The city of Harlingen and its economic arm have sued over the Bass Pro Shop development — a once-controversial proposal that resulted in a fiery public discussion over whether the plan was worth the price tag.
Now, more than a decade later, the city claims it might never be possible to ever even pay for the land with public funds.
The city of Harlingen and the Economic Development Corporation of Harlingen filed the lawsuit against 83/77 Properties Ltd. and 83/77 GP LLC in December 2023.
On March 21, the city filed an amended petition and the respondents answered on April 12.
“The Petitioners have filed this case because doing so is the only way to protect the citizens of the City of Harlingen from a predatory and abusive financing agreement which the Petitioners entered into thirteen years ago,” the lawsuit stated. “The Agreement has and will continue to cost Harlingen taxpayers to pay out millions of dollars in public funds to Respondent for no real purpose.”
The city claims the agreement only serves to enrich 83/77 Properties Ltd. and 83/77 GP LLC.
For its part, those companies answered with a general denial to “each and every material allegation.”
“Only now, years after the written agreement was signed do the (city) suddenly come forth and attempt to invalidate the promises and representations they made to induce the Defendant … into accepting the written agreement terms,” the answer stated.
Harlingen entered into the agreement on Dec. 15, 2010 to develop a 30-acre tract of land “and other land” that would be developed, including Bass Pro Shop.
The total principal debt — which carries an 8% interest rate — is $4,431,204 with Harlingen’s debt amounting to $3,013,219 and its economic arm’s amounting to $1,417,985.56 plus accrued interest.
“The debt was ‘seller financed’ by 83/77 Properties LTD,” the lawsuit stated.
According to the city, the only way it can pay the debt is “exclusively from a perpetual assignment of sales tax collected” from the development.
The lawsuit claims that if the land weren’t developed there wouldn’t be enough sales tax to extinguish the debt.
“In this scenario, Harlingen residents would be paying off this debt until the end of time,” the lawsuit stated.
The city claims that “little to nothing” has been done to develop retail over the last 13 years.
Now — despite already paying $2,365,897.82 — the outstanding principal and unpaid interest has grown to $6,393,659.32, according to the lawsuit.
“However, despite Petitioners full performance, the debt owed on this project will continue to increase so long as 83/77 Ltd. continues to simply choose not to develop the 30-acre tract which it promised to develop in the Agreement,” the lawsuit stated. “Harlingen taxpayers will, in that event, never be able to pay off the principal balance and will be trapped in an ever-spiraling cycle of debt.”
Here’s the latest update:
Harlingen official outlines settlement ending lawsuit over Bass Pro development
