LAST DAY Dallas - ALOFT and Craig Ranch

ALOFT, a trendy, eclectic hotel situated right across from the city hall and the proposed Dallas Convention Center was a cool study in hotel development and adaptive reuse. The building ALOFT took over was a historic building meaning the developers could apply for tax credits. The negative was that they were fairly restricted in some of the renovations they wanted to do such as lights and signage on the front of the building. All cement columns were left with original paint and dirt and even original "soot" stains.
Despite the economic downturn, occupancies have come up to 65%, and hotel rates are at $110 per night. One thing all good projects seem to have in common is a great location - which ALOFT definitely has as an advantage. Also ALOFT developers emphasized the importance of the OTA (online travel agent) such as Orbitz, Priceline, Expedia etc. In fact, 8 out of 10 people shop on OTA before booking their hotel. They may not book through the OTA, but they always shop online first. The building is 158,000 sq. ft. and individual rooms are 20% larger than normal sized rooms. They got 4.2 M from a grant and 5 M in historic credits. 5 M came from equity, and the rest came from a construction loan from Hillcrest Bank. ALOFT also made concerted efforts to incorporate green and received a "silver" LEED certification.

CRAIG RANCH

A mind-blowingly huge development that could be considered a city in itself. Projected to contain 30,000 people, the development has all the amenities a person could want. They project contains a medical center, schools, various sports complexes, several different types of housing, retail, as well as industrial office buildings. In addition, "lifestyle" amenities include a hike and bike trail, community parks, baseball parks, and a full service Cooper fitness Center. Neighboring cities are in favor of the development because of the ad valorem taxes it will generate for the area. Mr. David Craig, the developer, wanted to attract corporate America, who expects "quality of life." The soft amenities he put in at the beginning, whereas other developers may have added them later he felt would be an attraction to the community and also be sources of economic growth.
When Mr. Craig was first introduced to the idea of "new urbanism" he though, "never in my lifetime!" However, after touring several such communities in Canada, he was convinced of it's effectiveness .
Mr. Craig invited city planners from Europe and other countries called an "expanded Charet" to help him plan the city. One thing he is quite proud about is the grid pattern they developed, which he says will allow the project to be sustainable over time. The plan obviously has evolved over time, but the original grid has generally stayed the same. He feels the project his cross-generational and cross- national because of it's wide appeal. Access to open spaces, and flexibility of use makes for a very attractive area.
They were able to get a Ch. 380 4a and 4b, which was described as a TIF on steroids!
One of the complications of land assemblage is the utilities and sewage issues. They own the creeks and sewage for the land as well.
The city was originally not in favor of single family housing, but after running fiscal models, realized it was a good plan.
In the deal structure, Mr. Craig partnered with Cicil van Tuyl- a giant in the auto industry but a silent partner.
Mr. Craig attributes success to his staying power, being flexible with his project,and being willing to make sacrifices. He values those who have been loyal to him, and treats people fairly. "There is nothing you can't accomplish!" he says.