A gavel and handcuffs on wooden table background (Adobe Stock)
A 27-year-old Alamo resident is facing 15 years in federal prison after pleading guilty to illegally possessing two rifles, according to a U.S. Attorney’s Office news release.
Hector Tellez-Hernandez was arrested after authorities, including the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Alamo Police Department, conducted a search at his home after learning he allegedly had narcotics in his home.
During their search on April 5, authorities had “found two rifles and body armor in a bedroom as well as 16 grams of cocaine,” according to the release.
Tellez-Hernandez, who had been previously convicted of human smuggling, was prohibited from possessing firearms or ammunition, according to the release.
He will remain in custody pending his hearing on Oct. 16 where he will be sentenced by Chief U.S. District Judge Randy Crane. Tellez-Hernandez currently faces up to 15 years in federal prison and a possible $250,000 maximum fine.
Los Fresnos Falcon pitcher Joaquin Cavazos (12) pitches the ball Tuesday night against San Benito Greyhounds at Los Fresnos High School baseball field. (Miguel Roberts/The Brownsville Herald)
TSTC Electrical Lineworker and Management Technology students Angel Hernandez (left) and Santana Sanchez play basketball at TSTC’s Wellness and Sports Center. (Courtesy: Texas State Technical College/TSTC)
TSTC Electrical Lineworker and Management Technology students Angel Hernandez (left) and Santana Sanchez play basketball at TSTC’s Wellness and Sports Center. (Courtesy: Texas State Technical College/TSTC)
HARLINGEN — National Wellness Month, observed each August, is a good time to remember that getting into healthy routines such as exercise can help with staying physically, emotionally and mentally fit.
The Wellness and Sports Center at Texas State Technical College’s Harlingen campus offers a variety of wellness resources.
“Our students, staff and faculty have access to a gym, cardiovascular equipment, racquetball, a training room, a weight room and workout classes that are held in the morning,” said Rodolfo Garza, TSTC’s activity coordinator of Residence Life and Engagement.
Angel Hernandez is in his third semester of studying for a certificate of completion in Electrical Lineworker and Management Technology. The Edinburg resident suggested that students create a workout routine that will benefit them.
“It’s important to focus on our strength and conditioning while we’re busy with our classes,” Hernandez said. “I stretch, visit the weight room, and play basketball with my classmates at the gym.”
Elizabeth Pearcy is in her first semester of studying for an Associate of Applied Science degree in Auto Collision and Management Technology – Repair Specialization.
“I make time for myself three times per week by using the weight room, doing cardio exercises and using a StairMaster,” she said.
Garza said relieving stress and relaxing are two reasons why students utilize the college’s Wellness and Sports Center.
“The exercises and activities students do build their endorphins,” he said. “That increases their focus in class, which leads to better productivity.”
The Wellness and Sports Center at Texas State Technical College’s Harlingen campus offers a variety of wellness resources. (Courtesy: Texas State Technical College/TSTC)
Adrienne Reyes, TSTC’s LVN to RN Transition Nursing Program team lead, said a daily routine of exercise can improve more than just physical health.
“Physical activity sharpens brain function, concentration, memory, creativity and academic performance,” she said.
Currently the gym at the TSTC Wellness and Sports Center is available for TSTC students, staff and faculty on Monday through Thursday from 11 a.m. to 7 p.m. Beginning with the fall semester, it will also be open on Fridays from 11 a.m. to 3 p.m.
Registration for TSTC’s fall semester is underway. For more information, visit tstc.edu.
Bay barnacles, a species of acorn barnacles, are seen on a log. (Courtesy: Anita Westervelt)
Barnacles are everywhere: bottom of boats, dock posts and pilings, buoys, shells, sea beans, driftwood, flotsam and other drift, even plastic trash. Nothing is safe from barnacles if it is solid and submerged in the sea.
The two most common types of barnacles that arrive on our Gulf shores, as passengers attached to various and sundry drift, are acorn and goose barnacles.
Acorn Barnacles are compact, typically cone shaped and symmetrical and often described as looking like tiny volcanoes. They attach their shells directly to a surface.
