PILLAR: Growing
AGENDA DATE: February 25, 2026
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Convention and Event Services
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize Supplemental Agreement No. 2 to the Construction Manager at Risk (“CMAR”) Contract with Trinity Alliance Ventures, LLC, a joint venture, to provide (1) City’s acceptance of GMP 2 for construction services for the Kay Bailey Hutchison Convention Center Dallas (KBHCCD) Master Plan - Component 1 (hereinafter “the Project”) comprised of the Expansion West of Lamar Only and any related demolition associated with the Project located currently at 650 South Griffin Street, Dallas, Texas 75202 in an amount not to exceed $695,680,181.00 (which includes the CMAR’s contingency of $33,663,971.00); (2) Owner’s contingency of an amount not to exceed $21,799,560.40 for a total Supplemental Agreement No. 2 price not to exceed $717,479,741.40 increasing the total CMAR Contract price to date from $266,914,830.00 to $984,394,571.40 (which includes an owner’s contingency of $21,799,560.40 and a Guaranteed Maximum Price of $695,680,181.00); and (3) the establishment of appropriations in an amount not to exceed $717,479,741.40 in the CCT 2025 Senior Lien Special Tax Revenue Notes Fund - Not to exceed $717,479,741.40 - Financing: CCT 2025 Senior Lien Special Tax Revenue Notes Fund
*In alignment with Kay Bailey Hutchison Convention Center Dallas Master Plan.
Body
BACKGROUND
On November 13, 2024, the City Council authorized a Construction Manager at Risk Agreement (CMAR Agreement) with Trinity Alliance, a joint venture, to provide preconstruction and construction services for the Kay Bailey Hutchison Convention Center Dallas Master Plan Component One with a preconstruction services fee in the amount of $7,550,000.00 and a construction management services rate of two and ninety-five hundredths percent (2.95%) of the cost of construction within the total estimated project construction budget and paid by the Convention Center Revenue Bonds, Series 2023 Fund, by Resolution No. 24-1672.
On June 11, 2025, the City Council authorized an ordinance approving and authorizing the Second Supplemental Indenture establishing the Senior Lien Special Tax Revenue Notes, Series A (Kay Bailey Hutchison Convention Center Dallas Venue Project) bridge loan in an amount not to exceed $1,000,000,000, and approving the execution and delivery of one or more Note Purchase Agreements with DNT Asset Trust, a wholly owned affiliate of JPMorgan Chase Bank, N.A., and the issuance of Notes pursuant thereto, and resolving other matters related thereto upfront closing costs plus annual fees for a total cost of $5,223,181.00 with additional interest costs as accrued by Resolution No. 25-0965.
On June 11, 2025, the City Council authorized a Supplemental Agreement No. 1 to the Construction Manager at Risk Agreement for Component One of the Kay Bailey Hutchison Convention Center Dallas Master Plan to Trinity Alliance, a joint venture, for construction services in an amount not to exceed $259,364,830.00 paid by the 2025 Senior Lien Special Tax Revenue Notes Fund by Resolution No. 25-0968.
The Economic Development Committee was briefed by memorandum about the Dallas Area Rapid Transit Interlocal Agreement for the Advancement of the Kay Bailey Hutchison Convention Center Dallas (KBHCCD) Master Plan through the temporary closure of the DART Station on November 3, 2025. <https://cityofdallas.legistar.com/gateway.aspx?M=F&ID=3a727cbe-4125-4198-a67e-b0a5ba8e3048.pdf>
On November 12, 2025, the City Council authorized an Interlocal Agreement (“ILA”) with Dallas Area Rapid Transit (hereinafter "DART") for activities occurring during the first eighteen months of the Project related to the temporary closure and vacation of the DART facility located at the Kay Bailey Hutchison Convention Center by Resolution No. 25-1783.
