In less than one month, a new state law takes effect setting up Lubbock to get more than $120 million in estimated new revenue for use on a Civic Center project.
Governor Greg Abbott allowed House Bill 2313 to become law without his signature. It authorizes Lubbock to create a “Project Finance Zone” for three miles around the Lubbock Memorial Civic Center. For 30 years, Lubbock gets to keep any “incremental” or additional hotel tax revenue in the PFZ instead of that money just going to the state.
The official estimate from the Texas Comptroller is $121.7 million between now and 2055. Lubbock can borrow money against that extra revenue and use it for a major overhaul of the Civic Center.
“We’re just thrilled we were able to recapture that money and use it for our own people here instead of sending it to a black hole in Austin. … The development of the Civic Center is a big priority for the area, and we’re just thrilled,” said State Representative Carl Tepper (R) of Lubbock.
The Lubbock Memorial Civic Center is nearly 50 years old and a study is underway to see what needs to be done to make it more attractive for regional events.
LubbockLights.com broke the story that Lubbock and Lubbock County might jointly put a new Expo Center on the Civic Center property. That idea has run into some opposition, including those who are fundraising private money for a new county Expo Center.
Mayor Mark McBrayer said the Civic Center needs a major update regardless of whether a new Expo Center goes downtown or in North Lubbock.
“That’s up to those guys in the county what they want to do. It’s their project,” McBrayer said of the Expo Center.
McBrayer said the city can also increase the local HOT or hotel occupancy tax citywide. That’s in addition to the PFZ. The move would bring in an estimated $40 million.
(The HOT is paid by visitors to hotels, not local property taxes.)
The deadline for a November election already passed, but the city could ask for voter approval on a higher HOT in the May 2026 election.
Tepper said the new law is a big deal and only a small number of cities are allowed to do this.
Lubbock joins San Antonio, Dallas, Fort Worth, Houston, Austin, Corpus Christi, and Arlington in having the authority for a PFZ.
“I just thank the governor for his consideration. These things are very controversial,” Tepper said.
They get controversial because once a Texas city gets a PFZ, others want the same thing.
And they raise a lot of money. The San Antonio PFZ is worth, according to the Express News, $2 billion or more over 30 years.
“That will really help move our project forward downtown,” Tepper said.