Acorn barnacles are pictured on a beached utility-like pole. (Courtesy: Anita Westervelt)
Goose Barnacles, also called stalked barnacles or gooseneck barnacles, have a long stalk, called a peduncle, the base of which is attached to the substratum. The main part of the body, the capitulum, is poised at the other end. The capitulum is enclosed in a toughened carapace, similar to that of acorn barnacles. The peduncle is muscular and capable of movement. Stalked barnacles are common on floating objects out at sea.
Barnacles are arthropods of the subclass Cirripedia in the subphylum Crustacea. They are related to lobsters, crabs and shrimp. They look like tiny shrimp in their larval stage, where they swim as members of zooplankton in the ocean.
Barnacles have two distinct larval stages. The first larval stage, called the nauplius, spends its time floating wherever the wind, waves, currents, and tides may take it, while it eats and molts. There are extensions on their head that help with their movement and they usually have one eye. This lasts for about two weeks until the second stage is reached.
The second larval stage is called the cyprid, where the nauplius metamorphosizes into a non-feeding organism which swims more strongly than nauplius. Cyprid has a mission: to find a good surface on which to settle and cement itself. It attaches itself by its antennas, secreting a fast-curing cement that is among the most powerful natural glues known. The barnacles’ secretion has been noted to have a tensile strength of 5,000 pounds per square inch and an adhesive strength of 22-60 pounds per square inch, according to an online article in the May-December 2017, issue of “The Coast Guard Proceedings, Journal of Safety & Security at Sea.”
Once attached, adult barnacles are sessile, meaning they cannot move.
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A washed ashore polymer shoe is adorned with goose barnacles. (Courtesy: Anita Westervelt)
Goose barnacles on driftwood. (Courtesy: Anita Westervelt)
Goose barnacles on plastic wrackline trash. (Courtesy: Anita Westervelt)
Bay barnacles, a species of acorn barnacles, are seen on a log. (Courtesy: Anita Westervelt)
Acorn barnacles are pictured on a beached utility-like pole. (Courtesy: Anita Westervelt)
Once barnacles go from their non-feeding larvae stage and cement themselves to their forever home, they eat using their six pairs of feather-like feet called cirri by rapidly extending and retracting them through the opening at the top of the barnacle; they comb the water for microscopic organisms.
Barnacles are omnivorous. They eat both plant and animal: plankton, phytoplankton (plants) and zooplankton (animals), but they only eat what swims and floats within reach of their cirri — and that’s plenty — barnacles don’t generally starve. They often settle in areas where other species of barnacles already exist because it is an area where there is plenty of food.
Barnacles have fascinated scientists, naturalists, artists, writers, photographers and beachcombers for centuries. An excellent identification guide to Texas marine organisms is at this link: https://txmarspecies.tamug.edu.
Potted indoor plants on a windowsill (Adobe Stock)
Incorporating plants into your home can beautify your space and create a positive environment. A variety of indoor plants thrive year-round, and can provide color in your home.
Charlie Hall, Ph.D., professor and Ellison Chair in International Floriculture in the Texas A&M Department of Horticultural Sciences, has conducted research on the health benefits of plants and nature. Hall said plants can improve your quality of life and should be perceived as a necessity due to the range of positive physical and mental impacts plants have on humans.
How plants impact the mind and body
Adding plants in your home will not only create a beautiful space to avoid the cold elements, but surrounding yourself with plants can provide positive stimulation. Hall said this positive effect can be compared to the happy emotions one feels when interacting with a dog or cat. These actions trigger the same responses in our brains when we are around plants.
“Biophilia is the innate love of living things, both animals and plants,” Hall said. “There is a positive impact on the brain whenever there is a number of biophilic stimuli, such as plants, in the area.”
Greenery can make a positive influence
Shorter days and colder temperatures keep people inside their homes for long periods of time, and many people feel as if their moods are affected by the winter season. Plants can help boost our mood, Hall said.
Hall said nature and being around house plants can help lower cortisol, the stress hormone. He has also published articles reviewing the benefits of plants, including enhanced memory retention, reduced effects of dementia and greater life satisfaction.
“It’s amazing that just having plants in your home can have such a measurable impact on stress reduction,” Hall said. “Being in nature, going for walks in a park or going camping in a national forest provides an increased level of this impact, but we know that we can help reduce stress daily by bringing nature to us with plants in our home.”
