Shock and Fail: The Lorenzo Hotel Was To Get COVID19 Relief Dollars?

The Lorenzo Hotel almost got $1.9M in CARES Act funding through a provision City Manager’s staff tried to push through this week.

Cara Mendelsohn, Dallas City Council member for District 12, on Thursday called out the city manager’s office for seemingly trying to hide the proposed $1.9M in COVID19 relief money to a prominent hotel developer.

The agenda item was described in a presentation as a $1.8 million debt payment, with no mention the money would be for the Lorenzo Hotel in the Cedars.

A deal the city council reached in 2013 used federal HUD money to turn a blighted abandoned building into the boutique Lorenzo Hotel. Visit Dallas has been unable to help and like many hotels is struggling. If the owner does not make the payments to HUD that is owes, the city is the guarantor.

Lorenzo Hotel or Rental Assistance

Months ago we did a story about rental assistance going to richer landlords and not South or West Dallas tenants in need. $1.9M would be almost 20% of the budget alloted for rental assistance. Instead of dollars going into an upscale private entity it is worth asking if those dollars would be better spent towards many with rental assistance needs.

Additionally, this is another example of city economic development not creating trust between itself and the citizens it serves. The current Economic Development Director Courtney Pogue has been rumored to be leaving for some time now.