Council looks at loan for entertainment venue
Posted on July 3, 2009 at 2:23 am • Print This Page • Share
Economic Development San Marcos (EDSM) Executive Director Amy Madison said she couldn’t reveal the board’s recommendation to city council regarding a proposed $5 million city loan to set up an entertainment district at Springtown Center. Photo by Andy Sevilla.
By ANDY SEVILLA
Associate Editor
The San Marcos City Council will discuss a redevelopment deal for the Springtown Center next Tuesday night, though city staff is keeping quiet on its recommendation.
In an emergency meeting of Economic Development San Marcos (EDSM) Tuesday, board members discussed at length in executive session the developer’s requests from the city in efforts to move forward with a proposed entertainment venue project for the Springtown Center.
The developers are asking for up to $5 million dollars in interest free loans, to be repaid through two decades. The first installment of $3.2 million is asked to be advanced concurrently with the developer’s purchase of the Target site, on which the city will obtain a first lien position. The developer also is requesting up to an additional $1.8 million to fund construction and installation of furniture, fixtures and equipment for a proposed Alamo Draft House, should the lease be executed. The city would also obtain a first lien on the theatre’s furniture, fixtures and equipment.
The developers proposed that the $5 million dollar loan would be interest free for a 20-year term, with monthly payments beginning three years after the initial loan funds are disbursed.
The EDSM didn’t publicly state its recommendation, leaving San Marcos residents in the dark about the board’s position, even though taxpayers may have to foot the bill, depending on what council decides.
“It came out of executive session,” said Amy Madison, executive director of EDSM, when asked about the board’s proposal to the city council. “It’s not a public matter at this time. It was a consensus that staff take a recommendation to council, but I cannot discuss what it is at this time.”
The developer is asking the city for a loan in efforts to purchase the Target site. Target has an Operating Easement Agreement (OEA) on the site prohibiting theatres, bowling alleys, night clubs and various other retail uses from developing on or near the property. The city has provided $6 million dollars in incentives for Target, J.C. Penny and Bealls to relocate to the newly built Stone Creek Center. For those tax abatements, the city was unable remove the development restrictions Target has in place at the Springtown Center.
“Here we are incentivizing Target to their new place, but they’re leaving us tied-up at Springtown,” said Councilmember John Thomaides, who also is an EDSM boardmember. “This is a very serious game. We’re talking about the taxpayers’ dollars.”
Thomaides said there was never a discussion of Target having an OEA and its restrictions on development at the Springtown Center when incentives for Stone Creek Crossing were discussed in council. Ultimately, he said, “the responsibility lies on the shoulders of the council.” Thomaides said he has advocated hiring an independent firm to fully evaluate these sorts of dealings, adding that in doing so these “mistakes” will not go overlooked.
“If we’re going to spend millions of dollars in incentives, why not spend $10,000 on a firm and have people that are experts look at the deal?” Thomaides asked.
Added Thomaides, “This is the failure of that Stone Creek deal. To not know that this OEA was in place (at the Springtown Center), and essentially being blackmailed.”
City Manager Rick Menchaca said he could not forecast the city loss in interest dollars on the requested loan.
“We didn’t run those numbers because we were waiting to see the recommendation the (EDSM) board was going to make to council,” Menchaca said two days after the EDSM board came up with its recommendation.
The city council will take up the matter at its July 7 meeting. Menchaca said it is on the council agenda as a discussion, consideration, and possible approval of incentives for redevelopment of the Springtown Center, although it was initially on the council agenda as a consent item.
Menchaca said the redevelopment proposal is not being rushed through council and is following normal procedure. He said that when the EDSM board reviews and considers a development proposal, it appears on the agenda at the following city council meeting.
“We’ve been discussing this for seven or eight months now, since it was initially presented to the city,” Menchaca said.
About 180,000 square feet of Springtown Center’s 210,000 square feet are vacant. The developer has suggested a movie theatre, bowling alley/entertainment center, family entertainment venues, sports bar/nightclub, and restaurants as possible uses for the Springtown Center. The developers aim to establish the existing center into an entertainment-focused venue with a variety of mixed use tenants. In a presentation, the developer articulated the need for a venue supporting the adjacency to the Texas State playing fields and game day crowds.
Menchaca said the proposal does not discourage entertainment development throughout the city.
“The downtown master plan does not preclude other areas (in San Marcos) from being entertainment venues,” Menchaca said.
In the EDSM presentation, the developer said there are several benefits to the project:
- It creates a development that brings a new mix of retailer/users to an older, declining shopping center;
- It increases tax revenue for San Marcos and San Marcos CISD;
- It creates an entertainment destination that appeals to the local community, Texas State’s student body, and visitors; and
- It benefits neighboring businesses that have seen a decline in business since Target and other tenants have vacated.
The developers said they will provide an outdoor pavilion or gathering area at the Springtown Center within three years after the effective date of the loan. The area would be privately owned, but made available for periodic public use. The developer has also agreed to hire local businesses in assisting with the renovation and redevelopment, as well as to continue leasing to current tenants during and after the renovations. It has also been agreed that 50,000 square feet of the center will have entered into initial leases for entertainment uses within five years after the effective date of the loan.
