Kelsey: Good discussion going on in RGV about economic development

ARLINGTON, Texas – Brian Kelsey, a former assistant city manager for Edinburg who now specializes in research and strategy, says he likes the discussion currently underway within the Hidalgo County Prosperity Task Force about economic development.

The discussion, exclusively reported on by the Rio Grande Guardian, occurred in-depth at a recent task force subcommittee meeting. Economic development leaders such as Adam Gonzalez of COSTEP, Keith Patridge of McAllen EDC, Ron Garza of UTRGV, and consultant Mario Lozoya discussed ways to bring new industries to the Rio Grande Valley that offer higher paying jobs.

“Sounds like a good discussion. Let’s put some more numbers to it,” wrote Kelsey, in a posting on LinkedIn. “According to FY 2023 data from the Texas Comptroller, the EDCs in the Brownsville and McAllen metros spent a combined $110,943,908 on economic development activities and reported $124,373,858 in unrestricted cash on hand available for future projects last year.”

Kelsey zeroed in on Patridge’s point about why some EDCs are focused on retail and other local establishments fueled by consumer discretionary spending.

From Texas Comptroller-produced data, Kelsey provided a list of the share of 2023 taxable sales in every Rio Grande Valley city made up of retail, restaurant, and accommodation businesses. Here is the list:

Alamo, 72%

Alton, 74%

Bayview, 2%

Brownsville, 83%

Combes, 56%

Donna, 84%

Edcouch, 87%

Edinburg, 78%

Elsa, 93%

Granjeno *

Harlingen, 78%

Hidalgo, 86%

La Feria, 46%

La Joya, 95%

La Villa, 82%

Laguna Vista, 56%

Los Fresnos, 88%

Los Indios, 99%

McAllen, 58%

Mercedes, 76%

Mission, 81%

Palm Valley, 2%

Palmhurst, 95%

Palmview, 72%

Penitas, 93%

Pharr, 71%

Port Isabel, 90%

Primera, 19%

Progreso, 97%

Progreso Lakes, 0%

Rancho Viejo, 91%

Rio Hondo, 96%

San Benito, 80%

San Juan, 79%

Santa Rosa, 60%

South Padre Island, 87%

Sullivan City, 96%

Weslaco, 85%

“Some EDCs – in the RGV and elsewhere – are under enormous pressure from their boards, elected officials, and the community to invest in local amenities like retail, restaurants, and entertainment. Some would say it’s to boost the sales tax base and generate revenue for other community improvements. Others might say it’s simply executing on community preferences,” Kelsey said.

“But there’s a counterargument as well: Is that what EDCs were designed for?”

Kelsey highlighted another remark from McAllen EDC’s Patridge.

“As Keith mentioned, where is the greatest ROI (return on investment) to the local economy that drives business competitiveness and good job opportunities for residents?”

Kelsey added: “It’s an important debate. Looking forward to following it in the RGV.”

The timing of Kelsey’s remarks about whether EDCs were designed to go after retail, restaurants, and entertainment is poignant as many of the Valley’s EDCs are about to head off to the big ICSC Conference in Las Vegas. They will be hoping to land some national retail chains. But not McAllen EDC. It does not attend ICSC events because its focus is industrial.

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