Dallas explores potential $1 billion loan for revamping its convention center.
The Kay Bailey Hutchison Convention Center in Dallas is set to undergo an expansive renovation and reimagining, with an anticipated completion date in 2029. The city is considering taking out a $1 billion loan to help finance the project, which is expected to cost between $3.3 billion and $3.5 billion.
This considerable increase from the initial $1.9 billion estimate in 2021 raises concerns for some city council members. A briefing held Wednesday discussed the loan proposal, with Council member Kathy Stewart expressing her surprise at the high figure. She remarked, "One billion is a big number. It's just a third of what you're projecting this to be."
In addition to the financially challenging aspect, Council member Cara Mendolsohn voiced concerns about the lack of detail in the revenue forecast for the project. Despite these reservations, the city's bond, approved by voters last year, includes the initial funding for the convention center. However, this funding won't be accessible until next year.
The proposed loan would provide the necessary capital to secure contracts for design, construction, and vendor payments, enabling the project to move forward. Dallas Chief Financial Officer Jack Ireland emphasized that borrowing for large-scale projects like this one is standard practice.
The expansion and renovation of the convention center aim to revitalize downtown Dallas and solidify the city's position as a leading destination for conventions. Preparations for the 2026 FIFA men's soccer World Cup also play a significant role in these endeavors. The facility, within which global broadcast operations for the tournament will be based, is scheduled to commence construction next summer.
In June, the city council is expected to vote on the loan. Other sources of funding for the project include grants from the North Central Texas Council of Government, proceeds from the sale of assets, an energy-efficient contract, parking revenues, and cost-sharing with the Department of Aviation.
While the project progresses, the city will also tackle funding matters for a future police academy and a police pension plan. Some have raised questions about the potential impact this additional spending might have on pension bonds, but City Manager Kimberly Bizor Tolbert asserts there is no cause for concern.
Community feedback gatherings and public workshops are ongoing to ensure involvement of minority and women-owned business enterprises (M/WBE) in subcontracting roles. Prior evaluations of over 16 expansion concepts favored the preferred design, known as Concept 15 or "Bent Bar."
Penelope Rivera of KERA serves as the breaking news reporter. If you have any tips, contact Penelope Rivera at [email protected]. Support KERA News by making a tax-deductible gift today.
- Council member Kathy Stewart's surprise at the high $1 billion loan proposal for the convention center renovation was evident, as she pointed out that it's a third of the estimated project cost.
- With concerns about the revenue forecast for the project and the potential impact on pension bonds, the city council is expected to vote on the loan in June, while also addressing funding matters for future projects like a police academy and a police pension plan.
