Investment dollars flow to city’s medical district

HARLINGEN — Hospitals and their networks of supporting businesses are emerging nationwide as critical and profitable engines of economic development, and Harlingen is lucky not to be an exception.

The medical district along Ed Carey Drive and South 77 Sunshine Strip is establishing itself as one of the fastest-growing retail and business sections of the city.

Within roughly the past 24 months, nearly $50 million in investment dollars has flowed into the area along South 77 Sunshine Strip and on and near Ed Carey Drive. All signs indicate things aren’t slowing down.

“The medical district of Harlingen has always been a prime location for restaurants and retail due to its proximity to both hospitals and the workforce in the area, not to mention the surrounding residences,” said commercial real estate broker Cindy Hopkins (CCIM).

“That’s exactly what we call the medical district, the intersection of Ed Carey and South 77 Sunshine Strip,” said Connie de la Garza, the former mayor and real estate broker with Bahnman Realty.

“That’s a hot area because of the employment in the area and people coming and going all the time,” he added. “I foresee that really taking off. I’ve got listed the corner of Hale and Camelot, the northwest corner, and I probably get a call a week from developers from out of the Valley.”

De la Garza added that he is currently well along in negotiations to help develop a 60-unit apartment project on 3.73 acres on Doctors’ Memorial Drive just off South 77 Sunshine Strip. He said the final shape of the $10 million project will become clearer this summer.

Health care stars

The medical district area, like in so many cities, has become a major economic driver not just for Harlingen but for the region. Valley Baptist Medical Center is located there, as are Harlingen Medical Center, the VA Health Care Clinic at Harlingen and the Harlingen VA Outpatient Clinic. Newcomer Palms Behavioral Health, a $13 million psychiatric facility with 94 beds, also is a key component of the district.

The two biggest hospitals, Valley Baptist Medical Center and Harlingen Medical Center, have invested $8 million and $8.5 million respectively in new construction and renovations over the roughly two-year period.

Soon the UTRGV School of Medicine’s Institute of Neurosciences will break ground in the area at a 35-acre site just off South 77 Sunshine Strip. The medical school received $15 million as a gift from the Valley Baptist Legacy Foundation and the city set aside that land for UTRGV.

“The only thing I can tell you is that about eight years ago, we set aside about 40 acres for UTRGV,” said Gabe Gonzalez, assistant city manager. “And that’s off of Haine Drive. So we have that available specifically for the University of Texas, and that’s pretty much all I can tell you at this point about that particular project.

“Everything has been in executive session,” Gonzalez added.

It is believed UTRGV intends to match some or all of the Valley Baptist Legacy Foundation funding to create a world-class, 50,000-square-foot medical facility with a total investment that could reach $30 million.

Supporting roles

Two major new hotels are coming, an $8.5 million Fairfield Inn and Suites on I-69/U.S. 77/83 between Ed Carey Drive and New Hampshire Street and Homewood Suites by Hilton, a $4 million project, at 1 Sesame Drive just off Ed Carey.

Panda Express recently announced it would spend $1.2 million to build a new restaurant on 77 South Sunshine Strip, and almost immediately, just across the street, Raising Cane’s Chicken Fingers filed plans with the state for a new $1.5 million restaurant.

Along South 77 Sunshine Strip, Chick-fil-A came in about two years ago, spending $850,000 on a new restaurant. Also in that $1 million Sun Valley Square development is Jimmy John’s Gourmet Sandwich shop ($172,000) and an AT&T store.

The nearby McDonald’s restaurant has filed plans with the state for a $350,000 renovation, and the CVS Pharmacy at Ed Carey and South 77 Sunshine Strip will spend $120,000 on its own renovation.

On Ed Carey Drive to the south, U-Haul has located a facility ($900,000), Arby’s has a new restaurant ($190,000), Harbor Freight has moved in ($443,700), CSL Plasma located a facility ($1.2 million) and the Tru Fit health club has broken ground on a new facility priced at $2 million.

Taco Bell also completed a $300,000 renovation at its restaurant at the corner of Ed Carey Drive and South 77 Sunshine Strip.

“I’ve been asked to speak to graduates of the leadership program that the Chamber puts on, and I remember about six years ago I spoke to a class and I told them, ‘You know what? Look at Harlingen right now because in the next 10 to 15 years, you’re not going to recognize it because of the growth,’” Gonzalez said.

“That’s something that I think is going to happen,” he added. “We’re going to get a lot more growth and a lot more retail.”