LUBBOCK COUNTY, Texas (KCBD) – Lubbock County commissioners approved a lease agreement for the Lubbock County Expo Center in a 3-2 vote, moving the project forward despite concerns about the contract’s structure.
Commissioners Jason Corley, Jordan Rackler and Cary Shaw voted in favor. The dissenting commissioners raised concerns about how the lease is structured.
County Judge Curtis Parish said he supports the project but could not support the lease as written. He expressed concerns about control and how the county could exit the deal if problems arise.
“As an attorney, I would caution my clients not to sign this agreement. It does not protect Lubbock County,” Parish said.
Termination clause concerns
Parish said a termination clause was added over the weekend, but he called it inadequate.
“This termination clause only says by mutual agreement. So if the county, for instance, does not like the way that the facility is being operated, being managed, being run, we have no way out unless LCEC agrees to that termination as well. It’s very one-sided. It doesn’t protect the county,” Parish said.
Expo Center Board Chairman Randy Jordan said the private side also needs protections, especially if they’re expected to take on long-term financing.
“We couldn’t sign an agreement that would just say that arbitrarily the county comes in and says, we’re going to terminate your agreement. We’re fixed to enter into a long-term agreement with a financial institution. That could be 15 to 25 years. So if in year two the county says, well, we’re going to terminate your deal, we’ve got obligations that we’ve got to serve on that financial side of it,” Jordan said.
Funding and control
Commissioner Corley, who voted in favor, said the lease is built on the assumption both sides want to stay at the table. He said taxpayers won’t be paying for the project through property or sales taxes.
“Statutorily, we’re not allowed to spend anything other than hot tax dollars on this facility. So it will never touch your property tax. It will never touch your sales tax revenues either,” Corley said.
Parish said the lease takes away what he believed would be the court’s final say on design and operations.
“From the beginning, they always said that the Commissioners’ Court had the final say as to what the design is going to be, who’s going to operate it. That was all taken away today by this lease agreement,” Parish said.
Jordan said compromise is part of any lease and the agreement has to work for both sides.
“Anytime you go into a lease agreement, there’s going to be give and take. And that’s what we did. Anytime you go into a lease agreement, it’s got to be fair both ways. It’s got to be a two-way street; It can’t be just one way,” Jordan said.
The separate local government corporation board will meet July 8 to review the next steps in the project.
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