McCombs Enterprises is proposing building about 500,000 square feet of offices, restaurants and stores at a vacant site at the corner of Jones Avenue and Camden Street, city staff told the City Council’s Planning and Community Development Committee on Tuesday. The projects would be built in two phases through 2032.
The company requested funding from the Midtown Tax Increment Reinvestment Zone to help pay for $19.8 million worth of public improvements, including paving, walkways, landscaping, a pedestrian bridge and a park underneath Interstate 35.
McCombs Enterprises wanted the city to cover about $13 million of that price tag plus debt service totaling $31.2 million, city staff said, but they’re recommending $7.5 million. The company also is asking for contributions from Bexar County and the San Antonio River Authority, which also participate in the Midtown TIRZ.
A reinvestment zone is a mechanism in which rising property tax revenue resulting from new development within a designated area is used to reimburse companies and nonprofits for certain upgrades.
The council committee gave the go-ahead to city staff to finalize an agreement with McCombs Enterprises, which would require approval from the Midtown TIRZ board and City Council.
“This is an exciting area, and the project is really exciting,” said District 1 Councilwoman Sukh Kaur, who represents the downtown area and part of the North Side.
McCombs Enterprises — the corporate umbrella for the McCombs family’s business ventures, including real estate investments — bought the 5.9-acre site from CPS Energy for $29.5 million in 2023. The Texas Legislature the same year created a municipal management district for the property. The governmental entity can levy assessments or taxes within its boundaries to finance improvements or services and issue tax-exempt bonds.
Management districts are governed by a board of directors who must have an ownership interest in the property or be agents, employees or tenants of an owner under state law.
Lawson Jessee of local firm Troy Jessee Construction, local developer Pat Biernacki, Andrew Simms of Frost Investment Advisors LLC, broker Nick Prater and engineering executive George Weron make up the board for the Jones district.
CPS Energy used the property as a service center before selling it. McCombs Enterprises is razing buildings to make way for its development.
The property is currently valued at nearly $30 million. It is expected to be worth $154 million when the development is completed and $334 million in 2060, when the Midtown TIRZ is scheduled to expire, city staff said.
The projects are anticipated to generate $80 million in sales tax receipts over 32 years.