Mission: Killam Development Inherits TIRZ Funds Tied to South Mission Real Estate
Feature Illustration: Concept rendering of a multi-modal residential neighborhood in El Milagro, the Killiam Development Inc. project south of Mission.
Last UPDATED: 4-14-2021
by Adolfo Pesquera
Mission (Hidalgo County) — Killam Development Ltd.’s 3,400-acre stake south of Mission got a major boost from city leaders with the announcement Monday that $13 million would be made available for infrastructure.
The three related government entities–City of Mission, Mission Economic Development Corp. and the board of directors of a tax increment reinvestment zone (TIRZ)–agreed to transfer beneficiary ownership of TIRZ funds that were designated for 180 acres within the Killam Development property.
The roughly $13 million available will be dedicated to Phase I for new roads, water and wastewater infrastructure. This TIRZ was established in 2001 for the benefit of the previous landowner, Hunt Valley Development.
Upcoming Bids: Killam Development anticipates putting a $2 million road improvement project up for bid in approximately 60 days. There is also a $3 million drainage project in the industrial park sector that is expected to be bid in approximately six to eight months. For more information, go to the VBX Project link below.
Major improvements are planned for Los Indios Road this summer.
The TIRZ allowed for $35 million of infrastructure investment over 30 years for Sharyland Plantation. Approximately $22 million had been invested for construction of lift stations, water and wastewater. The remaining $13 million under the cap is now available to Killam.
Killam acquired 3,400 acres in 2019. The land straddles the southern regions of the cities of Mission and McAllen and includes lucrative site near the Anzalduas Bridge. With its business-friendly climate, infrastructure in place, and capacity to add to the infrastructure, Killam Development saw a clear opportunity to make a long-term investment, said Cliffe Killam, the company’s president and chief executive officer.
“The TIRZ is important because it will give us the confidence to invest in critical infrastructure for our Phase I … we are grateful for the support and excited to break ground on construction this year,” Killam ssaid in Monday’s prepared statement. “We are grateful for the support and excited to break ground on construction this year.”
Killam’s development, which will begin to the west of Sharyland Plantation, has been named El Milagro. The civil site work plans for El Milagro Phase 1 have been completed, Cliffe Killam told the Virtual Builders Exchange. Request for Proposals were recently sent to four Rio Grande Valley general contractors and Killam will award that contract by the end of May, he said.
Rolando Ortiz, Killam’s real estate manager, said there is an emphasis on considering contractors that are based in the RGV. Killam added, however, that as future phases come up for bid, other Valley contractors showing interest and are competitive will be able to provide bids.
The pending contract award is for the roads, water and sewer lines necessary to make ready a 175-acre tract for a housing development that will include single family homes and townhomes. More than 300 single family lots and 100 townhomes are expected to be ready for vertical construction within eight months, and getting into the first quarter of 2022.
The timing for El Milagro Phase 2 will depend on how community responds to the development. If the absorption rate merits a quicker pace, Killiam said, “We can run as hard as we need to.”
Mission City Manager Randy Perez said, “It was important that we continued to incentivize the project to help Killam Development generate results. Killam Development’s project will have a positive impact on our quality of life and will help grow our tax base so that we can do even more as a city for future generations.”
Killam described the master planned, mixed-use concept in 2019 as a “live/work/play” lifestyle community that will feature walkable neighborhoods with trails and parks, connections to entertainment and commercial district, and education centers.
Killam is incorporating feedback received through a series of public workshops they held in January 2020. This was last reported at VBX in this Jan. 9, 2020 article. Five priorities emerged from the community discussion:
Connect to existing communities and recognize the Rio Grande Valley’s unique identity
Increase access to nature, build parks, preserve key farm fields
New development should provide something different
Safe, comfortable, and interesting streets for walking and biking
Adolfo Pesquera (Reporter/Editor) is a veteran news journalist. He has worked for Hearst Corp., American Lawyer Media, News Corp and Freedom Communications. His work has been published in newspapers and magazines across the USA. He is a journalism graduate of UT-RGV. He writes, edits and creates digital pages for VBX.