Low-maintenance house plants
Whether you’re a beginner to caring for indoor plants or you struggle to keep plants alive in the winter, there are plenty of good options for low-maintenance plants that will brighten up your space.
Succulents are a common low-maintenance plant that can sustain a variety of temperatures and can survive well indoors if kept away from drafts in a brighter area of your home. Philodendron can also survive the cold weather when brought indoors, with an ideal temperature of 75-85 degrees.
Hall said pothos and dracaenas are go-to low maintenance houseplants and added that poinsettias and Easter lilies are also good seasonal choices for the winter. To enhance your outdoor space, you can plant cool-season annuals.
“All of these plants are adept at creating these responses, and they are relatively easy to take care of,” Hall said.
When finding the right spot for your plants around the house, its best to keep them away from any drafty areas. Placing a plant near a heating vent can dry the plant out and shorten the plant’s life.
Hall said even if you find that you struggle to keep plants alive, don’t let that deter you from purchasing a house plant. Plants can still provide a range of benefits, no matter how long they last.
The scene of a fatal crash Wednesday, Jan. 25, 2023, near FM 1015 and FM 1925 in Edcouch. (Joel Martinez | [email protected])Stephanie Aracely Diaz
A 28-year-old Progreso woman who drove into a semi, killing her three passengers, has been sentenced to 14 years in prison with credit for a little more than a year that she spent in the Hidalgo County Adult Detention Center.
Stephanie Aracely Diaz pleaded guilty on Wednesday to three counts of intoxication manslaughter for the deaths of Elias Galaves, 26, Gerardo Ibarra, 42, and Axel Jimenez, 22, all of Progreso.
The deadly crash happened on Jan. 25, 2023 at approximately 2:04 p.m.
The Texas Department of Public Safety at the time said a preliminary investigation revealed that a Peterbilt truck tractor-trailer driven by a man was going west, southwest on FM 1015 while a white Chevrolet Silverado, driven by Diaz, was traveling east, northeast on FM 1015.
“The driver of the Chevrolet failed to yield the right of way and turned left in front of the Peterbilt,” DPS previously said in a news release.
Diaz was taken to the hospital, but Galaves, Ibarra and Jimenez died at the scene.
The driver of the Peterbilt wasn’t injured, but was taken to the local hospital per his company’s procedures, the news release had said.
According to the indictment against Diaz, she was driving the Silverado while intoxicated with either “a controlled substance, a drug, a dangerous drug or a combination of two or more substances.”
Land near the border wall in La Grulla is seen on Wednesday, July 24, 2024. (Delcia Lopez | [email protected])
McALLEN — A Starr County man is suing the federal government over land it wants to take from him as part of ongoing efforts to build more border wall — land the government took from him once before, then gave back.
The federal government, via U.S. Customs and Border Protection, took nearly 38 acres of Florentino Luera’s land in Chapeño in 2020 as part of former President Donald Trump’s plan to wall off the nation’s southern border.
Just one year later — and only a few months after President Joe Biden took office — the government agreed to revest the land — or give it back — to Luera and notified him of such on Oct. 12, 2021.
Biden had campaigned on a promise that he would not build “another foot” of border wall.
Within hours of taking the oath of office, the president signed his first executive order overturning Trump’s border wall building mandate. The executive order also mandated that the congressionally appropriated funds meant to bankroll the construction be put to other uses.
The revestment of Luera’s property seemed to further line up with Biden’s campaign promise. But, the dynamic has changed.
In the years since inauguration day, the government has once again begun filing land condemnation suits.
Land near the border wall in La Grulla is seen on Wednesday, July 24, 2024. (Delcia Lopez | [email protected])
The most recent filings came last month, when the feds issued notice that they intended to seize more than 1,034 acres across Starr County, including some 34.38 acres that belong to Luera.
The government intends to use the land “to conduct surveying, testing, and other investigatory work needed in consideration of any plan for proposed construction of border barrier,” according to a copy of the condemnation suit dated July 1.
The suit further states that the government plans to pay for taking the land and any subsequent work on it via a December 2020 congressional appropriations bill.
