Value Add Re-Development

The 12 motels will be converted into 2 story loft style apartments that are $1,628 sqft each and leased at a rate of $995 monthly. They will be updated with energy efficient AC/Heating systems, tankless water heaters, and eco-friendly carpet. Heating water accounts for up to 30 percent of the average home's energy budget. Some makers of gas-fired tankless water heaters claim their products can cut your energy costs up to half over regular storage heaters. I’m not buying it! 

The roofs will be made from recycled-content shingles such as plastic, rubber or wood fiber. Although the amount of energy it takes to produce this product is fairly low, the harvest of “old-growth” trees is not sustainable in the long run. They also may not be permitted where there is a risk of brush and forest fires. Recycled-content roof shingles help divert waste from landfills and reduce our need to extract and process raw materials, which lowers energy consumption and reduces pollution. Some of these products are recyclable, too, and many come with eye popping 50-year warranties!

Moving away from traditional office space, we decided to convert the 5,935 sqft office building into 10 – 300 sqft and 3 - 400 sqft rooms. The building will also have his and her bathrooms, a receptionist area, and a corporate kitchen. Units of America will lease to approximately 50 tenants at a rate of $150 monthly or $90,000 annually. This is the perfect concept for small business owners and entrepreneurs that have a home based business and/or don’t need a huge office that's out of their budget and business model. Having a small affordable office to meet clients, vendors, or colleagues with 24 hour access fits today’s mobile professional.

The Convention Plaza building will be converted a call center for one of the largest companies in the Dallas/Ft. Worth Metro-plex with more than 10,000 employees. We will also be going Green with the Convention Plaza building. Another element that will be established in regards to the convention plaza and office building is Building Adaptability. This is the capacity of a building to be used for multiple uses and in multiple ways over the life of the building. We 

Going Green! Sustainability

The new neighborhood market Wal-Mart  will be a net-zero energy building consisting of:

• Energy efficient light-emitting diode (LED) lighting in the freezer cases that generate minimal heat and use 50 percent less electricity than traditional fluorescent fixtures
• Motion-sensor lighting on freezers and coolers to conserve energy when no one is present
• More than 200 skylights and an improved daylight harvesting/ skylight system that reduces consumption even more than in previous installations
• Closed loop CO2 secondary refrigeration system in the freezer cases and a closed loop secondary glycol system in the chilled food/beverage areas that significantly reduce conventional refrigerant charge and greenhouse gas impact and uses fewer materials such as copper piping
• On-site water treatments such as:
   - bio-swale that removes sediment from water before it enters the storm water sewer system,
   - storm sewer inlet that allows for debris to fall out before entering the storm water treatment inlet which removes oil and pollutants remaining in the storm water prior to entering the retention pond located in the back of the club.
   - above ground two tank system to harvest rainwater from the roof of the building to irrigate landscaping via a drip irrigation system and to provide water needed by the cooling tower serving the refrigeration system, and
   - on-site car wash that can reclaim approximately 60 percent of the water used.  (Car washes actually use less water than washing vehicles at home.)                       
• Rainwater harvesting from portion of rooftop to supplement landscape irrigation and club cooling system
• Recycling services for tires, batteries, cardboard, single-use cameras, food waste, plastic waste and building materials

The Conventional Plaza property will be updated to be more cost-efficient and reduce life cycle cost. Things to be implemented are:

• Skylighting 
• Bathroom products that use less water
• Updated Heating/AC systems
• The Indoor Environmental Quality will be improved; increased ventilation and moisture control

Marketing & Management

Management

Asset management will be assigned to Units of America who will hire building maintenance personal, 24 hour security, and on site management. Leasing will play a big part in the property's current and future value, Units of America understands this and will mastermind a strategy that will maximize the property's potential.

Marketing

The marketing of the Convention Plaza property will also be facilitated by Units of America, which will consist of:

• Banner on the buildings
• MLS
• All Metro area newspapers
• Craigslist
• Social Media sites; Twitter, Facebook, Linked In
• Shoot a Commercial/Video for YouTube
• D Magazine
• Offer incentive's for current tenants to refer new tenenats

WWW.UNITSOFAMERICA.COM

Deal Structure

The financial structure of the Wal-Mart development will be as follows: The land will be gifted to Ramsire International, LLC because the project will more create jobs and put a piece of vacant land to use for the city. The total overall cost for the project will be $7 million. The minority owned 8 (a) certified firm developing the Wal-Mart, Ramsire International, LLC will receive $3.5 million in a public subsidy through tax-increment financing. Frogey Unlimited will invest $3.5 million for a 50% ownership stake. 1% of the profits will be donated to a local non-profit organization. Wal-Mart Stores, Inc will sign a 20 year lease on the building. Ramsire International, LLC will also earn a $300,000 developers fee.

