Current situation
According to city documents, the amendments to the two tax reinvestment zones—which are instruments used to support economic development within a set geographic boundary—are a necessary step to implement provisions within the memorandum of understanding, or MOU, between the city, Bexar County, Missions owners Designated Bidders and developers Weston Urban.
The amendments pertain to relocating 17 parcels of land located within the Westside TIRZ that are earmarked for development as part of the Missions stadium development project to the Houston Street TIRZ.
The parcels of the Westside TIRZ include the Soap Factory Apartments and land included in phases 1, 2 and 3 of the Missions stadium project.
According to city documents, to offset the impact of the transfer of the parcels from the Westside TIRZ to the Houston Street TIRZ, the amendment also increases the city’s participation rate for the Westside TIRZ from 90% to 100%, which is projected to add an additional $2.3 million in revenue through fiscal year 2032-33. The amendment also extends the Westside TIRZ’s term from FY 2032-33 to FY 2060-61, which will bring in an additional $266.6 million in incremental property tax revenue over the extended term.
Additionally, the ordinance also extends the Houston Street TIRZ’s term from FY 2032-33 to FY 2060-61, which is projected to bring in $530.6 million in total incremental property tax revenue over the extended term. The term extension will support the proposed financing that will fund a portion of the ballpark stadium project.
The vote passed 7-2, with District 2 council member Jalen Mckee-Rodriguez and District 5 council member Teri Castillo voting against, and District 9 council member John Courage in absentia.
Meeting highlights
Multiple City Council members expressed concern over moving the 17 parcels from a traditionally working class area for a development project, with Castillo speaking against what she believes to be a form of divestment.
“The TIRZ structure siphons off public dollars from our city’s general fund to address the needs of our constituents like streets, sidewalks, drainage, affordable housing and so much more,” Castillo said. “What we are facilitating with the transfer of these 17 parcels is divestment from our city’s already most divested ZIP code.”
City Manager Erik Walsh said that without this transfer the term of the MOU would not be upheld and the baseball stadium project would not go forward.
“If that increment is not dedicated in line with the MOU, then there’s no ballpark project,” Walsh said.
District 1 council member Sukh Kaur said that though other council members were reluctant to vote for the amendment, the Houston Street TIRZ expansion was something the council had discussed previously prior to voting on the MOU.
“[The Houston Street TIRZ] is the financing instrument that is going to go into this entire development, so I understand what [Castillo] is saying, but this is following up on a discussion that we had earlier this year about how this entire project was going to continue,” Kaur said.
The context
Located in northwest downtown San Antonio, the ballpark will be near the San Pedro Creek Culture Park and Fox Tech High School. The MOU between the city, county, Designated Bidders and Weston Urban was authorized on Sept. 12, as previously reported by Community Impact. All properties for the site have been acquired with the exception of the SAISD site.
On Dec. 16, SAISD board of trustees approved its own MOU with Weston Urban, Designated Bidders and the county, which provides the remaining land necessary for the construction of the stadium.
The Missions Stadium project includes four stages of development, which are estimated to bring in $1 billion in taxable value after all the phases have been completed.
