Cameron County Tax Increment Reinvestment
Zone Number One
The Grand Gateway on the Rio Grande Riverfront and Lower Railyard Development
State of Texas Formal Actions – 88th Legislative Session (2023)
At the request and support of Cameron County and the City of Brownsville, the Texas State Legislature has approved bills SB 940 introduced by State Senator Morgan LaMantia and HB 2282 introduced by State Representative Erin Gamez. The purpose of the Companion bills was to obtain the State’s authorization to designate the Rio Grande Riverfront Redevelopment District a State Qualified Hotel Project whereby the State authorized its financial participation in the Hotel Project with the State’s share of the Tax Increment emanating from the Redevelopment District.
The County and City publicly testified before the House Ways & Means Committee endorsing HB 2282 specifically requesting the State’s authorization and to name the legislation, The Lucio – Kristofferson Rio Grande Riverfront Redevelopment Act. Ultimately, the House Ways & Means Committee and the Senate’s Natural Resources and Economic Development Committee unanimously approved the request. These votes were followed by an overwhelming vote of approval by the full House of Representatives and the full Senate as the Companion Bills were incorporated into an “Omnibus Bill,” HB 5012. The Governor then took the actions necessary to make the approved legislation a matter of law.
Project Highlights
Cameron County Improving Our Community
As the Lead Local Public Agency, Cameron County with the CCRMA is Endeavoring to Facilitate Three Important Community Enrichment Benefits:
• The Removal of the Federal Border Fence Between Our Two Bridges,
• Modernize Our Gateway Bridge,
• Upgrade Our River Crossing and Downtown Transportation System to Connect the Traffic Corridors and Hike & Bike Trails
Port of Brownsville
Plays a Supporting Role
In addition to the Port’s significant land rights contribution, the Port Commissioners formally advised the County:
“…Cameron County’s initiative to remodel and expand the Gateway International Bridge into The Iconic Grand Gateway on The Rio
Grande with numerous commercial and cultural elements will foster downtown revitalization have long lasting positive impacts stimulating private sector investment and job creation My fellow Port Commissioners applaud your efforts…”
Riverfront Property Owners
Play a Supporting Role
In addition to the Property Owners’ many interfaces with the USA Agencies and the City Elected & Administrators, they have formally
petitioned the County to act to further their past efforts:
“… Our Petition to Join Forces is rooted in the formal actions taken by the County and the CCRMA. Those formal actions coupled with the many ancillary and complementary actions taken related thereto, including, but not limited to, communications with various State Offices, Port District Offices, Federal Offices, and City Offices, provide additional fortification and foundation for our Petition….”
“Pointedly, the Riverfront Property Owners want our Properties to become the Riverfront Development & Revitalization Project.
Simultaneously, we want our Properties to be developed to their highest and best use to expand the economic & cultural good for our immediate neighbors and our greater community…”
City of Brownsville
Plays a Supporting Role
In addition to the many formal representations, actions, and agreements the City has undertaken with different Public Agencies Government Branches, the Riverfront Property Owners, and Others, the Senior Operating Officer recently Publicly Confirmed the City’s Continuing Participation in the Three Community Enrichment Benefits “… creating the TIRZ should be the purview of the County, not the city, though the City is willing to be part of it once established… That’s the part I want to be clear… we are supportive of working together… but it still would need to take the County implementing that TIRZ that we would then opt to participate in.”
PUBLIC INFRASTRUCTURE PROGRAMMING & COORDINATION
Objectives of
Cameron County TIRZ #1
As the Lead Local Public Agency Partner, the County is Facilitating Coordinating Three Public Infrastructure Programs:
• Removal of the Federal Border Fence Between the Two Downtown Bridges by Assisting in the Programming of the Reconfiguration of the Land Parcels Fronting the Rio Grande
• Removal of the antiquated Dual Earthen Levees and replace them with a Modern Concrete Levee that also Supports the Riverfront Boardwalk
• Upgrading the River Crossing and Downtown Transportation System to Improve Increase Throughput and Operational Efficiencies with New Improvements
• The Modernization Expansion of Our Gateway Bridge with Special Attention Dedicated to Pedestrian Crossers Bicyclists
These efforts are directed to Facilitate the Construction Financing of the Public Improvements Necessary to Construct and Operate the new Gateway International Bridge and the Rio Grande Riverfront Boardwalk.
