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HomeMy WebLinkAbout1998.10.08_OEDA Agenda• PUBLIC NOTICE OF THE MEETING OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY TYPE OF MEETING: DATE: TIME: PLACE: Regular October 8, 1998 10:00 a.m. Owasso City Hall Lower Level Conference Room 207 S Cedar, Owasso, Oklahoma Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 11:00 a.m. on Monday, October 5, 1998. Marci outwell, City C erk AGENDA 1. Call to Order 2. Roll Call 3. Request Approval of the Minutes of September 10, 1998 Regular Meeting. Mr Akin Attachment #3 OWASSO ECONOMIC DEVELOPMENT AUTHORITY October 8, 1998 PAGE 2 4. Request Approval of Claims. Mr Akin Attachment #4 5. Presentation of Financial Report. Mr Ernst Attachment #5 6. Discussion of OEDA Mission, Structure, and Strategic Plan. Mr Akin 7. Discussion of Director's Monthly Report. Mr Akin Attachment #7 8. Report from OEDA Manager Mr Hancock OWASSO ECONOMIC DEVELOPMENT AUTHORITY October 8, 1998 PAGE 3 9. New Business 10. Adjournment OWASSO ECONOMIC DEVELOPMENT AUTHORITY MINUTES OF REGULAR MEETING September 10, 1998 PRESENT ABSENT STAFF PRESENT Gary Akin Brenda Lawrence Robert Tobias Brian Smith (out @ 11:30 AM) Jeff Hancock Frank Enzbrenner Sherry Bishop Mark Wilken Tim Rooney Dee Sokolosky Robert Carr Tom Kimball (in @ 10:27 AM) Marsha Hensley ITEM 1: CALL TO ORDER Chairperson Gary Akin called the meeting to order at 10:06 AM and declared a quorum present. ITEM 2: ROLL CALL ITEM 3: REQUEST APPROVAL OF MINUTES OF AUGUST 13 1998 REGULAR MEETING Motion was made by Mr. Wilken and seconded by Mr. Smith, to approve the minutes of the August 13, 1998 regular meeting. The vote on the motion was recorded as follows: Smith - Yes Akin - Yes Wilken - Yes Sokolosky - Abstain Enzbrenner - Yes The motion carried 4 -1. ITEM 4: REQUEST APPROVAL OF CLAIMS No Claims. ITEM 5: PRESENTATION OF FINANCIAL REPORT The report was distributed and given by Ms. Bishop. ITEM 6: DISCUSSION OF OEDA M_ ISSION, STRUCTURE AND STRATEGIC PLAN An open discussion was held regarding the need to define goals for the Owasso Economic Development Authority. Concerns regarding funding and the need for an action plan were expressed. The necessity for a funding mechanism to be put into place with a one, three, and OWASSO ECONOMIC DEVELOPMENT AUTHORITY September 10, 1998 Page No. 2 five year plan were also expressed. Discussion on the need to redefine the structure and embark on a mission statement also ensued. The idea of considering a hotel /motel tax and other tax initiatives were expressed. No action was taken on this item. ITEM 7: CONSIDERATION AND APPROPRIATE ACTION RELATING TO THE VISION OWASSO ECONOMIC DEVELOPMENT COMMITTEE POSITION ON THE NEED TO CONSIDER THE CREATION OF A TAX INCREMENT FINANCING POLICY TO ENHANCE THE ATTRACTION OF INVESTMENT AND JOBS TO THE OWASSO ENTERPRISE ZONE AND OTHER TARGETED AREAS OF GROWTH THROUGHOUT THE CITY OF OWASSO. Mr. Akin presented the item to the Authority. Mr. David Vines, head of the Economic Development Committee of Vision Owasso, was present to answer any questions or concerns regarding this program. Mr. Tobias explained that Vision Owasso seeks the position of OEDA, on the need to begin the process to explore this public infrastructure financing program. Discussion was opened up for ideas and suggestions on this concept. Mr. Hancock suggested we look at the application to TIF's throughout the community. After discussion, Mr. Enzbrenner moved to approve the concept of TIF and to encourage the City of Owasso officials to set up a Policy Committee in conjunction with Vision Owasso. The motion was seconded by Mr. Sokolosky. A vote on the motion was recorded as follows: Smith - Yes Akin - Yes Wilken - Yes Sokoloskey - Yes Kimball - Yes Enzbrenner - Yes Motion carried 6 -0. ITEM 8: DISCUSSION OF DIRECTOR'S MONTHLY REPORT A monthly status and prospect update was given by Mr. Tobias. Mr. Robert Carr presented an update on the NSP Industrial Road project. Also discussed was an article from Urban Land Magazine related to the growing national interest in the development of community focal points, such as downtown business centers. OWASSO ECONOMIC DEVELOPMENT AUTHORITY September 10, 1998 Page No. 3 ITEM 9: REPORT FROM OEDA MANAGER. Mr. Hancock briefed the Trustees on the alignment of State Highway 20. Also discussed were the tables illustrating Owasso's comparative position on population, sales tax rates and the use of economic development financing tax initiatives. ITEM 10: NEW BUSINESS None ITEM 11: ADJOURNMENT Mr. Enzbrenner moved to adjourn, seconded by Mr. Kimball. A vote on the motion was recorded as follows: Akin - Yes Wilken - Yes Sokoloskey - Yes Kimball - Yes Enzbrenner - Yes Motion carried 5 -0 and the meeting was adjourned at 12:03 PM. Gary Akin, Chairperson Date Approved THERE IS NO CLAIMS LIST FOR THIS AGENDA. City of Owasso Owasso Economic Development Authority Schedule of Revenues and Expenses For the Month Ending September 30, 1998 MTD Operating income: Contributions $0.00 Sale of property 0.00 Interest & Reimbursement 76.56 Total revenues 76.56 Operating expenses: Materials & supplies Services & other charges Capital outlay Total expenses Operating income (loss) Non - operating income (expenses): Proceeds of construction loan ONG Work Center Project Total non - operating income (expenses) Net income (loss) Fund balance ** 07/01/98 Fund balance ** 09/30/98 0.00 0.00 0.00 0.00 W-1114% MIX 1 1I 76.56 * *Note: For the purposes of this report, "Fund balance" includes only current assets and current liabilities. YTD $0.00 0.00 236.79 236.79 0.00 1,185.00 0.00 1,185.00 (948.21) 0.00 " 0.00 0.00 (948.21) $38,659.85 .