Valley counties try unified approach to economic development

Jared Janes
November 8, 2008 - 8:10PM

EDINBURG — Global companies looking at the Rio Grande Valley as a potential spot to invest in new operations ignore city and county borders, the region's economic development officials say.
Those officials are asking the Valley's city and county governments to look past them, too.

Eight local governments in Hidalgo and Cameron counties have paid membership dues to join the Rio South Texas Economic Council, a newly formed agency charged with promoting the Valley as a whole to outside investors, said Sofia Hernandez, Hidalgo County's economic development coordinator.

And at least a dozen more entities - from other governments to educational institutions to private enterprises - have indicated they may join the effort as the council's objectives are more clearly defined.

Because the council is still in its organizational phase, Hernandez said, plans for how it will operate and what its final makeup will be have yet to be determined.

But Hidalgo County Judge J.D. Salinas said its ultimate goal will be to foster collaboration among Valley cities and counties to improve the region's ability to compete for jobs and outside investment against other markets in Texas, the nation and around the world.

"We're trying to get a team effort for economic development," Salinas said, noting the "Friday-night mentality" of Valley cities constantly struggling to come out on top.

"The bottom line is, we need to start promoting the Valley as a region if we're going to attract those Fortune 500-type companies."

A VALLEY-WIDE APPROACH

The council, which states in its bylaws that it will "promote the economic expansion and diversification of communities," has been quietly pieced together over the past year in discussions by some of Hidalgo County's leading economic development officials.

Commission members selected a board of directors, finished drafting bylaws and setting membership dues and received recognition from the Texas secretary of state - and that was all just last month.

But a major step came last week when the Hidalgo County Commissioners Court agreed to pay $30,000 in membership dues to join the council, which Salinas was elected to chair.

The council is the result of a natural growth in how government officials see the Valley and the avenues to improve its economic standing, said Keith Patridge, the president and chief executive officer of the McAllen Economic Development Corp.

For years, the Greater McAllen Alliance - a conglomeration of six economic development councils in Hidalgo County - worked to market the area, Patridge said. After Salinas took office in January 2007, he told them he wanted to bring a countywide approach to economic development.

But when officials started to work on a council centered on Hidalgo County, Patridge said, they quickly found that entities in Cameron, Starr and Willacy counties also had interest in joining.

A Valley-wide approach made more sense because each area has its own assets to bring to the table, he said. And by bringing more counties to the table, it consolidates the Valley's strengths and marketability as a major metropolitan area.

"When we bring in a company, they don't pay attention to where the city limits are," Patridge said. "They want to look at the buildings, the rail, the workforce. Those are the things that matter most."

THE 'RIO' SOUTH TEXAS

Marketing will be a key part of the council's job, Patridge said. Even its name was chosen to distinguish the Valley as different from other parts of the state.

He said the word "Rio" identifies the council as part of the Valley, but it also functions as a quasi homophone for "real," poking fun at other cities like San Antonio that claim to be in South Texas.

However, a clever name won't be enough to pull in the biggest companies.

Salinas said the Valley needs to improve the skills and education of its labor force, develop its trade and transportation corridors and foster a hospitable business climate if it wants to compete for outside investment against other areas in Texas.

The best way to make those improvements is by collaborating on projects like the extension of Interstate 69 to this region and by showing a unified front on legislative trips to Austin and Washington, D.C., said Cameron County Judge Carlos Cascos, who was selected as vice chairman of the council.

He said the cities and counties in the Valley need to change the mentality that economic development is a zero-sum game.

If a business chooses to locate in Hidalgo County, Cameron County isn't automatically a loser, Cascos said. Some Cameron County residents could commute to the business for work, or Hidalgo County residents employed at the business could travel to Cameron County for play.

"Cameron County is not competing with Hidalgo County," Cascos said. "We're competing against other metro areas, other states and other countries."

Jared Janes covers Hidalgo County government and general assignments for The Monitor. He can be reached at (956) 683-4424.