Item 2 - Rally Austin Presentation — original pdf

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Economic Prosperity Commission Meeting October 16, 2024 Our Rally is to create a culturally resilient and economically integrated Austin where diverse communities can thrive and prosper without risk of displacement. Rally Austin Rally closes the racial wealth gap by centering historically in our work, holding our marginalized communities collaborators and ourselves accountable to build an equitable and inclusive Austin, as we steward public and private real estate assets to create inclusive community benefits and equitable economic outcomes. facilitates Rally Austin is a real estate nonprofit development projects to foster equitable and inclusive economic growth. We operate to deliver meaningful outcome through our core values – that     Strategic Collaboration Empowerment through Professional Support Responsiveness and Flexibility Trust and Integrity Organizational FY23 Outcomes  Actively advancing a portfolio of projects estimated at $150M. Investments on East 11th Street will spur increased activity within the Black Cultural District supportive of building and retaining culture/small business and residents that represent the historic legacy. Additionally, negotiating 10 of the Cultural Trust deals to advance feasible projects, including three being announced publicly.  Approved as a 501c3 in FY23, allowing staff to meet and exceed the organization’s fundraising goal for FY23 by 15%. This additional funding was invested in two projects: Blocks 16 & 18 and the Cultural Trust.  Rally elevated transparency in its work by hosting 32 public meetings, special events and community engagement sessions, speaking at 10 events and 16 City Commission presentations, while issuing 7 press releases.  Staff sought to increase diversity and representation through its work in the community by soliciting 6 contracting opportunities to more than 1,380 contacts, while conducting business with 9 small, minority or local companies. Notable solicitation includes Block 16 & 18 Request for Proposals in August 2023. Visit with Mayor Dickens and Invest Atlanta to conduct a review of best practices with Council Member Fuentes and Council Member Harper-Madison attending virtually. Board of Directors: Our Commiunity at Work Nominating bodies to the Rally ATX Board of Directors include the following institutions and asset holders: Economic Development Department Neighborhood Housing Finance Department Office of Equity Arts Commission Music Commission Historic Preservation Commission Rally Board Leadership 2025 Executive Committee: Board Chair: Tina Cannon Board Vice Chair: Emmett Beliveau Board Treasurer: Jeremy Martin Board Secretary: Tamara Atkinson Immediate Past Board Chair: Carl Settles Bradford Patterson leading Real Estate Amanda Jasso supporting framework of Diversity, Equity and Inclusion Theresa Alvarez, Rally President & CEO Rally ATX Five Year Focus Over the next five years, our organization will focus its work to build a city that supports and reflects our community’s needs, uniting and driving progress across three critical areas of development:    Rally for Complete Communities Rally for Arts, Music & Culture Rally for Catalytic Development Major Contributors to our Rallies Organizational Planning & Background Requests for an EDC A series of resolutions identified the need to first investigate and then create a real estate focused entity that could assist with inclusive growth outcomes and the preservation of existing cultural spaces as well as the development of new affordable spaces.  20141211-122: Directed the CM to explore the feasibility of an EDC  20160303-019: Music & Creative Ecosystem Omnibus  Included the coordination of the preservation and creation of affordable cultural and music space by a specialty entity that could also negotiate in public/private projects and be integrated into public projects.  20170216-040: Directing the CM to bring forward proposals for the EDC  20170302-034: Directing the CM to bring proposals update the City’s Economic Development Policy  Emphasis on needs to address affordability and equitable place-making from Community Engagement findings reported by staff  20180215-082: Use an EDC to create a Cultural Trust  Directed using the Cultural Asset Mapping Project (CAMP) as a guide for broad inclusion  Cultural Trust to be integrated into an EDC  Investigation of code revisions, retail incentives and other real estate mechanisms to assist as needed Direction to Create an EDC 20190808-072: Authorizing the creation of the City's vision and through the formation of public-private programming for partnerships and facilitation of resulting projects that generate additional resources or revenues for the City”…. inclusive economic development the EDC “to complement  City Council directs the City Manager to initiate the necessary processes to authorize the funding sources, solicit if Creation of an economic development entity, stakeholder necessary, contract with a subject matter expert to develop an implementation plan. feedback on the entity’s governance and operational structure, and, identify potential  City Council directs the City Manager to structure the entity broadly enough to manage a range of projects, which could include affordable housing development, public-private Partnerships with private-led development such as the South Central Waterfront that could provide community benefits and shall include a Cultural Trust to support acquisition and preservation of creative space.  