Council approves Destination El Paso capital projects funded by hotel-occupancy tax; convention-center solar among proposals

Council on Nov. 18 approved Destination El Paso’s FY26 capital improvements plan funded by the hotel-occupancy tax capital fund (2.5% dedicated to capital). Jose Garcia, Destination El Paso CEO, told council the $4.16 million package focuses on deferred maintenance and energy efficiency for downtown venues and the convention center campus.

Key items include HVAC and controls upgrades at the Plaza and Convention Center ($660,000 and $1.25M respectively), a proposed $1.6M solar array for the convention-center roof intended to cut facility energy use substantially over 25 years, replacement of aging theater drapes and kitchen equipment, and life-safety and electrical repairs across venues. Garcia said the convention center has 83,000 square feet of roof area suitable for solar and estimated a 40% reduction in facility energy use and 9.5 million pounds of CO2 avoided over 25 years.

Council asked for more transparency about the facilities’ revenue and how hotel-occupancy funds relate to other city capital allocations. Staff and the city manager’s office agreed to prepare an annual report and a briefing on facility revenues, the management-fee contract and how the hotel-occupancy tax capital fund is structured. Council members noted that the Chavez Theater and the broader campus have large, multi-year capital needs that exceed the modest annual HOT capital allocation and will require broader financing strategies.

What’s next: staff will publish an annual Destination El Paso report and provide detailed revenue and contract breakdowns to council; the convention-center solar project and other items will proceed under the HOT capital budget.