By AMANDA KIMBLE
TheFlashToday.com
ERATH COUNTY (October 26, 2016) – More than $1 million… John Hubbard learned this week that amount is more than enough to get the attention of business leaders, taxpayers and the Stephenville Economic Development Authority (SEDA) board of directors.
Hubbard, SEDA executive director, said in an email to board members and other stakeholders Wednesday that he and several other community members met with Cody Johnson, prospective purchaser of Lone Star Arena a few months ago, and those in attendance were asked to sign a confidentiality agreement.
The news, released Tuesday in the form of a public meeting agenda, may have come as a surprise, but it’s just the nature of economic development, according to Hubbard. But, issue will be open to public discussion at 11:30 a.m. Thursday.
The SEDA board’s regular monthly meeting agenda includes a public hearing on Johnson’s request for assistance and the proposal to provide a loan of up to $1.2 million. The hearing will be held in the Stephenville City Hall training room.
Hubbard said the loan would provide for infrastructure and related improvements to Lone Star Arena, and the board will also be asked to consider an economic development grant for the facility.
Johnson requested short-term assistance with the acquisition of the property, and Hubbard said it’s likely Lone Star Arena will be shuttered if new ownership is not secured.
Johnson, front man for all things Twisted J – Twisted J Apparel, boutique, custom, studios and The Twist, plans to finalize the purchase of the property prior to the new year and make immediate improvements to the restrooms and cooling system. Hubbard said Johnson also has a long-term goal of improving the entire facility and making it more attractive for event organizers.
Hubbard told The Flash Tuesday Lone Star Arena was once a more viable part of the local economy, but there has been a drastic decline in the number of events held at the facility over the last several years.
Hubbard said in 2011, Lone Star Arena booked 91 events and 211 event days. At that time, the facility was owned and managed by Paul and Marcie Sullivan. They sold the facility in 2012.
“Year-to-date (in 2016), there have been nine events and 30 events days,” Hubbard said, adding a recent event illustrated the potential impact on local businesses.
“The impact to Stephenville is significant,” Hubbard said. “It is estimated the recent four-day Cowboy Capital of the World Rodeo event contributed over $2.5 million in economic impact to Stephenville, including spending on items such as food, hotel rooms, souvenirs, clothing, jewelry, saddles, tack, and other items from local merchants. Additionally, it is estimated that local sales taxes and hotel occupancy taxes collected during the event was $50,791 for the City of Stephenville and $14,613 for Erath County.”
Meanwhile, Hubbard said Johnson is confident he can compete with 2011 numbers, but the entrepreneur expects it will take two years to secure events and return the arena to its previous operating potential.
The Flash also spoke with July Danley, Stephenville Chamber of Commerce president/CEO and ex-officio SEDA board member, said the chamber works diligently to partner with local entities such as Lone Star Arena and others to host local events bring people “and ultimately, their dollars,” to the community.
“A portion of our hotel occupancy tax revenue is used to provide support to events based on several factors including the number of total visitors, overnight hotel stays and overall dollar impact,” Danley said. “We look forward to working with the new owners of Lone Star Arena to continue to bring exciting events to the Cowboy Capital of the World that will have a significant economic impact on the community.”
She also said that Stephenville and Lone Star Arena are in competition with other newer facilities across the state, but there is still a strong desire to bring events to town.
“Facility improvements such as a new sound system, large fans to circulate airflow and upgrades to the restrooms will help tremendously as we work together to recruit and attract more events,” Danley said. With our recognition as the Cowboy Capital of the World, our family-friendly atmosphere and supportive equine industry businesses – Lone Star Arena in Stephenville, Texas is the perfect place for a wide variety of sporting events.”
To help pave the way for future events, Hubbard will ask the SEDA board to authorize him to negotiate a memorandum of understanding that would provide a $1.2 million loan over a 13-year period with specific terms that would make SEDA a lien holder on the property.
While the number is a big one, Hubbard is also confident it will be a worthy investment. And, while there was some concern about certain not being “in the loop” until days prior to a public hearing, Hubbard offered an explanation.
“I did not get involved in exploring options how SEDA might help until about a week ago when Mr. Johnson told me and others he would not purchase Lone Star Arena if he didn’t get some help,” Hubbard said in the aforementioned email. “It wasn’t until this week, after talking with Mr. Johnson, did I have the framework for a memorandum of understanding for your review and approval.”
He also said leading economic development efforts often includes secrecy and withholding information until the time is right.
“I am often involved in negotiations with potential developers and businesses that, at the prospects request, are kept confidential until they are prepared to let the (SEDA) board and (Stephenville City) council know of their intentions,” Hubbard said. “I will ALWAYS inform the Board at the appropriate time. As you will find out in the October 27, 2016 meeting, I have been negotiating with three companies for three months and we are just at the point where we can provide you details on their projects.”
Thursday’s agenda also includes an update on discussions to the possible future construction of a new grocery store in Stephenville, consideration of a façade improvement program and potential approval of economic development grants for Ken Dickson/Chisolm Armory LLC and Nick Halili, president of Pastafina.
Be the first to comment