City Council directs the City Manager to bring forward a recommendation for funding needs this direction for consideration during the Fiscal Year 2020 budget to implement deliberations. Research for EDC Interviews with local authorities to understand precedent work and stakeholders:  Dec-Jan 2020 Discussions: Structure, Governance, Funding, Powers, Projects, Examples from other cities  Follow-up meetings Feb – April 2020 to delve into structures, governance and project-specific details Best Practice research: Entities in Texas, Invest Atlanta, Philadelphia (PIDC), NYCEDC and others Areas of alignment for structure, governance, funding and powers:  Formation of an outside entity accountable to Council  Blended funding model focused on real estate and contract services:  Real estate fees through management, leases, sales and transactions  Contract fees from the City to perform certain services that save the City from hiring additional staff  Philanthropic donations, Investment management and conduit financing (bond) management  Focus on maximizing the ability of the EDC to act as a public real estate developer  Direct transfer of real estate from the City  Sale, lease, management of public real estate  Act as a developer, leading and funding inclusive growth  Lead Public/Private negotiations at the pace of the private market  Expedite public approvals and ”be nimbler than the City”  Managing large-scale development districts and projects on behalf of the City City Governance Structure Council-Manager Organization Board Structure Property Holdings Revenue Streams Rally Austin Est. 2020 Dallas EDC Est. 2022 HoustonFirst Est. 2011 PIDC Est. 1958 PAID Est. 1967 20 members – various nominations, all approved by Council None City appropriations Council-Manager 15 members - appointed by the Dallas City Council Various commercial & residential holdings TIF, PACE, City appropriations Strong Mayor 15 members – appointed by Mayor or City Council Operates the city’s primary entertainment & arts venues Hotel occupancy tax, tourism & travel revenue Strong Mayor 30 members – appointed by Chamber, Mayor, & Council None – manages property through PAID Fees for services Strong Mayor 5 members – appointed by Mayor Manages land and buildings on behalf of the City Bonds and government contracts and grants Invest Atlanta Est. 1997 Strong Mayor Chaired by Mayor. 8 members – various nominations; half approved by Mayor, half by Council Limited 5 members – nominated by Mayor, approved by Council None – manages City’s TIF districts Prosper Portland Est. 1958 NYCEDC Est. 1991 Transitioning from Mayor- Council to Mayor- Manager Strong Mayor Philanthropy, Private sector, City, Atlanta Housing Opportunity, Leases, Development projects, Bonds TIF, City appropriations, Lending – interest income, Grants, Asset management Fees for services 28 members – appointed by Mayor City’s largest landlord, manages approximately 200 city properties, over 60M SF Land sales and lease agreements, Bonds, NMTC Conclusions of Research  A “Family” of organizations is most able to fulfill all Council purposes with appropriate oversight for critical decisions.  A new AEDC combined with existing AIDC and contracted with EDD management  Critical governance decisions should be city-controlled  Financing and bonding should be approved by City (as part of AIDC)  Board should be mixed (public employees and private citizens) appointed by Council  Annual budget, contract and projects approved by Council  To ensure long-term sustainability, the AEDC should focus on real estate, revenue bond projects and contracts for services on behalf of the City  Coordinate Inclusive Growth amongst departments and organizations, including projects such as:  Cultural Trust  International investment fund  South Central Waterfront  Utilize upcoming transit investments as a nexus for creating affordability and cultural programs  Support for real estate transactions and infrastructure projects of the City   Promote and support affordable housing, workforce housing, homelessness, affordable commercial space, workforce development, MWBE, and equitable financial programs Provide immediate staff support on other priority projects, in particular negotiations, as directed by Council and staff Formation with Direction A series of resolutions further clarified Council’s direction as to the nature and purpose of AEDC.  20190808-072: Authorizing the creation of the AEDC, as well as major projects to undertake (SCW, Trust)  20200326-091: Explore expanding uses of existing resources to assist COVID-impacted organizations  20200521-095: Accelerate the creation of AEDC to assist live music.  Directing the exploration of the use of city-owned property as well as a public pipeline of assets.  20200521-096: Accelerate the AEDC with a focus on assisting Red River District and exploring the use of TDR programs and regulatory changes to support music venues.  20201001-055: Creation of the AEDC, a Local Government Corporation under Subchapter D, Chapter 431, Texas Transportation Code; approving and adopting the corporation's Articles of Incorporation and Bylaws; and appointing the initial Board.  20201203-046: Repurposing HOT funds to create the Iconic Venue Fund and assigning up to $15M of those funds to AEDC to manage as a part of the Cultural Trust. Directing the expansion of the authorized use of those funds to cover “Iconic” music venues, cultural spaces, restaurants and businesses through an interpretation of an expansion of the visitor information center, as authorized by the State of Texas. Interlocal Agreement - Administrative Provides a unique partnership between the City of Austin and an autonomous agency for accomplishing a variety of community driven and City supported objectives.  20210610-011 – Authorize negotiation and execution of an interlocal agreement with the Austin Economic Development Corporation to provide assistance in engaging and supporting development projects and leveraging the City's investments or assets to achieve inclusive economic and community development outcomes and priorities, in an amount not to exceed $15,000,000.  20220929-011 – Amendment to the interlocal agreement to increase the agreement amount for administrative and program costs related to providing assistance in engaging and supporting development projects and leveraging the City's investments and assets to achieve inclusive economic and community development outcomes and priorities, in an amount not to exceed $10,590,000 for a total agreement amount not to exceed $25,590,000.  20230914-013 - Authorize negotiation and execution of an amendment to the interlocal agreement with the Austin Economic Development Corporation (AEDC) to increase funding by $10,150,000 for increased AEDC operational expenses, additional iconic music fund appropriations, and expenses necessary to implement the I-35 Central Austin Connecting Equitably Project for a total agreement amount not to exceed $35,740,000.  