Just a little over two weeks after Mario Lozoya took over the reins as CEO of the Greater Brownsville Incentives Corporation (GBIC), he noticed something in its assets that looked funny.
Adjacent to 300 acres of land in north Brownsville that the GBIC had set aside for an industrial corridor and bounded on the southern edge by the Union Pacific Railroad, on the west by Old Alice Road by the Sports park, and on the north by Cameron County and the Rucker-Carrizales Correctional facility, the Community Development Corporation of Brownsville was planing to build a residential development on 215 acres it owns there. (Click on graphics to enlarge.)
This immediately raised red flags with Lozoya, and with representatives of the Union Pacific Railroad.
Lozoya feared that the approval of the residential development would result in a "devaluation" of the industrial corridor since major industry would likely not use the industrial corridor due to impending residential development.
And the railroad objected to the CDCB plans fearing that – having just abandoned rail rights-of-way in the city to remove its operations from residential areas – it would now have a major residential development just north (and down wind) of its switch yards.
That residential area would be directly in the path of the prevailing winds in the event of a chemical spill or other disaster.
On August 7, the CDCB had its proposed rezoning application considered by the city commission during a public hearing. The proposal read: Public Hearing and ACTION on FIRST READING on Ordinance Number 235-2018-028, to rezone from Dwelling “Z” (DZ) to Dwelling “G” (DG) for a 143.5 acre Tract of Land, more or less, out of a portion of Lots 42, 43, 44, 51, 52, 53, 54, 55, 61, 62, 63, 64, and 65, Palo Alto Groves Subdivision No. 1, in Share 22 of the Espiritu Santo Grant, located near Old Alice Road. (District 3)
Ana Hernandez, Assistant Planning Director, gave a brief explanation of the resolution. Upon motion by Commissioner Rose Gowen seconded by Commissioner Joel Munguia and carried unanimously, the public hearing was closed. Commissioner Ben Neece moved that Resolution Number 2018-038, certifying that notice has been provided by Community Development Corporation of Brownsville; expressing no objection to the proposed application for Casitas Palo Alto; and authorizing such other actions necessary or convenient to carry out this resolution, be approved.
That was on August 7, the same day the city commission approved the GBIC expenditures and contract for Lozoya. Then, after the item on the residential subdivision was approved on first reading, Lozoya discovered that the 300-acre GBIC industrial corridor was threatened with "devaluation" by the approval of residential development there. The GBIC acquired the 300 acres in 2010, seven years before the CDCB got title to the 215 acres, 143.5 of which it was requesting rezoning.
When the item came up for the final and second reading, commissioner Cesar de Leon, also a GBIC member, had the item pulled an tabled based on Lozoya's objections. That's where the matter stands today.
And other questions have also been raised about the application for a Tax Reinvestment Zone (TRZ) for the project bu the CDCB, which wold lee the project keep any increment in tax revenue using the benchmark for taxes now, before the project is built. The type of TRZ designation in the application allows the CDCB to use the funds anywhere in the state, not just in Brownsville.
But questions abound about the real-estate dealings and the apparent go-ahead given by former GBIC interim CEO Gilbert Salinas, Interim City Manager Michael Lopez, and perhaps even Mayor Tony Martinez to the project. Both the former GBIC chair (Jessica Tetreau) and current GBIC chair De Leon said during a meeting that neither Salinas, Lopez, the city planning staff, or the mayor mentioned that the residentail development.
A tax office search of the CDCB properties proposed for rezoning indicates that the properties were bought from Bert F.W. Wheeler, with a Houston address, and named as trustee of M.D. Wheeler.
The tax rolls indicate that the address of the owner changed on Nov. 28, 2017.
Now that it has come to light that the CDCB and GBIC are at cross purposes with each other, the pressure is on the GBIC board members to approve the rezoning changes and endanger their plans for the industrial corridor. The CDCB is employing every tool at its disposal to have the GBIC board members (commissioners Tereau and De Leon) change their mind and approve the residential development plans despite their effect on the industrial development plans for the area.
One of the tools is none other than former city commissioner Melissa Zamora (now Landin), who is employed with the CDCB Public Relations and Marketing Coordinator. Sources say she has been lobbying city commission members to ignore the objections by Lozoya and the GBIC and approve the rezoning.
The new GBIC CEO was very clear in his comments to the city commission on the issue.
"If you want to build residential, go ahead. Let me deal with industrial development. What is it that you want?"
If the GBIC's plans for an industrial corridor were formed in 2010 and the CDCB acquired the property for residential development in 2017, shouldn't the GBIC plan take precedence?