Dallas Weighs Ditching Aging City Hall

Dallas’ iconic City Hall may be headed for a reckoning.

A long-awaited report from the Dallas Economic Development Corporation pegs the cost to restore and operate the 47-year-old complex at more than $1 billion over time, sharpening the debate over whether the city should abandon the I.M. Pei-designed building and find a new home. The Dallas Business Journal reported that the 46-slide assessment, released on Friday, estimates roughly $906 million in capital costs alone to bring the property up to modern standards.

The Brutalist seven-story building at 1500 Marilla Street suffers from mechanical, plumbing, HVAC and electrical systems that are well past their useful life, according to the report. Most repairs in recent decades have been reactive rather than preventative. A preliminary assessment from City Manager Kimberly Bizor Tolbert’s office presented to the council in November estimated much lower costs of repair though still substantial, estimating a range from $152 million to $345 million to bring the building up to modern code.

“City Hall is a 47-year-old building with all systems past their useful life,” the study concluded.

More than 80 firms contributed to the evaluation, including AECOM, CBRE and Corgan, logging thousands of hours inspecting the roughly 1 million-square-foot complex, which contains about 374,000 square feet of usable office space. The building’s roof is four years beyond the 25-year life span set by the Building Owners and Managers Association. Its windows and HVAC systems are 49 years old, well beyond industry standards.

While the analysis stops short of recommending relocation outright, it offers plenty of ammunition for those pushing to start fresh. In-place renovation “is not recommended” due to construction costs, timeline, operational disruptions and environmental concerns, the report states. Full modernization would trigger code and ADA upgrades, temporary relocation expenses and financing costs that push the price tag far beyond basic repairs.

A market engagement led by CBRE found “favorable conditions and cost-effective relocation solutions,” suggesting leasing, buying or building new space could prove more cost effective than a gut rehab. Downtown towers such as Ross Tower, Bank of America Plaza, Comerica Tower and Harwood Center have all been floated as potential landing spots. Whitacre Tower has also drawn speculation following AT&T’s decision to relocate its global headquarters to Plano.

The site could also prove a winning sell for the Dallas Mavericks’ pursuit of a new arena. Mavericks CEO Rick Welts recently revealed that the team is considering development either downtown or in the old Valley View Mall in North Dallas.

The findings come at a pivotal moment for Downtown Dallas. Mayor Eric Johnson, in the final stretch of his term, called for reimagining the central business district as more of a live-work-play neighborhood, even as he argues the city shouldn’t apologize for not being a suburb, according to the publication. The mayor made the remarks during a public forum with Ken Malcolmson, chairman emeritus of the North Dallas Chamber of Commerce.

Johnson said he anticipates more office conversions to residential, retail, hotel and other uses downtown in light of recent announced office departures for the suburbs.

“The future of downtown is linked to the future of all the surrounding areas, which are doing very well,” Johnson said. “I just think that in 50 years you’ll see downtown Dallas look different, but it will still be very vibrant. It’ll be more residential.”

The report is set for briefings before a City Council committee and the full council in early March. Ultimately, the fate of City Hall rests with the council.

— Eric Weilbacher