02.0 - Rally Austin Presentation — original pdf

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Austin City Council Members and City Manager Broadnax, February 14, 2025 On behalf of Rally Austin, I am proud to present the Fiscal Year 2024 Annual Report, a testament to our shared vision for an inclusive, culturally vibrant, and economically resilient Austin. This report highlights our collective accomplishments and demonstrates the positive momentum we’ve achieved together to advance equitable development while preserving the unique cultural identity of our city. This year, Rally Austin made significant strides, including:  Surpassing fundraising goals by 22% and securing $428,000 in investments and philanthropic contributions, empowering us to expand our impact across the community.  Cultivating a $152.2 million real estate portfolio, projecting 277,500 square feet of future affordable housing, cultural spaces, and shared-use areas designed to uplift local communities.  Supporting five creative and iconic venues, including the Museum of Human Achievement with $2.5 million in investments, reinforcing Austin's reputation as a hub for creative expression and innovation.  Advancing transformative development projects in the African American Cultural Heritage District, including Blocks 16 and 18, which will provide affordable housing, cultural hubs, and economic opportunities for the community. Looking ahead, Rally recognizes that the journey to create an equitable and thriving Austin is far from over. The demand for affordable creative and cultural spaces continues to grow, as does the need to address disparities across historically underserved neighborhoods. Rally Austin is committed to partnering with City staff to identify and prioritize new opportunities that will bring meaningful and measurable benefits to all communities. Additionally, our team is eager to collaborate with the City to:  Support the evaluation and implementation of large-scale catalytic projects that align with Austin’s growth priorities and deliver sustainable economic benefits.  Expand our efforts to preserve and develop affordable cultural spaces, ensuring that Austin’s creative identity remains accessible and inclusive.  Extend equitable development initiatives to other underserved areas, using the success of Blocks 16 and 18 as a model for future projects.  Explore innovative funding strategies and partnerships that diversify resources and reduce reliance on City funding, ensuring a regional approach and the long-term sustainability of our mission. Rally Austin remains steadfast in its mission to unite diverse voices, foster collaboration, and create a culturally resilient Austin. Together, we can preserve what makes Austin unique while shaping a future where all communities have the opportunity to thrive. Thank you for your continued support and partnership. We look forward to working closely with the City of Austin to achieve our shared goals and create positive, meaningful and lasting impact in Central Texas. Warm regards, Theresa Alvarez, President and CEO Rally Austin (512) 254-9640 info@rallyaustin.org www.rallyaustin.org P.O. Box 81847 Austin, TX 78708 Fiscal Year 2024 ANNUAL REPORT February 15, 2025 WHO WE ARE LEADING INVESTMENTS IN OUR COMMUNITY, AS A COMMUNITY MISSION Facilitating equitable development for economic growth while preserving Austin's unique culture. Rally will focus its efforts to unite and drive progress across three critical areas of development in Central Texas: VISION A culturally resilient and economically integrated Austin where diverse communities thrive without risk of displacement. ARTS, MUSIC & CULTURE COMPLETE COMMUNITIES CATALYTIC DEVELOPMENT 2 WHO WE ARE OUR COMMUNITY AT WORK Board of Directors Collaboration of community leaders and nominating bodies who represent local organizations and asset holders. 