Amarillo City Council replies to Civic Center court decision

In response to Tuesday’s ruling to issue a continuance and combine all lawsuits in the Amarillo Civic Center project case, the city of Amarillo stated that they could not give specific comment on ongoing litigation, but Amarillo Mayor Ginger Nelson stated her confidence in the legality of the city council’s measure to fund the project.

In a statement issued to the Amarillo Globe-News, Nelson said: “I remain committed to the ongoing legal process, and I am certain this process will confirm the validity of the City Council's action related to the tax notes for the civic center. My primary hope is that this matter can be resolved as quickly as possible with the least expense to our citizen taxpayers, both in litigation costs and added expense to the project overall.”

More:Judge decides to consolidate Amarillo Civic Center lawsuits; 3 key issues to be decided

Also issuing a statement on the matter was Amarillo City Councilmember Howard Smith, who lamented the added cost to the project due to delaying the funding. Smith expressed confidence the measure passed was a proper usage of Texas Government Code Chapter 1431, which outlines that tax anticipation notes can be used to fund the construction of public works.

“The city council validly followed the law when it voted to approve the civic center project. We will continue to follow the legal process, which I believe will confirm that the council’s action was lawful and valid,” Smith said. “Meanwhile, delays caused by this lawsuit are costing taxpayers money as interest rates and construction costs continue to go up. Interest rates have gone up 75 basis points since this lawsuit was filed, which adds over $13 million in interest cost alone, and the numbers are still rising. Who is covering this cost?"

With Judge William Sowder deciding to combine the lawsuits regarding the Amarillo Civic Center project, the city now awaits the judge’s decision on a court date, which it hopes to be within three weeks, citing rising costs created by delays. The city also awaits the judge’s decision on whether it will be a bench or a jury trial to determine the legality of using anticipation notes under Texas code, and if other documents need to be released to the legal party of Alex Fairly in his suit against the city for its proposed action.

Editor's note: The story is still developing; please check back to Amarillo.com and future print editions for more updates.