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.3 million city-owned Bert Ogden Arena update set to presented before the Edinburg City Council on Tuesday, February 6, announces Edinburg Economic Development Corporation

Featured: An artist’s rendition of the city-owned Bert Ogden Arena, a first-class indoor multi-purpose center being built at the corner of Interstate Highway 69-Central and Alberta Road in east Edinburg, which according to building permits issued by the City of Edinburg, is valued at an estimated $88.3 million. On Tuesday, February 6, 2018, representatives for The Vipers Arena, LLC will present an update on the project before the Edinburg City Council at Edinburg City Hall. The city council session begins at 6 p.m.

Illustration Courtesy of THE VIPERS ARENA LLC

Representatives for The Vipers Arena LLC, which is overseeing all aspects of construction of the $88.3 million, city-owned Bert Ogden Arena, on Tuesday, February 6, 2018, are scheduled to make a major presentation on the progress of the complex before the Edinburg City Council, the Edinburg Economic Development Corporation has announced. Vipers Arena LLC of McAllen, whose principal agent is Alonzo Cantú of McAllen, is serving as the private investor in the Public-Private Partnership. Vipers Arena LLC is overseeing all aspects of the construction of the facility, with Cantú Construction of McAllen, which is a company owned by Alonzo Cantú, building the Bert Ogden Arena. Vipers Arena LLC will also serve as the major tenant of the Bert Ogden Arena, and will be responsible for the operations, maintenance, scheduling of events, and marketing of the facility, which will feature 8,500 fixed seats, which includes 1,200 club seats, 12 luxury suites, a restaurant/club area, locker rooms, offices for sports team personnel, and marquee signs by the expressway. The Edinburg EDC is the jobs-creation arm of the Edinburg Mayor and Edinburg City Council. The Edinburg EDC Board of Directors is comprised of City Councilmember Gilbert Enríquez as President, Edinburg School Board Trustee Miguel “Mike” Farías as Vice-President, Isael Posadas, P.E., as Secretary/Treasurer, and Julio César Carranza and Noé Sauceda, Ph.D. as Members.

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$88.3 million city-owned Bert Ogden Arena update set to presented before the Edinburg City Council on Tuesday, February 6, announces Edinburg Economic Development Corporation

By DAVID A. DÍAZ
Legislativemedia@aol.com

Representatives for The Vipers Arena LLC, which is overseeing all aspects of construction of the $88.3 million, city-owned Bert Ogden Arena, onTuesday, February 6, 2018, are scheduled to make a major presentation on the progress of the complex before the Edinburg City Council, the Edinburg Economic Development Corporation has announced.

The city council, which meets at Edinburg City Hall, located at 415 W. University Drive, will begin its public session at 6 p.m.

Vipers Arena LLC of McAllen, whose principal agent is Alonzo Cantú of McAllen, is serving as the private investor in the Public-Private Partnership. Vipers Arena LLC is overseeing all aspects of the construction of the facility, with Cantú Construction of McAllen, which is a company owned by Alonzo Cantú, building the Bert Ogden Arena.

Vipers Arena LLC will also serve as the major tenant of the Bert Ogden Arena, and will be responsible for the operations, maintenance, scheduling of events, and marketing of the facility, which will feature 8,500 fixed seats, which includes 1,200 club seats, 12 luxury suites, a restaurant/club area, locker rooms, offices for sports team personnel, and marquee signs by the expressway.

The Edinburg EDC is the jobs-creation arm of the Edinburg Mayor and Edinburg City Council.

The Edinburg EDC Board of Directors is comprised of City Councilmember Gilbert Enríquez as President, Edinburg School Board Trustee Miguel “Mike” Farías as Vice-President, Isael Posadas, P.E., as Secretary/Treasurer, and Julio César Carranza and Noé Sauceda, Ph.D. as Members.

City Manager Richard Hinojosa, in his executive summary on the agenda item, provided some background on the complex, which will be the largest indoor facility of its type south of San Antonio.

“The City of Edinburg Local Government Finance Corporation (LGFC) entered into an agreement with the Vipers Arena LLC to undertake and construct The Bert Odgen Arena, a multi-purpose event center which will provide for sporting events, concerts, family shows, trade shows and similar events,” Hinojosa stated.

