SAN ANTONIO | Urban Core Development Thread

[kingkirbythe....]

Commentary: Broadway belongs to San Antonio

https://www.expressnews.com/opinion/...o-16972392.php

As San Antonio reels from the decision by the Texas Transportation Commission at the end of January to go back on its word, subvert the doctrine of local control and move actively against its Vision Zero goals, the brilliant Feb. 13 Express-News article “A remedy for construction” explained why TxDOT reversed its course with the city of San Antonio regarding the upper Broadway redesign.

[JACKinBeantown]

Originally Posted by kingkirbythe....

Commentary: Broadway belongs to San Antonio

https://www.expressnews.com/opinion/...o-16972392.php

As San Antonio reels from the decision by the Texas Transportation Commission at the end of January to go back on its word, subvert the doctrine of local control and move actively against its Vision Zero goals, the brilliant Feb. 13 Express-News article “A remedy for construction” explained why TxDOT reversed its course with the city of San Antonio regarding the upper Broadway redesign.

It's behind a firewall. Can you please copy and paste it?

[jaga185]

I got you!

Commentary: Broadway belongs to San Antonio
As San Antonio reels from the decision by the Texas Transportation Commission at the end of January to go back on its word, subvert the doctrine of local control and move actively against its Vision Zero goals, the brilliant Feb. 13 Express-News article “A remedy for construction” explained why TxDOT reversed its course with the city of San Antonio regarding the upper Broadway redesign.

The Texas Transportation Commission claims due to capacity issues, it cannot allow any reduction in vehicle lane miles on upper Broadway and the road must retain its designation as Texas Loop 368. TxDOT’s ownership of Broadway is just a designation — the street itself belongs to San Antonians.

Broadway, like other former state highway segments in the middle of cities and small towns, serves a different purpose and should not be rebuilt like a state highway in the Texas countryside. Broadway acts as a boulevard, connecting historic neighborhoods, small businesses, burgeoning developments and Brackenridge Park.

TxDOT has adopted a goal of zero deaths on all Texas roadways by 2050. As Commissioner J. Bruce Bugg Jr. pointed out at the Texas Transportation Commission meeting in January, only 3 percent of Texans use something other than a car to commute to work. But 20 percent of all traffic deaths in Texas are pedestrians — that is horrifyingly disproportionate. Wide roads and fast vehicle traffic, coupled with nonexistent or poorly maintained infrastructure for pedestrians, cyclists and transit users, are what has made this section of Broadway area a severe injury area, according to the city.

In response to a 2016 traffic study that noted that with Broadway accommodating new kinds of transportation infrastructure, more residents will use other types of mobility, TxDOT Executive Director Marc Williams said it wasn’t a reasonable assumption. But that goes against the impetus of the highway widening projects TxDOT is known for — building more capacity.

The city seeks to build new capacity on Broadway for the increasing number of pedestrians, cyclists and transit users flocking to Midtown. Commissioner Laura Ryan spoke eloquently about the need to make Texas’ roads safer for all users. ActivateSA applauds Ryan, Mayor Ron Nirenberg, San Antonio City Council and city staff who have stood up for safer roads in San Antonio and the 78 percent of San Antonio voters who approved a safer Broadway.

San Antonio envisioned building a Broadway that works for everyone: those driving, walking, rolling and biking. TxDOT should allow that vision to reach reality.

Kari Kuwamura is the executive director of ActivateSA, a tactical planning initiative working collectively to empower San Antonians to get around their city safely and efficiently on a transportation system that works for everyone.[/U]

[jaga185]

Also! https://www.expressnews.com/business...e-16974941.php

City Council gave the go-ahead Thursday to a deal in which Hyatt Corp. would sell its Grand Hyatt downtown, city-backed bond debt would be paid off and ownership of the struggling hotel would ultimately transfer to the city.

The city issued $208 million in bonds in 2005 to build the 1,003-room hotel connected to the Convention Center, which it owns.

The Grand Hyatt has largely under-performed since opening in 2008 and took a major hit during the coronavirus pandemic as a slew of conferences were canceled. The hotel shut its doors for five months, and Hyatt stopped making bond payments.

That left the city on the hook for making $10.4 million in debt payments, tapping revenue from the local tax on hotel guests and other visitors.

With the new deal, the city would be repaid and would no longer be liable if the hotel does not generate enough revenue to meet debt requirements.

A company affiliated with Tucson, Ariz.-based nonprofit Community Finance Corp. would acquire the Grand Hyatt and hold it in a trust for the city.

The Public Finance Authority, a Wisconsin agency that assists local governments with financing projects, would issue up to $450 million in bonds for the transaction.

That amount could change, based on market conditions when the bonds are priced, said Ben Gorzell, the city’s chief financial officer.

The Grand Hyatt opened in 2008.

