Booming Business

Visitors help spark increase in Mercedes' yearly tax revenue

July 6, 2009 - 10:25 PM

By GABRIEL SALDAÑA/Valley Morning Star

Since opening in November 2006, Rio Grande Valley Premium Outlets have sparked a nearly 600 percent increase in the city's yearly tax revenue, City Manager Richard Garcia said. A boost in visitors attributable to the outlets has also led to new business development in the city, he said."We've already experienced that," Garcia said. "This has become a travel destination for people in South Texas but also our neighbors to the south, all of Northern Mexico, even in the interior of Mexico. We have shoppers coming from Veracruz and Chiapas and some other states in the interior. "Because of that, we've attracted other businesses like hotels. La Quinta (Inn) which has been in operation for a couple of years and now La Copa Inn opened its doors a couple of days ago."The outlets were built in three phases, the last of which was completed last year, Garcia said.

The Chelsea Property Group has also secured space for possible expansion in a phase being referred to as 3B. But Chelsea has no immediate plans for such an addition. "There is room for Phase 3B so we do have room to grow if we chose to and we'll certainly keep everyone updated should we make that decision in the future," Michele Rothstein, Chelsea Property Group senior vice president of marketing, said in a statement.

Garcia said that in the event of expansion, phase 3B would likely consume between 60,000 square feet and 80,000 square feet. "It depends on demand," he said.

Currently the mall is spread over 578,000 square feet occupied by 140 stores, the most recent of which is Saks, Rothstein said. Other stores include Adidas, Burberry, Coach, DKNY, Kenneth Cole, Nike, Polo Ralph Lauren and Sony. "Now that the center is 140 stores, it is considered a true shopping destination and we can now serve even better than before both area residents and visitors from the U.S., Mexico and beyond," Rothstein said.

Garcia said Mercedes also expects a boost of business along Expressway 83 near the mall."We're looking at a couple of other opportunities along the expressway corridor," he said. "Obviously the outlet mall has been the catalyst for growth along the expressway corridor for the city."

"We have been happy to see that the center has been a stimulus for economic growth in the area," Rothstein said.