But it’s land the government already agreed to give back to him, Luera argues in a July 26 lawsuit he filed in response to the government’s renewed efforts to seize his land.
Further, the government has been trespassing with neither his express permission nor a court order. And now, the government is claiming it actually owns at least a portion of the land it is again seeking to condemn, Luera’s lawsuit further states.
That’s because the government is relying on outdated and “inaccurate” maps of Starr County despite having access to more recent maps of the property’s boundaries, the lawsuit claims.
Those boundaries were identified during the government’s first attempt to take Luera’s land. At the time, Luera had sought — and was granted — a court order declaring him the sole owner of the Chapeño tract.
A ranch located off Chopeno Road is seen in Falcon Heights on Wednesday, July 24, 2024. (Delcia Lopez | [email protected])
As part of that process, the court also recognized a more up-to-date “metes and bounds survey” conducted by federal surveyors in 2019.
Then, on Aug. 9, 2023 — almost a year ago to the day — CBP reached out to Leura notifying him that they again hoped to build a section of border wall on his land.
The following month, on Sept. 20 and Sept. 26, Luera’s attorneys responded by asking for more information on “how, and when officials would be entering Mr. Luera’s property,” the lawsuit states.
But the government never responded to those questions. Instead, on Oct. 24, 2023, the DOJ notified Luera of its intent to file the condemnation suit.
Luera claims he has caught government officials trespassing on his land at least two times afterward — the first on Nov. 2, 2023, and again on Feb. 7 of this year.
Both Luera’s lawsuit and the government’s attempt to seize his land remain in the preliminary stages of what will likely be lengthy litigation.
But the questions over what will happen to Luera’s nearly 35 acres aren’t the only ones when it comes to the future of the border wall.
A Catholic cemetery is seen in Salineño on Wednesday, July 24, 2024. (Delcia Lopez | [email protected])
Between the assistant U.S. attorneys assigned to the condemnation suit and Luera’s attorneys at Texas RioGrande Legal Aid, there’s been some confusion over where the funding for the proposed border wall construction will come from.
At one point, Luera’s attorney, Peter McGraw, appears to think the funding is coming from either 2018 or 2019 congressional appropriations bills, which he argues cannot be used.
“I don’t think any of this construction or surveying is authorized using FY2019 funds,” McGraw wrote in a September 2023 email to opposing counsel with the Justice Department.
Exhibits included as part of the condemnation suit last month, however, cite funding approved by Congress in 2020.
But it’s not just Luera’s attorneys who are concerned over where the money is coming from or how it’s being used.
The state of Texas has also become deeply involved in the border wall issue.
In 2021, Texas Attorney General Ken Paxton sued the federal government in an attempt to force it to apply the $1.4 billion approved during the Trump administration toward the purpose for which it was appropriated.
The border wall in La Grulla is seen on Wednesday, July 24, 2024. (Delcia Lopez | [email protected])
This week, Paxton declared victory in the yearslong legal battle.
“Earlier this year, a federal district court granted a permanent injunction to end the Administration’s effort to illegally defund the border wall,” the attorney general’s office stated in a news release on Thursday.
The injunction became permanent this week after the federal government allowed the deadline for appeal to lapse.
“This is a final victory against Biden’s attempt to defund the border wall. His Administration illegally sought to prevent construction of the border wall and illegally attempted to repurpose the money,” Paxton stated.
The judge issued his injunction on March 8.
Two months later, the DOJ began filing the latest spate of land condemnation suits, including one for 100 acres in Webb County.
The government cites a March 15, 2022 appropriations bill as the funding source for the $1.5 million in “just compensation” it has set aside to seize the land, where it plans to build a “Border Patrol Joint Processing Center,” according to a court document dated May 24.
Harlingen High Lady Cardinals junior Rosa Zapata reacts after taking a penalty during practice in this March 2022 photo. (Valley Morning Star Photo)
HARLINGEN — There’s the rushing and the colliding and the crashing beneath the bright lights and the cheering crowds.
And sometimes, inevitably, the sharp pain of a torn ACL or a sprained ankle or a dislocated shoulder.
The school year is now upon us, and young athletes everywhere are gearing up for the fall football season.
