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Board Update

Patti Salzmann | Deputy Superintendent

Board Meeting | December 16, 2024

Request to Purchase SAISD’s Camaron Street Property for the Development of a New Professional Baseball Stadium

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Board Action

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To request Board to approve a non-binding Memorandum of Understanding (MOU) and authorize the Superintendent to direct the District’s attorneys to negotiating with relevant parties on final contracts subject to the Board’s review and approval.

A non-binding MOU is intended to constitute an expression and mutual understanding of the parties’ willingness to work collaboratively in support of the terms and conditions of the proposed transaction. If all parties come to an agreement during negotiations, the next step would be to collaborate on applicable contracts and agreements that would be approved by the respective governing bodies and boards.

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Our Terms

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5 Elements

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  1. Appoint the Superintendent to a seat on the Houston Street Tax Increment Reinvestment Zone (TIRZ) Board

  • Fund new construction of a building for the Advanced Learning Academy (ALA)

  • Provide necessary parking with safe passage to the Fox Tech campus

  • Provide $400,000 per year to compensate for loss of interest that could have been earned by SAISD if SAISD was to have sold the property through a sealed bid process

  • Guarantee affordable housing in SAISD attendance zones

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Reminder

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The following terms reflect the current status of negotiations. All terms remain open for further negotiations, particularly due to additional information not available during the negotiation sessions.

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Element 1

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  • Appointment of the Superintendent to a seat on the Houston Street Tax Increment Reinvestment Zone (TIRZ)

Proposal

Comments

Background

  • SAISD superintendent or his/her designee will serve as the District’s representative on the TIRZ Board.

  • TIRZ planning directly impacts SAISD.
  • A partnership with the City on TIRZ can also assist with SAISD’s long range master plan to mitigate or avoid further declines in enrollment.
  • SAISD supports the TIRZ Board in economic development activities associated with revitalization of San Antonio’s Central Business District and SAISD.
  • SAISD is one of the largest employers in the City.
  • SAISD families can be positively impacted by revitalization efforts if affordable housing is available.

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Revised Element 1

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  • Board to appoint a designee to serve as the District’s representative on the San Antonio Housing Trust (SAHT) Board

Proposal

Comments

Background on SAHT

  • SAISD Board will appoint a designee who will serve as the District’s representative on The Housing Trust.

  • City Manager agreed and will pursue required agreements/approvals.
  • The purpose of the San Antonio Housing Trust is to create and preserve housing that is affordable, accessible, attainable, and sustainable to San Antonio residents; and to support community development efforts that build and sustain neighborhoods, empower residents, and provide positive equitable outcomes.
  • TIRZ has invested less than $1 million in family affordable housing.
  • $85,224,000 in tax-exempt bonds have been issued
  • 8,265 SAHT rental units placed in service <30% to 60% AMI
  • 3,739 SAHT rental units under construction
  • 10 acres of land acquired
  • Over $3.9 million in grants and loans to create and preserve affordable housing
  • Currently accepting competitive proposals from qualified developers for multifamily development projects

On Track

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Element 1

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DISCUSSION

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QUESTIONS

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Element 2

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  • Fund new construction of a building for the Advanced Learning Academy (ALA)

Proposal

Comments

Background

  • SAISD to construct a new Pre-K-5 ALA (at a site to be determined) using TIRZ funds.
  • Projected cost of $45 million.

  • Missions expressed general interest in supporting SAISD's academic programming.
  • This solution solves a current challenge of an oversubscribed school and avoids use of eminent domain power to acquire needed land.

  • Proposed baseball stadium interferes with plans for an ALA expansion at Kingsbury St. and Flores St. that has been in planning since 2021.
  • ALA at Euclid cannot currently accommodate grades 4 and 5.

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Revised Element 2

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  • Provide land for the construction of a new building for the Advanced Learning Academy (ALA) and a new parking garage.