Reprogramming the
Riverfront Land Parcels
The Riverfront Land Parcels are Currently Underdeveloped and Constrained by the Earthen Levee Flood Protection System and the
Federal Border Fence.
The Local Agencies are Authorized to Reprogram the Land Parcels to Facilitate the Construction of an Upgraded and Useful Levee
System that Promotes Economic Cultural Development by Constructing the Rio Grande Riverfront Boardwalk through three Federal
Programs:
• The American Heritage River Program
• The DHS CBP Federal Border Barrier Removal Program
• The U.S. Mexico Border & River Management Program
Reprogramming
The Grand Gateway Bridge
The County & RMA are Authorized to Reprogram the Gateway Bridge by their Ownership of the Bridge and by the USA Recently Capitalizing the Remodel & Expansion and by Commencing the Process by assigning Federal Agencies and personnel.
Contemplated Features of the Reprogramming:
• A New Pedestrian Walkway puente peatonal Separated from Autos and Exhaust Fumes
• Features for Pedestrians with Disabilities
• Modern Personal Family Hygiene Facilities for Pedestrians Bicyclists
• Food Beverage Facilities for Early Morning Late Night Pedestrians Bicyclists
• Features for an Enjoyable Walk Across the River, e g weather protection, photo-ops, etc.
• Urgent Care Facilities with Medical Personnel on site
• A Transportation Center with immediate adjacency to the Pedestrian Bridge for Safe Efficient Pedestrian Drops Retrievals Free Jitney Rides Downtown For Hire Car Services for Longer Rides
Reprograming
Transportation Corridors
To-From the Bridges
The County and the Regional Mobility Authority are Reprogramming the Transportation Elements Currently Approved in Concept and of Public Record.
• The Historic Corridor (i. e., E. 13th to Sam Perl + the E. St Charles Curve)
• The Civic Corridor (i.e., E 11 th St as it Approaches Crosses Exits the Railyard)
• The Cultural Corridor (i.e., E. 6 th & 7 th St as it Approaches Crosses Exits the Railyard)
• The Palm Corridor –(New Corridor Directly Connecting Palm Blvd to the Riverfront)
• Mexico Blvd Corridor (From B&M Bridge to E. 6 th & 7 th plus the Elevated Train Tracks to RailYard)
• International Blvd Corridor around the Gateway Bridge)
• The Hike & Bike Corridor f rom Palm Blvd to the Rio Grande Riverfront + to and across the two Bridges & the Elevated T rain T racks at B&M Bridge)
• Railyard Corridor (Ingress & Egress for the Unused, Landlocked, Partially Contaminated Land)
• E. 6th & E. 7th St Connectors to Mexico Blvd
• Sam Perl Blvd Connector to Rail yard (to all Identified Corridors & D/C Street Connector)
Government Authorizations Collected & Ready to Advance
Federal Agencies & Branches
Issued Authorizations to Participate
• US President’s Executive Order Designating the Rio Grande between the two bridges an American Heritage River and Ordering All Federal Agencies to Cooperate and Facilitate Locally Driven Initiatives to Economically Culturally Develop the Rio Grande Riverfront
• US Commerce Department Making the Findings that the Rio Grande between the two Bridges meets the Unique Definition of an
American Heritage River.
• US State Department IBWC US Section, with their counterparts in Mexico, Executes the Diplomatic Agreement to Remove the Earthen
Levees and Construct a Concrete Levee in a Specified Location and of Specified Size.
• US Department of Homeland Security and US Customers & Border Protection Executes the Agreement of the United States with Local
Agencies to Remove the Federal Border Fence, Adjust Riverfront Property Lines, and Exchange Riverfront Property Interests.
• US District Court for the Southern District of Texas Orders the Parties to the Lawsuit to Perform the Terms of the Order and the Agreement of the United States with the Local Agencies.
Cameron County & CCRMA
Participation Resolutions,
Orders, and Contracts
December 29, 2015 Order No. 2015O12061 to establish the Transportation Reinvestment Zone Number Six to Develop Transportation Projects funded by a portion of the tax increment account funds.
December 29, 2015 Interlocal Agreement No. 2015C12355 to contract the CCRMA to Administer, Develop and Construct the Approved Projects for the Transportation Reinvestment Zone Number Six.
