Category Archives: Economic Development

Harlan Crow/Unfair Park weigh in on Dallas Convention Center Hotel

Posted on by
1

anatole.jpgI’m glad to see more and more people weighing in on the idea of a convention center hotel. The latest are Harlan Crow (his family owns the Hilton Anatole) and Unfair Park. Unfair Park gives some of the highlights of Mr. Crow’s latest letter to Dallas Mayor Tom Leppert on their website.

In a previous letter to Mayor Leppert, Mr. Crow’s feelings about the proposed convention center hotel are pretty straight forward. “The reason Dallas does not have a convention center hotel today is simple,” Mr. Crow says, “IT IS NOT ECONOMICALLY VIABLE.”

When I read the letter that Mr. Crow’s wrote the mayor last year, the first thing I thought about was his father, Trammell Crow. Mr. (Trammell) Crow was a real life J.R. Ewing in the 70′s and early 80′s, only nicer from what I can tell.

I immediately went to my bookshelf and started thumbing through my copy of Trammell Crow: Master Builder, a book about how Mr. Crow basically redefined commercial real estate in the United States and the world. He is responsible for much of what we see and know as Dallas today.

I turned to the chapter that talked about how the Anatole came about. My memory was that The Anatole was the senior Mr. Crow’s favorite project, out of hundreds and hundreds that he built. Page 198 yields the following information:

The same forces that impelled Crow to create new marts, also mandated the development of a major new hotel…At the time Dallas lacked a truly distinguished modern hotel like the 1,000-room giants that helped draw conventions to New York, Chicago, Los Angeles, New Orleans, and other major hubs.

If Dallas were to be competitive it too would have to have them. The Hilton interests…were already considering a site near the Market Center, and Crow wanted to beat them to it.

Later in the chapter Trammell Crow comments on the risk of such a project. “A hotel has most of the dangerous aspects of real estate and of an operating business,” Crow reflects, “and few of the good aspects.”

What Crow saw as an opportunity 30 years ago many see with the convention center hotel today. With the added caveat of that old real estate adage, location, location, location. And there are lots more cities vying for convention business than the days when Trammell Crow helped put Dallas in the trade show rotation.

There is no doubt that the prospect of a convention center hotel in Dallas makes for a tough business decision. For some of the reasons the Harlan Crow mentions in his letter to mayor Leppert.

Unfair Park points to a January 2005 Brooking’s Institute Study by Dr. Heywood Sanders that discusses just how difficult the convention center business has become. Part of the reason driven home by Dr. Sanders is an excess of convention center space – which we have here in Dallas.

That’s where most of Dr. Sanders’ 36 pages focuses, on the convention center itself. He looks at all the cities that are adding convention spaces through renovation or new facilities. Dr. Sanders explores the trend of declining convention bookings nationwide and emerging convention giants (as mentioned by me here) Orlando and Las Vegas.

If there were five 1960′s model cars in my driveway that I used to get to work, should I not buy a new one because I already have too many?

He also talks about declining hotel bookings in cities as well. And while he gives a number of examples of cities that are struggling, I did not see factors such as airports, infrastructure, visitor satisfaction, entertainment and others used to contrast the cities. What are all the factors that made St. Louis tank so bad despite investing in a convention center and hotel?

In the analysis of hotel occupancy in Dallas, it is rarely mentioned how disjointed and dysfunctional the current inventory of rooms are. If there were five 1960′s model cars in my driveway that I used to get to work, should I not buy a new one because I already have too many?

That is one of the reasons why I support constructing the Dallas Convention Center hotel on the southern side of the building. It presents less risk. Less risk because the up front costs will be less, and because the “entertainment options” will not have to be built from scratch.

Look, in the end my opinion counts for very little and I gladly defer to the expertise of Mr. Crow and Dr. Sanders. But I know that Dallas can be great, and the city took bigger steps towards greatness under the leadership of a visionary Mayor Kirk than the pothole filling Laura Miller.

Mayor Tom Leppert has done everything thus far to make me believe he’s on the side of the citizens of Dallas. Leppert is trying to walk the line between visionary and pragmatist. Thus far I think he is doing a fine job. His leadership on the convention center hotel is on point.

It will also take visionary business leaders, like I believe Jack Matthews to be. With all due respect to Mockingbird Station and the West Village, what bigger risk has their been in the last decade than the Southside on Lamar (which is actually making money)? The city should give him a shot with the hotel.

Not a done deal, there’s still time to place the Dallas Convention Center Hotel on the center’s South Side

Posted on by
3

The thing that you need to know about where we are in the Convention Center Hotel process: it ain’t over.

