Developers look for ways to reduce financial risk as the Valley’s industrial projects take shape

Before factories, shipyards, or logistics hubs can break ground in the Rio Grande Valley, developers often spend months — and sometimes tens of millions of dollars — assembling financing structures and preparing sites to attract investors.

Private developers frequently assume the earliest financial risk, investing heavily in engineering studies, land preparation, and deal structuring long before companies formally commit to building in the region.

“If we want to attract investment, someone has to take the risk,” Joaquín Spamer, president of CIL Group and chairman of RioPlex, said. “The private sector is usually the one putting up that initial capital to make projects happen.”

Spamer said a major industrial project in the McAllen area required extensive preparation before the deal could be finalized.

“It took nearly a year to close the deal and required close to $100 million in project preparation,” he said.

The growing complexity of structuring industrial projects was a central theme during the RioPlex Deal Structuring forum, where developers, bankers, public officials, and academic leaders discussed financial tools that could help attract investment to South Texas.

Financing tools for industrial projects

Participants highlighted several financial mechanisms designed to make projects financially viable across the Rio Grande Valley.

Ray García of Texas National Bank presented the New Markets Tax Credits program, a federal initiative designed to attract private investment to communities with lower income levels.

“The objective is to attract private investment into projects that generate jobs and real benefits for the community,” García said. “Our counties qualify for these programs, which helps reduce financing costs and makes many projects viable.”

Representatives from the North American Development Bank (NADBank) also discussed financing programs for environmental infrastructure, energy projects, and sustainable industrial parks along the border.

The institution finances projects within a 100-kilometer radius on both sides of the U.S.–Mexico border.

“We are interested in supporting projects that generate positive environmental impact and economic development in the border region,” a NADBank representative said during the presentation.

Investors look at entire regional ecosystems

Speakers said companies evaluating potential locations typically analyze entire regional ecosystems — including infrastructure, workforce availability, and transportation networks — before deciding where to invest.

“Companies looking to establish operations do not evaluate just one city or one county; they are evaluating an entire region,” Hidalgo County Judge Richard F. Cortez said.

Companies want assurance that a region can support long-term operations.

“They want to know whether the region can support their success with strong infrastructure, reliable transportation, and a prepared workforce,” he said.

Cortez acknowledged infrastructure challenges.

“We must seek state and federal support as a complete region, not as isolated communities,” he said.

Officials noted that energy availability, water resources, transportation infrastructure, and specialized workforce development remain important considerations for future industrial projects.

Cross-border location drives interest

Business leaders said the Rio Grande Valley’s position between Texas and Tamaulipas creates opportunities tied to cross-border manufacturing and supply chains.

Juan Garza of Greenpoint Developers said the forum helped identify financing sources that could support new projects in the region.

“Many of these financing sources are not traditional, and they can help turn projects into reality,” Garza said.

Miguel Brito of Brito Construction said he walked away from Wednesday’s event with new financing information. 

“Many people are not familiar with the benefits or incentives available for projects. Events like this help share that information,” Brito said.

Martín Anzaldúa, director of Grupo Río San Juan, said the region’s location between the United States and Mexico creates opportunities for deeper economic integration.

“Problems will always exist, but we need to focus on opportunities,” Anzaldúa said. “We are bringing together two of the most important countries in the world here in Texas and Tamaulipas. If we do not seize this moment, many opportunities could be lost.”

Guillermo Núñez Vela of Núñez Trading Company described the relationship between the two regions as a powerful driver of development.

“Tamaulipas and Texas are like TNT, like dynamite. When they work together, economic development explodes,” he said.

Carlos Canales, CEO of Grupo Trancasa, said strengthening regional supply chains can help ensure economic benefits remain in the region.

“When the money stays here, jobs are created here, and people in the region benefit,” Canales said.

Canales said initiatives such as RioPlex help present the Rio Grande Valley to international investors.

“Crises are also opportunities. The key is to be strategic and adapt to change,” he said.

Mario Reyna, executive director of RioPlex, said collaboration among public and private stakeholders will be important as the region pursues new industrial investment.

“The future of our region does not depend on a single city; it depends on how we all work together,” Reyna said. “We have international bridges, airports, universities, and talent. We have the infrastructure needed to grow. If we believe in what we are building as a region, then everything we do must align with that purpose.”