Rally Austin also seeks annual approvals of nominees as Board Members. Interlocal Agreement – Projects An innovative design for the City to assign work orders and transfer resources to accomplish tasks.  20211209-005 – Amendment to the interlocal agreement to provide assistance in engaging and supporting three development projects which include implementation of East 11th and 12th Streets Urban Renewal Plan Development Feasibility, I-35 Central Austin Connecting Equitable land value and future development analysis, and East 11th Street Parcel Disposition services related to the Urban Renewal Plan vision.  20221201-041 – Directing the City Manager to establish certain procedural policies to enhance the collaboration between the City and the Austin Economic Development Corporation (AEDC) and directing the City Manager to enter into negotiations with AEDC to amend the Interlocal Agreement between the City and the AEDC related to the potential redevelopment of the following City-owned properties: 505 Barton Springs Road (One Texas Center), 124 W. 8th Street, 3002 Guadalupe, and 411 Chicon.  20221208-029 – Authorize negotiation and execution of a lease agreement with the Austin Economic Development Corporation for approximately 7,006 square feet of space in the City's Permitting and Development Center located at 6310 Wilhelmina Delco Drive, Austin, Texas 78752 for an annual lease rate of $100, and approve the use of up to $2,400,000 of proceeds from Proposition B of the 2018 Bond for this project and the Millennium Youth Entertainment Complex.  20231214-009 - Authorize the use of up to $4,500,000 of proceeds of bonds approved by voters in 2018 under Proposition B (Libraries, Museums & Cultural Arts Facilities), by the Austin Economic Development Corporation for the Austin Playhouse Arts Center project. Interlocal Agreement - Projects An innovative design for the City to assign work orders and transfer resources to accomplish tasks.  20240229-017 - Authorize negotiation and execution of an amendment to the interlocal cooperation agreement with the Austin Economic Development Corporation to provide services to the Austin Convention Center Department for the development project at the Austin Convention Center site for an amount not to exceed $250,000  20240718-015 - Authorize the use of up to $5,100,000 of proceeds from bonds approved by voters in 2018 under Proposition B (Libraries, Museums & Cultural Arts Facilities) by the Austin Economic Development Corporation for cultural trust projects and real estate transactions, subject to final allocation as determined by the Austin Economic Development Corporation Board of Directors.  20240718-063 - Authorize the Urban Renewal Agency of the City of Austin (URA) to negotiate and execute all documents, agreements, and instruments necessary or desirable with a qualified applicant to develop a mixed-use project, including affordable housing and other community benefits, on approximately 2.02 acres of land within the East 11th and 12th Streets Urban Renewal Plan area located at or near the 900 and 1100 blocks of East 11th Street, Austin, Texas 78702.  20240926-069 - Approve a resolution directing the City Manager regarding the use of the historic preservation acquisition funds and collaboration with the Austin Economic Development Corporation, doing business as Rally Austin. Interlocal Agreement - Projects An innovative design for the City to assign work orders and transfer resources to accomplish tasks.  20240229-017 - Authorize negotiation and execution of an amendment to the interlocal cooperation agreement with the Austin Economic Development Corporation to provide services to the Austin Convention Center Department for the development project at the Austin Convention Center site for an amount not to exceed $250,000  20240718-015 - Authorize the use of up to $5,100,000 of proceeds from bonds approved by voters in 2018 under Proposition B (Libraries, Museums & Cultural Arts Facilities) by the Austin Economic Development Corporation for cultural trust projects and real estate transactions, subject to final allocation as determined by the Austin Economic Development Corporation Board of Directors.  20240718-063 - Authorize the Urban Renewal Agency of the City of Austin (URA) to negotiate and execute all documents, agreements, and instruments necessary or desirable with a qualified applicant to develop a mixed-use project, including affordable housing and other community benefits, on approximately 2.02 acres of land within the East 11th and 12th Streets Urban Renewal Plan area located at or near the 900 and 1100 blocks of East 11th Street, Austin, Texas 78702.  20240926-069 - Approve a resolution directing the City Manager regarding the use of the historic preservation acquisition funds and collaboration with the Austin Economic Development Corporation, doing business as Rally Austin. Value Proposition & Future Activity A Unique Development Partner Rally Austin supports the Economic Development landscape, operating at the speed of business  Facilitates and manages complicated, sensitive projects (like Block 16-18), providing space for public officials and staff  Strong support from the Board of Directors with strong relationships with a wide range of governmental and nonprofit players  Moves more nimbly than the City of Austin, with the ability to serve in both strategic and implementation roles  Ability to tap into various funding sources (internal and external), philanthropy, tax credits, etc. in a way that the City cannot  Broadening prevue to support other public/government agencies in Central Texas, with the ability to also act independently The next horizon of Rally ATX  Assessment of business model with PFM Consulting  Request of necessary adjustments and resources brought to Council with Annual Report in February 2025  Development of project financing vertical with any additional projects  Call to action: Relationship development with regional entities and national endowment/philanthropic organizations