POSTED: Friday, August 2, 2013 - 6:13pm
UPDATED: Monday, August 5, 2013 - 11:48am
EL PASO (KTSM) — The downtown's ballpark grand total cost hit 143 million; El Paso’s city council adopted a motion yesterday after the market fluctuations changed the original plans.
"The total project with interest will cost approximately 143 million dollars; the interest obviously the interest will cost 17 million more in interest that had been in the original project" city representative Emma Acosta said.
Doctor in economics Tom Fullerton explained that the situation can be very common in large projects such as the ballpark and that El Paso hasn't been the only one affected.
"City councils throughout the united states monitor interest rates whenever they will go to sell bonds but they do not control it and can't control them, see it's a competitive public finance market and bonds from El Paso, Seattle bonds from Minneapolis have to be sold in a competitive market place" Dr. Fullerton said.
El Paso residents could also be affected in the event that the amount funded by the hotel motel tax is not reached.
"If we don’t make up to 17 million every day the sales tax via the sales tax via additional hotel motel tax then that funding will have to come out of the general fund from sales tax and cost like 566 thousand dollars a year" Acosta added.
When the project was originally presented in June the interest rate for the selling of bonds was at a low point at 5 percent for the tax exempt and 5.75 for the average tax payer now it’s at 6.30 for the exempt and 7.15 for the rest Mayor Oscar Leeser says the bonds should have been sold before.
"I wasn't the biggest fan of the process and I’ve always said that with baseball but I wish they would have sold them earlier for them not to be sold I can't give you an answer except that they didn't take them to market till just recently" Leeser said.