San Antonio City Council approved today the public-private partnership agreement between Hemisfair Park Area Redevelopment Corporation (HPARC) and local developer Zachry Hospitality. to build a $200 million development at the corner of Alamo and Market Streets, where the original 1968 portion of the Convention Center once stood, News Radio 1200 WOAI reports.
The project will include offices, retail and restaurants, residential, and a 200 bed Hilton Curio Collection hotel.
“Great cities have great urban parks that fill downtown with life,” said Mayor Ivy Taylor. “Today, City Council approved an agreement based on the feedback of thousands of citizens from every district, outside experts and local leaders. These new developments will bring vibrancy and energy to parks in the heart of our city.”
The project is being developed by a subsidiary of San Antonio's Zachry Corporation.
The approval was not without controversy. Several speakers claimed that the development, which grands Zachry Hospitality a 97 year lease on prime downtown real estate, amounts to 'payback' for campaign contributions Zachry has passed out to Council members, something Mayor Ivy Taylor strongly denied.
"I explicitly, flatly, patently, and emphatically, all of the charges of pay to play," she said.
It is currently called Source Plaza, because it will stand near the spot where the city was founded 300 years ago next year.
Even though the project is being managed by HPARC, the independent board which manages Hemisfair, officials stress this is not the portion of Hemisfair which is the 'civic park' to be developed with some $20 milion in the bond issue on the ballot this May.
In fact, Omar Gonzalez of HPARC says the lease payments from the property to be developed on Source Plaza will go to fund operations at the Civic Park.
The development, Gonzalez says, will include a 200 room 'Curio Collection by Hilton' boutique hotel, nealry 400 apartment and condominium residential units, and a 60,000 to 110,00 square foot office park.
"Demand for Class A office space in San Antonio has really been unmet by supply," Gonzalez said. "This is really an oportunity for us to continue to bring in downtown workers."
He says another key feature of the development will be a massive underground parking garage, which is critically needed in that part of downtown.
"It can serve as parking for the Alamo, the Convention Center, Hemisfair, LaVillita, and the Riverwalk," he said. "There are a number of partners in the area which are in great need of parking, and we think this is a good solution."
The plan now is for the major construction to begin after next years' Final Four and Tricentennial Celebrations, and will be completed by 2021.
Gonzalez points out that the development will be in line with long range goals for downtown, and will work along with the planned upgrade of the Alamo and Alamo Plaza, as well as the recently completed Convention Center, and other improvements being made to downtown, like the Tobin Center.
The project involves a 50 year lease with the Zachry subsidiary, to be renewable for an additional 47 years.
That has prompted some activist groups to demand that the members of City Council who will vote on the project today refuse to accept campaign contributions for the coming election cycle from Zachry, which is a major donor to local political campaigns.
WOAI PHOTO