City of Dallas preparing to scale back plans for new convention center
DALLAS - The city of Dallas may need to scale back plans for the Kay Bailey Hutchison Convention Center.
City staff told council members Tuesday that bonding estimates came in lower than originally expected, and now the city will need to take a more conservative approach when issuing debt for the convention center.
The chief financial officer for Dallas explained that the city will be seeking to issue $1.4 billion in bonds rather than the $1.5 billion approved by voters for the convention center as well as $76 million for Fair Park. That’s down from the original plans for $100 million.
Staff said that the more conservative approach would account for the possibility of a great recession or another pandemic.
But the lower bond amount means the city may need to find another funding source for a deck park over I-30 that would connect the new convention center with the Cedars neighborhood south of downtown.
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Updated Dallas convention center plans include I-30 deck park
The new deck park would be built over Interstate 30 and connect the new convention center with The Cedars neighborhood, south of Downtown Dallas.
Dallas City Councilwoman Cara Mendelsohn was the only council person to vote against sending the bond package to voters. She told city staff Tuesday that this is one of the reasons why.
"I didn't bring my list of 20 reasons. I voted against this project, but one of them is this," she said. "You don't know that that funding is there."
The city was planning to build the $3 billion convention center and deck park with the bond money and the voter-approved hotel tax increase. The CFO says seeking a smaller bond package would also allow the city to receive a better interest rate.
City staff is planning to do a new financial study to determine what if any changes to plans are necessary.