Homeowners Meeting with Blue Ocean - Summary

Overview of Blue Ocean Meeting with the Home Owners of Canyon Creek:  

The Blue Ocean Portfolio

Link to Blue Ocean’s Presentation to Canyon Creek Homeowners

• Blue Ocean would like to purchase the Hyatt House extended stay in Richardson (Fall Creek/75). They are currently under contract to purchase with a contingency of obtaining the zoning rights to change the current 131 units in the extended stay hotel for multi-family zoning of 131 units. 
• They have two similar properties that operate under the Trellis brand, which is a new concept that they started a few years ago; TRELLIS Hunt Valley in Maryland (www.trellishuntvalley.com ) and TRELLIS North Fayette in Pittsburgh (www.trellisnorthfayette.com). Only one of those properties, the original acquisition in MD, is currently operating as intended (full conversion from extended stay to multi-family) because they are still working on renovations to get the CO’s to move forward. They purchased a similar property in North Dallas and plan for this property to be run as a multi-family community in the next 18 months. 
• Would like to renovate the current extended stay property and maintain the existing 70% Studios and 30% One Bedroom unit ratio.
• They are highly backed financially. They claim that they will invest an additional $5M into renovations for the multi-family units.
• In order to move forward with the sale of the property, they will need to obtain Zoning for multi-family from the City. A date has not been set yet for discussions with the City. 

Items of Discussion: 

• The property will provide additional housing for young professionals who want a higher tier apartment, but for a lower price than the other nearby Class A apartments
• It will provide relief for the City Police in that they will have less people living in the apartments on a yearly basis
• They will make upgrades to a facility that is currently in disrepair
• They are willing to work with the City to help with traffic calming efforts
• There is adequate parking for only one car per unit. (Technically it is 1.2 parking spaces per unit, but leases will only allow for 1 parking space per unit.)
• Concerns were raised about several people moving into the one bedroom units. (main concerns were UTD students or people trying to go to Prairie Creek Elementary.) 
• Changing the zoning to Multi-family, even though it would be tied to that particular property, still introduces entitlements that will never be able to be revoked. 

Next Steps

• The next step for Blue Ocean is to file an official Zoning change request with the City of Richardson.