Marjorie Fair
April 7th, 2006, 02:03 AM
Andujar steers interest to River North project
San Antonio Business Journal - March 31, 2006
by Sandra Lowe Sanchez
For more than six months, Andres Andujar, managing partner of the architectural firm 3D/International's San Antonio office, has been on the speaking circuit addressing various real estate and urban planning industry organizations -- all in effort to gain support for an idea that he believes would transform a section of San Antonio north of downtown.
Speaking to the local chapter of the American Planning Association recently, he assured the audience that his advocacy for the area he has dubbed "River North" was purely from a perspective of concerned citizen and planner who sees an opportunity to take a largely low-tax-base industrial area and transform it into an highly desirable place to live.
"I have no client, I own no property here, so I'm clean," he told the group of planners, which included the city's director of planning, Emil Moncivais. "I do have an interest and that is I'd like to live in a place like this."
Andujar's proposal calls for creating a tax increment reinvestment zone (TIRZ) in the 26-block area bordered by Interstate Highway 35, Broadway Street, St. Mary's Street and McCullough Avenue. Along a portion of Broadway, the district would encourage development on both sides of the street.
With a tax increment reinvestment zone (TIRZ), certain public improvements are paid for by the difference in the current assessed value of the property and the hikes in property taxes resulting from development that follows. This is known as tax increment financing, or TIF.
Idea flows
For his part, Andujar says the idea for River North came to him last April after hearing about the planned improvements to the section of the San Antonio River north of downtown to Brackenridge Park, a project called Museum Reach. A month earlier he and his family had traveled to Spain and Italy, and he says he was impressed with an area in Barcelona called La Rambla.
The vision for an area that could be created with La Rambla as a model began to develop after he heard about the $58 million that will be spent on planned Museum Reach improvements to the river -- a project which is expected to be completed by 2009. The improvement will correct a 100-year flood plain. In addition, the San Antonio River Foundation is raising $10 million from the private sector for further improvements, including the development of a linear park.
"Where there's public investment, the private sector will follow," he told the group of planning professionals.
Add to that Silver Ventures' redevelopment of the former Pearl Brewery site, and Andujar believes the 56-acre River North represents an opportunity in urban planning. Its current zoning allows for warehousing and light manufacturing, such as assembly. But Andujar began imagining a place with green spaces, barbecue pits, and mid-rise residential buildings.
"You have a linear park in the middle of the district," he explains. "You have a light industrial zoned area that you can heroically downgrade to a mixed-use zoning that allows residential ... and because (of the river improvements), development is going to happen anyway," he explains. "My argument is let's not just let it happen. Let's frame our vision. Let's dream the big dream of a neighborhood where we all would be happy to live in, and it's not by cutting trees north of Stone Oak but by taking something that's already built .... and we're going to re-use an area."
Project develops
For several years running, 3D/I have taken on some community projects. One year it planted a tree, replacing one that had been lost in one of the city's recent floods. Another year, the staff painted a bridge. This year, Andujar and his staff decided developing a proposal for River North would be its community contribution.
Last summer, he and 3D/I architect Milton Babbitt developed sketches for the project. An intern with the firm advanced their work and conducted research on the area, including who the property owners are. What Andujar learned is that the property value assessment for the area totaled $43 million and produced $1.3 million in property taxes -- $408,000 of which was attributable to the city and Bexar County. What resulted is a PowerPoint presentation Andujar has been using to accompany his speeches in an effort to gain support for the idea.
Andujar's financial model for the district calls for a mixed-use neighborhood with some offices on Broadway and retail along that street, as well as side streets that would serve the increased residential population that the area would eventually draw.
Indeed, with its proximity just north of downtown, Andujar expects that the area could sustain a total of 4,167 new residential units -- or 3,749,990 square feet of new residential living space. Besides the residential development, the area would bring 580,000 square feet of retail space and 320,000 square feet of office space. The total assessed value could increase to $982 million in a matter of 20 years. The additional tax revenue generated by the development to support the TIF in the 20th year would be $8.8 million -- not to mention the additional revenue that would result in the interim years.
