An independent accounting firm has concluded a review of expenses reimbursed to the Las Colinas Group for work on the Las Colinas Entertainment Center project. The entertainment center is a 600,000 square foot facility that would be anchored by a 5,200 seat concert hall as well as restaurants and other amenities planned for land adjacent to the city’s new convention center.
“We received full cooperation from the Beck Group and the Las Colinas Group while conducting our review,” said Jim Smith, managing director of the Dallas CPA firm Smith, Jackson, Boyer & Bovard. “We spent a number of days in the Las Colinas Group offices and they were very open and helpful as was Beck in helping us complete our review.”
Expenses were reviewed based on whether they are reimbursable under the Texas Brimer Law (which allows cities to sell bonds for certain projects), the legal and development agreements between the Las Colinas Group and the city, and covenants for the bonds sold to finance the entertainment center.
Of the $22 million in expenditures, the accounting review determined that $132,000 should be disallowed as per the development agreement, Brimer law and bond covenants. The vast majority of the $22 million reimbursements to the Las Colinas Group and the Beck Group to date have been for architectural work, project management, legal and financial services.
“Staff is always looking at ways to improve processes,” said City Manager Tommy Gonzalez. “As we move forward, an expanded development team will ensure comprehensive integrity in all processes,” said Gonzalez.
“This voter approved project is now completely designed and construction ready,” said Mayor Herbert A. Gears. “Our City Council has been pleased with the oversight and transparency provided by the staff development team and this independent review asserts substantial excellent performance throughout this predevelopment stage.”