July 7, 2020 Resolution No. 2020R07053 to Improve the Safety of Pedestrian Bicycle Crossings at the Gateway International Bridge, to Develop the Unproductive Areas Between Gateway Bridge and B&M Bridge, to Improve Flood Protection and the Traffic Flow at the International Crossings, to Coordinate the Activities among the Federal Agencies, Local Agencies, and State Agencies, and to Provide Economic Incentives Through the use of Local State Tax Increment Reinvest Zone Programs.
September 29, 2020 Resolution No. 2020R09073 to implement the terms of the Federal Court Order in Civil Action No. B-08-27, ordering the removal of the border fence between the bridges, and adjusting the boundaries of the subject property. This is done to implement the US MX Diplomatic Agreement, which authorizes the re-engineering of the Flood Protection Levee, Removal of the Dual Earthen Levees, and the making of the Boundary Adjustments to the Subject Parcels, to form the Levee Improvement District upon the Property Owners Petition filing, to facilitate financing the Construction of Infrastructure necessary to Economically Revitalize the Riverfront Environment.
October 27, 2020 Contract No. 2020C10371 With Exhibits Amendment to the County Contract with CCRMA Dated Dec 29 2015 No. 2015C12355 wherein “Additional Projects” relevant to the Riverfront Boardwalk are identified and assigned to the CCRMA to plan, develop, and implement.
October 29, 2020 Contract No. 2020C10371 Reciprocal Approval by CCRMA to Amendment the Contract 2015C12355 with County Identifying “Additional Projects” which CCRMA is Responsible to Administer and Advance.
July 26, 2022, ORDER NO. 2022007038 With Exhibits – to Designate Tax Increment Reinvestment Zone Number One of Cameron County, a/k/a “Cameron County TIRZ#1.
November 22, 2022 Order No. 2022O11048 for Public Hearing on Petition for Creation of Rio Grande Gateway Levee Improvement District of Cameron County Pursuant to Texas Constitution Article XVI, Section 59, and Texas Water Code Chapter 57.
City of Brownsville
Formal Actions and Agreements to
Participate & Cooperate with
Federal Agencies & Branches,
Among Other Interested Parties
The City has Approved, Adopted, made Representations and Signed Formal Actions Resolutions, and Agreements to Participate and Cooperate with the Actions of the Federal Agencies Branches, the Brownsville Port District, the State of Texas, and the County, Consistent with the contemplated Riverfront undertaking, all of which are of Public Record at the City and elsewhere
July 26, 2022, ORDER NO. 2022007038 With Exhibits – to Designate Tax Increment Reinvestment Zone Number One of Cameron County, a/k/a “Cameron County TIRZ#1.
State of Texas
Formal Actions of the 87th
Legislative Session (2021)
Through the active Leadership of Senator Eddie Lucio Jr, the State Legislature Responded to the Requests of the Local Agencies by Voting as Follows:
• The Senate Committee on Economic Development Voted Unanimously to Authorize the State to Financially Participate with Local Agencies in the Riverfront Boardwalk by Reinvesting the State’s Tax Increment Generated from the Qualified Hotel Zone
• The Senate Committee on Natural Resources Voted Unanimously to Authorize the State to Financially Participate, as described above
• The House Ways and Means Committee Voted Unanimously to Authorize the State to Financially Participate, as described above
• The Texas Senate Voted 28 2 to Authorize the State to Financially Participate as described above
• Pending Action Schedule for Members
Knowledgeable Business Operators Briefed and Poised to Advance
Hotel Rio Grande
with Conference Center
• 4 Star Hotel with Conference Center
• Luxury Apartments with Access to Hotel Amenities
• Restaurants Fine Dining, Lobby Café, Roof Top Restaurant & Bar, In Room Dining
• Trellised Riverfront Patios for Catered Picnics & Personal Soirees;
• Conference Center Amenities
o Formal Boardroom
o Grand Ballroom
o Pre-event Assembly Areas
o Catering Services
• International Business Center Services
o Trained Translators
o Presentation Services
o Presentation Equipment
• Tourist Information Center:
o Visitor Activities Coordination Regionally
o Cross Border Transport Services
Retail Shops & Business District
This is the people’s place, where the diverse socio economic and cultural strands of urban life actively participate in living It’s the
common space where laborers, businesses, shoppers, tourists gather and meet The Riverfront Boardwalk revitalizes this historic location of commerce and culture by converting the distressed area into a thriving place that nourishes and uplifts life for all who
work, shop, play, and pray in the renewed, life affirming Riverfront filled with activities.
