Victoria City Council approves $1.5M economic development deal with Victoria Exchange

The Victoria City Council convened on May 20, 2025, to address several key agenda items, including a significant economic development resolution and the annual financial audit report.

The meeting commenced with a discussion on Item E4, a resolution to approve an economic development program under Chapter 380 of the Texas Local Government Code. This resolution authorizes the city manager to enter into an agreement with Victoria Exchange Development LP for retail development and infrastructure improvements, with a financial commitment not to exceed $1.5 million.

Miss Williams presented an overview of the Victoria Exchange Development project, located at 9009 North Navarro Street. The project entails a total private investment of $25 million, featuring approximately 90,000 square feet of retail space to be developed in two phases. Phase 1 includes the construction of major retail stores such as Burlington and Ulta, while Phase 2 will add additional retail space. Infrastructure improvements to Broadmoor Street are also planned, with construction for Phase 1 already underway and Phase 2 expected to begin later this year.

The city will provide a $1 million reimbursement for road infrastructure improvements, funded by the Victoria Sales Tax Development Corporation. Additionally, a sales tax rebate will be offered to the developer after the completion of Phase 2, capped at $500,000. The council unanimously approved the resolution after a brief discussion.

Following the economic development discussion, City Manager Mr. Garza introduced the annual financial audit report for the fiscal year ending September 30, 2024. The audit, conducted by Harrison Waldrop and UHERIK, confirmed the city received a clean opinion with no findings related to internal controls or compliance issues. The city has maintained this clean audit opinion for 40 consecutive years, a commendable achievement.

Melissa Terry, a partner at the auditing firm, highlighted key financial metrics, noting an increase in the general fund balance by $1.5 million due to higher-than-expected revenues and lower expenditures. The water fund's net position increased by $139,000, while the environmental services fund saw a decrease of $537,000. The council was informed that the city would continue to comply with all financial reporting requirements and that the audit process is an ongoing engagement.

The meeting concluded with no further questions from the council, and the council members expressed their appreciation for the work done by both the development team and the auditors. The next steps include the continued monitoring of the development project and preparation for the upcoming fiscal year's audit.