DEPARTMENT: Neighborhood and Housing Services Department
DEPARTMENT HEAD: Verónica R. Soto, AICP, Director
COUNCIL DISTRICTS IMPACTED: 3
SUBJECT:
Consideration of an Ordinance approving a Funding Agreement with the Mission Drive-In Tax Increment Reinvestment Zone for the River-To-Mission Connection Project located at 6701 San Jose Drive in City Council District 3 and within the Mission Drive-In Tax Increment Reinvestment Zone.
SUMMARY:
City Council is being asked to consider an Ordinance approving the Funding Agreement with the Mission Drive-In Tax Increment Reinvestment Zone for the River-To-Mission Connection Project in an amount not to exceed $150,000.00 in reimbursable TIF funds for public infrastructure and public improvements associated with the construction of the Napier Avenue Right Turn Lane and the street closure and construction of a turn around cul-dul-sac on San José Drive.
BACKGROUND INFORMATION:
City Council designated the City-initiated Mission Drive-In Tax Increment Reinvestment Zone (TIRZ), December 11, 2008 to assist with the revitalization and reinvestment initiatives. The Mission Drive-In TIRZ allows for the reimbursement of eligible development expenses that promote the development or redevelopment in the zone that would not occur solely through private investment. The TIRZ termination date is September 30, 2027.
The City’s River-To Mission Connection (“Project”), located at 6701 San José Drive, in the Mission Drive-In TIRZ, City Council District 3, within the World Heritage Buffer Zone and Tax Increment Reinvestment Zone. The project will continue the efforts of the City’s World Heritage Office to address connectivity from the San Antonio River Mission Reach, to Mission San José, and to the Mission Drive-In, as part of a comprehensive plan through the City’s River-To-Mission Connection (“Project”). The total development cost for the turning lane on Napier and the hammerhead turn-around on San José Drive is $150,000.00. The proposed timeline is fall 2017 and projected completion mid-2018.
ISSUE:
The World Heritage Office has been working with the National Park Service, Las Misiones, the Parish priests and adjacent Neighborhood on this project for over a year.
On May 2017, the City’s World Heritage Office applied for funding from the City’s Tax Increment Financing Program to address connectivity from the San Antonio River Mission Reach, to Mission San José, and to the Mission Drive-In, as part of a comprehensive plan through the City’s River-To-Mission Connection. With the anticipated increase in tourists and visitors to the San Antonio Missions National Historical Park, and activities at Mission San José, and the street closure of a portion of San José Drive (approved by the Planning Commission in May 2016 and Council on June 15, 2017), the right turn lane will improve traffic flow.
On June 15, 2017, City Council approved the street closure and transfer to the National Park Service (NPS) of San José Drive just north of Mission San Jose. A turn easement is required due to the closure of San Jose Drive.
On June 27, 2017, the TIRZ Board approved a Resolution in support of the Project authorizing City staff to negotiate an agreement in an amount not to exceed One Hundred Fifty Thousand Dollars ($150,000.00) in reimbursable funds for the public infrastructure and public improvements. The River-To-Mission Project consists of two components: construction of the Napier Avenue Right Turn Lane and the street closure and construction of a turn around cul-dul-sac on San José Drive for a total cost of $150,000.00.
The Mission Drive-In Tax Increment Reinvestment Zone Board approved the Funding Agreement September 12, 2017. This Ordinance authorizes the execution of the Agreement between the City’s World Heritage Office and the Board of Directors of the Mission Drive-In Tax Increment Reinvestment Zone to address public infrastructure and public improvements associated with project along Napier and San Jose Drive, the connectivity from the San Antonio River Mission Reach, to Mission San José, and to the Mission Drive-In, as part of a comprehensive plan through the City’s River-To-Mission Connection. The development cost includes site work, and hard construction costs.
The $150,000.00 in the Mission Drive-In Tax Increment Reinvestment Zone funding is necessary to ensure that the project is completed, as well as economically feasible.
ALTERNATIVES:
City Council could decide not approve the Funding Agreement with the Mission Drive-In Tax Increment Reinvestment Zone. If so, this action could negatively affect the River-To-Mission Connection Project and the proposed project would be infeasible.
FISCAL IMPACT:
This action will authorize a Funding Agreement with the Mission Drive-In Tax Increment Reinvestment Zone in an amount not to exceed $150,000.00. Projects funded through the Mission Drive-In TIRZ are paid solely from the tax increment generated and will not impact the City’s General fund. The City is the only participating taxing entity at a 90% rate.
RECOMMENDATION:
Staff recommends approval of an Ordinance authorizing a Funding Agreement with the Mission Drive-In Tax Increment Reinvestment Zone in an amount not to exceed $150,000.00 for the River-To-Mission Connection Project located at 6701 San Jose Drive in City Council District 3; within the Mission Drive-In Tax Increment Reinvestment Zone boundary.