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Bankruptcy court issues favorable opinion; Pelicano Drive widening project may restart pending surety action
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Summary
County attorney reported a bankruptcy court opinion that concluded the Camino Real Regional Mobility Authority validly defaulted the contractor on the Pelicano Drive widening project; next step is an agreement with the surety for takeover and bidding to resume.
A bankruptcy court issued an opinion favorable to the Camino Real Regional Mobility Authority and El Paso County involving the stalled Pelicano Drive widening project, the county attorney told Commissioners Court on May 5, and staff said the finding could clear a key legal obstacle to restarting construction.
Assistant County Attorney Edward Sosa described the recent development: “we did get an opinion from the bankruptcy court that is very much, in favor of the position of the Camino Real Regional Mobility Authority and and the same position of the El Paso, County.” He cautioned the court that the decision is not final and other bankruptcy procedures remain pending.
Sosa said the opinion addresses a central dispute: whether the RMA properly defaulted the original contractor for performance failures. A primary barrier to restarting the project had been the surety company's position that it could not proceed until a final determination on default was reached. With the bankruptcy court’s opinion finding the default valid, the next practical step is an agreement with the surety to assume and complete the work; if the surety accepts that role it would invite contractors to bid and resume construction.
County officials said they are coordinating with the Camino Real RMA and TxDOT on a restart plan and will provide updates to the court as negotiations with the surety and subsequent steps progress. No formal court action was requested at the meeting; staff committed to returning with status updates.
