Arlington City Council Special Meeting - August 26, 2025

The Arlington City Council convened in a special meeting on August 26, 2025, at 1:00 p.m. in the Council Briefing Room. The meeting included an executive session from 1:40 p.m. to 2:29 p.m., followed by open session discussions on the FY2026 audit plan, the West Airport Development/E-Space project, Fielder Square redevelopment, Choctaw Stadium updates, and the FY2026 budget. No public comments were made. The meeting recessed at 3:44 p.m., reconvened at 3:52 p.m., and adjourned at 4:55 p.m.

Executive Session (1:40 p.m. – 2:29 p.m.)

• Discussed matters under Texas Government Code Sections 551.071 (consultation with attorney), 551.072 (real property deliberation), and 551.087 (economic development negotiations). Items included:
  • Division Street TxDOT Sidewalk Project (Cooper to Collins) – fee acquisitions and condemnation actions for tracts at 101 and 107 West Division Street.
  • Offers of incentives to business prospects.

Discussion Items

3.1 – Fiscal Year 2026 Annual Audit Plan

• Presenter: Susan Edwards, City Auditor. Presented the proposed audit plan for FY2026, including audits of Arlington Water Utilities, civil service, contract management, IT department, segregation of duties in Workday, TIFMAS deployments, and construction audits. Also planned: fraud hotline monitoring, peer review, and follow-up audits on fleet services, airport, managed print, and real estate. Councilmember Dr. Odom-Wesley asked about the trigger for external audits; Edwards clarified they assist with the annual financial audit and facilitate construction audits with external firms. No further questions.

3.2 – West Airport Development/E-Space Update

• Presenter: Lyndsay Mitchell, Director of Strategic Initiatives. Updated on the E-Space North American headquarters project at the west side of Arlington Municipal Airport. E-Space (global satellite manufacturer) moved headquarters to Arlington in October 2024, now has 35 employees. The project will bring up to 2,000 high-wage jobs (avg. salary $95,000) over 30 years, with an estimated $8 billion in wages and $560 million in taxable sales. The EDC will provide up to $115 million for construction; E-Space will provide ~$100 million in tenant improvements. The EDC will own the vertical improvements; E-Space will lease for 30 years (base rent $9/sq ft). Five action items were on the evening agenda: development agreement, leases, construction packages with Moss & Associates ($13.4M initial), Hill Building Group ($700K), Gensler ($436,760), and a Chapter 380 agreement for $1.2M in water utility funding. Councilmember Boxall praised the project and the city’s partnership. Breaking ground expected early September 2025, completion spring 2027.

3.3 – Fielder Square Redevelopment

• Presenters: Deputy City Manager Lemuel Randolph and Mindy Cochran, Executive Director of Arlington Housing Authority. Proposed city purchase of Arlington Village Apartments (278 units, built 1973) for $32.6 million to demolish and redevelop into multi-family housing and a child care campus. The complex is 91% occupied; leases will be honored (last expires July 2026). A relocation specialist will assist tenants. The site is in a challenged census tract (high EMS calls, low library card usage). Councilmembers Piel, Boxall, and Odom-Wesley strongly supported the opportunity to address substandard housing. Councilmember Piel called the complex “a black hole… sucking in poverty.” City Manager Yelverton noted the anticipated Arlington Tomorrow Foundation grant will not be pursued; staff will explore other tools (Housing Finance Corp., EDC). Four items were on the evening agenda: removal of items 13A-C and tabling of 13D. Council expressed interest in proceeding.

3.4 – Choctaw Stadium Update

• Presenter: Trey Yelverton, City Manager. Briefed on recent and upcoming changes: new tenants (Starbucks, Casey Bootmaker, Lone Star Dry Goods, El Tiempo Cantina, Hearsay), a police storefront (next 45 days), a sports memorabilia store, and continued build-out of Spark co-working. New digital signage on southwest corner. On the field, AISD soccer/rugby and UFL have used the stadium but with modest crowds; soccer moving to Mansfield. The interior and 16-acre field area remain under study with Rangers for long-term highest use. Councilmember Gonzalez asked about parking for retailers; Yelverton said the team is exploring options, including adding spaces near Nolan Ryan area.

