Dallas permit error cost city nearly $9 million in fees
The Brief
A building permit fee error cost the City of Dallas about $8.6 million.
This error was included in the formula for calculating permit fees for commercial remodels.
Developers will see a price increase, but if the issue isn't solved, the city will continue to lose money.
DALLAS - The City of Dallas says a building permit fee error led to a loss of nearly $9 million.
Now, Dallas City Council is working to approve a fix to get things back on track.
This error is just the latest in a string of issues involving permits with the City of Dallas over the last five years.
What we know
During Monday's Dallas City Council Economic Development Committee meeting, the city's Planning and Development Department revealed a staffing error in calculating the city's commercial remodel permit fees.
This error cost the city about $8.6 million.
According to Dallas Planning and Development, it happened after the city implemented a new permit fee structure in the spring of 2024.
There was an error included in the formula for calculating permit fees for commercial remodels that resulted in a large decrease in fees for larger projects.
To remedy the situation, the Planning and Development Department recommended going back to an older fee structure and adjusting for inflation. Plus, amending fees for expedited plan reviews and combining certain other fees.
Developers will see a price increase, but if the issue isn't solved, the city will continue to lose money.
What they're saying
Dallas Planning and Development Department assistant director, Catherine Lee, said it took immediate action after learning about the shortfall.
"Once we realized we had this issue, we did take proactive measures. We've had a hiring freeze other than hard to fill positions and inspector positions. We've deferred fleet replacement, limited staff over time and out-of-town travel and training," said Lee. "For every month that this item is delayed our department is forgoing an average of $1.1M per month."
After the presentation, the committee members moved quickly. There was no discussion, so it moved straight to a vote.
Dig deeper
Over the last five years, the City of Dallas has faced other issues surrounding permits. Including a massive backlog and purchasing a $14 million building to house the city's permit staff that needed extensive renovations.
What's next
The City Council can take action on the recommendations on April 23 and, if approved, then the new fee pricing would go into effect on July 1.
The Source
Information in this article came from a Dallas City Council Economic Development Committee Meeting.
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