There was strong praise from most Dallas city council members Wednesday for women and minority-owned business participation in the construction contract for a new convention center.
Only City Council Member Cara Mendelsohn, who opposed the new convention center plan all along, voted against the contract Wednesday.
Mendelsohn objected to the design-build method that leaves many details about the project unclear and subject to cost increases as the contractor completes the design and construction progress.
“I’m 100 percent opposed to doing a design-build project,” Mendelsohn said.
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She questioned changes made to the original concept to avoid building the new structure over I-30 after feedback from the Texas Department of Transportation.
“The whole TEX-DOT issue was one of the 20 reasons I did not vote for this project to begin with,” Mendelsohn said.
Voters in November approved the plan for a $3 billion Kay Bailey Hutchison Convention Center replacement with an increase in hotel taxes on visitors to help pay for it.
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Messages to voters before the referendum said the construction money would spread through the community.
Supporters said that it was a promise delivered on Wednesday.
Many of the subcontractors getting a share of the money stepped up to speak to the city council before Wednesday’s vote.
“And the microphone reflected like what Dallas looks like. That’s huge to me,” Councilman Adam Bazaldua said.
Councilman Jesse Moreno’s District Two includes the convention center neighborhood.
“It was inspiring and uplifting to hear from so many speakers this morning with Latino surnames, as well as so many people,” Councilman Jesse Moreno said.
Councilman Zarin Gracey is a former city staff member who worked years ago to promote minority business participation.
“This is outstanding, and this is something that we should very much be celebrating because this is what we set out to do when we had the journey of equity,” Gracey said.
The deal includes 75% local businesses.
“It was really great to see so many Dallas companies, Dallas businesses, Dallas. That’s what we’re about. The City of Dallas,” Councilman Omar Narvaez said.
The Inspire Dallas group that won the $71 million contract for this first phase of work is led by Jack Matthews of Matthews Southwest, an international development business.
The firm has completed many other Dallas projects, including the Dallas Omni Convention Center Hotel.
“We believe in diversity, community involvement, and staff development is a big part of what we are about,” Matthews said. “We are very grateful to partner with the city again.”
City officials said the Inspire Dallas team is more than 50% women and minority-owned business subcontractors, beating the project goal of 38%.
Dallas County Commissioner John Wiley Price attended the Dallas City Council meeting Wednesday to praise inclusion in the deal.
“I just want to say thank you. This team seems to embrace and understand that objective,” Price said.
Downtown business and hospitality industry people included Craig Davis, CEO of Visit Dallas, the tourism promotion agency.
“Matthews Southwest has a stellar reputation across the world, and our hospitality community looks forward to working with them and their team to deliver the finest convention center in the world,” Davis said.
Refined February renderings of the replacement convention center concept, to be advanced now through design by the contractor, show a new building realigned along Lamar Street.
A deck park on the south side of the building would cross over I-30 East R.L. Thornton Freeway to connect with the Cedars neighborhood.
That is very close to a large tract of land controlled by Matthews, which is the proposed site for a Texas Central high-speed rail station for service to Houston.
Matthews is also a partner in Texas Central. A transit center concept in the convention center plan will connect to the station if the high-speed rail project happens.
Mendelsohn said she was surprised the city considered a contractor with a financial stake in adjacent property.
“I think there’s no question that the firm has done wonderful things for Dallas, and I commend them for that. But there’s also no question this project will increase the value of their other holdings, and I think that’s a conflict,” Mendelsohn said.
City staff members said knowledge of the immediate neighborhood was one advantage for the Inspire Dallas bid that helped rank it superior to the competition in the city’s review process.
Former Texas Central CEO Carlos Aguillar is now listed as a Senior Advisor at Matthews Southwest.
Aguillar also spoke at Wednesday’s meeting about the effort to create an inclusive team for the new building project.
The convention center replacement plan also calls for demolishing large portions of the existing structure east of Lamar, clearing land for new downtown Dallas development.
Newly anticipated Dallas Convention Center
Councilman Chad West said he would not continue to support the project if new affordable housing is not included in the future use of those areas.
“It’s so, so important that we keep our eye on the ball in the need for housing in this city,” West said.
The design-build contract approved Wednesday also includes gradually demolishing the existing building as new portions are completed.
Additional components, including transportation connections and protection of the adjacent Pioneer Cemetery, will come later.
Actual construction is expected to begin in 2024, and the new building is planned for completion in 2028.
Visit Dallas CEO Davis said the city has lost some convention deals to other cities during the time of uncertainty about a new building but also has other future shows signed up in anticipation of completion.
