A planned 12,500-seat amphitheater at the Cohen Entertainment District in Northeast El Paso is being pitched as a catalyst for redevelopment in the area. But it also raises questions about what that means to the future of a Downtown venue.

The city is finalizing a deal for the amphitheater with Notes Live, an entertainment venue development company based in Colorado Springs established in 2017. Notes Live is planning and building several similar facilities in Georgia, Texas, Oklahoma and Tennessee – though none have opened.

The El Paso City Council on Tuesday approved the public-private partnership, under which Notes Live will invest $80 million to build the venue on the 50-acre plot of city-owned land. The city will convey 15 of those acres to the company and provide about $31 million in incentives over 20 years. The incentive agreement, contract of sale for the land, and a parking management agreement are expected to be finalized in the coming weeks.

The deal comes as the council has for months delayed voting on a site for the $180 million arena – the 2012 voter-approved bond project that in February was proposed as an indoor-outdoor amphitheater with an 8,000-person capacity in Union Depot Downtown. Those talks included considering a public/private partnership to build and operate it.

City leaders have mostly remained silent about those plans, with one elected official proposing asking voters whether to cancel the Downtown venue altogether.

The city may have to go back to the drawing board for that facility, city Rep. Brian Kennedy told El Paso Matters. He said the council may have to ask itself what the “usefulness” of the arena is or again consider revamping the project’s design.

“I will say that one thing that I’ve always felt is that there’s different genres in facilities,” Kennedy said, citing the Don Haskins Center and the El Paso County Coliseum. “The amphitheater is its own genre.”

City Rep. Chris Canales, whose district includes the Union Depot area Downtown, said he’s also unsure about the arena’s future.

“I don’t necessarily know what direction it’s gonna go,” Canales said, adding that he believes having two similar venues of different scales could work. “I think there’s time now for the council to have the discussion amongst ourselves, but also with the public to see what people want.”

Residents have said they are disappointed and dissatisfied with the proposed changes to the Downtown venue, city Rep. Henry Rivera said.

“I agree with them,” he said. “It is important that we honor the voters’ will and we explore public private-partnership opportunities, the value and benefits, and what the risks are if it is not built.”

Developing the Cohen Entertainment District

Redeveloping the Cohen site was part of the larger quality of life plan, which included building the Downtown ballpark to host a triple-A baseball team and tearing down Cohen Stadium, where the El Paso Diablos double-A baseball team used to play. Cohen Stadium was demolished in 2019. The city-owned Camp Cohen water park opened at the site in 2021.

“This was envisioned back then for us to have this project and this capability and this amenity in the Northeast all of El Paso could enjoy irrespective of building the (multipurpose center) or not,” interim City Manager Cary Westin told El Paso Matters.

Concerns that building an amphitheater in Downtown would violate the city’s contract with MountainStar Sports arose in February when plans revealed an outdoor venue for the Union Depot site.

That’s because the city’s ballpark lease with MountainStar, which owns the El Paso Chihuahuas and operates Southwest University Park, includes a clause stating that the city cannot “develop, finance, facilitate or otherwise participate” in developing or approving any outdoor concert venue in Downtown that would compete with the ballpark.

Incentive Package for Notes Live 

The city partnership with Notes Live was approved in a 6 to 1 vote, with city Rep. Isabel Salcido not present at the meeting. City Rep. Cassandra Hernandez voted against it, saying she believes the deal lacks direct benefits to taxpayers and the community.

“We should demand agreements that not only promote economic growth but also provide tangible benefits to our community, such as support for local events and philanthropic contributions,” Hernandez said.

Developers and city officials say the venue – called the Sunset Amphitheater – will generate millions of dollars in economic impact for years to come.

From the time construction begins and throughout operations, the new amphitheater is estimated to generate $5.4 billion in economic activity and support more than 2,000 jobs, according to city documents.

Under a Chapter 380 agreement, which provides tax incentives and loans or grants to companies to promote economic development, the company will receive rebates on construction material sales taxes, sales and use taxes, and mixed beverage taxes on a decelerating schedule. The city will also waive permit fees.

Some council members who have questioned whether Chapter 380 agreements have had positive results voted in favor of this deal, including Northeast city Rep. Joe Molinar. As members of the city’s Finance and Oversight Audit Committee, he and Kennedy called for an audit and review of all existing 380 contracts.

Funds for the project will also come from Tax Increment Reinvestment Zone 11 established in 2018 under a master plan to revitalize the Cohen site. These zones capture tax increments of property within the zone to help fund public improvements to the zone itself.

Westin said the city hopes to eventually dissolve the TIRZ so that the property taxes generated within the zone can be added to the city’s general fund. The city estimates the venue will generate about $7.3 million a year in local tax revenue once it’s in operation.

“We looked at it as an investment,” Westin said. “It’s going to be built on the project being developed itself and I think that’s what’s key on this in terms of the rebates.”

Notes Live reached out to the city in late 2023 about expanding into the El Paso market, but serious discussions started in January, said Karina Brasgalla, interim director for the Economic and International Development Department.

“We really started in earnest talking about what it would look like to build an incentive package and what the needs (were) from the company side, but also what was the benefit to the city,” Brasgalla said in an interview with El Paso Matters.

JW Roth, founder, chairman, and CEO of Notes Live, on Tuesday said the El Paso location and market allows the company to expand its reach into Mexico.

“We identified El Paso before El Paso even knew we existed,” Roth said. “It fits in our routing. It fits the demographic of the customer and the fan that we’re chasing.”

Construction is expected to begin in August, with the opening scheduled for March 2026.

The amphitheater will host 40 national touring acts or concerts per year that will coincide with a corridor of other venues being built by the company in McKinney, Texas, and Tulsa, Oklahoma. The first Notes Live venue is set to open in Colorado Springs in August.