“The agreement between the LGFC and the Vipers Arena LLC also outlines the operation and maintenance of the multi-purpose event center along with the related parking and infrastructure. The Bert Odgen Arena will be owned by the LGFC and will be leased to the Vipers Arena, LLC.”

Hinojosa added that “Vipers Arena LLC will have full control of the multi-purpose event center and will retain all revenues for the term of the lease (30 year term), and will pay the LGFC a base rental fee of $350,000 per year of which the LGFC is required to deposit $150,000 per year into a capital improvement fund for the multi-purpose event center.”

On Monday, November 20, 2017, the Edinburg EDC Board of Directors, whose members had recently been appointed to their public service positions, received some background on the arena.

Earlier in 2017, the Edinburg EDC did issue a news release providing background and details on the arena. Highlights of that information, which was issued to the public on Thursday, March 9, 2017, follows:

One of the more valuable public construction projects in Edinburg’s history took a major step forward in January 2017 with the issuance of a building permit, valued at $80 million, for the city-owned, 190,000 square foot Bert Ogden Arena.

Once completed, the total investment for the Bert Ogden Arena, a first-class indoor multi-purpose center being built at the corner of Interstate Highway 69-Central and Alberta Road in east Edinburg, will reach an estimated $88.3 million.

In general, a building permit is legal permission given by the City of Edinburg, through the Code Enforcement Department, to erect, construct, renovate, maintain, or conduct any other specified activity on any building or structure, or on any installations or facilities therein. The term “building permit” includes but is not limited to building permits, electrical permits, mechanical permits, and plumbing permits.

The Bert Ogden Arena is being designed to host a variety of entertainment events, including sporting events such as basketball, concerts, family shows, and trade shows.

Through a state economic development strategy – known as a Public-Private Partnerships (P3s) – being used by the city, there will be no increase in local property tax rates to pay for the construction of the complex.

Instead, a portion of the city’s and Edinburg EDC’s local sales taxes will be used to pay the city’s share through revenue bonds – about $46 million – of the arena’s construction, with Vipers Arena, LLC covering the rest of those costs.

A revenue bond is a municipal bond supported by revenue from a specific project, such as a toll bridge, highway, or local stadium, according to investopedia.com. Revenue bonds are municipal bonds that finance income-producing projects are are secured by a specified revenue source. Typically, revenue bonds can be issued by any government agency or fund that is manager in the manner of a business, such as entities have both operating revenues and expenses.

The major entertainment venue is named after the Bert Ogden of Edinburg, who established his first dealership in Edinburg in 1970. He and his wife, Dorothy, both passed away in 1992, the result of a car accident. But his daughter, Janet, and son-in-law, Robert Vacker, continued with the family business, which has evolved into one of the most successful vehicle dealerships in the nation.

On Thursday, February 26, 2015, Vipers Arena LLC announced that the Bert Ogden Auto Group had purchased the naming rights for the complex in honor of the visionary Edinburg man.

In addition, the Bert Ogden Arena will serve as the home for Rio Grande Valley Vipers professional basketball to Edinburg. Currently, the RGV Vipers play their home games at the State Farm Arena in Hidalgo. The RGV Vipers are affiliated with the NBA’s Houston Rockets.

“Today is the biggest day in franchise history for the Rio Grande Valley Vipers. We are excited to break ground and be the anchor tenants of Bert Ogden Arena,” RGV Vipers President Bert García said during the February 2015 ground breaking. “Not only does Edinburg serve as the (Hidalgo County) county seat, but now, it is also becoming the sports and entertainment hub of the Rio Grande Valley.”

“The arena will offer luxury, quality, and exceptional service – all traits synonymous with the Bert Ogden brand. We are also proud to have a local business organization lit up on the arena’s marquee as our naming rights partner,” the RGV Vipers president continued. “The RGV Vipers have always focused on supporting the community that supports us. Partnering with Bert Ogden Auto Group is just one more way to keep our business local.”

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For more information on the Edinburg Economic Development Corporation and the City of Edinburg, please log on to http://edinburgedc.com or to http://www.facebook.com/edinburgedc.

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