DEPARTMENT: Department of Planning and Community Development
DEPARTMENT HEAD: John Dugan
COUNCIL DISTRICTS IMPACTED: 1, 2 &5
SUBJECT:
Consideration of an Ordinance amending the Development Agreement between the City of San Antonio, the Board of Directors of the Inner City Tax Increment Reinvestment Zone (TIRZ #11) and the Blue Star Contemporary Arts Museum.
SUMMARY:
City Council is being asked to consider an amendment to the Development Agreement between the City, TIRZ #11 and Blue Star Contemporary Arts Museum changing the scope of work, extending the term of the agreement and increasing the funding amount from $50,000 to $100,000.
BACKGROUND INFORMATION:
On November 14, 2014 the Inner City TIRZ Board of Directors awarded $50,000.00 to the Blue Star Contemporary Art Museum for Façade Improvements to their current location at 116 Blue Star. A Development Agreement was negotiated and later approved by the Inner City TIRZ Board on May 1, 2015. Subsequently, on June 18, 2015, City Council authorized the execution of the Development Agreement through Ordinance 2015-06-18-0592.
To date, Blue Star has completed the architectural drawings for the project and has received approval from their Board of Directors and the City’s Historic Design and Review Commission (the project site is listed on the National Registry of Historic Places).
On January 21, 2016 the Executive Director for Blue Star and the Project Architect met with City staff to request amendments to the executed Development Agreement. During the design period, Blue Star identified an opportunity to expand the scope of work to include the façade of Blue Star’s MOSAIC Student Artist Program space at 132 Blue Star. The MOSAIC program actively engages area youth in the creation and business of art from art-making techniques to networking with patrons and accepting commissions.
On February 12, 2016, the Inner City TIRZ Board of Directors approved amendments to the Development Agreement including extending the term, changing the scope of work and increasing the TIRZ funding from $50,000 to $100,000.
ISSUE:
In accordance with Chapter 311 of the Tax Code, the Board of Directors of a TIRZ and the governing body of the municipality that creates a reinvestment zone may enter into agreements as necessary or convenient to implement the project plan.
Blue Star Contemporary is a key arts and cultural institution in the Southtown area and the Inner City TIRZ. Last year, 18,000 people visited Blue Star. As one of the major visual arts institutions within the Inner City TIRZ, increasing Blue Star’s visibility and ability to serve the public is important to the revitalization efforts of the TIRZ and can help spur additional economic development activity within the TIRZ boundary.
Expanding the scope of work to include the MOSAIC Student Artist Program will enhance Blue Star’s ability to serve the public and improve accessibility to this important student arts program.
Proposed changes to the Development Agreement include:
• Term - Extended from September 2015 to August 2016 to allow more time to finalize plans, consolidate community support and to allow for continuation of exhibits and educational programming with minimal interruption
• Scope of Work - Improvements to overall design and additional façade improvements at MOSAIC entrance to include new canopy, entrance, concrete stairwell and lighting
• Funding Amount - Increased from $50,000 to $100,000
ALTERNATIVES:
City Council could deny the request to amend the agreement. While the current agreement would remain in effect, this could risk delaying or preventing the proposed enhancements to the project potentially limiting the effectiveness of the final project.
FISCAL IMPACT:
This ordinance authorizes the additional commitment of $50,000 for a total of $100,000 for improvements to the Blue Star Contemporary Arts Museum. Funding for this project will come from the Inner City TIRZ fund. There is no direct fiscal impact to the City’s General Fund.
RECOMMENDATION:
Staff recommends approval of the Ordinance amending the Development Agreement between the City of San Antonio, the Board of Directors of the Inner City Tax Increment Reinvestment Zone (TIRZ #11) and the Blue Star Contemporary Arts Museum.