Future growth in Jersey Village will help offset loss of business

Officials with the city of Jersey Village have been looking at ways to regain a significant loss in business revenues as a result of the Hwy. 290 expansion project. With a majority of its land along Hwy. 290, Jersey Village stands to lose thousands of dollars in property and sales tax revenue, which account for about 43 and 27 percent of the city's general fund, respectively.

"The total loss of city revenue from businesses closed due to the Hwy. 290 expansion is unknown, but property tax loss is estimated at about $40,000," newly elected Mayor Rod Erskine said. "Growing our business community is critical at this point."

Business displacement

So far, five businesses have been displaced by the corridor expansion—specifically near the Beltway 8 interchange where construction of a continuous frontage road and Jersey Village utility relocations have already begun. In total, it is anticipated that 15 businesses will be affected in some capacity by the expansion, and 10 are expected to have to relocate, according to Jersey Village public works director Danny Segundo.

Jack's Carpet—which had been situated at the interchange for about two years—was able to move to another location within Jersey Village, but now expects to lose a portion of its parking as a result of further right of way acquisition. The owner worked with TxDOT and gave Jack's Carpet a lump sum to assist with their relocation. Other businesses—Chevron, Taco Bell, McDonald's, Jack in the Box and Meineke—were forced to relocate outside of the city limits.

Projects G and F—the segments of the Hwy. 290 expansion project within the Jersey Village city limits—require right of way ranging from 15–59 feet on the north side of the corridor, which is expected to affect the parking capacity for dozens of businesses and cause others to relocate entirely.

Once the funds for TxDOT's right of way acquisition process are secured, the US 290 Program's right of way team notifies the affected landowner or tenant with an introductory letter, an appraisal report with a monetary offer, the property owner's Bill of Rights and information about the process.

Future development

In the 2011-12 fiscal year, Jersey Village collected just under $2.9 million in sales tax revenue. Sales tax is collected by the state comptroller's office and distributed to the city in a lump sum, so only time will reveal the actual amount of sales tax revenue lost in Jersey Village as a result of the Hwy. 290 expansion, Erskine said.

"I am not as concerned about the permanent loss of sales tax as much as I am concerned about the temporary loss over the next several years owing to the construction and the willingness—or lack thereof—of people to navigate road closures," City Manager Mike Castro said. "I think that will be as much of a problem to the city as anything else. We will try to make the best of that situation."

In order to regain the expected loss in revenues, the city of Jersey Village has begun looking at ways to retain existing business and attract new retailers, industrial entities and developers.

"While the expansion of Hwy. 290 will provide us with our share of headaches, once complete, the improved freeway access will provide an opportunity to attract new businesses and redevelopment of our current commercial areas and potentially stimulate development within Jersey Village Crossing on the south side of Hwy. 290," Erskine said.

Jersey Village is close to a complete build-out, and one of the only areas available for new or expanding business development is Jersey Village Crossing—a primarily industrial area south of Hwy. 290 between Charles Road and east of Fairview Drive.

Jersey Village's planning and zoning board presented a recommendation to City Council June 17 to allow future warehousing and storage businesses to open along the Jones Road extension in the Jersey Village Crossing development. Council members agreed, however, that this was not in line with the vision of the development.

"The vision was that construction would allow for a mix of residential and retail development in the same location—specifically a foot-traffic area with ground-level retail and restaurant tenants and loft-type residences on the upper floor," Erskine said. "This would be similar to what we see at Town and Country or Skinner Road and Hwy. 290."

The potential of bringing higher value properties could be beneficial to the city and its residents with both the services provided through restaurants, shopping and amenities and from the perspective of generating revenue for the city, Erskine said.

"Once the [Hwy. 290] expansion project is complete, I anticipate we will see a substantial increase in interest along the corridor," Castro said. "We will work with developers at that time to facilitate development that is consistent with the city's general plan for development."

Jersey Village Crossing is still in the planning stages and is expected to be funded entirely by private developers. Several presentations have been given to City Council over the years to revamp Jersey Village Crossing to promote business growth, but plans are still being reviewed by the Planning and Zoning Commission.