CITY COUNCIL ROUNDUP
Council Weighs $40M Indoor Sports Complex Proposal
San Angelo city officials are considering whether the city should pursue an indoor sports complex that developers estimate could cost about $40 million and attract hundreds of thousands of visitors annually.
The proposal was presented Tuesday to the San Angelo City Council by San Angelo Chamber of Commerce President and CEO Steve Ahlenius and Synergy Sports CEO Jason Boudrie as part of a feasibility and viability study examining the potential for such a facility in the community.
“This was a project that the board of directors identified as one of its top three initiatives that they wanted to see happen in the community. It’s been something that we’ve been working on for the last 15 months or so.” Ahlenius told the council.
According to Boudrie, the study examined the region’s demographics and socioeconomic conditions, sports participation, the competitive landscape, potential sites, a recommended facility program, estimated construction costs, financial projections, potential economic impacts, funding strategies and operating partnerships.
The study also examined the broader market within roughly a two-hour drive of San Angelo, which Boudrie described as the area from which the facility could consistently draw visitors.
“We looked at what we call the subregional market, which is about two hours away, and that’s where you’re going to reliability pull from on a consistent basis.”
Boudrie pointed to the growth of sports facilities in nearby West Texas communities, including Odessa, as evidence of the potential market. He said the Odessa facility has grown to an estimated $130 million project and sits on roughly 100 acres.
“Where the opportunity lies for San Angelo is to the east. Coming from DFW, you have to go through San Angelo to get to Midland, and so, as a halfway point if you will, a facility in San Angelo would be able to capitalize on those regional demographics.”
The recommended concept calls for an indoor-anchored complex measuring between 100,000 and 150,000 square feet. The facility would include eight to 10 basketball courts that could be converted into as many as 16 volleyball courts or used for wrestling, cheer and dance.
The proposal also includes a flexible show court with seating for more than 1,000 people for marquee events, along with locker rooms, a cafe, sports medicine facilities, offices and batting cages.
Additional recreational features could include a climbing wall, rope course, archery area, pump track and spray park.
The study did not recommend adding diamond fields because of existing capacity in San Angelo, although modest flat-field development could be considered in the future.
The proposed site is on city-owned land.
Ahlenius said the complex could generate significant economic activity if built, including an estimated $14.5 million in direct annual spending, $143,000 in new sales tax revenue and $1 million in hotel occupancy tax revenue. The study also projects more than 330,000 potential visitors to the community.
Boudrie presented five potential funding models: a public-private partnership, a master lease, developer funding supported by municipal incentives, traditional bond financing and the use of internal municipal funds.
Under a public-private partnership, private partners would finance, build and operate the complex, while the city could contribute land, infrastructure or incentives and potentially provide an annual subsidy backstop during the facility’s early years in exchange for community-use rights.
A master lease model would involve the city or other partners funding development through a private partner before leasing the facility to an experienced operator that would assume revenue and maintenance risks in exchange for regular lease payments.
A developer-funded model would have a private developer build the complex, potentially alongside hotel or retail development, with municipal tax incentives and a financial backstop.
Boudrie said traditional bond financing was the least favored option because of the project’s cost, other competing city needs and the political considerations surrounding public funding of sports facilities.
Internal municipal funding could allow the project to move more quickly but could face procurement limitations.
Boudrie and his team recommended a public-private partnership with a municipal leaseback and financial backstop.
Mayor Tom Thompson said he sees the potential benefit of keeping local families and sports-related spending in San Angelo rather than having residents travel to neighboring cities.
“Everybody loves to see these things in their home town,” said Thompson. “I can’t tell you how many of my friends that I watch pack their kids up every weekend and then go to Midland, Odessa, Abilene.. They leave town and go to other places.”
Thompson said the public-private partnership model was particularly interesting, but he questioned whether the city is currently in a position to take on the project.
“The private-public partnership is what interests us here,” said Thompson. “We’re not saying no, but I will lead off with this and say it might be a ‘not now, we’ve got to look at how to finance things’…”
Other council members expressed similar views during the discussion, indicating that while they saw potential in the project, they did not believe the timing was right for the city to move forward immediately.
The presentation did not result in a vote on whether to build the complex.
RiverStage Projects Afoot
Activities at the Bill Aylor Sr. Memorial RiverStage are ramping up, as Phase 1A projects to make the venue more accessible.
The San Angelo City Council’s approval for $1.32 million in renovations include ADA-approved viewing platforms, three new dressing rooms, a new storage room, expanded seating on the terrace and more.
According to a bulletin from the city, other aspects of the renovation include:
- Improved access to the stage
- A relocated gate for easier entry into the reserved seating area
- New concessions and ticket booth
- Covered loading dock for smoother production and audio load-ins
The bulletin also stated that the city is exploring additional enhancements to the stage’s façade, fresh exterior paint and improved irrigation in partnership with the Parks Department.
Other August Proceedings
Recall Campaign Advances
A Nov. 3 date was set for the recall election of Councilman Harry Thomas, coinciding with the regular Election Day.
Mayor Tom Thompson addressed claims he described as “slander and libel” among the recall campaign, which you can read about more here.
Tax Abatement Advances
Considering a tax abatement for Technology Tower LLC, the building formerly known as Sitel, has undergone a massive renovation as San Angolans have no doubt seen.
Councilman Patrick Keely asked if there was a minimum wage guideline among the contract’s clauses, to which the city attorney replied that could be added.
Currently, the average annual take home pay for those employed at this facility will be around $55,000.
The facility must employ at least 59 to fulfill its contract with the city to receive their reimbursement on taxes.
The agreement would relieve 75 percent of the property value from taxation for a five year period,
Technology Towers LLC will pay the full amount, and then be reimbursed by the city after it fulfills its contractual obligations.
Public comment on this item emphasized the city’s power to make significant gains in better employment benefits through the tax abatement incentive, such as paid time off or dental.
Stormwater Efficiency Survey
A survey was proposed to identify areas for efficient improvements in flood retention ponds throughout the city, at a cost of $350,000, conducted by engineering firm Freese and Nichols.
This would be important for developers to better know their costs for drainage and infrastructure dealing with excess stormwater, says City Operations Director Patrick Frerich, adding the survey would aid the city in any of its future developments as well.
Councilmen Joe Self and Harry Thomas both supported the survey, citing obvious need for flood control in the city, and Self mentioned the recently developed areas around Farm-to-Market Road 2105 had little in the way of preparation before the 2025 floods, which led to the flooding of East Angelo Draw and subsequently, large portions of Lake View and southeast San Angelo.
Thomas said that he hopes it will allow builders to take care of the problem for the city through the construction of retention ponds.
Currently, developers have to build in retention ponds where they may not be necessary. Frerich mentioned that this would maximize tax revenue, allowing for more land to develop on any given lot.
