REPRESENTATIVE STEVE ORTEGA

DISTRICT 7 EASTRIDGE/MIDVALLEY
2 CIVIC CENTER PLAZA EL PASO, TEXAS 79901-1196 (915) 541-4108

EL PASO TRIPLE A BASEBALL FACT SHEET

Why cant the decision about Triple A Baseball be taken to the voters?

As a general rule, the City of El Paso puts quality of life investments up for a public vote. The 2012 Quality of Life Bond Election is an example. Professional sports team relocations involve extremely competitive and time sensitive transactions. In this case - and in a competitive market -Triple A officials would not wait until a November election for a decision.1 To call for an election in November on the ballpark issue would preclude Triple A Baseball from coming to El Paso. The decision seemed rushed why?

The potential of having Triple A Baseball in El Paso has been discussed for several years.2 Sports franchise attraction and negotiations often involve short windows for action. The Texas Open Meetings Act requires that notice of these types of decisions be posted for at least 72 hours before the scheduled meeting.3 In this case, notice of the issue was given at approximately 12:30 p.m. on the Thursday before the Tuesday, June 26 meeting. The citys action resulted in well over 100 hours notice far exceeding state requirements. I dont like baseball, why should I support the ballpark? Whats the total economic impact?

The main justification for the support of the ballpark is direct and indirect economic development related to Triple A Baseball in El Paso. Cities that are going to compete in the 21st Century economy must offer quality of life amenities that are attractive to businesses, entrepreneurs, and the human capital that they employ.4 Over a 25 year period, it is estimated that the direct economic impact of the project will be about $450 million.5 The indirect economic impact (restaurants, retail, residential, etc.) is estimated to be over

http://www.elpasoinc.com/news/q_and_a/article_1616432e-c3c5-11e1-afe2001a4bcf6878.html 2 http://www.elpasotimes.com/news/ci_16380230 3 https://www.oag.state.tx.us/AG_Publications/pdfs/openmeeting_hb.pdf 4 http://www.npr.org/2012/01/19/145437581/oklahoma-city-avoids-economic-pitfalls 5 http://www.elpasotexas.gov/muni_clerk/agenda/06-26-12/06261212-2.2.pdf (pg. 5)

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REPRESENTATIVE STEVE ORTEGA

DISTRICT 7 EASTRIDGE/MIDVALLEY
2 IVIC $1.2 billion overCthe CENTER PLAZA EL PASO, TEXAS 79901-1196 (915) 541-4108 same period.6 Thus, the total economic impact of Triple A in El Paso is estimated to be over $1.6 billion over 25 years.

Why downtown?

Over the last seven years, El Pasos downtown has undergone a renaissance. In that time, the local public and private sectors have invested over $250 million in downtown. Local political and business leaders realize that downtowns matter because they reflect on the health and vibrancy of a community.7 A downtown ballpark complements public and private investment in the San Jacinto Park area, the museum/arts district, and Union Plaza. Further, Plan El Paso advises that exemplary projects should be directed to the downtown where they will have economic and social benefits shared by the entire city.8 How much will it cost to construct the ballpark? How will it be financed?

A total of up to $50 million will be allocated for demolition, site preparation, and construction of the ballpark.9 There are two scenarios for financing: 1) Voters approve an increase to the hotel/motel tax of 2% that will generate approximately $35 million the $15 million balance would be paid by ballpark related revenue generators (i.e., ticket surcharges, parking revenues, concessions, rental fees, etc.) or 2) if voters do not approve an increase of hotel/motel tax, then the ballpark would be funded by general revenues (i.e., sales taxes, bridge revenues, meter revenues, etc.,) to exclude property taxes. Why the city hall site?

Use of the city hall site eliminates the need for private property acquisition and allows the project to proceed in a timely manner in the communitys downtown core.10 Additionally, the city hall site is strategically situated given downtown land uses, is accessible from I-10 and the Southern Relief Route, and is within close proximity to downtowns international bridges. Is there enough parking?