Courtesy
Proceeds from the bond sale would be used to pay off about $168.3 million of the hotel’s current outstanding bonds and $15.3 million owed to the city for debt payments and unpaid ground rent; to pay Hyatt around $140 million to acquire the hotel; and to fund $75 million in debt and operating reserves for the hotel and $10 million for financing the transaction.

The bonds would be repaid from Grand Hyatt revenues — which plunged during the pandemic — and bondholders will have a lien on the hotel.

On ExpressNews.com: Hotel operator to sell troubled Grand Hyatt; San Antonio off the hook for bond payments

The city owns the land under the hotel. Hyatt Corp. would continue managing the hotel under a 30-year agreement with Community Finance Corp., which would lease the land from the city.

The bonds are scheduled to be paid back over 40 years, though an independent consultant estimates that will happen sooner. Ownership would transfer to the city once the debt has been erased.

Before the pandemic, Hyatt asked the city about the possibility of acquiring the city land under the hotel and buying out its ground lease. Last fall, however, the hotel operator expressed interest in potentially selling the Grand Hyatt, city staffers said.

They described the deal as beneficial because the city would no longer be backing the hotel bonds, would be repaid for the debt payments and would eventually have control of the hotel. The Grand Hyatt is a big asset that has helped the city attract major events such as the NCAA men’s Final Four tournament, they said.

Seven council members voted to approve agreements associated with the proposed arrangement Thursday. Three members abstained.

While council members had been briefed on the matter in the past, District 2 Councilman Jalen McKee-Rodriguez, who abstained, said he was concerned that the public hadn’t had enough time to understand the deal, which became public about a week ago.

Councilwomen Teri Castillo and Ana Sandoval — of Districts 5 and 7, respectively — also abstained from voting.

District 8 Councilman Manny Pelaez, who supported the proposal, asked why it was brought forward now. The deal is “very sensitive to the bond market,” where interest rates — and volatility — are rising, Gorzell said.

Mayor Ron Nirenberg said the agreement fulfills his top priorities, which included recovering the hotel occupancy tax used for the payments Hyatt failed to make, and safeguarding taxpayers from future economic upheavals.

“What we’ve been brought today ... can’t be described (as) anything other than a win-win,” he said.

No more ‘living wage’ requirement
The city’s 2005 agreement with Hyatt would end, eliminating a living wage requirement of about $10 an hour for hotel employees. Gorzell said that’s similar to how the city handles other economic development deals — after a tax abatement for a project expires, for example, the living wage requirement also ends.

Two leaders of COPS/Metro, a community activist organization, blasted the city’s support of the deal.

“Our city must include a living wage provision in all agreements with both public and private sector entities regardless of whether they receive incentives,” said Maria Tijerina of COPS/Metro. “This way our residents here in San Antonio know that the city is serious in changing our historic low-wage town, low-wage city narrative.”

Unite Here Local 23 represents the hotel’s unionized workers. Under the collective bargaining agreement, pay is “far exceeding the living wage scenario,” said Philip Stamm, the hotel’s vice president and general manager.

The hotel transaction is not yet finalized. Bond pricing and the deal’s financial closing are expected to take place in March and April, respectively.

Under-performer
The Grand Hyatt was pitched as a major boon to the city’s convention business, potentially drawing more conferences and boosting other hotels downtown. But a bond disclosure document indicates the hotel has not met forecasts developed by consulting firm HVS in 2005.

Annual average occupancy was supposed to hit 76 percent in 2011 but never rose to that level. The occupancy rate was 69.8 percent in 2019 before the pandemic, and plummeted to 17.4 percent in 2020 when the hotel was closed.

Revenue fell from $80.3 million to $20.1 million during the same period. Hyatt made a total profit of nearly $35 million after debt payments between 2016 and 2019 but incurred a $17.7 million loss in 2020.

[JACKinBeantown]

Thanks!

[kingkirbythe....]

Aztec Theatre group planning upgrades for boutique hotel with rooftop lobby

https://www.mysanantonio.com/busines...o-17000823.php

The oldest theater and entertainment venue in San Antonio is about to have an upgrade. The group that owns the downtown's Aztec Theatre has a new vision for the upper office floors of the 96-year-old building.

Local developers and architects submitted plans to the Historic and Design Review Commission to convert the upper four floors of office space above the Aztec Theatre into a boutique hotel. The plans would also add a rooftop lounge and lobby.

...

"The idea, from a historic standpoint, is to set this new edition from the face of the old building and not try to replicate or make anything that looks like it's trying to copy something that's historic," Monceaux says.

Both stress that the hotel will not interfere with Aztec Theatre operations, especially since the four floors of the office building are essentially built around the theater.

[kingkirbythe....]

