SAN BENITO, TEXAS – Six years after the initial proposal, the Resaca Village has not lived up to its promise to create 300 full- and part-time jobs and generate $10 million in annual sales.
In 2017, the San Benito Economic Development Corporation (SBEDC) worked with VARCO Real Estate San Benito LLC to develop the 9.87-acre waterfront property along the resaca. VARCO, the real estate developer, promised they would bring in 20 new businesses, office spaces, and a community dock by the resaca in San Benito by 2022. (Click here to see letter from VARCO representative.)
In return for VARCO fulfilling those commitments, SBEDC would grant the developer the land for one dollar ($1) after 2033.
As of January 2025, the Resaca Village remains mostly vacant, unfinished, and lacking the planned features that VARCO promised.
“This project has been dragged on for more than five years, which means the city is losing valuable property and sales tax revenue that could be used to pay for improved streets, public safety and many other services our citizens need,” said San Benito City Manager Fred Sandoval.
To complete the Resaca Village project and boost job growth, sales, business opportunities and quality of life, the city has proposed buying out VARCO, the developer of the stalled project.
One major obstacle to resolving this litigation in the best interest of taxpayers is VARCO’s claim that their unfinished project in San Benito is worth more than $8 million for the buildings alone.
In contrast, the fully finished shopping centers by the same developer are valued at only $4 million in Brownsville and $6 million in Harlingen, according to Cameron County Appraisal District property records.
“While there have been many twists and turns in this process, one thing that is crystal clear: the project is behind schedule and taxpayers are losing out on the revenue the project would generate for the city,” said Sandoval.
The agreement signed by VARCO in 2018 outlined a phased timeline for the buildings to be completed by 2022:
First Phase: 12,600-square-foot area with a "boardwalk”
Second Phase: 10,000-square-foot area
Third Phase: 10,000-square-foot area
Fourth Phase: 10,000-square-foot area
“As responsible stewards of our taxpayer dollars, we are committed ensure the project’s completion and unlocking its full potential for the citizens of San Benito,” Sandoval said.
