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City agrees to build stadium

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With the backdrop of a spiraling economy and budget constraints, the City Commission agreed by majority Tuesday to build a $7.5 million stadium.

The project is planned for city property on West Alton Gloor Boulevard and will be used for minor league baseball. Brownsville will enter into a lease-management agreement with private enterprise.

The City Commission's minority said the venture with the Florida-based Alton Gloor Stadium Group L.L.C. and Brownsville Stadium Group L.L.C. was too risky of an investment and that city should have other priorities, such as streets.

"To go forward with this kind of joint venture with the private sector, where it reduces their risk and exposes ours, is more than taxpayers can take," Mayor Pat M. Ahumada Jr. said.

The majority contended that this project would create construction jobs, spark development in the area, and increase sales tax revenues.

"Brownsville is going to have something to cheer about," Commissioner Edward Camarillo said, adding that the city needs to be progressive.

Commissioners Charlie Atkinson, Leo Garza and Carlos Cisneros joined Camarillo in favor of the project. Ahumada, commissioners Anthony Troiani and Ricardo Longoria did not give their approval.

"I don't necessarily know that given budget constraints and the economy, that this is the best use of our money," Troiani said.

The lease agreement covers 46 acres and is the culmination of lengthy talks between United Sports Equities, LLC of Florida. The stadium would be the home field for the Brownsville Charros, a member of United League Baseball.

Under the agreement, which is being finalized, the city would issue $7.5 million in bonds to build the stadium. The investment group would be responsible for commercial development on city property next to the stadium, city attorney Jim Goza told the commission.

The investors would pay the city's $650,000 of bond debt per year if it equals 20 percent of net revenues, and if not, a minimum of $325,000 per year for as many as 40 years. The city also would control the stadium's use when minor league was not played.

Ahumada argued that if the venture failed, taxpayers would end up holding the bag. However, Atkinson rebutted that the risk was low.

Goza told the commission that the city's, "legal interests are well protected," but he also said that, "no deal is bomb-proof."

 

 


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