The latest owners of Lone Star Brewery are planning a full-scale makeover of the blighted industrial site that encompasses 57 acres in a mostly residential neighborhood south of downtown.

In addition to building new for-sale and rental housing, retail and restaurant spaces, and music venues, Southstar’s president and CEO said it plans to improve streets, create new green space and trails, and restore the iconic brewery structures. 

To do that, the developer is seeking more than $63.7 million in public funding that will go toward $75 million of planned public space and upgraded infrastructure within the Lone Star neighborhood along the San Antonio River.

Southstar’s Thad Rutherford told the board of the Westside Tax Increment Reinvestment Zone recently that the TIRZ expects to spend an estimated $575 million on a full-scale makeover of the neglected 32-acre property.

“We’re trying to create these public spaces and … [where] you can just walk into the district every day, and you could park there and feel like that’s not a spot that someone else from out of town will be,” Rutherford said, adding the district should be for everybody.

The project will generate a projected $340 million in new tax revenue through 2050, including over $97 million for the San Antonio Independent School District, Rutherford said. Southstar projects the development to be assessed at almost $729 million by 2050, up from $24 million in 2026.

Southstar, which developed the Mission Del Lago and Verano neighborhoods on the South Side, has so far been meeting with area neighborhood residents and other community groups for their input on the project. 

It’s also reviewing with the city the planned improvements to Lone Star Boulevard. That work could start in early 2027, Rutherford said during a recent community meeting.

An online survey soliciting input on the project remains open to the public.

The project is situated within both the Westside and Innercity TIRZ boundaries. Southstar plans to request a portion of the $63.7 million in public money from the Innercity TIRZ, Rutherford said, and another $20.7 million through a municipal management district (MMD) for the site, something that Southstar is pursuing through the state.

An MMD is a government entity that allows a commercial property owner to issue bonds to help pay for public improvements such as landscaping, parks and sidewalks.

The council approved an MMD for McCombs Enterprises’ Jones Avenue development, a 5.9-acre retail project underway just south of the Pearl.

The developer’s TIRZ requests must be endorsed by the respective boards before going to council for final approval.

Councilwoman Teri Castillo (D5), who chairs the Westside TIRZ, said she appreciated the opportunity to listen to area residents talk about what they wanted in the project, which has gained steam after 20 years of ownership changes and unmet promises for redevelopment.

“I see this as a citywide project because, as we mentioned, it’s hugged by District 3, District 2, and District 1, and then of course it is the majority within D5,” she said. “It’s just at this really interesting intersection of our districts that folks from all throughout the city will eventually access.”