{"id":53586,"date":"2025-11-17T22:55:11","date_gmt":"2025-11-17T22:55:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/53586\/"},"modified":"2025-11-17T22:55:11","modified_gmt":"2025-11-17T22:55:11","slug":"next-few-weeks-will-tell-if-oversight-boards-expo-center-questions-are-answered-enough-to-get-decision","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/53586\/","title":{"rendered":"Next few weeks will tell if oversight board’s Expo Center questions are answered enough to get decision"},"content":{"rendered":"

The people working on a $67 million Lubbock County Expo Center planned for the north side of town didn\u2019t get approval from an oversight board Thursday in what was a long and contentious meeting.<\/p>\n

What\u2019s next?<\/p>\n

The county\u2019s Local Government Corporation (LGC) took no action on the project, voicing concerns and saying they had unanswered questions, but set two more meetings December 3 and 10.<\/p>\n

LubbockLights.com<\/a> contacted Gary Greenstreet, LGC chair, asking what\u2019s next, but he declined to comment.<\/p>\n

The non-profit Lubbock County Expo Center, Inc. (LCEC) have sought LGC approval before the County Commissioners eventually vote to say yes or no. But the Commissioners could vote without LGC approval. The LGC was set up as a \u201cpreference\u201d to advise the county on development, construction and operation of the Expo Center, according to the County Judge Curtis Parrish.<\/p>\n

Under the latest proposal, there would be two separate debts. The county would borrow roughly $32 million, authorized by voters in 2018 and paid for with a hotel occupancy tax (HOT) and a car rental tax. LCEC would also borrow up to $20 million from PlainsCapital Bank.<\/p>\n

The county has $14.5 million in reserve for this project \u2013 $10 million of which would be spent up front. Pledges and private donations are also available.<\/p>\n

After Thursday\u2019s meeting we published a more condensed version of what happened (which you can read here<\/a>), planning to come back with this more detailed story.<\/p>\n

In the tense two-hour meeting Thursday, the LGC had many questions:<\/p>\n

Some LGC board members felt excluded from documents and discussion items and wanted to know why.<\/p>\n

What are the details (including collateral) of a proposed $20 million bank loan related to the project?<\/p>\n

Since the county, by law, cannot have a bank loan, must the county have a lease or operations contract with LCEC as part of the proposed bank loan?<\/p>\n

Should a lease agreement come before the bank loan?<\/p>\n

Why did a previous \u201cpro-forma\u201d projection show the Expo Center breaking even, but a new one shows a $500,000 yearly loss? Were projections done correctly?<\/p>\n

Who controls the revenue? And who pays for any operating loss?<\/p>\n

LCEC consultant Greg Garfield with Garfield Public Private was scheduled to be there in person. His flight from Dallas could not get out on time and he made the presentation by video.<\/p>\n

After the meeting, LCEC chairman Randy Jordan told LubbockLights.com, \u201cI think our presentation could have been smoother and I think we probably got hung up a little bit about certain things \u2013 and that we weren\u2019t able to really go through \u2018boom, boom, boom\u2019 and make the case.\u201d<\/p>\n

\u201cWe\u2019ve got to go back and satisfy the answers and the questions and negotiate and look at what we can do, not what we can\u2019t do,\u201d Jordan said.<\/p>\n

\"LubbockRandy Jordan during an LGC meeting. Credit: Staff photo.<\/p>\n

Frustration over who knew, who didn\u2019t<\/p>\n

Terms of the bank loan were kept confidential \u2013 prompting some LGC members to complain they were kept in the dark. County Auditor Kathy Williams and Civil Division Chief Neal Burt also felt like answers were not forthcoming.<\/p>\n

There was also tension because some county officials along with some LGC members heard from specialized lawyers called bond counsel while other LGC members did not.<\/p>\n

And some LGC members saw the term sheet on the potential PlainsCapital Bank loan \u2013 others had not.<\/p>\n

\"LubbockCarl Isett during an LGC meeting. Credit: Staff photo.<\/p>\n

\u201cThose of us who have been excluded are just flat out of luck. \u2026 Apparently you think we\u2019re not clever enough to understand something complex. \u2026Why don\u2019t we have the information?\u201d said LGC board member Carl Isett.<\/p>\n

Garfield said, \u201cI\u2019m sorry people feel excluded from it. We have tried to act in good faith.\u201d<\/p>\n

Jordan, after the meeting explained, \u201cI\u2019m not pointing fingers. I feel like their entire board maybe had not been privy \u2013 not been given notice of some of the things that we took for granted that had already been distributed.\u201d<\/p>\n

LCEC did what it was asked to do, Jordan said.<\/p>\n

\u201cIt necessarily wasn\u2019t on us. It was on the LGC board to ask for information ahead of time. We were told to \u2018come and make your presentation,\u2019 and so that\u2019s what we did,\u201d Jordan said.<\/p>\n

