August 24, 2010

Dear Mayor Leppert, Dallas City Councilmembers, Dallas City Manager and Assistant City Managers:

On behalf of the undersigned organizations, we would like to share our thoughts with you regarding the proposed
fee increases for the department of Sustainable Development and Construction and the office of Building
Inspection (Department). We all learned of these proposed fees at different times, albeit the majority of us
became aware only in the last couple of weeks, and we have received limited information regarding the need for
these increased fees.

These fees seem high when compared to our surrounding municipalities, and we are concerned about the impact
they could have on deterring economic development in the City of Dallas. We are particularly troubled by the
increased fees on residential and commercial historic properties, which could discourage historic preservation – a
process that is already cumbersome. As each of our organizations does a substantial amount of business with the
City, we regret we have not had more time to consider these fee increases and share our views in light of any
potential plans to utilize the new revenue.

In the limited time we have had to meet with City officials, it is our understanding that the City is planning to use
these new fees to hire additional staff to promote greater efficiency within the Department. For the past year, we
have heard from our members about their frustrations with the level of service provided and the delays in
permitting. These delays may very well be the result of the Department downsizing due to past budget cuts.
Consequently, we could support a reasonable increase in fees only if we are assured that a significant
improvement in the level of service can be provided. At a minimum, we would like to see the following changes:

1) Bring back the Expedited and Express Plan Review teams. We have learned that a plan is in place to once
again dedicate staff to providing this service. For the past year, many industry professionals were paying this fee,
but not receiving commensurate expediency;

2) Implement a process where an applicant can go back to the same staff member/building inspector for
purposes of getting their permits so as to avoid getting conflicting opinions from city staff on how to comply with
city ordinances. This will help create continuity on each project;

3) Provide for a mechanism where staff can allow a variation where strict adherence to an ordinance or rule
is impossible, impracticable, or unsafe;

4) Ensure that pre-development meetings are as constructive as possible by offering valuable feedback and
input to the applicant. Publish checklists online to help the applicant prepare for these meetings;

5) For hourly fees proposed, consider instituting a maximum cap on the total cost to the applicant. This will
provide a mechanism for checks and balances and will give the applicant some predictability for planning purposes.
Further, we have significant concerns related to an “open-ended” fee structure and the resulting negative impact it
will have on the commercial and residential real estate industry. Costly open-ended fees would discourage real
estate transactions that serve to create jobs and build the city’s tax base.
Each of our organizations shares a common thread in our missions to promote economic development. In the
spirit of partnership and cooperation, we may acquiesce to higher fees as a necessary price of doing business with
the City of Dallas if we can be assured that the level of service provided is the best it can be to promote economic
development.

In addition to our recommendations for improved service, we ask you to consider the following changes to
encourage greater public input on all policy matters:

1) Post council committee briefing agendas at least one week in advance rather than three days prior,
particularly if the meeting is held on a Monday morning, and

2) List committee agenda items with greater clarity to avoid obscuring significant policy changes on issues
that affect our industry, ie: “Proposed Fee Increases” rather than “Effective Business Strategies to Support
Sustainable Growth.”

Going forward, we hope you will continue to use us as a resource and consult with us in a timely manner, perhaps
several months prior, when making major policy changes that could have a significant impact on economic
development within the City. You may be surprised as to how receptive we can be when approached with difficult
choices that affect us all and when given sufficient information to provide appropriate feedback. As a result, you
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may avoid 11 hour requests for information. We prefer to be seen as a collaborative partner with the best
interests of the City in mind and a desire to see it grow and thrive. We appreciate your thoughtful consideration of
our recommendations.

Sincerely,

Manny Ybarra Bob Stimson

Chairman, TREC Government Affairs President, Oak Cliff Chamber of Commerce
President, Pillar Commercial

Chad Cook Carol Longacre

President, NTCAR Presiding Officer,
President, Hillwood Investment Properties Home Builders Association of Greater Dallas

Jon Napper
President, N. TX. NAIOP
Managing Partner, Courtland Development

Cc: Theresa O’Donnell, Director of Sustainable Development & Construction

Betty Antebi-Taylor, Building Official for Building Inspection Offices
Deborah Watkins, City Secretary
Tom Perkins, City Attorney