UTRGV throws support behind proposed Cameron County arena

With early voting underway as of Tuesday, a ballot proposition that would allow the use of hotel occupancy tax revenues to help build a 10,000-seat, mixed-use arena in Cameron County has officials cheerleading for Proposition A.

The Brownsville City Commission on March 4 approved a resolution proclaiming the proposed arena a “quality-of-life project and a catalyst for economic development for the region.” The resolution noted that the county could use revenue from a sports and community-venue tax (approved by voters in 2016) already being collected by the county in combination with public-private partnerships to get the arena built.

The arena would anchor the Madeira residential-commercial development on I-69E halfway between Brownsville and Harlingen.

“While there are venues that allow for live music and athletic events in the Rio Grande Valley, there are currently no venues that accommodate large music and athletic events, graduation ceremonies, or other cultural or theater events in Cameron County,” according to the resolution.

In this April 25, 2022 file photo, a banner promoting to vote yes for an arena in Cameron County is seen along Frontage Road near Texas State Highway. The county is taking another shot at the arena, hoping voters will approve a proposition on the May 3, 2025 ballot.  (Miguel Roberts/The Brownsville Herald)

Weighing in on social media, Brownsville Mayor John Cowen Jr. said Proposition A, if passed, would allow the existing sports/community venue tax (2% from hotel room bookings and car rentals in the county), to be used toward the arena.

“It is important to note this would not be a new tax to the residents of Cameron County,” he posted, predicting that the project would make the city more of a magnet for businesses and talent.

“I believe passing this visitor tax allocation is a step forward in making this development a reality, but there is obviously more work to be done to determine the project size and scope and develop a prudent financing plan which would utilize Tax Increment Reinvestment Zone (TIRZ) financing to help pay for infrastructure, only using the growth that is generated in the designated zone,” he said.

A TIRZ is a special taxation zone that can be created by a local government to use taxes generated by developing property within the TIRZ to finance public improvements within the TIRZ, through a mechanism known as tax increment financing.

Cowen also cited the “opportunities to partner with our local educational institutions to be able to host indoor graduations and large events.”

The University of Texas Rio Grande Valley decided late last year to move Brownsville’s graduation ceremony to Edinburg due to the lack of an all-weather venue large enough in Brownsville, prompting Cowen to initiate discussions with the university on returning graduation, as well as a number of academic programs, to Brownsville.

Propositions to allow the use of venue tax revenue to help finance an arena have been voted down twice before, in November 2021 and May 2022. Arena proponents this time around are highlighting the proposed project as a way to get UTRGV graduation back to Brownsville as well as a home for other area graduations.

In a February letter from UTRGV President Guy Bailey to Cameron County Judge Eddie Treviño Jr., Bailey thanked Treviño for his support of UTRGV and also addressed the proposed arena, completion of which Bailey described as “not only a critical step forward for Cameron County but would be welcomed and strongly supported by UTRGV.”

“As you are aware, we had to make the difficult decision to move the Brownsville commencement ceremonies to Hidalgo County due to the absence of a suitable venue in Cameron County capable of accommodating the scale of our commencement events,” Bailey wrote.

“Cameron County’s construction of a new multi-purpose arena would allow us to not only hold commencement ceremonies in Cameron County, but other events, such as athletic practices, clinics and some games.”

In the letter, posted by Treviño on social media, Bailey pledged UTRGV’s support for the project and offered assistance in seeing it through to fruition.

Early voting ends April 29. Election Day is May 3.

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