Early voting in Texas is underway, and one of the most talked about items on the ballot for Dallas residents is Proposition A, which would increase the Hotel Occupancy Tax to pay for a new convention center and some Fair Park improvements.
Prop A would raise the hotel occupancy tax by 2% — from 13% to 15% — which will reportedly generate about $1.5 billion over 30 years to repay the bonds that would initially fund the projects.
The majority of the money will go to a new Kay Bailey Hutchison Convention Center, with about $300 million going to renovate and repair Fair Park attractions such as the Cotton Bowl, the Coliseum, the Band Shell, the Centennial Building, the Automobile building, and the Music Hall.
Many Dallas city leaders have expressed support for Prop A, including Mayor Eric Johnson, as reported by The Dallas Express.
“At both sites, we are not putting our best foot forward,” the mayor said last month, referring to the current convention center and Fair Park.
Johnson has said that the passage of Prop A will turn the center “from an albatross to an engine,” suggesting that “It’s up to the citizens of Dallas to take the next step.”
In May, Dallas City Council voted 14-1 to place the proposition on the ballot, as reported by The Dallas Express.
The lone dissenting vote came from Councilwoman Cara Mendelsohn of District 12, which consists of the portion of Far North Dallas that touches Denton and Collin counties.
Mendelsohn has continued to lead the charge against Prop A, tweeting earlier this month that “Billionaire land owners LOVE this project.”
Billionaire land owners LOVE this project. Some folks ask what I think about @CityOfDallas Prop A on Nov ballot. My response: How much will it cost to tear down & rebuild? Answer: Nobody knows. We need actual financials. Recession coming. Ps-You still owe $200m on it. pic.twitter.com/bR5vHo4PJN
— Cara Mendelsohn ? (@caraathome) October 12, 2022
Mendelsohn has argued that the project’s actual costs have not been fully calculated and that there is no clear evidence the convention center rebuild would deliver the promised economic growth and jobs.
“Everyone likes to say the project will spur economic development in the area, and that has been said every single time,” said Mendelsohn.
Mendelsohn has also argued that the COVID-19 pandemic permanently changed the convention industry, and the full impact has not been determined.
“We don’t know the economic development benefit,” she added. “We have not seen examples where this type of transaction has actually paid off in visitors and economic impact. What we do know is only a tiny portion of the hotel room nights in Dallas are associated with conventions.”
Mendelsohn previously told The Dallas Express she wished the proposition would have been “broken up in multiple sections so voters can select what they want to see happen, from an update (or, modernization) to additional facilities like a ballroom and break out rooms, to tearing it down and rebuilding it.”
Mendelsohn has also expressed concerns that the city of Dallas does not have the resources to take on the project, citing leadership changes, staffing challenges, “and many departments that aren’t currently able to deliver day-to-day service at the level we expect.”
“These presentations haven’t answered the question: Does city management believe this a priority for the city? Do we, as representatives of our districts, really think it is? And do our residents think this is a priority?”
Supporters of Prop A claim that “visitors” to the city will fund the entire costs of the projects through the increased occupancy tax on hotels.
“If approved, this $1.5 billion initiative will require no increase whatsoever in sales taxes or property taxes,” Mayor Johnson said at an event to kick off the campaign for Prop A. “It will be funded entirely by visitors through a 2 percent increase in the Hotel Occupancy Tax.”
However, if the increase in the occupancy tax collects fewer funds than anticipated, Dallas taxpayers could potentially be on the hook.
The Dallas Express reached out to Mendelsohn for additional comment but did not receive a reply by press time.