The Dallas City Council on Wednesday voted against a plan to repair its aging City Hall building, setting up what may be a contentious exit from the location it has occupied for decades.
The vote came after months of debate over whether the city should stay and make repairs to its building, designed by the architect I.M. Pei. Now it appears the city will move elsewhere, which could pave the way for developers to build on the property.
The special meeting on Wednesday had prompted two City Council members to file a lawsuit this week against the city, arguing that they had not been given enough time to prepare for key votes over the fate of the building. The council members, Paula Blackmon and Adam Bazaldua, asked a Dallas County judge for a temporary restraining order to postpone the votes.
The City Council went ahead with voting on one item on the special meeting agenda that would have approved repairs to the building. After rejecting that item, the Council will meet in August to discuss plans for relocating City Hall.
“Instead of delivering the Dallas taxpayers a billion-dollar invoice for a dilapidated government office building that is impeding the growth of a large section of our urban core,” Mayor Eric Johnson said in a statement, “the City Council took an important step toward realizing my vision of a downtown teeming with life, with community, and with social and economic activity.”
More than 100 Dallas residents signed up to speak at the special meeting on Wednesday. The meeting also attracted former city leaders, including two former Dallas mayors, Tom Leppert and Ron Kirk, and Dwaine Caraway, who served as an interim mayor.
Mr. Leppert, who was mayor from 2007 to 2011, said that Wednesday was the first time he was speaking from the other “side of the horseshoe,” referring to the curved desk where the City Council sits.
“We can kick this down the road again, or we can put the people and their future ahead of walls and buildings, and establish a path forward that provides opportunities rather than obstacles,” he said. “The very land that we’re standing on can be a cornerstone to a great downtown. Choose wisely.”
Mr. Kirk, who was mayor from 1995 to 2001, said that the city had a rare opportunity to redevelop the part of downtown where the City Hall building stands.
“I hope you’ll take advantage of that and make a wise decision to go forward,” he said.
The City Council also heard from a number of residents with mixed opinions over whether the city should repair the building. Some said City Hall should be preserved. Others said that the cost to repair it would be too high and could divert funds from other important city services.
A recent report found that repairs to the building could be done over 10 years with a price tag of about $500 million. A presentation released on Tuesday by Jack Ireland, the city’s chief financial officer, found that relocating City Hall could “result in material savings based on current market exploration.”
The vote on Wednesday followed what was has been a tumultuous start to the summer for downtown Dallas.
Last week, the Dallas Mavericks, the city’s N.B.A. team, announced they were considering a property in North Dallas to build a new arena and entertainment center. A day later, the Stars, the city’s professional hockey team, announced a plan to move to Plano, a suburb north of Dallas, to build a new arena there. (The two teams currently share the American Airlines Center in the downtown Dallas area.) Neiman Marcus said last week that it planned to close its flagship store downtown this year.
Earlier this year, AT&T announced that it was relocating its headquarters from downtown Dallas to a new site in Plano.
Mayor Johnson said in a statement last week that the city was in a competition with neighboring cities for residents, businesses and attractions. He also signaled then that he was in favor of moving out of the Dallas City Hall building.
“We must fight for the city of tomorrow rather than worship decaying, outdated government buildings from bygone eras,” Mr. Johnson said.
Dallas has been mired in a monthslong debate over what to do with the City Hall building, which was dedicated in 1978. Preservationists have argued that the building should be repaired. Developers have supported the prospect of relocating City Hall, creating a chance to redevelop the south side of downtown Dallas.
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