Developer asks Rio Grande City EDC for $150,000 incentive to redevelop vacant strip into Legacy Plaza
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Summary
A developer told the Rio Grande City EDC it plans to convert the former Whataburger site into an 11,072-square-foot retail plaza and is requesting a $150,000 incentive — about 4% of the roughly $3.8 million project — to cover demolition and site work.
Mark Hanna, principal at SVN commercial brokerage, told the Rio Grande City Economic Development Corporation on Tuesday that his client, developer Wally Guerra, bought two parcels — the AT&T property and the former Whataburger site — last year for $1,700,000 and plans to turn them into an 11,072-square-foot retail plaza.
“We are here to ask for, an incentive of 150,000,” Hanna said, adding that most of that money would go toward demolition and site-preparation work. He estimated construction costs at about $2,100,000, putting total project investment at roughly $3.8 million.
Why it matters: The project would add small retail spaces that developers say local and regional retailers are seeking, and could generate additional sales-tax revenue for Rio Grande City. Hanna said AT&T would remain open during construction and that the developer hopes to begin construction in May or June, pending city permits.
Hanna detailed design constraints and market demand. He said a drive-through is not feasible without demolishing the AT&T building, so the plan keeps that building in place and adds new retail to the adjacent parcel. He also said the team plans “to put up a big sign with the rendering” and to begin accepting letters of intent from potential tenants after the sign goes up.
Board members asked procedural and technical questions — including whether the two parcels must be resubdivided and how unit sizes would be configured for tenants — and Hanna said the developer has plans finalized pending an engineer’s stamp and that local labor would be used when feasible.
No formal action on the incentive request was recorded at the meeting; the presentation served as the applicant’s introduction of the project to the EDC and an opportunity for board members to ask initial questions.
Next steps: Hanna said the developer is ready to move quickly and will pursue permits and further coordination with city staff. The EDC packet included an incentive application for the project.