• April 2015 • 15

Important Facts

About McAllen Theme Park

reported in Nov. 2011

15• NOVEMBER 2011 •

From the Publisher of Texas Border Business:

In 2011, I was invited to see a Master Plan that was going to be presented to the

McAllen City Commission. It was for the proposed McAllen Theme Park project intended to be developed on the Boeye Reservoir.

At the time, Richard Cortez was mayor of McAllen and he was the one that invited to me to learn more about this project, not before telling me that he had already excluded himself from voting or being part of any City Commission decision concerning this project.

A study by UTPA had projected 403,000 people would have visited the Park annually only from the U.S. alone; they were not able to predict the thousands that would have come from Mexico and beyond.

When I heard the entire plan, I saw the benefit for the entire region and was transported back to 1976 when La Plaza Mall opened in McAllen for the first time. La Plaza Mall changed the face of McAllen and the entire South Texas region. I expressed to Cortez that this water Theme Park was really going to transform the area into becoming a true tourist destination point in South Texas.

Little did I know that, soon after, a controversy would erupt concerning this fantastic project; because of this I commissioned a report and I selected Dr. Gilbert De los Santos, UTPA Professor Emeritus, to bring out all the facts and benefits of the project.

Now, in 2015 I realize that

the critics focused on questioning Cortez’ integrity and their perception of his lack of transparency. In fact, he had voluntarily excluded himself from voting or being part of any City Commission decision concerning this project.

Dr. De Los Santos interviewed Michael A. Jenkins, principal of Leisure and Recreation Concepts, Inc. that at the time had developed 1,078-leisure, amusement, and theme projects in 46 countries throughout the world. Leisure and Recreation Concepts, Inc. was the development company that was to have been contracted to build the McAllen Theme Park.

Dr. De los Santos with his extensive marketing experience brought us a wealth of information that came out of a study done by UTPA. The study helped us to understand the tremendous economic impact for McAllen and the entire region.

According to the study, the McAllen Theme Park and the mixed-use development project was projected to enhance the region by creating jobs, generating additional sales taxes, generating property taxes, and by expanding tourism to McAllen and the Rio Grande Valley.

The principals of the project would have invested approximately $13.5 million to construct the Theme Park, and a much larger investment to construct the mixed-use part of the project that would eventually create 2,220 jobs, infuse an economic impact of $221 million in the local economy,

and increase state and local taxes by $7.5 million.

Dr. De los Santos also reported that the Theme Park was going to increase the local economy with:

1) spending to construct the Park; 2) payroll for employees to operate the Park; 3) spending by visitors to the Park; 4) construction invested to develop the mixed-use portion; 5) increase in sales taxes and property taxes from mixed use development; 6) and an increase in jobs. The “multiplier” or “turnover” effect of the influx of “new” money into the City of McAllen would have a ripple effect, throughout the Valley, of six times the amount of money spent by tourists visiting the Theme Park.

During the interview, Jenkins said, “The Theme Park would fill a

huge void in a unique market of this size. The nearest theme park of this scale with dry and water activities is San Antonio, and there is probably no comparable park in Mexico. The Rio Grande Valley is a unique market with about 2 million people, including children in the primary market (less than a 50 miles radius), the secondary market (between 51 and 100 miles), and the tertiary market (over 100 miles). Interestingly, the Brownsville Gladys Porter Zoo attracts over 400,000 visitors annually.”

By Roberto Hugo Gonzalez publisher of Texas Border Business and Mega Doctor News and the 2009 SBA Journalist of the Year award winner and a 2009, and 2012 Paul Harris award recipient.

What they Never told you

Originally, as first published by texas Border BusiNess On nOvember 2011

Critics focused on negative perceptions and didn’t see the BIG picture

The Big Story

Written by Dr. Gilberto De los santos

Professor Emeritus The University of Texas

—Pan American

McAllen is known as, “The Jewel in the Valley

Crown” and the proposed McAllen Theme Park is logically a needed step i n p e r p e t u a t i n g t h i s lofty title. The City is running l ike a f inely tuned economic engine with retail sales, driven by tourism--especially Mexican v is i tors - -by far the most significant business segment. Equally as important as economic development, the City of McAllen is family oriented with a high quality standard of living. The McAllen Theme Park would enhance both!

