City: Venue could attract more shows, events to EP

This story was originally published in the El Paso Times on Sept. 30, 2012.

One of the most contentious projects on the city's November bond referendum also carries one of the biggest price tags -- an $180 million arena dubbed a "multipurpose performing arts and entertainment center" by the city.

"The multipurpose event center will be able to host events like concerts, family shows, ice events, religious gatherings, graduations, civic events, boxing, mixed martial arts, motorsports, basketball and other sporting tournaments," Deputy City Manager Bill Studer said.

He added that the specific location, size, amenities and parking plans of the arena would be determined in the planning and design phase if the voters approve the venue in November as part of the $473 million bond referendum.

If approved, the arena would complement the Judson Williams Convention Center, could replace the aging Abraham Chavez Theatre and end years of failed attempts to bring an arena to the city.

It would also be part of the city's larger plan to create a Sports Entertainment District, which would include the recently approved $50 million Triple-A ballpark.

"It's a really imperative component to the future of our city," said city Rep. Cortney Niland, whose district includes Downtown. "The arena fills a huge venue need that we have to hold large

concerts, boxing matches, all sorts of things that we can't do right now. We need to be able to compete on a national level for these events."

Niland points to the Julio César Chávez Jr. championship boxing match at Sun Bowl Stadium in June, which was canceled by the University of Texas System chancellor over security concerns then reinstated, as a case in point. The fight's cancellation, and the stipulation that alcohol not be sold at the event when reinstated, left the city scrambling to find an alternate site in this region and none seemed adequate to host the championship fight.

"The event itself was put in jeopardy because we didn't have a facility, and then we didn't have control over the (Sun Bowl) to decide how the event should be run," Niland said. "We don't want to ever be in that position again."

While many support the proposed arena, others believe that it's not needed and that it could doom the passage of the bond proposition.

"I'm not convinced we need a bigger arena or entertainment center," said homeowner Renee De Leon, 59, who also opposes the ballpark being built where City Hall and the Insights El Paso

Science Center now stand. "Parks and senior and recreation centers I'm all for, but I don't know about the others."

Aaron Velasco, president of the Insights board of directors, said he's worried about having the arena on the same proposition as the children's museum because it could doom the museum.

The bond initiative, which is for 15 years, includes three propositions:

• •$245 million for parks, soccer and sports fields, open spaces, recreation and senior centers, aquatic centers, and zoo improvements and expansions;
• •$228.3 million for a new children's museum, museum improvements, a cultural heritage center, an interactive digital wall, library expansions and improvements, and the arena;
• •An increase to the hotel occupancy tax as the funding source for the minor league baseball stadium project.

The City Council recently approved increasing the homestead exemption for homeowners who are older than 65 or disabled from $30,000 to $40,000 on qualified properties.

Luis Talavera and his wife, Angelica, believe every bond proposition is important. They have started a grassroots effort to promote the referendum among the area's young voters.

"El Paso is hungry for progress," said Luis Talavera, who oversees the "Bring it, El Paso" social media campaign. He added that the arena is an important component of the city's future growth.

"It's not just about baseball, or parks or museums. It's about everything working together to move our city forward."

Venues, venues, venues

Area event coordinators agree that a new venue could initially draw events away from existing ones, but said that the overall impact could translate into more options for promoters who would then bring more shows to El Paso.

"Certainly there's a lot of excitement that surrounds a new venue," said Bryan Crowe, assistant general manager of the El Paso Convention and Visitors Bureau. The bureau focuses on facilities management, tourism and conventions for the city.

"The arena conceptually will be larger and more flexible than anything out in the market now," Crowe said. The arena would be used primarily for arts, sports, concerts and other entertainment.

The Judson F. Williams Convention Center has about 80,000 square feet of exhibit space and about 35,000 square feet of meeting space, and is used primarily for conventions, meetings and banquets. The convention center was built in the early 1970s, and in 2002 received a $20 million upgrade and expansion.

In May, the City Council approved some $2.3 million in upgrades for the convention center, the visitor's center and the Plaza Theatre.

Included in that funding was $175,000 in upgrades to the 2,500-seat Abraham Chavez Theatre, including fixing the elevators, roof and lighting system.

The theater, which opened in 1974, got a new $250,000 roof in 1996.

City officials said the repairs and upgrades to the Chavez theater were necessary to make sure it is safe and functional for several years to come -- even if it's eventually demolished to make way for the new arena.

Studer said that there's no timeline for the arena if voters approve the bond in November, but that a bond oversight committee will help the city prioritize projects.

Stalled plans, failed attempts

Now the 19th-largest city in the nation and the fourth in the state, El Paso has had a history of stalled plans and failed attempts at building an arena and revitalizing Downtown.

The city considered making an arena part of the 2000 quality-of-life bond bond election, but it was removed as one of the projects before going to voters.

In 2002, voters turned down the county's bond effort to build one at Ascarate Park. Several private business groups have tried to bring an arena to the city, including one near Bassett Place, but nothing materialized.

In August 2011, the Downtown Redevelopment Task Force, a subcommitte of the Paso del Norte Group, approached county commissioners, asking that some of its hotel tax revenues be used to fund a $123 million, 17,000-seat arena.

The group is merging with the El Paso Regional Economic Development Corp., or REDCo, in hopes of strengthening economic development efforts in the region, including attracting and expanding companies in El Paso.

Last year, the group was looking to fund the arena from city, county and private sources, including hotel, restaurant and car rental taxes, as well as naming rights and advertising revenue.

County commissioners voted instead to extend by three years its contract with the El Paso Sports Commission, which gets up to 83 percent of the county's hotel tax dollars. The contract expires in 2021.

County Judge Veronica Escobar has criticized the controversial contract as "fundamentally flawed."

She has expressed her support for Downtown revitalization, including using county hotel tax revenues to help finance an arena.

Whether that would shut down the Coliseum is unclear.

Built in 1939 for $9.5 million, the Coliseum opened its doors in 1942 and remained the area's main entertainment venue until the 1970s, when the 12,000-seat Don Haskins Center was built.

The 9,000-seat Cohen Stadium opened in the 1990s.

"Any time you have another facility, there's an effect," said Bryan Kennedy, president and chief executive officer of the sports commission. "But it's not always an effect that shuts down the other guys. It just forces those other venues to be more creative, more competitive."

Kennedy said it's really up to promoters to match their event with the right venue. In the case of the Coliseum, he said, it often attracts smaller community-oriented events that he said will continue to choose it.

He said he couldn't speculate what might happen to the Coliseum if a new arena is built Downtown.

"I think there's room for numerous venues that could each meet different needs."

Cindy Ramirez may be reached at 546-6151.

City of El Paso bond propositions

•PROPOSITION: PARK, RECREATION, OPEN SPACE AND ZOO IMPROVEMENTS

"The issuance of $245,000,000 general obligation bonds for park, recreation, open space and zoo improvements, including soccer/sports fields, aquatic centers, and new and improved recreation, senior and community centers."

•PROPOSITION: MUSEUM, CULTURAL, PERFORMING ARTS, AND LIBRARY FACILITIES

"The issuance of $228,250,000 general obligation bonds for museum, cultural, multipurpose performing arts and entertainment and library facility improvements, including new children's museum, cultural heritage center and interactive digital wall."

•PROPOSITION: VENUE PROJECT AND HOTEL OCCUPANCY TAX

"Authorizing the City of El Paso, Texas, to designate the minor league baseball stadium project as a sports and community venue project within the city in accordance with applicable law and to impose a tax on the occupancy of a room in a hotel located within the city, at the maximum rate of two percent (2%) of the price paid for such room, for the purpose of financing such venue project."