Your Primer on Today’s Finance Committee Meeting About City Hall
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Today, the Dallas City Council’s Finance Committee will convene for a briefing on the present state of 1500 Marilla St. Council members will have the opportunity to respond to staff’s presentation on City Hall and offer policy direction.
In case you don’t have time to catch the meeting online or in person, here’s a rundown on what staff are going to lay out for the men and women who will ultimately decide the fate of the historic building.
What Was Staff Asked To Do?
Last November, council members directed staff to assess what it would cost to repair City Hall; evaluate the city’s office space needs; review available office space citywide; determine if relocation should lead to leasing, buying, or building; and conduct a market study, economic impact analysis, and appraisal for the property.
The site’s economic potential will likely be heard at next week’s Economic Development Committee meeting.
Dallas Economic Development Corporation was tasked with compiling a property condition assessment with the assistance of a number of industry experts who conducted on-site, non-intrusive surveys of the property’s major systems.
Big Ticket Numbers
Anyone paying attention to local news over the past couple of days has likely seen $1 billion thrown around, but that figure includes a number of extra items — some of which may be flexible — and relies on certain assumptions.
The first big assumption is that a repair of City Hall would have to be conducted with the building vacated. Staff, with the help of industry professionals, concluded that “in-place renovation is not recommended due to increased construction cost, extended construction timeline, operational disruptions, and environmental considerations.”
Fully updating City Hall is projected to take five years and cost a minimum of $906 million due to required code and ADA upgrades, relocation expenses, and borrowing costs (interest). The corrective repairs on their own are priced at $329 million on the low end.
State of Dallas City Hall
In a nutshell, the assessment of the building found that a number of major building systems (electrical, emergency power, roof, and fire suppression) need to be replaced. Other systems, like HVAC and lighting, are in need of upgrades. And at the structural level, comprehensive waterproofing and rehabilitation of the plaza deck and elements of the underground garage need to be conducted.
An environmental site assessment conducted by CBRE also found that asbestos-containing materials were present throughout the building.
While a lot of work would need to be done, the overall structural integrity of 1500 Marilla St. appears to be sound, at least according to the limited sight surveys conducted. Water penetration is pretty widespread in the garage, and there are localized issues with the concrete and structural interfaces that need attention, but the building isn’t going to fall down anytime soon.
Check out these slides from staff’s presentation on the various deficiencies discussed in the property condition assessment report.
Office Space Needs and Challenges
The architecture and design firm Corgan assessed the office space needs of City Hall operations. Part of that effort included identifying existing pain points.
Anyone who has ever been inside 1500 Marilla St. might wonder how the building and workflow function together. While impressive and imposing from the outside, the interior poses particular challenges when it comes to security. The building layout hasn’t lent itself well to simply getting around either. Seriously, go tour City Hall if you’re not familiar with it.
Corgan noted inconsistencies and inefficiencies in the use of space, with previous space planning adjustments leading to decreased HVAC functionality.
Here are some space planning recommendations Corgan came up with as well as basic needs that must be fulfilled, whether at 1500 Marilla St. or elsewhere:
1500 Marilla St. wasn’t the only facility to be taken into account, though. Corgan also assessed the capacities necessary for municipal functions being carried out at the Oak Cliff Municipal Center.
Lease, Build, or Buy?
CBRE and OMS Strategic Advisors solicited hundreds of commercial real estate interests across the city for proposals on office space that could house City Hall operations in the event of a relocation. According to staff, they received dozens of proposals ranging from leases to new construction.
“Preliminary findings reveal acquisition (lease or purchase) to be the least costly option, with similar higher costs between renovation and new construction,” the presentation reads. “Additional City facilities, including Oak Cliff Municipal Center and the Central Service Center, are under consideration for consolidation and disposition/redevelopment to a higher & better use.”
What’s Next?
The Finance Committee will meet on Monday at noon. No doubt council members will grill staff on details from the assessment. There have been plenty of questions about the due diligence (or lack thereof) and some flat-out accusations that the city is exaggerating the building’s deficiencies and inflating repair cost estimates.
Two more meetings are lined up next week. The Economic Development Committee will meet on March 2, likely to hear about market analysis related to the site. The full city council will get a briefing two days later on March 4.