$37,711.64 1111 pl [1T7: ►11 lu TO: THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY 2�( CITY OF OWASSO FROM: ROBERT M. TOBIAS, JR.t/" DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: MONTHLY REPORT DATE: October 10, 1998 r V The following represents an overview of the various activities on which staff has been working: ECONOMIC DEVELOPMENT PROJECTS: Vision Owasso 98. Four standing committees were created as a result of this community -based economic community development planning process. The four committees encompass the areas of leadership, economic development, infrastructure and quality of life. The following represents a brief summary of committee activities: The leadership committee is facilitating the Leadership Owasso program in concert with the Owasso Chamber of Commerce. A program to begin in late fall is under development. Leadership Owasso has been expanded to incorporate an internship component and will also include high school students. One of the primary goals of Leadership Owasso is to identify, develop and nurture community leadership. The economic development committee continues to explore a number of state and local programs to facilitate the economic community development process in Owasso. This committee is also exploring the creation of a downtown business association similar to the German Comer Merchants Association to focus on development issues in this economically distressed corridor of the city. The infrastructure committee continues to explore the manner in which growing communities like Owasso plan for, prioritize and finance roadway, water and wastewater infrastructure to support commercial and retail growth. Many communities inclusive of Bartlesville, Muskogee, Sapulpa and Sand Springs, have either used property taxes to increase the base of local funding or held elections to increase their sales tax rate to finance infrastructure development. And finally, the quality of life committee is working on a number of key community issues that encompass expanding and enhancing the educational, cultural and recreational amenities available in the city. A proposal has been developed and presented to the Tulsa Technology Center to attract a campus to the Owasso service area. Additionally, several members have provided input to the INCOG Master Trails Plan for the location of greenways throughout the Owasso area. There are over 50 community representatives that are continuing to participate on these Vision Owasso committees. Commercial/Industrial Development. Staff continues to work with major property owners along the U. S. Highway 169 corridor and other targeted areas of growth, to attract mixed -use developments. There are several hundred acres that could potentially be dedicated for commercial, retail and industrial development, thus facilitating our continued community growth. Success in this endeavor would result in substantial increases to our sales tax collections and the creation of several hundred new jobs, providing the financial impetus to support the city's need to expand the water, wastewater and roadway infrastructure throughout the Owasso service area. Transportation /Transit Initiatives. Several Vision Owasso, Quality of Life committee members are attending INCOG's regional planning workshops to discuss the Metro Trails Master Plan. Input from these regional meetings will guide the development of the proposed greenway trail system that will connect and serve Owasso and the entire Tulsa region. Members of the Infrastructure committee plan to work closely with the Community Development Department to provide community-based input for transportation planning and programming. Internet/Marketing Updates. The Vision Owasso Economic Development Committee has been the impetus behind ongoing updates to the City of Owasso Home Page on the Internet. Staff is coordinating the update of various materials that should be added and incorporated onto the Internet that will contribute to enhancing our economic community development marketing activities. ECONOMIC COMMUNITY DEVELOPMENT PROJECTS: The following overviews our departmental strategies: Business Retention and Expansion As more jobs are created from growing existing companies, staff is working on enhancing the delivery of programs and services to facilitate existing