River North- San Antonio

[SAguy]

David Hendricks: Approval of taxing area could help remake part of downtown

San Antonio Express-News

Dec. 14 could be a watershed day for downtown San Antonio.

That is when the City Council is slated to vote on a 194-acre taxing area covering the northeast sector of the central business district. Future increased property tax revenues would finance dressing up the area — called River North — so it can draw more private investments for housing, retail and offices.

The decision is scheduled for Dec. 14 on purpose. The council wants to lock in 2006 property assessments totaling nearly $125 million so future increases will count toward the project.

The 25-year tax increment-financing proposal envisions an increase in property valuations zooming to $1.2 billion by 2031, yielding about $67 million for physical improvements. The fund would finance utility line burial and street improvements, especially along the main thoroughfares of Broadway and Avenue B, said David Garza, city Neighborhood Action director.

The plan envisions that private investments will add a half-million square feet of office space, a quarter-million square feet of retail space and 5,500 or more residential units with a possible average of two people per unit.

Another 7,000 parking spaces could be built, although multilevel garages would be encouraged instead of flat lots.


The $67 million worth of improvements would be in addition to a $194 million extension of the River Walk, including the section between Lexington Street and the San Antonio Museum of Art on Jones Avenue.

The two-year River Walk extension project, which breaks ground in March, will be paid from city, county and federal funds. The extended River Walk would provide a park dividing the district.

The primary purpose of the tax district is to accelerate housing in an underdeveloped area as an alternative to further sprawl on the city's outskirts, said Andrés Andújar, group executive officer of the architectural firm 3D/International.

He probably has worked more on behalf of River North than anyone else. Since 2005, Andújar has made about 70 presentations on the project to businesses, agencies and organizations.

So far, only the city proposes a tax district. But other taxing entities, including Bexar County, the Alamo Community College District and the San Antonio River Authority, could create their own arrangements to add funds for improvements.

If the tax district is approved, a board of public and private sector representatives would be established to oversee all expenditures except those for river improvements.

The Downtown Alliance San Antonio plans to raise private funds for an urban planning firm to write a block-by-block master plan, said Ben Brewer, alliance president.

The proposed River North boundary is zoned mostly light industrial, but it already has some impressive investments. AT&T Corp. occupies two office towers there, built initially by Valero Energy Corp. KLRN and KSAT operate television stations, and the district includes most of the San Antonio Express-News complex.

The area also features a Cadillac dealership, several landmark churches, additional park space at Jones and Broadway, and a beautiful Southern plantation-style house that serves as a Veterans of Foreign Wars post.

One street enhancement that has been widely discussed is narrowing Broadway to four from seven lanes to allow for wider sidewalks, trees and a boulevard.

That could be accomplished, Andújar said, and still allow Broadway to accommodate the annual Fiesta parades.

The City Council's choice Dec. 14 boils down to this: Keep the district's money flowing into the general fund or divert enough revenues to dramatically increase property values over 25 years in an underdeveloped area.

Considering that urban sprawl is much more expensive for the city to serve with fire, police and other city services, City Hall might actually save money by opening the central business district to condominiums and apartments.

River North would result in a better-balanced, healthier city.