Racetrack caught in question over land’s future

McALLEN -- A longstanding land debate between the cities of McAllen and Hidalgo further complicates the opening of the planned Tesoros Race Park in South McAllen.

With McAllen's plans to lay water and sewer lines to the 200-acre horse racing site on Dicker Road expected to take at least two and a half years, the solution would seem to lie just across the street inside the Hidalgo city limits. But extending the existing water and sewer lines across Dicker, the dividing line between the two cities, has become a matter of contention.

"My understanding is (Hidalgo) would provide water and sewer, but they want McAllen to de-annex the (tract). The city is not going to do that," said McAllen City Manager Mike Perez. "That's what I was told by the developers."

Hidalgo City Manager Joe Vera denied his city had issued any such decision, but agreed the land had been the subject of talks before.

"Before there was even a racetrack, when Mayor (Richard) Cortez got elected, we talked about the area north of Dicker Road," he said. "We said, ‘Might it not make more sense for this to be in Hidalgo?'"

Located just south of the floodplain and immediately north of Hidalgo's city limits, the racetrack site is part of a larger stretch of land that has hung in limbo for years. Just a mile north on 10th Street from Hidalgo's Dodge Arena and three miles from McAllen's sewer and water mains, development there up to this point has been limited to individual homes and businesses.

"For years landowners and developers, in a certain section of South McAllen and north Hidalgo, wanted infrastructure improvements because it would make their land more valuable," Cortez said.

Perez said McAllen has de-annexed property in the area to Hidalgo in the past but had halted the practice because McAllen has become "landlocked."

With the entry of Tesoros, a $23 million racing facility expected to include amenities like a water park, nightclub and, if the state Legislature allows, video gambling areas, the question of getting infrastructure to the area has become urgent.

Under the permit issued by the Texas Racing Commission, Tesoros needs to open its simulcast betting facility by January 2009, with its horse racing track to open six months later.

Vera said the LaMantia family, which is developing the track and owns McAllen-based Anheuser-Busch beer supplier L&F Distributors Ltd., had not made any request to Hidalgo for water and sewer service.

Greg LaMantia, spokesman for the family and the investment group Muy Buena Suerte Ltd., did not return phone calls seeking comment. In an interview last month, following McAllen's disclosure that service was at least two and a half years away, LaMantia said he was considering contacting Hidalgo city officials.

The likelihood of Hidalgo granting such a request is difficult to discern.

Cities routinely provide water and sewer service to properties in other cities where service is not available, though usually at a premium cost.

But with the history between Hidalgo and McAllen, such an outcome is unlikely, Perez said.

"You never say never - there's always a possibility," he said. "We haven't had any of those discussions in many months."

Hidalgo, for its part, is keeping the possibility on the table.

Mayor John David Franz said the racetrack's success would ultimately be beneficial to both cities.

"Anything that draws people in, that benefits the entire area. And if (video) gambling gets legalized, you can expect a whole lot more activity," he said. "But until someone makes a formal request, we have no standing."
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James Osborne covers McAllen and general assignments for The Monitor. You can reach him at (956) 683-4428.