Dallas is cutting Ray Washburne a big check.
The Dallas City Council voted to buy the former Dallas Morning News headquarters at 508 Young Street for $51.7 million, securing a critical piece of real estate for the city’s $3.7 billion convention center redevelopment, the Dallas Business Journal reported.
The 13–2 vote authorizes the city to acquire the 8.2-acre, two-building campus from the developer, whose firm purchased the site for $28 million in 2019.
The deal ends a standoff that began earlier this year, when Washburne threatened to sell the site to a data center developer. The move sparked outcry from officials and jeopardized years of planning tied to the Kay Bailey Hutchison Convention Center overhaul.
Washburne’s posturing paid off. The final price marks an 86 percent premium over what he paid, and the council’s vote positions him to retain involvement in the broader district vision.
The purchasing decision came just after City Manager Kimberly Tolbert directed staff to “immediately suspend all real estate purchases unless previously approved by Dallas voters or the City Council” earlier this week. That move was a reaction to the city’s failure to do due diligence before buying a building at 7800 North Stemmons Freeway for $14.1 million in 2022. The city has sunk $29 million into the purchase, repairs and carrying costs at that building, which it’s now trying to sell.
Meanwhile, Washburne is moving forward with plans to develop a mixed-use entertainment district on a portion of the newspaper site. That project is expected to include a 350- to 400-key hotel and 100,000 square feet of dining and entertainment space.
City leaders had been weighing eminent domain as a backup option if a deal fell through, underscoring the urgency of stitching together downtown parcels in time for the convention center’s 2029 target opening.
Washburne, one of downtown’s most influential private landowners, also controls nearby properties including Founders Square and a Greyhound station.
— Judah Duke
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