McCombs Enterprises is advancing plans for a large mixed-use development in San Antonio and is seeking to use future tax revenues to help fund public infrastructure tied to the project.
The company has outlined an estimated $43,600,000 in public infrastructure needs associated with the proposed development. According to the plan described to city staff, McCombs would cover half of those infrastructure costs up front, with the balance potentially reimbursed through a proposed tax increment reinvestment zone (TIRZ) cutout.
Under the concept being discussed, reimbursement would come only from tax revenue generated within the designated TIRZ area. The structure is intended to direct a portion of future tax collections from the project back into eligible public improvements, rather than drawing on the city’s general fund. Specific terms of any incentive arrangement have not yet been finalized and remain subject to further review.
Reporting from the San Antonio Business Journal indicates that McCombs is planning a mixed-use program that combines retail and office space on a site located between Pearl, the San Antonio Museum of Art and the city’s River Walk. While detailed site plans were not disclosed, the location places the project near several established cultural and commercial destinations.
McCombs has previously indicated that the overall development would carry a price tag of approximately $395,000,000. That figure reflects the anticipated total project cost and is separate from the specific budget for public infrastructure improvements. The proposal underscores the scale of the planned investment and the role that tax-based incentives could play in delivering supporting infrastructure.
City staff have communicated that they expect to bring the matter back to the relevant committee in October for further discussion. Any incentive package tied to the TIRZ proposal would need to secure approval from the Midtown TIRZ board before it could advance to the full city council for consideration.
Projections shared with the city suggest that, once completed, the mixed-use development could generate more than $160,000,000 in combined city property and sales tax revenue over time. That projection does not include taxes that would be paid to the San Antonio Independent School District, which are outside the scope of the TIRZ reimbursement calculation.
Discussions around the project and the TIRZ mechanism remain ongoing, and no final approvals have been granted. The next steps will focus on refining the proposed incentive structure, evaluating its fiscal impact, and determining whether the anticipated long-term tax revenues justify using a portion of those proceeds to reimburse qualifying public infrastructure costs.
