San Benito moves forward with $450M ‘epicenter’

Developer says project would create over 2,000 jobs

SAN BENITO — City officials have taken the first step to set aside 115 acres as the site for a proposed $450 million project to build a convention center and hotel whose developer says would create more than 2,000 jobs.

Earlier this week, city commissioners held a public hearing before going ahead with the first reading of an ordinance rezoning the northeast corner of FM 509 and Interstate 69 as the site for the project that would develop a sprawling “village” including two hotels, an entertainment center, a sports complex, restaurants and retail shops along with a five-acre “Crystal Lagoon.”

“We feel we can bring a lot to San Benito if San Benito wants it,” developer David C. Miles with Friendswood-based Western Spherical Developers told commissioners during Tuesday night’s meeting.

The company is planning to launch construction in May or June, he said.

During a public hearing, resident Joe Rodriguez, the only resident to speak out about the site’s proposed rezoning, told commissioners he supported the project.

“It sounded very good. It looked very good. It was a good presentation,” Mayor Rick Guerra said Wednesday, adding, “I’m still listening to the people.”

After Miles’ 90-minute presentation, Commissioner Rene Villafranco said officials have been planning the project for years.

“I think it’s been vetted,” Villafranco said.

City to offer tax breaks

The city’s biggest project in decades would create 1,013 jobs along with 1,077 jobs during the three-year construction period, developers said.

During his presentation, Miles told commissioners the so-called “epicenter” project would generate $100 million in retail sales, hotel and property tax revenue during a 20-year period for the city.

Amid questions, City Attorney Mark Sossi told commissioners the project posed the city no financial risk.

“He’s entirely at risk for the project,” Sossi said, referring to Miles.

Meanwhile, the city has offered tax breaks and building fee rebates on the condition the developer complies with a performance agreement.

“There is no up-front capital from the city,” City Manager Manuel De La Rosa told commissioners. “There will be incentives … if those performance metrics are met.”

“The city of San Benito and developer agree that it is the developer who is solely at risk in the financing, construction and development of the RGV Epicenter and that it is up to the developer to successfully complete RGV Epicenter phase one on the project site under the terms and conditions of this agreement to qualify for the economic incentive program,” the agreement states.

As part of the project, the developer would spend $11.2 million to build roadways and install utility lines.

Three-phase project

Miles said he planned to develop the project in three phases.

During a three-year construction period, the $180 million first phase would develop the convention center and a five-story, 142-room select-service hotel along with other features including an entertainment center, performance hall, restaurants, retail shops and office suites and a five-acre “Crystal Lagoon.”

Prospective tenants include Waypoint 2 Space, a Houston-based company training for commercial space flight, Miles said.

The project’s second and third phases, each funded through $120 million investments, would feature a sports arena and a “medical village,” Miles said.

Hotel occupancy tax funding

About three years ago, Tammy Huerta, daughter of the late Grammy-award winning singer Freddy Fender, helped spark talks between the developer and De La Rosa, Miles said.

Two House bills would help the developer fund costs through hotel occupancy tax revenue.

In 2019, state Sen. Eddie Lucio Jr. and state Rep. Eddie Lucio III helped push House Bills 4347 and 2199, which allow cities to spend hotel occupancy tax revenue generated through developments to fund construction of convention centers and sports and entertainment projects.

“It’s a tremendous opportunity to create revenue from a convention center,” Miles told commissioners, referring to the project.

Project raises questions

During the presentation, Guerra questioned the marketability of the proposed 23,000-square-foot convention center after the $16.7 million, 44,000-square-foot Harlingen Convention Center booked few events since opening nearly two years ago.

In response, Miles said an entertainment center would generate $15 million a year to help run the convention center, which the development firm would manage.

“We understand that convention centers can suck a city dry, so to speak,” Miles told Guerra. “That’s why we’ve included performances and the seating capacity for those performances and the family entertainment center.”

In response to Commissioner Pete Galvan’s questions, Miles said Western Spherical Developers was launched five years ago, working with family-owned businesses to develop “power centers” featuring national retail stores, restaurants and movie theaters.

Miles told Galvan the proposed epicenter was his biggest project.

“This is a very unique town center,” Miles, who said he has served as a consultant in the East Texas area, said. “Not a lot of companies have done projects to this scale.”

League City, La Porte projects

Western Spherical Developers projects have included a proposed League City sportsplex which hasn’t gotten off the ground.

“We have some gray area in the League City project but we are working through with the mayor and others to accommodate or relocate in an adjacent city,” Miles told commissioners.

In La Porte, an entertainment center project apparently didn’t get off the ground.


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