THE COASTAL BEND MAGAZINE • Winter 2018-19 13 TheCoastalBend.com Editor Can Barbara Canales foster a new era? Winter 2018-19 N ueces County Judge Barbara Canales was elected last No- vember, defeating former County Commissioner Mike Pusley by a margin of less than three points. Pusley, a Re- publican who served on the court since 2009, was as close to an incumbent as any new candidate for the office could have been—he was a close ally of County Judge Loyd Neal, who was retiring from decades in politics amid health is- sues, and was seen committed to carry on Neal’s style of leadership for Nueces County. And it was rejected. More fairly, Barbara Canales was seen as offering a new, bright outlook on the future of the county, along with a plan and the will to get it done. As much as Pusley’s close alliance with Neal guaranteed him support from a reliable slice of the electorate, a number of notable failures loomed large in the minds of voters, espe- cially small business owners, and more of the same was not appealing. Most notable, without a doubt, was Neal’s failure to close the deal on the 1914 Nueces County Courthouse, which has sat empty and deteriorating for over 40 years, and that is protected from demolition until 2027. That will be seven years af- ter the gleaming new, $1 billion Harbor Bridge will be completed and open for use. As the old bridge comes down, over 50 acres will open up that will provide prime land for development on both sides of the ship channel. And there, smack-dab in the middle of it all, with a perfect view from the new 2020 Harbor Bridge, will be the 1914 Courthouse, lifeless and decaying in the center of what could otherwise be a vibrant and attractive section of downtown Corpus Christi. In 2017, an Ohio-based construction company that specializes in the restora- tion of historical buildings began exploring the feasibility of purchasing and restor- ing the old courthouse. The new, mixed-use facility they proposed would include a luxurious hotel, meeting space and ballrooms, restaurants and shops, and at last would bring a fourth (woo-hoo!) full-service hotel to downtown, where one has not opened in more than 30 years. The prospective developer saw the vision of how the abandoned landmark, an architectural and design masterpiece of its day, could serve as a magnificent centerpiece of activity that welcomes visitors to the city, in a setting that preserves and celebrates our rich, South Texas history. Judge Neal and Commissioner Pusley’s approach to the negotiation started with the sale of the site to the developer for $1 or $10 or some ceremonial sum, pro- vided the buyer pay $1.5 million to the county for back taxes owed by the last failed developer of the courthouse back in the 1990’s. The developer was then expected to fund the restoration of the building and its transformation into a 190-room hotel with said amenities. After the new hotel received its certificate of occupancy from the City of Corpus Christi, the owner would then receive $3 million in grant funds as incentive for the restoration. The risk/reward carried an investment of $40 to $50 million by the new owner—in an area of town that has not seen a full service hotel (one with a restaurant, room service and other conveniences) open since the Marriott, now the Holiday Inn Marina, and the Hershey, now the Omni, in the mid- 1980’s. In fact, since those days, two full service hotels have gone away, the old La Quinta, now a place best known for its Hotel Impossible episode, and the Radisson, now a very respectable Best Western but which lacks a restaurant and room service. Since the 1914 Courthouse was shuttered in 1977, dozens of hotels, motels, condominiums and other lodging accommodations have opened and closed in Cor- pus Christi—and only two builders have seriously taken on what is now a histor- ically-protected eyesore. It is going to take much, much more to restore this site and save it from further ugly dilapidation before it can finally be imploded in 2027. Far from demanding $1.5 million in back taxes for a prior developer’s failed attempt to restore the 1914 Courthouse, Nueces County must offer generous incen- tives in order to attract another serious buyer—likely a sum north of $10 million in real cash, or even safer for a potential investor, the restoration of the structure to code (where all the unknowns are hidden) by the county before the site is sold. You then likely need to abate property taxes for ten years or more, along with hotel oc- cupancy and franchise taxes for the new facility itself. A Tax Increment Financing (TIF) district should be created for the adjoining blocks that will attract new busi- nesses and amenities to the area. The 1914 Courthouse could serve as a center of commerce, close to the convention center, Whataburger Field, Hurricane Alley and Concrete Street—but what we have now, and what we’ve suffered for two genera- tions and counting, should not be acceptable for a self-respecting community that desires to compete on a bigger stage than we are used to. The news this winter that the Outlets at Corpus Christi Bay has gone into bankruptcy and is set to be foreclosed upon, should serve as a reminder that not every idea is a good idea just because someone wants to invest money in the county. Separate and apart from the general de- cline of all brick-and-mortar retail in an era of Amazon et al, Interstate 69, which we generally know as Highway 77 in Robstown, is not I-35 in New Braunfels or San Marcos, or I-45 south of Houston, where outlet malls have succeeded. The two-way traffic is not there; Mexican tourism to Texas has been in decline for years, and; Robstown (with our apolo- gies) is not a visitor destination. Sorry. It’s not. A more productive approach would be to materially assist potential develop- ers who come to Nueces County armed with an eagerness to be part of our his- toric growth, and tens of million or more to invest. Their ultimate success is our success, and so too are their failures—and the failure of a $70 million project like the Outlets in less than three years acts only to scare other investors away. Outlet mall? $70 million for a mixed-use site in Nueces County? Robstown! We all knew better and no one is surprised at the outcome. That old court- house could have been brought back, and would have been operational by now and thriving, for $50 million or less—but let’s build an outlet mall in Robstown. I hope our regular readers will forgive me for being repetitive, but over this editor’s lifetime I have seen the Coastal Bend lose major developments by Landry’s, Bass Pro Shops, Omni Hotels, Intrawest, and, I am told, many others that we never heard about and never will—lest we be reminded that Ole’ Loyd, God bless him, showed Tilman Fertitta the door when he refused to give a slice of his bayfront project (ala Kemah Boardwalk) to a local partner. No pay, no play, and Tilman took his $100 million to San Antonio, where the value of his investment was appreciated. Our hope for Judge Canales on the issue of commercial development? Get on the phone. Tell these prospective investors what you see for your hometown. Invite the billionaire developers back for a visit, those who showed real interest in Nueces County, but were given a hard time, laughed and scoffed at, and otherwise not taken seriously—all in the name of securing the status quo. And why? Words of wisdom I was recently offered: Growth dilutes power. —The Editor