4.1 – CIPAC July 2025 Semi-Annual Report

• Presenter: Tharani Devi Palma, Principal Planner. Corrected map error on page 8 (Bardin Road to SE Green Oaks Blvd). Councilmember Odom-Wesley asked about impact fees relative to other cities; staff said they use 2017 fees, no comparison available. Odom-Wesley noted a 128% increase in fee collections; Yelverton explained it reflects building permit activity, and the city’s 50% cost share is balanced.

4.2 – Community and Neighborhood Development: Multi-Family Inspections

• Report by: Councilmember Boxall, Chair. Committee reviewed the city’s program and requested further information on requiring improvements, adoption of International Property Maintenance Code (IPMC), and how other cities customize it. Councilmember Piel advocated for the most stringent standards in Texas. Councilmember Odom-Wesley asked about incentives for training attendance (66% compliance); staff noted potential to revoke certificates of occupancy. Discussion included publicizing inspection ratings. Councilmember Hogg supported transparency and balancing carrots and sticks.

4.3 – Economic Development Committee

• Report by: Councilmember Piel, Chair. All matters discussed in executive session.

4.4 – Appointments to Boards and Commissions

• Three appointments on the evening agenda.

4.5 – External Committee and Training Reports

• Regional Transportation Council: Councilmember Gonzalez reported on August 7 meeting: approved new DBE goal, $17.8B unified transportation program, letter opposing federal prohibition on Dallas-Houston high-speed rail funding, and formed transit subcommittee. Gonzalez volunteered for subcommittee.
• Arlington CVB Board: Councilmember Hogg reported near-record hotel rentals, FY2026 budget approved, and strategic planning underway.

4.6 – Legislative Update

• Presenter: Natalie Raulston, Intergovernmental Relations Manager. Second called special session with 24 topics. Highlighted SB 10 (lowering voter approval tax rate from 3.5% to 2.5% or 1% as amended); awaiting Senate action. Councilmember Hogg asked about exceptions for police/fire; Raulston was not fully briefed.

4.7 – Fiscal Year 2026 Budget Discussion

• Presenters: Trey Yelverton, Jay Warren, Eyvon McHaney. Follow-up on prior inquiries. Topics included federal lobbying contract ($72K/year with Capitol Edge, value shown), volunteer program (53,000 hours valued at $1.4M), compensation (proposed 3% across-the-board; staff currently 0.14% above market, with 3% would be 0.9% below; market average raise 3.63%). Yelverton presented scenarios: 0% raise saves $6.9M, 3-month delay saves $1.7M, 6-month delay saves $3.4M. He recommended staying with 3% to avoid future lag. Code compliance: clarified that multi-family inspection fees cover 100% of program costs; fines go to general revenue. 343 properties, 456 citations, $56K collected. Neighborhood code: 30 FTEs, 30K calls, 8,600 notices, 2,600 citations. Good news: $244K in additional revenue/ savings (fire fee adjustments, appraisal district reduction, downtown corp savings), equivalent to 0.07 cent on tax rate – could reduce rate to 2.93 or fund streets. Councilmember Pham supported the 3% raise. Councilmember Gonzalez highlighted town hall feedback favoring services and street maintenance. No final decisions; further work session scheduled.

4.8 – Evening Agenda Items

• Item 8.22 – UDC Amendments: Final reading; minor cleanup items. Councilmember Odom-Wesley asked for a presentation; staff confirmed no additional presentation needed.
• Item 13.2 – Shades Valley Golf Corporation: Councilmember Pham requested clarification on the incentive recapture penalty. Lyndsay Mitchell explained: if the golf course returns to fully private operation during the 10-year term, a $650,000 penalty plus full recapture of grant funds applies. Councilmember Hogg asked about board approval and reporting; the owner said positive member feedback, board informed, and will report back to council on project details.

4.10 – Future Agenda Items

• Councilmember Galante requested a staff report on the impact of Senate Bill 857 (towing regulations).

Key Outcomes

• The council discussed but took no formal votes during the work session. The evening agenda (7:00 p.m.) was expected to include action items: e-Space development agreements and related contracts, Fielder Square redevelopment authorizations (removal of items 13A-C, tabling 13D), UDC amendments (final reading), Shades Valley Golf incentive agreement, and board appointments.
• Budget discussions will continue at the next work session (likely September 2, 2025) with a deeper dive on road maintenance.
• Staff directed to bring back information on multi-family inspection code options and to report on Shades Valley Golf project specifics.
• A staff report on SB 857 impact on towing policies was requested for a future meeting.