The Downtown Plan is embroiled in controversy, as proponents try to explain the benefits to Downtown business owners and South Side residents, and opponents question the secrecy under which the plan was developed and whether it represents the wishes of residents. Meanwhile, public opinion is in the balance, with the majority of El Pasoans apparently yet to make up their minds about the plan.
In an effort to sort out some of the many threads that make up the context of the discussion, Newspaper Tree went back to one of the sources of the plan -- the actions taken by City Council Dec. 14, 2004, and Feb. 15, 2005. During the first, the council approved a resolution authorizing City Manager Joyce Wilson to negotiate the contract with the Paso del Norte Group to develop the plan. At the second meeting, the council voted unanimously to approve the contract. [dec 14 transcript] [feb 15 transcript]
The exchanges focus on the economic benefits of such a plan -- as does the City Council resolution that authorized it. The Feb. 15, 2005 resolution states the benefit of enhanced economic activity Downtown would be an increased tax base, with a concurrent lessening of the burden on the rest of the city. [resolution]
In both meetings, Mayor Joe Wardy and city Rep. Anthony Cobos emerged as the main proponents of the contract, with then-city Rep. and now-Mayor John Cook raising questions about whether the plan would be one of "implementation" or whether it would simply be a set of suggestions that would "sit on a shelf."
Feb. 15, 2005, Cook opened the 45-minute discussion by asking "what’s going to be different about this master plan from all the other master plans we have for renovating Downtown?"
Representing the Paso del Norte Group were leaders Myrna Deckert, Bill Sanders, and Salvador Balcorta.
Sanders responded to Cook's question: "About October of 2003 I had just sold my company and was asked by a group if I might consider coming to El Paso and redeveloping Downtown. Basically there were two reasons why I felt that a redevelopment of Downtown at that time would be, frankly, a waste of time. One was that there, really, I felt you had to put together a dynamic plan for the region in order to have a successful downtown, and I think the latter is in the process of taking place.
"The other reason frankly is that all the information I read and the studies that I read were about as soft as any study I’ve ever seen and I would tell you not very helpful in terms of realistically coming up with a plan to do a major renovation of the area. So bottom line, very soft, and if you gave that to a party to redevelop Downtown they’d have to start all over, and that’s basically what we’re doing."
When Cook asked how the plan would be implemented, Sanders answered.
"I will tell you what we hope to do if we can come up with a plan that has economic merit is to form first a private real estate investment trust (REIT) which will be almost identical to what was done in Washington D.C. 30 years ago when a group of concerned citizens got together and formed what I would call an implementation vehicle," Sanders said. "So unless we put together a vehicle which will take a plan and implement it, we’re all wasting our time."
Cook asked how much it would take to fund a REIT, and where the money would come from.
"We have to have a minimum of 100, probably 200 shareholders, what we have told all of you is no one will own more than 2 percent of the voting stock of it and basically what we will do and we’re in the early stages of doing this is identify some assets in the Downtown area that we like that are economically viable today that will be the first acquisitions of this REIT which will give us basically an economic platform that we will add to the capitalization of. I’m not ready to tell you yet until we see the first phase of the plan complete what the initial capitalization would be," Sanders said.
"I think El Paso is one of the biggest sleepers I have seen in my entire business career. I think it’s a huge opportunity; I think if we do it right we can attract the capital and have something that anyone that would ultimately like to own part of it can do that and I think it can be a major force in creating a very vital area."
(Sanders’ words are in line with recent comments about the REIT, indicating that the initial capitalization would be between $15 - $20 million dollars. Sanders has since indicated that he would not personally invest in the REIT, so as to allay concerns about a perceived conflict of interest for his son-in-law, Rep. Beto O’Rourke.)
Cook then asked whether eminent domain was a necessary part of revitalization plans.
"In many cases the city has to use the power of eminent domain, but you just can’t generalize, in some cases you do in some projects part of it you do, and again, we aren’t ready to address," Sanders said. "… we’ll have two plans, we’ll have one plan which is absolutely perfect but which has a lot of political or ownership baggage with it and we’ll have another plan which will be instead of an A+ will be A-, where the feasibility of putting it together will be both politically more feasible as well as the ownership more apt to go along with us."
After some more discussion, Cobos jumped in.
"I believe in Downtown revitalization and I also believe the private sector should take the lead in Downtown revitalization and what we have here today is the private sector stepping up," he said. "We need a world-class master plan. … Let’s move this Downtown area and Segundo Barrio, let’s move the Downtown area forward."
With that, Cobos made a motion to approve the contract.
Before the vote took place, however, a series of questions emerged about the scope of the project.
Rep. Robert Cushing asked whether the city's money would pay for the first part of the plan.
