The City of Dallas Economic Development Committee voted to advance a package of actions that would expand the Downtown Connection tax increment finance (TIF) district to include 901 Main Street (the Bank of America Plaza) and 1401 Commerce Street (the Magnolia Building) and recommend a project subsidy for the 901 Main redevelopment not to exceed $103,000,000. Vice Chair Ridley moved to advance staff’s recommendation and the motion carried, with the committee recording six votes in favor and one opposed; the transcript does not list individual roll-call votes.

The measure now moves to full City Council, which must call and hold a public hearing under state law before amending a TIF district project plan. Staff said City Council is scheduled to call the public hearing on Oct. 8 and hold it on Oct. 22, at which time the council will consider two items: (1) the TIF plan amendment to expand the district boundary and (2) the proposed subsidy for the redevelopment project.

Why it matters: Staff and the TIF board presented the package as a large-scale effort to reuse underutilized downtown office space, stabilize downtown tax base and support place‑making along the Lamar Corridor in the Central Business District (CBD). The redevelopment is tied to other downtown investments, including the Convention Center redevelopment, staff said.

What the plan would do: Kevin Spath, Director of the Office of Economic Development, and Tamara Leake, interim assistant director over real estate development incentive programs, described a redevelopment led by PAHG Partners LLC (a joint venture the presentation identified as Pegasus Ablon and Hoch Global). The scope described by staff includes: reducing the tower’s office area from about 1,800,000 square feet to roughly 1,500,000 square feet; adding about 200–280 hotel rooms and roughly 330,000 square feet of hotel amenity space; constructing a new 1,115-space parking garage; creating about 15,000 square feet of street-level retail/restaurant space; and adding an elevated pedestrian walkway linking the garage and hotel lobby. Staff stated the total project cost is approximately $409,086,740.

TIF subsidy and conditions: Staff recommended, and the Downtown Connection TIF District Board recommended with amendment, a TIF subsidy in an amount not to exceed $103,000,000 (the TIF board requested an additional $5,000,000 specifically to require the parking garage be designed to support future vertical development equivalent to 200 hotel or residential units). Leake told the committee the subsidy is a combination of directly reimbursable costs (environmental remediation, interior and exterior demolition, street and utility improvements, streetscape work) and a performance-based grant component; if reimbursable costs come in lower the total subsidy would be reduced. Leake described required preconditions and deadlines in the development agreement term sheet, including: close of acquisition by Sept. 30, 2026; evidence of debt and equity commitments by Dec. 31, 2026; an executed hotel franchise agreement by Sept. 30, 2026 with a four‑star or higher brand; building permit milestones; minimum street‑level occupancy requirements (minimum 5,000 square feet occupied) and an operational hotel; quarterly construction reporting; a local‑hiring expectation; and a post‑construction audit that could reduce the TIF subsidy proportionally if total project costs are lower than projected.

Board and district background: Leake summarized the Downtown Connection TIF District’s history: created by petition in 2005 to fund capital improvements and spur downtown redevelopment, with the Downtown Dallas Development Authority (DDDA) supporting implementation. Staff stated the district’s estimated net present value budget is about $402,900,000 and the district is scheduled to expire in December 2035 unless its budget is exhausted earlier. Staff said previous amendments (June 2022) created two subdistricts and increased the district budget to accommodate anticipated development; the boundary amendment before the committee would add 901 Main and 1401 Commerce to allow use of TIF funds for those redevelopments.

Committee discussion and concerns: Committee members asked about local‑hiring monitoring, the TIF budget capacity to support both the 901 Main and Magnolia projects, timing and urgency of the public schedule, and whether the Magnolia project was sufficiently vetted. Tamara Leake told the committee the district was increased in 2022 to create capacity and staff believes there is budget capacity to support both projects, with timing of payments tied to project performance and completion. Several members urged careful vetting of Magnolia before any subsidy decisions; staff and the chair clarified that adding Magnolia to the district boundary is not a request for TIF dollars for that property today but would enable future applications.

Vote and next steps: The committee approved advancing staff’s recommendation to full council with the TIF board’s amendment (the additional $5,000,000 condition for garage vertical support). Council will receive the items on Oct. 22 after a public hearing called on Oct. 8. If City Council approves the plan amendment and subsidy, the development agreement and associated conditions described by staff would govern eligibility for TIF reimbursements and grant payments.

Notes and limitations: The committee record shows a 6–1 committee vote but does not list individual members’ roll-call positions in the transcript. Specific details about the hotel flag, final equity and debt commitments, and final construction timetable were described as contingent on developer negotiations and ongoing underwriting; staff indicated some requirements (for example, the hotel franchise) must be met by contract dates identified in the term sheet.