Falcon's Lair In The News

Unilever Making Use of Additional Space

Mesquite News, May 6, 2004

Unilever's 442,000 square foot distibution center . . . might not be enough space. City of Mesquite Manager for Economic Development Tom Palmer said the company is utilizing 100,000 square feet in a temporary location. . . . Palmer said the fact that Unilever needs more space in less than a year after arriving in Mesquite is a positive sign. "It is a great indicator that we have a good market," he said. . . . "We're basically out of space when we have someone coming to town," Palmer said.

However, help is on the way . . . Falcon's Lair South will add several hundred acres of development to the area . . . In fact, Palmer recalled a visit by an international firm looking to relocate into Falcon's Lair right then . . . "We're pretty excited about the Falcon's Lair project coming on line," Palmer said.

City Takes on Slightly More Risk in Project

Dallas Morning News, Jan 8, 2004

The City and its taxpayers are assuming greater financial risk to keep the Falcon’s Lair development on track in southeast Mesquite. As part of a measure approved . . . this week, Mesquite is giving up its position in line to be repaid for an investment of up to $10 million. But the risk is minimal, Mayor Mike Anderson said.

The new agreement requires that the bondholders be repaid first before the City, which had been first in line.. . . Under the agreement, the City is to pay for road improvements, including the new Interstate 20 interchange.

Developers normally pay for road improvements, but City leaders said Mesquite needs Falcon’s Lair. “We’ve had a lot of discussion on this item. We see the project as the future for jobs and growth in our community,” Mr. Anderson said. Council member John Monaco agreed. “It’s going to add 8.8 million square feet of primarily industrial area,” he said. Mr. Monaco said the City needs to find ways to shift its tax revenue base somewhat from retail to industrial businesses.

Mr. Monaco said the City’s options for attracting industry are diminishing. City economic development director Tom Palmer “informed us two weeks ago that the City has no more large parcels for industry – we’re out of dirt for our clients,” he said.

Mr. Paschall said he, too, sees the potential for the City. “This is a project beyond anything we’ve done,” he said. “The City could benefit tremendously from this project.”

Crossing the "T" on the TIF
From the City Council Notebook

Mesquite News, Oct 10, 2002

The city finalized the master development agreement for the Falcon's Lair project; and although Falcon's Lair has kind of taken a back seat to the Lucas Farms discussions, it remains a critical project for the city.

The city and the developer helped create a 25-year Tax Increment Finance district for the project — particularly as it pertains to the business park portion of the overall plan.

The long term benefit to the city will be that several acres of what was once considered undevelopable flood plain land will host significant development on both sides of Interstate 20.

It is also estimated that over the course of the TIF, $179 million in revenue will be returned to the city.

"As the city approaches build out, it becomes important to find new sources of revenue," said Councilor David Paschall. "This project takes a step toward doing that. It also will be perhaps the first domino to fall in fueling development along the Trinity River going east."

Paschall added the project could conceivably become the envy of the Metroplex with its 490 acres for new commercial developments.

"Before the first shovel of dirt has been turned out there, it is also attracting attention from significant builders and companies," he said.

Falcon's Lair Plan Passes

Mesquite News, May 23, 2002

Steve van Amburgh, CEO of Koll Development, which will develop the project, said Falcon's Lair South has the potential to become one of the nation's most sought-after sites. "Nationwide, there is not a better location in the country," van Amburgh said. "Companies are more interested in consolidating their facilities to economize, and parks in the Central Time Zone are the parks of choice."

"If we had the land available today, we would have two, three interested A-plus groups wanting to look at it." Van Amburgh reiterated that Koll will not sell its interest in Falcon's Lair.

"We'll be here until it's successful," he said. "That's a promise."

City to Share Business Park Cost: Up to $10 Million Pledged to Build Interchange on I-20

Dallas Morning News, May 23, 2002

The Mesquite City Council cinched a deal this week to spend as much as $10 million to boost a planned business park that official expect, in turn, to boost the city and its tax base.

The public money would pay for an Interstate 20 interchange that would provide access to the planned Falcon's Lair South business park east of Lumley Road.

City officials say the interchange should also persuade planners to route Loop 9, a major road proposed for construction in a decade or so, through the location, making it a major crossroads that would be good for business.

Steve van Amburgh, president and chief executive of Koll Development Company... said the location off I-20 would be attractive to prospective tenants.

"I will tell you that nationwide there's probably not a better location for a business, industrial, logistics park," he said.

...Council member David Paschall, who chairs the Falcon's Lair Tax Increment Finance Board, voiced total support for the project, which would be developed by Koll and Alpert Capital, Ltd ...Mr. Paschall said he was confident because of Koll's national reputation for developing viable industrial parks, such as CentrePort near Dallas/Ft. Worth International Airport.