In the process of responding to the question, Sanders explained that "What we hope to end up with is No. 1 the key drivers that will have a dramatic impact on the area. I would also tell you that strategically our planning zone goes from Interstate 10 to the border from Union Station to the new Texas Tech facility because if you do this right you’re going to have waves of value creation and we hope to basically have that done in as logical a way as possible.
"… You have political considerations, you have ownership considerations, so in a perfect world the planners are going to come in and they’re going to say this is the area of the city where this should take place, and we are going to look at that and say you’re right but it isn’t feasible to put it there, we need to go to an A- area and basically revitalize that instead.
"So I would hope that by the, after Labor Day we will actually be able to show you Plan A and B, i.e. the optimal locations and the practical location or zones where the various types of development will take place."
Toward the end of the discussion, El Pasoan Ric Schecter brought up the question of whether the contract was specific enough.
"Correct me if I’m wrong, but you’re voting on a contract with this entity to carry out something and your contract doesn’t actually specify other than the dollar amount what it is that you’re getting," he said.
Wardy responded: "Mr. Schecter, you know what I think? You bring up a good point. You bring up the greatest point of all, and that’s why many of us ran for public office, because we get so tired of debating bureaucratic, I can’t use that word here council, bureaucratic bleep, we sit there and we shoot ourselves in the foot every time.
"We’re being asked to contribute funds to a public-private partnership, council has been briefed in entirety, the council is totally comfortable in how we go forward with this. There is some discretionary ability on the Paso del Norte Group on how the funds go forward and the phases and other studies that tie into this and you got to believe a little bit, there has to be a little faith in this exercise.
"And you know what? The less the city has to do with it the better off we are because we’re not good at this kind of stuff, So I’m going to tell you that there is a motion and a second on the floor, you do bring up some valid points, but we’re not going to, we’re not going to beat it to death here today."
Schecter replied: "I’m sorry, but I heard what you said, but I’m not exactly sure; did you just tell me to get the hell out of here?"
Wardy said: "Not at all, I think you bring up some points. I didn’t do that."
Following the exchange, Lisa Turner, another El Pasoan who frequently attends City Council meetings, asked the council to provide progress reports at 60- to 90-day intervals. "Absolutely," replied Wardy.
After a brief discussion, the council voted unanimously to approve the contract.
"Go get ‘em," said Wardy.
"Thank you on behalf of everyone. We’ll do the very best that’s ever been done for the city of El Paso. I promise you," Deckert said.
"Thank you for your patience today," said Wardy, ending the discussion.
* * *
During the Dec. 14, 2004 meeting, Central Business Association President Mike Breitinger was the speaker promoting the contract. The PDNG leadership was not present.
The discussion opened with Cobos explaining the proposal.
"This item is on the agenda as a result of a joint effort between the Paseo (sic) del Norte group and the city of El Paso, the private sector, and this is not necessarily committing to the funding at this point in time, but it is committing to the concept and to the partnership," he said. "We need a comprehensive Downtown master plan which will include Segundo Barrio as well, a large residential area. The Paseo del Norte has made the rounds; I don’t know if the council has any questions. I know Mr. Breitinger is here."
Before Breitinger spoke, Cook opened with a question.
"Is this the same as the El Paso 2010 corporation investment trust? Is that the same thing?" he asked. The El Paso 2010 foundation is an entity formed by the Paso del Norte Group to help implement the Downtown Plan.
"I can tell you that that could be a component, Mr. Cook, I think of it, but it is not part of the master plan and the master plan is just what it says, it’s going to be a guiding document and the concept has widespread community support. I think Mr. Breitinger will make that comment here and I think it’s good for the future," Wardy said.
After some discussion about previous plans, Cook made a comment and asked a question: "When these folks first came and visited with me they weren’t selling me on a plan. They talked about a real estate development trust. And it incorporated the plan in it, but it, the, I thought the best selling point of it was they were going to go out, with private sector money and some public sector money, go out and invest in properties and develop them. Is that still what the intention is?"
Breitinger said, "As far as I know that’s still the concept, the drive to be the financing vehicle to drive this whole mechanism, but you have something in front of you as your road map to show where you’re going and how that is all going to fit together, how it links together, and again that all goes back to retail development, to linkage of the historic neighborhoods, of Segundo Barrio, some of the projects that are there, some of the financial vehicles and opportunities that the city has on the drawing boards to bring all those together and network them."
Cobos also jumped in.
"No one from the private sector is going to invest the kind of money needed in the Downtown area when we don’t have a master plan," Cobos said. "… Do we need to bring a TIF back? Yes or no? I don’t know. That’s what the world-class master planner will show us. There was a TIF 1 that failed. Why? I don’t know. Our world-class master planer is going to tell us. Sun Metro and the improvements around San Jacinto Plaza and Oregon Street. Were those the appropriate thing to do? I don’t know. I’m not a world-class planner."
He went on, repeatedly saying that El Paso needed a "world-class" master plan.