The McAllen-Edinburg-M i s s i o n M S A a l o n g with Reynosa Mexico comprise a dynamic , unique community with a combined population way in excess of 1.4-million. The McAllen-Edinburg-Mission MSA alone is the fastest growing Metro Area in Texas, and Texas is one of the fastest growing states in the United States. In our Nation, the McAllen-Edinburg-Mission MSA is rated: #1 in Job Growth; #2 Lowest Cost Area to Live In; #4 in Job Creation and Retention; and, #8 Fastest Growing Metro with a whopping 4% annual population growth rate.

McAllen is blessed by hosting 40 of America’s top 100 retailers. More than 80 of Fortune 500’s global manufacturers have operations in McAllen/Reynosa. It is an undisputed fact that McAllen is the retail center of South Texas and Northern Mexico, drawing from a consumer base of over 10 million people within a 200-mile radius.

In Texas, the City of McAllen is ranked 1st in Retail Sales Per Household,

2nd in Retail Sales Per Capita, and 3rd in Per Capita Sales Tax Collections--yet the unemployment rate is among the highest and the per capita income is among the lowest in the state. This paradox can be explained by two factors (1) the influx of tourists and (2) The Valley out-of-town residents who shop in McAllen. Mexican visitors easily spent more than 35% of McAllen’s retail sale of $3.2-Billion in 2010.

The McAllen Theme Park

McAllen Attractions, Inc. teamed up with a world class developer, Leisure and Recreation Concepts, Inc. (LARC), to develop and manage the McAllen wholesome, family entertainment park. LARC has an excellent record having successfully developed 1,078 leisure, amusement, and theme parks in 46 countries throughout the world. Mr. Michael A. Jenkins, President, who is largely responsible for LARC’s success started his theme park managing experience working with Six Flags in

McAllen Theme Park

A Vital Key to Improve the Quality of Life for Families

Leisure and Recrea t ion Concepts, Inc. has developed 1,078 leisure, amusement,

and theme projects in 46 countries throughout the World, and this is the development company that would be contracted to build the McAllen Theme Park.

Following is an interview with Michael Jenkins, President of Leisure and Recreation Concepts, Inc. (The interview took place on October 20, 2011.)

Question: “What is unique about the McAllen Theme Park?”

Answer: “The Park would fill a huge void in a unique market of this size. The nearest park of this scale with dry and water activities is San Antonio, and there is probably no comparable park in Mexico.

The Rio Grande Valley is a unique market with about 2-million people, including children in the Primary Market (less than 50 miles radius), Secondary Market (between 51 and 100 miles, and Tertiary Market (over 100 miles). Interestingly, the Brownsville Glady’s Porter Zoo attracts over 400,000 visitors annually. ”

Question: “What is the biggest benefit of the McAllen Theme Park to McAllen?”

Answer: “Job creation, it puts alot of people to work! The park has an excellent opportunity to meet attendance projections.

It would undoubtedly be attractive to families in the Primary, Secondary, and Tertiary Markets because not only would it have dry and wet attractions, it would also have picnic and other family facilities.

So families would come in larger numbers, and stay longer, which means a boom to the local economy. The Rio Grande Valley is a unique Region, and the park would be reflective of this uniqueness, both recreationally and educationally.

For example, the park would have educational, historical and other facts about The Valley in various conspicuous locations throughout the park.”

Question: “How many visitors do you project on an annual basis?”

Answer: “Using penetration rates based on our extensive studies, we project 403,000 visitors per year from the United States.

We do not have penetration rates to project visitors from Mexico, or from the additional influx of Winter Texans and Nature Tourists who visit The Valley.

Our experience shows that 20.7% of the visitors would be under 12 years of age, 22.9% between 12 and 18 years of age, 14.4% between 19 and 28 years of age, and the rest would be adults 30 years and older.

These figures indicate a “healthy” balance among children, young adults, and older visitors.”

Question: “If you were to speak to the McAllen Business Community, what would you emphasize?”