LCEC\u2019s slideshow presentation is now available in writing to the LGC board, Jordan said. At the time of this article, the term sheet from the bank remains confidential.<\/p>\n

The Expo Center timeline:<\/p>\n

August 2018: LCEC non-profit registers with Secretary of State.<\/p>\n

November 2018: Voters approve a hotel occupancy tax (HOT).<\/p>\n

April 2019: Lubbock Municipal Coliseum just west of Jones AT&T Stadium torn down.<\/p>\n

November 2019: LCEC development agreement approved with the county.<\/p>\n

March 2021: Local Government Corporation registered with the Secretary of State to oversee the Expo Center project for Lubbock County.<\/p>\n

April 2021: LCEC donates land to Lubbock County (northeast of North Loop 289 & North University Avenue).<\/p>\n

November 2023: County hires MWM as the lead architect instead of MWM working for LCEC.<\/p>\n

February 2025: LubbockLights.com breaks story<\/a> about city inviting county to put Expo Center at the Lubbock Memorial Civic Center site.<\/p>\n

November 2025: LCEC announces intention to go forward at North University site.<\/p>\n

How does bank loan work?<\/p>\n

LCEC has donations and pledges but some of the gifts are given over three to 10 years. So, the plan is to get a loan and pay it back as the donations come in.<\/p>\n

Burt raised an objection in the meeting.<\/p>\n

\u201cWe can go through a bond election, which we did. \u2026 But a conventional loan at a local bank is not now \u2013 not going to be \u2013 an option for Lubbock County,\u201d Burt said.<\/p>\n

Garfield gave assurances, saying, \u201cWe are absolutely not \u2013 nor would we, nor can we \u2013 pledge any [hotel] tax \u2026 to repaying the private financing.\u201d<\/p>\n

\"LubbockDwight McDonald during an LGC meeting. Credit: Staff photo.<\/p>\n

But some of the LGC members, like Dwight McDonald, couldn\u2019t be sure. They had not seen the term sheet from the bank.<\/p>\n

\u201cCertain people know. I don\u2019t. And I don\u2019t like making decisions without the information,\u201d McDonald said.<\/p>\n

But Jordan reiterated the term sheet needs to remain confidential.<\/p>\n

\u201cThere are some provisions of that term sheet that would require the \u2026 assignment of that lease agreement. There\u2019s some other things and some terminology there that would have to be approved by the county,\u201d Jordan told the LGC.<\/p>\n

LGC member Gary Boren responded to Jordan, saying, \u201cThat\u2019s a public document that we need to see.\u201d<\/p>\n

Burt also had concerns over the proposed bank loan.<\/p>\n

\u201cLubbock County is not a party to that term sheet at this point,\u201d Burt said.<\/p>\n

But if Lubbock County negotiates with LCEC on what can and cannot be in the loan, then could someone say the county is \u2013 for any practical purpose \u2013 a participant in the loan? Burt said.<\/p>\n

\u201cIt puts the county in a very precarious position to involve ourselves in negotiations of a financial arrangement that we don\u2019t want,\u201d Burt said.<\/p>\n

The loan and LCEC<\/p>\n

Commissioner Jason Corley was present for part of the LGC meeting.<\/p>\n

Corley asked Jordan about the loan \u2013 wondering if PlainsCapital Bank made LCEC\u2019s ongoing participation a condition of the loan.<\/p>\n

\u201cAs I understand, that part of it hinges on having an agreement with Lubbock County to operate the facility. Do I understand that correctly?\u201d Corley asked.<\/p>\n

That was correct, Jordan said.<\/p>\n

Someone needs to operate the facility and the county is not likely to do that without outside help, Jordan said.<\/p>\n

\u201cWe would like to be that operator,\u201d Jordan said.<\/p>\n

After the meeting, Jordan told LubbockLights.com, \u201cEverybody that provided us a term sheet \u2013 that was one of the criteria that they asked for, that whoever\u2019s borrowing the money, in this case, LCEC, that they would be involved in the operations of the facility.\u201d<\/p>\n

That means LCEC needs either a lease agreement or a management agreement with the county.<\/p>\n

In the meeting, Corley said, \u201cWe really need that agreement before you guys can move forward with the taking out any kind of loan.\u201d<\/p>\n

\u201cCan you send that out just as bullet points? So that way we can all kind of go through and we start giving you a yay or nay what we\u2019re comfortable with,\u201d Corley said.<\/p>\n

Garfield interjected a proposal or a summary can be provided to commissioners and the LGC.<\/p>\n

\u201cEverybody can see it, understand it and then vote at the appropriate time,\u201d Garfield said.<\/p>\n

The operating loss<\/p>\n

LGC members expressed concern about paying back a bank loan if the facility lost money every year.<\/p>\n

\u201cWe never said the Expo Center was a for-profit organization. \u2026 We\u2019ve always said we hope that the Expo Center would break even. Historically, most of those kind of venues do not,\u201d Jordan told LubbockLights.com.<\/p>\n