company growth and expansion. Staff is currently working with a number of local manufacturing concerns related to their need to expand. Many of these firms are experiencing challenges associated with the limited amount of land available and zoned for industrial development, the lack of available existing facilities and the lack of skilled and unskilled labor. We are also exploring the manner in which we can enhance the outreach and the scope of services to facilitate commercial and retail growth as well. Historically, state and local programmatic activities have focused on the attraction of industrial growth. Therefore, small communities throughout Oklahoma, like Owasso, have experienced less sales tax growth than required to finance the water, wastewater and roadway infrastructure necessary to keep pace with the population growth. Strategies are being developed and implemented to work more aggressively on the attraction of commercial and retail establishments to Owasso. Business Recruitment Owasso's proximity to Cherokee Industrial Park, the Tulsa International Airport and the Tulsa Port of Catoosa has served as the impetus for record levels of new housing construction throughout the Owasso service area. The availability of sites and facilities at each of these major employment centers has also served to facilitate employment growth and business expansion. This dramatic employment growth in North Tulsa County has also produced many opportunities for commercial and retail growth. The recent announcement by Albertson's is indicative of the renewed interest by major retail establishments to locate in Owasso. Staff is actively working to identify and attract other commercial and retail establishments that would enhance the scope of business services and products available in Owasso. These opportunities for business growth and expansion should also produce increases in our sales tax collections and facilitate the financing of water, wastewater and roadway infrastructure projects a � Y �'. at 1 Coordinating public, private, and nonprofit investment to achieve important community goals. KAREN S. WALZ U r b a n L a n d September 1998 n 1991, when Steve Bartlett began his term as mayor of Dallas, the city was in a state of what may be called well- managed decline. Between 1987 and 1993, it lost 21 percent of its property tax base as a result of the statewide recession. The city was applying its limited resources to address immediate needs and continue day -to -day operations. Those operations were well man- aged, but the city's future had been put on the back burner. Dallas had no long -range plan, no shared vision, no clearly stated priorities. The new may- or and other city leaders were concerned that the city was heading for a long -term decline. To avert that possibility, they established a process for community planning and action known as the Dallas Plan. The Dallas Plan: The Organization The Dallas Plan refers to both an organization, created in 1992 as a nonprofit corporation called Dallas City Plan, Inc., and a policy document adopted by the city council in December 1994. The think- ing behind the formation of the dedicated planning organization was that it would involve the private sector and community groups as well as the city government, thereby gaining greater credibility and support than would a planning effort conducted by an e:dst- ing public agency or private organization. RWNWNNW� Initial funding for the Dallas Plan was provided bylocal foundations. Since Estate Council, a nonprofit organization representing the real es- tate industry (see "Real Estate Council Aims to Make Dallas a Bet- ter Place" on page 38). Their multiyear financial commitments allow the Dallas Plan to focus its efforts on planning rather than on fundraising. Policy direction for the Dallas Plan is set by the city council. This unusual arrangement has ensured the council's direct involvement in creating and implementing the plan and has resulted in stronger city support than might have been the case if the plan had been produced by an organization representing only business interests. The Dallas Plan staff works closely with the city manager and city departments to carry out the plan's key parts. The Dallas Plan's nine- member board of directors is concerned 1994, funding has principally with administrative issues and the success of specific come from a group of Projects that the organization undertakes to carry out the plan. The approximately40 ma- board's members are selected to reflect the diversity of Dallas in jor corporations locat- ed in the region and from the region's Real 5 W g terms of their gender, ethnic background, and geographic and po- litical interests. Two members, including the chair, represent the funding sources. Other members represent neighborhoods, com- munity and business organizations, and the design professions. The community at large also plays an important role in the Dal- las Plan. Meetings and workshops with