Over 4,300 structured and surface parking spaces currently exist within a five minute walking distance of the proposed site.11 Additionally, the proposed
6

The indirect economic impact estimation uses an accepted standard value added multiplier of over 3.0. Source: City of El Paso Planning and Economic Development Director Matt McElroy 7 http://www.elpasotimes.com/opinion/ci_19518810 8 Plan El Paso, Volume 1, March 6, 2012, pg. i.4 9 http://www.elpasotexas.gov/muni_clerk/agenda/06-26-12/06261212-2.2.pdf (pg. 16) 10 http://www.elpasotexas.gov/muni_clerk/agenda/06-26-12/06261212-2.1.pdf (pg. 7) 11 http://www.elpasotexas.gov/muni_clerk/agenda/06-26-12/06261212-1.pdf (pg. 31)

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REPRESENTATIVE STEVE ORTEGA

DISTRICT 7 EASTRIDGE/MIDVALLEY

2 CIVIC CENTER site is located near current PLAZA EL PASO, TEXAS 79901-1196 (915) 541-4108 and/or planned Sun Metro stops, Rapid Transit System stops, and trolley stops.

How much will a new city hall cost? Does it make economic sense to build a new city hall when we already have one?

Depending on the strategy deployed, costs for a new city hall may range anywhere from $22 million to $38 million.12 The cost would likely be paid with debt over a 25 year period. This would result in a rate of $5 - $10 a year for 25 years on a $100,000 home. The city hall currently in use needs between $12 million (basic retrofit) and $30 million (full retrofit) in maintenance and upkeep.13 Moreover, Plan El Paso states that the current city hall is in need of reconfiguration to meet urban planning principles and should ultimately be replaced.14

Why not use ASARCO property?

The ASARCO property is not owned nor directed by the City of El Paso. It is under the exclusive jurisdiction of a trustee, Project Navigator, appointed by the federal bankruptcy court. Additionally, ASARCO is currently not in an environmental condition for this type of development as environmental cleanup of the site will not be completed until 2015.15 After the site is cleaned, proposed uses must be given clearance by the TCEQ and EPA.16 Moreover, the trustee has stated he would like to sell the entire site (as opposed to a piecemeal sale.) Given the hurdles with the site, the best case scenario for redevelopment is 2017 which is not compatible with the proposed 2014 opening date.17 Why not use Cohen Stadium?

Cohen Stadium is over two decades old and is not acceptable for Triple A Baseball according to Triple A officials. It was not designed for Triple A Baseball and does not have the needed improvements and upgrades necessary to meet Triple A standards.18 Further, the Ysleta del Sur Pueblo maintains a lease on Cohen Stadium until April 2016.19
12

7/11/12 conversation with City of El Pasos Chief Financial Officer Carmen Arrieta Candelaria 13 July 9, 2012 Press Statement from City Council 14 Plan El Paso, Volume 1, March 6, 2012, pgs. 3.5 3.8 15 http://www.recastingthesmelter.com/?page_id=8 16 Ibid. 17 July 11, 2012 conversation with Project Navigator Trustee Roberto Puga. 18 July 9, 2012 Press Statement from City Council 19 http://www.elpasotimes.com/news/ci_21030167/el-paso-city-council-tigua-indians-studyoptions-future-cohen-stadium?source=most_viewed

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REPRESENTATIVE STEVE ORTEGA

DISTRICT 7 EASTRIDGE/MIDVALLEY
2 CIVIC CENTER PLAZA EL PASO, TEXAS 79901-1196 (915) 541-4108

What are the responsibilities of the proposed owners?

If the ownership group, MountainStar Sport Group, is successful in acquiring the team then they will be responsible for the following: 1) keeping Triple A Baseball in El Paso for at least 25 years; 2) allowing municipal use of the ballpark for special events; 3) pay an annual rental fee to the City of El Paso of $200,000 for 25 years (a total of $5 million); and 4) operation, maintenance, and repair of the ballpark. When will the decision be made regarding a new city hall?

If the city council votes to move forward with the building of the ballpark then the city will move into the El Paso Times Building and the San Ysidro Building. It is anticipated that the decision for the long-term city hall site will be made in the next several years. Factors that will be taken into consideration are the following: urban planning best practices, sustainable and green building considerations, and costs and economic returns.