DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, FAICP
COUNCIL DISTRICTS IMPACTED: 3
SUBJECT:
An ordinance approving the execution of a Development Agreement with R&A Garcia Properties of Lufkin, LLC, City of San Antonio, and Mission Drive-In TIRZ Board of Directors for eligible public improvements for an amount not to exceed $600,000 for the Nicha’s Mexican Comida Project located at 3331 Roosevelt Ave (parcels 1 & 2) in City Council District 3.
SUMMARY:
R&A Garcia Properties of Lufkin, LLC will redevelop approximately 2.69 acres located at 3331 Roosevelt Ave. into the new 7,800 square foot Nicha’s Comida Mexicana. This new location will replace the existing Nicha’s located at 3119 Roosevelt Ave. at the corner of Roosevelt Ave. and E. White. The new Nicha’s will be located across the street from Mission San Jose and will provide much needed parking for their customers and for visitors to Mission San Jose. The project is scheduled to commence in January 2021 with an estimated completion date of March 31, 2022.
BACKGROUND INFORMATION:
On March 1, 2020, R&A Garcia Properties of Lufkin, LLC submitted a TIRZ funding request for reimbursement of eligible project costs for the Nicha’s Mexican Comida Project. The overall development cost for the project is estimated at $4,000,000. Eligible public improvements include demolition, site work, public utilities, exterior lighting, landscaping, exterior signage, public sidewalk improvements, public street improvements, curb cuts, bicycle facilities, and fencing.
On October 23, 2020, the Mission Drive-In Board of Directors approved a Resolution authorizing the execution of a Development Agreement to provide funding in an amount not to exceed $600,000 in available tax increment from the TIRZ fund. The reimbursement will be made over six fiscal years beginning in fiscal year 2022 with reimbursements of $100,000 per fiscal year.
ISSUE:
City Council consideration is requested for the approval of a Development Agreement between the Board of Directors for Tax Increment Reinvestment Zone Number 32, City of San Antonio, and R&A Garcia Properties of Lufkin, LLC for an amount not to exceed $600,000 for eligible public improvements for the Nicha’s Comida Mexicana Project.
ALTERNATIVES:
Should the Development Agreement with R&A Garcia Properties of Lufkin, LLC for an amount not to exceed $600,000 not be approved, the developer will need to seek alternate funding, delaying the re-development of the property.
FISCAL IMPACT:
If approved, this action will authorize the payment in an amount not to exceed $600,000 from the Mission Drive-In TIRZ fund for the reimbursement of eligible expenses over six fiscal years beginning in fiscal year 2022 with reimbursement of $600,000 per fiscal year. Funding for this agreement is available through the tax increment produced by the Mission Drive-In TIRZ #32. There will be no impact to the General Fund.
RECOMMENDATION:
Staff recommends approval of an ordinance to execute a Development Agreement with R&A Garcia Properties of Lufkin, LLC for eligible public improvements for the Nicha’s Comida Mexican Project.