PILLAR: Growing
AGENDA DATE: June 24, 2026
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Convention and Event Services
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize the implementation of the recommendation by the Transportation and Infrastructure Committee on May 19, 2026, to raise the height of the Kay Bailey Hutchison Convention Center Dallas back to the original (existing) height to accommodate the Jefferson and Houston Viaduct travel - Estimated Revenue Foregone: Convention and Event Services Fund $271,300,000.00 over a five-year period and Estimated Additional Construction Costs: $597,000,000.00 (see Fiscal Information for Future Cost Consideration)
*In alignment with Kay Bailey Hutchison Convention Center Plan.
Body
BACKGROUND
The Kay Bailey Hutchison Convention Center Dallas (KBHCCD) Master Plan advanced to the implementation phase in September 2023 with the onboarding of Inspire Dallas as the project management/owner’s representative. Comprised of 23 partnering firms, Inspire Dallas began the design verification stage for the 3C West of Lamar concept approved by City Council on September 13, 2023, by Resolution No. 23-1254.
In October 2023, the City of Dallas Department of Convention and Event Services (CES) received notification that additional land was needed by the Texas Department of Transportation (TxDOT) to use as laydown area and as an area to construct a shoefly for the Union Pacific Railroad (UPRR). Ultimately, the city established easement agreements with TxDOT for the additional area, requiring that the KBHCCD Master Plan team jointly with the selected design team (Amplify Dallas) to retool the original 3C West of Lamar design. The retooling of the design was completed in December 2025 and presented to City Council on January 20, 2026, and again on March 19, 2026.
In both scenarios, the construction conditions required that some section of the Jefferson Street Viaduct transition to Market Street be included in a Transportation Closure Plan (TCP) to prevent any public safety concerns that would violate OSHA during the demolition and construction periods. The closure requires a re-routing of approximately 550 feet of the Jefferson Street Viaduct as it becomes Market Street.
City leadership, CES, and the Department of Transportation and Public Works (TPW) briefed the Transportation and Infrastructure (TRNI) Committee on January 20, 2026, again during Special Called meetings on March 23, 2026, and May 19, 2026, and was prepared to update the committee at a regularly scheduled meeting on June 15, 2026, about the various community engagement efforts and the status re-routing options of the viaducts. During the May 19, 2026 briefing, the TRNI Committee recommended that the City Council raise the height of the Convention Center back to the original height to accommodate the Viaduct travel. The original approved height of the KBHCCD is the current existing height. On June 15, 2026, the TRNI Committee voted against reconsideration of its May 19, 2026 recommendation.
At the May 19 briefing, staff explained that the convention center redevelopment, the viaduct traffic reconfiguration, and the separate state-funded rehabilitation of the viaducts are three distinct efforts, each with its own lead agency, funding stream, and timeline. Further, the viaduct reconfiguration is a citywide mobility decision led by the City's TPW Department and the North Central Texas Council of Governments (NCTCOG), rooted in the Oak Farms Area Transportation Corridors Study, a regional planning effort that was funded, procured, and awarded before Inspire Dallas was engaged and before convention center design began.
City leadership and the CES and TPW teams underscored to the TRNI Committee that amendments to the KBHCC design would add approximately $597M in construction cost and that re-design through Amplify Dallas would take an additional year or more before new approvals could be sought.
The City Team further indicated that there would be a domino effect on the city’s tourism and hospitality reputation, relaying that Dallas's convention center is not merely an events facility. Rather it is the economic engine that drives lodging demand, tax receipts, and employment across the entire city. Current data developed by staff, consultants, and Visit Dallas demonstrate that during the planned pre-construction, continued operations, and demolition from July 2025 - April 2026 versus the prior-year period and Dallas’s 10-year growth baseline, revenue losses are as follows:
|
Economic Indicator |
Impact |
Basis |
|
Convention-driven lodging-spend lost |
$92.1M |
vs. prior year |
|
Citywide hotel revenue shortfall vs. trend |
$115.1M |
vs. 4.83% CAGR baseline |
|
Local tax revenue lost (10 months) |
$13.7M |
occupancy & sales tax |
|
Monthly local tax loss |
$1.4M |
per month of closure |
|
Convention center jobs lost (FTE) |
2,532 |
KBHCCD performance gap |
|
Broader hospitality workforce impact |
3,000+ |
annualized, citywide |
Source: STR hotel performance data; VisitDallas analysis.
Staff are continuing to follow the loss of revenue and anticipate an additional $1.4 million in lost tax revenue per month, with every decision that affects the construction timeline becoming a city budget decision.
ESTIMATED SCHEDULE OF PROJECT
The project timeline is in flux given the recent recommendation by the TRNI Committee.
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.
On September 14, 2022, City Council authorized Supplemental Agreement No. 1 to the professional services contract with WSP USA, Inc. to provide advance planning, historical documentation, public involvement, non-engineering planning schematics, and railroad coordination as part of the Kay Bailey Hutchison Convention Center Dallas Master Plan by Resolution No. 22-1349.
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.
A memorandum regarding questions presented during the special called meeting was provided to the Transportation & Infrastructure and Economic Development Committees 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 & 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 of Dallas authorized a Construction Manager at Risk Agreement (CMAR Agreement) with Trinity Alliance, a joint venture, to provide the preconstruction and construction services for the Project 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 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 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 for Component One 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 Transportation and Infrastructure Committee was briefed about the Jefferson Viaduct on January 20, 2026.
The City Council was briefed on the Kay Bailey Hutchison Convention Center Dallas Master Plan and FIFA on January 21, 2026.
On February 25, 2026, the City Council authorized a Supplemental Agreement No. 2 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 for Component One by Resolution No. 26-0463.
On February 25, 2026, the City Council authorized a Supplemental Agreement No. 2 to the professional services contract with Perkins & Will, Inc., for additional architectural and engineering services related to Component One of the Kay Bailey Hutchison Convention Center Dallas Master Plan, by Resolution No. 26-0462.
The Transportation and Infrastructure Committee was briefed on the proposed Jefferson and Houston Viaduct realignments and construction interaction with the KBHCCB Master Plan-Convention Center Expansion during a special called meeting on May 19, 2026. The Committee recommended that City Council reconsider the design of the convention center to accommodate the viaduct travel.
The Transportation and Infrastructure Committee voted against reconsideration of its May 19, 2026, recommendation during its meeting on June 15, 2026.
FISCAL INFORMATION
Estimated Revenue Foregone: Convention and Event Services Fund $271,300,000.00 from FY 2025-26 through FY 2029-30.
Amendments to the KBHCC design would add approximately $597,000,000.00 in construction costs from FY 2025-26 through FY 2029-30.