We’ve got some good, recognizable brands. Those are names that people know. They attract people from outside San Benito. Getting that name recognition in San Benito is a plus.
SAN BENITO — More than three years after opening, the city’s first resaca-side commercial development is expanding, opening its doors to draw restaurants, shops and office suites.
While making way for a new restaurant, Resaca Village is launching its second phase across three acres behind its plaza off Business 77, Ramiro Aleman, executive director of the city’s Economic Development Corporation, said.
“I see it growing,” he said. “I think it’s very successful.”
Now, La Hacienda, a new restaurant featuring Mexican food, is planning to open next to Cold Stone Creameries, Aleman said, adding he didn’t have a timetable for the opening expected “soon.”
After landing the new mom-and-pop restaurant, Resaca Village has filled 80 percent of its first phase spanning 12,600 square feet, leading Brownsville-based developer OrigoWorks to launch its second phase, in accordance with its contract, Aleman said.
EDC granting extensions
About six months after OrigoWorks opened its first phase in September 2019, the coronavirus pandemic slowed down the development.
Based on its contract, the developer was projecting to complete its second phase by December 2020, Aleman said.
Since then, the EDC has granted OrigoWorks extensions with which to comply with its contract, he said.
“The pandemic hit everyone and after that came supply chain issues. We understand that,” Aleman said. “We’re a partnership. We allowed them that extra time to build it out.”
Second phase opening 14 suites
As part of its second phase, OrigoWorks is planning to open 14 suites across 17,000 square feet of commercial development, Aleman said.
Like its first phase, the developer’s planning to draw tenants including restaurants, retail shops and offices, he said.
Under its contract, OrigoWorks was planning to invest $3.6 million to develop the project’s four phases spanning 30,000 square feet of commercial real estate, originally set for completion in December 2022.
As a result of the pandemic’s economic slowdown, the EDC’s extensions are allowing the developer to complete the project’s third phase by December 2024 and its fourth phase by December 2025, Aleman said.
Drawing out-of-town customers
From 2019 to 2022, the developer worked to fill Resaca Village’s $2.5 million first phase.
Anchored by a Texas Regional Bank branch, the development’s first phase includes Calacas Tacos and Beer, Frankie Flav’z Craft Burger House, Tropical Smoothies Café and Cold Stone Creameries.
Based on its contract, OrigoWorks’ landing of the new La Hacienda restaurant led it to fill 80 percent of the development, triggering the launch of its second phase, Aleman said.
Now, Resaca Village is drawing customers from across the area, pumping out-of-town dollars into the city, he said.
“Folks come from out of town specifically for Resaca Village,” he said. “We’ve got some good, recognizable brands. Those are names that people know. They attract people from outside San Benito. Getting that name recognition in San Benito is a plus.”
Background
For decades, city leaders dreamed of developing commercial property along the resaca.
Then in November 2018, the EDC leased the developer 9.8 acres.
As part of an incentive agreement, the developer is paying the EDC 10 percent of the development’s property taxes for 15 years.
After the 15-year period, the contract gives the developer the option of buying the property for $1.
