As one is driving West on I-10 through El Paso they will pass by the old Farah plant. What they will see as they drive by is a blighted building that adds to the “El Paso is a poor border town” mindset. Paul Foster and his partners at Regency Development out of Florida have proposed building an upscale designed complex with a few nice lifestyle amenities. The city thought that Regency was going to deliver high end retailers. From what I have gathered, here are the two sides of the story in my own words, not theirs.
City of El Paso-
- Tax Incentives for Regency if they build this shopping center and bring in high-end retailers.
- Only 10% of tenants can already have a presence in El Paso
Regency Partners-
- They build a high end shopping complex and a beautify an area that currently looks run down.
- No guarantee of high end retailers but they will try their best
That was a very simplified version of what is really going on. If you want to read articles on it, search the online archives at El Paso Times or there is currently an article on El Paso Inc. about it. El Paso is definitely an under served market retail wise and it is just a matter of time before stores notice this. However, higher end stores are currently saying that our market can’t support what they have to offer. Unfortunately, their analysis leaves out all of the shoppers from Mexico. I understand that it is hard to quantify the shoppers from across the border, but all they need to do is come visit the city and see for their own eyes.
I was on the the US census bureau site and did some checking. I compared El Paso and Fort Worth according to the 2006 census data and 2002 business data (latest I could find). I chose to compare El Paso to Ft. Worth because of their similar sizes (around 660,000 avg). Well what I found out is that both cities have around the same retail sales which I am sure have increased over the past 5 1/2 years. Ft. Worth seems to have high end stores and they are very similar to El Paso (size/retail sales)
I think these high end retailers put El Paso in the back of their minds because of not only their number analysis that fails to take in the huge intake of Mexican shoppers, but more importantly, faulty perception. They think El Paso is a poor old border city where their product wouldn’t sell. Unfortunately, until this is fixed, we will be stuck with more Old Navy’s.
My solution for Farah
- Only 30% of tenants can have already have a presence in El Paso
- Lessen tax incentives for Regency
- Figure out why there was a miscommunication between the city and Regency about what was supposed to be built.
I support the Farah Development simply for the fact that it cleans up a blighted area and creates a nice place for citizens and visitors to go. High end retailers would be a nice cherry on top if it can be accomplished.
My name is David and I am living El Paso…with a lot of Old Navys