Answer: “I would tell them that the money spent by visitors to the park from outside McAllen would turn over six (6) times. This is known in economics as the Multiplier Effect.

For example, visitors spend directly for eating, shopping, l o d g i n g , g a s , a n d o t h e r expenditures, and business establishments and employees who cater to tourism spend money locally--and so on and on.

T here wou l d b e m i n i m a l additional investment, if any, by the City of McAllen in infrastructure. In addition to the employees who would work at the park, the park would have 160 vendors providing products and services to the park.

I would also stress that given changes in lifestyles, families have a necessity to invest in leisure time with their families since both parents are usually employed outside their home.

Because of this, tourism has become an important economic driver. ”

Michael a. Jenkins has DevelopeD proJects in 46 countries

Written by Dr. Gilberto de los

SantosProfessor Emeritus

The University of Texas—Pan American

Dallas.

A c c o r d i n g t o M r. Jenkins, the water and dry entertainment features provided by the McAllen Theme Park will attract a projected 403,000 visitors to the park annually--not counting park visitors from Mexico--and the families that visit from outside the City of McAllen will stay longer. The project will also help enhance infrastructure in the region, increase real

estate property values, and improve the quality of life for children and adults.

Mr. Jenkins states that the McAllen Theme Park would enrich life for families with many types of wet and dry amusement facilities, entertaining rides, and other family attractions. The park would consist of rides and attractions that appeal to a wide and diversified age group from small children to grandparents.

In addition to rides, there

will also be appropriate games, retail, food and beverage, restaurants, and picnic and special event pavilions. These attractions will be surrounded by landscaping, water features, flags, and banners, and spray misters to create an exciting, visibly attractive and colorful environment for the park.

The mixed-use portion

Kiddie Rides Proposed hotel

UVALDE STREET

A view of the commercial section water canal

Master Plan EXPRESS WAY 83

Theme ParkContinues in Pag. 18

17• NOVEMBER 2011 •16 • NOVEMBER 2011 • Originally, as first published by Texas Border Business On nOvember 2011

of the l and would inc lude re ta i l e s t ab l i shments (which would complement existing retail establishments at La Plaza Mall and other McAllen Malls). The mixed-use land portion would also provide hotel facilities, restaurants, office space, and apartments.

Economic Impact

The theme park and mixed-use projects will have a positive, significant impact on the economies of McAllen and Hidalgo County. Based on the economic impact analysis reported by The University of Texas--Pan American Data and Information System (DISC), the McAllen theme park and mixed-use development project will enhance the region by creating jobs, generating additional sales taxes, increasing property tax revenues, and by expanding tourism to McAllen and The Valley.

The UT-PA projections show that the investment of approximately $13.5-milllion to construct the theme park, and a much larger investment to construct the mixed use part of the project will eventually create 2,220 jobs, infuse an economic impact of $221 million dollars to the local economy, and increase by $7.5 million state and local taxes.

The park will increase the local economy with: 1) spending to construct the theme park; 2) payroll for employees to operate the park; 3) spending by visitors to the park; 4) construction invested to develop the mixed use portion; 5) increase in sales taxes and property taxes from mixed use development; 6) and an increase in jobs.

The “multiplier” or “turnover” effect of the influx of “new” money into the City of McAllen will have a ripple effect throughout The Valley of six times the amount of money spent by tourists visiting the theme park.

Location, Location, Location

As realtors often repeat, the success of a business is largely influenced by location, location, location!

While the theme park would succeed in other locations accessible by either Highway 83 or Highway 281, the McAllen location with access to Highway 83, close to La Plaza Mall and other shopping facilities, next to the airport, and less than 5-miles from Mexico is the ideal location.

The theme park is the highest and best use for the property under consideration, with accessible shopping amenities.

The McAllen Theme park would be welcomed by families in McAllen and The Valley, most importantly, given the state of the economy, the theme park would be a timely project for the City of McAllen. What is there not to like? •

View of proposed development looking at it from the southeast corner

This is an island and another look at the proposed development.

Theme ParkContinues from Pag. 17

18 • NOVEMBER 2011 •