Mercedes' business boom continues
MERCEDES - Three retail developments springing up around the Rio Grande Valley Premium Outlets mall are projected to spur business growth and transform the Mid-Valley region, businessmen said Monday.
Developers plan for retail stores, restaurants and hotels on about 40 acres near the mall that will create a retail corridor stretching along Expressway 83 to Harlingen, businessmen said.
"Now there's still some open land along the highway," said Don Vogel, a developer who sits on the Mercedes school board. "In 10 to 15 years, it'll probably be taken up by retail business."
Despite soaring gas prices and a national economy teetering on the brink of recession, the city's sales tax revenues are booming: the city received more than $345,000 for sales made in April, a 9.8 percent increase over last year.
In April Willie's Appliance and Furniture opened a 20,000-square-foot store next to a La Quinta hotel, which came to town after the mall opened in November 2006.
The city's business boom is attracting housing developers who plan two subdivisions and a mobile home park in what was a small farming town, said Michelle Leftwich, the city's assistant city manager.
"It's an incredible blossoming of the community," she said. "They opened the mall and it's developed all this activity. It's a jewel in the Valley. It's Mercedes' time. It's going to spill over to all the Valley."
Vogel, a Mercedes businessman, said he plans to develop a 17.7-acre site south of the mall between 1 Mile East and 1 ½ Mile East roads.
He expects 11 businesses to include a hotel and restaurants, Vogel said, who declined name prospective companies.
"With the amount of traffic and customers at the outlet mall, we anticipate we'll have high traffic," he said.
City officials didn't know when construction could be completed, Leftwich said.
Eduardo Zegaib, a McAllen developer, plans for "a variety of different retail uses" on a 20-acre tract between Mile 2 East and Mile 2 ½ East roads, said Mike Blum, a McAllen broker.
Blum declined to name prospects.
City officials expect construction to be complete by spring 2009, Leftwich said.
Ricardo Rubiano, a Pharr developer, said he plans to build on a 2.5-acre site offering 18,000-square-feet of retail space near the intersection of Expressway 83 and FM 1425.
Now he's working with Herman's Optical and a Wings Stop restaurant to open sites there, Rubiano said. A national pizza chain also plans to open a restaurant there, he said.
Construction will be complete in spring 2009, he said.
"We're looking at other opportunities for future options. (The mall) is a terrific traffic generator. That certainly promotes development in Mercedes," Rubiano said. "The growth will grab a foothold within a mile of the mall and I would say it will stretch to the east to Harlingen."
