A plan to bring new life to the cluster of city-owned properties once designated for the defunct Downtown arena won’t move forward after city staff rejected redevelopment proposals this month – extending the uncertain future of Duranguito, a site that has sat in limbo for nearly a decade.
The city’s Purchasing Director Claudia Garcia rejected the Union Plaza Redevelopment bids Dec. 5 and notified the El Paso City Council of the decision Tuesday. The item was set on the agenda for notation only and not for council action.
“Following a comprehensive and impartial evaluation of all proposals received, the city has decided not to move forward with the award of this solicitation,” city documents state as the reason for canceling the bid.
The move means the city will go back to the drawing board on future recommendations for the sale of the buildings and redevelopment of the area along Chihuahua Street between Overland Avenue and Paisano Avenue.
The properties are not part of the block where the city plans to expand the Judson F. Williams Convention Center. The city in November paid close to $8 million to acquire properties in a neighboring block for the expansion.
Workers removed a chain-link fence covered in green netting that had blocked Chihuahua St. in Duranguito for years, Wednesday, Oct. 25. (Corrie Boudreaux/El Paso Matters)
“Any proposed next steps will be brought back to City Council for consideration at a future public meeting,” Laura Cruz-Acosta, city spokesperson, said in an emailed statement to El Paso Matters.
The request for qualifications aimed to find a buyer and developer who would find new uses for the 17 properties in Duranguito and who would register eligible buildings on the National Register for Historic Places.
Several of the buildings are in disrepair and have structural damage from previous owners prematurely beginning to demolish them in 2017. The proposals were also supposed to find ways to preserve the historic character of some of the existing buildings and include green spaces, housing options including affordable housing, and retail and cultural spaces on ground floors.
It’s not the first time an attempt to find a redeveloper for the area has fallen short of expectations.
The city also struggled to lure a proposal through an initial informal request for letters of interest in March 2024. That effort did not yield what city economic development staff said would fit the needs in order for the city to agree to sell the properties.
Cruz-Acosta said city purchasing and economic development staff will meet with two of the qualified bidders for a “formal debriefing” on the request for qualifications as part of the effort to determine future recommendations.
The formal request for qualifications was issued in March and closed in June, according to the city’s bid documents. Four firms submitted proposals: Alembic Development Company LLC, based in New Orleans and El Paso-based firms Franklin Mountain Investments Limited Partnership, J&M Housing Inc. and Ysleta del Sur Pueblo.
The request for qualifications was amended four times after it was issued March 18, city documents show. The amendments included extensions for proposals, questions from bidders and added site visits for interested developers.
The properties in green are within the Duranguito neighborhood in Union Plaza that are city-owned and will be sold. Courtesy of the City of El Paso.
The city purchased the properties for about $13 million in 2017, planning to build the controversial $180 million, 15,000-seat venue approved by voters in 2012. The city abandoned its plans to build the arena there in 2023 after years of legal battles with opponents who wanted to see the area preserved as a historic neighborhood.
Voters in November 2024 approved putting an end to the arena by approving a proposition that prevented the city from issuing the remainder of the bonds that could have been used to move forward with the venue.
The city plans to sell the properties at fair-market value as part of any future development plans. It will use the proceeds to pay off part of the outstanding debt acquired when it spent bond funds for studies, engineering services and inspections for the initial development of the arena.
The rejection of the recent bid proposals does not mean the city is not committed to a resolution for the Union Plaza area, Cruz-Acosta said.
“The city remains focused on the long-term goal of transforming this historic district into a vibrant mixed-use area that preserves key buildings, supports housing and economic activity, and uses fair market value sales to address related financial obligations, consistent with council direction,” she said.
There was no timeline given for when a new recommendation will be presented to the City Council.
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