The Collection of Businesses is expertly selected and curated within the integrated village campus to provide the synergy of commerce and culture:
• National Named Brand Retailers
• Local & Regional Retailers
• Supermarkets + Ethnic Groceries + Pharmacies
• Personal Services & Salons
• Restaurants + Cafes + Taquerias + Burgers & Brewpubs
• Retail Banks, Finance Businesses
Economic Power Delivered to Region A Professional Marketing Staff Cultivates & Increases Cultural & Economic Expansion in the Region with Businesses in Matamoros using Concierge Services for Dignified Transportation for Tourist & Shoppers in US & MX, Cross Promoting Shops + Hotels + Restaurants + Casinos , etc.
Entertainment District
The Great American Cultural Revival & Musical Revue – Kris Kristofferson, a Texas Favorite Son, was born & raised a mile from the Riverfront, expect his name to grace the Marquee. The District delivers performance facilities bandstands, concert venues, Kris’
Legacy Gallery, and Kris’ Butik.
Riverview Park – Operated in the grand tradition of world class European amusement parks with amusements placed among gardens, picnic areas, and fairs open to the public for recreation and entertainment. Built for long lasting operation, providing attractions for all age groups amusements, attractions, spinning thrills, games of skill, & sweet treats on the Boardwalk, a number of pleasant accents to life’s primary activities.
Economic Power Delivered to Region – A Professional Marketing Staff Cross promotes with other businesses Sister City Events for
Arts & Cultural in the Cultural Corridors of Matamoros & COB + Gladys Porter Zoo + Children’s Museum + SPI Water Park + SPI Beach Activities + Concerts + Bagdad Beach Camarones frescos y cervezas en la playa bajo palapas, ¡magnífico! a la Baja California!
Residential District
The Residential District offers a unique collection of residences allocated among a diversity of unit types, locations, and price points that appeal to a broad spectrum of buyers and renters.
The diversity of age and socioeconomic positions among the residents increase the District’s resilience to change and desirability as the place to live, work, shop, play, and pray.
• The Riverfront – Delivers luxury living with amenity packages that appeal to those on a Champaign budget
• The Bridges – Delivers quality living with amenity packages that appeal to those beginning their careers
• The Grand – Delivers good living with amenity packages perfect for college students and those on a beer budget
• One Americas – Place affordability with amenity packages perfect for young families.
Private Sector Participation
The County & Other Public Agencies Rely on the Guidance and Advice of a Developer Investor Group with the Right Experience
The highly experienced Redevelopment Investor Group upon whom the County and other Public Agencies rely for guidance and advice specializes in urban renewal.
The Redevelopment Group is known for its successful conversion of unproductive land and buildings into thriving villages where people renew their desire to live, work, shop, and play.
The Group advises that it combines vision with careful and insightful risk analysis by using detailed market analytics and verified financial modeling tools before proceeding.
The Group explains that the art of the business is in the vision of foreseeing a place where businesses want to operate. The
science of the business is in identifying, securing, and curating the synergistic mix of operating businesses. The Redevelopment Group has done the predevelopment work to shape the Legal, Physical & Financing Structures for the Rio Grande Riverfront Boardwalk.
The Redevelopment Investor Group has applied its proven methods of analysis to underwrite the multiple sources of revenue production and corresponding cash flow analyses, from which the Group has advised the County and the other Public Agencies of two important facts:
• The Structure Works We have employed the same legal & financing structure several times. We used it in our analogous project adjacent to the Rio Tijuana Port of Entry, The Shops at las Americas
• The Numbers Work Our painstaking analysis proves the Grand Gateway is economically viable.”
Additionally, the Developer Investor Group a dvised the County and other Participating Public Agencies that it is willing to invest the capital funding to finance The Grand Gateway Hotel Rio Grande & Riverfront Boardwalk pursuant to a public private partnership with Cameron County and other Public Agencies, provided the Public Agencies can actively help to facilitate the Reprogramming of the land parcels and the Transportation System, as both fundamental public infrastructure elements are generally described above.
Legal and Financing Structure
The Rio Grande Riverfront Boardwalk is expected to use the common f inancing m echanism described by Texas A&M May School of
Business as the Developer Reimbursement Method It’s the same method used at the Rio Tijuana Port of Entry The Shops at Las
Americas.
