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| El Paso-owned and proud |
Jul. 25 - Jul. 31
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Why Tanny Berg pulled out of the Paso del Norte Group
By Mike Mrkvicka |
 Tanny Berg, whose business career began in the 1970s in his father’s electronics distribution company on South El Paso Street and who today develops and manages commercial property throughout the city, has always been an unabashed booster of Downtown El Paso.
“I simply cannot sever the emotion I have for the barrio I grew up in. For Sacred Heart Church. For South El Paso Street. For Oregon and Mesa and Stanton streets,” Berg says.
And he staunchly supports the concept of improving the Downtown business climate.
But last year, Berg, former chair of the Hispanic Chamber of Commerce, conspicuously dropped his membership in the Paso del Norte Group, the organization of local business leaders dedicated to promoting the economic and cultural vitality of the region.
His objection: the group’s plan to revitalize Downtown.
Under the plan, William Sanders, the internationally known real estate mogul, has established a real estate investment trust known as the Borderplex Community Trust, which will purchase about 125 acres in Downtown El Paso. The REIT will then coordinate commercial and residential development on all the property in line with a master plan approved by the El Paso City Council.
“I have real anathema for the idea they (the REIT) has to displace all the property owners and businesses Downtown,” Berg said. “I’m not one of the people who say let’s bulldoze it and recreate it from the ground up. I think we can complement what we’ve got and build something better with it.”
What irked Berg was the Paso del Norte Group’s assertion that the values of Downtown property had deteriorated to the point where it is generating only $400,000 in property tax revenue.
“That’s probably the major reason I had serious reservations about being a member of the Paso del Norte Group. I don’t want them to make misstatements. I want the facts to be on the table,” Berg said.
“When I questioned them on this statement, they finally qualified it by saying they were only talking about a five-block area south of Paisano. I asked them why, in all the newspaper stories, they kept referring to all of the Downtown (contributing so little in property taxes). Their answer was, well, that area is Downtown.
“Yeah, but the Downtown also has the Wells Fargo Tower and the Chase Bank building, which just sold for about $15 million,” Berg said. “That, by itself, represents about $450,000 in taxes. I mentioned that to the group. And they said, ‘Oh, we don’t include the Chase Bank as Downtown.’ Huh? If it isn’t in Downtown, where is it?” If they’re going to misstate things to prove a false point, I have to begin to question all their points.”
Berg also objects to the Paso del Norte Group’s reluctance to tell the public how much the revitalization will cost.
“If all they’re talking about is private investment, then they don’t need us. Go out and buy the property, tear it up and do whatever you want. We’ll support you. But the group keeps bringing this up in public forums over and over again. Something tells me they’re going to want something from taxpayers down the road,” he said.
Berg said he posed the question about cost of the revitalization at all the public hearings on the plan but didn’t get an answer until the Paso del Norte Group made a presentation to the Hispanic Chamber of Commerce board of directors.
“They said it will be at least a billion dollars. How much is coming from the private sector? How much is coming from the public sector? Where are we going to raise it?”
The Paso del Norte Group didn’t answer those questions.
Berg’s second unanswered question has to do with the role of William Sanders in establishing and running the Borderplex Community Trust. “Ask anyone in the business community what is driving Downtown revitalization and they’ll tell you it’s Bill Sanders,” Berg said.
“I love Bill Sanders but Bill is mortal. Bill might move. Bill might get sick. I don’t wish anything bad on him but he’s just a mortal human being.
“So my next question is important. Do we as a community have the presence of mind to go forward and complete this mission if we lose him? Or are we too oriented to having a padrone who will do it for us? “Everybody seems to be saying, yeah, we want it as long as we’ve got him. If we lose him, then the whole project dies. I’m sick and tired of El Pasoans starting projects and not finishing them,” Berg said.
What does the Paso del Norte Group need to do to reclaim Berg’s allegiance?
“It first has to redefine the plan to incorporate what already exists Downtown. The redefined plan needs to make what already exists better and bring in other elements that help Downtown be more attractive as an entertainment and retail source.
“When you press Paso del Norte Group advocates on what will entice people back Downtown, they say they want to bring in the big boxes: the Kmarts, the Targets, the Wal-Marts, the Circuit Citys, the Best Buys. Well, personally, I’m not sure I would use a Downtown Target, Wal-Mart or Circuit City over the ones on the Westside and Eastside that already exist.
“Their story needs to be better defined. To me, Downtown needs to be a mixed-use area. There needs to be retail, there needs to be entertainment and it needs to be blended together in some way that complements what we’ve got and creates something for our future,” he said.
Editor’s note: The Paso del Norte Group declined the opportunity to respond to Berg’s assertions.
Send comments to tomfenton@elpasoinc.com |
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