Kevin Spath, Director (interim) – Office of Economic Development, City of Dallas

In an interview with Invest:, Kevin Spath, interim director of the Office of Economic Development for the city of Dallas, discussed the city’s appeal to businesses, emphasizing its relative affordability and vibrant, diverse neighborhoods. He highlighted significant achievements, including securing Goldman Sachs’ corporate hub and the Pegasus Park biotech development.

What makes Dallas a unique and attractive city for businesses to locate or relocate?

Dallas stands out for its diversity, which sets us apart from other cities. We’re a collection of distinct neighborhoods with rich history and culture that suburban areas often lack or are trying to replicate. This authenticity is a key selling point for us. Additionally, Dallas remains competitive in terms of affordability, especially compared to the West and East Coasts. For CEOs or C-suite executives, particularly from California, Dallas offers greater buying power, which is why we see many relocations to our area.

What are some of the significant economic development achievements in Dallas over the past year?

The Goldman Sachs project is a major milestone, with their commitment to creating a corporate hub in Uptown, which is a significant real estate development led by Hillwood and Hunt Realty. Pegasus Park is another critical achievement; the City Council recently approved an incentive package for its next phase, Bridge Labs, which provides space for companies graduating from the incubation stage in BioLabs to stay in Dallas and continue growing into established companies without leaving the city. Additionally, Verily’s move to Cypress Waters, a 1,000-acre master-planned development by Billingsley Company, reflects our strategy to facilitate the creation of attractive urban places within Dallas that rival those in the suburbs. We also continue to focus on the downtown area, addressing office vacancies, and converting older buildings into housing as downtown shifts from a work environment to a vibrant neighborhood. Lastly, significant efforts are being made to attract new investment in the southern sector of the city, an area historically underserved and disinvested, as part of our broader economic development strategy and policy.

Which sectors do you see as having the most potential for future growth in the region?

Biotech/life sciences is a major growth area for us. We’re seeing this with Verily at Cypress Waters and the incredible energy and growing ecosystem at Pegasus Park as well as in the Medical District. Universal DX, an international cancer diagnostics group based in Spain, recently moved into the largest lab space in Bridge Labs at Pegasus Park. Another example, though less publicized, is Koya Medical, a California-based medical manufacturing company that recently committed to relocating here, bringing 150-200 jobs. This is further evidence of the biotech/life sciences ecosystem gaining tremendous momentum in Dallas, and I believe this sector will be a significant focus for the next five years.

How are you ensuring the workforce remains competitive in the region? 

The city has several workforce development initiatives, primarily through partnerships with Dallas College and Dallas ISD, aimed at preparing students and residents for local jobs. We also collaborate with the state on workforce incentives, offering upskilling and customized training based on employer needs. Additionally, the city can provide grants for job creation, with a requirement that all incentivized jobs pay a living wage, which is currently $22.06 in Dallas. We often formalize these partnerships with educational institutions as part of our incentive deals to ensure training programs are in place.

What initiatives does your office have in place to support entrepreneurship, small businesses, and minority-owned businesses?

This is a complex area. The City of Dallas dissolved its Small Business Center a few months ago, redistributing its functions to other departments, including the Office of Economic Development. This move is partly about budget efficiency and partly about streamlining services. City Council has recently approved revisions to our programs and policies to serve the specialized needs of smaller business development projects and smaller real estate development projects to ensure they have the tools and partnerships they need to be successful. Additionally, our incentive policies already include requirements for minority hiring, local hiring, and minority contracting, ensuring community benefits are integral to any economic development incentive deal we make.

How does the economic development policy address inequalities in underserved areas, and how do you measure success?

The economic development policy approved by the City Council two years ago focuses on underserved areas, especially in the southern sector, by making it easier for small businesses and minority developers to access city incentives. Over the last 15 years, we’ve seen some progress, with the southern sector’s tax base increasing by 100% to around 20%, but we still have a long way to go. The policy prioritizes our efforts in these target areas, and we’ve introduced new tools like pre-development assistance and streamlined approvals to support these efforts. Although our dashboard tracking is still being updated, we’re also working on implementing Salesforce to better track and measure our progress. This is part of a broader city-wide effort to address inequalities and ensure that economic development benefits all areas of Dallas.

What are the main challenges your team is addressing and the successes you’ve had?

We’re focusing on challenges like housing affordability, childcare, infrastructure deserts, and food/grocery deserts. Over the past three years, we’ve successfully attracted investments and projects that directly address these issues. We’ve secured approval of 11 deals to deliver almost 3,000 housing units, with 45% being affordable. We’ve also facilitated a childcare facility at the RedBird mall area redevelopment project and utilized our New Markets Tax Credit program to fund various community needs. One of our most ground-breaking policy initiatives is the creation of an infrastructure investment fund expected to generate more than $200 million over the next decade for areas lacking adequate infrastructure. Additionally, we’ve secured approval of 5 deals to bring grocery stores to underserved neighborhoods, addressing problems at the neighborhood level through targeted programs and incentives.

What’s your outlook for the city over the next two to three years, and what are your top priorities?

The outlook is strong, with plenty of opportunities to make a significant impact in areas that need it most. A few key projects on the horizon include the area around the Dallas Zoo, which will soon benefit from a deck park over the interstate, reconnecting neighborhoods that were divided decades ago. This project could have a transformative effect, much like Klyde Warren Park did for the area between Uptown and downtown. Another major focus is Hensley Field, a former Naval Air Station with over 700 acres ready for redevelopment. The approved master plan envisions it as a new neighborhood within Dallas, featuring mixed-use development with housing, commercial spaces, and amenities. This is a long-term project for the city, but it has the potential to become a special place over the next 20 to 30 years. Lastly, the Convention Center in the southern part of downtown is being completely demolished and rebuilt in a new design, configuration, and footprint, which will free up 25 acres of city-owned land for new development. These are legacy projects that will shape Dallas for decades to come, and they’re among our top priorities moving forward.