The city has spent about $500,000 to “tie up” an 8.34-acre tract of land on Young Street between Market and Lamar that is a privately owned parking lot. This was the subject of a Dallas Morning News article last weekend (Did anyone else notice the WFAA sign that was prominently featured in the picture of that site?)

Dave Levinthal and Rudolph Bush report that the city has until Sept. 30 to decide whether to purchase the land from Cincinnati-based CP-Dallas L & Y LP at a fixed price just under $40 million. If they don’t, the $500,000 goes down the drain.

Now let’s revisit the South Side Convention Center option.

First let me make something clear.  Unlike what has been reported and assumed, the south side option is not on the opposite side of I-30 from the center. The proposed site is where Eddie Deans Ranch is currently located, including the huge parking lot behind it. To be more specific, the hotel would be bordered by Memorial Drive, Griffin, Street, Canton Street, and South Lamar.

The firm who owns this property is Matthews Southwest of Lewisville. While the firm is based in Lewisville they have a significant presence in Dallas. Matthews Southwest acquired the property I described above for $8.3 million, at an average of $44 per square foot.

$40 million (8.3 acres) vs. $8.3 million (4.1 acres).

Keep in the back of your mind the fact the Matthews Southwest donated (yes free) the Cedars area property that the Dallas Police Headquarters now calls home. They are also responsible for redeveloping the Sears Building to the South Side on Lamar, as well as The Beat condominiums currently under construction.

There are six companies looking to serve as master builder on the hotel project. The News lists those companies as Beck of Dallas, Faulkner USA of Austin, Hines of Houston, Jones Lang LaSalle of Chicago, Woodbine Development of Dallas, and Matthews Southwest. These companies will present their credentials to the city somewhere in the neighborhood of February 25-27.

For the most part the process is now specifically looking at the hotel. Yet the Matthews firm has already submitted a development package that includes the surrounding development.

Anyone who is not familiar with why I feel the hotel should go on the south side of the DCC can read my Dallas South post and Dallas Morning News column on the subject. But in a nutshell here are 4 advantages the Matthews’ South Side Gateway option.

Cost

Anytime you are talking about a publicly funded project, cost is a concern. With the numbers I’ve stated above, we’re looking at roughly 2.5 times more just in land acquisition on the north location vs. the southern one. It’s not to late for the city to move to the more logical choice. Especially if they asked the developer to pick up the $500,000 option fee that would be lost.

Transit Oriented Development

Right now the Convention Center Hotel Station is a ghost town, literally dark and empty most of the time. The South Side location is literally across the street from the site. Anyone with a hint of vision sees the day when a conventioneer flies in to DFW, gets on the DART rail, stops and the Convention Center Station and walks off the train and right into their hotel.

The South Side on Lamar is already evidence of TOD, with The Beat Condos sitting right on top of the Cedars DART station. Convention goers can access the Cedars in the South, the West End, Victory, Arts District and all places north via the train.

Entertainment District

In addition to the 4 acre hotel site, Matthews has proposed 8 additional acres of development. This would include:

o 100,000 sq ft of entertainment

o 100,000sq ft of retail

o 100,000 sq ft of office/commercial

o 750,000 sq ft of residential (approximately 750 units)

This is coupled with what already exists on the South Side including:

www.gilleysdallas.com

www.thepalladiumballroom.com

www.studiobaronlamar.com

www.theloftdallas.com

 

www.texascaribbeanfoods.net

www.brooklynjazzcafe.com

 

www.openingbellcoffee.com

www.poordavidspub.com

www.absinthelounge.net

www.amusedallas.com

We’ve seen how long development can take around an anchor venue. Victory took time, and what about all that development around the Ballpark in Arlington voters were promised in the early 90′s? On the South Side we have a head start.

Southern Dallas Development

Everyone I’ve talked to about this south side convention center have reacted in one of two ways – “What a great idea” or “I don’t care where it goes.” I haven’t heard a solid reason on why the parking lot on Young is THE BEST spot.

But the Eddie Deans location is the BEST spot because of the 3 business reasons listed above plus it’s a tangible sign that the city is serious about developing Southern Dallas.  While public money given to developers in Victory and the downtown core, at least one developer in Southern Dallas has invested in the city (yes, that’s a reference to the police station).

