Dallas, Texas: Revitalization of an Old Mall Site Addresses Socioeconomic Disparities

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Dallas, Texas: Revitalization of an Old Mall Site Addresses Socioeconomic Disparities

 

In 2009, the city of Dallas targeted Red Bird Mall, a nearly 50-year-old enclosed suburban mall in southwest Dallas, as a top priority for redevelopment. The 95-acre site sits at the junction of U.S. Highway 67 and Interstate 20 and south of Interstate 30, which separates south Dallas from the more affluent neighborhoods to the north. Southwest Dallas' history of redlining, lack of investment, and high crime rates had thwarted economic development and contributed to a negative perception of the site. In 2015, the city partnered with developer Peter Brodsky, who planned to transform the site into Reimagine RedBird, a live-work-stay-play district intended to serve south Dallas residents.

The first phase of Reimagine RedBird created 300 units of mixed-income housing through a partnership between the Dallas Housing Finance Corporation (DHFC) and international housing developer Palladium USA, Inc. The project, called Palladium RedBird, opened in 2021 and served as a catalyst for meeting the city's goal of using Reimagine RedBird to break down physical and socioeconomic barriers and foster a vibrant, inclusive community. In 2022, the development received a HOME Excellence award from the National Association of Local Housing Finance Agencies.

Palladium RedBird

Constructed on the former mall's surface parking lot, Palladium RedBird consists of 2 four-story apartment buildings with an attached parking garage on 6.3 acres and offers 210 apartments for households earning no more than 80 percent of the area median income. The remaining 90 units have no income restrictions. The energy-efficient development features a conference room, computer center, fitness center, and children's playroom. Outdoor amenities include a dog park, a gazebo, bicycle storage, and a resort-style swimming pool. The property's strategic location offers residents shopping, dining, and community amenities within walking distance. The one-, two-, and three-bedroom apartments range from 695 to 1,157 square feet and cater to households of varying sizes. Each unit includes upscale appliance packages, wood-style flooring, covered patios or balconies, and 9-foot ceilings.

Resident Services

Palladium RedBird offers a comprehensive range of resident services, including financial counseling, health care, and community events. Residents can receive professional income tax preparation services, and the development features a food pantry with nonperishable food items and essential household products. Healthcare professionals host an annual health fair at the development, and the developers have partnered with the Dallas Police Redbird Outreach Center to provide quarterly onsite activities that foster proactive interaction that enhance residents' health and safety. In addition, Palladium RedBird offers twice-monthly arts and recreational activities, such as book club meetups and writing classes. To foster community, Palladium RedBird hosts onsite social events such as potluck dinners, game nights, singalongs, movie nights, birthday parties, and holiday celebrations.

Palladium RedBird residents, many of whom struggled to access health care before moving to the development, are now steps away from essential health services at the RedBird Health Center. Children's Health, the University of Texas Southwestern Medical Center, and the Parkland Health Foundation received $500,000 from the McKesson Foundation to fund the first 2 years of the center's operation. Furthering Parkland's mission to address healthcare disparities, the 40,000-square-foot center offers pediatric, adult, and geriatric care as well as pharmacy, lab, and behavioral health services. The center will leverage technology such as telehealth and e-consults to overcome transportation barriers and achieve its goal of providing 18,000 preventive and primary care visits and 23,000 women's specialty health visits annually.

Financing

Financing for Palladium RedBird employed multiple HUD funding sources, which required the developer to provide 70 percent of the units at affordable rates (table 1). The city's Department of Housing and Neighborhood Revitalization awarded $8.3 million to the development, including $1.3 million in community development block grant funds, $5 million in HOME Investment Partnerships funds, and $2 million from other sources. DHFC served as a partner, providing $30 million in private equity bonds, and the remaining $22.7 million was funded through 4 percent low-income housing tax credits.

Reimagine RedBird

Palladium USA developed Palladium RedBird as the catalytic first phase of the larger Reimagine RedBird, a $200 million revitalization project with retail and office components. In 2014, the city designated the site as a Mall Area Redevelopment Tax Increment Financing (TIF) District, qualifying the project to receive approximately $15.6 million in tax increment financing from the city of Dallas. The financial support underscores the city's commitment to invest in underserved communities that lack access to amenities such as healthcare facilities and employment. To expand community services for south Dallas residents, Reimagine RedBird's tenants include a Starbucks Community Store, which has committed to training 100 young people in hospitality each year, and a Foot Locker Power store that hosts wellness events to promote active and healthy lifestyles. Chime Solutions, a customer contact center, plans to offer 900 jobs targeted to low-income applicants. The RedBird Innovation Center, made possible through the existing Dallas Entrepreneur Center Network, will support small businesses. Consistent with its goals for the TIF district, the city approved new access roads linking the site to public transportation routes and bus stops, which will encourage Dallas residents to visit Reimagine RedBird's retail outlets, entertainment venues, and restaurants. Goals for the TIF district include the addition of 1,620 new residential units to the old mall site, and Palladium RedBird has helped the city meet nearly 20 percent of this goal.