Construction for Mercedes Palms Shops beginning this fall

By CLARISSA MARTINEZ/VALLEY MORNING STAR

January 21, 2008 - 6:40AM

MERCEDES — “For sale” signs are still popping up in empty fields along Expressway 83 — potential locations for building projects and development. Eduardo Zigib, a developer from Mexico, heard about the changes here in the city since the opening of Rio Grande Valley Premium Outlets. Zigib is now developing The Palms Shops of Mercedes that will begin construction this fall.
Mike Blum, partner and managing broker of NAI Rio Grande Valley, said the first phase of the development will be construction of a 36,844-square-foot plaza. The total space available is some 34,690 square feet for the 14 potential retail suites.

“This is the plan right now,” Blum said. “It could change in the future, but that’s what we’re working on.” The development is being advertised as property located near the Chelsea outlet mall and will rent spaces to both chain and independent stores, Blum said. “I think people will definitely take advantage of the location,” Blum said. “The people in the area are looking for this.” And with nearly half a mile of land purchased by Zigib to be used for the development, the plaza could continue to grow for several years.

“It could have from three to four phases, depending on the reaction from the community,” Blum said. Blum said in 2005, the sales tax revenue in Mercedes was $1.3 million. It rose to $1.5 million in 2006, then in 2007, the sales tax revenue jumped to $4.8 million, he said. “Chelsea group saw the area and had this planned,” Blum said. “And there are retail officials who want to be here in the Rio Grande Valley.”

Zigib said he views The Palms Shops as offering a different shopping experience, and is excited to see how the final design of the development turns out. “It will be unlike most of the shops the region has seen,” Zigib said. “The design is very modern with clean lines.” Zigib said the new development will also play a role in the continuing retail growth that is attracting tourism and commerce from Mexico. Zigib said McAllen paved the way, and the city of Mercedes will most likely see similar developments. “(Mexican nationals) are seeing how the area is growing,” Zigib said. But the project is still in the early phase, Zigib said.

The city is currently working with the project to provide water, sewage and drainage lines to the location, City Manager Ricardo Garcia said. The plans are still being worked out, but the administration is focusing on bringing retailers to the area, he said. But the city is not ready to reveal any other new projects, Garcia said. “We’re working, though, and we’re looking forward to what will be a very good year for Mercedes,” Garcia said.