DEPARTMENT: Center City Development and Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: Council District 1
SUBJECT:
A Resolution approving the Third Amendment to the Economic Development Grant Agreement with Iron and Steel Lofts, LLC.
SUMMARY:
This item approves an amendment to the Economic Development Grant Agreement with Iron and Steel Lofts, LLC for the Steel House Lofts project at 1401 South Flores St, located within the boundary of the Westside TIRZ.
BACKGROUND INFORMATION:
In April of 2010, the City of San Antonio entered into an Economic Development Grant Agreement with Iron and Steel Lofts, LLC for the development of the Steel House Lofts project at 1401 South Flores St. in Council District 1. Incentives for the project included a funding grant of $109,000 and a Property Tax Increment Reimbursement of $719,962 over 20 years. The project also received a Historic Tax Exemption. In exchange, the developer would build rehabilitate the historic Penden Iron and Steel Company building, create 67 new rental housing units, 2,500 square feet of commercial space, and make approximately $720,000 in public improvements at the project site by December 31, 2012.
The project opened and began leasing in December of 2012. It included the requisite housing units, public improvements, and retail space which are now home to the popular restaurant, Fruteria. Upon the grand opening of the project, all obligations of the agreement were satisfied.
ISSUE:
After three years of successful operation as an apartment complex, the developer now desires to convert the project into condominiums. Currently, the agreement specifies the required housing units as "rental units". In order to facilitate the conversion to condominiums for sale to individual owners and to remain in compliance order to facilitate the conversion to condominiums for sale to individual owners and to remain in compliance with the incentive agreement, City staff is recommending an amen...
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