by Anthony Bond
Mayor Beth Van Duyne’s campaign against the entertainment center project in Las Colinas appears to continue. Her opposition to the project was at the center of her heated election against former Mayor Herbert Gears last year.
Recently, in a 6-3 vote, the Irving City Council defeated Mayor Van Duyne’s proposal to place a non-binding referendum on the May 12 ballot regarding the latest financing plan for the entertainment center project. Council members Gerald Farris and Joe Philipp voted with Mayor Van Duyne in favor of allowing the voters to weigh in on changes made to the 2007 financial model. Council members Mike Gallaway, Roy Santoscoy, Rose Cannaday, Lewis Patrick, Dennis Webb, and Rick Stopfer voted against the referendum. The majority of the council argued the referendum would divide the city.
Also, the efforts could possibly impede Las Colinas Group’s (LCG) efforts to obtain the $80 million in private funding needed for the project. This is what many suspect is the ultimate goal of Mayor Van Duyne. Otherwise why is she so determined to put this issue to a public vote, when as a City Council member she voted no to asking the public to vote on the project.
In an open letter in a letter to the mayor, William “Bill” Beuck of the LCG wrote, “This project is too important to the future of the City and the Irving citizens to make it the victim of divisive political tricks and political posturing. This is clearly an attempt to obtain, by political slight-of-hand [sic], something you have not been able to achieve through a vote of the City Council.”
Irving City Councilman Dennis Webb shared, “I believe the mayor’s actions are obvious that she is trying to prevent the developer from getting the final go ahead on the project. She has said many time she does not want this developer to do this project.”
It appears she is backing those words up with actions.
The financial details
Despite then council member’s Van Duyne’s objections, the citizens of Irving did vote at the beginning of this ambitious project. On November 15 2007, the citizens approved the plan in a margin of 66 percent to 34 percent in favor of funding a joint entertainment complex and convention center. The plan for the city’s contribution of funding the two facilities through:
- 2 percent citywide hotel occupancy tax;
- $3 tax on cars that utilize the entertainment center parking facilities; and
- 10 percent ticket tax on events held at the center.
In March 2008 the City Council, including Van Duyne, approved the implementation of the (the “Venue Hotel Tax”), often referred to as the Brimer Tax or Brimer HOT. The city began assessing the tax April 1, 2008.
Then along came the Great Recession.
To raise the needed $130 million for the Irving Convention Center, on January 8, 2009 the City Council, with Van Duyne the lone nay vote, approved “Pledge 7% HOT and tax pledge.”
Eventually the Convention Center was built and opened in 2011. The facility includes a 275,000 square-foot multi-functional building with a 50,000 square-foot, column-free exhibit hall, 20,000 square-foot ballroom, and 20,000 square feet of breakout meeting space.
For the Entertainment Center the City Council approved and the issuance of bonds as outlined below. They also allocated 2 percent of the Brimer hotel occupancy tax (HOT) and 7 percent city HOT. The bonds approved were:
- February 19, 2009, the City Council approved, with Van Duyne as the only no vote again, the issuance of $8 million Hotel Occupancy Tax Revenue Bonds,
- August 6, 2009 the City Council approved with Van Duyne as the only no vote again, the issuance of $8 million Hotel Occupancy Tax Revenue Bonds
- February 4, 2010 the City Council approved with Van Duyne and Thomas D. Spink voting no, the issuance of $9 million Hotel Occupancy Tax Revenue Bonds
Recently, LCG requested modifications in the 2008 rental and development agreement with the city. LCG is a private development company that is seeking up to $80 million in private funding for the Entertainment Center. Project investors want the interconnected companies with the project to restructure into a single business.
The City Council on Friday, March 2, in a special meeting authorized the spending of up to $200,000 to obtain a public bond rating on the city’s $170 million contribution to the project.
Mayor Van Duyne’s placement of 20 proposed changes to the city’s agreements with LCG on a special meeting’s agenda, led to foul play call by supporters of the project. The council did not approve the suggested contract changes offered by the mayor. The bottom-line is she simply does not have the votes needed to push her agenda on the Entertainment Center.
