Many factors driving development in San Luis, Ariz.

  SAN LUIS, Ariz. - Over the years, this little town perched on the border hadn't been thought of as much more than a row of small shops lining Main Street leading to its counterpart city in Mexico.

  That's no longer true.

  With more than $200 million being invested in infrastructure improvements to the area, San Luis is beginning to shine with its potential as a logistical hub for the region, said Andrea Bereznak, border area project manager for Greater Yuma Economic Development Corp.

  Those investments include construction of the new commercial San Luis 2 port of entry and area service highway, both of which are expected to be completed by next fall. Other projects include an Arizona Department of Transportation facility at the new port, the Gary Magrino Industrial Park to be developed next to the new port, planned improvements to the existing San Luis 1 port of entry and expansion of the city's existing industrial park.

  "Congestion at the ports is such a huge issue," Bereznak said. "But there are only two new ports being built in the U.S. One is in Donna, Texas, and the other is San Luis 2, so there is a lot of excitement from companies doing international business."

  That includes U.S. companies that have been having goods assembled in Asia because of cheaper labor there, she said. With the rising cost of shipping the goods back to the U.S., "it's making more sense to do the assembly work in Mexico," where the savings in transportation more than makes up for the higher cost of labor there than in Asia.

  That will bring more jobs to both sides of the border, Bereznak said, jobs that are badly needed in San Luis, Ariz., with its high unemployment rate.

  Another project with potential to impact the San Luis area is the planned development of a port at Punta Colonet and a railroad to carry goods from the Mexican sea port to the United States, Bereznak said.

  "That project could have an impact on the area, but it's unknown how much. It will depend on what route the rail takes."

  Bereznak also had praise for the "pro-business, pro-community attitude" of the San Luis council that's positive for the city's future.

  "It's exciting to work there, with the confluence of elements that support growth and development."

  Granted there have been some setbacks, she said. "This is a difficult and slow economic time, but things are still happening."

  One example is the ongoing effort to attract tenants to the former Meadowcraft building recently annexed by the city of San Luis.

  The company that planned to open a car battery recycling center in the 610,000-square-foot building has pulled out due to the economy and another company also decided against relocating there.

  But other companies have expressed interest in the building, Bereznak said.

  There's also the challenge of convincing potential investors from outside the area of the dynamics of the area, she said, investors to bring restaurants, hotels, entertainment venues and service businesses to the city.

  Sharon E. Williams, planning and zoning director for the city, sees encouraging signs.

  "The city is spreading out. I think we will see a lot of growth. I can't imagine it won't. The question will be how fast.'

  New homes are being built, new stores are opening and the population is growing, Williams said.

  As of early December, she said, 74 businesses obtained new licenses in 2008, among them out-of-city contractors working on various projects. And through November, 431 building permits had been issued, compared with 511 for all of the previous year. Current projections put the population at 26,000, a number that is expected to reach 30,000 with the 2010 Census.

  The ACT call center plans to add several hundred positions in the spring of 2009, Williams said.

  In addition, the community received a real boost with the opening in early March of the San Luis Wal-Mart Supercenter, she said. Along with the shopping it brought and jobs it created, it's serving as an attraction for other businesses.

  Carl's Jr. has taken out permits for a restaurant near the San Luis Wal-Mart, Williams said, although she hasn't heard when construction will start. And construction of a multitenant building next to the supercenter will provide spaces for a variety of small shops and service businesses.

  While the Wal-Mart hasn't done as well as original projections set before the economic downturn, Williams said, the store has had a good Christmas season and is meeting revised quotas.

  "People are still coming across the border to shop," she said. That can be borne out by a shopping cart survey the city conducted of carts people left at the border. In response to that "traffic jam," the city has set up a shopping cart corral at the border.

  Another positive development was the opening of the Cesar Chavez Cultural Center, providing a community gathering place for all ages. Other recreational activities are now available at the Joe Orduno Memorial Park, with its swimming pool, gymnasium, park and youth center.

  Williams also noted as positive signs the new city complex, the new library branch under construction and the city's own Arizona Western College branch campus.

   Yet another step forward is the "unveiling" of the new city Web site at www.cityofsanluis.org.

  "The redesigning of our Web site is part of our long-term vision and strategy to re-brand San Luis as the dynamic border city it is, 'Where Culture and Commerce Meet.' This plays an important role because now potential investing companies can take a glimpse into the city through our Web site," said city spokeswoman Karin Meza.

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Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853