By Louis Zylka
The 830 Times
City council members on Tuesday declined negotiations for a proposed contract to study the need for a new convention center.
City council members discussed a resolution to authorize and direct the interim city manager to execute an engagement letter in the amount of $59,500 for a feasibility study and market analysis for a new convention center.
Based on the agenda packet provided to the council, the study and analysis was to have been conducted by a company called Conventions, Sports & Leisure International (CSL), and the study would have taken an estimated 12 weeks to complete.
Councilman J.P. Sanchez made a motion to decline the resolution, and Councilwoman Carmen Gutierrez gave the second.
Sanchez explained why he was against spending funds on a feasibility study and market analysis.
“We are already in a financial crunch, and I don’t think we are going to be able to come up with $20 million to build a new convention center. I think the spending of $59,000 to $60,000 to have a feasibility study is not appropriate,” Sanchez said.
Gutierrez also elaborated on her decision to turn down the resolution, explaining she believes the city does not need a new convention center.
“I followed up on this particular item. I understand the plan was to have a feasibility study shelf-ready; ready to go for another year for future funding. The only shelf-ready plan I would like to see is for a four-lane highway on U.S. 90.
“This $59,500 could be used to fix the existing civic center because it qualifies under the state of Texas Hotel Tax Occupancy (HOT) tax ordinance for the improving of an existing facility . . . But I second (Sanchez’s) motion to decline,” Gutierrez said.
Mayor Pro-tem Jim DeReus said he was thinking the same thoughts as Sanchez and Gutierrez.
“I don’t think it really makes sense to have it on the shelf, because even if we do (the convention center) two years from now, we really need to do it with a feasibility study (at that time).
“Because we all know, two years ago or four years ago, the economy was different than it is right now. Even from that standpoint, it just doesn’t make sense to have it on the shelf. We’re not just going to pull it out and dust it off,” DeReus said.
Mayor Al Arreola asked for any other questions from the council. Interim City Manager Manuel Chavez gave his comments, and he said the plans were to have the studies completed and then utilize HOT funds for the construction of the new convention center.
“I want to make sure everyone is aware that what we currently have is a civic center. The civic center is made for ballroom-style events.
“This particular convention center, utilizing HOT funds, would be used to attract conferences, expos, conventions . . . Currently, what you don’t have are the amenities to have break-out rooms or to be able to bring in a large expo. That’s what the plan was.
“The plan was also to utilize HOT funds for possible construction, and the way that would work: if you would go out and borrow whatever it requires to construct something, then the bond payments would come out of the HOT funds.
“We can use the HOT funds for something else, but that was the purpose for this particular project. If that is something the council feels we don’t need to explore, then yes; I just want to make everyone aware that these funds would be utilized from HOT funds and not from general funds,” Chavez said.
Before moving to the next topic, Arreola said he agreed with the other council members on declining the resolution.
“There will be a need (for a new convention center), but right now we have to tighten our belts and move forward,” Arreola said.
The council then voted unanimously to approve Sanchez’s motion.