Proposal

Comments

Background

  • The team to donate land to SAISD for the construction of a new Pre-K-5 ALA and garage on or near the Fox Tech property.
  • SAISD to construct a new Pre-K-5 ALA on or near the Fox Tech campus.
  • Projected cost of $45 million, offset by currently assigned Bond funds of approximately $26 million.
  • Weston Urban will serve as thought partners with SAISD for the repurposing of the ALA Euclid building as we work to generate a revenue stream for the District.

  • The new garage will be constructed on or near the Fox Tech campus.
  • The City will assist with zoning modifications for the Euclid should this be needed.
  • The City, County, Team and Weston Urban will serve as thought partners with SAISD to connect the District with developers who have an interest in developing closed buildings.
  • The plan for facility repurposing at ALA-Euclid will be revenue generating to offset the construction costs of the new Pre-K-5 building.
  • It was represented to SAISD that reimbursement by the TIRZ for SAISD’s construction of a new ALA building was not legally permitted in a reasonable amount of time.
  • Team and District will work collaboratively to explore sites for construction of a new Pre-K-5 ALA and garage on or near the Fox Tech property
  • Adjustments will be made to ensure the school is educationally adequate and provides sufficient play space.
  • SAISD will have access to the Ballpark for certain SAISD uses, including without limitation, high school baseball playoff games and graduations, along with recognition of Fox Tech’s baseball history memorialized within the Ballpark, internships for SAISD students (operations, technology, business), fundraising opportunities, and access to the Ballpark for other agreed upon educational

purposes.

On Track

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Element 2

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DISCUSSION

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QUESTIONS

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Element 3

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  • Provide necessary parking with safe passage to the Fox Tech campus

Proposal

Comments

Background

  • County builds a new parking garage (minimum of 250 spaces) on land at Kingsbury and Flores streets which will be conveyed to SAISD by Weston Urban then ground leased to the County.
  • County builds a new pedestrian walkway/sky bridge for Fox Tech and Quincy overflow.
  • Parking must be proximate to the Fox Tech campus and part of a connected walking route of not more than 0.25 miles.
  • Amend Quincy garage ground lease to confer responsibilities for security, maintenance, and operations to SAISD and provide overnight and weekend use of garage by SAISD.
  • Provide temporary parking during construction of the new garage.
  • Parking is necessary because Quincy cannot accommodate all Fox Tech vehicles.
  • A solution is still needed for our current challenges with the Quincy garage as security and maintenance concerns have not consistently been addressed.
  • Safe passage includes appropriate design, lighting, signage, and security cameras.
  • At the conclusion of the ground leases for the Quincy and new S. Flores garages (30 years, respectively), SAISD will own both.

  • S. Flores is already extremely congested and challenging for parents during drop off and pick up times.
  • Parents expressed significant concerns about parking during construction and after major events hosted at the baseball stadium.

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Revised Element 3

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  • Parking will be located on the Fox Tech campus to avoid students, staff, and families having to cross S. Flores; 24/7 access to the Quincy garage will be provided, and SAISD will assume maintenance and operational responsibilities of both garages.

Proposal

Comments

Background

  • County builds a new parking garage (minimum of 250 spaces) on or near the Fox Tech campus.
  • Confer responsibilities for security, maintenance, and operations of the garages to SAISD
  • Provide 24/7 use of the Quincy and additional garage by SAISD with a provision of guaranteed spaces for public parking.
  • No parking fees will be charged for use of the Quincy or new parking garages for the duration of the leases.
  • Provide temporary parking during construction of the new garage.
  • The County retains event gate fees.
  • Temporary parking is necessary because Quincy cannot accommodate all Fox Tech vehicles.
  • At the conclusion of the ground leases for the Quincy and new S. Flores garages (approximately 30 years), SAISD will own both.
  • New parking garage on or near Fox Tech site must be at least 250 spaces to include PK-5 school parking and to replace planned ground level parking.
  • Parents expressed significant concerns about parking during construction and after major events hosted at the baseball stadium.
  • Part of the new garage or school will be on our property where parking is currently planned under Bond 2020 project.

