What happened
County officials said the developer, Industrial Commercial Properties, plans to invest $40 million into buying the northeast side, 62-acre property and revamp it in order to accommodate mixed-use, retail and light industrial uses.
Officials with Rackspace, a local technology company, announced plans in October 2022 to move their headquarters from the former shopping mall to a smaller location, the RidgeWood Plaza II office complex near US 281 and Redland Road. Rackspace had occupied the former mall for more than 14 years.
According to county and Windcrest city officials, ICP will acquire the former Rackspace site for $21.5 million and spend another $18.5 million to renovate the interior and exterior spaces.
The Windcrest Economic Development Corp. will then become owners of the site and lease it to ICP for seven years. Windcrest EDC representatives project the conversion of the site and potential future tenants could generate hundreds of jobs and at least $10 million in sales tax revenue.
Additionally, Bexar County will send $2.8 million in incentives to the Windcrest EDC, an amount equal to the penalty fee that Rackspace is paying for terminating its mall lease early.
The project will be exempt from property taxes for seven years, except for a pilot payment to the North East Independent School District, county officials said.
What they’re saying
Representatives from the involved parties said redevelopment of the former Rackspace/Windsor Park Mall site will prevent the land from becoming blighted and instead yield new job opportunities, economic growth and tax revenues.
“Many potential bidders intended to demolish the footprint, but Industrial Commercial Properties had a vision to retain and repurpose the space—and they have a proven track record with this type of adaptive reuse project,” County Judge Peter Sakai said in a statement. “I am committed to working with our suburban cities to ensure that every corner of our county’s experiences growth and that all of our neighbors have access to pathways to prosperity.”
