SAN BENITO — City leaders are making way for what could become the biggest project in decades which developers say would create more than 2,000 jobs.
But some officials continue to question the viability of the proposed $450 million project aimed at building a convention center and hotel in a village-like setting of office suites, restaurants and retail shops.
Earlier this week, city commissioners passed the second and final reading of an ordinance re-zoning 115 acres at the northeast corner of FM 509 and Interstate 69 to make way for the project planned by Western Spherical Developers, a Friendswood company.
“If it’s good, I want it for San Benito,” Mayor Rick Guerra said Wednesday. “We need something good for San Benito.”
After about three years of talks, some city officials continue to raise questions about the project.
“We’re in the process of looking at this project,” Guerra said. “We do have mixed feelings.”
‘Economic development’ project
What would become the city’s biggest project in decades would create 1,013 jobs along with an additional 1,077 jobs during the three-year construction period, developers said.
Earlier this month, developer David C. Miles told commissioners the so-called “epicenter” project would generate $100 million in retail sales, hotel and property tax revenue for the city during a 20-year period.
“I think it’ll have a positive impact on the economy here in San Benito,” Commissioner Rene Garcia said Wednesday. “It’s something we can use as a tool for economic development. In the long run, we’ll have something on what’s now agricultural land off the expressway which will produce sales tax revenue and property taxes to increase the tax base for infrastructure repairs such as streets.”
After reviewing the developer’s proposal, City Attorney Mark Sossi told commissioners the project would pose no financial risk to the city.
Meanwhile, the city has offered tax breaks and building fee rebates on the condition the developer complies with a performance agreement.
Project raises questions
During meetings with developers, Commissioner Pete Galvan has questioned the project’s viability.
“It’s great that San Benito is trying to grow and look for ways to expand our economic development,” Galvan said Wednesday. “At the same time, it would be the responsibility of the commissioners to do their due diligence and ask the appropriate questions to ensure the citizens are getting the better hand of the deal.”
But across town, some residents have raised questions about the project.
“I’m open for comments. I’m open to the public,” Galvan said. “I’d be happy to answer any questions the citizens might have.”
The project
Earlier this month, Miles proposed the project he said would develop a sprawling “village” including two hotels, an entertainment center, a sports complex, restaurants and retail shops along with a five-acre “Crystal Lagoon.”
Miles said he planned to develop the project in three phases.
During a three-year construction period, the $180 million first phase would develop the convention center and a five-story, 142-room select-service hotel along with other features including an entertainment center, performance hall, restaurants, retail shops and office suites and the five-acre lagoon.
Prospective tenants include Waypoint 2 Space, a Houston-based company training for commercial space flight, Miles said.
The project’s second and third phases, each funded through $120 million investments, would feature a sports arena and a “medical village,” Miles said.
Hotel occupancy tax funding
About three years ago, Tammy Huerta, daughter of the late Grammy-award winning singer Freddy Fender, helped spark talks between the developer and De La Rosa, Miles said.
Two House bills would help the developer fund costs through hotel occupancy tax revenue.
In 2019, state Sen. Eddie Lucio Jr. and state Rep. Eddie Lucio III helped push House Bills 4347 and 2199, which allow cities to spend hotel occupancy tax revenue generated through developments to fund construction of convention centers and sports and entertainment projects.
The developers are planning to launch construction in May or June, Miles said.
