McAllen voters OK'd the mixed-use project in September 2002. McAllen Mayor Leo Montalvo tells GlobeSt.com that the Indianapolis-based Simon was the only developer to respond to an RFP floated about four months ago. Simon is expected to close in September on 70 acres of retail-zoned land at the northeast corner of Ware Road and Expressway 83, which abuts 18.8 acres set aside for the 174,000-sf convention center.

Montalvo says the call for the convention center's general contractor will go out in late spring. Construction, with a 15- to 18-month schedule, will get under way about the same time that Simon buys the acreage. When the convention center's completed, work will ramp up on a performing arts center with 2,500 to 3,000 seats, according to the mayor. He says the city plans to spend about $60 million for its portion of the project.

Simon's part of the project, Palms Crossing, will include a 650,000-sf mix of anchor tenants, inline shops and restaurants. The plan calls for 440,000 sf of anchor and junior anchor stores and 160,000 sf tagged for inline shops ranging from 2,000 sf to 15,000 sf. Palms Crossing is designed to hold up to 15 restaurants, both inline and pad development.Montalvo says one out-parcel has been reserved for a hotel. In a press release, he says the retail component "is going to be key to the entire development because we're looking at one big campus."

A Simon spokesman declined to discuss the project until the land is acquired. The retail developer also owns and operates the 1.2-million-sf La Plaza Mall in McAllen. The mall is anchored by Dillards, JCPenney, Sears and Foley's.

"We are firmly established in the McAllen market with our successful La Plaza Mall and expect Palms Crossing to add to that success," Myles Minton, Simon's senior vice president of development, says in a press release.

Instant Insights /

McAllen, Simon Ink 167-Acre Mixed-Use Plan

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