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\u2019s structure.<\/p>\n
Commissioners Jason Corley, Jordan Rackler and Cary Shaw voted in favor. The dissenting commissioners raised concerns about how the lease is structured.<\/p>\n
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.<\/p>\n
\u201cAs an attorney, I would caution my clients not to sign this agreement. It does not protect Lubbock County,\u201d Parish said.<\/p>\n
Termination clause concerns<\/p>\n
Parish said a termination clause was added over the weekend, but he called it inadequate.<\/p>\n
\u201cThis 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\u2019s very one-sided. It doesn\u2019t protect the county,\u201d Parish said.<\/p>\n
Expo Center Board Chairman Randy Jordan said the private side also needs protections, especially if they\u2019re expected to take on long-term financing.<\/p>\n
\u201cWe couldn\u2019t sign an agreement that would just say that arbitrarily the county comes in and says, we\u2019re going to terminate your agreement. We\u2019re 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\u2019re going to terminate your deal, we\u2019ve got obligations that we\u2019ve got to serve on that financial side of it,\u201d Jordan said.<\/p>\n
Funding and control<\/p>\n
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\u2019t be paying for the project through property or sales taxes.<\/p>\n
\u201cStatutorily, we\u2019re 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,\u201d Corley said.<\/p>\n
Parish said the lease takes away what he believed would be the court\u2019s final say on design and operations.<\/p>\n
\u201cFrom the beginning, they always said that the Commissioners\u2019 Court had the final say as to what the design is going to be, who\u2019s going to operate it. That was all taken away today by this lease agreement,\u201d Parish said.<\/p>\n
Jordan said compromise is part of any lease and the agreement has to work for both sides.<\/p>\n
\u201cAnytime you go into a lease agreement, there\u2019s going to be give and take. And that\u2019s what we did. Anytime you go into a lease agreement, it\u2019s got to be fair both ways. It\u2019s got to be a two-way street; It can\u2019t be just one way,\u201d Jordan said.<\/p>\n
The separate local government corporation board will meet July 8 to review the next steps in the project.<\/p>\n
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