If you think the City of Dallas isn't working hard to ensure the success of the Lake Highlands Town Center, think again.

The Dallas Observer recently published a story regarding the city's attempt to apply for federal grant money via HUD's Section 108 Program.

According to Prescott's Senior Managing Director, Stephanie Colovas, if approved, the funds would be used to construct the necessary parking infrastructure for the retail component of Phase I.

"In a difficult financing environment like the one we've been in for several years, this is precisely how these types of complex urban developments get structured – in a public/private partnership, by utilizing every available resource," said Colovas.

"This has been a long process, but we are committed and are working diligently to bring the Lake Highlands Town Center to fruition."

"If approved, these loan proceeds will be used to construct the Phase I retail component at Lake Highlands Town Center, which includes the grocery anchor."

"The repayment of the loan will be made from future TIF funds generated by the project."

As evidenced by the TIF Design Review Committee meetings held this summer at City Hall, the City of Dallas has historically been apprehensive to use public funds for the construction of parking for retail developments.

This, in turn, has forced developers to absorb the cost, which ultimately increases square foot lease prices for tenants.

However, after the city engaged one of the leading mixed-use development consulting firms in the country, Street Works, it became pretty clear that sentiment has somewhat changed based on advice from the firm.

As confirmed by Colovas, repayment of the HUD loan would come from TIF funds, and in reality, this is exactly what the TIF was designed to do.

Will loans for parking infrastructure help lure the developers Lake Highlands is hoping for?

Only more time will tell.

Remember: incremental tax growth through development along the Skillman TIF Corridor helps pay the bills but, at present, funds aren't available to fund further infrastructure and build-out (i.e., parking) which forces the city – and Prescott – to seek alternative financing.

In this case, it's block grants from HUD.

Stay tuned to the homepage for updates.