Editor’s note: This article has been updated following the El Paso Eastside Democratic Party’s endorsement of the UMC bond.
Voting in favor of El Paso University Medical Center’s $397 million project bond issue on the Nov. 5 election ballot was an easy decision for El Paso real estate developer Will Harvey.
“To me, it’s a given for our community. I can’t believe we don’t have some of the (medical) facilities,” he said.Notably, elements of the bond issue include burn centers and comprehensive facilities. It’s a cancer treatment center, he said.
Harvey said the proposed project, which would be paid for with property tax assistance bonds, would also have economic development benefits, including increased construction jobs and increased employment at county-run UMC.
“I think this is a pretty cost-effective approach. The cost of issuing UMC bonds is more or less the equivalent of $6 (property tax increase) a month for an average home,” he said.
Mr. Harvey is the finance director and one of the organizers of Citizens United for the UMC Political Action Committee, a group of mostly businessmen advocating for the bond issue to pass. He is also the chief executive officer of Riverbend Development, which develops shopping centers and self-storage facilities.
“You’ll end up paying a little more in taxes, but I think you’ll get back a lot more than you paid.”
Fiscal conservatives oppose issuing government bonds
For political activist Guadalupe Guinel, voting against the UMC bond issue and the county’s separate $324 million capital improvement bond issue would have been an easy decision, but in the opposite direction.
“It doesn’t matter how much the project is worth. What matters is that taxes and rents will go up,” said Zinner, who unsuccessfully ran for El Paso County judge in 2022 as an independent candidate.
“Issuing millions of dollars (of bonds) at a time is like ignoring the reality that El Paso is one of the poorest areas with the highest taxes.”
Zinner is a member of the small group of fiscally conservative El Pasoans, “It’s Okay to Vote No on Bonds,” supported by the Texans for Freedom Political Action Committee, led by former Arlington businessman William Eastland. ” is the organizer. PAC helps communities around the state fight bond issues.
Some members of the El Paso group have ties to the El Paso County Republican Party, which also opposes the bond issue.
The El Paso Eastside Democratic Party, which has about 220 members, supported the UMC bond issue because it would help build a stronger El Paso health care system, the group’s leader, Emma Acosta, said in a letter to the press. Ta.
Read more: El Paso hospital nurses get pay raises, new labor contract improves operations
Libre Initiative Lets Voters Have a Voice
The Libre Initiative, a national advocacy group based in El Paso, has canceled a similarly priced UMC project proposal for 2022, but does not oppose the bond issue.
Libre is not against this. “Because unlike 2022, when elected officials (County Commissioners Court) were trying to fund projects with certificates of obligation, this time the people actually have a choice,” Libre’s El Paso Grassroots Engagement Director. Enrique Romero said voter approval is not required.
“This year, it ultimately comes down to whether the people are willing to pay for it,” Romero said.
Average bond cost for property owners is $72 per year
UMC’s bond issuance will increase property taxes for homes with an average taxable value or assessed value of $210,000 in 2024, as determined by the UMC El Paso Central Appraisal District, by approximately $6 per month, or approximately $72 per year, over 30 years. I will do it. officials said. The UMC Cares website (umccares.org) has a bond tax calculator for property owners to calculate personal tax increases and bond issuance information.
Where bond campaigns are focused
Giner said the anti-tax group’s low-budget campaign relies primarily on its Facebook page, handing out fliers and setting up signs against the bonds outside polling places.
Giner, who donated, said he has received and spent less than $500 so far.
The Citizens United for UMC PAC has received $105,000 in contributions from El Paso business interests and corporations as of Oct. 7, according to its latest campaign finance report.
The largest donation was $50,000 from car dealer Steve Fox. Fox’s family donated $25 million to Texas Tech University in 2023 to help staff the El Paso Comprehensive Cancer Treatment Center, which will be named after Fox and his wife, Nancy.
Harvey said the PAC hired El Paso public relations firm Forma Group to run the campaign. Harvey said he is focusing on “advocacy messages across digital, print and social,” including on his website (citizensforumc.org). I haven’t done any TV commercials. He said PAC members also meet with businesses and other organizations to advocate for bond issuance.
Under Texas law, UMC officials cannot advocate for bond issuances, but they can provide information about proposed projects, and they have done so in dozens of meetings with various groups. UMC officials said. We also send TV commercials and flyers by mail. UMC spent about $70,000 from its general advertising budget on the information campaign, a spokeswoman said.