Most folks thought I was just shooting from the hip with this idea, but there are real people willing to do real work to make this happen.  Let’s see what goes down in the next couple of weeks, but anyone who thinks this is a good idea should let their councilperson know.

dallassouth01.jpg

 

Kirby Warnock questions services available in Southern Dallas

Posted on by
Reply

Last week Kirby Warnock continued to make the case for improved services in Southern Dallas via a thoughtful Dallas Morning News.  Here are some highlights from Mr. Warnock's column:

  • What has become painfully obvious to me is that there are two Dallases, and I'm not talking about the racial divide. I'm speaking of basic city services: roads, parks and code enforcement. The city cannot do anything about the demographic makeup of my neighborhood, but it can do something about the roads and parks.
  • First, our roads. They are in worse shape than our northern neighbors'. Oak Cliff has more streets that require resurfacing, more that lack curbs and sidewalks, and more without street lights than north Dallas. These statistics come from the city of Dallas' Web site, under "unfunded needs." Why can't the city pave and repair our roads with as much vigor as it does the northern half?
  • Second, our parks. A visit to Kidd Springs Rec Center in Oak Cliff should be contrasted with a visit to the Churchill Rec Center in North Dallas. Don't our children deserve a decent, well-maintained rec center, too? A quick check of the Dallas Parks Web site shows that of the seven parks with Wi-Fi access, only one of them (Kidd Springs) is south of the Trinity River. The other six are all in North Dallas. There are three tennis centers in North Dallas, but only one in Oak Cliff.
  • Third, our public schools. Results from the DISD show that W.T. White and Hillcrest high schools (in North Dallas) had 34 and 46 students, respectively, pass the college-level AP exams. In Oak Cliff, Sunset, the high school nearest me, had 10. (Please don't tell me to consider private schools in my area, as I am a longtime public education advocate.)

  • Don't minority families in Dallas deserve a decent road, a decent park and the junked cars to be removed from the neighborhood eyesore?  After all, they – and I – have children and a yearning for a decent quality of life.

See Mr. Warnock's entire column by clicking here.


 

Dallas Morning News column – Convention hotel should shift south

Posted on by
Reply

This is a column that I wrote which appeared in the Dallas Morning News on Thursday.  Dallas South readers saw most of this last week.  There are however a couple of points that I didn't make in last week's post.

Plans for a Dallas Convention Center hotel are moving forward, and Mayor Tom Leppert would like to see it built before the Super Bowl comes to town in 2011. While the city looks into financing the project, the discussion will soon move to where the hotel should be located.

For those who have dared to dream of a hotel constructed near the convention center, the vision usually includes a structure on the "front," or downtown side, of the building. I've always thought the same thing.

But over the weeks since I wrote my first Viewpoints column on the hotel, another potential site has emerged. Imagine, if you will, a hotel erected on the southern side of the convention center. Use Eddie Deen's Ranch as a reference point.

In that initial Viewpoints column, I made the following argument:

Convention visitors judge a host city by what goes on each day after the meetings are over. Where do we eat? Is there anywhere to shop? How long does it take to get to the hottest night spot?

A hotel built on the north side of the convention center would have to start from scratch to create a place for conventioneers to go after hours. The alternative is to find a way to connect with revitalization efforts on Main Street downtown.

But an entertainment district already exists just south of the convention center, and that area continues to blossom. Anchored by the South Side on Lamar lofts, Lamar Street offers plenty to do for visitors in search of post-meeting fare.

Hotel occupants leaving a southern location would spill across Interstate 30 into Gilley's Dallas and The Palladium Ballroom. Brooklyn Jazz Cafe is about a quarter-mile from this proposed site.

Couple these businesses and others in the area with the diverse residency of the South Side lofts and The Beat condos, currently under construction, and you have the makings of a round-the-clock destination. There is plenty of space along Lamar to add to the mix of retail, residential, office and entertainment that are already in place.

The City Council and city staff have a strong desire to connect the convention center with Dallas' downtown core. But urban planners have long encouraged the city to expand its definition of downtown. Woodall Rogers is scheduled to be decked in order to bridge the Arts District with Uptown. Why not do the same with I-30 and connect the convention center with the Cedars?

A hotel on the convention center's south side would have convenient highway access and sit only yards away from the DART's Convention Center station. Another advantage is that the site is near the middle of the convention center, so visitors would never have to trek the full length of the building to get to and from their rooms.

The cost for climate-controlled connectivity between the hotel and the center would likely be less than other proposed locations because of the site's proximity to the main building.

Speaking of cost, land acquisition on the south side of the center should carry a lower price tag than the leading sites on the north side.

It makes perfect business and logistical sense.

But there is another benefit that is unique to this location. When developers in the area look at a map, they draw a line at I-30, and many still refuse to look at anything south of that point. Progress on South Lamar shows us that this school of thought is changing.

Here is an opportunity for the city to continue to push development toward South Dallas with more than an auto parts store or a fast-food stand. The taxpayer-funded American Airlines Center has created a vibrant new entertainment district at Victory Park. Money that the city invested in redeveloping the Mercantile Building will pay big dividends for Main Street and Dallas' downtown core.

Now it's time for the Cedars – with a little help from City Hall – to realize its full potential.

