The Medical Center of the Americas will receive $3 million from the city of El Paso during the next few months toward development of the Biomedical Tech Center.

On June 14, 2011, City Council voted to dedicate 75 percent of franchise fees the city receives from El Paso Electric for development of MCA. The remaining 25 percent of franchise fees received from EPE will be used to support technology-based business or as a "deal-closing fund."

In the next three years, MCA will receive approximately $8.8 million. The first two payments will be sent out April 1 ($2 million) and Aug. 31 ($1 million). These funds are part of an agreement between the city and MCA.

Starting in fiscal year 2013 until the agreement's terms end in 2030, the city will pay MCA 75 percent of the money received from the franchise agreement.

Funds will be used to develop a biomedical area to go along with the Paul L. Foster School of Medicine, University Medical Center, the El Paso Children's Hospital (to be opened Tuesday), the Texas Tech University Health Science Center and other facilities.

In addition, the MCA Foundation now has the power to acquire land itself -- a more cost-effective initiative, according to city officials.

Last week, City Council waived the impact fund policy requirement restricting use of funds for land acquisition in the MCA area to just the city.

"This allows the MCA to do land acquisitions," said Mathew McElroy, deputy director of the city's development services.

With the waiver, the MCA Foundation can acquire land necessary for construction of the project, McElroy said

Planning and design for the Biomedical Tech Center is set to be finished within the 2013 fiscal year, he said.

Although the initial step will be to hire a director of impact fund projects, McElroy said this person will oversee all MCA projects.

As part of this agreement, MCA is required to demonstrate progress in the project.

Rodolfo "Rudy" Mata, chairman of the Medical Center of the Americas Foundation board, said it is MCA's intention to be transparent with its plans and accounting of the impact funds under use.

Mata said the MCA's goal is not only to promote growth within its campus but in the community's economic development.

"We want to create a robust biotech industry that would maximize the region's research development and commercialization potential focusing on the region's special health needs and demographics," he said.

Emma Schwartz, president of the MCA Foundation, thanked the city for its support and visionary plan.

"We are working with the best professionals to make sure that we deliver the best product to you," Schwartz told council members last week.

As part of the impact fund policy, the University of Texas at El Paso will receive a portion of that 25 percent of franchise fees from the city over the next six years. This will help UTEP establish a Regional Cyber and Energy Security (RCES) Center to test and certify alternative energy products and systems.

The city will pay UTEP more than $3.4 million during a six-year contract.

The center will be a place to develop methods to secure commercial and energy systems in West Texas and Southern New Mexico against cyber-attacks, equipment failures and natural threats, said Ralph Martinez, director of energy initiatives at UTEP.

Utility companies do not invest enough resources into cyber-security, he said.

"Without the proper protection, system failure could create havoc in a community when you think of medical, business, manufacturing and education," Martinez said. "A significant disruption could endanger the population and cost billions of dollars."

The center is expected to create 85 jobs over the next six years.

Aileen B. Flores may be reached at aflores@elpasotimes.com; 546-6362.