Based on the most recent briefing to the Dallas City Council, the Project team through scope and budget validation was able to refine the design to reduce the construction budget range from approximately $3.3B - $3.5B to approximately $3.1B - $3.3B with no impacts to programming. As the Project proceeds, additional Guaranteed Maximum Prices (GMPs) are anticipated to be phased and developed by the CMAR for a total GMP within the construction budget for this Project under the CMAR agreement. This action will authorize Supplemental Agreement No. 2 with Trinity Alliance Ventures, LLC to proceed with construction for GMP 2.
GMP 2, if approved, will be expended over a period of April 2026 through March 2028. The total trade cost for GMP #2 is $435,991,208, consisting of the following scopes:
• Observer and Rail Survey Monitoring for GMP #2
• Slab on Grade & Below Grade Structural Concrete & Reinforcement
• Structural Steel Fabrication
• Earthwork: Pad Grading and Fine Grading
• Deep Foundations & Reinforcement
• Enabling Site Utilities
• Design Progression
• Interruption Event Allowance
These packages represent the core structural, foundation, and enabling work required to sustain uninterrupted construction operations and protect the overall project schedule.
The GMP #2 Financial Summary includes:
• Total Trade Cost for GMP #2: $435,991,208
• Base GMP Amount: $695,680,181
• Owner’s Contingency (5% of Total Trade Cost): $21,799,560.40
• Total Authorization Requested: $717,479,741.40
This GMP reflects subcontractors procured through a Best Value Selection process and includes scopes necessary to advance the project safely, efficiently, and in alignment with established budget parameters. The inclusion of 5% of the Owner’s Trade Contingency provides prudent financial management and controlled risk mitigation at this phase of the project.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Transportation and Infrastructure Committee was briefed on the KBHCCD Master Plan on December 8, 2020.
The City Council was briefed by memorandum regarding the KBHCCD Master Plan on January 22, 2021. <https://dallascityhall.com/government/citymanager/Documents/FY%2020-21%20Memos/Kay%20Bailey%20Hutchison%20Convention%20Center%20Master%20Plan%20update%20-%20Memo_01222021.pdf>
The City Council was briefed by memorandum regarding progress to-date on the KBHCCD Master Plan on August 13, 2021. <https://dallascityhall.com/government/citymanager/Documents/FY%2020-21%20Memos/KBHCCD%20Master%20Plan%20Contract%20Update_Memo_08132021.pdf>
The Economic Development Committee was briefed on the KBHCCD Master Plan and the Project Financing Zone on October 4, 2021.
On October 13, 2021, the City Council authorized the designation of Project Financing Zone Number One, City of Dallas, Texas by Ordinance No. 32016, by Resolution No. 21-1650.
The Transportation and Infrastructure Committee was briefed regarding the KBHCCD Master Plan Alternative Recommendation and Requirements Pursuant to Texas Local Government Code Chapter 334 on December 7, 2021.
The Transportation and Infrastructure Committee was briefed on the “Kay Bailey Hutchison Convention Center Dallas (KBHCCD) Master Plan Alternative Recommendation and Requirements Pursuant to Texas Local Government Code Chapter 334 on December 7, 2021.
The Transportation and Infrastructure Committee was briefed by memorandum regarding an update on questions presented during the December 7, 2021, committee meeting on December 17, 2021. <https://dallascityhall.com/government/citymanager/Documents/FY%2021-22%20Memos/KBHCCD%20Master%20Plan_Memo_12172021.pdf>
The City Council was briefed by memorandum regarding this matter on December 17, 2021. <https://dallascityhall.com/government/citymanager/Documents/FY%2021-22%20Memos/KBHCCD%20Master%20Plan_Memo_12172021.pdf>
The Transportation and Infrastructure Committee was briefed regarding the KBHCCD Master Plan Alternative Recommendation and Requirements Pursuant to Texas Local Government Code Chapter 334 on January 18, 2022.
