Developers behind a proposed extreme sports amusement park must regroup after being denied public financing by the city of Leander.
Leander City Council unanimously rejected a plan Aug. 22 that would have allocated
$80 million in public municipal bonds toward X Park USA, a 120-acre, $62 million proposed venture on the city's northwest side on Bagdad Road.
"At the end of the day, I don't think, and eventually the council didn't feel comfortable getting involved in a private business," Leander City Manager Kent Cagle said. "We were going to assist them in borrowing $80 million, yet we weren't going to have any control over operations of the park. It just put us in a real awkward position."
The project has been on the city's radar since 2006 when Leander approved a development agreement, which has since expired. Plans called for a regional, multi-venue sports and entertainment complex that would host BMX bike racing, skateboarding, motocross motorcycle racing and other outdoor sports.
But as efforts to obtain money for the project became more difficult during the recession, organizers began seeking public support. X Park investor Gary Blackwell said the public municipal bonds would not negatively effect Leander's bond rating if project organizers failed to repay the $80 million in tax-free bonds.
"There would not be one taxpayer dollar going into the project," Blackwell said. "The city or issuing agency has zero responsibility."
His team has since approached other Central Texas cities about the same proposed financing mechanism to build X Park, but Blackwell said project organizers still prefer building in Leander, a sentiment shared by city officials despite insistence from Mayor Chris Fielder, who said the option to issue public municipal bonds is "off the table."
"We all want X Park to succeed," Fielder said. "The issue is the financing."
X Park officials have not ruled out more traditional financing, especially as financial markets improve. In fact, Blackwell said three investment groups are currently reviewing the project.
"We have not stopped moving forward on this project," he said.