Dallas Mayor Eric Johnson Warns of Competition With Suburbs

Whether or not Dallas City Hall is coming apart, it’s exposing a rift between the city and the rest of the Metroplex.

After news broke that the Dallas Mavericks plan to leave the inner city for a site at the north edge of town, Dallas Mayor Eric Johnson called out the city’s losing fight with the suburbs in a statement released Tuesday.

Describing the tug-of-war as a “generational battle,” Johnson wrote, “Make no mistake about it, we are in competition with our neighboring cities for residents, for businesses and for attractions. … We must fight for the city of tomorrow rather than worship decaying, outdated government buildings from bygone eras.”

Johnson has suggested selling or redeveloping Dallas City Hall at 1500 Marilla Street, which the Dallas Mavericks reportedly considered for the team’s next arena. Private-sector supporters of the move include developer Ray Washburne, who argued in a January editorial that a new Mavericks arena would generate enough regular tax revenue to justify the sale of taxpayer-owned land. Opponents include architects who say the Brutalist building, designed by noted architect I.M. Pei, merits preservation.

The aging structure requires extensive repair, though supporters and critics disagree on the state of the building and how much the work would truly cost. A study by the Dallas Economic Development Corporation estimates that a full rehabilitation would cost more than $1 billion, well above previous estimates that ranged from $152 million to $345 million.

The Mavericks nulled any discussion of the site’s arena potential this week. The team confirmed to local outlets that it settled on the site of the former Valley View Mall, a 104-acre tract at the intersection of Interstate 635 and Preston Road. That’s about 12 miles north of American Airlines Center, where the team currently plays, and just five miles south of the Collin County line.

The Mavs aren’t the only team preparing to leave Dallas’ urban core. The Dallas Stars, a fellow American Airlines Center tenant, also unveiled plans for a new arena district in Plano this week. Both teams’ leases expire in 2031.

Meanwhile, Saks Global announced this week that it will close the historic flagship store of Dallas-founded retailer Neiman Marcus at 1618 Main Street in Downtown Dallas.

Alongside sports and retail, big businesses have been trickling north from Dallas as well. AT&T is preparing to leave city limits entirely for a 54-acre campus in Plano, vacating 2 million square feet in Downtown Dallas, or about 6 percent of all office space in the submarket. Continental Battery Systems announced plans last month to move from Dallas to Irving.

Companies moving from other states, such as Samsung, Public Storage, Bimbo Bakeries USA and KFC, have also generally clustered in the northern suburbs of the Metroplex.