According to Andujar's proposal, Broadway would be widened and traffic separated by a median. New wider sidewalks would be added. With 26 blocks impacted, street and sidewalk repairs alone could total $55 million. Another $45 million or so would address infrastructure, including burying overhead utility lines and upgrading or creating water and sewer systems. In addition, Andujar suggests that an entryway of sorts identifying the area as River North could be built, possibly extending the district one block south.
TIFs and TIRZs
Every year, the Neighborhood Action Department accepts applications for TIRZs and their accompanying TIF proposals from developers. The department makes recommendations to the City Council, which makes the final decision on whether to accept an application. In the cases where the financing mechanisms are approved, a board of representatives from the taxing entities and the developer is created. This board authorizes payment of funds collected by the TIRZ.
Currently, city officials confirm, there are 19 TIRZs overseen by the city. They include Federal Realty Investment Trust's 13-year Houston Street TIRZ, which has been in existence since 2000.
David Garza, director of the Neighborhood Action Department, says that so far, the Houston Street TIRZ has collected $2.1 million in additional tax revenue due to new development. By comparison, Federal Realty's debt service on its investment in the public portion of the project to date totals $10.3 million. Federal Realty purchased and renovated 10 buildings, bringing in development that includes the Palm Restaurant and the five-star boutique Hotel Valencia.
Ramiro Cavazos, director of economic development for the city of San Antonio, says in his opinion TIRZs have not been as successful in San Antonio as in other cities.
"You need to have the right private-sector investment partner," he says. In some cases, developers failed to invest money for infrastructure development upfront, and values did not increase.
Federal Realty's case, he says, "has worked moderately well," but recent development on Houston Street, as well as interest in further hotel development in the TIRZ, appears to hold out the promise of greater success.
Cavazos, who has heard Andujar's presentation, is cautiously optimistic about the River North proposal. "I think it's a wonderful project with great potential," he says. "What Andres is proposing will need strong investment upfront," as well as cooperation from various parties, including property owners.
Andujar concurs that upfront investment is needed, and he hopes to convince city officials that this TIRZ should be city-driven, rather than developer-driven. With a city-led TIRZ, the city puts in the improvements and pays itself back from the proceeds of the TIF.
"The municipality has the public benefit in mind, versus the developer that has only their project in mind," he explains of the benefit, pointing to the Cotswald District in Houston as an example. The $62 million Cotswald Project involved street improvements in a 90-block area in Houston's northern sector of downtown. The project was undertaken by Houston Downtown Management District under contract for the City of Houston.
How does Andujar plan to win support from the City of San Antonio for the project? "I keep on talking to the decision makers," he says.
Meanwhile, he adds, he has asked a local attorney to draw up a proposal on how a city-led TIF would work.
Downtown support
With or without the TIF, city planning director Moncivais says he appreciates the River North idea and the work that went into developing it.
"It's going to create a real quality of life environment that people can relate to over time," he says.
He suggests that some of the issues which must still be addressed include determining market demand for the project, as well as consideration of zoning changes that can be made. Such projects need a champion, he adds.
Andujar too, believes a champion is needed, and has approached the Downtown Alliance to take on the project. A board member of the Downtown Alliance, Andujar says he would expect to be active in its support, but is looking to take the project outside of 3D/I.
"3D/I is not in the business of creating districts," he says. "We're in the business of design and project management."
Ben Brewer, executive director of the Downtown Alliance, agrees that an organization could better shepherd the proposal along. The organization's board has "conceptually approved" taking on the project, he adds, and has formed a task force to examine the possibility of creating a community development corporation that could assist in the creation of the River North TIF.
"I think the board is amenable to taking this on," he says.
Andujar says such a move by Downtown Alliance would give the project more clout as the proposal hits the political scene.