“Monday will be our first official full day of practice,” said Benjamin Garcia, an athletic trainer at Harlingen High School South.
“Right now it’s a strength and conditioning that UIL allows us to do,” he said.
That strength and conditioning is exactly what young athletes must do to reduce the occurrence of injuries, said Heather Smith, nurse practitioner for Valley Baptist Orthopedics and Sports Medicine.
“The best way to prevent an on-season injury is to condition during off-season,” said Smith, one of the team doctors for the Harlingen, Lyford and Raymondville school districts.
“Don’t wait until football season begins and especially these middle schoolers that have two more weeks before school starts, now is the time to start exercising,” Smith said. “Go for the runs. Do those basic exercises that they’ve learned in PE since they were little. Get physically active now so that when they start their sports in seventh and eighth grade that they are already conditioned and not starting from scratch.”
Garcia and his fellow athletic trainer Marissa Martinez said they see a variety of injuries ranging from scrapes and cuts to concussions and dislocated shoulders and they’re ready. Both trainers work with male and female athletes in school sports throughout the year, including not only football but also basketball, volleyball, baseball, and track and field.
“You name it, we see it,” Martinez said.
There’s no set pattern of how many of what kind of sports injuries occur with school athletic programs, it just seems sort of random, Martinez and Garcia both said.
“There seems to be a trend of, one season it will be a lot of concussions, one season there will be … it just kind of varies by season and by sport and by gender and team,” Martinez said. “We see a lot of everything, we see a lot of kids, we see a lot of athletes, so I couldn’t give one injury that we get the most.”
One of the most-oft talked about injuries is of course a torn ACL. More specifically, it is a tear or sprain in the tissue that connects the thigh bone to the knee. It is caused by a sharp twisting motion and is characterized by an audible snap followed by sharp pain and swelling.
“There’s research that we can strengthen certain muscle groups and do our mobility,” Martinez said. “We have a great strengthening staff, we have a great coaching staff. They do their warmups, they do everything they need to in the weight room.”
Smith emphasized the importance of not overdoing their workouts or their playing.
“These coaches do a great job researching what’s best for strength and conditioning,” she said. “When the kids tend to workout outside of school or play on multiple sports at the same time or multiple teams at the same time, that tends to lead to overuse injuries.”
A better plan is to focus on one sport at a time and take 30 days of no competition. That gives the body time to heal and recharge and that can reduce sports injuries.
A view of Buena Vida Neighborhood on Thursday, Aug. 1, 2024, in downtown Brownsville. (Miguel Roberts/The Brownsville Herald)
Plans of the Housing Authority of the city of Brownsville to completely transform Buena Vida, the city’s oldest public housing site, just took a huge leap forward.
The Brownsville Housing Opportunity Corporation, HACB’s development arm, and developer-partner Versa Development LLC last month received $56.4 million in 9% Housing Tax Credits from the Texas Department of Housing and Community Affairs (TDHCA). HACB already has a schematic of how the new Buena Vida will be laid out, and the design work can now proceed. San Antonio-based Able City Architecture is the architect on the project.
Buena Vida, built in 1938 with 150 units, covers six downtown blocks bordered by East Tyler and East Ringgold streets, and East 14th and East 16th streets. The TDHCA credits were awarded in three separate categories, reflecting what the new Buena Vida will look like: 82 units for senior housing, 80 units of multi-family dwellings, and a 50-unit “supportive housing community” for clients of Friendship of Women Inc.
Carla Mancha, HACB executive director, said the redevelopment plan for Buena Vida was built from input from residents of Buena Vida and surrounding neighborhoods, collected in dozens of meetings conducted over two years after HACB was awarded a HUD Choice Neighborhood Transformation Plan grant in 2016.
The first phase of the resulting Choice Neighborhood plan was to build a new project, Poinsettia Gardens at Boca Chica, which HACB did with a state tax credit allocation of around $24 million.
“Most of the families from Buena Vida were relocated to Poinsettia Gardens,” Mancha said. “It was very important to build a new property so we could move the families out and not burden them with finding a unit.”