interested citizens and a wide range of local organizations helped shape the plan and build sup- port for its adoption. Many of the groups that were involved in the planning process are now active "partner organizations" in the plan's implementation. These partner organizations include city depart- ments and other government entities, neighborhood associations, chambers of commerce, arts groups, cultural and ethnic groups, real estate and business organizations, and other community asso- ciations. They use the Dallas Plan to help set their own organiza- tional priorities, and their projects and programs in turn have be- come important elements in the implementation of the plan. Partner organizations may take the lead on specific action items or may par- ticipate in projects led by the Dallas Plan or other groups. The Dal- las Plan's communications program shares the results of its partner organizations' efforts with the wider Dallas community. The Dallas Plan: The Document The plan begins with the following vision statement: "In 2025, we envision Dallas as the city of choice for living, playing, working, visiting and investing. We envision the City of Dallas as an investor in its future'" The vision statement stresses the creation of a city that is attractive to the diverse decision makers — individuals, busi- nesses, and community groups as well as government —whose choices will affect Dallas's future. Its emphasis on the city's role as an investor underscores the value of public investment in shaping the character of the community. The heart of the plan is the following set of six strategic initia- tives directed at the issues and geographic areas that will be most important to the city's character and economic vitality. U r b an Land September 1998 �y Core Assets. This initiative emphasizes con - tinuing investment to preserve and enhance sig- nificant public facilities and systems. It identifies the city's core assets, which include the library system; Fair Park; the Arts District; White Rock Lake; the Dallas Zoo; three airports (Dallas /Fort Worth International Airport, Love Field, and Red . Bird Airport); and the water, solid waste, and transportation systems. Public investment in these assets is considered important to Dallas's future because the asset is part of the unique character of the city and be- cause public investment is needed to support private investment in the neighborhoods and business areas surrounding these assets. Neighborhoods. This initiative focuses on neighborhood in- volvement and partnerships. It recognizes the individuality of dif- ferent neighborhoods and acknowledges that residents and prop- erty owners can and should play an active role in addressing neighborhood needs. Economic Development. This initiative emphasizes investment to support growing industries, create new jobs, and provide eco- nomic opportunities in all parts of the city. It focuses on policies to help existing businesses thrive as well as on policies designed to position Dallas as an attractive location for emerging industries that will create significant job growth in the 21st century. The Center City. Defining the center city to include the ring of neighborhoods that surround the central business district (CBD), this initiative envisions the center city as a place to live as well as work and includes policies that support better connections between residential neighborhoods, the downtown commercial district, and key cultural institutions. The Southern Sector. Addressing the area south of Interstate 30 and the Trinity River, this initiative sets realistic investment targets for changing the character of an area that offers some of the great- est challenges and opportunities for the city's future. The southern sector contains most of the vacant land to be found inside the city limits, making it a potential site for new neighborhoods and em- ployment centers. At the same time, it contains neighborhoods with lower household incomes and properties with lower assessed val- ue than in the city as a whole. The initiative focuses on identifying and building on existing institutions, employment areas, and the activity centers that are developing around DART's light -rail sta- tions and elsewhere. (See "Go South, Young Man" on page I8.) The Trinity River Corridor. The plan's final strategic initiative is directed at an underused resource: the Trinity River and adjacent neighborhoods and business areas. Recognizing that the river has been the subject of many single -issue studies, the Dallas Plan urges that future planning and development along the Trinity River be coordinated in terms of five major issues: transportation needs, flood damage control, recreation and open space needs, econom- ic development, and environmental management. U r b a n La n d September 1998 � ,�� ZI, The Trinity River is one of Dallas's most undemsed resources. This May, voters au- thorised up to $246 million in bends for projects in the Trinity River