Dallas is considering buying back the old Dallas Morning News building downtown from developer Ray Washburne, a move that could boost the city’s $3.7 billion convention center overhaul.
City Council members were expected to deliberate the potential purchase of the historic property at 508 Young Street during a closed session today, the Dallas Business Journal reported.
Washburne, who bought the building from the Dallas Morning News’ parent company in 2019 for $28 million, had previously floated plans to turn the property into a mixed-use district with hotel, retail and entertainment space to complement the convention center redevelopment.
But those plans were ultimately scrapped, and Washburne said earlier this year he planned to sell the site to a data center operator in February, alleging poor communication from the city and leaving City Hall scrambling.
That deal, which Washburne said was under contract with “one of the major data companies,” may still be in play, but Dallas officials are hoping to get ahead of it.
Voters agreed to fund the expansion and reimagining of the Kay Bailey Hutchison Convention Center through a hotel tax increase in 2022.
A new proposed alignment for the center, revealed in February of last year, hedges in a southern portion of the former newspaper building.
The building, home to the newspaper from 1949 until its 2017 relocation, spans more than 373,000 square feet and is partially gutted. Its taxable value is $23.5 million, according to the Dallas Central Appraisal District. Washburne has said he has spent at least $1 million gutting the building.
A potential city purchase would give Dallas control of the parcel and preserve its ability to align the convention center with broader downtown plans. If council members opt not to acquire the property, it will likely force a redesign of the convention center layout.
A well-known investor, Washburne also owns the Highland Park Village luxury shopping center, and his other downtown holdings include the Greyhound terminal at 205 South Lamar Street.
— Judah Duke
Read more
Washburne says city of Dallas stonewalled him on newspaper building
City leaders on back foot in Washburne’s data center deal
Hotel buyer Ray Washburne bringing rooftop bar to Design District
