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The Defense Health Agency already has substantial operations in San Antonio, including Brooke Army Medical Center at Joint Base San Antonio-Fort Sam Houston. It’s the largest inpatient medical facility in the Department of Defense.<\/p>\n
William Luther\/Express-News file photo<\/p>\n
A Texas commission\u00a0has thrown a curve ball at county and city plans to lure<\/a> the bureaucracy in charge of the military\u2019s medical system to San Antonio \u2014 a relocation\u00a0that could bring thousands of jobs to the city that’s already considered the home of military medicine.<\/p>\n Local, state and national officials have lobbied for years for the Pentagon to move the\u00a0Defense Health Agency<\/a> to Fort Sam Houston on Joint Base San Antonio.\u00a0<\/p>\n Article continues below this ad<\/p>\n Part of the strategy now is to gather $30 million in state and local funds<\/a> to begin work on a building for the agency, which is currently based in Falls Church,\u00a0Va. The city and county each budgeted $10 million and the state was to pony up the other $10 million in two separate $5 million grants from the state\u2019s\u00a0Defense Economic Adjustment Assistance program<\/a>. \u00a0 \u00a0<\/p>\n RELATED: Pentagon in talks to move major agency to San Antonio<\/a><\/p>\n But the plan isn’t working as expected.<\/p>\n San Antonio Express News Logo<\/p>\n Make us a Preferred Source on Google to see more of us when you search.<\/p>\n <\/p>\n Add Preferred Source<\/p>\n <\/a><\/p>\n The state\u2019s military preparedness commission<\/a>, which oversees the grant program, approved the city’s $5 million request but\u00a0snubbed the county<\/a>. That left it $5 million short of the funds needed to begin renovation of a building at Fort Sam, part of a plan to make the move smoother and more financially palatable to federal decision makers.<\/p>\n Article continues below this ad<\/p>\n Now, local officials are scrambling to figure out how to make up for the shortfall. One idea, they said, is to resubmit the $5 million grant request for when the state next reviews requests later this year.<\/p>\n County Commissioner Grant Moody said he sees the $5 million the state commission allotted to the city as progress and that it\u2019s still \u201creally early\u201d in what\u2019s expected to be a long process.<\/p>\n \u201cFive million for this project \u2026 that\u2019s a win. The glass is half full,\u201d said Moody, who\u2019s also a lieutenant colonel in the Marine Corps Reserve. \u201cWe are going to have to take a step back, get some feedback and hopefully come back for additional funding either this fall \u2026 or next year.\u201d<\/p>\n \u2018Too important\u2019<\/p>\n The funds will go toward updating an old building on Fort Sam for the health agency. Known as the South Beach Pavilion, the World War II-era former hospital is a four-story, 109,000-square-foot structure that could support 600 workers.<\/p>\n Article continues below this ad<\/p>\n The plans called for the initial $30 million to get the structure of the abandoned building into\u00a0shape. DHA has already committed from $30 million to $40 million for the second phase of the project to finish out the building.\u00a0 \u00a0 \u00a0<\/p>\n The development is expected to bring 560 white-collar jobs to San Antonio and could open the door to bringing as many as 3,300 people and their families to the city if the agency\u2019s entire headquarters is relocated. It remains unclear exactly how many workers or which portions of the agency would move.\u00a0<\/p>\n READ NEXT: Cornyn, Cruz pressed Hegseth on relocating military HQ to San Antonio<\/a><\/p>\n \u201cWe\u2019ll get this thing done eventually, one way or another,\u201d Moody said. \u201cIt\u2019s too important to our community not to.\u201d<\/p>\n Article continues below this ad<\/p>\n The grant to San Antonio was part of $26 million awarded Thursday for seven projects across the state to improve infrastructure within military communities. The commission is expected to allot another $14 million later this year. Communities must provide matching funds and grants are capped at $5 million.\u00a0<\/p>\n A source familiar with the process, who was granted anonymity to discuss confidential talks, said the nearly identical requests from the city and county led to only one being approved.<\/p>\n Moody acknowledged there could have been confusion over two grant applications tied to the same construction project.\u00a0<\/p>\n \u201cWe can probably tell our story better and more clearly,\u201d he said.\u00a0<\/p>\n Article continues below this ad<\/p>\n Because there\u2019s no guarantee the county will get the additional $5 million in the next grant cycle, though, the delegation is also looking at other funding sources.<\/p>\n Mayor Gina Ortiz said she was optimistic about the ongoing discussions with the Pentagon.\u00a0<\/p>\n \u201cAs Defense leaders continue to evaluate potential sites for\u00a0DHA, I remain confident San Antonio will fare well based on quality of life and cost of living considerations, and our unique defense health ecosystem,\u201d she said. \u201cWe\u2019ll continue working with state and federal leaders to bring additional DHA personnel and resources to Military City USA.\u201d<\/p>\n In a statement, the city thanked Gov. Greg\u00a0Abbott and the commission for the grant and acknowledged the program\u2019s competitiveness.\u00a0<\/p>\n Article continues below this ad<\/p>\n \u201cWhile we had hoped to see both the City and County applications funded in this round, we anticipate another funding opportunity later this year, and we will continue working collaboratively to advance this critical initiative,\u201d it said.\u00a0<\/p>\n Congressional interest<\/p>\n In January, U.S. Sens. John Cornyn and Ted Cruz pressed Defense Secretary Pete Hegseth<\/a> on relocating DHA during a visit to Brooke Army Medical Center. Hegseth was in town\u00a0to visit Army Chief Warrant Officer 5 Eric A. Slover and another soldier who were recovering at BAMC after being wounded in a U.S. military strike on Venezuela.\u00a0<\/p>\n Hegseth\u2019s Pentagon has already yanked two military headquarters and most of their 1,100 workers from the city. It\u2019s also stalled the Air Force\u2019s plans to raise the status of its cyber hub at Joint Base San Antonio-Lackland.<\/p>\n Article continues below this ad<\/p>\n The senators and Reps. Tony Gonzales, Chip Roy and John Carter wrote a letter in October asking Hegseth to stop the health agency from renewing its lease or attempting to buy its current headquarters building in Virginia.<\/p>\n \u201cInstead, we request\u00a0DHA relocate to Joint Base San Antonio (JBSA), a course of action that was previously directed during the first Trump Administration, is fiscally responsible, and will improve operational efficiencies for military medicine,\u201d they wrote.<\/p>\n RELATED: GIs wounded in Venezuela attack flown to San Antonio<\/a><\/p>\n The move would save as much as $87 million a year, according to the congressmen.<\/p>\n Article continues below this ad<\/p>\n<\/p>\n