Bexar County Commissioner Court approved roughly $1.4 million worth of tax abatements for housing developments in one of the city’s most desirable, high-rent neighborhoods.
The two projects — on Josephine Street and Elmira Street near the Pearl — are expected to include a number of public amenities, helping developer Oxbow Real Estate LLC score the incentives intended for downtown revitalization.
But none of the units will be in the county’s affordable housing pool, causing Commissioner Justin Rodriguez (Pct. 2) to suggest that Tuesday’s “grandfathered” agreement should be the last of its kind.
Over the past decade Oxbow has played an integral role in a major redevelopment of the old Pearl brewery site, but the criteria for Tuesday’s incentives were crafted before those changes.
“I know things have evolved, in part, largely, to your investment and what’s happened with the Pearl,” Rodriguez said to Omar Gonzalez, director of development for Oxbow. “We probably, moving forward, don’t need to incentivize market rate.”
Commissioners voted 4-0 in favor of the incentives. Commissioner Rebeca Clay-Flores (Pct. 1) was absent from the meeting.
The Isleta at 102 E. Josephine Street is expected to yield 200 residential units and commercial space, with incentives valued at $1.17 million.
The Quincy at 1200 E. Elmira Street is expected to create 75 new multi-family units, with incentives valued at $254,225.
Both are expected to receive a 40% tax abatement from the county over 10 years.
Gonzales said the two projects are among a number of improvements Oxbow is making in the area, such as bridges and new commercial spaces, which are available to the general public — not just residents of their new buildings.
“We’ve got several different projects that we’re working on on the west side of the river to try to unite Tobin Hill with all the exciting stuff that’s happening at the Pearl campus and beyond,” Gonzalez told commissioners. “Two of these fit within the current tax abatement guidelines.”
Still, each of the county leaders sought to proactively address potential criticism about their investment, amid growing concerns about housing affordability issues.
Commissioner Tommy Calvert (Pct. 4) said he worried that, on paper, it looks like the county is making progress toward its housing goals. But in reality, some people are simply being priced out of the apartment market.
“You have the prosperous Cellars [apartment complex] and all of the things that are in the Pearl, and then you’ve got, you know, 50-60% of the city on the verge of being on grandma or mom’s couch,” Calvert said.
Bexar County Judge Peter Sakai said that while the county is forgoing part of its portion of the taxes, other taxing entities, like schools districts and the hospital district, would still collect the full taxes from developments.
The Isleta is expected to be valued $106 million, and the Quincy is expected to value $23 million.
“It’s not just a zero-sum, [where] the county is giving away stuff,” Sakai said. “We’re willing to incentivize the county share, but allow the other taxing entities to take it, take the growth of these projects.”
