Despite protest, McAllen commission rezones park for Austin tech company

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A McAllen resident holds up a sign that reads “Save Green Jay! Save McAllen Disc Golf Park” during a public hearing at McAllen City Hall on Monday, July 24, 2023. (Dina Arévalo | [email protected])

McALLEN — Despite vehement protest from local nature lovers, disc golf players and nearby homeowners, the McAllen City Commission voted unanimously to rezone a beloved park on the city’s south side.

The decision now paves the way for the Austin technology company Zoho Corporation to build a tech campus at the site, known to residents as Green Jay Park or the McAllen Disc Golf Park.

“No one likes change. And with change comes fear, but it is time to fight that fear and go and do the next step for the community,” McAllen District 5 Commissioner Jose “Pepe” Cabeza de Vaca said just before the commission voted before a packed house at McAllen City Hall on Monday.

The commission’s vote came after nearly three hours of comments from people on both sides of the issue.

At stake were two requests submitted by the city’s planning department on behalf of Zoho.

The first involved rezoning just over 33 acres of land from “agricultural open space” to “commercial.”

It’s on this portion of the nearly 90-acre property that Zoho plans to build a technology campus on a “human scale” — a place that will hopefully employ hundreds of locals in high-paying jobs.

The second involved a request to rezone the remaining 63 acres to “light industrial,” where the company plans to install a robotics research and development center, according to Raju Vegesna, the company’s self-proclaimed “chief technology evangelist.”

But the company’s plans for locating to the Rio Grande Valley hit a snag after strong outcry from the community against the park’s development.

Local residents hold up signs protesting the rezoning of Green Jay Park during a public hearing at McAllen City Hall on Monday, July 24, 2023. (Dina Arévalo | [email protected])

The community pushback prompted the McAllen Planning and Zoning Commission to vote down the two rezoning requests during an equally well-attended meeting on July 12 where P&Z Chair Michael Fallek reminded residents that the city commission could overrule their decision.

And that they did during a standing-room-only meeting on Monday night.

Every commissioner present voted in favor of the two rezoning requests, save District 2 Commissioner Joaquín “J.J.” Zamora, who was absent.

HISTORIC OPPORTUNITY

Zoho’s supporters, including former McAllen Mayor Jim Darling and Hidalgo County Judge Richard F. Cortez, say the project will bring hundreds of high-paying jobs to a community that sorely needs them.

At the direction of Mayor Javier Villalobos, the public hearing began with comments from those in support of the project.

“We continue to have a very high migration — domestic migration rate — out of Hidalgo County because we’ve created the human capital, then you can’t match it with a job,” Cortez said.

Hidalgo County Judge Richard F. Cortez, far left, addresses the McAllen City Commission during a public hearing on Monday. Cortez spoke in favor of rezoning a popular park where an Austin tech company hopes to build a corporate campus. (Dina Arévalo | [email protected])
Former McAllen Mayor Jim Darling speaks in favor of rezoning Green Jay Park, opening a pathway for Austin tech company, Zoho Corporation, to build a technology campus at the site. Darling referred to the project as a historic opportunity. (Dina Arévalo | [email protected])

While local leaders have worked hard to provide better educational opportunities for Valley students, a gap remains in matching employment, which, in turn, prompts many young people to leave.

Earlier this year, the county judge founded a “prosperity task force” to help combat that longstanding brain drain. Attracting companies like Zoho would help do just that, the judge said.

Darling echoed those sentiments just a few moments later.

“The medical school has been a gamechanger. It’s historic. We’ve got another chance to make history by having this kind of company come that’s unique that provides jobs that we’re trying to train the kids for not this year, but for the 20 years to come,” Darling said.

WHY THE PARK?

But as the comments moved on to those opposed to the rezonings, one thing became abundantly clear — almost no one had any qualms with Zoho as a company or with its desire to locate within the city.

The overarching question from residents was why the city seemed so determined for the company to locate at Green Jay Park, which is considered a FEMA-designated flood hazard zone.

“First, I want to clarify that I’m not opposed to the economic and job opportunities of Zoho,” resident Delfina Villarreal said in Spanish.

Local residents hold up signs protesting the rezoning of Green Jay Park during a public hearing at McAllen City Hall on Monday, July 24, 2023. Despite the public pushback, the McAllen City Commission approved rezoning the park, where Zoho Corporation plans to develop. (Dina Arévalo | [email protected])

“No, I’m opposed to the construction in this location, and the ignoring of the community’s voices,” she said.

As dozens of locals rose to speak against the rezonings, their comments closely mirrored Villarreal’s.

Why there? Why not another part of the city, such as where McAllen is currently expanding to the north?

For the first time since late-March, when residents initially got wind of the proposal, they heard one possible reason why.

“If Zoho goes to the north, guess what district is gonna get a benefit?” Villalobos, the mayor, said after closing the public hearing.

“North of Freddy Gonzalez (Drive) is not McAllen ISD. Your kids, your educators, will not receive the benefits of millions and millions of tax dollars. If it goes north of Freddy Gonzalez, Edinburg Independent School District (sic) receives the benefit of what Zoho is trying to do here,” Villalobos said.

