Pharr, San Juan to enter mediation over land

PHARR -- The legal fight for San Juan Plantation continues nearly a year after Pharr leaders declared victory.

But now - finally - the case could be nearing its end.

Last week, visiting judge Federico Hinojosa ordered Pharr and San Juan to get a mediator to help resolve the dispute.

The cities could come to the table as soon as next month, said Michael Pruneda, the Pharr city attorney.

The two cities have feuded for two years over San Juan Plantation - 4,000 acres of farmland expected to be developed into an upscale residential and retail area.

City leaders from both sides believe the land will help them reap a windfall in property taxes.

"The only people benefiting from (the legal wrangling) are the attorneys," said Fred Schuster, spokesman for the San Juan Plantation landowners.

Last fall, it appeared the case was coming to an end when a judge granted Pharr a motion for summary judgment - a request for the case to be decided without a jury.

"The case is over," Pruneda said in October 2007. "There is nothing left to litigate."

But Pruneda was soon proven wrong when San Juan was granted its request for a new trial. Now, the legal fight rolls on.

It's not the first time the fight was declared over prematurely.

The Monitor ran this headline almost two years ago: "Pharr-San Juan land dispute may end soon."

If the two sides can't reach a settlement, they are set to go to trial Dec. 1.

The dispute centers on which city has the right to annex the land - located south of San Juan and east of Pharr - and whether "I" Road is the agreed-upon dividing line between the cities.

Schuster said he hopes the cities come to a resolution before going to trial. He has said Pharr is better capable of meeting the property's infrastructure needs.

But privately, some Pharr leaders say if the city does win the fight, taking on the development could be risky.

A report issued to the City Commission earlier this summer outlined the weak state of the city's finances. Pharr has wiped out its financial reserves and will have to become leaner to build them back up.

Annexing the land would require Pharr to extend its emergency services, expand utilities and build up its roads.

That work would place a heavy financial burden on a city already strained.

And the property owners have advocated for a plan that would require the city to reinvest the tax dollars raised by San Juan Plantation back into the development. If the project doesn't live up to its hype, it could be costly for the city.

Meanwhile, as politics and litigation surround the fight over the development, landowners say they are frustrated the project has stagnated.

"Everyone just wants to continue to fight," Schuster said.

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Ryan Holeywell covers PSJA, the Mid-Valley and general assignments for The Monitor. He can be reached at (956) 683-4446.