759 acres in La Feria to be developed

LA FERIA - A new program projected to generate $156 million will largely develop an area along Expressway 83, drawing from growth spurred by Mercedes' Rio Grande Valley Premium Outlets mall, City Manager Sunny Philip said Wednesday.

Monday, city commissioners approved the plan to develop a state tax increment financing zone that will use property tax revenue to build businesses and housing on 759 acres of largely vacant city land.

"It will increase the tax base and job opportunities," Philip said Wednesday. "It will increase economic development and at the same time provide (affordable) housing."

For about 10 years, city leaders have worked to launch the program they project will generate $31 million in property tax revenue during a 30-year period, Philip said.

City officials will use additional money such as grants to make an estimated $50 million worth of capital improvements within the zone during the 30-year period, Philip said.

"The idea is to bump income for residents of La Feria, having job opportunities and affordable housing that will improve the quality of life," Philip said.

Proposed projects include construction of a 2.5-mile roadway to run along the city's eastern section to feed traffic into retail areas, Philip said.

"This will help to create commercial corridors," he said.

Developers are projected to build business and housing improvements worth $156 million, he said. Today, the land's appraised value stands at $22 million.

The program will largely develop land along Expressway 83, just east of the new outlet mall that's projected to spur development of a retail corridor from Mercedes to Harlingen, Philip said.

"There's quite a bit of traffic and quite a bit of vacant land that can be used for retail development," he said.

The program will also fund development of housing that would be affordable to average-income residents in this city where median family incomes range from $25,000 to $30,000, Philip said.

"It is a conscious effort to contain the cost of housing," he said.

Proposed projects include development of a college or job training center and expansion of public services such as the police and fire departments, Philip said.

Other projects include development of parks and expansion of water and sewer lines, he said.

The city's paid $52,000 to hire San Antonio-based TIF Services of South Texas to serve as a consultant in the project.