STRATEGIC PRIORITY: Growing
AGENDA DATE: March 25, 2026
COUNCIL DISTRICT(S): 1
DEPARTMENT: Department of Convention and Event Services
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize (1) an economic development grant agreement with the Dallas Wings Development, LLC to construct a facility on City-owned park property located at 1200 North Cockrell Hill Road in an amount not to exceed $54,000,000.00, a developer fee not to exceed $3,240,000.00, and a delay reimbursement in an amount not to exceed $653,000.00 - Not to exceed $57,893,000.00 - Financing: Convention Center Construction Fund; (2) an amendment to the Dallas Memorial Auditorium Resident Use and Incentive Agreement (CCT-2024-00024819 No. 24-0616) with Full Court Partners LLC, d/b/a/ Dallas Wings; and (3) a decrease in project management services contract with McKissack and McKissack for a reduction in scope to eliminate the Dallas Wings Practice Facility in the amount not to exceed ($1,847,485.00), from $13,945,684.00 to $12,098,199.00 - Financing: Convention Center Revenue Bonds Series 2023 Fund; For a total not to exceed $56,045,515.00 - Financing: Convention Center Construction Fund ($57,893,000.00) and Convention Center Revenue Bonds Series 2023 Fund (-$1,847,485.00) (This item was committed to the next Ad Hoc Committee on Professional Sports Recruitment and Retention)
*In alignment with the Kay Bailey Hutchison Convention Center Dallas Master Plan.
Body
BACKGROUND
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 with McKissack and McKissack for Project Management/Owner’s Representation of the Dallas Memorial Auditorium (Arena) project, by Resolution No. 24-0388.
On April 24, 2024, the Dallas City Council approved resolution No. 24-0616 for a 15-year Resident Use and Incentive agreement, with three five-year renewal options with Full Court Partners LLC, d/b/a Dallas Wings to relocate to Dallas.
On July 17, 2025, the City executed Supplemental No. 1 to the Use and Incentive Agreement, which allowed the City to exercise a one-year extension to the term for substantial construction completion of the Dallas Memorial Auditorium.
Supplemental Agreement No. 2 to the Dallas Memorial Auditorium Resident Use and Incentive Agreement (CCT-2024-00024819 No. 24-0616) with Full Court Partners LLC, doing business as Dallas Wings, to add the address for the secondary facility as 1200 North Cockrell Hill Road; and other negotiation terms related to day-to-day operations is currently being negotiated.
On September 24, 2025, the City executed Supplemental Agreement to the McKissack and McKissack contract to enhance the scope of work, allowing the firm to provide project management/owner’s representation of the Secondary Facility located at 1200 North Cockrell Hill Road, Dallas, Texas 75211. This contract amendment was authorized, by Resolution No. 25-1520,
DEVELOPMENT AGREEMENT
Project delivery has lagged on the practice facility and the city is electing to complete a deductive change order for the McKissack and McKissack contract, removing the practice facility from the agreement and focusing the team fully on the delivery of the Dallas Memorial Auditorium (Arena).
In addition to the timing delays, the budget of the practice facility has increased to approximately $81 million, exceeding the $54 million allocated to the project by the city. The Dallas Wings have agreed to front the additional $27 million and to cover any cost overruns necessary to build a facility that meets the team’s specifications, and to serve as the developer for the practice facility. The terms of the proposed development agreement with Dallas Wings Development, LLC, which is a subsidiary of Full Court Partners LLC d/b/a Dallas Wings include:
• Staff transition of design documents, budgets, schedules, reports and other documents necessary for the Dallas Wings to assume responsibility of the project.
• Construction of the project by the Dallas Wings on behalf of the city in material accordance with mutually agreed upon plans and specifications below
o A total facility size of approximately 70,000 square feet or such lesser amount of square feet as may be determined by Developer so long as the facility meets the Dallas Wings’ needs to function as a WNBA practice facility;
o A total community benefit space size of approximately 3,400 square feet; and
o A minimum of two basketball courts, locker rooms, a weight room, a kitchen, restrooms (to be used by the Dallas Wings and its employees, agents and invitees), and other facilities, in each case comparable to those facilities’ customary for a WNBA practice facility.
o Agreement to collaborate with the City as the City develops four soccer fields and connecting trails adjacent and near the secondary facility, at the City’s cost, to ensure cohesive design and aesthetics of the soccer fields, adjacent trails and the secondary facility.
The City will fund up to $54 million in the form of an economic development grant (“Grant”), less any funds the City has previously expended or expends prior to the Developer’s commencement of the Project (“City Contribution”). The Dallas Wings will fund all amounts in excess of the City Contribution necessary to complete the Project (the “Wings Contribution”).
The project payment to the Dallas Wings will be structured as a Grant that will not exceed the City Contribution, a developer fee in an amount that is the lesser of 4% of the actual project cost or $3,240,000 (“developer fee”), and a delay reimbursement in an amount not to exceed $653,000 (“delay reimbursement”), which are payable as follows:
• Installment 1 - $10,000,000.00 of Grant and delay reimbursement payable at Agreement execution
• Installment 2 - $15,000,000.00 payable at commencement of foundation construction.
