Forensic Review On Convention Center

Paul Baharet - October 21, 2025

Forensic Review On Convention Center

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On Thursday, October 23, 2025, the Austin City Council is scheduled to consider Agenda Item 11, a proposal to authorize an additional $450 million for the Convention Center’s primary construction contract (CMAR 6100 CLMA044).

In advance of this vote, InHouse Journal conducted a review of the project’s public record.

This report is not an evaluation of whether the Convention Center should be expanded, but a procedural examination of the contract’s execution and compliance, based exclusively on City-published documents.

This review identified three significant issues:

  • Substantial non-compliance with MBE and WBE participation goals, based on the City’s own official reporting.

  • A project budget that does not align with public figures, resulting in a discrepancy between stated and authorized costs.

  • A pattern of campaign contributions from a key contractor executive that raises questions about the appearance of impartiality in oversight.

Before approving additional funds, it is appropriate for the Council and the public to understand the current status of the contract as reflected in the official record.

Compliance Performance

The central finding of this review is that the contractor’s participation performance for Minority-Owned Business Enterprise (MBE) and Women-Owned Business Enterprise (WBE) goals falls far below the targets established in the original agreement.

When the City Council approved the original $1.2 billion CMaR contract on October 19, 2023, the contract included binding goals of 10.30% MBE and 2.38% WBE, as documented in the compliance plan approved by SMBR.

However, in the official “Recommendation for Action” (RCA) for Agenda Item 11 (File #25-1334), dated October 9, 2025, City staff report:

“Current participation to date is 0.69% MBE and 0.08% WBE.”

Using the City’s own data, this reflects:

  • WBE: 0.08% achieved vs. 2.38% goal 96.6% gap

  • MBE: 0.69% achieved vs. 10.30% goal 93.3% gap

These participation levels represent a substantial shortfall relative to the contract’s requirements.

Budget Representation

The project’s publicly stated cost of $1.6 billion does not align with the cumulative authorizations documented across multiple contracts.

The RCA for Item 11 states:

“Approval of this item does not increase the overall project budget of the Expansion Project.”

However, the same document confirms:

  • The CMaR contract alone would total $1.65 billion after this amendment.

  • Approximately $208.5 million of the $450 million amendment covers Austin Energy and ATPW projects bundled into the CMaR contract.

When adding all prime contracts associated with the Convention Center redevelopment, the total authorized cost is:

  • $1.650 billion — CMaR contract (JE Dunn/Turner)

  • $65 million — Design contract (LMN/Page)

  • $30 million — Owner’s Representative contract (Project Control)

Total Authorized: $1.745 billion

This places the project approximately $145 million above the widely cited $1.6 billion figure, based on City documents.

Campaign Contributions and Oversight Context

This review also examined publicly available campaign finance records.

These show personal contributions from the Austin office leader of JE Dunn Construction, the project’s prime contractor, to elected officials directly involved in the approval of the contract and its amendments.

Documented contributions include:

To Mayor Kirk Watson $1,750.00 total Dates: Feb 2022, Sept 2022, Nov 2022, April 2024

To Council Member Ryan Alter $474.31 total Dates: June 2022, Nov 2022

Corporate Contribution via RECA PAC JE Dunn Construction $2,500.00 (Sept 2024)

These contributions cluster around key periods tied to the contract’s selection, approval, and amendment negotiations.

While campaign donations are lawful, the timing creates an appearance of alignment worth noting in the context of contract oversight.

Alignment With Prior Audit Findings

The City Auditor’s 2018 report, City Contracting Practices, identified recurring challenges in the City’s ability to:

  • effectively monitor contractor performance,

  • enforce contract terms, and

  • maintain adequate documentation.

The Auditor’s October 2025 SMBR Program Audit similarly observed gaps in documentation and monitoring of compliance with MBE/WBE requirements.

The current participation levels on the Convention Center project appear consistent with the types of systemic issues previously identified by the Auditor.

Conclusion

This review presents the following documented findings:

MBE and WBE participation are significantly below contractual expectations, based on the City’s own reporting.

The project’s authorized cumulative contract value of $1.745 billion exceeds the public figure of $1.6 billion.

Campaign contributions from a contractor executive correspond to major project milestones, raising reasonable questions about oversight independence.

These issues reflect concerns previously identified by the City Auditor in both 2018 and 2025 reports.

Given the magnitude of the proposed amendment, it may be prudent for the City Council to consider additional review before authorizing further expenditures.

A formal performance audit and a detailed explanation of compliance status could provide valuable clarity to both Council and the public.

Sources & Citations

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