New Convention Center and Entertainment District Could Mean Big Opportunities for Dallas

With the passage of Proposition A last month by Dallas voters, chances are good that this will be just the spark needed to revitalize the south side of Downtown Dallas, as well as the Fair Park area. That’s good news for the economy and potentially good news for new development and the construction industry.

Proposition A allows the City of Dallas to increase the hotel occupancy tax (HOT) by 2% for visitors and tourists who stay overnight in Dallas hotels. This tax revenue will be used to repay the $1.5 billion in revenue bonds that the City plans to sell to finance a new 2.5-million-square-foot convention center with a construction price tag of up to $2 billion. A construction timeline could begin as soon as 2024 with targeted completion in 2028. The city also plans improvements to Fair Park, Dallas’ 277-acre Art Deco National Historic Landmark, which were approved in 2020. The master plan includes $300 million in renovations to the Automobile Building, the Centennial Building, the Band Shell, Music Hall, the Coliseum, and the Cotton Bowl.

So, why does all of this matter to Adolfson & Peterson Construction? Building a new convention center and entertainment district coupled with renovations at Fair Park will likely attract new hotel construction or the adaptive reuse of neighboring buildings for hospitality.

When the Staples Center was built on to the existing LA Convention Center in Los Angeles in 1999, it immediately served as a boon to the region with multiple hotels popping up all around it and growth continues as entertainment venues and events are added, according to a recent report by the L.A. Business Journal.

And, as the City of Fort Worth ramps up its convention center overhaul there are four hotels under construction or recently opened in the downtown area. Additionally, earlier this year, Irving-based ICON Lodging purchased 110 West 7th St., an 11-story, 101,390-square-foot office building in downtown that is likely to be repurposed as a hotel, according to an April report by KERA News.

Like L.A. and Fort Worth, the City hopes to host more events, boost tourism and open up about 30 acres of land for a new entertainment district that connects downtown and the Cedars neighborhood.

Already, the bulk of funding is slated for tearing down the current convention center and building a larger one alongside South Lamar Street/Botham Jean Boulevard, which would aid those goals.

The catalyst for anticipated growth is certainly there if these plans move forward as anticipated. We will keep a close eye on these projects; they could certainly trigger demand for multifamily and hospitality projects in neighboring obsolete buildings that are ripe for conversion.

Future projects like the adaptive reuse that AP is working on currently at Santander Tower would be a win-win for these revamped areas to provide additional residential and hospitality opportunities. Dallas scored a victory and we’re ready to see the opportunities that come with it.

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