The City Council was updated by memorandum regarding questions presented during the January 18, 2022, Transportation and Infrastructure briefing on January 28, 2022. <https://dallascityhall.com/government/citymanager/Documents/FY%2021-22%20Memos/KBHCCD%20Master%20Plan%20Update%20Memo%20-%20Follow-Up%20to%20TRNI%20Committee.pdf>
The City Council was briefed by memorandum regarding questions presented by a constituent regarding the KBHCCD Master Plan on January 28, 2022 <https://dallascityhall.com/government/citymanager/Documents/FY%2021-22%20Memos/KBHCCD%20Master%20Plan%20Update%20-%20Additional%20Questions.pdf>.
The City Council was briefed on the KBHCCD Master Plan Alternative Recommendation and Requirements Pursuant to Texas Local Government Code Chapter 334” on February 2, 2022.
On February 9, 2022, the City Council authorized the adoption of the 3C west of Lamar alternative to implement KBHCCD Master Plan and the city manager to take the necessary steps to implement the 3C alternative, by Resolution No. 22-0334.
On May 11, 2022, the City Council authorized providing advance planning and feasibility for the KBHCCD Master Plan, by Resolution No. 22-0742.
On September 14, 2022, the City Council authorized a reimbursement agreement with Union Pacific Railroad Company for preliminary engineering services for the portion of the proposed expansion of the Kay Bailey Hutchison Convention Center that impacts Union Pacific Railroad’s tracks, including improvements to infrastructure, by Resolution No. 22-1348.
The Transportation & Infrastructure and Economic Development Committees were briefed about the KBHCCD Master Plan - Next Steps during a special called meeting on February 7, 2023.
The Transportation & Infrastructure and Economic Development Committees was provided a memorandum regarding questions presented during the special called meeting on February 23, 2023.
The Government Performance and Finance Committee was briefed about the KBHCCD Master Plan and Fair Park Improvements on May 22, 2023.
The Government Performance and Finance Committee was briefed by memorandum on the KBHCCD Master Plan and Fair Park Improvements on June 13, 2023. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=12081687&GUID=103AA241-23F2-4BE8-8FF9-F1CC38B0F3C0>
On June 14, 2023, the City Council approved a resolution expressing official intent for the City to reimburse itself for costs and expenses incurred in connection with the Kay Bailey Hutchison Master Plan from obligations that will be issued after the expenditures by Resolution No. 23-0774.
On September 13, 2023, the City Council authorized a professional service contract for Component One of the Kay Bailey Hutchison Convention Center Dallas Master Plan to Inspire Dallas for Project Management/Owner’s Representation by Resolution No. 23-1254.
The Government Performance and Finance Committee was briefed on the FY 2023-24 Debt Issuance Overview on October 23, 2023.
The Economic Development Committee was briefed about the Kay Bailey Hutchison Convention Center Dallas Master Plan - Convention Center Component on February 5, 2024.
On February 28, 2024, the City Council authorized a professional services contract for Component Three of the Kay Bailey Hutchison Convention Center Dallas Master Plan to McKissack and McKissack for Project Management/Owner’s Representation by Resolution No. 24-0388.
On February 28, 2024, the City Council authorized a professional services contract for Component Four of the Kay Bailey Hutchison Convention Center Dallas Master Plan to Dikita Enterprises for Project Management/Owner’s Representation by Resolution No. 24-0389.
The City Council was briefed on the Kay Bailey Hutchison Convention Center Dallas Master Plan and Transportation Initiatives on March 6, 2024.
The Economic Development Committee was updated by memorandum about the Kay Bailey Hutchison Convention Center Dallas Master Plan Solicitations on June 3, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=12995978&GUID=42ADA9F1-4E2D-4452-92F9-76EDF1D014AA>
The Economic Development Committee was briefed by memorandum about the Kay Bailey Hutchison Convention Center Dallas Master Plan Progress, Outreach, and Engagement on August 5, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13204845&GUID=77F4654C-4841-4359-B9A0-5D2F9FC1A112>
On September 11, 2024, the City Council authorized an amended contract with TxDOT to design and construct deck caps on Lamar Street as part of the Kay Bailey Hutchison Convention Center Dallas Master Plan, by Resolution No. 24-2595.
