Millions of dollars planned for fixes, improvements to American Bank Center

Updated 9 a.m. Friday: Legislation that would allow the city of Corpus Christi to create a project financing zone passed the Texas Senate late Wednesday and is scheduled for a vote in the House late Friday. House Bill 5012, if ultimately approved by the House and signed by Gov. Greg Abbott, would allow sales tax currently collected by the state to be reinvested in improvements to the convention center.

It will take millions of dollars to bring some of Corpus Christi’s highest-profile venues up to standard — and millions more to make the taxpayer-supported convention center and arena appealing to residents and would-be visitors.

The American Bank Center — comprising the convention center, arena and Selena Auditorium — has in its decades seen minimal upkeep, according to city officials, reaching the point that repairing or replacing basics such as climate control equipment in the arena has become urgent.

The price tag to address the most pressing of the repairs to the arena and auditorium: about $6.2 million, with work to include replacing or repairing two chiller units and a dehumidification system, building envelope leaks as well as the stage lift system, according to city records.

In total, officials on Tuesday gave the green light to expend about $8.4 million in fixes and improvements to the American Bank Center, using a combination of $6.5 million in voter-approved sales tax revenue, and about $1.2 million from area hotel-motel occupancy taxes.

Work is expected to include upgrades to the exterior of the convention center — such as upgrading its irrigation system and restoring landscaping — as well as constructing new outdoor seating at the auditorium.

The convention center and Selena Auditorium are nearing 50 years old, and the arena is close to 20. City officials have described the state of the facilities as a product of a long-term lack of consistent maintenance.

The $8.4 million allocation was authorized by the City Council on Tuesday with little discussion. City Councilman Mike Pusley noted “that we’ve all been over there and seen this.”

He’s previously described the American Bank Center as “one of the most important physical assets that the city owns.”

“It hasn't been well maintained; it hasn't been well managed,” Pusley told the Caller-Times in an earlier interview. “We're trying to change that — and hopefully in the future that will continue.”

Those changes have included the hiring of a new management group, OVG 360, as well as recently putting into place staffing charged with facility management, he added.

The city is in the process of hiring a second consultant who will be able to help with recommending phasing of improvements, City Manager Peter Zanoni said.

New funding in question

Legislation city officials believe to be key in bolstering convention center investments and attracting more functions to Corpus Christi has remained in flux at the Texas Legislature.

House Bill 5012, if approved, would allow for creation of a project financing zone — an area with defined boundaries where the hotel-motel occupancy taxes currently collected by the state would essentially go instead to the city to reinvest in qualified projects.

In Corpus Christi, several city officials have said the revenue — estimated at about $192 million over 30 years — would be dedicated to renovating or expanding the convention center.

Having that opportunity is integral to boosting economic development and enticing organizations to bring their conventions to the city, said Mayor Paulette Guajardo.

“It’s above important. … That piece of legislation is critical to that entire vision of that entire area,” she said. “Obviously — most especially — the convention center. But it isn’t just about the infrastructure there; it’s about the economic impact to the city of Corpus Christi.”

The bill that would enable a project financing zone has been on the Senate’s calendar since Monday.

Its status was still shown as being in the Senate as of early Wednesday, according to the state’s online legislative database.

The deadline the proposed bill must clear the Senate is midnight Wednesday, barring suspension of its rules, city intergovernmental affairs representative Wendy Herman told the council Tuesday.

If voted out of the Senate, the amended bill would still need to return to the House and, if approved there, be sent to the desk of Gov. Greg Abbott.

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This article originally appeared on Corpus Christi Caller Times: Millions of dollars set to improve American Bank Center arena