UMC officials said these projects are necessary to meet growing patient demand and provide additional services to patients at the 109-year-old county hospital. A big part of its mission is to treat people who don’t have health insurance.
The cancer center will be a joint venture between UMC and Texas Tech University.
The bond issue includes $30 million to support construction of the El Paso Cancer Center, which will be operated as a partnership between UMC and Texas Tech University, said John Law, UMC’s chief strategy officer. That’s what it means.
The Texas Legislature allocated $65 million to Texas Tech University for the center, which will cost between $120 million and $150 million to build, according to Texas Tech University Health Sciences Center El Paso officials. It is expected that it will cost. The cancer center will be part of a large clinical science building planned for Texas Tech University’s El Paso Medical Campus, adjacent to the UMC campus in south central El Paso.
Texas Tech University said in a statement that technology officials will continue to seek additional funding for the center.
Roe said it is expected additional funding will be sought from the state Legislature.
If voters approve the bond issue, “they’ll be able to tell Congress that it’s not just a philanthropic investment, but an investment in the community.”
A $25 million gift from the Fox family and $5 million from the Paso Del Norte Health Foundation will be used to fund the cancer center’s staff, including hiring staff.
Texas Tech University is managing the design. But if the bond is approved, the $30 million would give UMC a portion of ownership of the center, Roe said.
Burn unit will allow UMC to treat more patients
The bond issue includes $24.5 million to build an additional intensive care unit on part of the third floor of the eight-story hospital so UMC can treat critically ill burn patients instead of sending them out of town. It is.
Rowe said eight of the approximately 20 beds will be designated for burn patients. The unit includes specialized equipment and specialized operating rooms for burn patients.
$342 million for off-campus facility and hospital upgrades
Other components of the bond issuance total $342 million.
$207.6 million for non-hospital facilities: Central El Paso geriatric clinic, Horizon City clinic with emergency department, west and east clinic expansions, conversion of Texas Tech University campus building into UMC specialty clinic, west outpatient clinic Surgery center established in El Paso. $134.5 million for UMC and projects on its campus. Four new operating rooms, a new cardiac catheterization lab, a 25-bed expansion in the observation unit, imaging and testing unit upgrades, infrastructure rehabilitation, and additional parking.
An unspecified amount will be used to acquire land and real estate for new projects.
Sales pitch includes economic development
As part of Citizens United for UMC PAC’s sales pitch, information on the Support the UMC Bond website says the bond project will increase jobs and help El Paso “become a hub for skilled medical professionals.” The idea is to boost El Paso’s economy by helping people.
According to UMC estimates, drawn from UMC’s staffing experts and its strategic division, the bond project will contribute to the creation of approximately 500 new jobs at UMC facilities, including the cancer center.
UMC employs approximately 4,000 people, making it one of El Paso’s largest employers.
PAC information states the bond project will generate approximately $166 million for local construction companies and create approximately 4,400 construction jobs over an unspecified number of years. UMC officials used budgets from past large-scale projects and consulted with architecture firms and construction economists to arrive at the estimates, a UMC spokesperson said.
Multiple bond issues cause confusion
Harvey, the leader of the bond advocacy group, said El Paso County’s $324 million capital improvement bond issue and the city’s proposal to cancel a municipal bond for a downtown multipurpose center are on the same ballot. He said this is causing confusion for some voters.
“Now that everyone’s thinking about where their money is going and what they’re going to spend it on, there’s more to think about, and I understand that,” Harvey said. “That’s why I think this shows it’s a good investment.”
“Fortunately, we’re the last item on the ballot, so it’s easy to tell people that,” Harvey said.
More: El Paso County’s $324 million capital project bond gains attention on crowded election ballots
For Giner, the leader of an anti-solidarity group, success would mean defeating all solidarity.
“We want to protect the El Paso community from tax increases, which is why it’s okay to vote against these bonds,” Zinner said.
The last UMC-related bond issue in 2007 was approved by voters by a narrow margin of 51% to 49%. The $120 million bond issue was to build what is now El Paso Children’s Hospital, adjacent to UMC and part of the El Paso County Hospital District.
Vic Kolenc can be reached at 915-546-6421. vkolenc@elpasotimes.com; @vikolenc He is now known as X on Twitter.