On September 11, 2024, the City Council authorized an amended contract with TxDOT to design and construct deck caps at Old City Park as part of the study area with the Kay Bailey Hutchison Convention Center Dallas Master Plan, by Resolution No. 24-2589.
On September 11, 2024, the City Council authorized a contract for Perkins and Will to provide architectural/engineering design services for Component 1 of the Kay Bailey Hutchison Convention Center Dallas Master Plan, by Resolution No. 24-1320.
On November 13, 2024, the City Council authorized a Construction Manager at Risk Agreement (CMAR Agreement) with Trinity Alliance, a joint venture, to provide the preconstruction and construction services for the Kay Bailey Hutchison Convention Center Dallas Master Plan Component One with a preconstruction services fee in the amount of $7,550,000.00 and a construction management services rate of two and ninety-five hundredths percent (2.95%) of the cost of construction within the total estimated project construction budget and paid by the Convention Center Revenue Bonds, Series 2023 Fund, by Resolution No. 24-1672.
The City Council was briefed on the Kay Bailey Hutchison Convention Center Dallas Master Plan Component One on May 21, 2025.
On June 11, 2025, the City Council authorized an ordinance approving and authorizing the Second Supplemental Indenture establishing the Senior Lien Special Tax Revenue Notes, Series A (Kay Bailey Hutchison Convention Center Dallas Venue Project) bridge loan in an amount not to exceed $1,000,000,000, and approving the execution and delivery of one or more Note Purchase Agreements with DNT Asset Trust, a wholly owned affiliate of JPMorgan Chase Bank, N.A., and the issuance of Notes pursuant thereto, and resolving other matters related thereto upfront closing costs plus annual fees for a total cost of $5,223,181.00 with additional interest costs as accrued, by Resolution No. 25-0965.
On June 11, 2025, the City Council authorized a Supplemental Agreement No. 1 to the Construction Manager at Risk Agreement for Component One of the Kay Bailey Hutchison Convention Center Dallas Master Plan to Trinity Alliance, a joint venture, for construction services in an amount not to exceed $259,364,830.00 paid by the 2025 Senior Lien Special Tax Revenue Notes Fund, by Resolution No. 25-0968.
The Economic Development Committee was briefed by memorandum about the Dallas Area Rapid Transit Interlocal Agreement for the Advancement of the Kay Bailey Hutchison Convention Center Dallas (KBHCCD) Master Plan through the temporary closure of the DART Station on November 3, 2025. <https://cityofdallas.legistar.com/gateway.aspx?M=F&ID=3a727cbe-4125-4198-a67e-b0a5ba8e3048.pdf>
On November 12, 2025, the City Council authorized an Interlocal Agreement (“ILA”) with Dallas Area Rapid Transit (hereinafter "DART") for activities occurring during the first eighteen months of the Project related to the temporary closure and vacation of the DART facility located at the Kay Bailey Hutchison Convention Center, by Resolution No. 25-1783.
The City Council was briefed on the Kay Bailey Hutchison Convention Center Dallas Master Plan Component One on January 21, 2026.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
CCT 2025 Senior Lien Special Tax Revenue Notes Fund |
$430,487,844.84 |
$215,243,922.42 |
$71,747,974.14 |
Original Contract $ 7,550,000.00
Supplement Agreement No. 1 $ 259,364,830.00
Supplement Agreement No. 2 $ 717,479,741.40
Project Total $ 984,394,571.40
LOCAL PARTICIPATION
|
Prime |
Status |
Workforce % |
|
Trinity Alliance Ventures LLC, a joint venture |
Local |
20.16% |