Despite claims the Expo Center project failed to raise enough money, Lubbock County commissioners approved next steps Tuesday afternoon on a 4-1 vote.
Randy Jordan, chairman of the non-profit Lubbock County Expo Center Inc. (LCEC), presented the latest plan and a resolution to the commissioners for approval.
The resolution calls for a new design which brings the cost down to $67 million (from $97 million previously) and largely copies the Taylor Telecom Arena in Abilene.
As LubbockLights.com previously reported, the resolution confirms the location at North Loop 289 and North University Avenue – rejecting an alternative to move the venue downtown. The resolution also gets the county to work on borrowing roughly $32 million of the estimated $67 million total cost.
The remainder of the money comes from private fundraising by LCEC. Jordan said donations and pledges total $25 million. Some of the bigger pledges might be paid over a number of years – requiring LCEC to take out a loan above and beyond any money the county plans to borrow.
County Judge Curtis Parrish expressed concern and voted “no.”
Parrish told Jordan in the meeting, “My problem is I don’t believe that you have the best interest of the county in mind. I believe what you have is the best interest of the project in mind, but not the county.”
Jordan said he disagreed and believes the plan will work. An attorney who works for the county also defended Jordan – saying the county’s interests are being protected.
In the meantime, two members of the county’s oversight committee (the Local Government Corporation or LGC) wanted to comment during the meeting and never got the chance. They later talked to LubbockLights.com and Jordan also responded to those comments.
Communications breakdown
Ashley Cox, an attorney who works for the county, responded to Parrish’s concerns.
Cox and her colleagues were intricately involved in protecting the county’s interests, but also admitted there has been a communications breakdown, she said. The county lacked experience with public/private partnerships when it first partnered with LCEC.
“No one has done a good job of that. It is unfamiliar to us. We don’t know what we’re doing, but we’re about to figure it out so that we can have a better financial relationship between LCEC and the county,” Cox said.
Communication will get better and an Expo Center must be built, she said.
“We cannot un-ring that bell,” Cox said.
“It would decades to litigate and figure out,” Cox said of more than $20 million of hotel and rental vehicle taxes already collected since voters approved them in 2018.
By contrast, the current plan is workable, Cox said.
Boren and Isett reached out
Two LGC members, Gary Boren and Carl Isett, wanted a chance to speak to commissioners in the meeting but never got the chance. They’re the same two who voted “no” in the most recent LGC meeting (which we covered here).
Boren and Isett contacted LubbockLights.com after the meeting to share their concerns.
More than $7.5 million of county money was spent since 2018 without nearly enough to show for it, Isett said.
“We’re supposed to just accept that as a cost of doing business,” Isett said.
Previous architectural plans had to be abandoned because they were simply too expensive. That means spending money to draw up new plans, which could cost $2 million or $3 million more according to information previously presented in public meetings.
“LCEC did not lose a penny – not a penny. Everything that was lost was lost with taxpayer money,” Isett said.
Defenders of the project point out not all the engineering, utility work and road work at North Loop and University will not go to waste and added LCEC will pay the current $375,000 cost of schematics in the new plans.
Future projections of revenue or loss (pro formas) have not been done to professional standards – either GAASB (Governmental Accounting Standards Board) or FASB (Financial Accounting Standards Board), Isett said.
He’s concerned the Expo Center might lose $500,000 per year in operating costs – but defenders say that deficit does not include naming rights, merchandise sales and other revenue sources.
Boren said, “The county is transparent. Their ledgers are open. The books are open. The numbers are audited – verifiable. LCEC books are closed to inspection. The public has no access to see any numbers if they’re legitimate.”
He pointed to an ongoing lawsuit over the issue of which LCEC records need to be open to the public, filed by Scott Mann, Lubbock Lights publisher. He also made reference to objections raised by Kathy Williams, county auditor in multiple public meetings.
“The auditor is warning them – ringing the bell. Hello! Listen, this is serious,” Boren said.
Isett said, “The county auditor has complete veto power to stop the county commissioners from going beyond their statutory authority.”
In other words, if Williams does not get the documentation she needs, she can hold up county payments on the project.
According to state law, “A claim, bill, or account may not be allowed or paid until it has been examined and approved by the auditor.”
Jordan told LubbockLights.com some of Boren and Isett’s concerns were overstated.
