Here's why Corpus Christi's Proposition A failed, and what comes next

Editor's note: This story has been updated to correct the spelling of the Nueces County Republican Party chairman. The chairman's name is spelled Carmen Calderone.

On the heels of voters’ overwhelming rejection of Corpus Christi’s sales tax proposition, what led to its failure – and what happens next – will likely be a discussion that unfolds over the next 12 months.

The ballot measure had proposed to reallocate revenue brought in by existing sales taxes – a 1/8-cent invested into the seawall and a 1/8-cent sales tax earmarked for the arena – with a ¼-cent sales tax that would be distributed instead for improvements within a broad portfolio of projects.

Those were to span from improvements to certain types of parks and streets to attracting new destination flights out of the airport and renovating and improving what was described as a “convention center complex.”

Various combinations of inadequate public input, little preparation, a potential hotel development and exclusion of a tax collection end date were all reasons cited by city officials and political leaders for the measure's failure.

Some have also described it as partially being a reflection of distrust, including City Councilman Jim Klein – who had raised that question prior to the vote –and Sanne A. M. Rijkhoff, assistant professor of political science at Texas A&M University-Corpus Christi.

Taxes as a subject also likely attracted attention, Rijkhoff wrote in an email to the Caller-Times.

“Many voters, not only in Nueces County or Texas, but nationally, are (somewhat) skeptical about the government’s competence, trustworthiness, and integrity, particularly when proposals involve taxes or public funds,” she wrote.

What also may have factored into the outcome was campaign strategies – partially because the campaigns against the measure were more understandable and less complex than the campaigns for it – as well as the positions against the proposition by both Republican and Democratic parties, Rijkhoff wrote.

City Councilman Gil Hernandez – along with several political leaders – had said in the past that the Democratic and Republicans’ joint positions against the proposition boded poorly for its success.

He had initially voted in favor of it going to election, but shortly after requested it be taken off the ballot, citing a slew of reasons, some of which have been cited by other councilmembers and political leaders as contributing to the proposition’s defeat.

Voters’ response to the city’s requested proposition on Tuesday was an unquestionable repudiation – amounting to about 14,694 voters out of 21,278 refusing the proposal.

“I could see it was a trainwreck…  I saw this awhile back,” Hernandez said. “I knew it was going to fail. I just didn’t know it was going to fail by (a 69%) margin.”

The hotel

A potential “planned new Headquarters Convention Hotel,” included in in the convention center complex’s description may have been the poison pill, several officials said.

If approved by voters, it would have been among the projects eligible for the sales tax revenue.

Others were renovation and expansion of the convention center itself, as well as improvements to the surrounding area – the arena, “planned new Headquarters Convention Hotel,” the Selena Auditorium and the seawall.

Voters don’t want to subsidize a hotel, said David Loeb, a member of political action committee Voters For Good Government.

The group spent at least $50,000 campaigning against Proposition A, according to campaign finance filings.

Included in the efforts dissuading voters from voting in favor of it were signs, TV and radio commercials, texting and direct mail, Loeb said.

The thought from supporters had been that by renovating and expanding the convention center and improving the surrounding area, it would have greater appeal to new and returning customers – in turn, bolstering the economy.

While city officials said the city would not build or operate a hotel – the revenue would instead go to tax incentives for a private sector enterprise to do so –  dozens of hoteliers contested it would create unfair competition with existing hospitality businesses.

The United Corpus Christi Chamber of Commerce also spent money on the campaign – about $63,000 as of the report filed eight days before the election, said Al Arreola, CEO of the organization.

“We did see this as an economic development tool to help enhance the convention center and implement quality of life improvements for the community,” he said.

It was challenging, though, educating voters on what had been two purposes for the sales tax – the area and seawall – into nearly seven items, Arreola said.

It’s difficult for voters to approve a measure that isn’t well understood, said City Councilman Roland Barrera.

“We made it overly complicated for the voter,” he said. “And we just didn’t get our message out.”

The parties

Councilmembers who responded to interview requests have generally agreed there had been problems with organization, a short timeframe to make the case for the initiative and communication with the community in general.

The lack of public input was “a big killer,” said Democratic Party Chairman Rene Saenz on Wednesday, adding that it had “looked like they were just trying to ram this through.”

Revisiting a similar sales tax repurposement should include a wider scope of stakeholders and include additional topics in those discussions, Saenz said.

“There was a component missing – there was no investment at all in the development of human capital,” he said. “How can you create economic development if you’re not going to invest in the worker and ensuring that worker can develop skills?”

One of the biggest factors in the propositions’ failure “was a lot of the unknown and how quickly it came to the citizens,” said Nueces County Republican Party Chairman Carmen Cardelone.

People aren’t necessarily against upgrading the convention center, but a more detailed plan – what will be done, how much it will cost and how long the sales tax collection would be needed to accomplish those goals –  is needed, he said.

Part of the reason for the higher-than-usual turnout in a Constitutional election was the Nueces County Republican Party becoming involved in a local issue, Cardelone said – something that he said has not historically been done.

Those efforts included texting, block walking and more than 500 phone calls, he added.

The Nueces County Republican Party needs to take a stance on certain local issues, Cardelone said – particularly in bond and propositions.

“These are the issues that affect everyone here in Corpus Christi and Nueces County every day,” he said.

Moving forward

The process worked as it should, said City Manager Peter Zanoni on Wednesday.

“We put it to a vote as the council authorized,” he said. “And the voters voted it down.”

Implementing needed fixes to the convention center will be “some of the follow-up we need to do in the coming weeks and months with the council,” he added.

There are opportunities to improve the convention center as it currently exists, but without a hotel built in the vicinity of the convention center, he doesn’t plan to recommend an expansion, Zanoni said.

It’s anticipated the council on Tuesday will discuss and vote on purchasing new chillers for the arena with funding that has already been set aside, he added.

City officials have generally said there are roughly $60 million in needed repairs and improvements at the convention center, including a new roof.

“There are plans moving forward with existing resources  to improve and repair what’s there today,” Zanoni said.

There’s opportunity to return to voters in the 2024 election to pose again the question of repurposing the existing sales taxes, which expire in 2025 and 2026 – and restoration of trust with the public may be found in holding public input sessions, several councilmembers said.

Whether such a proposition – if pursued – would take shape would take into account public input sessions, councilmembers said, which may improve trust among the community.

City Councilwoman Sylvia Campos said she was disappointed in the outcome of the election, but the biggest question will be whether “the community wants to go back to the drawing board and start all over again.”

“We certainly do still need a lot of help in our parks, in our airport – but if we’re afraid to make a move, go forward, what are we going to do with our city… if we just don’t try to help it be seen as a destination?” she said. “We say it is, but we don’t seem to put our money behind it.”

Proposition A, for the time being, will be set aside, said City Councilman Dan Suckley.

“That effort took quite a bit of heavy lifting in some areas of the city and staff and council,” he said. “So from some standpoints I’m glad that’s behind us so we can move on to many other things that are important for our city.”

More: What to know about Corpus Christi's Proposition A

This article originally appeared on Corpus Christi Caller Times: Here's why Corpus Christi's Proposition A failed and what comes next