This past Monday, the El Paso Commissioners Court voted 4-1 (with Iliana Holguin dissenting) to contribute $1 million toward the design cost for building a five-block deck plaza over Interstate 10.
Betsy Keller stated the money will come from the Economic Impact Fund or Capital Improvement Fund, both of which are severely depleted in the FY 2025 budget.
Incredibly, the Commissioners Court also voted to be the owner of the project, which means that if the project exceeds its $207 million projected budget, the taxpayers will be on the hook for the cost overrun.
We are being told that the County’s ownership of the project is “preliminary” but the fact that County Judge Samaniego already drafted a letter affirming the County’s ownership is all we need to know.
As expected, Commissioner Iliana Holguin was the only one to push back against the $1 million expenditure.
The Downtown Deck Plaza Foundation, a subsidiary of the Paso del Norte Community Foundation, produced the $207 million figure after commissioning what CEO Tracy Yellen called a “feasibility study to assess the feasibility.” They paid for the study with a $900,000 grant from the US Department of Transportation, which they matched with $400,000.
But if you believe that constructing a five-block concrete slab over I-10 between Santa Fe and Kansas will cost only $207 million, you need to have your head examined!
We predict that the project will cost at least double, considering that the Ballpark and Children’s Museum cost the taxpayers more than double and the proposed 15,000-seat downtown arena would have cost $300 million more than projected.
We spoke to Ted Houghton, who insists that the project can be built for $207 million and that ultimately the Downtown Deck Plaza Foundation will be the owner, but we respectfully disagree.
The powers that be have a long history of grossly underestimating the cost of projects they support.
The bottom line is that there will be no federal or state grants to finance the deck plaza unless the City and/or County takes ownership and offers its revenue and bonding capacity as collateral.
The three-block Klyde Warren deck plaza in Dallas costs $5 million annually to maintain and operate, and the proposed 5-block deck plaza in our downtown will cost at least that much, and there is no one stepping up to the plate to assume that responsibility. The Foundation can generate only a fraction of that sum, so the City and/or County would have to step in to cover the difference.
As things stand, the Metropolitan Planning Organization (MPO) is applying for a $5 million federal Reconnecting Communities Grant, covering half the design cost, and contributing $3 million from its own budget. With the County’s $1 million, that leaves them $1 million short.
We have good information that the City has been approached for $750,000 and that some other entity (we don’t know who or what) will pick up the final $250,000.
The deadline for the MPO to submit the grant is September 30 so expect a vigorous debate in City Council very soon.
We don’t think the City should commit $750,000 (possibly from TIRZ 5 funds) for the project unless they understand exactly how much the project will cost, who will pay for it, and who will be responsible for maintenance and operations.
WHAT WILL THE DEVELOPERS GET OUT OF THIS?
Obviously, our local developers would not be pushing so hard for the deck plaza just for a concrete slab with some trees and grass growing on top. The backup to the County agenda item 9 includes a proposed plan, which shows several lots slated for “Future Development” plus a large “Metrosport Fieldhouse & Pavilion.”
The latter is described on the plan as “a dynamic communal urban fieldhouse making it an inviting place for sports, events, and gatherings in the heart of the city.”
Hmm, that smells like a soccer stadium for the Locomotives to us…
We have no opposition to the construction of a deck plaza over Interstate 10 and, in fact, we feel it would be an attractive amenity. However, we oppose committing public bond funds or general funds, from any of our taxing entities.
We feel that the private sector should cover the construction cost not funded by the US Government and state of Texas, and that the Downtown Deck Plaza Foundation should commit to covering all maintenance and operations costs.