The multi-family and senior complexes at the new Buena Vida will complete phases one and two of the Choice Neighborhood plan. Poinsettia Gardens residents who were relocated from Buena Vida will be able to move back to the redeveloped Buena Vida if they choose, as will former residents of Buena Vida who relocate somewhere other than Poinsettia Gardens.
Mancha said the goal is to close on the projects in the second quarter of 2025 and then start construction. Tenants should be able to start moving into the new units in late December 2026, she said.
A view of Buena Vida Neighborhood on Thursday, Aug. 1, 2024, in downtown Brownsville. (Miguel Roberts/The Brownsville Herald)
To honor Buena Vista’s history, one of the original buildings will be preserved, Mancha said, adding that the redevelopment also will feature commercial lease space fronting East 14th Street.
TDHCA awards housing tax credits to help finance the development or rehabilitation of rental properties that offer reduced rents and more affordable housing options for Texans around the state. These awards are an inventive for developers to build or rehab units for households earning up to 60% of median family income in their respective areas.
Luis Eduardo Garduno, HACB chairman and BHOC president, expressed thanks to TDHCA for supporting HACB/BHOC in their mission of creating housing opportunities.
“Access to affordable housing continues to be a challenge for families across the state of Texas, to include our community,” he said. “These three 9-percent Housing Tax Credit awards will provide 212 families with a home in Brownsville.”
Brownsville Mayor John Cowen Jr., poses for a group photo with representatives from the Housing Authority of the City of Brownsville, Brownsville Housing Opportunity Corporation, Able City Architecture, Friendship of Women and neighborhood residents. (Courtesy photo)
Jesse Miller, HACB vice chairman, said applying for the credits is extremely competitive, with 103 applications coming in from across the state initially this year. Sixty-three applications ultimately were awarded, he said. How it works is TDHCA awards the credits to developers (BHOC in this case), which in turn sell them (in Texas, usually to banks), Miller said.
“The bank buys those tax credits and that money is used to fund the affordable housing,” he said. “It’s a way to fund a portion of the cost of affordable housing. Without these Affordable Housing Tax Credits, this really would not be possible.”
Brownsville Mayor John Cowen Jr. characterized it as an “enormous accomplishment” for HACB, a product of outside-the-box thinking on the part of the organizations’ leadership.
“The housing authority, they are their own developers,” he said. “Typically, third-party developers do these deals. (HACB) does it themselves and they keep the developer fee, and they reinvest that in the (mission). There are only two housing authorities in the state of Texas that do that: Brownsville and El Paso.”
A view of Buena Vida Neighborhood on Thursday, Aug. 1, 2024, in downtown Brownsville. (Miguel Roberts/The Brownsville Herald)
Cowen noted that Buena Vida’s rebirth is another facet of downtown’s ongoing revitalization, as is HACB’s El Jardin Hotel project, which will have units available in November and should be finished by April 2025.
“This is a record win for our families to redevelop the Buena Vida neighborhood and increase the amount of affordable housing in the community,” he said. “Congrats to HACB CEO Carla Mancha, the entire HACB commission and HACB team. We have the best and most innovative housing authority in the state of Texas.”
HACB expressed gratitude to the mayor and city commission, state Sen. Morgan LaMantia and state Rep. Erin Gamez for their support during the application process.
Gloria Ocampo, Friendship of Women executive director, likewise praised the project for including a supportive housing component.
“This is a historic moment for FOW, one that will uplift our families when they are most in need,” she said. “Providing a safe place for survivors to transition to is an incredible achievement, and we are blessed to have HACB’s advocacy and support for our families.”
Customers are seen shopping during Black Friday at Bass Pro Shops on Nov. 28, 2014, in Harlingen. (David Pike/Valley Morning Star)
Customers are seen shopping during Black Friday at Bass Pro Shops on Nov. 28, 2014, in Harlingen. (David Pike/Valley Morning Star)
HARLINGEN — After an eight-month legal battle, City Commissioner Daniel Lopez is detailing the terms of a settlement reached with developers behind a 2010 deal that helped a previous administration land Bass Pro Shops.
In a lawsuit, city officials argued the deal locked the city into “perpetual” payments while failing to develop the Harlingen Heights area into a retail district capable of generating enough sales tax revenue to pay off a $4.4 million principle whose 8% interest rate swelled into a $6.3 million debt.
