Dallas City Council considers $1B short-term loan to kickstart convention center renovation
Dallas considers $1B convention center renovation
The city of Dallas unveiled beautiful new renderings for the reconstruction of the Kay Bailey Hutchinson Convention Center. But the plans do come with an increasing price tag that concerns some city council members.
DALLAS - The city of Dallas unveiled beautiful new renderings for the reconstruction of the Kay Bailey Hutchinson Convention Center.
But the plans do come with an increasing price tag that concerns some city council members.
Dallas Convention Center Renovations
What we know:
The Dallas City Council is being asked to approve a $1 billion short-term loan to get the early stages of construction started on the Kay Bailey Hutchinson Convention Center.
The latest renderings are stunning, and project leaders believe the convention center will be the next great district in Dallas.
But a short-term financing loan is necessary to get the work started in time for the convention center to serve as the FIFA World Cup International Broadcast Center, according to Dallas CFO Jack Ireland.
"This is not an additional $1 billion. This is not because there is a shortall of $1 billion. This is simply interim financing until we take out long-term debt," he said.
Ireland said that with unknowns about the final costs, the city is not yet ready to issue long-term bonds. That’s something expected in June of next year.
"It is a tool that is frequently used. It is especially used on large projects. I think this qualifies as a large project. And it is necessary to have funding available to get the project started before we are able to issue all the bonds," he said.
Construction begins on Kay Bailey Hutchison Convention Center expansion
The Kay Bailey Hutchison Convention Center in Dallas is about to get a multi-billion dollar facelift.
What they're saying:
"The money that’s going to be spent over the next really 10-12 months will be for FIFA and getting the convention center the first part of it razed. And in that is also the ordering of steel, etc. So you’re getting ready to get fixed prices about a year from right now," said Jack Matthews, the president of Inspire Dallas.
"We understand the amount of steel that we need. We understand the amount of some of the other products that we need. And to hold pricing before we start to get into these tariffs issues that will cause what you talked about in terms of price escalation, we need to order that now," added Rosa Fleming, the director of Convention and Event Services.
Dallas officially named FIFA World Cup 26 international broadcast center host
Dallas has been named the host for the FIFA World Cup international broadcast center.
The other side:
Some council members, including Councilwoman Cara Mendelsohn, are concerned about the debt the city still has on the existing convention center that will be torn down.
"So, we still owe $700 million on the Omni?" she asked. "As is the $270 million for the convention center?"
Mendelsohn, who does believe the convention center is a good project, also pressed for a definitive cost estimate.
"The entire goal of having this was to set a cap. And instead, we are seeing this number escalate," she said.
What's next:
The council is expected to decide whether or not to approve the $1 billion short-term loan on June 11.
The new convention center is expected to open in the spring of 2029.
The Source: The information in this story comes from Wednesday's Dallas City Council meeting.