Ray Washburne’s pending sale of the old Dallas Morning News building for redevelopment into a data center has thrown a wrench in the city’s broader plans for the downtown property.
Dallas officials are scrambling to find solutions to maintain the area’s development potential as the sale of 508 Young Street threatens to sideline plans to integrate the 546,000-square-foot property into a larger convention center redevelopment, the Dallas Morning News reported.
The city could be considering buying the property itself, according to an agenda for a closed-door meeting for city council members scheduled for Wednesday. It states the purpose of the meeting is to “Deliberate the purchase, exchange, lease or value of real property located at 508 Young Street.”
The city is also considering revamping its convention center development to exclude the newspaper building, councilmember Paul Ridley told the outlet.
Washburne, the co-owner of Highland Park Village, purchased the property from A.H. Belo Corporation in 2019 for $28 million, or $51 per square foot.
The developer planned to integrate the property into a mixed-use entertainment district, including a hotel, as part of the convention center redevelopment.
Washburne ultimately decided to sell the property after failing to secure the city’s full backing for his entertainment district.
“My preference was to sell it to the city, or develop an entertainment district, but I never got clarity on what they wanted to do,” Washburne previously told the outlet. “I wanted to do a joint venture, and I spent millions on plans, but I can’t go ahead without a firm understanding of what the city wants to do.”
Newly appointed City Manager Kimberly Tolbert still hasn’t commented on the matter or explained why Washburne’s communication was allegedly ignored.
Ridley said the city will continue to work toward finding a resolution that aligns with Washburne’s plans and the city’s vision for the area.
Washburne has secured several downtown properties in anticipation of the convention center’s redevelopment. They include a 152-key hotel in Dallas’ Design District and the Greyhound Station on South Lamar Street.
— Andrew Terrell
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