...Mr. van Amburgh, the Koll executive, emphasized the company's commitment to Mesquite and to Falcon's Lair South. "We're going to be here until it's successful, and that's a promise from us," he said.

Mr. van Amburgh said the location would please prospective tenants.

"Most of the companies we deal with are more interested today in consolidating facilities to help their supply chains," he said. "And as a result, parks that are next to major thoroughfares and interstate highways, especially in large metropolitan areas and the Central Time zone, are the business parks of choice."

"If we had this property available today for development," he said, "I would tell you there would probably be two or three very high-end, A-plus interested groups..."

Mayor Mike Anderson said Koll's involvement had won support from the majority of the council. "We've had a lot of confidence in this project," he said.

New Interchange Plan Praised
Dallas Morning News, April 18, 2002

"Mayor Mike Anderson . . . said, 'This will be the beginning, in my opinion, of an I-20 east business corridor, a dream for years, a new industrial corridor along a freeway.'"

Mesquite Development
by Steve Brown

Dallas Morning News , Feb 15, 2002

The developer of the 1,191-acre Falcon's Lair community in Mesquite has signed an agreement with Koll Development Co. to market the commercial sections of the project.

Koll Development will hunt for commercial buyers and corporations for 626 acres in the community along interstate 20.

"Koll's development of the last major tract will complete the Falcon's Lair project," said Spencer Alpert, the developer who started the project in 1984.

Toby Grove, division president of Koll Development, said: "We plan to initially develop a 180-acre business park on the portion along interstate 20.

"Our subsequent development plans include retail, office and single-family development projects," he said.

At the same time Alpert Capital, Ltd. announced its new deal with Koll, the company was completing a new agreement with Hillwood Development.

The real estate firm owned by Dallas businessman Ross Perot, Jr. will market a 60-acre apartment and retail site in the northern portion of Falcon's Lair along Lawson Road.

The property is next to 148 acres that Hillwood acquired last fall for residential lot development.

Hillwood Sells Skyline II and III to RREEF
GlobeSt.com, Jan 29, 2002

Mesquite, TX — Dallas' Hillwood Investment Properties has sold its Skyline II and Skyline III buildings to California-based Rreef Funds for an undisclosed amount. The properties are part of Hillwood's planned five-building, 1.7 million sq. ft. Skyline Business Park complex and are fully leased. "Right now, the fundamentals of select industrial are very attractive," RREEF vice president of corporate communications Cindy Talmadtge tells GolbeSt.com. Hillwood Investments president Todd Platt says, "Over the last year, Mesquite has come into its own as a validated distribution location, primarily because of the tax mileage rate, the labor base, and the ease of working with the city." He notes that the town's proximity to Interstate 20 and Interstate 30 is a great advantage, as well.

Hillwood Buys into Falcon's Lair
By Dave Sorter, News editor

Mesquite News, Nov 12, 2001

Spencer Alpert's 17-year dream of building Mesquite's first "planned community" is finally coming true. On Thursday, Hillwood Residential - another company in the same family as the firm developing Mesquite's Skyline Business Park - closed on the purchase of 24 acres of land in Alpert's Falcon's Lair development. That was on top of 83 acres Hillwood purchased in October. Hillwood has the option to purchase another 41 acres, which Alpert believes will close in March.

"We've always needed a major name developer," Alpert said. "Not only for the money, but for the credibility it brings and seeing my dream of building Mesquite's first planned community realized."

Alpert also said the closings were significant in that they occurred after the Sept. 11 terrorist attacks and the resulting economic problems.

Hillwood's total of 148 acres - if the March closing goes through - will be used for single-family homes priced from $130,000 to $300,000 on the northern tract of Falcon's Lair. That's centered at Cartwright and Lawson roads. Hillwood has already begun work an extending Cartwright Road and will also extend Clay-Mathis Road.

"We are really excited to add Falcon's Lair to our stable of upscale residential communities," said Fred Balda, president of Hillwood Residential. "It's unusual to find a rustic, country setting in such a forward looking community as Mesquite, with excellent schools and great access to shopping, restaurants, entertainment and job centers."

In fact, Hillwood's relationship with the city of Mesquite developed through work on Skyline Business Park was part of its attraction to Falcon's Lair.

"A key for Hillwood was that they knew people on city staff and had a good, trusting relationship with them," Alpert said.

The homes on Hillwood's property will be built by Standard Pacific Homes, Highland Homes, BR Horton Homes and a fourth builder yet to be announced. When combined with the 30 acres bought by Engle Homes in
November 1999, on which infrastructure is now being built, the single family portion of Falcon's Lair North will be bought out.

