More than $100 million in public incentives for the redevelopment of Bank of America Plaza in Dallas have moved forward after approval from two city advisory boards. The Dallas Business Journal reported that the Downtown Dallas Development Authority and the Downtown Connection Tax Increment Financing (TIF) District agreed to increase their combined subsidy for the project from $98 million to $103 million.
Developers Mike Ablon of PegasusAblon and Mike Hoque of Hoque Global are leading the $409 million proposal, which aims to convert parts of the 72-story, nearly 2 million-square-foot building at 901 Main Street into a hotel with event and retail space, as well as a parking garage. The plan also includes elevated pedestrian connections intended to integrate the project into the broader downtown area.
The developers, operating under 901 Main PAHG Partners, are under contract to purchase the tower from Chicago-based Metropolis Holdings. The Dallas Central Appraisal District has valued the property at $130 million.
The recent subsidy increase will help cover costs associated with designing a new garage that could support up to 200 residential units or hotel rooms above it. Additionally, both advisory boards approved expanding the TIF district’s boundaries to include an adjacent parcel tied to the project.
Mike Ablon addressed concerns about downtown Dallas losing major tenants, noting that “You’re not catalytic if you just put lipstick on a building,” he told the boards. “We have to change the playing field.”
Under terms set by city officials, PegasusAblon must close on its purchase of Bank of America Plaza by September next year and complete redevelopment by fall 2032 in order to retain eligibility for public incentives. The deal now awaits a City Council vote scheduled for October 22.
If approved, this would represent one of Dallas’ largest city-backed downtown redevelopments in recent years.
