SPECIAL REPORT
Texas Border Business
By Roberto Hugo Gonzalez
Picture: L-R: Laura Warren, President of McAllen Rotary Club south, Mike Blum, Managing Broker with NAI Rio Grande Valley
“We’ve got our struggles; things are not perfect, but compared to other places in the country the Valley is doing pretty well,” Mike Blum, Partner and Managing broker for NAI-RGV stated during a presentation at the McAllen Rotary Club south.
He also said that the employment losses in the nation will increase during October or November to 10 percent. “Manufacturing employment dropped to the lowest that it has been in years.” He added. Unemployment rate nationally in August was 9.7 percent so indicated his power point presentation.
In long term unemployment, the number of people unemployed 27 weeks or more is 24.9 million in the nation. “Those aren’t really great facts, but they are the facts.” he said. He also pointed out that locally there has been a good change in the unemployment rates. He reminded club members that a few years ago the unemployment rate for Hidalgo County was 18 percent. “So 11 percent is good under the circumstances,” he stated. He added that McAllen’s unemployment is 7.4 percent. The combined figures for unemployment in Hidalgo and Cameron Counties totaled 11.5 percent.
He said those figures are only a little bit worse than the national stats. He went on to say that in the building permits things are a lot different. In 2006, Hidalgo County registered 6,400 single family permits issued; in 2007 it dropped to 4,800 permits and in 2008 to 2,900 permits. “Huge drop off in single family home permits,” Blum stated.
According to him, McAllen is different due to community and business leaders that have made amazing decisions since 100 years ago. He added that McAllen has had a treasure chest of people of all walks of life and all economic stages that adopted a philosophy and a shared vision as well as a common sense set of guiding principles. “Those principles were: if it is good for business and good for the city, they did it,” he said.
Chronologically Blum pointed out that over a period of 100 years up to now; city leaders have made important decisions that have been great for the city. Back in the early days, during McAllen‘s infancy, the city fathers invited the military to establish a military base called College Heights, off of Houston and Bicentennial. “If you ride through that neighborhood you can see the circular layout and the street pattern like any army base in the United States.
During the early sixties the city bought the privately owned bridge Hidalgo/Reynosa and the rest is history he said. They created foreign trade zone number 12, becoming the first to be inland. “This was a radical departure from normal concepts of foreign trade zones,” he explained.
And in 1979, this city sold the rights to provide health care in the former McAllen General Hospital to the Private Sector. The city got out of this industry when it was the right time to do it. “Thirty years later look at our medical community south and north McAllen or south of Edinburg,” he stated. Blum said that all that happened in the last three decades.
He went to say that the City leaders also invested in education. The city had a site for a future hospital and they made it available to the newly created Texas State Technical College (TSTC) from Harlingen and created a branch in McAllen. He said that they continue to invest in education by the creation of South Texas Community College, which is now South Texas College. “This is an amazing story in itself, they have grown from 600 students to more than 27,000 in a short period of time,” he said.
They also expanded McAllen Miller Airport and now it is about to go through a new expansion. He said it is not a McAllen airport but a regional airport. The city also acquired La Quinta Mazatlan, an old house on a big hill and not only renovated it but created a world birding center and they turned it into a true world class destination for people who come to McAllen.
They acquired land to build a new convention center and they did it with cash, no debt. The city sold land to SIMON to build the Palms Crossing Shopping Center, which made it possible to build the convention center.
He said that on the horizon there is another project, to build an automobile manufacturing plant in the McAllen area. “This is still a deal in process, but it is closer than you can imagine,” he said. According to Blum, these are examples that set the stage for McAllen to be the progressive location that it has become. TBB
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