City Hall Roundup: Oh Boy, More Than a Year Ago?
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The Save City Hall camp may have scored a bit of a PR victory at the city manager’s expense this past week, with a recent revelation purportedly bolstering their argument that officials have been less than transparent about plans for 1500 Marilla St.
Before getting into that, though, it’s worth checking out Mayor Eric Johnson’s interview with CBS 11 about the City Hall saga. The uncanny timing of the interview’s release makes it necessary companion viewing.
City Manager Raised City Hall Relocation to Mavs CEO Over a Year Ago
Mavericks CEO Rick Welts poured some fuel on the fire Friday, telling attendees at a Greater Dallas Planning Council event that City Manager Kimberly Tolbert approached the franchise and floated the notion of 1500 Marilla St. becoming available — more than a year ago.
The revelation comes amid scrutiny of how officials have handled assessing whether City Hall is worth the cost of restoring, a process critics claim has been rushed and less than fully transparent. For months now, there’s been speculation that staff and some officials are working toward a predetermined conclusion: offloading the property to pave the way for a new Mavericks arena.
“Over a year ago, City Manager Tolbert came to us and said, ‘Look, I’ve got to move out of City Hall. I can’t afford to operate what we do in that building going forward for the taxpayers,’” Welts recounted.
“And we said, ‘Okay, you know that doesn’t have anything to do with us, but at some point in time, you’ll tell us what’s available, and then we can sit down and have a conversation about it,’” he added.
Deferred maintenance issues have been piling up at 1500 Marilla St. for years, but the issue didn’t really start getting serious attention until last summer, when council members were briefed on the city’s struggles maintaining its facilities. Then, in August, Mayor Eric Johnson created the Finance Committee, which really got the ball rolling on a possible relocation.
However, the idea that City Hall operations should be relocated so the property could be repurposed has been kicked around before, as early as 2023, in fact. Nevertheless, the Mavericks’ hunt for a new arena lends urgency to the prospect, with the team expected to make a decision on where to build by July.
The full city council voted to explore relocation and restoration options earlier this month, apparently giving officials the nod to engage in more detailed negotiations with the team.
“We are now, for the first time, able to actually enter in discussions about what a framework of a deal would look like,” Welts said on Friday. “So that was a big step, a big step in the process. We’re on the clock.”
The Mavericks’ lease at American Airlines Center expires in 2031.
In a statement to DMN, Tolbert responded to questions about a purportedly predetermined outcome by confirming meetings with both the Mavericks and the Stars about their arena needs and defending her tenure as city manager. She also said the fate of City Hall is in the hands of council members.
“We know Dallas residents are passionate about these topics, and we are working diligently to meet the demands and expectations of everyone invested in the decision-making process and to respond to the City Council’s request for additional work and more information,” she said.
Naturally, some council members — namely the ones sharing the concerns of the Save City Hall camp — were not pleased with Friday’s revelation.
“So the Dallas Mavericks CEO heard from the Dallas City Manager that she wants to move out of city hall before the city council and before any assessment was done?” Council Member Cara Mendelsohn said in a social media post. “Billions of dollars at stake. This is not how representative government should work and I have deep concerns about what is happening at city hall.”
City Deal With Dallas Wings Could Face Lawsuit
After months of uncertainty and delays related to the construction of their new practice facility, the Dallas Wings might face another obstacle: litigation.
Dallas resident Steven Nordseth reportedly gave the city notice last week that he intends to sue over an agreement that would see some $57 million in taxpayer money going to support the construction of the building.
Nordseth claimed the project would unlawfully use public funds to benefit a private enterprise and redirect hotel occupancy tax revenues that voters approved for the Kay Bailey Hutchison Convention Center redevelopment and Fair Park improvements.
As previously reported by CandysDirt.com, the city made a deal with the Wings for the team to relocate to Dallas for 15 years. Dallas Memorial Auditorium (part of the convention center project) will be the franchise’s new home once it’s fully renovated.
The city also agreed to build the team a new practice facility, which was originally planned to be built adjacent to Dallas Memorial Auditorium. Developments related to the FIFA World Cup, however, dashed those plans, so the city pivoted and moved the project to Joey Georgusis Park in West Oak Cliff.
Some council members previously expressed skepticism about the wisdom of relocating the practice facility so far from downtown.
“Spending over $55 million from the convention center construction fund to pursue an offsite facility, while a fully integrated facility at the KBHCC, proximate to the arena, remains viable, raises significant concerns on the alignment with the city’s goals for Downtown activation and fiscal responsibility,” Council Members Jesse Moreno (District 2), Kathy Stewart (District 10), and Paul Ridley (District 14) wrote in a memo obtained by WFAA last summer.
Nordseth, who believes the city shouldn’t be shelling out tens of millions of dollars to support the franchise, wants officials to rescind the original agreement and pursue lower-cost alternatives to secure the Wings. If it doesn’t within 60 days, he said he’ll sue.
“This is just so egregious. This is a case where they’re spending money to benefit a private enterprise, and there’s just not the return or benefit to the taxpayers,” Nordseth said, speaking with The Dallas Morning News.
Direct revenues from the deal were estimated at around $1.5 million per year, but an economic impact study conducted in 2022 concluded that a resident WNBA team based out of downtown would generate roughly $1 billion in spending and $19.4 million in sales and hotel tax revenues across 30 years.
DART CEO Will Not Seek Contract Extension
This past week, DART president and CEO Nadine S. Lee announced she will be departing the agency at the end of her contract, opting not to seek a continuation of her leadership role as the head of the Dallas Area Rapid Transit system.
“Nadine stepped into this role at a very challenging moment for the transit industry and helped guide DART through recovery while setting a clear strategic direction for the future,” said DART Board Chair Randall Bryant. “Her leadership strengthened operations, improved safety and reliability, and positioned DART to remain a critical mobility partner for the region.”
As previously reported by CandysDirt.com, DART has been facing a suburban revolt from member cities dissatisfied with the cost-benefit they’ve been getting from system services. Several cities had withdrawal elections scheduled for May. All but three cancelled their elections after negotiations between member cities resulted in a compromise framework that will be considered by the Texas Legislature.
“It has been the honor of my career to lead this extraordinary organization and to work alongside more than 3,800 dedicated employees who move North Texas forward every day,” Lee said. “Together, we navigated one of the most challenging periods in transit history and emerged stronger, more focused, and better positioned to serve our growing region.”
Lee has served as president and CEO since July 2021. Her current contract ends in September.
DART said recruitment efforts will begin immediately. Transition plans and the naming of an interim CEO will be announced “in the coming weeks.”
