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City of Dallas suspends all real estate deals after problematic $14M purchase

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The Brief

  • City Manager Kimberly Tolbert has told the city to stop new real estate purchases.

  • In 2022, the city purchased an office tower for $14 million that had several fire code violations.

  • The building would require many millions more to get up to code and the city is spending $73,000 each month to maintain and secure the building.

DALLASDallas City Manager Kimberly Bizor Tolbert admitted in a new report that Dallas taxpayer dollars were wasted when the city purchased an office tower riddled with code violations.

Dallas Permit Office Problems

The backstory

An 11-story office tower located at 7800 N. Stemmons Freeway was made under the city’s prior administration in 2022.

The $14 million building was supposed to serve as the city’s new building permitting office, but was closed after 39 fire code violations were discovered after employees moved in.

The city invested $7 million more into the building.

What we know

In a new report, Tolbert said when the city decided to purchase the building, “staff conducted very limited due diligence” and that the decision was “neither strategic, nor well-considered.”

As it stands, the building would require many millions more to get up to code and the city is spending $73,000 each month to maintain and secure the building.

Tolbert said it is time to stop throwing good money after bad and, instead, the building needs to be sold for redevelopment.

She has instructed staff to immediately suspend all real estate purchases.

Instead, the city will work to evaluate and repurpose the city’s existing assets.

As for the building permit office, Tolbert says because the city is publicly launching a new online land management system, meaning the permitting center is no longer needed.

Leaders responsible for the purchase of the building are said to no longer be with the City of Dallas.

Dig deeper

You can read the full report here.

Click to open this PDF in a new window.

The Source

Information in this article comes from a City of Dallas report released on Friday, April 18 and past FOX 4 reporting.

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