Corridor, to be issued over the next ten years. The Dallas Plan in Action The city council's approval of the Dallas Plan in December 1994 was unanimous, as were the votes on the action agendas for the fol- lowing four years. Mayor Ron Kirk, whose term began in 1995, has been an enthusiastic advocate of the plan, continuing to provide the essential support begun by his predecessor. The city council has used the plan in setting priorities for capi- tal investments. In 1995 and 1998, voters were asked to approve bond issues that reflected the plan's emphasis on investment in neigh- borhoods, core assets, and Trinity River initiatives. Voters approved `$174.5 million in bonds in 1995 and $543 million in bonds this year —the largest bond election in Dallas history. These authoriza- tions mean that the city can indeed invest in its future. The Dallas Plan uses annual and now biennial action agendas to set specific targets and measure progress on the plans goals. The 1995 action agenda, for example, contained 25 action items; significant progress has been reported on 23 of them. The 1997 -1998 action agenda listed 41 action items, and by the end of 1997 work was un- derway on all items and some or all targets had been achieved for 29 of them. The Dallas Plan's Web site (www.thedaHasplan.com) con- tains reports on all action items and the partner organizations (city departments, the Dallas Plan, or various business and community organizations) that are responsible for their accomplishment. Results on selected action items are discussed below for each strategic initiative. Neighborhoods. The city of Dallas has stayed on schedule for con- struction of neighborhood capital projects funded by the 1995 bond issue. Through this June, 369 neighborhood projects had been com- pleted and 336 others were underway, representing more than $66 million in public investment. Investment in new housing by private developers, lending institutions, community development corpora- tions, and other government entities has accompanied this infra- structure investment. This May, the city and Fannie Mae announced that the Homes for Dallas initiative to provide mortgages and other housing assistance had completed a five -year, $1.5 billion investment commitment in three years and that the corporation will contribute an additional $2.5 billion to continue this initiative. The Center City. The Center City Transportation System Man- agement Study is a project designed to make the most effective use of all transportation modes. It has been led by the Central Dallas Association (CDA) with the participation of a dozen transportation- Dallas Plan partner organizations solicit community input and help shape the planning and implementation processes at events like this citywide open house. The Southern Sector and Economic Development. Two major studies have been completed that promote investment in the south- ern sector. The city manager's "Global Strategy for Expanding De- velopment in Southern Dallas" addresses the creation of job op- portunities, worker training, and increased private investment in this part of the city. The Dallas Plan's "Biotechnology Strategy," pro- duced by a public /private team, recommends the development of a startup biotechnology center adjacent to the University of Texas Southwestern Medical Center and the development of a biotech- nology business park in the southern sector. The Trinity River Corridor. The city council has approved a plan of action for the Trinity Parkway; a concept plan for the Great Trin- ity Forest Park; flood control measures; and creation of a tax incre- related public agencies, and the Dallas Plan has coordinated stake- holder involvement. The study has resulted in 70 recommendations, 33 of which are considered high priority, ranging from a new bus circulator that would link DART'S light -rail line with key center city destinations to a comprehensive way - finding system for travelers using any transportation mode, including pedestrians. The process of approving and implementing these recommendations is cur- rently underway. Core Assets. Considerable investment has been made in the core assets identified in the Dallas Plan. The 1995 and 1998 bond issues provided funding for Fair Park, White Rock Lake, the Arts District, the Dallas Zoo, and the library system. Organizations including the Friends of Fair Park, the Cotton Bowl Dome Foundation, the State Fair of Texas, the Texas Department of Agriculture, the Dallas Zoo- logical Society, Exxon, Kimberly - Clark, For the Love of the Lake, ECO Dallas, Friends of the Dallas Public Library, and others also have invested in the core assets. ment financing district for the Oak Cliff gateway area. In May, voters authorized up to $246 million in bonds to be issued over the next ten years for Trinity River cor- ridor projects. Partner Organizations. These successes are not the re- sult ofworkbyany single organization. They are the result of action by many organizations working as