Dallas Is Spending Almost $4 Million on Economic Development Consulting Fees With HR&A Advisors
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The Dallas City Council recently tacked on $1.58 million to an existing contract with HR&A Advisors for consulting work related to the city’s Economic Development Policy. The action extended HR&A’s contract one more year to June 30, 2025, increasing the total amount from $2.3 million to $3.9 million.
The contract almost sailed through with no discussion late in the day on Feb. 14 after the city’s big-ticket item, a $1.25 billion bond election, was hashed out.
But just before the vote on the HR&A contract, District 14 Councilman Paul Ridley asked one simple question: “Can staff tell us what we’re getting for a million and a half dollars?”
Assistant City Manager Majed Al-Ghafry said the city is getting “a lot” for their money, including strategic advisory services, an economic development incentives policy, and leadership recruitment and onboarding. The consultants also are tasked with developing a cultural and historic preservation policy, implementing the Small Business Center Roadmap, and working with the Housing and Community Development departments on grants management.
HR&A Advisors was hired in 2021 to develop and implement the Dallas Economic Development Policy. The $3.9 million figure is a total amount that will be paid out through 2025, Al-Ghafry added.
HR&A Advisors to Partner With Economic Development Corporation
There appeared to be confusion around HR&A’s role in collaborating with the Dallas Economic Development Corporation.
District 13 Councilwoman Gay Donnell Willis said the vice chairwoman of the EDC didn’t appear to be aware of a plan to work with HR&A.
Al-Ghafry said that’s because specific conversations about collaboration haven’t taken place.
“One of the great things about this type of contract is … they’ve been able to jump on matters that we wanted to address immediately, because it’s an all-inclusive type of agreement,” he said. “We’ve been able to tap into them for Development Services activities. That was not part of the original contact, but it doesn’t have to be … because it’s staff augmentation.”
City Manager T.C. Broadnax said in the Valentine’s Day council meeting that he has spoken directly with EDC president John Stephens about “the utilization and partnership, and particularly the alignment and strategy and strategic advice, to align those organizations.”
The consultants can work with the EDC to amend the corporation’s interlocal agreement with the City to ensure it is aligned with Dallas’ economic development goals, Broadnax added.
“[There are] some specific projects we believe we can hand off to them that will then be worked on in tandem, with alignment with HR&A helping us develop those plans and execution,” Broadnax said.
City Officials Champion HR&A’s Work
It’s no secret that Dallas spends a hefty chunk of its $4.51 billion budget on consulting fees, but a majority of council members appear to support the contracts, touting a solid return on investment.
Mayor Pro Tem Tennell Atkins, who chairs the council’s Economic Development Committee, said it’s probably cheaper to use a consultant rather than hire all the staff needed to work collaboratively among numerous policies and implementation strategies.
Councilman Chad West said he was impressed with the work done thus far by HR&A.
“I just think it’s a beautiful marriage of staff and consultants and [The Real Estate Council] and our industry partners,” West said. “It’s worked well for economic development. I see the light at the end of the tunnel … As we roll out the six pillars of the housing policy, I think we can benefit from this high-level collaboration from nonprofits, industry, and a consultant who’s got this variety of skill sets.”
