Funding finalized for Bass Pro Shop

HARLINGEN — Millions in funding for construction of the Bass Pro Shops project was finalized Tuesday, Economic Development Corporation officials said, starting the transformation of a now overgrown, trash-strewn lot into a 100-acre shopping center city officials hope will drive local growth.

Development corporation CEO Bill Martin said sales tax revenue bonds were sold Tuesday, giving the corporation about $31 million to pay for construction, with a Jan. 31 deadline of turning the site over to the outdoor retailer for building construction.

Martin said the development corporation would close on the land no later than today.

The development corporation board approved Brown, Leal and Associates to provide engineering services for the site, which will be anchored by Bass Pro Shops after the company signed a lease with the city Dec. 11.

The development corporation also approved the hiring of Terracon, an engineering consulting firm with offices in Pharr, for evaluation of the soil and accompanying services.

Bids to build temporary utilities and related structures for a pad site were also approved by the development corporation board Tuesday.

Overall, much of the action approved Tuesday night was related to the first phase of construction and design, as well as approval of engineering firms with offices in the Rio Grande Valley.

Martin said the site’s developers “have had a lot of interest expressed in the properties surrounding the site and are very excited,” while the city is continuing to design infrastructure such as streets, storm drains and sidewalks for the site.

Attracting other businesses to the area was one of the development corporation’s main selling points for bringing the outdoor retailer to Harlingen.

A key factor is that the bulk of the project’s funding is fueled by the increased sales tax revenues which more businesses are expected to bring.

To pay for the land, 40 percent of the city's 1 percent of sales tax revenue from the property will be used, while the development corporation will use 50 percent of its 3/8 share of sales tax revenue from the property.

City officials also said the developer must bring additional retailers to generate sales tax for reimbursement.

To pay for the 150,000-square-foot building, the development corporation will use the bonds sold on Tuesday.

To pay for those bonds, also known as debt service, the development corporation will use a combination of its own sales tax revenues, Bass Pro Shops lease payments and city sales tax revenues from the store.

Martin said the development corporation is in the process of hiring a project manager to monitor the construction, but that should not be perceived as any “doubt” in Bass Pro Shops’ ability.

“It’s just because we are providing some of the funds that we want to monitor the project,” Martin said of the hiring.

He said the development corporation’s actions still need to be approved by the City Commission to become final.

“Nothing gets done until the pad gets done,” Martin said. “That’s the first step.”

Martin said Brown, Leal and Associates, a Harlingen-based firm, will provide services for the construction of the pad site to include drainage, lighting and landscaping for the $31 million construction project of the EDC-owned building the outdoor retailer will rent.

“I think given the action that the EDC board took last night (Tuesday), we’ll be able to turn the pad site over to Bass Pro by Jan. 31,” Martin said.

The EDC board also approved an agreement with Donna-based contractor Eberle Materials, Martin said.

As of Wednesday afternoon, dozens of large aqua-colored tubes lay on the site next to a bulldozer moving soil.

Martin said the tubing was for an irrigation canal which needed to be converted from above ground to below ground for the project.

Oscar Ovalle, city of Harlingen project control officer, was at the site that day and said the land is currently being surveyed.

He confirmed that one of the most important deadlines was Jan. 31 — the date the site is scheduled to be turned over to Bass Pro Shops for construction.

The EDC anticipates the store will open Oct. 31, 2011.