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Rare Development Gem in South Texas: McAllen Shines Bright as Epicenter of the Rio Grande Valley

Publication | REDNews, May 2022



It' s got a booming economy. Business development is at an allt-ime high, people are hustling

and bustling. Welcome to McAllen, a mid-sized Texas border town with a big-city attitude.


"The growth in McAllen is phenomenal," comments Rebecca Olaguibel, the

city's Director of Retail and Business Development. "It's an exciting time to be in McAllen.•


While McAllen's population hovers at just more than 142,000, according to the 2020 U.S.

Census, the number of people in town swells each day as an estimated 39,000 commuters

drop into town to conduct business, shop, dine, and enjoy the cities amenities.


"McAllen has consistently ranked in the Top 20 reta il sales tax generators in the state of Texas

for the past few decades," Olaguibel shares, "as a matter of fact, McAllen recently ranked 2nd

in the State of Texas for Retail Sales per Capita" With the McAllen MSA is now the fifth largest

metropolitan statistical area in Texas, surpassing El Paso, developers are intrigued by this

mid-sized city performing so well .


Even the pandemic shutdowns couldn't dampen the city's economic successes.


"Closing out our fiscal year, we have earned epic retail sales tax revenues," says Olaguibel. "We've seen our numbers go way up in retail sales tax, hotel occupancy tax and construction."





With McAllen's two international bridges now open as of November 8th, 2021, retail sales

are expected to soar even higher with fully vaccinated foreign travelers now able to drive

across the U.S. border with Mexico into McAllen.


"International commerce and connectivity are key to McAllen's success. We are delighted to

offer travelers the option to fly in as well as drive into McAllen," Olaguibel says, adding that

the city has added more international flight opportunities for consumers to choose from.


Our consumers are spending at big-box retailers and smaller locally owned businesses

alike, both of which McAllen has plenty to offer.


"We have seen some fantastic growth from our small locally owned businesses. We've

created an environment in McAllen so that they can grow and thrive," says Olaguibel.


The city has also gone above and beyond, creating the Refresh 50/50

Revitalization Grant for storefront improvements, for example.


"From city hall all to our development services departments, which includes engineering, planning, zoning, and permits, we're all aligned in the same goal," Olaguibel stresses." We want to help small businesses be successful.''

Knowing the economy's all about balance, city leaders also welcome larger retailers.


"I like to caII McAilen a developer's dream in south Texas because we have the formula that they need to be successful here," says Olaguibel.


Exhibit A: Tres Lagos, a 2,800-acre master-planned community. It broke ground in 2016 and is now home to more than 1,800 people. The project is already expanding to include a 70,000-square-foot retail space caIIed The Shoppes at Tres Lagos.


"We're excited about Tres Lagos because it's not only going to generate more interest for that community, it's generating jobs, increasing our property tax base and generating retail sales tax revenue, which are key to McAilen," Olaguibel says. "On top of aII that, Tres Lagos adds quality of life not only to their residents but to the entire city."


That last bit is key in McAllen. Along with a booming economy and plentiful educational opportunities, the city can offer its residents security. SmartAsset. com recently ranked McAilen the No. 9 Safest City in the United States. That's backed up by the FBI Uniform Crime Report, which documented McAllen's 11th consecutive year with a declining crime rate. In fact, it hit a 36-year low in 2020.


McAilen is one of those rare development gems, flying under the radar in deep south Texas and nestled in the Rio Grande Vailey.


"McAllen has built in consumers, excellent leaders, and a great economy," says Olaguibel. "We can prove that investors and developers would be successful and sustained here in McAllen."

For more information about development opportunities within the City of McAllen, email Rebecca Olaguibel at rmolaguibel@mcallen.net.



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