The remaining 400 or so acres on the north tract will be earmarked for 1300 apartment units and town homes, and some community retail, Alpert said. The apartments will be situated along the East Trinity Regional Park, which will include trails and views of North Mesquite Creek and the East Fork of the Trinity River, and should not cause the consternation that recent new apartment projects have caused.

"Where multifamily developments have been controversial because they're in mature neighborhoods, we think Falcon's Lair adapts nicely to multifamily," Alpert said. Though the apartment communities will abut single family subdivisions - as did the Alexan at Town East and Central Park complexes that generated protest and debate - "They're all part of the planned community," he said. 'The owners of the homes will know what's planned. I don't think the homeowners In the mature neighborhoods really knew what was planned next to them."

Now that the northern tract is on Its way, Alpert said he is turning his attention to the southern tract, another 600 acres bisected by Interstate 20. That portion will likely be dominated by a business/industrial park.
"We're talking to major developers about the business part," Alpert said. A Tax Increment Financing District approved by the city and the Mesquite ISO in 1999 will be an incentive for developers, he added.

Alpert did not say whether one of those developers might be Hillwood Investments for a Skyline II.

The development of Falcon's Lair has been 17 years in the making.

"We originally conceived the Falcon's Lair project In the 1980s as Mesquite's first planned community," Alpert said. He had retained Robert Trent Jones Sr. to build an upscale golf course, with the residential area to be planned around it.

But the real-estate/oil crash of the mid-1980s caused the project to be put on hold. Alpert finally sold the land to the savings and loans that were financing it because they didn't want to fund it anymore.

Eventually, Mesquite's Bill White bought the land from the S&L's successor banks in order to keep it out of the hands of other developers, Alpert said. In 1997, Alpert was able to buy it back. Since then, he has been working with the city to change zoning where necessary and seeking to attract builders.

"Its been," Alpert said, "a labor of love for me since I got involved in it in 1984."

Business Park May Aid Schools, Official Predicts
By Terri Williams

Dallas Morning News, Jul 26, 2000

MESQUITE - If the Falcon's Lair business park takes off, it will bring big bucks to the school district, the city's economic development director told school officials.

Economic Development Director Tom Palmer spoke to the Mesquite school board on Monday night about the City Council's approval last week of the south tract of the Falcon's Lair development, which will be located off Interstate 20 near Lumley Road in southeast Mesquite.

The council unanimously approved the rezoning request of Dallas developer Spencer Alpert of Alpert Capital Ltd. Mr. Alpert plans to build a 250-acre business park, executive-style apartments and townhouses, as well as single-family homes. The entire south tract development is about 600 acres.

Mr. Palmer said that the school district wins for two reasons: The schools won't have as many children added to their enrollment, and the business district could bring more tax revenue for the schools.

"We think the payback will be greater having the business park there," Mr. Palmer told the board. "They [city officials] anticipate this to be the front door to Mesquite."

Initially, Mr. Alpert wanted to build more apartments, but the council requested that the developer decrease the density to appease nearby residents who want to preserve the quiet, country atmosphere in southeast Mesquite.

Houses are under construction at the north tract of Falcon's Lair and will be complete by next year.

The entire Falcon's Lair development will take about 10 years to complete, Mr. Alpert said last week.

Mr. Palmer and city officials are counting on the tax increment finance district that's designated within parts of the business park to make the park a success. Such districts collect taxes to reimburse private developers for improvements the developers make near the district.

In the case of Falcon's Lair, Mr. Alpert plans to construct an interchange near Interstate 20 that would be similar to the interchange at US Highway 80 and Buckner Boulevard, Mr. Palmer said.

In an interview, Mr. Palmer explained that Mesquite probably would not have been able to complete a deal with Mr. Alpert without having the tax increment district in place. Most in the private sector want assurances that they will be reimbursed for making certain public improvements.

However, there's a risk to the developer, Mr. Palmer said. It's the developer's responsibility to make the business park and residential development a success in order to expand the tax- base, taxes that he'll later recoup from the tax increment fund, he said.

Mesquite has used two other such districts for major developments.

The first tax increment district is located around the Hampton Inn and Suites, the Mesquite Convention Center, rodeo and athletic facilities for the schools, and the vacant land around it, Mr. Palmer said.

The second tax increment district has boundaries of Gus Thomasson Road on the west; Town East Boulevard on the north; Towne Centre on the east and US 80 on the south.

Most on the school board seemed pleased with the plan. Some members asked Mr. Palmer whether the city had found any tenants for the business park. Mr. Palmer said he was talking to a number of high-end businesses.

He did not disclose the names of the companies.

Dr. John Horn, superintendent for Mesquite schools, said the prospect for new development is good news. "I'm glad to hear some positive news about economic development," Dr. Horn said.