On Track

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Element 3

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DISCUSSION

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QUESTIONS

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Element 4

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  • Provide $400,000 per year to compensate for loss of interest that could have been earned by SAISD if SAISD was to have sold the property through a sealed bid process

Proposal

Comments

Background

  • Payments continue until the new garage is owned by SAISD.
  • Due to maintenance, operating, and security obligations undertaken by SAISD, parking fees at Quincy garage must be reduced from $60/space to $40/space.

  • Interest on the sale proceeds of the Camaron St. property, if invested, would bring additional revenue to SAISD.
  • The District is looking to the Missions and the Developer to make up for the loss of interest payments.

  • SAISD can offer the property for sale through sealed bids.

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Revised Element 4

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  • Waive parking fees (currently $432,000 per year) for SAISD’s use of Quincy St. garage and incur no fees for use of the new garage to compensate for lost earnings if SAISD was to have sold the property through a sealed bid process

Proposal

Comments

Background

  • SAISD will no longer pay the $432,000 parking fees for the Quincy garage.
  • SAISD will not need to pay for use of new garage.
  • SAISD will be assigned security, maintenance and operations of both garages.
  • At the conclusion of the ground leases for the Quincy and new S. Flores garages (30 years, respectively), SAISD will own both.

  • SAISD will incur costs for undertaking security, maintenance, and operations of garages.
  • Major capital improvements will be the responsibility of the county
  • The County retains event gate fees.

  • SAISD will provide updated available parking spaces to the County.
  • Some white fleet will be moved back to Quincy.

On Track

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Element 4

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DISCUSSION

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QUESTIONS

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Element 5

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  • Guarantee affordable housing in SAISD attendance zones

Proposal

Comments

Background

  • Affordable housing will be developed in SAISD attendance zones, to include the following:
  • Minimum of 1250 units
  • More than 500 2-3 bedroom units, and
  • Aligns to the Federal guidelines for affordable housing with some housing at the 60%, 50%, and 30% AMI
  • City and County expressed the need for affordable housing in the downtown area.
  • Sale of SAISD land is contingent on maintaining existing affordable housing units or securing guarantees for one-for-one replacement.
  • Reducing affordable and appropriate housing for families in the urban core contributes to the reduction in the number of school aged children and works against SAISD’s interests.
  • Family housing is essential for the District.
  • Current SAISD families and staff members reside at the Soap Factory.
  • Some SAISD staff are experiencing homelessness.

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Revised Element 5

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  • The City and County will adopt 5-year measurable housing goals including a focus on family affordable housing in the urban core.

Proposal

Comments

Background

  • The City, County, SAISD, and potentially other schools district representatives will work collaboratively to develop the measurable housing goals.
  • Affordable housing will be developed in the urban core, including SAISD attendance zones that would support the following:
  • Minimum of 1250 units
  • More than 500 2-3 bedroom units
  • Aligns to the Federal guidelines for affordable housing with some housing at the 60%, 50%, 30%, and

< 30% AMI.

  • City and County expressed the need for affordable housing in the downtown area.
  • Reducing affordable and appropriate housing for families in the urban core contributes to the reduction in the number of school aged children and works against SAISD’s interests.
  • SAISD’s participation as a board member on the San Antonio Housing Trust will be most impactful to protect SAISD’s interests.
  • Family housing is essential for the District.
  • Current SAISD families and staff members reside at the Soap Factory.
  • Some SAISD staff are experiencing homelessness.
  • Councilmembers recently voted to adjust scoring criteria to prioritize projects with 2-3 bedrooms for families and to prioritize projects within the original 36 square miles of the City, which is within SAISD.

On Track

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Element 5

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DISCUSSION

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QUESTIONS

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Next Steps

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Next Step

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To request Board to approve a non-binding Memorandum of Understanding and authorize the Superintendent to direct the District’s attorneys to negotiating with relevant parties on final contracts subject to the Board’s review and approval.

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San Antonio ISD