McAllen may have to wait for ‘Central Park' development

McALLEN - The city's highly touted "central park" development will likely be delayed, as developers face a difficult task signing retailers on to the project in light of the sluggish economy.

City leaders say as a response, they've slowed down the process of relocating Boeye Reservoir, a key component of the project.

Last year, developers with Henry S. Miller Sustainable Partners presented their preliminary plans for a 67-acre retail and residential complex, set to be located above what is now the Boeye Reservoir near the McAllen-Miller International Airport.

But as the country faces an economic slowdown it appears the project won't begin until later than originally anticipated.

"The potential developer is recognizing it's going to be difficult to get enough of his prospective tenants in there over the next year," said McAllen City Commissioner Scott Crane. "The best estimate is it's been postponed about a year. That's a moving target."

The development, often touted as the Valley's version of the San Antonio River Walk, would feature a mix of boutiques, restaurants, nightclubs and museums surrounding a park.

Mayor Richard Cortez lauded the plan during his "state of the city" address earlier this year and city officials have praised it as a future revenue stream for the city.

Officials planned to move the reservoir south of the airport over the course of 18 to 24 months. Now, that $50 million project is anticipated to take three years, said City Manager Mike Perez, though the cost could go down a few million dollars due to a longer timeline.

"The faster you do it, it costs you a little more," Perez said. "If you can space it over time, you can do it more efficiently."

Jim Kastleman, CEO of the development company, said it's a "challenging time" for retail.

"Let's put it this way," Kastleman said. "We're not going to lose sleep if they slow down the pace."

Retail sales figures in the McAllen area are slightly down this year, and nationwide, retail sales declined in July and August,

Perez said work will begin on the reservoir project within the next two months.

Once completed, it would likely take the city another 10 months to build the infrastructure on the old reservoir site, Kastleman said. At that point, work on the development could begin.

"It's a prime location for development," Perez said. "We just need to wait for the economy to come back."

Kastleman said he met with city leaders last months, where the involved parties "renewed our vows to the site."

"It's not a matter of if it's going to happen," Perez said. "It's a matter of when it's going to happen."