May 19--MCALLEN -- Houston-based developer Property Commerce has proposed building a seven-story boutique hotel, parking garage and top-flight office building on the McAllen Civic Center property, according to records released Friday.

The Civic Center development would also include new restaurants and 59,000 square feet of retail space, according to Property Commerce's draft proposal, which remains subject to change. Along with standard commercial fare, the project may include a Dave and Buster's-style entertainment venue.

On Monday, the McAllen City Commission voted to negotiate an agreement with the Houston-based developer.

"The goal is to target upper scale retail, unique eateries, and a hotel that are not in the Rio Grande Valley," according to Property Commerce's proposal. "This will be a destination oriented shopping plaza, bringing clientele from the entire Valley and beyond into McAllen."

The Property Commerce broker handling the Civic Center proposal couldn't be reached for comment Friday.

McAllen solicited proposals to redevelop the Civic Center property from November to February, and five firms submitted offers.

"It was a tough decision," said City Commissioner Jim Darling, who will be sworn in as mayor May 28. The proposal's entertainment components won over elected officials, he said.

On Expressway 83, many drivers might not know exactly where McAllen begins and ends, Darling said. "But at 10th Street and Expressway, you know you're in McAllen, and we kinda wanted to make a statement as it related to that."

Completed in 1960, the McAllen Civic Center boasted world-class translation equipment and a 2,000-seat auditorium, according to "McAllen Leading the Way: The First 100 Years," a publication of the McAllen Chamber of Commerce.

The 53-year-old building at South 10th Street and Expressway 83 now sits on about 13.4 acres of prime commercial property valued at $6.4 million, according to an October 2012 appraisal. Property Commerce's proposal lists the purchase price at $10 million.

To replace the Civic Center's meeting spaces, the city built the McAllen Convention Center on Ware Road, which opened in March 2007. The City Commission also plans to build a theater nearby to replace the Civic Center Auditorium, long a popular venue for concerts and dance performances.

Proceeds from selling the Civic Center property could partially fund the new theater's construction. Perhaps more importantly, though, redeveloping the Civic Center property would boost McAllen's sales and property tax revenue.

Property Commerce's past projects include the intersection of North 10th Street and Trenton Road, a two-phase project anchored by Target, Texas grocer H-E-B and Home Depot. Nationwide, Property Commerce has developed more than 40 million square feet of retail space in eight states, according to the company's proposal.

For the Civic Center development, Property Commerce will target so-called "destination retailers" without any existing McAllen or Rio Grande Valley locations. For example, the proposal suggests a family friendly entertainment venue like Dave and Buster's, which boast a full-service restaurant and bar alongside a video arcade.

Negotiations between McAllen and Property Commerce may involve economic incentives.

Property Commerce's proposal mentions city contributions for public infrastructure, possibly including drainage and road improvements, and a tax increment financing zone. The zone would set aside property tax revenue from a predetermined area -- for example, all property tax revenue generated by the Civic Center development -- for improvements to the area.

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Dave Hendricks covers McAllen and general assignments for The Monitor. He can be reached at (956) 683-4452 or on Twitter, @dmhj.

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