El Paso City Council extends virus emergency while examining budget shortfall, arena project

EL PASO, Texas -- El Paso City Council on Monday extended its emergency precautions ordinance for the coronavirus pandemic through May 17 as it also discussed a projected $26.4 million budget shortfall due to decreased revenues in the wake of the virus outbreak.

A memo sent to city employees outlined wage cuts ranging from 1% to 5%, based on position level and compensation, that would take place for a 12-week period beginning in late May, City Manager Tommy Gonzales indicated. The city has already instituted a hiring freeze, he added.

Also due to concerns about the city's financial stability, two council members called for defunding existing plans to build a multi-purpose performing arts and entertainment facility - also commonly known as the downtown arena project.

City representatives Alexsandra Annello of District 2 and Claudia Lizette Rodriguez of District 6 suggested using $50 million from the 2012 'Quality of Life' bond approved by voters to renovate the Abraham Chavez Theater and/or the Convention Center instead of building a new arena.

Mayor Dee Margo emphasized that no funds were currently being spent on the arena project - with the exception of legal fees to defend against lawsuits brought by activist Max Grossman, who seeks to halt the project on historical preservation objections.

During a public comment period on the proposal, not a single person voiced support for the arena project.

Among those who their opposition was Romelia Mendoza, one of just two residents who still live in the path of the "arena footprint" in the city's old Duranguito neighborhood.

She called the arena both "expensive and unnecessary," and told council members that it was "unfair" she would be forced out of her home of 40-years to fulfill "rich people's pet projects."

No vote was taken on the issue, despite lengthy debate, with Mayor pro-tempore Peter Svarzbein suggesting arena opponents were playing politics under cover of virus concerns.

You can watch the council meeting in its entirety in the video player below. You can also look below to examine the budget document presented to council during the meeting.