City of San Antonio - File #: 15-4767

• File #: 15-4767
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 9/17/2015
• Posting Language: An Ordinance authorizing a Chapter 380 Economic Development Program Grant and Loan Agreement in a cumulative amount of approximately $941,710.70 with 400 East Houston Street, LP for project costs related to the rehabilitation of the Maverick Building, to include a release of lien in the approximate amount of $381,615.65. [Lori Houston, Assistant City Manager and Acting Director, Center City Development & Operations]

Date	Ver.	Action By	Action	Result
9/17/2015	1	City Council A Session	adopted	Pass

DEPARTMENT: Center City Development & Operations


DEPARTMENT HEAD: Lori Houston


COUNCIL DISTRICTS IMPACTED: City Council District 1


SUBJECT:

Economic Development Incentive Agreement for the Maverick Building


SUMMARY:

This ordinance authorizes an Economic Development Incentive Agreement between the City of San Antonio and 400 East Houston Street, LP for the rehabilitation of the Maverick Building located at 400 E. Houston Street.

BACKGROUND INFORMATION:

The Maverick Building, listed on the National Register of Historic Places, was built in 1921 as an office building with first floor retail and a barber shop in the basement. It was converted in 1996 to low-income housing with loan assistance from the City of San Antonio and the federal Community Development Block Grant program in the amount of $1,071,000. Since that time, the apartments within the building have fallen into disrepair and the retail space has not been actively leased for decades.

The new owner, 400 East Houston Street, LP is proposing to invest approximately $5,000,000.00 to renovate all 85 multifamily units and reactivate the approximately 6,000 square feet of street-level retail space. The rehabilitation of this property will provide local workforce housing, create new retail value along an important section of Houston Street, and reenergize a historic and iconic building.


ISSUE:

The relatively small number of units and their lower absolute rents present financial challenges to the redevelopment of the Maverick Building's housing component. There is also a perceived lack of pedestrian traffic that potential retail tenants will need to overcome since there is no parking in the building. In order to ensure the project's success, 400 East Houston Street, LP has requested financial assistance in the form of development incentives for both the multifamily and retail components of the project.

Staff is recommending a development incentive package totalin...