McAllen teen Lola Mejia, a member of an all-girl troop of the Boys Scouts of America, holds up a sign in protest of the rezoning of Green Jay Park during a public hearing at McAllen City Hall on Monday, July 25, 2023. (Dina Arévalo | [email protected])

For hours, the commission listened to comments largely against the rezoning requests. But it took them only a few minutes to overrule the P&Z board and approve the park’s rezoning.

“It is a hard decision, but it really is one of the best things that could happen to the city of McAllen,” District 4 Commissioner Rodolfo “Rudy” Castillo, in whose district the park lies, said on Tuesday.

“I think we’re gonna do good, and hopefully they’ll understand that during time,” he added a moment later.

ZOHO’S REACTION

Speaking after the decision, Vegesna said he was a little shocked that the vote had been unanimous.

Vegesna and another Zoho representative had stood quietly at the back of the legislative chamber as the community spoke.

“My feelings, frankly, are mixed,” Vegesna said.

Raju Vegesna, center, the self-proclaimed “technology evangelist” for Zoho Corporation, pleads the company’s case during a McAllen Planning and Zoning Commission meeting at McAllen City Hall on Wednesday, July 12, 2023. (Dina Arévalo | [email protected])

“I resonate with the community — and if I’m part of it, I’ll probably be one of them talking. On the other hand, I also see the perspective from the city managers wanting to see the city evolve,” he added.

During a town hall last month, Vegesna delivered a detailed presentation of Zoho’s plans for the site, which includes a low-rise, hacienda style campus ensconced in an “ecological paradise” of native plants, a fruit orchard and other green space.

Corporate social responsibility is one of the company’s core philosophies. As such, seeing the strong community pushback gave Vegesna and Zoho pause, he said.

“It’s not easy for the community. And also, I can guarantee, it’s not easy for me and the Zoho team. We are the last team that, basically, wants to hurt any community,” Vegesna said.

In light of the pushback, Zoho was willing to consider other potential locations.

“We were open, but at the end of the day, the commission decided based on where they want development to be,” Vegesna said.

Raju Vegesna, left, chief technology evangelist for Zoho Corporation, listens as McAllen residents speak about the rezoning of a popular park where Zoho hopes to build a technology campus. On Monday, July 24, the McAllen City Commission approved the rezoning request, paving the way for Zoho’s project to move forward. (Dina Arévalo | [email protected])

As for another community concern — that once Zoho privatizes the land, it will no longer be accessible for public enjoyment — Vegesna said keeping a portion of the property publicly accessible is still something on the table.

It depends on how much mitigation FEMA will require of the company — if the federal agency even approves of the development plans.

TECH FRONTIER

But if Zoho can get FEMA’s go-ahead, they have big plans for the site.

While Vegesna’s June 30 presentation contained lots of detail about the proposed tech campus, there was little mention of what the company has planned for the remaining 63 acres now zoned for light industrial use.

Vegesna expanded on that Monday evening, saying the company has already begun making inroads with local colleges — in particular, South Texas College — with an eye on high-tech partnerships.

Raju Vegesna, chief technology evangelist for tech company, Zoho Corporation, talks about a plan to potentially develop a technology campus at the site of the McAllen Disc Golf Park during a townhall at the Palm View Community Center on Friday, June 30, 2023. (Dina Arévalo | [email protected])

“The advanced technologies, we’re planning to experiment with some of those,” Vegesna said, referring to robotics and robotics animation research and development.

“As manufacturing comes back here, there is going to be a need for robotic engineering and all of these advanced things,” he added a moment later.

MISTRUST LINGERS

For as much as residents expressed their general support of Zoho, Monday night’s public hearing also illustrated a lingering mistrust of McAllen public officials.

Thus far, officials have declined to speak on how the land will be conveyed to Zoho, or if the city is offering the company any economic incentives for locating here.

“Are you going to be selling the land to them or giving it to them? Apparently, again, we can’t get an answer,” resident Joe Hinojosa, said during the public hearing.

Hinojosa was one of several members of Valley Interfaith, a nonpartisan political organizing group, to speak against the rezoning.

“We can give you a copy of that transaction when it’s done,” McAllen City Manager Roel “Roy” Rodriguez replied.

“It’ll be too late,” Hinojosa said.

Earlier in the hearing, a number of McAllen’s business community bigwigs spoke in favor of the project, including members of the Rio Grande Valley Partnership, the McAllen Chamber of Commerce and the McAllen Economic Development Corporation.

But Vegesna said Zoho is neither asking for, nor accepting, economic incentives.

“We don’t do that. As a company, we don’t do tax incentives,” Vegesna said.

“We have to be an asset to the community, not a liability. … That’s the wrong moral. We do not do that. We do not believe in it,” he said.


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Fate of beloved McAllen park still unclear after contentious town hall

Austin tech company’s request to rezone popular McAllen park hits snag after public protest