3 WHO WE ARE RALLY BOARD LEADERSHIP FY2024 Executive Committee THERESA ALVAREZ Ex-officio Board Member CARL SETTLES Board Chair TAMARA ATKINSON Board Secretary DAVID STEINWEDELL Immediate Past Board Chair TINA CANNON Board Vice Chair BRADFORD PATTERSON Real Estate Committee Chair EMMETT BELIVEAU Board Treasurer upporting Diversity, SUCHITRA GURURAJ S Equity and Inclusion Framework 4 WHO WE ARE OUR TEAM Expertise in Real Estate, Finance, Community Development and Public/Private Partnership THERESA ALVAREZ President & CEO Ex-officio Board Member LEX MILLER Equitable Development Program Manager DAVID COLLIGAN Chief Operations Officer MITCHELL O'BOYLE Accountant & Finance Manager ANNE GATLING HAYNES Chief Transactions Officer FRED EVINS Senior Project Manager 5 ORGANIZATIONAL OUTCOMES FY 2024 ORGANIZATIONAL OUTCOMES KEY ACHIEVEMENTS Rebranded to Rally Austin from AEDC Fundraising exceeded goals by 22% $428K revenue through investments and fundraising $ Expanded team and a with 3 hires dedicated City liaison Invested $2.5M in Museum of Human Achievement Developer Selected for Blocks 16 & 18 6 INVESTMENT HIGHLIGHTS RALLY AUSTIN MILESTONES Council begins to explore collaboration Austin Economic Development Corporation established Strategic Plan provides Board Structure and Mission AEDC recognized as 501c3 Non-Profit Organization $4.5M announced for Austin Playhouse $2.4M for two creative space projects on City owned property $1.6M Iconic Venue Funding for The Hole in the Wall Signed Interlocal agreement for initial projects 21-person board created, CEO and Staff search begin AEDC rebrands as Rally Austin Austin City Council Approves Developer Selection, Urban Renewal Agency recommendation for Blocks 16 & 18 $2.5M for Museum of Human Achievement Council approves a 30% increase in the Interlocal Agreement 2014 2020 2021 2022 2023 2024 Arts, Music & Culture Complete Communities Catalytic Development 7 DEVELOPMENT FOR PURPOSE Critical Areas of Development for Central Texas COMPLETE COMMUNITIES ARTS, MUSIC & CULTURE CATALYTIC DEVELOPMENT 8 DEVELOPMENT FOR PURPOSE COMPLETE COMMUNITIES Development of complete communities that improve quality of life for Austinites and focus on equitable development in underserved areas. Blocks 16 & 18 in the African American Cultural Heritage District with the Urban Renewal Board “ Philanthropic partnerships with Wells Fargo, C3 Presents, and Six Square We are proud partners of the Rally Austin team and their transformative work ensuring communities throughout Austin can flourish. — CHRIS RIOS, WELLS FARGO REGIONAL VP OF PHILANTHROPY & COMMUNITY IMPACT ” 9 DEVELOPMENT FOR PURPOSE COMPLETE COMMUNITIES BLOCKS 16 & 18 Mixed-use development for Blocks 16 and 18 on East 11th Street in the African American Cultural Heritage District, building thriving small businesses, cultural anchors and affordable housing. CITY CONTRIBUTION PROJECTED VALUE PROJECTED IMPACT Property & Seed Funds $128M $256M to $320M Anticipated development includes 180,000 SF affordable housing, 30,000 SF cultural and 14,000 SF commercial spaces. 10 DEVELOPMENT FOR PURPOSE ARTS, MUSIC & CULTURE Cultivating cultural and creative identity through initiatives that aim to provide affordable spaces for creative and cultural use. Austin Cultural Trust and initiatives focus on preserving and creating affordable creative spaces Philanthropic partnerships with Austin Community Foundation, Husch Blackwell and Texas Gas “ By helping save independent and endangered creative spaces, Rally Austin is blazing a trail that aligns with the city’s Keep Austin Weird motto. — AUSTIN MONTHLY NOVEMBER/DECEMBER 2024 ” 11 DEVELOPMENT FOR PURPOSE ARTS, MUSIC & CULTURE AUSTIN CULTURAL TRUST IMPACT $11M in five projects valued at $24.2M $11M $24.2M $48.4M to $60.5M Rally Project Value Investment Projected Economic Impact INVESTMENTS $1.6M Hole in the Wall $2M Permitting and Development Center $400K Millenium Youth Entertainment Complex $4.5M Austin Playhouse $2.5M Museum of Human Achievement $400K Millennium Youth Entertainment Complex 12 DEVELOPMENT FOR PURPOSE CATALYTIC DEVELOPMENT Leveraging large scale development projects to ensure Austin’s sustainable growth and deliver clear economic benefits to the greater community. Support research and evaluation of potential projects with large-scale, multi- million dollar infrastructure projects “ Working with partners to