Garfield showed a projection to the LGC and said, \u201cIt shows about a $500,000 operating loss.\u201d<\/p>\n

\u201cThis is not including sponsorships, philanthropic fundraising, naming rights, personal seat license and other programs that we have in our model that we believe is going to make this a viable and going operation,\u201d Garfield said.<\/p>\n

He also mentioned a percentage of food and beverage, beer and wine and merchandise sales.<\/p>\n

\u201cWe\u2019re going to be charging for parking at the venue. \u2026 meeting services at the venue. \u2026 Ticket service fees, etc. All of those are income streams for the building,\u201d Garfield said.<\/p>\n

Williams then asked Garfield, \u201cCan you explain why? What you gave us in September \u2013 which everything was kind of in the black \u2013 is now in the red?\u201d<\/p>\n

Garfield answered, \u201cThe design concept was changed. And so we went back and worked on a pro forma that met the revised design.\u201d<\/p>\n

\u201cIt might perform better and it might perform worse,\u201d Garfield added.<\/p>\n

Boren then wanted to know if the county controlled the revenue?<\/p>\n

Garfield answered, \u201cI think that would be governed by a lease agreement, which is what we\u2019re proposing between the county and LCEC.\u201d<\/p>\n

Boren responded, \u201cI want to give you a word of caution, because the county judge [Parrish] was told by Taylor County that they\u2019re losing way over $1 million a year. Of course, Lubbock\u2019s a bigger market.\u201d<\/p>\n

Expo Center coverage<\/p>\n

\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"County\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\t\t\t\t\t\tCounty oversight board withholds blessing for expo center, wanting more answers on financial issues<\/a><\/p>\n

\n\t\t\t\t\t\t\tNovember 14, 2025\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Study:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\t\t\t\t\t\tStudy: No matter where expo center goes, outdated Civic Center, surrounding areas need dramatic improvements<\/a><\/p>\n

\n\t\t\t\t\t\t\tOctober 20, 2025\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Future\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\t\t\t\t\t\tFuture of Civic Center, Expo Center on line in City Council, Commissioners Court meetings<\/a><\/p>\n

\n\t\t\t\t\t\t\tOctober 14, 2025\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"County\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\t\t\t\t\t\tCounty deadline proposed for Expo Center; if Corley\u2019s proposal passes, 120 days to finish planning or the county goes it alone<\/a><\/p>\n

\n\t\t\t\t\t\t\tMarch 7, 2025\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Plans\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\t\t\t\t\t\tPlans being discussed to move Expo Center downtown, paired with updated Civic Center; Expo leader still hopes it works on north Lubbock site<\/a><\/p>\n

\n\t\t\t\t\t\t\tFebruary 21, 2025\t\t\t\t\t\t<\/p>\n

If there is an operating loss, what happens next? There\u2019s estimated $800,000 to a $1 million a year of leftover hotel tax even after the county issues $32 million of bonds.<\/p>\n

Jordan said, \u201cYou\u2019ve got residual or excess venue tax that can then be used for operations. And that\u2019s what we were proposing.\u201d<\/p>\n

Isett said, \u201cOnce you take excess bond proceeds to cover shortfalls in income \u2026 you\u2019re actually using bond proceeds to pay to keep them out of the Dutch.\u201d<\/p>\n

\u201cWhether you feed it with excess bond revenue or HOT tax revenue or ad valorem, you\u2019re still feeding. \u2026 And there was never any discussion about using these HOT tax monies for operations \u2013 never,\u201d Isett said.<\/p>\n

Garfield disagreed.<\/p>\n

\u201cThe venue tax \u2026 has always been available to pay for operations, maintenance, development, design, capital expenditures, operations \u2013 everything but the private indebtedness,\u201d Garfield said.<\/p>\n

\u201cThat should be \u2026 in my opinion, the first source of revenue to pay operating expenses on the project,\u201d Garfield said.<\/p>\n

\"LubbockKathy Williams (left) and Randy Jordan (right) during an LGC meeting. Credit: Staff photo.<\/p>\n

Williams pointed out the LCEC needs permission from commissioners to that.<\/p>\n

\u201cI had the same discussion in Judge Parrish\u2019s conference room about whether or not those HOT taxes would be fully used. And I told y\u2019all then that you needed Commissioners Court approval,\u201d Williams said.<\/p>\n

Garfield said, \u201cWith the money that LCEC already has in hand and the pledges that it has and the financing term sheet that it has from its lender, we have all the money that is needed to move this project forward.\u201d<\/p>\n

Jordan said after the meeting, \u201cOur goal has been from day one, to bring something that can serve the quality of life issues that we truly feel like we need in Lubbock and not become a burden to the taxpayers.\u201d<\/p>\n

\n\tRelated\n<\/p>\n

\"\"<\/a><\/p>\n

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