For example, he said the $7.7 million spent so far was not wasted – instead it has gotten tangible results, which he listed as:
- Developing (and paving) Drake Street
- Underground sewer lines
- Lines to connect with city water
- Electric lines
- Developer/consultant fees for Garfield Public Private
- Site engineering
- A rezoning effort with the city and some minimal on-site construction.
Jordan admits architecture worth roughly $4 million must be tossed out and replaced with new architecture worth $2 million or $3 million. But he said that’s nobody’s fault and it’s for reasons beyond everyone’s control.
He also disagrees with Isett that this cost LCEC nothing. LCEC is putting up $375,000 to pay for schematics on the next plan. And LCEC donated land to the county at North Loop and University which he valued at “well over $1,000,000.”
Auditor wants documents
Lubbock County must know the total cost of the project. But she hasn’t seen enough in terms of financial documentation, Williams said.
“I’ve asked LCEC to provide me audits and financial documents for the last five years,” Williams said.
“I have never seen a financial ledger. I have received an audit from an independent audit company for 2020. I’ve received tax documents for 2023,” Williams said.
But a lot of the documents are not there, she said.
Cox said more documentation would be provided at the right time to show the money is available.
“I have followed up with Ms. Williams … to get her wish list of financials. Mr. Jordan has assured me that we will work together,” Cox said.
And if the documentation is not good enough by the time final plans come up for a vote, then commissioners can vote against it, according to Cox.
Jordan also disputed Williams, saying he provided to her:
- Year-end financial statements (six of them) for LCEC from 2019 through 2024
- LCEC federal tax returns (six of them) from 2019 through 2024
- External CPA audits conducted by Bollinger, Seger, Moss & Bill for 2019 and 2020 and more on the way as soon as they are completed
Jordan said after Tuesday’s meeting, he talked to Williams: “I just said. ‘Kathy, what else is it that you’re wanting to see? What more information do you want?”
He’s hoping to arrange a meeting with her soon to get that issue worked out, he said.
Jordan defended his record
Parrish challenged Jordan on the nearly $8 million already spent.
“I don’t see that we’ve had a good and valid purpose in the past, except just to fund your dream,” Parrish said.
Jordan responded, “I couldn’t disagree more, Judge.”
The money had to be spent because that’s how these projects work, Jordan said, but then COVID hit and private fundraising got harder.
“And it wasn’t the fault of the architect. … They did a beautiful job – did a great job,” Jordan said.
It also wasn’t the Commissioners Court’s fault or LCEC’s fault, Jordan said.
“I don’t like to think it’s my fault. … You’ll throw all the rocks you want to. Great,” Jordan added.
He pointed out 67 percent of county voters approved the hotel and vehicle rental taxes in 2018. The project had public support – not just commissioners.
Jordan said he desperately tried to stick with just the hotel and rental taxes along with private fundraising. And in that regard, he said it succeeded.
“Not one penny, not one nickel, not one dime has been paid by me as a taxpayer. Now, others would argue that the HOT [hotel occupancy tax] is a tax and it has to be paid by somebody. I agree,” Jordan said.
Jordan claimed in one sense the project has been a complete success so far – saying, “There would not be the need for Lubbock taxpayers to have their own tax dollars to go into the project.”
A hotel tax? Yes. But not one penny of property tax money went to the Expo Center, he said.
Amendments failed
Parrish offered two amendments to the resolution – both failed for lack of second.
The first amendment said the Expo Center “may” be located at North Loop and North University.
The location is important because proponents of the latest plan rejected the city’s partnership offer. Under the city’s alternative, the Expo Center would go on the same site as a renovated Civic Center with a new flagship hotel nearby. But critics point to traffic flow, lack of parking and the lack of room for future facility expansion.
The second amendment said Lubbock County will not incur any design cost. But in the meeting, LCEC said the only cost on the table right now is $375,000 for design work and LCEC is paying – not Lubbock County.
Tuesday’s vote is not the last word. Commissioners will still need to approve the final new design and a construction project which will need to specify a guaranteed maximum price.
This story was posted as developing news shortly after the commissioners voted. It was then updated with more details.
Clarification: In an earlier version of this story, the word “not” was missing in a sentence describing which efforts and expenditures are still in place even as plans changed. The story has been updated.
