The Mexican consulate in Dallas (that's in Texas, in the United States) needs more office space to avoid long lines. And, they want it free.

Moreover, the mayor of Dallas did not tell them to go get stuffed, she had this to say: "We may not have any space. But we'll take a look at it."

Not only that, Mayor Laura Miller has two locations in mind, both public libraries.

Wait, there's more! The Dallas Morning News report by Dave Levinthal has this to say:

Every day, 800 people visit the consulate, many of them Mexican immigrants lining up outside the building near Love Field before dawn to obtain a passport or a document issued to expatriate cititzens known as the matricula consular.

Dave Levinthal is also the author of this earlier smear piece. The ads mentioned in that article are sponsored by a group which counts the well-known FAIR among its membership; they are not "anti-immigration" as stated in that article, and the other claims are lies or gross distortions. Unfortunately, the two candidates involved may join together to keep the ad off the air. You can read the script of the ad here.

Even without seeing a video of the ad I think I'm safe in assuming that calling it "racist" is simply another smear.