Council Committee Okays TIF for 1401 Elm Redo

DALLAS-Olympic Property Partners' plan to redevelop the vacant 52-story office tower at 1401 Elm St. won unanimous approval Monday morning from the Dallas City Council's Economic Development Committee. At one time the tallest building in the US west of the Mississippi River but shuttered four years ago, the former First National Bank Tower will be revamped as a mixed-use complex, including 512 residential units.

The Dallas Morning News reported that about one-third of the $151.3 million Olympic exzpects to spend on overhauling 1401 Elm will come in the form of tax increment financing. There are numerous conditions attached to the project receiving TIF money, Karl Zavitkovsky, head of the city's Office of Economic Development, told the newspaper.

Among them, Zavitkovsky said, is a stipulation that Olympic must have all of its financing in place by the end of August. That's also when the developer needs to begin construction on the project in order to qualify for TIF.

Even so, Zavitkovsky expressed optimism that the project would move forward, and with 1.5 million square feet sitting vacant, the city has a lot at stake in its success. “It's the largest continuous block right now that's empty, so we're going to give it a shot,” said Zavitkovsky, noting that it's located atop a Dallas Area Rapid Transit stop. “That's my thinking and the thinking of the TIF board: give it a shot, but create terms that protect our downside."

The 48-year-old 1401 Elm represents “a huge amount of vacant space strategically located on the DART line, and part of our mission is to exorcise ourselves of this empty office space,” Zavitkovsky told the Morning News. “We've got a couple of buildings, both this and the Statler, which just aren't going to work as the original space. So redevelopment of both of those is a big priority.” Click here to read the complete article.