Questions Linger After Kay Bailey Hutchison Convention Center Master Plan Briefing

A $3 billion reconstruction of the Kay Bailey Hutchison Convention Center Dallas is on the horizon, and elected officials have a lot of unanswered questions. 

During a Feb. 7 joint meeting of the city’s Transportation and Infrastructure and Economic Development committees, the Dallas City Councilmember and voters who approved Proposition A in November got a first look at the convention center master plan. 

Proposition A — a 2 percent increase in hotel occupancy taxes — is expected to garner about $1.5 billion for the convention center and Fair Park upgrades. The remaining funding will come from a “project financing zone,” incremental state hotel taxes redirected to the City of Dallas. 

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Director of Convention and Event Services Rosa Fleming reviewed the project’s financing structure and timeline. 

A project manager will be hired to ensure that the construction of the convention center is complete by 2028, with the surrounding area developed in 2029 and 2030.  

City officials agree that this is much more than remodeling the convention center, which was originally built in 1957 as the Dallas Memorial Auditorium. It could result in the creation of a whole new neighborhood and serve as a major catalyst for economic development. 

Due to time constraints during the Feb. 7 gathering, committee members agreed to submit questions by email. Fleming and Assistant City Manager Majed Al-Ghafry said responses would be issued by memo. 

City manager memos are posted online on Fridays and often include correspondence from other department directors. 

Project Financing

The “investment level” for the project is about $3 billion, Fleming said, adding that actual costs are assessed when design and architecture engineering is done. 

“That number doesn’t include debt service, but the amount of money we’re projecting to bring in covers that spread for any debt service,” Fleming said. 

In response to a question from District 12 Councilwoman Cara Mendelsohn, Fleming said the investment level covers $200 million that will be rolled in from existing debt on the convention center. 

“All in, you think this is going to cost $3 billion?” Mendelsohn asked. 

Fleming clarified that her projections did not include some planned transportation projects and connections. 

“We’re going to get the best value and the best project for the city,” she said. 

Mendelsohn previously raised concerns about how the project costs will be covered if the hotel occupancy tax increase doesn’t net enough to cover the upgrades approved by voters.

The councilwoman also inquired at the Feb. 7 meeting how the project will activate downtown.

“All of the focus seems to be on The Cedars,” she said. 

Housing And Transportation

District 7 Councilman Adam Bazaldua requested more information on how housing will be developed on open parcels in the surrounding area. About 30 acres of developable land is identified in the master plan, a selling point supporters used to promote Prop A. 

“We could be looking at infrastructure investment toward development,” Bazaldua said. 

He further questioned the analysis that identified the best use of Dallas Memorial Auditorium is a sports venue. He suggested that the auditorium is historically significant as a concert hall. 

Fleming said the analysis was primarily revenue-driven and it would be a multi-use venue. The price tag for just the auditorium is about $150 million but some of those dollars can be recaptured through revenues, she said. 

District 1 Councilman Chad West wanted more information on transportation and how the convention center plan corresponds with Downtown Dallas Inc.’s Downtown 360 Plan. 

West suggested that now is a good time for the city to commit to bicycle and pedestrian trails throughout downtown. 

“We don’t even have a discussion about that,” he said. “It’s built for cars in Dallas. This is an opportunity to kick-start it at the convention center, where we’re redesigning the grid in some ways. I’d love to see us get creative and get out of the car-centric mentality, especially since we’re going to want a lot of people walking around downtown.” 

Al-Ghafry said the city’s bike plan is still being developed. 

“The intent is to have separate, dedicated bike lanes,” he said. “We paused it to make sure it integrates well into the convention center. We’re making sure there’s no waste of taxpayer money.” 

District 6 Councilman Omar Narvaez asked for more information about environmental quality and suggested a dashboard showing project and expenditure updates to ensure transparency. 

“If we’re going to spend $3 billion, there’s no reason that this facility shouldn’t have platinum [Leadership in Energy and Environmental Design] certification,” he said. 

District 11 Councilwoman Jaynie Schultz asked for a separate presentation on Fair Park and other entities that will be impacted by construction. 

District 2 Councilman Jesse Moreno said it was imperative that the project benefits Dallas residents and tourists. 

“We want the tourism to come and we want people to see what we have to offer in Dallas, so the green space and the public parkways are essential needs for the community in the southern part of Dallas,” he said. 

Watch the meeting online on the Dallas City News Network.