Late last week, the city and the Harlingen Economic Development Corporation reached the settlement with 83/77 Properties Ltd. aimed at paying off the debt within four years, Lopez said in a statement released Wednesday.
“By coming to this settlement agreement, we will avoid years of litigation, thousands of dollars in attorney fees and have a guaranteed favorable outcome,” Lopez said in his statement. “Under the settlement agreement, the city and HEDC will pay their portions of the original $4.4 million debt in one lump sum within 30 days of the agreement being signed.”
Then, the city and HEDC will use sales tax money generated by businesses within a tract of land surrounding Bass Pro Shops to pay off the balance, he said.
“The city and HEDC will then pay the remaining balance of accrued interest, minus $500,000 which 83/77 (Properties) waived, using the sales tax,” Lopez said. “The remaining interest debt of $1,488,866 cannot and will not accrue additional interest during the remainder of this contract. As such, the debt will be paid in the next three to four years.”
The original deal between the city and 83/77 was designed to be a win-win-win, the commissioner added.
He further noted that Harlingen would get an anchor store in a prime location in addition to retail development.
”… Both of which would bring in new sales taxes; the worth of 83/77’s land surrounding (Bass Pro Shops) would increase; and Harlingen residents would now have more shopping options,” he said. “Unfortunately, that did not happen, and to continue down this path would cost millions of dollars more and take decades to extinguish the debt.”
Bass Pro Shops is seen in this July 22, 2020, file photo in Harlingen. (Maricela Rodriguez/Valley Morning Star)
Meanwhile, Joseph Habbouche, an attorney with Atlas, Hall & Rodriguez LLP, released a joint statement on behalf of 83/77 and the city of Harlingen.
That statement describes the settlement as a “new agreement to support and enhance the retail development at the intersection of U.S. Highways 83 and 77.”
Habbouche described a “resolution” as a “response to growing debt obligations.”
“This resolution allowed 83/77 Properties to better manage its financial risk while enabling the city to secure favorable financing terms despite a high interest-rate environment,” he said in his statement. “Consequently, the 380 Agreement was revised to reflect current economic conditions.”
”The city of Harlingen, the Development Corporation and 83/77 Properties recognize the mutual benefits of the thriving development at Highways 83 and 77 and they are all pleased to announce that the revised agreement will promote the economic growth of Harlingen while balancing their rights under the original agreement. The revised agreement ensures the continued growth and prosperity of Harlingen, fostering an environment of progress and collaboration,” Habbouche said in the statement.
THE HISTORY
In the lawsuit filed in December 2023, city officials said the 2010 agreement failed to include critical terms.
“The agreement omitted essential terms which are necessary for a legally binding financing agreement,” the lawsuit’s amended petition stated.
The city had questioned the terms of the agreement in regards to payments and whether it contained a sunset provision to extinguish the debt.
Meanwhile, the city’s previous administration was counting on the agreement to develop the Harlingen Heights area with businesses generating enough sales tax revenue to pay off the principle and debt, the lawsuit stated.
The city had hoped the agreement would lead to additional retail, shopping, restaurants, bars and other commercial businesses, but it didn’t come to fruition as planned, the lawsuit stated.
After drawing Hooters, AT&T, Longhorn Steakhouse and Cracker Barrel to the new retail district, “development eventually stalled,” Lopez said in his statement.
“To pay for the land without using the city’s existing taxes, the city and HEDC agreed to utilize the projected sales taxes to be collected from the retail development to pay the $4.4 million plus interest,” he said. “Under the terms, payments would first cover the yearly accrued interest and any money over that amount would go towards (principle). If the yearly accrued interest was not fully paid, the remaining interest balance would be added to the loan amount, thereby increasing the overall debt.”
While the original deal did not specify a set monthly payment amount, it also did not set the number of years in which the loan would be paid off, Lopez said.
“Rather, the agreement was built upon the belief that there would be sufficient new sales taxes to pay both the accruing interest and a portion of the (principle),” he said. “Consequently, the city’s and HEDC’s sales taxes were less than the accruing interest.”
In the last 14 years, the city paid more than $2.3 million while its debt “ballooned” from $4.4 million to $6.39 million, Lopez said.
