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Sales tax funding for American Bank Center arena and the seawall set to expire, leaders discuss expanded options

The sales tax revenue funds that are currently designated for the upkeep of the American Bank Center arena as well as any seawall projects are set to expire.

CORPUS CHRISTI, Texas — On Monday the city's Type A board heard from Assistant City Manager Heather Hurlbert on the beginning stages that would expand the use of that money.

Currently the city has two 1/8 cent sales tax funds. One that goes to the arena, and another for the seawall.

It's something approved by voters back in the year 2000 for a 25 year term.

That term is almost up and once again, voters will have the ultimate say if it continues for the next 25 years.

The 1/8 cent sales tax for the arena and the seawall both generate an estimated $8 million dollars a year.

That money is then used for things like capital projects and operational needs.

The city is hoping to use it for even more.

"City council was in agreement after a presentation to them, that the 1/8 cent could be used, and this is going to be vetted through stakeholders, so nothing is final, but their initial concept is to take the 1/8 cent and apply not only to the arena and entire convention center complex," said City Manager Peter Zanoni.

That would include the Selena Auditorium and other city owned buildings around the center such as The Corpus Christi Museum of Science and History, Art Museum of South Texas, Texas State Museum of Asian Cultures and Education Center, Harbor Playhouse, and the Water Garden.

You might remember, back in November residents voted against Prop A which would have allowed the sales tax for the arena and seawall to go toward a possible convention center hotel.

Zanoni stressed this time, "no major expansion with this proposal, just fixing what we have today, some modernization, some upgrades, but no expansion."

The potential uses for the 1/8 cent sales tax for the seawall could also be broadened to include other flood control projects throughout the city.

"That includes alleviating flooding on north beach, flood mitigation on the island, flood mitigation in Calallen, across our city where flood control measures would be helpful," he said. 

Leaders say work started on the proposal following the last election by working with city council members.

From this point, discussions will take place with stakeholders, and then the community. 

Keep in mind, new money generated by the current sales tax for the arena is set to expire in September of 2025 and for the seawall in March of 2026.

One of the questions raised during the meeting is what would happen if it isn't passed by voters.

"What we don't want is for some other taxing entity to get the sales tax, because they could if the city doesn't approve it for use in the city business, the RTA , community college, the county could put something on the ballot," said Zanoni.

If approved by City Council in July, the 1/8 sales tax items would appear in front of voters on the ballot in November.

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