The New Braunfels City Council approved a resolution to grant up to $4.55 million for the purchase of the downtown New Braunfels Utilities building at 263 Main Plaza.

The acquisition is intended to support economic development in downtown New Braunfels, said Jordan Matney, deputy city manager for the city of New Braunfels at a June 10 City Council meeting.

How we got here

The New Braunfels Economic Development Corporation held a public hearing on May 16, where the grant expenditure was unanimously approved, Matney said.

“This project has been through various stages of approval, including public notice, public hearing, and recommendation by the [New Braunfels Economic Development Corporation].

Why it matters

The redevelopment of this site is expected to be a major economic driver for the community, Matney said.

“This is an incredible opportunity for the Economic Development Corporation to oversee the redevelopment of this project as a major economic development driver in our community," Matney said.

The details

The funding arrangement for the acquisition involves a structured payment schedule to facilitate the transaction, Matney said.
  • $500,000 due by August 1, 2024.
  • $500,000 annually on October 1 for 2024, 2025, and 2026.
  • A final balloon payment of $2.55 million due upon the earlier of two conditions: when NBU turns over possession of the property or the lease termination date.
NBU will lease the property until its new headquarters is ready in spring 2027, Matney said. The city will take ownership within 120 days after NBU receives its final certificate of occupancy.

After NBU relocates, the city plans to transfer the property to the NBEDC for redevelopment purposes, Matney said.