Despite Council Mandate, City Staff Didn’t Seek Alternative Funding Sources, Designs For Interstate 345

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Interstate 345 “hybrid trench” rendering

The Dallas City Council unanimously approved a “hybrid trench option” for Interstate 345 last year, with the condition that city staff explore grant funding to pay for it and design alternatives to make sure the trench was the best option. However, the council was told Wednesday that the project will cost about $600 million more than anticipated and that city staff failed to hold up its end of the bargain.  

Why Rebuild Interstate 345?

Ceason Clemens

The project boundaries extend about 2.8 miles from I-30 to Woodall Rodgers Freeway (Spur 366). TxDOT plans to trench Interstate 345 about 65 feet below ground on the east side of downtown to Deep Ellum, making way for traffic to flow on decks over the roadway. The project price tag now sits at $1.6 billion, up from $1 billion estimated last year. 

TxDOT engineer Ceason Clemens — who told council members in May 2023 that the highway department was committed to the hybrid option and wouldn’t fund an alternative — briefed the panel on Wednesday. View a copy of the slides here

Public meetings on the project are scheduled for later this month, with an environmental clearance phase beginning in the fall.

District 1 Councilman Chad West again called for independent data, noting all the information and support for the project have come entirely from TxDOT. 

“We’ve now hit the 30 percent design phase, where environmental reviews are occurring,” West said. “I’m disappointed that staff summarily dismissed my request that they seek alternative funding and designs for a restitched street network and/or tunnel design.” 

Could Interstate 345 Impact The Housing Market?

The hybrid trench option offers about 5.4 acres of surplus right-of-way between downtown and Deep Ellum that the city could purchase for housing and economic development.

But the project’s potential impact on housing doesn’t appear to be a priority, West told CandysDirt.com after Wednesday’s meeting. 

The trench option creates about 5.4 acres of right-of-way that the city can purchase for housing and economic development.

“We all agree on the removal of the elevated one-plus-mile highway, which is nearing the end of its useful life,” West said. “We disagree on what happens next. City staff, council members, our business leaders, and nonprofit partners all seem content with TxDOT’s plan to construct a trench similar to Highway 75, with hopes of building a deck park to connect the neighborhoods. I believe we can do better, much better.”

Assistant Housing Director Thor Erickson said Interstates 345 and 30 are within an equity target area identified in the city’s housing policy. 

“There’s alignment [so] whenever a major transportation project is happening within one of our major target areas, we can look at housing opportunities,” he said. “One of the things we’ve been doing across departments is looking for mixed-income, mixed-use opportunities within this general area so we can ensure that wherever there can be new development in relation to the project, we can have affordable units as part of that.” 

The area has some good opportunities for mixed-use and walkability, Erickson added. He confirmed he was not asked for an expert opinion on which option would be best from a housing perspective. 

Chief Planner Arturo Del Castillo said the hybrid option is “the one that gives us the best opportunity to help restore the grid and help get some developable surplus land to make those connections a lot better than they are currently.” 

Why Did Staff Ignore Requests For Alternatives? 

Deputy City Manager Robert Perez said staff “looked at” applying to the U.S. Department of Transportation’s Reconnecting Communities grant, as outlined in the May 2023 council resolution. However, they didn’t pursue it because they didn’t want to compete with the North Central Texas Council of Government’s bid for the same opportunity.

City staff did not pursue alternative funding options.

“Even if we did submit this grant, the challenge would be getting TxDOT’s approval to actually look at an alternative use for I-345,” Perez said.

He later said that, to date, was the only federal grant that his staff looked into. 

Design alternatives and independent studies also appeared to fall by the wayside. 

In response to a question from West, Clemens said TxDOT did conduct an economic impact feasibility study for alternative options. It’s been available on the TxDOT website for months, Clemens said, and a PDF was provided to council members via email during Wednesday’s briefing. 

“We worked with city staff on land uses, future land uses, tax revenue, as well as property values,” she said. 

West questioned why the city didn’t conduct its own economic feasibility studies on alternative options. 

“TxDOT and [North Central Texas Council of Governments Transportation Director] Michael Morris are pulling the city along in their efforts to trench the highway – and all of the data Council is basing our decisions and support on are coming from TXDOT,” West said. “We really need independent data and design suggestions.”    

District 2 Councilman Jesse Moreno asked what other funding sources were available, pointing out that perhaps funds from the Deep Ellum Tax Increment Financing District could be used. 

Perez said there is another round of grants that will become available later this year. 

“There’s nothing budgeted right now that we could consider as far as additional funding for this,” Perez said. 

An independent study would cost up to $1 million, Perez added. 

Public meetings on the project are scheduled later this month.

Could Council Repeal The Resolution of Support For The Hybrid Trench?

West inquired Wednesday about the process for council members who want to change their support of the resolution unanimously approved in May. 

City Attorney Tammy Palomino said they would have to suspend the rules, make a motion for reconsideration, and then bring the item back before the council for another vote. A council committee could also request that the item be amended or repealed.  

It’s unclear whether there will be an effort to repeal the resolution passed last year. The March 6 meeting was just a briefing; no vote was taken. 

It was clear, however, that West was disappointed in how the project had been handled. 

“If TxDOT wants to build this, it seems like the train’s already moving in that direction,” he said. “Does it matter what city policies we have in place? If moving cars is a priority, why are you even going through the motions?”

Clemens said TxDOT is not simply going through the motions and the project will be a lot better than what exists today. 

West said that during the last briefing in May 2023, city staff members and transportation officials lauded the importance of connectivity, public safety, and placemaking. Now there’s no pushback for a better plan, he said. “I feel like the city’s given up on this.”

April Towery covers Dallas City Hall and is an assistant editor for CandysDirt.com. She studied journalism at Texas A&M University and has been an award-winning reporter and editor for more than 25 years.

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