City’s chief financial officer concerned about arena delays

The City of El Paso has yet to select a concrete location for the new Multipurpose Cultural and Performing Arts Center, but financing has been approved and is underway.

El Paso’s Chief Financial Officer Mark Sutter said if interest rates rise during the delay, taxpayers will end up paying for it.

“That shoves us off a little bit further into the higher interest rate environment, so we can expect to pay a little bit more on the bonds the further we delay,” said Sutter.

Out of the $180 million dollars allocated for the arena, approximately $40.8 Million dollars has been issued in bonds.

The City of El Paso estimates $1.7 million has already been spent on the project.

Sutter told ABC 7 a debt service schedule and payments have been budgeted based on an initial lower interest rate.

Sutter, however, is concerned the delay of arena construction will subtract more than money, it will impact infrastructure.

“The longer we wait, and put off the project, the fewer seats you can build with that amount of money,” said Sutter.