Houston developer Urban Genesis buys more land on North St. Mary’s in San Antonio

https://saheron.com/urban-genesis-bu...s-san-antonio/

Houston multifamily developer Urban Genesis is tightening its hold on North St. Mary’s Street with the purchase of a 0.6-acre vacant lot, down the street from the San Antonio Museum of Art, where it plans to build apartments.

On March 7, an entity linked with the developer bought the lot, beside the Super 8 by Wyndham hotel to the north and beside Armadillo Boulders to the east at the northeast corner of the crossing of North St. Mary’s and Camden streets, county deed records show. It’s also across the street from El Nogal Mexican Restaurant.

The purchase comes about six months after Urban Genesis bought three properties encompassing a total of two acres on and around North St. Mary’s in Tobin Hill, including a lot beside The Lonesome Rose bar, and another across the street from developer David Adelman’s Midtown Station retail center, home to Ming’s Chinese restaurant, among other tenants.

[jkill34]

Originally Posted by kingkirbythe....

Houston developer Urban Genesis buys more land on North St. Mary’s in San Antonio

https://saheron.com/urban-genesis-bu...s-san-antonio/

Houston multifamily developer Urban Genesis is tightening its hold on North St. Mary’s Street with the purchase of a 0.6-acre vacant lot, down the street from the San Antonio Museum of Art, where it plans to build apartments.

On March 7, an entity linked with the developer bought the lot, beside the Super 8 by Wyndham hotel to the north and beside Armadillo Boulders to the east at the northeast corner of the crossing of North St. Mary’s and Camden streets, county deed records show. It’s also across the street from El Nogal Mexican Restaurant.

The purchase comes about six months after Urban Genesis bought three properties encompassing a total of two acres on and around North St. Mary’s in Tobin Hill, including a lot beside The Lonesome Rose bar, and another across the street from developer David Adelman’s Midtown Station retail center, home to Ming’s Chinese restaurant, among other tenants.

Bummer, it'll be the most cookie-cutter design project. Kinda hate these because it's not autentic to it's surroundings.

[Keep-SA-Lame]

Originally Posted by jkill34

Bummer, it'll be the most cookie-cutter design project. Kinda hate these because it's not autentic to it's surroundings.

"Houston developer", the two most feared words in the English language.

[starvinggryphon]

Originally Posted by Keep-SA-Lame

"Houston developer", the two most feared words in the English language.

I was disappointed that they were only going to be 4 stories... or less. But at any rate it's better than what's there now, I guess.

[kingkirbythe....]

Former CPS Energy building in downtown San Antonio to undergo multi-million renovation

https://www.expressnews.com/business...n-17033509.php

It occupies a slice of prime real estate along the River Walk, across from La Villita Historic Village and a short walk from the Henry B. González Convention Center and Hemisfair.

But the drab parking garage and office building at 146 Navarro St., long occupied by CPS Energy, is not much of a draw for tourists or residents roaming around downtown.

Its new owner, Los Angeles-based BH Properties, wants to change that.

The real estate firm bought the 10-story building for $22.25 million last year from CPS, which sold it to help offset the cost of its new McCullough Avenue headquarters.

BH hired architecture and design firm Gensler and commercial real estate firm CBRE to give the building a makeover and bring in new tenants.

“It’s an amazing piece of property that is ripe for redevelopment,” said Jim Shelton, design director at Gensler San Antonio. “It’s about creating a new district and making more of the building mixed-use.”

About 100,000 square feet of office space on three floors with tiered terraces will be refreshed with new windows, greenery, outdoor seating and other features.

There will be about 20,000 square feet of retail added on the street level, including a two-story restaurant overlooking the River Walk. Pods with retail businesses will be set up at a small park next to La Villita.

Panels and colorful murals will be added to spruce up the outside of the seven-story parking garage, which includes more than 600 spaces. The breezeway and lobby also will be refreshed.

The renovations are expected to cost over $10 million and be completed in early 2023, said Brian Park, executive managing director of commercial operations at BH.

“We’re excited,” he said. “There’s a ton of stuff happening in downtown ... and I think our project is going to add to the new offerings.”

Those involved with 146 Navarro are hopeful that the building’s amenities, upgraded office space and garage will attract tenants. Steve Thomas, senior vice president of advisory and transaction services at CBRE, said there are few buildings downtown with as much parking.

“The result of that is going to be people that wouldn’t otherwise consider moving downtown will now have a building to consider,” he said.

The garage was built in the late 1960s to provide parking for the World’s Fair, and the office space was added for CPS in 1987. The building was among more than $50 million worth of properties the utility put on the market in 2019.

Privately-held BH is a “value add” buyer that acquires and repositions, repurposes or re-leases buildings that are often at least partially vacant, said president James Brooks.

The company owns about 100 properties in 18 states. Texas has been one of its target markets for several years.

“When you have an opportunity to buy six stories of parking and three stories of office in a parking-constrained market and a phenomenal location on the River Walk, we thought there’s nothing but opportunity here,” Brooks said of 146 Navarro.

