The Dallas City Council has approved paying at least $65 million to a project management team for improvements to the Kay Bailey Hutchison Convention Center.
The contract also includes a $4 million contingency fund to extend the contract if necessary and another $2 million for “potential scope enhancements.” The master plan
The item passed by a vote of 12-1. Mayor Pro Tem Tennell Atkins, who represents District 8, abstained from the vote and Dallas Mayor Eric Johnson was absent.
Inspire Dallas, LLC, will be managing the multi-billion dollar convention center project. Jack Matthews, the head of Matthews Southwest, will lead the team.
"I want to emphasize that it is a heavy Dallas team," Matthews said. "We believe in diversity, community involvement...we understand Dallas, but I have to say we are still learning."
Matthews' firm has completed other projects in Dallas like the Omni Hotel, the Alamo Drafthouse Cinema and the Southside on Lamar apartments.
District 12 Council Member Cara Mendelsohn was the only one to vote against the approval of the contract.
"This is a massive amount of money for someone to essentially be our project manager," Mendelsohn said.
Mendelsohn also was the only council member to vote against the adoption of the convention center plan in 2022. Her reasons included not knowing what the future of big events would be after the COVID-19 pandemic and not having enough information on the costs of the project at the time.
Most council members — and the 29 speakers who showed up to City Hall — spoke in favor of the multi-million-dollar convention center contract.
Zarin Gracey represents District 3. He says one of the achievements of the contract is just how many minority-owned companies are included.
“This is very reminiscent of the Omni Hotel,” Gracey said. “I want to commend you all on a great success…we’re talking about $33 million dollars going to [companies with Minority and Women Business Enterprise Certifications].”
Deputy Mayor Pro Tem Carolyn King Arnold says that the companies selected for the project, fall in line with the city’s pledge to righting historical wrongs.
“I believe today this is one of the days we can be proud of the fact that we have embraced equity in terms of the steps we have taken,” Arnold said.
The convention center project is estimated to cost at least $2.8 billion after its completed, according to a briefing presented to council earlier in the year. Some city officials say it could cost much more than that.
In November 2022, Dallas voters approved Proposition A that raised the city’s hotel taxes to raise money for the convention center and Fair Park renovations.
Convention center officials told the council on Wednesday that the decision over the construction contract — either a “design build” or “construction manager at risk” — wouldn’t be up to city officials.
“I am 100% opposed doing a design build project,” Mendelsohn said. “There’s no way I would ever support a design-build for a fully developed are, especially when we know there’s a lot of challenges right there.”
There are around 14 city departments that will be coordinating with the convention center officials and the numerous organizations that will be under the construction contract.
City officials say this is only the start of the process — construction is still a ways off. Staff say the architecture and design process has to happen before construction starts.
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