The convention center hotel should be built on the southern side of the Dallas Convention Center. Politicians who have pledged to support economic development in southern Dallas have a chance to prove that their words are more than hollow campaign-season promises.

dslogo1.jpg

State Senator Royce West to open 2nd District Office

Posted on by
13

royce.jpgOn Thursday January 31, State Senator Royce West will host the Grand Opening of his 2nd District Office.  The Deep Ellum office is located at 2612 Main Street in Dallas.

The public is invited to come out an meet Sen. West and his staff, share in food and fun, as well as discuss ideas and concerns regarding the district.  The grand opening is scheduled to begin at 7:00 p.m.  For more information call 214-741-0123.

Wheatland Town Crossing tenant list

Posted on by
1

I finally have an accurate tenant list for Wheatland Town Crossing that's going up just north of I-20 in Southern Dallas.  Here are the current tenants scheduled to open in the shopping center.

target1.jpg    logo_ross.gif     marshalls_logo.jpg


aldi.gif     logo-office-depot.gif    logo_bankofamerica.gif  

   


wachovia_20color_1.jpg    chilis-logo.gif    chickfilalogo.gif
 


In addition to these businesses, there are 12 retail sites still available for more tenants.  This is positive news in the way of economic development for Southern Dallas.  Target is scheduled to open this March.

dallas-south-logo.jpg

Dallas Convention Center Hotel should be built on building’s south side

Posted on by
1

dallasconv.jpg

Plans for a Dallas Convention Center hotel are moving forward, and mayor Tom Leppert would like to see it built before the Super Bowl comes to town in 2011. While the city looks into financing the project, the discussion will soon move to where the hotel should be located.

For those who have dared to dream of a hotel constructed near the convention center, the vision usually includes a structure on the “front” or downtown side of the building. In my mind, I’ve always thought the same thing.

But over the weeks that have passed since I wrote a Dallas Morning News article on this subject, another potential site has emerged. Imagine if you will a hotel erected on the southern side of the convention center. For the sake of this post, use Eddie Deen’s Ranch as a reference point.

In the Viewpoints column that I wrote for The News, I made the following argument:

Convention visitors judge a host city by what goes on each day after the meetings are over. Where do we eat? Is there anywhere to shop? How long does it take to get to the hottest night spot?

…consider (San Diego’s) Gaslamp Quarter, within walking distance of the convention center. There conventioneers find top-notch dining spots, shopping outlets, night clubs and live music spots. After a day full of workshops and meetings, the Gaslamp offers a great place to unwind.

A hotel built on the North side of the convention center would have to start from scratch to create a place for conventioneers to go after hours. Either that or find a way to connect with revitalization efforts on Main Street downtown.

Just south of the convention center an entertainment district already exists and the area continues to blossom. Anchored by the South Side on Lamar Lofts, Lamar Avenue offers plenty to do for visitors in search of post meeting fare.

Hotel occupants leaving a southern location would literally spill across I-30 into Gilley’s Dallas and The Palladium Ballroom. Brooklyn Jazz Cafe is about a quarter mile from this proposed site. There are a number of other destinations already in the area.

  • Studio Bar and Grill

Couple these businesses with the diverse residency of the South Side Lofts and The Beat Condos currently under construction, and you have the makings of a round the clock destination. There is plenty of space along Lamar to add to the mix of retail, residential, office, and entertainment that already exists.

A hotel located on the convention center’s south side would have easy access to I-30 and sit only yards away from the DART rail’s Convention Center Station. Another advantage of this sites is that it is near the middle of the DCC, so convention visitors would never have to trek the full length of the building to get to and from their rooms.

When developers in the area look at a map, they draw a line at I-30 and refuse to look at anything South of that point. Yet the progress on South Lamar shows that this does not have to be the case. I strongly support the Trinity Bridges designed by Santiago Calatrava, but a hotel located on the DCC’s south side would serve as a stronger financial link between downtown and Southern Dallas.

The taxpayer funded American Airlines Center has created a vibrant new entertainment district at Victory Park. Money that the city has invested in redeveloping the Mercantile Building will pay big dividends for Main Street and the Dallas’ downtown core. Now it’s time for South Lamar -with a little help from City Hall- to realize its full potential.

The convention center hotel should be built on the southern side of the Dallas Convention Center. For politicians who have pledged to support economic development in Southern Dallas this is a chance to prove their words are more than hollow, campaign season promises.

dslogo1.jpg

More on Dallas Convention Center Hotel this Monday

Posted on by
Reply

Since my Dallas Morning News Viewpoints article advocating a convention center hotel, I've had the chance to examine the issue a little closer.  On Monday, I will launch a campaign regarding the proposed hotel that is consistent with the mission of this site.  

Please check back Monday morning (or Sunday night) for the news.