3 El Paso city reps seek to cancel arena, ask voters to revoke 2012 bond

by Elida S. Perez, El Paso Matters
July 11, 2024

The El Paso City Council on Tuesday will discuss whether to allow voters to decide the fate of the long-embattled $180 million Downtown arena – the last signature bond project approved by voters in 2012 that has yet to be built.

City Reps. Chris Canales, Art Fierro and Brian Kennedy have co-authored an item that, if approved by the City Council, would allow voters in the Nov. 5 general election to decide whether the city should scrap the multipurpose performing arts and entertainment center approved by voters 12 years ago.

If council approves the item, the city attorney and interim city manager would draft language for an ordinance that includes whether the city would “defease or redeem” all or a portion of the outstanding bonds issued to fund the multipurpose center so far.

The city documents for Tuesday’s meeting do not indicate how much bond money has not been issued. City officials have previously said there is still $153 million remaining in the budget for the Downtown arena.

El Paso businessman Leonard “Tripper” Goodman, who led the El Paso Tomorrow PAC that helped get the 2012 bond passed, on Thursday told El Paso Matters that he believed revoking the bonds sets a bad precedent for future projects.

“In my opinion, the problem was that some people didn’t see it through when they could and should have,” Goodman said about elected officials and other city leaders who didn’t support the project. “It sets a bad precedent to go to the voters and say, sorry, it didn’t come through so now we’re just not going to do it.”

The City Council has been largely silent on the multipurpose center since a proposal to move the site to Union Depot and develop it as an 8,000-seat indoor/outdoor amphitheater was presented in February.

The City Council delayed, then deleted the item altogether, leaving the decision in limbo.

Earlier this month, Kennedy, Canales and Fierro, alongside Northeast city Rep. Joe Molinar, approved $31 million in incentives for a 12,500-seat amphitheater in Northeast El Paso. The deal with Venu, a private entertainment venue developer, included an agreement that the city would not develop any new city-owned entertainment venues within 60 miles of the amphitheater – with the exception of voter-approved projects such as the Downtown arena.

The multipurpose center had been embroiled in controversy since the first site was selected in 2016 in the Duranguito neighborhood in the Union Plaza district in Downtown. A lengthy legal battle ensued to protect the neighborhood until the litigation was resolved last year after the city voted to scrap the site as part of an agreement to end the lawsuits.

The initial multipurpose center called for an arena-style facility with a 15,000-seat capacity.

Read More: Key things to know about the Downtown arena project

“I think that what the voters voted on was never possible at the price they were told and I'm not willing to start pouring more money into a project that was over promised and would be under delivered,” said Kennedy, who on Thursday became a candidate for mayor in the November election. “I think that, at this point, we need to go back to the voters and say, here's what we can build with the money we have, or should we just go back to the drawing board and maybe start a new plan.”

Kennedy said the news release issued by Canales’ office had nothing to do with the timing of his bid for mayor.

Canales could not immediately be reached for comment Thursday, but in a news release from his office announcing the agenda item said voters have been waiting 12 years “for some resolution on the MPC project, and after so much time they should have their voices heard again at the ballot box.”

“The reality now, in 2024, is that there is nowhere near the amount of funding required to deliver an ‘arena,’” he states in the release. “A project of that scale would cost something in the range of $400-$500 million, not the $128 million remaining in unsold bonds.”

Fierro said the city has three options: move forward with the multipurpose center with the funds they have, not do any further work on the project and deprogram the bond funds, or to ask voters how they think the city should proceed.

He said he voted for the center in 2012 anticipating the city would build an arena to hold sporting and entertainment events.

“What I didn't know when I voted for it (in the 2012 election) was that it was already under budget, and then never in my wildest dreams – like most other El Pasoans – did I think that 12 years later we’re still sitting here talking about it,” he told El Paso Matters.

Fierro said he has received multiple phone calls from constituents who are not happy with the proposal presented in February that would make the multipurpose center an indoor/outdoor amphitheater at Union Depot.

“That's how I came to my decision about supporting this item on the agenda,” he said.

City and community leaders who were involved in developing the 2012 bond proposals said the issues with the arena lay heavily on the change in city leadership over the years.

Developing the bond proposal 12 years ago

The arena was part of the $473 million bond package split into two proposals: One included parks, recreation and amateur sports facilities such as soccer complexes and competitive pools; and a second included cultural and entertainment facilities such as libraries, museums and a multipurpose center. A third proposal asked for an increase in hotel occupancy taxes to support a Triple-A baseball stadium.

The second proposition that included the multipurpose center was approved by 72% of voters.

Goodman, who led the PAC supporting the 2012 bond issue, said the multipurpose center was part of a larger vision for Downtown El Paso that included the ballpark, a children’s museum, a cultural center and more. Without the entertainment venue, he said, Downton is missing a major piece for redevelopment that would move the city forward.

“It was supposed to be part of the entertainment footprint for Downtown El Paso,” he said. 

“Maybe it’s a political issue, I’m not sure, but the timing feels that way,” Goodman added.

Goodman said that while he agrees the money that’s left of the bond may not be enough for what was planned more than 10 years ago, city leaders since then have not made a good-faith effort to move the project forward.

Joyce Wilson, who was the city manager when the bond issue was approved by voters in 2012, said the council has a legal right to ask voters to revoke the bond. But, she added, voters should consider whether that’s the right step at this time.

“Maybe it’d be better for the community to get some new leadership that could put together a plan and see it through,” Wilson told El Paso Matters, adding that strong leaders form partnerships and have the “courage” to get things done. “If the voters want to undo it, fine, but they should really think about why the leadership wants to do this and do this now.”

El Paso Matters Editor Cindy Ramirez contributed to this story.

This is a developing story and will be updated.

This article first appeared on El Paso Matters and is republished here under a Creative Commons license.