Edinburg council to consider tax incentive for DHR $76.8 million expansion

Local News

EDINBURG, Texas (KVEO) — Doctors Hospital at Renaissance (DHR) has plans for a $76.8 million expansion in Edinburg.

DHR is asking the council for approval designating Doctors Hospital at Renaissance, LTD. as an enterprise project, under the Texas Enterprise Act.

The Texas Enterprise Zone Act was introduced and passed by the Texas State Legislature in 1983. The law allows incentives by both state and local governments to spur private investments in distressed areas, with tax incentives and retention of high-quality jobs.

“It’d be no cost to the city. Actually no tax dollars away from our city, away from our general fund. It’s actually going to be, the initiative is to get back the 6.25% tax that is given to the state,” says Councilman David White, Edinburg City Council Place 4.

The move would allow DHR to receive a refund on the sales and use tax collected by the state, based on their total investment and the jobs they will create and retain.

Councilman White adds the expansion would create more hospital beds in the region, create high-quality jobs, as well as give residents access to better health care.

“After looking at this one, it really looks like a win-win situation for the city, along with DHR. It might be something we can do with other hospitals that we have in the city too, depending on what their growth would be and their future expenses,” says White.

Last month the proposal was approved unanimously by the Edinburg Economic Development Corporation, and they will go before the council tonight to inform the public and secure state legislative support.

The meeting will take place at 6 p.m. Tuesday at the Edinburg City Hall, where they will decide if they will designate Doctors Hospital at Renaissance as an enterprise project.

To read more about the proposal, click here.

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