ULB, investors: Little risk for ballpark

BROWNSVILLE - United League Baseball and private investors say there is little risk for Brownsville in regard to construction of a ballpark complex on West Alton Gloor Boulevard.

According to a Jan. 17 news release, ULB officials had originally intended to fund 100 percent of the construction of a 3,500-seat baseball stadium nine months ago, but found it difficult to secure the necessary loans during the current national financial crisis.

"We've all been watching the news and are painfully aware of the freeze in the financial market and the way the banks have all been struggling," Richard Hope, of the Hope Property Group, said. "The conventional commercial banks are really, really tight right now."

At Tuesday night's City Commission meeting, a majority of commissioners voted to issue $7.5 million in bonds to build the stadium.

Commissioners Charlie Atkinson, Leo Garza and Carlos Cisneros joined Commissioner Edward Camarillo in favor of the project. Mayor Pat M. Ahumada Jr. and commissioners Anthony Troiani and Ricardo Longoria did not give their approval.

Alton Gloor Stadium Group and Brownsville Stadium Group will lease the facility and 46 acres for commercial development for a guaranteed minimum of $325,000 per year to the city.

City Attorney Jim Goza said he understands that the city's annual payment on the bonds would be $650,000 and said Wednesday that he doesn't know how the city would make up the difference or what it would pledge to bondholders. However, he told the commission Tuesday that, "we would not encumber property or sales tax."

Ahumada reaffirmed his opposition to the project Wednesday, pointing out its risks and noting that someone doesn't make a purchase without knowing how he's going to pay for it.

The private groups plan to invest $21 million in commercial development. Hope said that besides the guaranteed payment to the city, there would be added revenues to the city in sales tax and personal taxes on the commercial buildings.

"There is no way to say there is no risk involved," Hope said. "But there is a tremendous risk in doing nothing particularly at this point in our economic life."

There are several layers of guarantees that would prevent taxpayers from being left holding the bag, Hope said.

"If everything that could go wrong goes wrong, the worst-case scenario is that citizens of this community have a wonderful facility that they would own and operate," he said.

ULB's Gary Wendt said Wednesday that he is "100 percent committed" to building a community sports complex in which the community will be proud.

Former ULB founders Byron Pierce and John Bryant sued Wendt and United Sports Equities LLC in Dallas in August, public records show.

The 191st Texas State Judicial District Court issued an injunction against United Sports Equities, stopping it from reorganizing the league or liquidating assets.

As The Monitor reported earlier this year, the court ruled in favor of the injunction due to the possibility of Amarillo and San Angelo being transferred to the Golden League, with the Edinburg, Harlingen, Laredo and Alexandria franchises being dropped.

Asked Wednesday if the lawsuit could impact plans, Wendt said he didn't anticipate any effects.

"One can never tell, but we don't anticipate it affecting the operations in Brownsville," Wendt said.

The investors plan to break ground on the development in January.