DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Amendment to the Agreement to Pledge Structural Reserve Funds between the City and Port San Antonio and the redirection of FY14 allocated funds to pay down a HUD 108 loan in order to provide Port San Antonio with flexibility to assist in the retention and attraction of aerospace tenants.
SUMMARY:
The City's FY 2014 adopted budget allocated $3.7M to Port San Antonio (the "Port") to provide funding for the improvement of certain streets. The improvements were intended to bring the streets up to City Code requirements allowing for their future dedication to the City. As a result of a coordinated and focused effort to assist the Port in retaining existing aerospace tenants and encouraging those companies to expand into the commercial aerospace industry, staff is proposing to redirect the previously allocated $3.7M to assist the Port in paying down a Housing and Urban Development (HUD) 108 Loan. Additionally, to provide flexibility to the Port to attract and retain its aerospace tenants, the staff is proposing an amendment to the Agreement to Pledge Structural Reserve Funds between the City and Port San Antonio to remove the structural reserve requirement.
BACKGROUND INFORMATION:
San Antonio has long played, and continues to play, an important role in the global aerospace industry. From the nation's first military flight at Fort Sam Houston in 1910, through the founding of Kelly Air Force Base in 1917 and its nearly 80 years of operation, to the establishment of the Port, San Antonio has served as an important asset in the U.S. defense aerospace industry.
On July 13, 2001, Kelly Air Force Base officially closed as a result of the Base Realignment and Closure (BRAC) 1995, and the land and facilities were transferred to the Greater Kelly Development Authority, a City-created Local Redevelopment Authority respon...
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