• Installment 3 - $25,000,000.00 payable upon completion of the foundation and early structural framing, as reasonably determined by the Director.
• Installment 4 - payment of all remaining city contribution funding upon completion of the shell building and roof, including electrical and plumbing.
• Installment 5 - developer fee
If the Dallas Wings achieve cost savings and construct the Project in material conformance with the Plans and Specifications for a cost lower than the Estimated Project Budget, then such cost savings shall be for the benefit of the Dallas Wings. If savings reduce the Project Budget to an amount that is less than the City Contribution, the savings shall be for the benefit of the City. The parties agree to work in good faith to preserve any potential tax exemptions available to the Project.
Critical delivery dates include an initial permit package submission no later than August 15, 2026; substantial completion of the building by April 1, 2027; and, submission of payment and performance bonds along with quarterly reports. The City Manager may administratively authorize extension of deadlines by up to 12 months.
SUPPLEMENTAL AGREEMENT NO. 3
Supplemental Agreement No. 3 will include three primary components:
• Amending revenue sharing terms; and
• Amending the construction delivery terms for the Dallas Memorial Auditorium to April 2028.
• Transferring the construction obligations for the Secondary Facility from the City to Full Court Partners LLC, dba Dallas Wings
DEDUCTIVE CHANGE ORDER
As part of the move-forward actions to engage the Dallas Wings as a developer, staff will reduce the fee for project management and owner’s representation services from $3,338,806.99 to $1,847,485.00 under the contract, as amended by supplemental agreement No. 3 with McKissack and McKissack, which approved the firm’s project management of the secondary facility project.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
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 with McKissack and McKissack for Project Management/Owner’s Representation, by Resolution No. 24-0388.
On April 24, 2024, the City Council authorized a fifteen-year resident use and incentive agreement for the Dallas Memorial Auditorium ("Arena" and "primary facility") and ancillary meeting rooms ("secondary facility") with three five-year renewal options with a professional sports team, by Resolution 24-0616.
On January 8, 2025, the City Council authorized a contract with M. Arthur Gensler, Jr. & Associates, Inc. dba Gensler to provide architectural and engineering design services for the Kay Bailey Hutchison Convention Center Dallas Master Plan renovation and reconstruction of the Dallas Memorial Auditorium (Arena) - Component Three, by Resolution No. 25-0141.
On April 17, 2025, the City Manager approved Supplemental Agreement No. 1 with McKissack & McKissack Inc. to activate contingency for scope enhancement, by Administrative Action No. 25-564.
On May 28, 2025, the City Council authorized a Construction Manager at Risk Agreement with Beck Azteca, A Joint Venture, for pre-construction and construction services for the renovation and reconstruction of the Dallas Memorial Auditorium (Arena) - Component Three, by Resolution No. 25-0815.
The City Council was briefed by memorandum regarding this matter on June 6, 2025. <https://dallascityhall.com/government/citymanager/Documents/FY24-25%20Memos/Upcoming%20Agenda%20Item%20-%20Supplemental%20Agreement%20to%20Trinity%20Alliance%20Ventures,%20LLC.pdf>
On June 11, 2025, the City Council authorized Supplemental Agreement No. 2 to the Dallas Memorial Auditorium Resident Use and Incentive Agreement (CCT-2024-00024819 No. 24-0616) with Full Court Partners LLC, d/b/a/ Dallas Wings to include an addition of the address for secondary facility at 1200 North Cockrell Hill Road; and additional negotiation terms, by Resolution No. 25-0969.
On September 24, 2025, the City Council authorized Supplemental Agreement No. 2 to the project manager/owner's representative services agreement with McKissack & McKissack, Inc. for additional services associated with the implementation of Component Three of the Kay Bailey Hutchison Convention Center Dallas master plan, which includes project management/owner’s representation for the Secondary Facility located at 1200 North Cockrell Hill Road, Dallas, Texas 75211, not to exceed $3,338,807.00 a one year contract extension to include additional services for the project management/owner’s representation for the rehabilitation/renovation of the Dallas Memorial Auditorium (Arena), and necessitated by the City’s obligations under the Full Court Partners LLC, d/b/a/ Dallas Wings contract not to exceed $2,624,537.00; and the establishment of appropriations in an amount not to exceed $5,963,344.00, from $7,982,340.00 to $13,945,684.00, by Resolution No. 25-1520.
On February 25, 2026, this item was committed to the next Ad Hoc Committee on Professional Sports Recruitment and Retention by Councilmember Chad West.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Convention Center Construction Fund |
$28,946,500.00 |
$28,946,500.00 |
$0.00 |
|
Convention Center Revenue Bonds Series 2023 Fund |
($1,847,485.00) |
$ 0.00 |
$0.00 |
|
Total |
$27,099,015.00 |
$28,946,500.00 |
$0.00 |
OWNER/EXECUTIVE
Full Court Partners LLC, d/b/a Dallas Wings
Dallas Wings Development, LLC
500 East Border Street, Suite 250
Arlington, Texas, 76010
Greg Bibb, President and Chief Executive Officer