(This story was updated to add new information.)
The board that oversees downtown’s special property tax fund has given a preliminary nod to using as much as $2 million to tear down the 1914 Nueces County Courthouse — but not without several city officials first expressing displeasure over the approach that had been employed to push the issue.
The Nueces County Commissioners Court had vowed to exit an economic development program that relies on downtown property tax values, should the board deny the funding.
Corpus Christi City Councilman and board member Gil Hernandez said during the Jan. 13 meeting that although he supported financing the teardown, he didn’t appreciate the county’s “methods that are being used for it.”
A historical marker in front of the Nueces County Courthouse of 1914 in downtown Corpus Christi on April 24, 2025.
He first had used the word “extortion” and later described it in the subsequent City Council meeting as “coercion.”
“Ultimately, I agree that we can participate with tearing down the old courthouse — I know it’s been an odyssey for the county for many, many years,” Hernandez said. “I’m in support of the funding, but again, this could have been handled a little bit differently.”
Nueces County Commissioner Mike Pusley, also a member of the board, took exception to referencing the county’s position as extortion.
There is a partnership in improving downtown, he said, adding that demolishing the old courthouse would serve as a benefit to the area.
“Extortion is a terrible thing to say, and I’m just really disappointed in that,” Pusley said. “What I’m trying to do is salvage our partnership.”
The board that oversees the economic development program — known as a tax increment reinvestment zone, or TIRZ — approved on Jan. 13 amending a project and financing plan that outlines the uses of funding.
In this case, the board approved in an 11-1 vote revising the project and financing plan to include among allowable uses as much as $2 million for the demolition of government buildings.
The approval by the TIRZ board, and subsequently the Corpus Christi City Council, was not specific to the 1914 Nueces County Courthouse. A contract specific to the proposed demolition of the historic courthouse is expected to be brought to the board and the City Council for consideration Jan. 27.
Tax increment financing
A TIRZ functions by taxing entities contributing to the program a portion of new or increased property taxes from a certain area, which would otherwise go to their respective budgets. The TIRZ revenue is then steered back into the area where it was collected for improvements.
TIRZ revenue cannot be used for other purposes than improving the area from which it was drawn. The idea is that reinvesting the funding will spur more economic development, leading to higher property values.
The county, which joined the TIRZ in 2009, currently contributes 100% of its tax increment.
That has amounted to about $5.5 million over the time the county has participated in the TIRZ, said Arlene Medrano, Downtown Management District executive director.
The city has contributed about $12 million, she said.
Should the county withdraw from the program, the downtown TIRZ would stand to lose about $370,000 annually, Medrano said.
More about TIRZ: Why Corpus Christi’s tax reinvestment zones became controversial
Without renewal of a 20-year contract, it would total a loss of about $8.7 million, she added.
Some county commissioners have criticized the use of TIRZ funding, contending that city projects, not county projects, are the primary beneficiaries — and that requests for county projects are essentially a return on its investments in the program.
Conversely, several members of the City Council have disagreed with the county’s assessment, instead suggesting that all projects provide a benefit to all participating taxing entities.
Funding to raze the crumbling 1914 courthouse has been the only ask since the county joined the TIRZ, Pusley has said.
Some city officials have pushed back on the idea that projects that have been approved for TIRZ funding solely benefit the city. Several on Jan. 13 criticized the county’s approach to requesting the funding for the courthouse.
The courthouse
While some have lamented the upcoming end of the 1914 Nueces County Courthouse, several commissioners have said the only reasonable conclusion to its long vacancy and corresponding deterioration is demolition.
Attempts over the years to rescue the building through sale and redevelopment have been unsuccessful and, at this point, infeasible due to the state of the structure, some officials have said.
Tearing down the building will mitigate blight in the downtown area, Medrano told the board.
“This has been an eyesore in the downtown, in our city, for 48 years,” she said. “This is the gateway into downtown, and so we receive millions of cars and traffic every year and that’s the first thing that they see.”
Several City Council members, all of whom serve on the TIRZ board, raised concerns about the future of the property and the lack of plans for immediate redevelopment.
The county intends to sell what Pusley believes will be valuable property, he said.
However, a buyer has not been identified.
It’s unclear how much it will cost to raze the building.
Pusley said contractors have estimated demolition to ring in between $1.5 million and $2 million; however, that price doesn’t take into account asbestos remediation that is currently being evaluated.
The proposal
Under the county’s proposal, requested funding would be a reimbursement of as much as $2 million over a three-year period.
Any additional costs for the demolition would be covered by the county, Pusley said.
That could be sourced to proceeds from a recent sale of property to the Port of Corpus Christi, he said.
Should that fall short of the final cost, there is a “benefactor” he did not identify that would assure there is full financing of the teardown, Pusley said.
Board members in support of amending the project and financing plan, at times, did not distinguish between that move and the approval of an actual contract for the courthouse.
Several described their endorsement as a recognition that demolition of the courthouse would improve the downtown area; some cited valuing the county’s participation in the TIRZ.
There is a bigger picture to be considered for the area, said Mayor Paulette Guajardo.
“At the end of the day, this is a partnership … that maybe the communication kind of went astray,” she said.
This article originally appeared on Corpus Christi Caller Times: 1914 Nueces County Courthouse may come down with special tax financing