"Who am I?" he quips. "I'm just a guy with a PowerPoint and I'm showing it around town."
http://sanantonio.bizjournals.com/sanantonio/stories/2006/04/03/focus2.html?page=4
San Antonio Business Journal - March 31, 2006
by Sandra Lowe Sanchez
For more than six months, Andres Andujar, managing partner of the architectural firm 3D/International's San Antonio office, has been on the speaking circuit addressing various real estate and urban planning industry organizations -- all in effort to gain support for an idea that he believes would transform a section of San Antonio north of downtown.
Speaking to the local chapter of the American Planning Association recently, he assured the audience that his advocacy for the area he has dubbed "River North" was purely from a perspective of concerned citizen and planner who sees an opportunity to take a largely low-tax-base industrial area and transform it into an highly desirable place to live.
"I have no client, I own no property here, so I'm clean," he told the group of planners, which included the city's director of planning, Emil Moncivais. "I do have an interest and that is I'd like to live in a place like this."
Andujar's proposal calls for creating a tax increment reinvestment zone (TIRZ) in the 26-block area bordered by Interstate Highway 35, Broadway Street, St. Mary's Street and McCullough Avenue. Along a portion of Broadway, the district would encourage development on both sides of the street.
With a tax increment reinvestment zone (TIRZ), certain public improvements are paid for by the difference in the current assessed value of the property and the hikes in property taxes resulting from development that follows. This is known as tax increment financing, or TIF.
Idea flows
For his part, Andujar says the idea for River North came to him last April after hearing about the planned improvements to the section of the San Antonio River north of downtown to Brackenridge Park, a project called Museum Reach. A month earlier he and his family had traveled to Spain and Italy, and he says he was impressed with an area in Barcelona called La Rambla.
The vision for an area that could be created with La Rambla as a model began to develop after he heard about the $58 million that will be spent on planned Museum Reach improvements to the river -- a project which is expected to be completed by 2009. The improvement will correct a 100-year flood plain. In addition, the San Antonio River Foundation is raising $10 million from the private sector for further improvements, including the development of a linear park.
"Where there's public investment, the private sector will follow," he told the group of planning professionals.
Add to that Silver Ventures' redevelopment of the former Pearl Brewery site, and Andujar believes the 56-acre River North represents an opportunity in urban planning. Its current zoning allows for warehousing and light manufacturing, such as assembly. But Andujar began imagining a place with green spaces, barbecue pits, and mid-rise residential buildings.
"You have a linear park in the middle of the district," he explains. "You have a light industrial zoned area that you can heroically downgrade to a mixed-use zoning that allows residential ... and because (of the river improvements), development is going to happen anyway," he explains. "My argument is let's not just let it happen. Let's frame our vision. Let's dream the big dream of a neighborhood where we all would be happy to live in, and it's not by cutting trees north of Stone Oak but by taking something that's already built .... and we're going to re-use an area."
Project develops
For several years running, 3D/I have taken on some community projects. One year it planted a tree, replacing one that had been lost in one of the city's recent floods. Another year, the staff painted a bridge. This year, Andujar and his staff decided developing a proposal for River North would be its community contribution.
Last summer, he and 3D/I architect Milton Babbitt developed sketches for the project. An intern with the firm advanced their work and conducted research on the area, including who the property owners are. What Andujar learned is that the property value assessment for the area totaled $43 million and produced $1.3 million in property taxes -- $408,000 of which was attributable to the city and Bexar County. What resulted is a PowerPoint presentation Andujar has been using to accompany his speeches in an effort to gain support for the idea.
Andujar's financial model for the district calls for a mixed-use neighborhood with some offices on Broadway and retail along that street, as well as side streets that would serve the increased residential population that the area would eventually draw.
Indeed, with its proximity just north of downtown, Andujar expects that the area could sustain a total of 4,167 new residential units -- or 3,749,990 square feet of new residential living space. Besides the residential development, the area would bring 580,000 square feet of retail space and 320,000 square feet of office space. The total assessed value could increase to $982 million in a matter of 20 years. The additional tax revenue generated by the development to support the TIF in the 20th year would be $8.8 million -- not to mention the additional revenue that would result in the interim years.
