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City leaders withdrew requests to increase the Downtown baseball stadium contract by $10 million on Tuesday, but several city representatives angrily criticized the plan and called for the firing of top city officials overseeing the project.
The City Council on Tuesday had been asked to consider bundling $5 million in previously approved street and sidewalk projects Downtown into the stadium construction contract, and that a $5 million contingency for unexpected costs be added to the contract with C.F. Jordan Construction/Hunt Construction Group. The joint venture companies were hired as the construction manager at-risk in January.
City Manager Joyce Wilson asked that the requests seeking the additional funding be withdrawn.
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Cindy Ramirez
She said that the streets and sidewalks projects would be done separately as originally planned and that the ballpark design and construction would have to stay within the original $50 million price tag. The council had also been asked to increase the design contract with Populous Inc. by about $725,000, bringing that cost up to about $3.82 million.
City Rep. Cortney Niland and other representatives admonished Wilson, Deputy City Manager Bill Studer and City Engineer Alan Shubert, who is in charge of the ballpark project for the city, for not communicating better with them about the proposed changes to the contract.
"I'll be damned if we don't deliver the project we promised to the community," Niland said. "And we are not going
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to do it for a penny more."
The City Council voted 5 to 3 to sell $52.8 million in bonds to finance the Triple-A baseball stadium now under construction. City Reps. Emma Acosta, Eddie Holguin and Carl Robinson voting against it.
From the approved bonds, $10 million will pay for the ballpark design and pre-construction costs and $40 million will go toward construction as originally planned. Another $1.8 million will pay the cost for the sale of the bonds and $1 million will go toward public art as is required by city ordinance for capital projects.
The sale of the bonds will be repaid with hotel occupancy taxes, stadium lease payments, ticket surcharges and parking fees.
As a matter of procedure, the City of El Paso Downtown Development Corp., made up of the mayor and council, voted 6 to 3 to sell the bonds with the mayor voting in favor of the issuance.
The corporation is a public agency created to act on behalf of the council on matters related to the ballpark -- a common practice because a corporation can sell bonds without a debt reserve fund and can borrow at lower interest rates than the city could.
During the meeting, Holguin questioned why nobody had asked MountainStar Sports Group
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whether the group would incur any of the costs beyond the original $50 million price tag.
Niland said if there are amenities the city or MountainStar feel are essential to the ballpark, then there would need to be an open dialogue between the two to come up with a solution that wouldn't require more money from the city.
"We can come to the table and negotiate, see how much they'd be willing to put in and maybe field some sponsorships or find other ways to pay for them," Niland said.
MountainStar investors Woody Hunt and Paul Foster, who were present at the start of the council meeting to receive an award, said they felt confident the baseball team would be coming to El Paso in 2014.
Foster said if the $10 million was not approved, it might only impact what the stadium would look like, not whether the team would come to El Paso.
Before the council vote, Foster told reporters that nobody had talked to him about paying or sharing the cost of any amenities beyond the $40 million construction cost. Asked if he'd consider it, Foster said only that he didn't want to get ahead of any discussions on the matter.
As part of the vote on the sale of the bonds, city Rep. Steve Ortega also asked that the council receive bi-monthly updates and real-time expense reports related to the ballpark.
Ortega said the city's mistake was in how the information was released, adding that there has been an "erosion of trust" from council toward city leaders, as well as from the public toward the city.
"We need to rebuild the trust that has been eroded," Ortega said.
The city held an unplanned media briefing with Shubert and Studer on Thursday after receiving calls from reporters inquiring about the cost increases. Acosta and Holguin attended the briefing.
Last week, Shubert said adding those projects to the ballpark construction contract made more sense because the general contractor would oversee the work for better coordination.
Wilson on Tuesday said the $5 million contingency request was made because it would be more cost effective to include that in the bond sale rather than having to issue another set of bonds in the future if they were to be needed.
Shubert said that the contingency funds may be needed for amenities such as two buildings that would house a bar-restaurant or group and party suites if the costs for the basic stadium needs go beyond the original $40 million construction estimate. He said that some trade bids have been higher than expected and he wanted to have the extra funds available if needed.
That discussion drew fire from council representatives, who questioned the construction manager at-risk method of construction they previously approved.
The City Council first agreed to build the ballpark in June, and entered into a contract with MountainStar for the lease of the ballpark in September. MountainStar purchased the Tucson Padres minor league team and will bring the team to El Paso in 2014.
Also in September, the council agreed to use the construction manager-at-risk to build the stadium. That method of building allows construction to begin as the design is finalized, which means the true cost of the project isn't known up front.
Shubert said that some of the construction bids have been higher than anticipated, but didn't yet have a final cost of the project as currently designed. About $11 million of the project has been bid out so far, he said.
The discussion Tuesday took place two days before the ballpark's official groundbreaking ceremony this Thursday, which some 500 people are expected to attend.
Cindy Ramirez may be reached at cramirez@elpasotimes.com; 546-6151.
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