identify projects with long-term economic + community benefits Philanthropic partnership with the St. David’s Foundation We are energized by Rally Austin’s commitment to taking an innovative approach to development and community engagement. — REGAN GRUBER MOFFITT, VP OF COMMUNITY INVESTMENTS ST. DAVID’S FOUNDATION ” 13 DEVELOPMENT FOR PURPOSE RALLY FOR CATALYTIC DEVELOPMENT The community trusts a unique, objective and informed, professional partner seeking to achieve outcomes RALLY FACILITATION PROVIDES Delivery of community benefits directly in large scale projects Rally Austin’s role as a creative, flexible, and nimble intermediary between public and private with the community -or- Ability to leverage various funding sources and operate across public-public and public-private boundaries and provide a return for all partners Projects initiated by Rally are provided constant and consistent service delivery through changes in government Revenues from these projects to support development of community benefits 14 INVESTMENT HIGHTLIGHTS ACTIVE COMMUNITY INVESTMENT PORTFOLIO Rally Austin’s portfolio of real estate projects is valued at approximately 277,500 square feet of affordable space: $152.2M, providing an estimated • 180,000 SF Affordable housing • 70,500 SF Cultural spaces • 14,000 SF Commercial spaces • 13,000 SF Outdoor and shared spaces Key projects include mixed-use development in the African American Cultural Heritage District and securing a long -term lease for The Hole in the Wall. Arts, Music & Culture Complete Communities Catalytic Development AUSTIN PLAYHOUSE PERMITTING AND DEVELOPMENT CENTER HOLE IN THE WALL MILLENIUM YOUTH COMPLEX BLOCKS 16 & 18 MUSEUM OF HUMAN ACHIEVEMENT 15 INVESTMENT HIGHTLIGHTS ECONOMIC & COMMUNITY BENEFITS City Project Funding: ▪ Property valued at $18M ▪ $1.34M for project development ▪ $11.65M in restricted funds Leveraged Contributions: Additional $677,400 raised Community Benefits: Job creation ▪ ▪ Property value increases ▪ Tourism ▪ Cultural preservation ▪ Soul and Vitality Projected Impact $300-$380M $30.99M $677K City of Austin Project Funding Rally Leveraged Contributions Estimated from $152M in R/E Projects 16 FINANCIAL OUTLOOK ANNUAL AUDIT A clean audit for FY24 reported to Rally Austin Board of Directors by Montemayor Britton Bender, P.C. on January 29, 2025. FIVE YEAR FORECAST Reliance on City Funds Income Billable Expense Income Cultural Trust Earned Income Cultural Trust Management FY22 100% FY23 97% FY24 85% FY25 FY26 FY27 FY28 FY29 127,810 245,000 221,411 25,500 20,500 0 679,354 2,525,000 439,909 282,907 395,000 397,500 250,000 250,000 250,000 250,000 Government Contracts – Transfer from COA 811,442 3,137,028 2,592,625 2,500,000 2,500,000 Individuals Corporate or Foundation 57,000 121,500 150,000 200,000 Real Estate Transactions Total Income Total Expenses 64,150 80,000 20,000 $811,442 $3,444,028 $3,835,439 $5,750,000 $3,631,320 $868,407 $1,095,500 $667,500 $820,093 $1,493,520 $2,361,521 $3,382,253 $3,942,657 $3,772,845 $3,869,374 $3,762,942 Net Operating Income ($8,651) $1,950,508 $1,473,918 $2,367,747 ($311,337) ($2,904,438) ($2,773,874) ($3,095,442) Other Income Interest Income Total Other Income Net Other Income Net Income 14,428 458,083 490,206 498,159 320,434 366,834 279,385 $0 $0 $14,428 $14,428 $458,083 $490,206 $498,159 $320,434 $366,834 $279,385 $458,083 $490,206 $498,159 $320,434 $366,834 $279,385 ($8,651) $1,964,936 $1,932,001 $2,857,953 $186,822 ($2,584,004) ($2,407,040) ($2,816,057) 17 0 0 0 0 0 0 200,000 360,000 250,000 430,000 250,000 20,000 OUR VISION NEEDS YOU! JOIN OUR RALLY ❑ Talk to 3 people about Rally Austin and equitable development. ❑ Connect us to your network within the philanthropy and endowment space. ❑ Follow us on social media and share a post. ❑ Visit a minority/legacy business or musical venue supported by our work. ❑ Applaud our Board and Contributors for their efforts to support inclusive development. 18 JOIN OUR RALLY THINK BIG AND COLLABORATIVE WITH US Help us bring concepts to the board for a catalytic project. | @rallyatx | Rally Austin | rallyaustin.org | info@rallyaustin.org 19