CORPUS CHRISTI, Texas — A plan to collect state tax revenues from businesses around the American Bank Center was passed Tuesday at city council and city leaders are hoping it will cover the majority of the $100 million worth of needed improvements to the city's largest multi-use facility.
"Our project is that we are going to enhance, remodel, re-configure our existing American Bank Center, the arena and the convention center and the Selena Auditorium,” said city manager Peter Zanoni.
This funding tool, known as a project financing zone, was approved by state lawmakers back in 2023.
Some of the money will come from taxes generated by the 20 hotels located within 3 miles of the American Bank Center. The state will begin setting aside those tax dollars in January, and will send the city the total amount at the end of next year.
The city will be able to keep a range of 4-6 percent of those various taxes.
”It’s state taxes, hotel occupancy, state sales tax, state mixed-beverage drink tax," he said. "Their portion is given back to the city. It’s estimated that $70 million will be collected over the 30 years of this project finance zone."
It's believed that $70 million will be raised over the 30-year span of the agreement. It’s believed that the improvements will help bring more people to visit Corpus Christi and help fill up hotels.
3NEWS asked Zanoni if it would be cheaper to simply build a new arena and convention center.
He said the city did ask consultants that question, and that he was told that it would be cheaper to remodel and reconfigure the current building rather than investing in a new facility.
The city also may petition the state to expand the coverage area because the bay makes up a large portion of that 3 mile radius, which, of course, doesn't produce any of the needed taxes.
One councilman is hoping that a new roof, A/C and heating system and other improvements at the American Bank Center will be enough to see a hotel built nearby to help with improving convention business.
”We’re not going to build a hotel, but we want something that will be there in close proximity that a developer would be interested in, that way there’s some in close proximity to the convention center that’s convenient,” said councilman Roland Barrera.