Under a TIF, a developer is allowed to use tax revenue to pay for infrastructure and development costs. The taxing jurisdictions are guaranteed the same level of revenue they were receiving before. The Irving ordinance allows half of the additional revenue generated to go into the TIF be used for project costs. Irving also will allow the use of eminent domain, if needed.

	REAR 5314 Equities, LTD.                                                  (TEXAS LIMITED PARTNERSHIP)

	50%     Forgey Unlimited, Inc LIMITED PARTNER		49% Ramsire International, LLC GENERAL PARNTER

The Convention Plaza building will also be purchased by Forgey Unlimited for $650,000 and structured as a joint venture with Units of America, LLC. Units of America, LLC will also get a 40% ownership stake for property acquisition, organizing the joint venture, and managing the property. 40% ownership outright is taxable as ordinary income to U of A. To avoid this U of A could structure the proposal to be a percent of future profits; however if the property doubles in value this will calculate to 80% in profits. To the equity investor 40% organization ownership will definitely sound better than 80% of profits.

	Wingren Group                                                               (JOINT VENTURE)

	60% Forgey Unlimited, Inc PARTNER		40% Ramsire International, LLC PARTNER

Financial Feasibility and Conclusion

Irving Development	HIGHLY
	ENERGY EFFICIENT
	WAL-MART
+ Construction Costs (PSF)	$                 140.00
x Total Square Feet	50,000
= Total Construction Cost	$       7,000,000.00
+ Land Acquisition Costs	$                         -
= Total Development Costs	$       7,000,000.00
- Governmental Rebates for Energy/Sustainability	$         (500,000.00)
= Revised Development Costs	$       6,500,000.00
Project Financing Details
Maximum LTV Ratio	75.00%
Loan Term in Months	180
Loan Interest Rate	6.00%
Equity Required	$       1,625,000.00
Debt (Loan Amount)	$       4,875,000.00
Before Tax Cash Flow (BTCF)	$123,414.06
Annual Debt Service	$493,656.24
Minimum DSC Ratio	1.25
Required Minimum Net Operating Income (NOI)	$617,070.31
Total Operating Expenses as % of EGI	25.00%
Total Operating Expenses	$205,690.10
Effective Gross Income (EGI)	$822,760.41
Vacancy and Collection Loss % of PGI	7.00%
Vacancy and Collection Loss (VCL)	$            61,928.20
Potential Gross Income (PGI)	$          884,688.61
Required Gross Rental Rate PSF	$                   17.69
Required Net Rental Rate PSF	$                   12.34
BTCF/EQUITY INVESTED (BTROE)	7.59%

Because of the economic impact that the Wal-Mart/Convention Plaza development will have on the community, I believe that it's a great long term investment and an adaptive reuse of valuable, but vacant public and private property. From an investor's point of view, based on the cost savings from sustainability and the TIF program its a great opportunity to support the community AND make a profit!

Political and Legal Feasibility

Both sites are zoned COMMERCIAL.

Construction Board of Appeals

Purpose

The Board hears and renders decisions on appeals from the decisions of the building official and fire chief.

Meetings

The board meets as needed; meetings are held at Irving City Hall, 825 W. Irving Blvd.

Member 2011-12

Consists of seven voting members, including one resident, one master electrician or electrical contractor, one master plumber or plumbing contractor, one class "A" license mechanical (HVAC) contractor or mechanical engineer, one home builder, one representative from the fire protection industry and one licensed architect or engineer. The building official shall be an ex-officio member, the department director and fire chief shall be ex-officio members.

Position	Member	Term Ends
Place 1	George Stephenson	November 2013
Place 2	Larry Taylor	November 2012
Place 3	Barry Leach	November 2013
Place 4	Raymond Brown	November 2012
Place 5	Tariq Jalil	November 2013
Place 6	Richard Comstock	November 2012
Place 7	Dinesh Mali	November 2013

Staff Liaison

Gary Miller, Planning and Inspections Director | Email


Correspondence may be sent to:
Construction Board of Appeals
c/o Planning and Inspections Director
825 W. Irving Blvd.
Irving, TX 75060
Fax: (972) 721-2481

Market Feasibility

There are currently 2 Wal-Mart stores in the Irving city limits. The traffic count at 4100 W Airport Fwy Irving, TX is high during peak store hours, thus creating long lines and severly under stock shelves. The other location in Irving is 10 miles away. With the future Cross Roads development (old Texas Stadium site) in the works, there will be an increased population. Therefore, there is a projected demand for a 3rd Wal- Mart in Irving, TX.

