Assistant City Manager Taps Economic Development Corporation to Investigate Stemmons Building Debacle

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Dallas Economic Development Corporation
7800 N. Stemmons Freeway

The Dallas Economic Development Corporation will conduct an investigation and evaluation to determine why city employees moved into a building on Stemmons Freeway that wasn’t up to code and did not have proper permits. 

Dallas Economic Development Corporation
Linda McMahon

In a memorandum filed Friday by Interim Assistant City Manager Robin Bentley, the Dallas mayor and City Council were advised that “staff has enlisted third-party expertise to develop a go-forward strategy for the City-owned property at 7800 N. Stemmons Freeway.”

“Last week, the EDC announced the hiring of its Chief Executive Officer, Linda McMahon, an executive with expertise in commercial real estate development,” Bentley wrote in her memo. “Given the scope of the [City’s existing interlocal agreement with the EDC] and Ms. McMahon’s relevant knowledge and expertise, the EDC is a natural partner to take on this important work.”

The Office of Economic Development will pay $100,000 for services provided by the EDC. A report is due to Interim City Manager Kimberly Bizor Tolbert by July 31, with a City Council briefing scheduled in August. 

Stemmons Freeway Facility 

The Stemmons building was purchased in 2022 for $14.2 million with another $5 million allocated for improvements and $1.5 million for furniture and moving expenses. Review expenditures related to the Stemmons Freeway building in this 21-page memo issued Friday by Assistant City Manager Majed Al-Ghafry.

About 70 employees from the Development Services Department moved out of the overcrowded Oak Cliff Municipal Center in December but complained about maintenance problems and almost three dozen fire code violations. The crew moved back to OCMC in April and the City Council’s Ad Hoc Committee on General Investigating and Ethics called a special meeting May 2 to look into the matter. 

“As elected officials, our governance role requires we understand what happened,” said District 12 Councilwoman Cara Mendelsohn, who chairs the ad hoc committee. “We must learn what’s gone wrong. Accountability is needed, and we must ensure the mistakes made do not happen again.” 

The charge to the EDC outlines four stages: fact gathering, investigation and evaluation, recommendations, and a deliverable report.

Fact Gathering

The fact-gathering phase will include interviews of city staff involved in the purchase, renovation, move to, and move out of the Stemmons facility. The EDC will engage a “qualified expert” to inspect the property and assess the condition of the exterior, the parking lot, the lobby, each of the 11 floors, the restrooms, the parking garage, common areas, all other spaces including non-leasable space, life safety systems including the fire alarm system and sprinkler systems, mechanical, plumbing, roof, HVAC/chillers, IT systems, and electrical, according to the memo. 

The EDC will create a punch list of recommended maintenance and repairs needed to complete renovations and move staff back to Stemmons. 

Investigation and Evaluation 

Bentley’s memo outlines that the EDC should engage qualified and appropriately licensed vendors as necessary to complete any missing analysis, evaluation, testing, inspection, or other analysis of the Stemmons property necessary to determine the “next steps, timeline, and budget for the deliverable.” 

Recommendations

The EDC is tasked with developing recommendations on how Dallas should proceed in order to achieve the following goals: 

  • Complete renovation of the property.
  • Secure all necessary permits, certificates of occupancy, and other regulatory approvals necessary for occupancy of the property.
  • Ensure the safety and health of City employees and other tenants of the property.
  • Move City employees into the property by a date certain.

Deliverable

The report delivered to Interim City Manager Tolbert “on or before July 31” will include the following: 

  • A complete assessment of the condition of the property including major systems (information technology, HVAC, elevator, roof, electrical, plumbing, mechanical, parking garage, exterior lighting, security system, etc.), environmental concerns, and a floor-by-floor assessment of work completed and still-to-be-completed to ensure regulatory compliance for occupancy and move in of City staff to each unleased floor by a date certain. 
  • An estimated budget and timeline to complete all of the issues identified in [the bulleted item] above. 
  • A set of recommendations framed as a “go forward plan” to complete the property renovation and move staff in by a date certain identified in the timeline. 
  • After review and approval of the report by the interim City Manager, the EDC will be available to present the report to the full City Council at a briefing meeting in August 2024.

Mendelsohn could not immediately be reached for comment over the weekend. 

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6 Comments

  1. joe on May 20, 2024 at 11:07 am

    So, they just announce the city is at a $38M shortfall, and they’re hiring MORE outside “consultants”? When is Dallas going to learn that they already have knowledgable staff, and if they listend to them in the first place, crap like this wouldn’t happen…..but management is always right, right?

    “Consultants” – just another word for “let’s hire someone to cover up our mistakes”

  2. Allan G on May 21, 2024 at 8:05 am

    Andrew Espinoza, building director, has single handed created a dumpster fire of a department. He has wasted all the department revenue, more so, has wasted money on trips and seminars… and for exactly what? Mangers that have been here for years can’t voice their opinions. Also, created numerous positions this department doesn’t need or has ever had. Too many chiefs and Not enough Indians…. Additionally, ONLY promoting staff that sticks to his agenda. Making permitting a MISERABLE. Somehow believe he’s above the city personal rules… he’s written POS where employees can’t take their hard worked time off. He needs to be removed.

  3. joe on May 21, 2024 at 1:30 pm

    Andrew Espinoza is horrible building director, who promotes ICC but can’t tell a “safe building from an unsafe building.” Who the hell wants these worthless certifications.

  4. Eddie Small on May 22, 2024 at 12:18 am

    Andrew Espinosa does not make himself available to building inspection employees. He surrounds himself with his yesmen and is oblivious to the workers that are leaving. He says to let them leave but has been unable to hire inspectors. He says he is hiring people but not the right ones. We are missing over half of the plumbing /mechanical inspectors. So his remedy is to hire third party inspectors. Our employees are so understaffed and not happy and I hear more of them are leaving. What are we to do with such a big building on N Stemmons. I guess all the chiefs will get to see the the view and make up more policies that are unbearable. Andrew just leave already!! No one wants to hear you just on mandatory quarterly meetings where we are forced to drive to hear the hot air from him. I wish Robin Bentley would come visit us and see why every is leaving!!!

  5. Donald Dixson on May 22, 2024 at 12:20 am

    Majed Al-Ghafry And Andrew Espinoza are both from San Antonio. The company who sold them 7800 n stemmons is also from San Antonio idk why council can’t put the pieces together

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