City Council approves Resolution for Application of a Joint Private-Public Works Project with Economic Development Administration
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc
Maverick County real estate developer Paco Mondragon petitioned the Eagle Pass City Council to approve a resolution supporting a joint private-public real estate development project with the United States Department of Agriculture (USDA) Economic Development Administration through the State of Texas EDA Office in Austin, Texas at the City Council’s special meeting held on February 18, 2014.
Mondragon has been working on this real estate development project for many years in Eagle Pass. A private for-profit company owned by Mondragon and investors seek to develop both a commecial and residential real estate project that will provide new jobs and property tax base for local citizens and entities. Mondragon seeks financing for this real estate project from the USDA’s EDA program which requires a joint private-public venture to apply and obtain the federal financing or funding to build and develop this project.
Currently, Mondragon has set in place this important job generating venture with the the opening of a Tractor Supply Store on Second Street and the plans call for a residential subdivision, a hotel, and other business ventures such as restaurants and retail stores in the vicinity of Veterans Boulevard and Second Streets.
During the City Council February 18th meeting, Leodoro Martinez, Executive Director of the Middle Rio Grande Development Council, accompanied Mondragon and stated that they had been approached by Mondragon to submit an application for funding from the USDA Economic Development Administration for a joint private-public project to be initiated by the City of Eagle Pass, Texas the public entity. The Middle Rio Grande Development Council is assisting Mondragon and the City of Eagle Pass in applying for these USDA EDA funds for the private-public real estate project.
“ During our research we stated to Mr. Mondragon that it would require an approved resolution from the City of Eagle Pass. It would also require strong assurances within the agreement. It is not uncommon to have an application that would have a private developer and a governmental entity, conjoining to submit such an application,” said Leodoro Martinez.
Martinez also stated that the Middle Rio Grande Development Council has submitted this type of combined applications before in other communities within the Middle Rio Grande Development Council.
“ We (MRGDC) would be glad to submit this application if the City of Eagle Pass will be the applicant,” stated Martinez to the Eagle Pass City Council.
Martinez also stated that MRGDC administers this type of applications throughout the region.
“ It is important that the details be underlined and understood by the City of Eagle Pass and the Developer (Mondragon) of what is expected of them,” said Martinez.
“The important point of interest of this joint private-public application is that the matching funding required will be provided by the private developer, Mondragon. This is the biggest difference from typical applications that are 100% public entity sponsored,” stated Martinez.
“The specifics of the application would have to be worked out by the engineer and both parties,” added Martinez.
Middle Rio Grande Development Council will work closely with Mondragon to assure that all the detailed information required for this application is readily provided, added Johnny Ruiz of MRGDC.
“In our discussion with Mr. Mondragon he has indicated that all that work has been done,” said Ruiz.
“There are many details that must be addressed prior to submitting the application such as concerns that public works may have and any other concerns that the planning department may have as well,” stated Ruiz.
“The actual turnaround to find out if the funding will be approved is between 30 to 45 days depending on if any more information is asked for by Economic Development Administration,” stated Ruiz.
Mondragon told the Eagle Pass City Council that there is interest from two restaurants, a Day Care, and a hotel in opening businesses in this real estate development.
“The main focus of the road to be developed will be in the northern area that will connect Second Street to Encino Park Subdivision. This will also help and alleviate the problem with the traffic flow in and around Armando Cerna Elementary,” said Paco Mondragon.
“We will also be submitting for a green road certification for this roadway which is a road that is tested to its specifications under the Green Road Rating System,” added Mondragon.
“Without the joint private-public partnership of MRGDC, the City of Eagle Pass, and the private developer, it will be very difficult to construct this road,” added Mondragon.
Eagle Pass Mayor Ramsey E. Cantu expressed his interest and concerns on behalf of the City of Eagle Pass to insure that everything is handled in the correct manner for the benefit of all the parties and the citizens of Eagle Pass.
“I can say that this has been a big issue for the residents of this area and feel it will be extremely beneficial for this area and our city. But it also important that everything is in check as the City Council is always pro-economic development,” stated Mayor Cantu.
After further discussion about the details and concerns for submitting a joint private-public project application and receiving assurances from both Mondragon and the Middle Rio Grande Development Council, the Eagle Pass City Council voted unanimously in approving a resolution in support of this joint private-public real estate project between Mondragon and the City of Eagle Pass in seeking funding from the USDA EDA office in Austin, Texas.
The proper documentation will now be presented to the City of Eagle Pass to move forward with the necessary steps for application submission and to address any other concerns.