[kingkirbythe....]

"The garage was built in the late 1960s to provide parking for the World’s Fair, and the office space was added for CPS in 1987. The building was among more than $50 million worth of properties the utility put on the market in 2019."

I did not know this. Very interesting.

[kingkirbythe....]

Alamo Heights City Council OKs Katherine Court apartment complex

https://sanantonioreport.org/alamo-h...rt-apartments/

After months of challenges by residents, the Alamo Heights City Council voted Monday to grant final approval for a multifamily development on Katherine Court.

The Council gave the green light to Ridgemont Properties for a three-story apartment complex with 27 units near the University of the Incarnate Word; the Alamo Heights Board of Adjustment denied the developer’s request in February to build 35 units.

Ridgemont founder and CEO Trebes Sasser Jr. first presented plans for the development last summer in a request to demolish existing structures on four lots.

[JACKinBeantown]

Originally Posted by kingkirbythe....

Alamo Heights City Council OKs Katherine Court apartment complex

https://sanantonioreport.org/alamo-h...rt-apartments/

After months of challenges by residents, the Alamo Heights City Council voted Monday to grant final approval for a multifamily development on Katherine Court.

The Council gave the green light to Ridgemont Properties for a three-story apartment complex with 27 units near the University of the Incarnate Word; the Alamo Heights Board of Adjustment denied the developer’s request in February to build 35 units.

Ridgemont founder and CEO Trebes Sasser Jr. first presented plans for the development last summer in a request to demolish existing structures on four lots.

I can see why the residents didn't want it. It looks very Planet of the Apes.

[Keep-SA-Lame]

Originally Posted by JACKinBeantown

I can see why the residents didn't want it. It looks very Planet of the Apes.

It's not my favorite but the more density we can get in high wealth areas, particularly ones with good school districts, the better.

[Restless One]

Originally Posted by kingkirbythe....

"The garage was built in the late 1960s to provide parking for the World’s Fair, and the office space was added for CPS in 1987. The building was among more than $50 million worth of properties the utility put on the market in 2019."

I did not know this. Very interesting.

I remember them adding the office space, but at the time, did not know the parking structure already existed.

That said, I'm not very enthusiastic about lipstick being applied to this particular pig.

[Jake Tex]

Originally Posted by JACKinBeantown

I can see why the residents didn't want it. It looks very Planet of the Apes.

I like it personally, but taste is subjective of course. It's disappointing they lowered the density 30% to satisfy the NIMBY neighbors. What a shame.

[kingkirbythe....]

‘Along the lines of Hotel Emma.’ Austin developer has big plans for San Antonio Express-News building

https://saheron.com/along-lines-hote...-express-news/

This month, San Antonio joined the ranks of American cities whose newspapers have sold their historic offices, built during the industry’s heyday, to be redeveloped as condos or hotels.

A partnership led by Sutton Co. of Austin, a firm with more than 20 years of experience rehabilitating historic buildings, purchased the former San Antonio Express-News headquarters at 301 Avenue E last week from Hearst Corp., the newspaper’s parent company, county deed records show.

In a phone interview on Thursday, Sutton’s chairman, Mac Pike, described the firm’s ambitious plans for the 2.14-acre property, which will likely include elements of multifamily housing and retail accompanying an upscale boutique hotel “along the lines of Hotel Emma,” he said.

Though the project is in its early planning stage, the firm expects to demolish the additions made to the building since it was constructed in 1929, Pike said. The historic building would be converted into a hotel, with condominiums attached which would share the hotel’s brand. A multifamily tower would be built beside it, and there would likely be a retail component.

There could also be an event venue with a capacity of about 3,000 people, he said, likening it to the Moody Theater in Austin, where Austin City Limits is filmed.

...

Over the last decade, newspapers across the U.S. have been selling their historic office buildings. In 2016, the Tribune Tower in Chicago, the longtime home of the Chicago Tribune—which served as a model for the Express-News building—was sold to a developer from Los Angeles with plans to convert it into a mixed-use development. That same year, the Los Angeles Times building was sold to a Canadian developer.

In Austin, the offices of the American-Statesman are set to be transformed into six high-rise towers.

[theOGalexd]

Wait so they're building a new tower on the lot as well? Did I read that right lol?

[Keep-SA-Lame]

Originally Posted by theOGalexd

Wait so they're building a new tower on the lot as well? Did I read that right lol?

Though the project is in its early planning stage, the firm expects to demolish the additions made to the building since it was constructed in 1929, Pike said. The historic building would be converted into a hotel, with condominiums attached which would share the hotel’s brand. A multifamily tower would be built beside it, and there would likely be a retail component.

Correct. As far as demo goes, I'm fairly certain the 3/4ths of the block that isn't the office building itself is what they want to demolish. So, a fair amount of room to play with.