The Developer Investor Group and the County are relying on the Economic Financial U nderwriting to Support the final Recommended Project once the Reprogramming Exercises are Sufficiently Stabilized and Completed The Recommend Project Submittal will stipulate
- The Lead Experienced Developer Investor Group Invests Upfront 100% of the Capital Funds and Constructs the Publicly Owned Infrastructure;
- As When the Newly Generated Group of Taxes is Collected by the Participating Public Agencies, the Participating Public Agencies Jointly Reimburse the Investor Developer Group for the Actual Costs of the Public Infrastructure through a long term fixed rate Tax Increment Financing Repayment Agreement for which the General Fund of the Participating Public Agencies is Not Liable
Local Business Expansion
The Rio Grande Riverfront Boardwalk is Expected to Significantly Increase Local Business Revenues
• Downtown Business Revenues Market Analytics Indicate Revenues should Double Triple
• Professional Services The Project expects to enter into Contracts with Architects Engineers Lawyers Accountants, Real Estate Brokers and Media PR Grps
• Building Construction Services The Project expects to enter into contracts with General Sub Contractors, Fabricators, Building Materials Building Supplies
• Post Construction Services The Project expects to enter into Contracts for Building Materials Supplies, Building Landscaping Maintenance Repairs
• Communication Services All Businesses within the Project need Marketing & Advertising Services, Customer Care Services & Shipping Services
• Business Banking Services All businesses within the Project need Accounting Services, Insurance Services, Financing Services, and Legal Services.
Jobs & Economic Benefits
The Rio Grande Riverfront Boardwalk is Expected to Deliver a Significant Number of Jobs
- $711,585,000.00 the Indicated Annual Economic Impact on the Local Region.
- 1,000 to 1,500 the Indicated Number of Pre Construction and Construction Jobs. It includes White Collar, Grey Collar, Blue Collar, Green Collar
- 4,000 5,000 the Indicated Number of Post Construction Jobs. It includes Entry Level, Executive & Managerial Level, Pink Collar, & Student Interns.
Footnote The County other Public Agencies rely on the Developer Investor Group to update the Economic Benefits Financing Analysis of the Project as the Infrastructure Matters Solidify and Marketplace Conditions Change
Cameron County Tax Increment Reinvestment Zone Number One
- “The County Commissioners and its professional staff are committed to improving our quality of life by taking intelligent, forward-thinking actions, and supplementing our experience with knowledgeable and experienced people and companies.”
- “During the next several months, the County expects to lay the foundation to achieve significant public benefits during the next few years.”
- “The County expects to expand and modernize the Gateway International Bridge complex into a resplendent state-of-the-art transportation river crossing, with special features and attributes dedicated to our millions of local and visitor pedestrians and bicyclists, that is safe and healthy, dignified and easy to navigate.”
- “The County expects to re-engineer the earthen flood protection levee system pursuant to and consistent with the three Federal programs, 1) The American Heritage River Program, 2) The Department of Homeland Service (DHS) Boarder Barrier Removal Program, and 3) The U.S.-Mexico Border & River Management Program into an upgraded and useful levee system that promotes economic development of the Rio Grande Riverfront.”
- “The County expects the Rio Grande Riverfront when completed to support multiple cultural features that reconnect our people with our Rio Grande Riverfront Heritage with several exciting entertainment venues.”
- “The County expects the Rio Grande Riverfront to support the Hotel Rio Grande and The Villas Rio Grande with shops, restaurants, offices, luxury condominiums, workforce & student housing, and affordable apartments.”
Cameron County TIRZ Number One
- December 29, 2015 Order No. 2015O12061
- December 29, 2015 Interlocal Agreement No. 2015C12355
- July 7, 2020 – Cameron County Resolution No. 2020R09053
- September 29, 2020 – Cameron County Resolution No. 2020R09073
- March 24, 2021 – Brownsville Navigation District’s Endorsement of the Grand Gateway development
- October 27, 2021 – Cameron County Contract No. 2020C10371 with the Cameron County Regional Mobility Authority with exhibits
- July 26, 2022 – Cameron County Order No. 2022O07038 with exhibits
- November 22, 2022 Order No. 2022O11048
“The County expects to follow the same financing mechanism used at other Federal Ports of Entry – The private sector provides 100% of the necessary capital funding upfront and it constructs the County’s facilities, then, as and when the newly generated taxes (Tax Increment) are collected the County reimburses the actual known costs of the county facilities.”