partners to achieve the goals of the plan. This partnership itself is an important part of the Dallas Plan's success story. Early next year, the Dallas Plan will develop a new two -year action agenda with community input and city council direction, a key tool in the step -by -step imple- mentation of the plan's long -term vision for Dallas. The city is in far better shape than it was in 1992, when the Dallas Plan was established. As the city's official plan for its future, the Dallas Plan serves as an overall framework for continuing action. As an organization, the Dallas Plan has played an important role as a catalyst and builder of community consensus. With the continuing collaborative effort of public entities, private sector investors, and community organizations, Dallas is ensuring that it will indeed be chosen by 21st - century decision makers as the place to live, work, play, visit, and invest. ■ KAREN $. WAIZ Is THE EXECUTIVE DIRECTOR OF THE DALLAS PLAN AND THE PRIN- CIPAL IN STRATEGIC COMMUNITY SOLUTIONS, A PLANNING CONSULTING FIRM. U r b a n L a n d September 1998 J CORPORATE Prolek. v`. E t C f u�l lttp e�R= General Growth Properties is a full- service shopping center owner, property manager and developer with nearly 3,000 employees nationwide specializing in shopping center development and management, financing, property acquisition and disposition, project design, retail marketing, market research and leasing. More than 10,000 retailers benefit from their association with our shopping centers. General Growth was started in 1954 as a private enterprise of Matthew and Martin Bucksbaum. The Bucksbaum family holds a 35 percent interest in the GGP REIT, with the remaining shares being held by institutional investors and individual shareholders. During its 44 years, General Growth has concentrated on the management, acquisition and development of shopping centers throughout the United States. General Growth Properties is headquartered in Chicago, Illinois. Company Management HisT ?RY PROFILES Contact SHAREHOLDER � FW. ANGLAL lriformw 3c foritst ion InfoxHoi. HOME it GGP E NIA1L Com'daht General Grcmth Preoati,�. Inc. 1795 1 of 1 9/24/98 9:42 AM Company HISTORY .�. 1954- Bucksbaum brothers, Martin and Matthew, decided to expand family grocery operation. Built Town and Country Center in Cedar Rapids, Iowa, one of the earliest centers in the Midwest. 1964- The Bucksbaums hold five properties. Become majority stockholders in General Management Corporation. 1970- Bucksbaum brothers exchanged stock for shares in a Real Estate Investment Trust (REIT) called General Growth Properties. General Growth Companies was formed to plan, develop and manage the REIT assets. 1972 - Listed on NYSE. 1984- General Growth sold 19 malls to Equitable for $800 million. Considered at the time to be the nation's largest single asset real estate transaction, included more than eight million square feet of retail space. The REIT was liquidated but General Growth Management Inc., the management company of General Growth Companies, continued to manage many of the properties. 1989- General Growth acquired The Center Companies. This acquisition positioned General Growth Management as the second largest regional shopping center management company in the nation and the top manager for institutional owners. 1993 - General Growth formed General Growth Properties, its second REIT with 55 percent of the company's holdings. Bucksbaum brothers retained ownership of the remaining 35 percent. Initial public offering was for nearly 19 million shares at $22 a share. 1994- General Growth purchased a 40 percent interest in CenterMark Properties which was the owner and operator of 16 regional malls and three power centers. December 19, 1995 - General Growth sold 25 percent of its interest in CenterMark to the Westfield Holdings Group, resulting in a profit of $27 million. December 26, 1995 - General Growth purchased Homart Development Co. from Sears, Roebuck and Co. and established its corporate headquarters in Chicago, Illinois. The $1.85 billion acquistion, made in conjunction with four investment partners, represented one of the largest real estate transactions in U. S. history. of 3 9/24/98 9:43 AM June, 1996 - Option to buy remaining 75 percent of General Growth's interest in CenterMark was exercised by Westfield Holdings Group. As a result of this transaction, General Growth realized a profit of $81 million. July, 1996- General Growth introduced new direct stock purchase plan to replace former dividend reinvestment plan. Investors interested in General Growth may buy stock directly from the company. August, 1996- General Growth acquired the employee - owned, General Growth Management, Inc. (GGMI), the largest manager of third -party -owned shopping malls in the United States. The acquisition brought all of General Growth's management, leasing and marketing operations under one roof and positioned General Growth Properties to expand the management business. June, 