Dallas leaders compare cost of repairing city hall vs leasing office space

DALLAS - The future of Dallas City Hall is still uncertain.

City staff on Monday told council members that moving out and leasing a new building would be more cost-effective over 10 years. 

But some council members questioned how little staff expected a move to cost and how much it would take to repair the existing building.

Dallas City Hall Future

What we know:

City staff gave two very different estimates of what it would cost to make the needed repairs to Dallas’ iconic city hall building.

But according to a presentation on Monday, staff estimates the city would save millions by moving out and becoming a tenant in an office tower, at least for the first 10 years.

By the numbers:

The city’s estimate is that city hall renovations would range from $152 million to $345 million, with more costs added for bond debt.

Leasing an office tower for 10 years would cost $195 million to $248 million.

Those numbers are similar to the cost for repairs, but the cost of leasing would continue forever.

The comparison only looked at the cost difference for the first decade.

What they're saying:

Dallas City Council Chair Chad West compared city hall’s many repair needs to those of an old car.

"This building is a lot like an old car. At first, the small inexpensive repairs make sense. But at some point, basic maintenance is not enough. You either invest in a new transmission or decide the cost is not justifiable and you go out and buy a new car. We have a fiscal responsibility to our tax payers to fully understand the options," he said.

Council member Paul Ridley questioned the city’s cost estimates.

"I believe this presentation overstates the cost for repairs of city hall and understates the cost to vacate and move," he said.

Ridley also pointed out that there is $13 million in bond funds to repair city hall from 2107 that the city hasn’t used yet. And while city staff is proposing to use bond money to pay the millions to repair the building, the presentation didn’t mention where the city would get the millions to pay rent.

Dallas residents weigh in

The other side:

Dallas residents were given a chance Monday night to voice their opinions on the matter. 

 "To me, you have to preserve some of your history… maybe it’s only 50 years old, but you have to be 50 before you get to be 100," said resident Terri Rath. 

"It's a beautiful building, let's keep it," said resident Martha Hamburg. 

"I don’t want city hall sacrificed for a 20-year arena and may a casino…thank you," Rath said.

Dig deeper:

City staff said given Downtown Dallas’ vacancy rate right now, it’s an ideal time for the city to consider moving into an office tower.

While there has been speculation that the Dallas Mavericks could be interested in the land under city hall for a new arena, that possibility was not discussed during Monday’s meeting.

What's next:

Dallas will host a town hall meeting about city hall at 6 p.m. on Monday on Lower Level One.

The Dallas finance committee will also meet about the building’s future on Tuesday.