Rep. Susan Austin then said that the council needed to "give good direction going into this plan to make it useful and effective for us when we get it back out."
Wardy replied. "It’s real important that we understand that we allow the people who have the experience and the know-how to set the template for us. I’m sure we can, we will participate in the process, but ultimately let’s let the people that know how to do this that have the success do it because everything we have done in the past has failed miserably."
Austin said: "Mayor, I am not trying to suggest that we actually get involved in the planning. I’m just saying we get involved in setting the criteria of what the plan should achieve. That’s all."
Breitinger then commented.
"If you meet with citizens of goodwill from that community… you will develop a plan for that community.
"And I know talking with all the candidates that had applied for this plan all of them had the same operational theory, that’s how they develop. So they don’t go and collect a check and then come out with a pretty picture and say this is what Downtown El Paso and the surrounding area should be. They meet with you, they meet with community groups, they meet with everybody, the business sector, the private sector, the community sector, and then formulate what’s there, what are the attributes," Breitinger said.
Rep. Paul Escobar said that having the private sector involvement would ease the politics of the plan.
"It’s going to hurt. And you know sometimes you have to hurt a little bit to get to the, to the good side. Now, if the private sector is taking the majority of this then we don’t get constituents saying you know well I live on the East Side why are you spending so much money on the Downtown area? We can say listen, we really are not, it’s really the private sector that is driving this, and then the politics go away," Escobar said.
"Well, when it’s private sector driven the numbers have to work," Breitinger said.
"But I do agree that the City Council has to have some, has to play a part in it," Escobar said.
"Sure, absolutely. Absolutely. You can’t do it without," Breitinger said.
"I think the question is, is the city a partner in revitalizing Downtown?” Cobos added. "…We do have city representation on the selection of the master planner. Miss Adauto, we do have I believe Veronica Rosales who is going down to those meetings on a regular basis and who is helping to select this world class planner.
"We don’t want to taint the process by making our opinions and forcing our opinions upon this group. We want it to be objective. And if it’s objective and non-biased then we’re going to get the best possible plan. When we have the plan, the city uses its, its ordinance ability, its permitting process, to make sure that it gets done. Do we want the private sector to invest their money in Downtown? Then we need to do our part, we need to lead by example, council."
Several minutes of discussion ensued. Cobos then said: "This is our Downtown. We have invested so much in the history museum, in the main library Downtown, San Jacinto Plaza, millions and millions of improvement for our Downtown. This is not my Downtown. This is our Downtown. This is a common gathering area for all El Pasoans. The Christmas Tree lighting, it was very cold and wet, but that is one of the oldest traditions that this city enjoys. It’s our Downtown and I would ask counselors, please please support this item."
Wardy said: "You making a motion, Mr. Cobos?"
Cobos replied: "And that’s my motion."
Cook said: "Your motion is please support this item?"
Cobos replied: "Please support this, Mr. Cook."
Cobos then made a formal motion, which Cook seconded.
Before they could vote, however, Schecter made several comments.
One of them was that "you have a separate private entity that is going to develop a community plan there doesn’t seem to be any necessary direction to them to involve the neighborhood associations and to look at the neighborhood association plans that they’ve developed for their own."
Wardy said: "Mr. Schecter, this is a Downtown master plan. What does that have to do with the neighborhoods?"
Schecter replied: "Because you’re talking about Chihuahuita and other neighborhoods and you’re calling it a community plan for the Downtown neighborhoods, so, I ... "
Wardy jumped in: "We’re getting the cart ahead of the horse here, Mr. Schecter. The scope hasn’t all been laid out yet. We can do what-ifs here until about midnight, but it’s not going to do anybody any good. Why don’t we let the professionals that know how to do this, give them the opportunity to execute. You know, we are our own worst enemy in this community. We continue to shoot ourselves in the foot and then look around and want to know who did it. You know, why don’t we just dare to dream a little bit and allow the professionals, with the proper guidance, with input from the public and the private sector, to do a comprehensive exercise for us?"
Schecter said: "Mr. Mayor, I was simply suggesting to you that the people that are the experts in their neighborhoods are the people that live in those neighborhoods."
"I don’t disagree," Wardy said.
Then Cobos spoke: "Are you speaking on behalf of the Chihuahuita Neighborhood Association?"
Schecter replied: "Did I say I was speaking on that?"
Cobos said: "No. But you’re saying they have concerns, that those neighborhoods should be taken into consideration when you don’t represent them in any way shape or form."
Schecter replied: "Representative Cobos, what I said, you’re talking about neighborhoods, those neighborhoods have associations, and those associations are making neighborhood plans. They should all be considered by these experts as they try to change those communities."
Wardy said: "Sure. We agree with you."
With that, the motion was made by Cobos to authorize City Manager Joyce Wilson to negotiate a contract for a Downtown Plan. It passed unanimously.
* * *
