The Brooks Development Authority is taking action to prevent U.S. Immigration and Customs Enforcement from opening offices at the former Air Force base on San Antonio’s Southeast Side, alleging that the sub-leasing arrangement made with the federal government violates an existing lease agreement with the property’s developer.
The move comes about a month after federal documents revealed two 15-year leases worth $51 million for 75,000 square feet of office space at WatersEdge II, a building at Brooks. The offices are expected to house federal immigration-related legal operations.
Brooks officials confirmed Tuesday that the authority’s board authorized legal counsel to issue a formal notice of default to BOZ III-WatersEdge, an entity associated with Dallas-based Preston Hollow Community Capital, which controls the office building.
The notice, which Brooks said has already been sent, is a formal warning that the board believes Preston Hollow has violated the terms of its lease. Under the agreement, the company has 60 days to address the alleged violation before Brooks could potentially pursue further action.
“Brooks did not negotiate or approve this sublease, and we oppose the proposed use of the property,” a spokesperson for Brooks Development Authority said in a statement. “We are taking action to protect the long-term interests of the Brooks community.”
Brooks contends that using the building for federal immigration hearings and related operations is not permitted under its existing agreement with Preston Hollow, though the authority has not specified which provisions of the lease would be violated.
Preston Hollow disputes the allegations.
“We don’t agree with the letter’s contentions, but this action by BDA gives rise to several options and we are considering them,” a company spokesperson said Tuesday.
The notice does not immediately stop the federal leases, and it remains unclear what action Brooks might take if the dispute is not resolved within the 60-day period.
Emails obtained by the San Antonio Report show that Brooks leadership expressed concerns about the leases shortly after they were announced in October.
On Oct. 8, Mayor Gina Ortiz Jones contacted Brooks President and CEO Leo Gomez seeking confirmation of the agreements and additional details about the federal government’s plans for the property.
Gomez initially told the mayor that Brooks officials were contacting Preston Hollow and its brokerage firm, Transwestern, to learn more about the leases.
Later that afternoon, Gomez confirmed that the agreements covered three of WatersEdge II’s four floors and would accommodate the Office of the Principal Legal Advisor and the Executive Office for Immigration Review, two federal agencies responsible for immigration legal proceedings and hearings.
“While I frown upon the uses at Brooks, it’s important to clarify that Brooks has not been involved in negotiating or facilitating these leases,” Gomez wrote.
Preston Hollow, which controls the WatersEdge office buildings, was solely responsible for negotiating the agreements with the federal government, Gomez said.
On Oct. 15, following news of the leases, City Council approved a resolution directing city officials to explore ways to prevent or delay the Brooks leases, expanding the city’s opposition to ICE presence in the city as they push back against a planned immigration detention and processing facility on the East Side.
Brooks officials said they are now awaiting a response from Preston Hollow or the expiration of the 60-day period before determining their next steps. ICE already operates two field offices in the San Antonio area.