199% - The company acquired West Loop Chicago office building for new corporate headquarters. April, 1998- General Growth moved into new corporate headquarters located at 110 North Wacker, Chicago, Illinois. April, 1998 - General Growth announced pending acquisition of eight shopping malls The company agreed to purchase domestic subsidiaries of MEPC, a United Kingdom based company for $871 million. The properties were delivered debt free and are expected to produce approximately $68 million of EBTrDA between June, 1998 and May, 1999. Acquisition was completed in June 1998. o May, 1998 - Two weeks later, the company announced the execution of a merger agreement to acquire U.S. Prime Property, Inc. (USPPI). The acquisition price was $625 million less assumed debt of approximately $65 million. May, 1998 - General Growth acquired Northbrook Court shopping center located in suburban Chicago. The acquisition of this upscale mall firfdls General Growth's search for a property to call its flagship in their headquarters city. June, 1998 - The company manages or has an ownership interest in 121 malls in 37 states totaling over 96 million square feet. Management PROFILES ?of3 9/24/98 9:43 AM SHAREHOLDER-=V=— FINANCIAL WormaGiExt " Io%ast$fion Inforh dort a HOME s GGP E -MAIL Coperiytt General Grmgh Pronertica Inc 1905 Y of 3 9/24/98 9:43 AM RONALD K I R K Go South, Young Man Dallas's Southern Sector Initiative sets the stage for revitalization. allas is an exciting place to live and work. The real estate market is booming once again, and the city is seeing renewed growth. The robust economy and unprecedented job growth con- tinue to fuel demand for further development. Yet there are noticeable differences between the north and _,l ��� I � �� k, y � - TL_ RONALD Y RK is the mayor of Dallas. �t south sides of the Trinity River, which serves as a visible re- minder of the social and economic differences between North and South Dallas. North Dallas has long been the part of town to which developers flock, and to their credit it is a thriving, robust area. South Dallas is a different sto- ry. The area has remained relatively unchanged for several years, except for an increase in boarded up buildings. But thanks to the Southern Sector Initiative, a plan to revital- ize this part of the city, the South Dallas of yesterday and today will not be the South Dallas of tomorrow. South Dallas constitutes a large and vital part of the city. More than 448,000 people live there. They represent more than 45 percent of the city/s total population, but on- ly 18 percent of its tax base. The median age is 26, the me- dian income is $15,600, and 28 percent of the residents have at least a high school education. Nearly 50 percent of the population is African American; Hispanics make up 25 percent and whites 24 percent. The area's workforce in- cludes more than 200,000 people, 10 percent of whom are currently unemployed; in the rest of the city, the rate is less Is U r b a n L-a n d September 1998 than 4 percent. The Dallas Together Forum and the Greater Dallas Chamber of Commerce recently took part in a study to explore the economic opportunities in South Dallas, which found that the area has an underserved retail mar- ket of $3 billion and major competitive advantages in at- tracting more commerce. (These findings are similar to the conclusions of Michael Porter of the Institute for a Competitive Inner -City) Residents of South Dallas often have to travel more than 20 minutes to retail services, and they are ready for new development. The transportation infrastructure for new development already is there; South Dallas is served by four interstate highways as well as by bus and rail service, and Dallas /Fort Worth International Airport is only 20 min- utes away. Five rail carriers serve the area, as do 150 com- mon carriers, 50 of which have trucking terminals there. Ninety percent of the city's approximately 8,000 acres of land that are zoned and ready for development are in South Dallas. To spur interest, the city has approved an aggres- sive tax abatement program for developers who develop in the south. The push to reinvigorate South Dallas has been grad- ual. It first began in the 1980s, but the struggling econo- my worked against early efforts. In 1989, the Southern Dal- las Development Corporation was established to accelerate economic development. Because there was little capital de- voted to the southern sector, the corporation's goals at first seemed lofty. Big dreams require big money. These dreams came closer to becoming reality this April, when nine of the city's financial institutions joined to pledge $1.5 bil- lion in financing to South Dallas to be used for small busi- ness loans, consumer loans, and housing loans. The Southern Sector Initiative will not just happen on its own; it will take people and organizations to bring it to fruition. Many of the city's nonprofit, public, and private organizations have joined together to rejuvenate