Campos: Major mixed-use development coming to Harlingen’s medical district

HARLINGEN, Texas – Harlingen Economic Development Corporation is working with a private consortium on a major mixed-use development immediately south of Valley Baptist Health System.

The development, contained within Harlingen’s medical district, will include retail, residential, hotel and other hospitality.

Preliminary details of the project were unveiled by Harlingen EDC CEO Orlando Campos at a Commercialization and Investment Tour hosted by the Rio Grande Valley Partnership at Texas State Technical College in Harlingen.

“We are working on a major development at that location which will be a mixed-use development, which will include retail, residential, hospitality, as well. We haven’t formally announced that development, but we are moving forward with it, and we have a few commitments from individuals or businesses that are very, very interested in that location,” Campos said.

“And that will certainly help enhance the look and feel of the community. (It will) be a tremendous asset for the hospital district because we will be able to attract new medical professionals to the community to help satisfy the needs that exist here.”

Campos brought up the mixed-use development next to Valley Baptist, in response to a question from Cameron County Economic Development Director Ramiro Aleman. Aleman had asked Campos about HEDC using Tax Increment Reinvestment Zones (TIRZ).

Campos spoke about two such zones, one within the hospital district and another around Bass Pro Shops. “You’ll likely see a lot more movement happening in these two areas,” Campos predicted.

Campos continued: “So there is quite a bit of undeveloped land around the Bass Pro shop that we are constantly promoting. (It is) ideal for retail investment. And so, we started seeing a lot of that happening as the entire region grows. Obviously when you’re focusing in on retail, retail retailers are looking for rooftops so as new residential developments are growing here in the community that becomes more and more attractive for new retailers to move here into the area.”

After the Commercialization and Investment Tour had ended, Campos gave the Rio Grande Guardian an exclusive interview. Asked about the development happening in the medical district, Campos told the Guardian:

“There’s a large portion of undeveloped area that is located close to the hospital district and that’s within a TIRZ. And so, we’re right now working on a major mixed-use development for that area that will include residential as well as hospitality, hotel and commercial spaces there.

“(The development) is being spearheaded by the private developers in partnership with the City and the EDC to help catalyze and address some of the issues that have existed in the past. So, hopefully in the next few months, we’ll be able to make an announcement of everything that is going to happen in that location that will certainly change the face of the community.”

Campos was asked about the involvement of the private sector in the project. He said:

“The medical sector is a huge employment node for the city and so it’s become very, very attractive for a lot of developers and retailers and restaurants who want to be close to that area and take advantage of the employment that exists during the day. And the icing on the cake is the residential component that will be part of this development.”

The Texas Comptroller’s Office has a page on its website that defines a TIRZ. It states:

When a municipality or county creates a Tax Increment Reinvestment Zone (TIRZ), it records all taxable value of property within the zone.

The year a TIRZ is created is the base year. The appraised value of property within the zone during the base year is the base value.

As development or redevelopment occurs, the appraised value of the property in the zone should increase. The difference between the increased appraised value of property in the zone and the base value is the captured appraised value.

Current Appraised Value － Base Value = Captured Appraised Value

Taxes levied and collected on the base value remain with the participating taxing units.

The portion of the taxes collected on the captured appraised value, or tax increment, is deposited in a Tax Increment Fund (TIF). Revenues in the TIF can only be used for improvement projects in the TIRZ.

The duration of the TIRZ is set when it is created. When the TIRZ ends, all taxes from the zone go to the taxing units in the zone.

Editor’s Note: Here is the Rio Grande Guardian’s exclusive video interview with Orlando Campos:

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