(San Benito News/Ray Quiroga)
BY ARABELLA SERRATA
editor@sbnewspaper.com
The City of San Benito recently published a public statement on its ongoing issue against VARCO, the construction company working with the City/EDC on the Resaca Village shopping center located off of Bus. 77.
The statement covers events starting in April of 2023. A few key moments occurred before that date.
According to court records and a previous NEWS report, the EDC approached VARCO in 2018 to build the shopping center. The performance agreement was set to begin construction on March 31, 2019, and end on Dec. 31, 2022. The COVID-19 pandemic in 2020 halted progress on the project and caused many businesses to cancel plans with the shopping plaza.
The new statement from the City details a series of events. According to the statement, on April 4, 2023, the City issued a building permit to proceed with the next phase of the shopping center project. In August of that same year, VARCO was notified of a breach of contract for failing to meet its obligations under the agreement with the City/EDC.
On Oct. 4, 2023, VARCO’s building permit expired. Fred Sandoval was also hired by the City as the City Manager of San Benito.
On March 26, 2024, a notice of default was issued to VARCO due to its, “failure to restart construction and comply with the terms of the agreement,” according to the statement.
On April 18, 2024, the City and the San Benito Economic Development Cooperation [EDC] board of directors terminated VARCO’s involvement in the shopping center project due to “continued delays and unfulfilled obligations.” On April 25, 2024, the City alleges that VARCO attempted to use the expired building permit.
According to a previous NEWS report, the EDC attempted to evict VARCO from the project on May 21, 2024, but was unsuccessful.
On Aug. 16, 2024, the City’s statement included allegations that contractors working on the shopping center project “illegally tapped into the City’s water supply without proper authorization.” Shortly after, on Aug. 19, 2024, the City issued a “stop work” order to the contractors.
In a separate press release from VARCO that was released when the water tapping incident first occurred, the company stated the incident was a “one-time occurrence.” The statement continued, “Once Varco became aware of the claims, they immediately inquired about them with the site superintendent, who reported that the subcontractor used the backflow only once. It had previously not been used.”
On Jan. 16, 2025, VARCO’s contractor applied for a new building permit with the City. However, later that month, on Jan. 30, the application was denied due to ordinance requirements.
The City’s timeline ends after that, but there have been more events after the last date.
On Jan. 29, 2025, Paul Serafy, an attorney representing VARCO, filed a criminal complaint against Sandoval for “official oppression.” According to the letter Serafy sent to the City, the complaint fell under Texas Penal Code 39.03. According to the official Texas Statutes website, official oppression can happen when a public servant “intentionally denies or impedes another in the exercise or enjoyment of any right, privilege, power, or immunity, knowing his conduct is unlawful.”
In the complaint, Serafy claims that Sandoval, alongside Eddie Olvera, Chief Building Official, and Johanna Maldonado, Planning Director, “refused” to allow VARCO access to the project construction site to finish the plaza and lift the “stop-work order.” According to the complaint, the stop work order did not follow the city ordinance.
The NEWS attempted to contact Serafy for any updates on the criminal complaint and a response to the City’s statement, but did not receive a response by the time of publication.