South Dallas. The Dallas Together Forum has joined with the Dal- las Black Chamber of Commerce and the Greater Dallas Hispanic Chamber in an effort to increase corporate in- vestments. Other organizations such as the Oak Cliff Chamber, the Southeast Chamber, Paul Quinn College, and various neighborhood and religious groups also play an important role. Thanks to the dedication of these or- ganizations, new development is beginning. The Belo Cor- poration has purchased land in South Dallas for a new See POINT OF VIEW, page 124 POINT OF VIEW, from page 18 printing plant and the Trammell Crow Com- pany is building an industrial park there. The Southern Sector Initiative is the city's global strategy for expanding development in South Dallas, and under the leadership of the city council and city manager John Ware, this strategy is making its way from the draw- ing board to the neighborhood. The goal is to aggressively market the city, promote ed- ucation and workforce development, accel- erate business development, and carry out policy and legislative initiatives to stimulate economic growth. In 1995, the city council created the Dallas Business Development Corporation, which is better known as the Dallas Initiative, a nonprofit organization de- signed to attract capital investment to Dal- las, enhance the city's tax base, and create jobs. This effort targets areas, including South Dallas, that have been bypassed for develop- ment due to a lack of infrastructure, entitle- ments, or negative perceptions. The Dallas Initiative attempts to remove these obstacles to clear the way for development. The citizens of Dallas have demonstrated their commitment to reviving South Dallas. In May, voters approved Proposition 9, which provides $16.6 million for infrastructure and land acquisition. They also passed Proposition 11, which allows $246 million for improve- ments along the Trinity River Corridor, one of the most ambitious projects in the city's his- tory. Some have asked why the city has taken on such a major river project. The reasons are economic, aesthetic, recreational, environ- mental, and social. The word "trinity" also means unity, and the Trinity River Project has the potential to unify two separate areas of the city. I believe that it will happen and that it will benefit generations of Dallas citizens for years to come. These two propositions will give Dal- las the infrastructure and physical assets nec- essary to continue to be a top -tier city for commerce and industry. The Southern Sector Initiative is bringing newlife into the southern part of our city. From You Get The Results You Expect. DFW Advisors Ltd. Co. is a Dallas -based firm offering clients transaction counseling, commercial brokerage and overall real estate consulting including financial planning, advisory services, investments and affordable housing. DFW Advisors Management, Inc. specializes in the management of office, industrial, retail and multi - family properties. The company's services to corporate, institutional and individual investors /owners also include leasing, con- struction management and build -to -suit construction. DFW Advisors is comprised of individuals who are longtime leaders in real estate, financial advisory services and con- sulting in the southwestern United States. D7� «j ADVISORS LTD. CO. 4600 Greenville Avenue • Dallas, Texas 75206 Tel. 2141750 -9898 • Fax 2141750 -9908 aU r b a n L a n d September 1998 a purely economic standpoint, it is providing the land that Dallas needs to expand. But bring- ing new life into this area means much more than simple dollars and cents. This initiative says to South Dallas residents, "We care.' De- veloping South Dallas is good for everyone. Doing nothing there is good for no one. As cities throughout the United-States struggle to restore their decaying areas, they face the challenge of keeping residents and businesses in these areas. Some cities have cre- ated outstanding success stories, while others have found only failure. Dallas is working hard to create a success story in South Dallas. Now that there is renewed interest in developing south of the Trinity River, combined with a ro- bust economy, an available labor force, and ex- cellent access, South Dallas is ready for pros- perity. As we enter the new millennium, people are beginning to realize that South Dallas has something to offer. There still is a great deal to do, but we are on the right path. Go west, young men and women, at least until you reach Dallas. Then go south, where good things are in the works. 0 Known by the companies we keep 9 eenbriar j�entile ��/.x ...' INVESCO E•INSIGNIN 0 L_I COMME.RCIALGROUC iNC. Pacific Retail Trust PROP COMPANY ��ll 1J , w & ASSOCIATES PROPERTIES. INC. 0 NOMURA NomuRA ASSET CAPITAL. CORPORATION UNITED INVESTORS REALTY TRUST SOUTHWEST SECURITIES REAL ESTATE INVESTMENT BANKING John W. Townsend, Managing Director 1201 ELM STREET, SUITE 3500 DALLAS, TEXAS 75270 (214) 672 -6644 MEMBER: NYSE, NASD, SIPC