Plaza Hotel Housing Project - Dallas the leader in municipal bailouts 1/12/9
Laura Dixon

Saturday morning, I attended a meeting at the Dallas' Plaza Hotel at Akard and I-30 regarding turning the property into the city's largest housing project.  I have questions and concerns regarding the city subsidized housing project to the tune of at least $4.5 Million. 

This project is the current ''Dallas Convention Center Hotel'' aka Ramada Plaza.  Can someone help me better understand how the city can afford this project and a new hotel project?  Or, how our elected officials see the two harmoniously cohabitating in the Central Business District? 

Does the ''Dallas Right to Vote'' group getting legs have anything to do with this project being pushed through the city approval process so swiftly?  Seems like the opposition to this Plaza Hotel project who might currently be supporting the Convention Center Hotel project couldt be swayed if the two are interwoven.

It is my understanding the Plaza Hotel is currently owned by a private developer (Larry Hamilton), who purchased the property in 2006).  It is valued by DCAD at under $2 Million, but the city is planning to buy it for $4.5 Million.   At the Saturday morning meeting, Mr. Hamilton stated he couldn't get investors on board for the hotel that he originally intended to rehabilitate.  So, let's bail him out? 

How big of a project do you need to fail for the city to bail you out?  Apparently, Hamilton didn't do his homework then.  At the Saturday morning meeting, it was obvious he still wasn't prepared.  Given that only about 10% of the questions were answered directly, and those that were answered only related to design and government subsidies.  Now, the city may be following in his footsteps.

Please encourage those in the city responsible for this project to do their homework.  They are proposing a terribly expensive experiment.  The impact of $4.5M in the Cedars neighborhood would be tremendously helpful if planned strategically.

I have no experience in this arena, so I may not fully understand the implications of a deal of this nature.  But, no one in that Saturday morning meeting has had experience with this type of project either, not the Mayor, not the other politicians nor the several homeless and indigent rehabilitation managers.  That's not an attack on them - simply the fact that this has never been done before. 

Dallas could end up being a trailblazer because of this, but it is just as likely we will have a black eye because of it.

Do we really need more housing projects in the Southern sector?  I asked them if they knew the ratio of subsidized housing units to unsubsidized in the other council districts because we were told all council districts have subsidized housing.  No one knew the answer other than the Mayor stating the southern sector has more. 

When you get into the meat of this deal, you see they plan for roughly 260 to 320 units, the overwhelming majority only being 350 sq ft.

The presentation was full of contradictions (see below) which is why I am confused and concerned about this project.

-  We want to do what is best for the community.  When 75-100 concerned citizens attending were asked to raise their hands if they thought this project would help them as adjacent land or business owners, only one hand was raised.

-  Hamilton has had several offers for the property for more than what they city will pay.   The elected officials said they wanted to do what would best help the tax base, but this project will be a non-profit.  While they will have to pay property taxes, the rate will be negligible compared to what a previously planned boutique hotel would generate.  (Hotel/motel tax is highest in the city).  Not to mention, a Plaza Hotel housing project will discourage other development in the neighborhood.

-  Victory Park on one side, Dallas' first high rise housing project on the other (closer to convention center, city hall, and our new downtown law school).

-  Investments in the neighborhood were brought up several times, but according to  Hamilton this is the project of last resort.

-  It is being pitched as a multi-family development, but the maximum capacity for an efficiency unit is 1 person.  Possibly two for a married couple with no kids.  Or, you could be single with kids.  The overwhelming majority of the meeting was spent discussing economics, but hardly any consideration was given to the social implications.

-  The old Holiday Inn at Central Expressway and Meadow road was demolished not too long ago for a new private development.  It's near a rail line, but away from the CBD and away from visitors, which is obviously too far out of the way for a hotel to succeed.  It is prime real estate for potential developers who see the potential of being between Downtown and the Trinity River corridor. 

If we all bought into the grand plans for the Trinity River corridor, the new highway, the new law school, the arena, the new convention center hotel, why would we put a housing project In the Plaza?  At what opportunity cost does this not make sense?  Has the city or someone related to this project conducted a Cedars Market Analysis?

No matter which way this goes, I want to see the Cedars and the city progress. 

Laura Dixon

(Ms. Dixon is a resident of District 14, and previously lived in District 2.)