STRATEGIC PRIORITY: Growing
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Convention and Event Services
EXECUTIVE: Robin Bentley
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SUBJECT
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Authorize Supplemental Agreement No. 1 to the Construction Manager at Risk (“CMAR”) Contract with Trinity Alliance Ventures, LLC, a joint venture, to provide (1) City’s acceptance of GMP 1 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 the amount not-to-exceed $249,979,369.00 (which includes the CMAR’s contingency of $14,078,192.00); (2) Owner’s contingency of an amount not-to-exceed $9,385,461.00 for a total Supplemental Agreement No. 1 price not to exceed $259,364,830.00 increasing the total CMAR Contract price to date from $7,550,000.00 to $266,914,830.00 (which includes an owner’s contingency of $9,385,461.00 and a Guaranteed Maximum Price of $249,979,369.00); and (3) the establishment appropriations in an amount not to exceed $259,364,830.00 in the CCT 2025 Senior Lien Special Tax Revenue Notes - Not to exceed $259,364,830.00 - Financing: CCT 2025 Senior Lien Special Tax Revenue Notes Fund
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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 2 million square foot Kay Bailey Hutchison Convention Center Dallas (KBHCCD). The solicitation phase for master planning understood that the demand among convention centers continues to grow for high-quality exhibition and meeting space, especially within the medical, scientific, and technical fields, and that the existing KBHCCD was losing ground at a rate that was impacting the local economy. 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. The exploration of facility data demonstrated that, as a facility constructed in five phases, over several decades without consistent continuity or integration of major systems, the estimated investment level to merely correct existing deficiencies would be an estimated $500 - $600 million. As a result of that internal engagement and discussion, CES issued a combined Request for Qualifications (RFQ) and Request for Proposals (RFP) entitled Professional Services for the Kay Bailey Hutchison Convention Center Dallas (KBHCCD) - BC20-00011768 to procure a firm to develop a multi-layered master plan for the KBHCCD and a larger study area.
A collective decision was made to draft the Kay Bailey Hutchison Convention Center Dallas (KBHCCD) Master Plan (“Master Plan”) by studying the Convention Center District as a larger and integrated economic development plan that included the convention center facility, land use, transportation and connectivity around the facility and into South and Southern Dallas, and financing.
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 (TBAAL) and the Dallas Memorial Auditorium (Arena) to function as stand-alone buildings. The expansion of the campus, and ultimate decommissioning of some portions of the existing building, would result in an opportunity to create a multi-use district on approximately 30-acres, while re-orienting the convention center west of Lamar Street. Additionally, the plan would allow for the re-orientation of streets, the re-envisioning of the Eddie Bernice Johnson Union Station, the repair and refreshing of Pioneer Plaza and Cemetery, and reconnection into South Dallas.
The Master Plan incorporated feedback and active participation from fourteen City departments, Visit Dallas, Oakview Group (dba OVG360), Downtown Dallas Inc., the North Central Texas Council of Governments, the Texas Department of Transportation, Dallas Area Rapid Transit, Union Pacific Railroad, chambers of commerce, local Minority/Women-owned Business Enterprises (M/WBE) development groups, and many other stakeholders.
The Master Plan also incorporated all existing City of Dallas developed plans related to transportation, sustainability, development, racial equity, arts and culture, and others. The resulting concept, and March 6 reorientation, meets multi-agency and long-term City of Dallas goals to reconnect and re-knit communities by expanding the KBHCCD in such a manner that it no longer serves as a physical and development barrier into the community referred to in the vernacular as The Cedars, which is the northernmost gateway into South Dallas and the larger southern sector.
The implementation of the Master Plan was ultimately divided into seven fundable components as outlined below:
1. KBHCCD Convention Center Expansion and proposed Enhanced Greenspace connector using the Construction Manager At-Risk Delivery Model, and the Demolition of the Existing Convention Center
2. Transportation-Related Alternatives
3. Arena using either Design Bid Build or Construction Manager At-Risk Delivery Model
4. TBAAL using a Design Bid Build or Construction Manager At-Risk Delivery Model
5. Pioneer Plaza and Pioneer Cemetery
6. Eddie Bernice Johnson Union Station
7. Land Use and Development on City of Dallas owned property within the downtown area
In March 2023, the City released solicitation BBZ34-00021453 seeking project managers and owner’s representation services for each of the components. The first Project Manager and Owner’s Representative contract to be awarded was Component 1. On September 13, 2023, the City Council awarded a professional service contract to Inspire Dallas, LLC for project management and owner’s representation services for implementation of component one of the KBHCCD Master Plan by Resolution 23-1254.
On May 20, 2024, the City released solicitation CIZ24-CCT-3085 seeking architecture/engineering design services for Component 1 - KBHCCD Master Plan. Perkins and Will was awarded a contract by City Council for implementation of the architecture and engineering related to Component 1 by Resolution 24-2587.
On June 28, 2024, the City released solicitation CIZ24-CCT-3096 seeking a Construction Manager at Risk for the KBHCCD Master Plan Expansion West of Lamar Only and any related demolition associated with this portion of Component 1.
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.
Based on the most recent briefing to the Dallas City Council, the Project has an estimated construction budget of $3.3 billion to $3.5 billion, with a construction period currently estimated to be quarter 2029. As the Project proceeds, multiple 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. When the GMP for any phase is delivered by the CMAR, the City Manager shall be authorized to execute a supplemental agreement upon City Council action to accept that GMP for that phase to authorize the CMAR to proceed under that GMP and to drawdown funds for construction. A construction management services rate of 2.95 percent of the cost of work will be included in any phased GMP for this 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.
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 and Will to provide architectural/engineering design services for Component 1 of the Kay Bailey Hutchison Convention Center Dallas Master Plan by Resolution No. 24-2587.
On January 8, 2025, the City Council authorized a contract for KAI/Alliance, LC (dba KAI Design), to provide architectural/engineering design services for Component 4 of the Kay Bailey Hutchison Convention Center Dallas Master Plan by Resolution No. 25-0140.
The Quality of Life, Arts, & Culture Committee was briefed on the repairs needed at The Women’s Museum for the temporary relocation of The Black Academy of Arts and Letters (TBAAL) on March 25, 2025.
The City Council was briefed on The Kay Bailey Hutchison Convention Center Dallas Master Plan Component One on May 21, 2025.
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FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
CCT 2025 Senior Lien Special Tax Revenue Notes Fund |
$259,364,830.00 |
$0.00 |
$0.00 |