Dallas officials launched a formal investigation on Thursday to determine the cause of the abrupt relocation of nearly 70 employees from the City’s new Development Services Department office at 7800 N Stemmons Fwy.
The structure was purchased in August 2022 for $14.2 million, and an additional $6.5 million in taxpayer funds was used for renovations. bought On April 9, employees from the Development Services Department were “instructed” to move back to their previous space at the Oak Cliff Municipal Center on East Jefferson Boulevard due to reported code violations — a situation Council Member Cara Mendelsohn (District 12) found ironic as the officials responsible for approving permits could not meet the requirements for one of their own buildings.
Most committees typically receive briefings to plan ahead,” said Mendelsohn, chair of the Ad Hoc Committee on General Investigating and Ethics. “That’s not the case for this committee. Its role is to conduct an investigation. I requested information on those involved, the decision-makers, the amount of money spent on specific aspects, and the specific steps taken.” move back Jennifer Nicewander, director of the Office of Bond and Construction Management, began the meeting with a 26-page presentation outlining a timeline of the building purchase, inspections, improvements, and budget estimates. However, she did not address the individuals involved or explain the decision-making process.
“I was anticipating more detailed information,” Mendelsohn said. “Covering these areas is crucial. This is not a witch hunt. We need to comprehend it. However, what I know is that we cannot continue to acquire buildings without a specific checklist of necessary actions.”
For nearly three hours, officials questioned City staff about pre-purchase evaluations, building inspections, the requirements for obtaining a temporary certificate of occupancy (TCO), elevator functionality, asbestos removal, and fire codes. “First and foremost, I want the committee to understand that we take full responsibility for the delays in occupying the building,” said Andrew Espinoza, director and chief building official for the Development Services Department (DSD). “This project has been surrounded by misconceptions. There is also confusion among the public, and we acknowledge our accountability for that confusion and for the delays.” DSD has gained a reputation for inefficiency and dysfunction under outgoing City Manager T.C. Broadnax, who oversaw periodic permit backlogs, increased crime rates, tax collection, and City spending during his seven years in charge.
Despite this, Espinoza faced the brunt of the scrutiny on Thursday, as officials repeatedly questioned him about his knowledge, timing of decisions to move into the building in December and vacate it in April, and the factors influencing those decisions.
“Why did you do that?” Mendelsohn inquired.
She and other council members posed this question multiple times during the meeting.
Espinoza explained, “It was a challenge for us. We communicated to the staff to stay on their floor. They did not comply. To avoid disruptions in construction areas, I made the decision to relocate them back to Oak Cliff. There were no issues of incompetence or life and safety concerns. I simply wanted to prevent staff from moving back and forth between floors and creating misunderstandings. I wanted to put a stop to that.” That ended up being the main point of Espinoza’s argument — a point that council members on the committee seemed to struggle to accept.“Our bond construction manager is on site every day,” Espinoza said. “We’re still working on IT stuff. We’re working on electrical stuff. We’re working on things, and sometimes, the mixing of different systems can cause something. There was no issue when we issued the TCO. I just want to be very clear about that.”
When the City took control of the building in September 2022, floors two, five, and nine were empty. In December 2022, floors one and eight were vacated, and “permits were issued, and demolition and finish out began on vacant floors 1, 2, 5, 8, and 9 for Development Services staff,” the presentation by staff showed.
By July 2023, DSD staff was concentrated on floors one through five. A tenant remains on the seventh floor, but the lease expires in 2026. Floors six through 11 “are primarily planned for departments located at [Oak Cliff].”
DSD employees in December 2023 began moving to the fifth floor, and a TCO was issued the same month. Through March, the same workers “continued transition” to the second and third floors.
Committee members repeatedly questioned Espinoza’s assertion that he only moved the department back to Oak Cliff because of “roaming” employees. But Espinoza did not change his position.
“We expect our workers to be professional, and we expect them to adhere to the rules and regulations,” he said. “We had sent communication to them that the fifth floor is the floor they need to be on. There’s no reason for them to be on any other floor when we issued the TCO.”
“I was super excited about [this building],” Council Member Gay Donnell Willis (District 13) said. “I still am. I thought it was a great idea to make all these departments together. … So, this is a big disappointment.”
She asked for emails City employees reportedly sent to managers and others about safety concerns at the building. Espinoza doubled down.
“Several employees were going to media outlets and council members about things that weren’t necessarily true,” he said. “I made the decision to move back to [Oak Cliff]. … [They were] frankly talking to the media and fabricating stories. It’s exhausting.”
To help make sure officials avoid a similar incident at this building and elsewhere, Nicewander said the City will use a third party “to see if there’s anything else we need to do” in evaluating properties for occupancy.
At Mendelsohn’s urging, committee members agreed to ask the Office of the City Auditor for an audit into what happened at 7800 N Stemmons Fwy. The scope will include an inquiry into the emails City employees sent to staff about working conditions at the building.
In addition to the $20.7 million spent to purchase and renovate the building, another $7.8 million is designated for electrical and mechanical upgrades and other work. The 10-year-plus capital needed for the building is projected at $9 million.
for electrical and mechanical upgrades and other work. The 10-year-plus capital needed for the building is projected at $9 million.
Dallas officials started a formal investigation on Thursday into what prompted the sudden removal of nearly 70 employees from the City’s new Development Services Department office at 7800 N Stemmons Fwy. The building was bought in August 2022 for $14.2 million, and another $6.5 million in taxpayer money was spent renovating it. On April 9, […]
“Several employees were going to media outlets and council members about things that weren’t necessarily true,” he said. “I made the decision to move back to [Oak Cliff]. … [They were] frankly talking to the media and fabricating stories. It’s exhausting.”
To help ensure officials avoid a similar incident at this building and elsewhere, Nicewander said the City will use a third party “to see if there’s anything else we need to do” in evaluating properties for occupancy.
At Mendelsohn’s urging, committee members agreed to ask the Office of the City Auditor for an audit into what happened at 7800 N Stemmons Fwy. The scope will include an inquiry into the emails City employees sent to staff about working conditions at the building.
In addition to the $20.7 million spent to purchase and renovate the building, another $7.8 million is needed for electrical and mechanical upgrades and other work. The 10-year-plus capital needed for the building is projected at $9 million.
