PHOTO: This map shows the plan for a new shopping center and additional pads on undeveloped land owned by Houston-based Property Commerce. The Victoria City Council on Nov. 3 approved an agreement to relocate a nearby exit ramp to provide access to the property.
The Victoria City Council at its meeting Nov. 3 approved an agreement to relocate an exit ramp to provide access to 38 acres of undeveloped land adjacent to Home Depot, which will pave the way for a new $31 million shopping center that is projected to generate about $700,000 in local tax revenue per year upon its completion.
Under the agreement with Houston-based Property Commerce, which owns the land, the City will contract with TxDOT to relocate the John Stockbauer exit ramp off Zac Lentz Parkway, which currently bypasses the site of the proposed shopping center.
“The developer has owned this property for quite some time, and the lack of access was the biggest obstacle to development,” said Assistant City Manager Mike Etienne. “The City’s investment and TxDOT’s support in relocating the ramp will essentially make this property developable.”
The Victoria Sales Tax Development Corporation will pay $816,087.19 toward the relocation of the exit ramp. As part of the agreement, Property Commerce must begin construction by September 2021, and the tenants must meet established sales targets within a five-year timeframe.
Victoria’s 2035 Comprehensive Plan calls for the City to encourage economic development utilizing a variety of tools at its disposal, including Chapter 380 economic development agreements such as this one. Once completed, the shopping center is projected to generate approximately $77,000 in property tax revenue and $622,000 in combined sales tax revenue for the City and the VSTDC per year in addition to taxes collected by other local entities.
“Large-scale retail projects like this one have the potential for tremendous return on investment because they generate both property and sales tax revenue while creating jobs in our community,” said City Manager Jesús A. Garza. “We have the data to show that millions of dollars are spent by Victorians in retail stores outside of our community, and projects like these will help keep local monies local.”
The shopping center is expected to have about 10 retail spaces totaling approximately 150,000 square feet, with room for future expansion. Construction of the shopping center and the new ramp are scheduled for completion in early 2022. The shopping center is expected to open later that summer.
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