What current customers are saying about the Wal-Mart at 4100 W Airport Fwy location:

Irving Demographics

2012 Snapshot

Population

2012 Population Estimate (NCTCOG) 2010 Population (Census) Growth Rate: 2000 - 2010 2012 Dallas County Population (NCTCOG) Dallas/Fort Worth Metro (CMSA) Population (2010) City Population Rank - County City Population Rank - State City Population Rank - Nation

218,850 216,290 12.9% 2,385,990 6,283,310 3rd largest 13th largest 94th largest

Age Characteristics

Median Age (2010 Census) Male/Female (2010 Census)

31.3 100 males per 100 females

Race/Ethnicity

Racial Breakdown (2010 Census)	White- 53.1% Black- 12.3% Asian- 14.0% American Indian - 0.9% Pacific Island - 0.1% Other- 16.2% 2+ races- 3.5%
Percent Hispanic (2010 Census)	41.1%
Combined Race and Ethncity (2010 Census)	White, NH - 30.8% Black, NH - 11.8% Asian, NH - 13.9% American Indian, NH - 0.4% Pacific Island, NH - 0.1% Other, NH - 0.2% 2+ races, NH - 1.7% Hispanic, any race - 41.1%

Income/Employment

Median Household Income (2008-10 ACS) Median Family Income (2008-10 ACS) Unemployment Rate (Dec 2011, TRACER)

$46.354 $50,609 6.8%

Top Eight Private Employers (alpha order)

The Greater Irving-Las Colinas Chamber of Commerce-2011

Abbott Laboratories Allstate Insurance Company Baylor Healthcare Citigroup Inc. Irving Mall NEC Corporation of American Inc. Nokia Corporation Verizon Corporation  (10,500)

Site Analysis

The re-development site chosen is located in and owned by the city of Irving, TX. 10 minutes from downtown Dallas. Residences have easy access to major highways like I35, Hwy 161, Hwy 183, and Hwy 121. With more than 732,000 cars passing the site on a daily basis, the site is 4 miles away from  the third busiest highway intersection in Dallas-Fort Worth. More than $700 million in transportation investment is already committed for the immediate area for the expansions of Highways 183 and 114, as well as Loop 12, to include light rail, bridge reconstruction, roads, ramps and more. This also a great site for business travelers because it's approximently 35 minutes from anywhere in the metro area. 

Vacant Lot labled with red A

Owner: IRVING CITY OF

Previous owners: 

-RAM LP HARI

-REALSTATE EQUITY ALLIANCE

Business name: VACANT LAND

Land value: $872,870 Land usage: Commercial - Vacant Plotted Lots/Tracts

Land size: 239,462 square feet

Building class: Land Only

Parcel usage: Commercial

Previous total value for property: $2,200,000

Assessments for tax year: 2011

Total value for property: $872,870

Zoning: Site Plan (Detailed)



Built in 1972, the previous improvement constructed on the land was American Best Value Inn & Suites. The building was two story and consisted of 173 rooms, a bar & restaurant and night club. The property was placed on the market approximately 6 years ago, but failed to sale due to the extensive renovations needed to be done to the property to be functional. 

The land and/or improvements seem to have been subsidized by the local government, hence the current ownership by the City of Irving since June 2008. The hotel was demolished in 2009 leaving the city with I highly visible piece of land with endless possibilities. According to the Dallas Central Appraisal District, the 239, 462 lot is valued at $872,870.

Since the opening of the new Irving Convention Center in Las Colinas, there is currently no occupancy of the Convention Plaza or the other mixed use space directly behind it. building adjacent to the vacant land. It consists of valuable hotel (19,544 sqft), office (5,935 sqft), and retail space (13,116 sqft). The actual Convention Plaza building will be converted into a call center that can house up to 40 employees.

Directly north of the lot is the 260 unit Wingren Village apartment complex. The current occupancy of Wingren Village is 96%.



HWY 183 EXPANSION

·        The project area covers east-west transportation needs along existing State Highway 183 from State Highway 360 east to Interstate Highway 35E and includes West Dallas, Irving, and the southern area of DFW International Airport. Phase II of the Diamond Interchange Project also encompasses a significant section of SH 183.

·    The total project is estimated to cost over $1.5 billion, which includes the entire length of SH 183 in Irving and the Diamond Interchange Project around the former Texas Stadium site. Currently, Phase I of the Diamond Interchange is under construction at a cost of $225 million.

 ·   Efforts are being made to include the project in the • NCTCOG Mobility 2035 Plan. This inclusion will qualify the project for available federal funding and allow the project to be presented to the 82nd Legislative Session to be considered as a potential public/private partnership project for the state of Texas.

•  The proposed plan calls for the construction of two- to three-lane frontage roads in each    direction, four non-toll main lanes in each direction and two managed tolled lanes in each direction.