According to Andujar's proposal, Broadway would be widened and traffic separated by a median. New wider sidewalks would be added. With 26 blocks impacted, street and sidewalk repairs alone could total $55 million. Another $45 million or so would address infrastructure, including burying overhead utility lines and upgrading or creating water and sewer systems. In addition, Andujar suggests that an entryway of sorts identifying the area as River North could be built, possibly extending the district one block south.
TIFs and TIRZs
Every year, the Neighborhood Action Department accepts applications for TIRZs and their accompanying TIF proposals from developers. The department makes recommendations to the City Council, which makes the final decision on whether to accept an application. In the cases where the financing mechanisms are approved, a board of representatives from the taxing entities and the developer is created. This board authorizes payment of funds collected by the TIRZ.
Currently, city officials confirm, there are 19 TIRZs overseen by the city. They include Federal Realty Investment Trust's 13-year Houston Street TIRZ, which has been in existence since 2000.
David Garza, director of the Neighborhood Action Department, says that so far, the Houston Street TIRZ has collected $2.1 million in additional tax revenue due to new development. By comparison, Federal Realty's debt service on its investment in the public portion of the project to date totals $10.3 million. Federal Realty purchased and renovated 10 buildings, bringing in development that includes the Palm Restaurant and the five-star boutique Hotel Valencia.
Ramiro Cavazos, director of economic development for the city of San Antonio, says in his opinion TIRZs have not been as successful in San Antonio as in other cities.
"You need to have the right private-sector investment partner," he says. In some cases, developers failed to invest money for infrastructure development upfront, and values did not increase.
Federal Realty's case, he says, "has worked moderately well," but recent development on Houston Street, as well as interest in further hotel development in the TIRZ, appears to hold out the promise of greater success.
Cavazos, who has heard Andujar's presentation, is cautiously optimistic about the River North proposal. "I think it's a wonderful project with great potential," he says. "What Andres is proposing will need strong investment upfront," as well as cooperation from various parties, including property owners.
Andujar concurs that upfront investment is needed, and he hopes to convince city officials that this TIRZ should be city-driven, rather than developer-driven. With a city-led TIRZ, the city puts in the improvements and pays itself back from the proceeds of the TIF.
"The municipality has the public benefit in mind, versus the developer that has only their project in mind," he explains of the benefit, pointing to the Cotswald District in Houston as an example. The $62 million Cotswald Project involved street improvements in a 90-block area in Houston's northern sector of downtown. The project was undertaken by Houston Downtown Management District under contract for the City of Houston.
How does Andujar plan to win support from the City of San Antonio for the project? "I keep on talking to the decision makers," he says.
Meanwhile, he adds, he has asked a local attorney to draw up a proposal on how a city-led TIF would work.
Downtown support
With or without the TIF, city planning director Moncivais says he appreciates the River North idea and the work that went into developing it.
"It's going to create a real quality of life environment that people can relate to over time," he says.
He suggests that some of the issues which must still be addressed include determining market demand for the project, as well as consideration of zoning changes that can be made. Such projects need a champion, he adds.
Andujar too, believes a champion is needed, and has approached the Downtown Alliance to take on the project. A board member of the Downtown Alliance, Andujar says he would expect to be active in its support, but is looking to take the project outside of 3D/I.
"3D/I is not in the business of creating districts," he says. "We're in the business of design and project management."
Ben Brewer, executive director of the Downtown Alliance, agrees that an organization could better shepherd the proposal along. The organization's board has "conceptually approved" taking on the project, he adds, and has formed a task force to examine the possibility of creating a community development corporation that could assist in the creation of the River North TIF.
"I think the board is amenable to taking this on," he says.
Andujar says such a move by Downtown Alliance would give the project more clout as the proposal hits the political scene.
"Who am I?" he quips. "I'm just a guy with a PowerPoint and I'm showing it around town."
http://sanantonio.bizjournals.com/sanantonio/stories/2006/04/03/focus2.html?page=4