baseball park

MountainStar Sports Group offers to commit additional $12.1 million toward construction of El Paso’s Downtown Ballpark

On May 28, 2013, El Paso City Council directed City staff to limit the City’s financial commitments required to construct the Downtown Ballpark. Since receiving council’s direction, City staff has met with representatives of MountainStar Sports Group, LLC – the local ownership group bringing Triple-A Baseball to El Paso – to discuss the status of the project and changes needed to bring the budget in line with Council’s directive.

As a result of these discussions, MountainStar is prepared to commit $12.1 million in additional revenues to fund the construction of El Paso’s new Downtown Ballpark. This allows the city to construct the state-of-the-art facility, including all envisioned amenities, without burdening El Paso property taxpayers or substantially increasing the City’s direct contribution beyond the original commitment.  The additional revenues would be generated by the following:

o   Doubling MountainStar’s annual lease payment to the City of El Paso  from $200,000 to $400,000 a year.
o   Extending the term of MountainStar’s lease from 25 to 30 years.
o   Extending the term of MountainStar’s non-relocation agreement from 25 to 30 years.

In order to formalize this commitment, Mayor John Cook will ask City Council to consider approval of the following items at the June 18, 2013, City Council Meeting:

Amending the Bond Authorization Parameters Resolution: If City Council approves, the City of El Paso Downtown Development Corporation would be authorized to increase its borrowing capacity from $52.8 million to $60.8 million. This would allow construction of the ballpark as presently designed and envisioned. Some of the project cost would be funded through revenue generated by favorable interest rates on the bond market. Sources of funding to repay those bonds include the following:
o   $48.7 million would be repaid through Hotel Occupancy (HOT) Tax Revenues, as approved by voters in November 2012.
o   $12.1 million would be repaid with MountainStar’s additional funding commitment.
o   $0 would be repaid by El Paso property taxpayers.

§  Amending the Lease Agreement to extend the term and non-relocation clause: Over the 30-year-term of the lease, these provisions would generate the additional $12.1 million from the following:
o   Additional Rent due to annual increase: $7,715,610.
o   Additional Rent due to 5-year lease extension: $1,610,510.
o   Parking: $1,057,377.
o   Ticket Surcharges: $1,742,374.

Amending the Development Agreement: This amends the development agreement to be more precisely aligned with the final construction plans and documents.
Amending the Construction-Manager-at-Risk contract: This allows the city to align the construction budget with MountainStar’s increased financial commitment.
Amending the Design contract: This allows for the increased level of effort of the designers to align with MountainStar’s increased financial commitment.

Quality of Life issues: To pass or not to pass

By Joe Olvera ©, 2012

ANALYSIS
“Take me out to the ballgame, take me out with the crowd, buy me some peanuts and cracker jacks, I don’t care if I never get back…” Yep, you guessed it, the Ballpark Stadium and purchase of the San Diego Padres farm team – a Triple A – professional squad will soon make its debut in El Paso after El Paso Mayor John Cook decided to not veto the contentious issue and allow the city to knock down city hall and relocate to disparate parts. What parts? Parts is parts. So, are you ready for some baseball? Well, some are, but, many are not. The Save the Diablos group, headed by Ray Rojas, Stephanie Townsend Allala, and others, got their wish in that their Diablos will be allowed to remain in El Paso and will be allowed to compete for the publics’ heart against the El Paso Padres. But, they didn’t get their wish to save City Hall. Oh, well, can’t win them all.

But, wait, there’s more. An even more contentious issue is whether El Paso voters, many of whom have been angered because of the passage of the new baseball stadium along with tearing down City Hall, will have their say come November. The Quality of Life Bond Issue, being promoted by City Hall means a higher tax rate for home owners, but, not that high say supporters – a mere $40 more for a $100,000 house by the year 2023. Still a long way off, you say? Well, time passes fast, especially when you’re having fun. But, in all fairness, El Paso does need to improve its image, it needs to provide amenities for its citizens. The old refrain that there’s nothing to do in El Paso, rings only too true. Oh, sure, we have our Carlsbad Caverns, our White Sands, our Cloudcroft/Ruidoso spots where El Pasoans can go for a weekend, or a special event. But, those are too far from the madding crowd.

Even visitors to El Paso say that there’s nothing to do here. Once upon a time they could go to Juarez, to see bullfights, to see and hear famous singers at La Fiesta Restaurant, or to get a quickie divorce. But, even then, there was little to do in The Sun City – famous for its great weather. But, did or does the city have an Olympic-sized swimming pool? No! Did or does the city have enough soccer fields to satisfy youngsters and oldsters who clamor for more of the same? No! Does the city have a world-class children’s museum, or a state-of the arts and cultural center? No! So, what do visitors and, especially, citizens have to keep them in El Paso? Absolutely nothing. Yet, they stay.

Wait, the city could do something for visitors. For example, a shuttle service could be provided for out-of-towners to visit those sites already mentioned, sites and locations that are conveniently located in the state of New Mexico. Those visitors could stay at our excellent hotels, they could eat at our excellent restaurants, and they could see some of the sights that the city does provide. Not enough, you say? Then, how about hotels and restaurants getting together and paying for that shuttle service. In the evenings, bring them back to El Paso. Since those sites mentioned don’t have airports, this might be the next best thing. It could work.

But, El Paso citizens say, “what about  us?” It’s no secret to El Pasoans, that they can visit those sites on special occasions, but, what’s here – in El Paso – for them? No matter how hard the city works to promote itself, denizens who live here are not forming part of the equation. But, much work needs to be done. Will voters approve the bond issue? Will they vote to provide amenities for those who live here, those who live here and who love this city? It will be up to the voters. The controversy over building the new stadium and of having an almost professional baseball team in the city is not because the naysayers didn’t want the ballpark, rather, it was because of the way it was shoved down their throats. They wanted to have a say in it, they wanted to show their support for it, they wanted to vote for it. But, guess what –maybe they weren’t allowed to vote on the new stadium or voting to tear down city hall, but, come November, they will be allowed to vote on the so-called Quality of Life Bond Issue. Which way will voters go? Let’s wait for November, because, only time will tell. Our take is that El Pasoans should vote for the $473 million bond issue. That’s the only way we’ll ever get anything done. Let’s do it for us. Case closed!