PILLAR: Growing
AGENDA DATE: January 28, 2026
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Convention and Event Services
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
Authorize an increase in the amount of $26 million to a previously authorized application approved on May 28, 2025, by Resolution No. 25-0814, for a loan in the amount of $90 million from the State Infrastructure Bank for a total loan amount of $116 million, to finance transportation related improvements and transportation related demolition surrounding the Kay Bailey Hutchison Convention Center - Financing: No cost consideration to the City
*In alignment with Kay Bailey Hutchison Convention Center Dallas Master Plan.
Body
BACKGROUND
In 2018, the Department of Convention and Event Services (CES) engaged in a multi-departmental solicitation for a development process to determine a path-forward for correcting long-time deferred maintenance of the two million square foot Kay Bailey Hutchison Convention Center Dallas (KBHCCD). Market analyses conducted in prior years pointed to several factors, in addition to the KBHCCD’s aging infrastructure, that were impacting the center’s salability.
Included among those factors were mobility, transportation, surrounding amenities, and overall land use surrounding the facility. In January 2021, the procurement evaluation process resulted in the awarding of a contract to WSP USA, Inc. to work with the Department and its broader Internal and External Stakeholder teams in the development of the Master Plan. Over the next two years and more than 350 engagement meetings with both internal and external stakeholders, a draft plan was developed, and City Council recommendations made to move the existing convention center to the west of Lamar Street, detaching The Black Academy of Arts and Letters and the Dallas Memorial Auditorium to function as stand-alone buildings.
Master Plan incorporated feedback and active participation from fourteen City departments and multiple stakeholders and included discussion about reconnecting and re-knitting communities by expanding the KBHCCD and accounting for transportation-related activities and alternatives. Development of cost models for these activities and alternatives has estimated totals of $600 million. To fund this amount, the team has been actively working with the North Central Texas Council of Governments and Texas Department of Transportation (TxDOT).
In discussions with financial advisors and TXDOT representatives, staff learned the State Infrastructure Bank (SIB) offers loan funds that can be used during the convention center expansion’s construction phase to fund transportation related expenses. Therefore, at the May 28, 2025, City of Dallas City Council meeting, the Council authorized a resolution (CR 25-0814) to allow for the submission of an application to TxDOT for an SIB loan in the amount of $90 million.
Since that time, the City of Dallas has met with representatives from TxDOT who have offered the opportunity for the City to apply for a larger amount ($116 million, an increase of $26 million) through the program. Submission of the application or applications requires a new resolution that includes this amount.
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 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 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 plan 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 KBHCCD 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 Committee was briefed by memorandum regarding questions presented during the special called meeting on February 23, 2023. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=12081687&GUID=103AA241-23F2-4BE8-8FF9-F1CC38B0F3C0>
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 KBHCCD 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 KBHCCD 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 KBHCCD 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 KBHCCD 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 KBHCCD Master Plan to Dikita Enterprises for Project Management/Owner’s Representation by Resolution No. 24-0389.
The City Council was briefed on The KBHCCD Master Plan and Transportation Initiatives on March 6, 2024.
The Economic Development Committee was updated by memorandum about the KBHCCD Master Plan Solicitations on June 3, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=12995978&GUID=42ADA9F1-4E2D-4452-92F9-76EDF1D014AA>
On June 11, 2024, the City Council authorized a Supplemental Agreement No. 1 to the Construction Manager at Risk Agreement for Component One of the KBHCCD 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 KBHCCD 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 KBHCCD 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 KBHCCD 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 KBHCCD Master Plan by Resolution No. 24-2587.
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 KBHCCD Master Plan Component One on May 21, 2025.
The Economic Development Committee was briefed by memorandum about the Dallas Area Rapid Transit (DART) Interlocal Agreement for the Advancement of the 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 with 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 KBHCCD by Resolution No. 25-1783.
FISCAL INFORMATION
No cost consideration to the City.