to weigh is what is best for the city of Arlington, with each and every Planned Development that is presented to me. Give me some substantial idea of what it is that will be put there.
    In the last two years there has been several substantial projects that were put on less valuable pieces of property. Arlington doesn't have much land left and although the words quality and trust were thrown around the Council there is no reason to believe that this is a two way street. Yesterday's meeting concluded with some improvements. Drive throughs were limited to three for the project. 2 in phase 1 and 1 in phase 2. There are no drive throughs in Sundance Square. Quality means one thing to a developer and another to a citizen. I have stated my reservations continually and I side with the citizen's concerns that we don't want more of the same. We want something better and different. But I fear the developer is going to give us more of the same in this prime location. Another Starbucks and another Bank. I won't put my name on a blank check to a developer, and then when it's all done have you look at me and ask, "where is the quality that you promised." I would much rather be in a position to look Mr. Grogan in the eye and say, "I'm sorry you were right, you stood by your word." And believe me I would much rather do the latter.

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    1. Comparing Sundance Square in Fort Worth with Arlington is ludicrous. Fort Worth city management has a history (at least recently) of preserving the city's historical character and augmenting it with projects people WANT to visit. Arlington's management has for many years done its very best to DESTROY whatever character existed, replacing it with apartments.

      The demographics of this city will not support the type of development you apparently desire, a direct result of previous (and current) central planning mismanagement. Neighborhoods devoid of character and overrun by ubiquitous Section-8 apartments are losing residents with higher incomes and the ability to patronize higher-end retailers. These people are/have moved to Plano, Southlake, Colleyville, etc.

      Instead of encouraging the type of zoning that would attract a corporation to build a campus or large office building on this site, (bringing better-paying employment with it) it's the same old, same old. Retail. Restaurant. Lincoln Square, with which this development will be directly competing, back in the day was a destination of choice for many shoppers. Alas, now mostly restaurants and bars, most of the unique niche retailers have long since closed or moved away. I get why city management wants bars and restaurants, for the tax receipts. (higher taxes on liquor)

      With all the subsidized apartments in the vicinity, I would hazard a guess that within five years, if this development is completed, there will be at least one dollar store or similar discount entity occupying a space.

      The only real unknown at this point is how much of our public tax money you and the rest of the council will be throwing at this developer.

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  10. I wasn't around then but please give me the location of a valuable historical building that is now an apartment. Your argument has to do with the fact that we have too many apartments and I couldn't agree more. The problem is that the P & Z and Councils of old, made this bed and we are trying to correct this problem with projects like the apartments on Lamar. It is slow going and I can't tell you how many developers come into my office and want to build more apartments.

    I think that I have stated my reservations about the Champions Park project as a continuation of more of the same. No increase in quality and not one indication that something better will be built there. Your argument that we should build office space for better paying jobs is a good one. That is why the city bought the property directly across the street. To build office and entice better paying jobs. I asked these developers to make the same commitment and they wouldn't do it. (See evening video) They have no plans for Phase II and can't tell you who is going into Phase I. If you didn't get it the first time, I was the only vote against this project. I want better for Arlington, and that's why I voted no on this project.

    I only brought up Sundance Square because the developer was touting quality and was going to create a venue where concerts could be played etc.. I personally don't see drive thru's in a place where concerts are played. Yet this project could have as many as 3. The property itself is so centrally located that anybody could put anything there in a retail pursuit and be successful. I don't want just anything there.

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