Is the iconic Dallas city hall's days numbered? Mayor Johnson is pushing to move and sell the property

Mayor Eric Johnson and City Council Members are getting closer to deciding what to do about the Dallas City Hall. Tear it down and sell the land in the heart of downtown Dallas, or keep the nearly 50-year-old iconic building designed by world-renowned architect IM Pei.

Ahead of last week's briefing, the city released new estimates of the cost to fix and update the building. They range from more than $531 million to nearly $611 million. This covered only major repairs over a six- to ten-year period. Prior estimates were over $1 billion over a 20-year period that included more than just repairs.

Eye on Politics reporter Jack Fink spoke exclusively with Dallas Mayor Eric Johnson about what he thinks should be done with the current Dallas City Hall.

Johnson supports selling Dallas City Hall site for redevelopment

Johnson says he wants the city to move out of City Hall because the latest cost estimates are too expensive for taxpayers. 

Johnson said the land could be sold to a private developer for something new.

"The numbers have now been proven multiple times to be accurate, and it would be very costly to stay, and so I would be in favor, for sure, of us saving the taxpayers considerable money by leaving this obsolete building," said Johnson. "That would make this location available for development, which I would also support. I believe that will be a very, very big part of the future of downtown and its revitalization. That's a very key element to the revitalization. So, in case people are trying to keep track: Yes, to moving out of this building and into another building and yes, to redeveloping this site." 

Johnson said relocating to another downtown building would cost much less.

"There are alternatives in the market, in the central business district, and around the central business district where we could actually locate City Hall, and it would cost us less money than repairing this place," he said. "In other words, we could actually save the taxpayers of Dallas significant money by actually moving out of this building." 

Will Downtown Dallas soon be deserted?

June began with the Dallas Mavericks announcing that they are moving out of downtown, but staying in Dallas, and heading to the old Valley View Site along the LBJ 635 Freeway at Preston Road and near the Dallas North Tollway, where they will build a new arena, plus restaurants, stores, and residential areas. The team decided against moving to the current City Hall, which has been floated as an idea.

The next day, the Dallas Stars announced they're also moving out of downtown Dallas, but unlike the Mavs, they intend to leave the city for Plano. Where they will build a new arena, restaurants, residential, and retail at the Willow Bend Mall area.

While the teams are leaving downtown, others are, too.

AT&T is moving its headquarters out of downtown and to Plano, near the Legacy development and the Dallas North Tollway.

Bank of America is leaving downtown's tallest skyscraper for Uptown across the street from Klyde Warren Park.

Fifth-Third/Comerica is also packing up from downtown and moving to the Preston Center near Northwest Highway and Preston Road.

Dallas reportedly has the second-highest downtown office vacancy rate in the U.S.

Last week, during an unrelated news conference, Governor Greg Abbott said it's time for a reboot.

"That says something when a city has that high of a level of a vacancy rate," said Abbott. "It means you're not creating the type of environment that is conducive to businesses to locate there. So, it's clear the city of Dallas still has a need for further course correction to create the vibrant downtown environment that will attract businesses that may attract residents to live in a downtown-type setting." 

Dallas Stars' relocation plans not final, Johnson says

The mayor insists that neither decision by the Dallas Mavericks and the Dallas Stars to move out of downtown is a done deal.

"The Valley View site that the Mavericks are looking at, it's in Dallas, that's a good thing," Johnson said. "Let's start with that. But as far as the Stars are concerned, that negotiations from my understanding, it is a letter of intent. It is not a final deal. It's a step, but not a final step."  

Johnson said that City Manager Kimberly Bizor Tolbert continues negotiating and is trying to keep the Stars at the American Airlines Center past 2031, when its lease expires.

Dallas doesn't have much time, because on Monday, the Plano City Council will vote on an agreement for the Stars to build a new arena at the Willow Bend Mall site.  

"The City Manager and I have talked extensively about this," said Johnson. "She is still in regular daily contact, basically, with both teams about options. Respective to the Stars in particular, to stay at the American Airlines Center, that is still a goal of mine for them to continue to be at the American Airlines Center ... These are business decisions and they're going to be made for business reasons." 

The mayor said it's no longer just about the teams paying rent and getting a share of concessions and parking at venues like the American Airlines Center. Both teams want to have hotels, restaurants and retail around their new arenas.