El Paso inks deal, caps ballpark cost at $64 million
POSTED: Tuesday, October 15, 2013 - 4:39pm
UPDATED: Tuesday, October 15, 2013 - 9:23pm
El Paso, TX (KTSM) — A great deal for the City of El Paso -- that's what one city rep is calling a motion approved by City council Tuesday that accepts a supplemental agreement for the Triple-A baseball stadium.
Tuesday’s deal also outlined the letter of credit MountainStar Sports Group secured to show the city that they will indeed pay for anything more than $60 million.
87-percent of contractors work on the new Triple-A baseball stadium is funded by the city of El Paso.
"They've offered to put millions into a ballpark that the city is going to own. The city won't pay for any of it, won't pay for any of the financing, the interest rates, or anything of that,” City Rep., Dr. Michiel Noe of District 5 told us. The rest will come from MountainStar Sports Group. "I'm more comfortable with it now than I was before."
Which eases city council members -- the city will not pay more than $64 million.
"That includes the construction, the design, the property issues the utilities, everything,” Alan Shubert, the Project Engineer for the Ballpark said.
MountainStar Sports Group also produced a letter of credit for $8 million that will fund construction.
"But we will still retain ownership of the ballpark. So, basically we just got about another $8, $9 million worth of ballpark for free,” Noe said.
The multi-million dollar budget only takes construction into account. "There are some things that have yet to be priced. Like the street work, for instance, just came off the drawing board,” Shubert explained. As well as furniture and other equipment once the stadium is built. "Yes it could absolutely increase and could absolutely will increase. To what level, we're not sure."
But city officials aren't worried because the money to pay for the extra costs, "We've got a really good budget set now and anything, any increases, costs overruns now go to MountainStar." Won't come out of the city's pocket.
The city also approved a motion to use $400,000 of the budget for construction testing and inspection services.