SAN BENITO — The city can use $10 million in sales tax revenue to fund street projects — without paying it back, a developer told city commissioners.
Last night, commissioners requested City Attorney Ricardo Morado and City Manager Manuel De La Rosa to research developer Humberto Zamora’s proposal.
“It’s doing our due diligence,” City Commissioner Esteban Rodriguez said after the meeting.
Commissioners Rene Villafranco and Carol Lynn Sanchez did not attend the workshop.
During a one-hour presentation, Zamora told commissioners a new program allows the city to use $10.4 million in sales tax revenue allocated to the state to fund projects.
Zamora said the city would not have to pay back the money.
“It’s something we can look at,” Rodriguez told Zamora.
Commissioners, who were not familiar with the program, questioned Zamora’s proposal.
“If it’s such a great program, why isn’t everyone jumping on it?” Rodriguez asked. “If it fails, we’re going to be in hot water.”
Zamora said the Texas Tax Code outlines the program created about five years ago.
“The money is there for you to use, for you to decide how to use it,” Zamora told commissioners.
Zamora said the city would not incur liability.
“There is no way to lose,” Zamora said. “There is an accountability system to protect cities against any risks.”
Rodriguez told Zamora the city wanted to borrow $10 million to repair all of its streets.
“We need to do our streets — our infrastructure,” Rodriguez said.
Zamora, who said he would bond the project, said he would hire federal engineers who would construct long-lasting streets
“You tell me the roads, how thick, how many years you want them to last,” Zamora said.
Zamora, former chairman of the Harlingen Economic Development Corporation, owns the Zamora Development Group.
In Harlingen, Zamora’s federal projects include construction of the U.S Citizenship and Immigration Services center; the U.S. Department of Homeland Security offices; the U.S. Customs and Border Protection station; the U.S. Internal Revenue Service office; and the U.S. Department of Veterans Affairs offices.
