Commercial and industrial investments in the Mid-Valley remain strong, despite the continuing coronavirus pandemic. And nowhere is that more clear than Donna and Weslaco, where commitments from big box retailers are beginning to bear fruit.
Drivers along Interstate 2 may have noticed one of the latest examples of hard work by Donna officials and local developers in a shopping plaza that has gone up just north of the freeway along Salinas Boulevard.
The development, known as the Shops at 493, is slated to open next month after what Donna Mayor Rick Morales described as a six-year-long venture to bring the plaza to the city.
“It’s something that’s long overdue in Donna,” the mayor said. “And I’m just excited that things are finally developing in Donna along the Donna corridor there,” he said.
Burlington Coats was among the first to sign on and has served as an anchor site that eventually attracted the attention of several other national chains, including Ross Dress for Less, Five Below, and DD’s Discounts.
But the initial negotiations with Burlington Coats dried up not long after they started six years ago, the mayor said.
“About six years ago is when they first started looking into Donna, and then everything just went stale. And for the longest time, nothing was moving,” Morales said.
“We had to meet with the developer and Carlos (Yerena) and I did, and we had to make some tough decisions,” he said, referring to Donna City Manager Carlos Yerena.
Eventually, Morales said the city was able to “revive” negotiations with the clothing retailer, “and we were able to put the deal together with the developer to bring these stores in,” Morales said.
Donna officials expect commercial development in that area of the city — on Salinas Boulevard along the north side frontage road — to continue in the following months.
The city first began to invest in that region of town as a commercial hub with the opening of a Walmart Supercenter on the east side of Salinas Boulevard in 2015, along with eateries such as Wing Stop and Jack in the Box.
Several other retailers are expected to occupy the remaining spaces in the Shops plaza, though Morales was reluctant to say exactly which ones, citing confidentiality agreements.
“We have some national restaurants that are gonna be moving to Donna real soon, and we’ll be making some major announcements in the next 90 to 120 days,” Morales said.
The mayor did hint that the city has been in negotiations with a grocery store, as well.
But state records show that Petsmart, Panda Express, Dollar Tree and Rack Room Shoes have all applied for accessibility inspections at the Shops at 493 location.
Altogether, the retailers represent a nearly $10 million construction investment in Donna, according to state records.
Big box retailers are also making investment commitments next door in Weslaco.
The latest to do so is Hobby Lobby, which submitted permit applications with the city, confirmed Steven M. Valdez, executive director of the Economic Development Corporation of Weslaco (EDC).
But news of Hobby Lobby coming to “the city on the grow” came as somewhat of a surprise to Valdez, who said he and others at the EDC first heard of it thanks to a post on a Facebook page geared toward announcing upcoming commercial projects throughout the Rio Grande Valley.
The Facebook post came after Valdez and the EDC had been trying to court the craft store for approximately two years, he said.
“In the process and in our efforts in trying to recruit them, a lot of times we would get either no response, or a response that would suggest that they’re not interested,” Valdez said of the EDC’s attempts to communicate with Hobby Lobby.
But after seeing the Facebook post, Valdez began to look for confirmation of the news, including by making inquiries at Weslaco’s permitting office.
“The other two ways that we are able to get accurate responses is from our permitting office, and so, yes, there is a permit in place for that particular building submitted to the permitting department for construction,” Valdez said.
According to that office, and to state records, Hobby Lobby plans to build in the busy shopping plaza at the corner of Westgate Drive and Frontage Road.
State records show the company is investing nearly $2.1 million to construct a 56,000-square-foot store by this fall.
It remains unclear precisely where the store will be constructed, but the existing plaza is already well established with stores such as Ross and Rainbow — both clothing stores — as well as Planet Fitness and several eateries, including Buffalo Wild Wings, Popeye’s Chicken and Starbucks.
For those familiar with the long lines of cars that can often be seen wrapping around that Starbucks, however, there is even more good news.
The Seattle-based coffee giant is also among the many companies investing in the Mid-Valley and plans to open a second Weslaco location at a different shopping center across town.
Like Donna, Weslaco began heavily investing in retail spaces on the north side of the expressway over the last five to 10 years.
The land between Texas and Pike Boulevard has been developed to include a Lowe’s home improvement store, Petco, T.J. Maxx and Academy Sports. Now, Starbucks plans to open in that area as soon as this May, according to state records.
Valdez said the city’s industrial sector is showing healthy growth, as well, with the EDC currently in negotiations with at least three firms that could bring as many as 500 high paying jobs to Weslaco’s industrial park.
“I think the momentum for growth in the city of Weslaco is very exciting. I think people are starting to catch on,” Valdez said.
Valdez and his team at the EDC work diligently to court development of all types to Weslaco, whether that be commercial, industrial or residential.
Indeed, during a December bus tour meant to highlight Weslaco’s potential to investors, Valdez said the EDC is willing to grant up to 10% in economic incentives for developers who choose to locate their projects in the city.
But the EDC offers more than just monetary help, he said.
“Working with the EDC may mean that we can help them with the permitting process … we can help them find a location, we can help them set up job fairs so they can hire people,” Valdez said.
Donna tries its best to lure developers, as well, though its coffers are not nearly as deep as its larger neighbor, Morales said.
To that end, the city has different ways of sweetening the deal, including through offering economic incentive agreements, known as Chapter 380 agreements, after the statute governing such agreements.
The statute allows municipalities to offer various incentives to developers, including grants and loans, or through in-kind incentives.
With the Shops at 493, for instance, the city agreed to bear the labor costs of putting in the roads and infrastructure needed to access the plaza.
Donna has also agreed to give the retailers back a certain percentage of the sales tax revenues they generate over the next 10 years.
“It’s a great tool that the state legislature has given small cities in Texas to use these 380 agreements to bring in those national chains to our cities. And it’s essential to make those deals work,” Morales said.