Caminos camp preps students for high school
Posted on July 2, 2009 at 3:46 pm • Print This Page • Share
Caminos students in the Texas State Agriculture Building.
STAFF REPORT
San Marcos CISD (SMCISD) middle school students recently attended the Caminos camp at Texas State. While at the camp, they received high school credit, lived in dorms and went on weekend field trips.
Caminos, which is derived form the spanish word camino, meaning journey, path or way, was started in 2003 by Dr. Jamie Chahin, Dean of Applied Arts at Texas State. The program assess students’ academic potential, despite whatever limitations they might have.
“Two of the biggest barriers were the students’ mentality and their families,” said Onesimo Banda, Assistant Coordinator for Caminos. “I want them to know that average people, not just the brainiacs or the people with money, can attend college.”
Students attended classes at San Marcos High School (SMHS) for the first three weeks of the program. While there, they learned the English, technology and math they would use as high school freshmen. They were also separated from their normal cliques and forced to interact with different students.
The students also met at SMHS on Saturdays for weekly field trips to Texas State’s Aquarena Center and the Bob Bullock Texas State History Museum. They also engaged in a group service project at the Aquarena Springs Aquarium.
For the next three weeks, the students stayed in the Jackson Hall dorm at Texas State while attending classes in the Hines Academic Building, Alkek Library and the Agricultural Building. Each day began with a leadership class, where students worked on team building exercises that boosted self confidence.
“The leadership classes help students open up and find their voices,” first-year Texas State tutor Gabriella Lombardo said. “It is cool to see the quiet kids, who are hesitant, come out of their shells and actually volunteer in class.”
Caminos students heading to class.
Fireworks violators face hefty fines
Posted on July 2, 2009 at 3:44 pm • Print This Page • Share
STAFF REPORT
San Marcos residents who use fireworks during the Independence Day holiday could face fines as high as $2,000.
“Local ordinance prohibits the possession or use of fireworks in San Marcos and within a mile of the city limits,” San Marcos Mayor Susan Narvaiz said. “In addition, we are well into the second year of a severe drought. The extremely dry conditions pose a severe fire danger that should make everyone take precautions.”
San Marcos city regulations prohibit the sale, possession, storage or discharge of fireworks within and up to a mile of the city limits. The Fire Marshall and San Marcos Fire Department (SMFD) will have extra patrols on duty during the weekend to answer fireworks complaints. They will also post traffic signs advising residents and visitors of the ban.
Fireworks vendors in unincorporated areas of Hays County have agreed to not sell fireworks with sticks and fins.
To report illegal fireworks in San Marcos, call (512) 753-2108.
Residents are instead encouraged to enjoy the free public fireworks display at San Marcos Plaza Park on July 4. The fireworks will be part of the city’s annual Summerfest celebration. The show will be staged from the parking lot behind Texas State’s baseball/softball complex, beginning at 9:30 p.m.
According to city officials, the show can be best seen from a variety of locations, including the San Marcos Activity Center, the San Marcos Public Library, San Marcos City Hall and the Strahan Colosseum parking lot.
San Marcos installs emergency generators
Posted on July 2, 2009 at 3:42 pm • Print This Page • Share
STAFF REPORT
The San Marcos Public Services/Water and Wastewater Utility recently finished installing seven diesel-powered 250-700 watt generators that will backup electrically powered pump stations. The generators reduce the likelihood of water outages or sewer spills.
The generators, made by Holt/Cat, are set up at critical stations around San Marcos. The largest generator is at the Spring Lake Pump Station, a water well dating back to 1914 that supplements the city’s surface water supply. The entire project cost $1.167 million.
“It is important that residents don’t have to worry about flooding around their homes and also about the possibility of running out of clean water,” said Utilities Maintenance Supervisor Bert Hendrix.
The generators are wired into existing power systems and will turn on automatically during a power outage. Once the power comes back on, the generators will shut off after five minutes. Additionally, the generators will run once a week to ensure their readiness.
“San Marcos is believed to have eclipsed area cities in achieving this high level of protection of critical infrastructure,” Director of Public Services Tom Taggart said.
City opens Post Road with ribbon cutting
Posted on July 1, 2009 at 7:50 pm • Print This Page • Share
City officials cut the ceremonial ribbon on Post Road. Photo by Don Anders.
STAFF REPORT
Post Road was officially opened by the City of San Marcos with a ribbon cutting in front of Travis Elementary School on July 1. Mayor Susan Narvaiz, members of the city council and other officials cut the ribbon on the $9.5 million project, which is expected to improve mobility, safety, utility service and drainage.
In September 2006, work was started on Post Road to enlarge it to three lanes from Bert Brown Street to the San Marcos city limits. A continuous left turn lane was also added along Lime Kiln Road from Post Road to the city limits.
Construction also replaced water and wastewater lines, extended the Sink Creek wastewater interceptor to Lime Kiln Road, constructed water quality detention facilities and added storm drainage.
“This project means a great deal to our community, the residents, the students, teachers and parents of Travis Elementary School and people living outside the city along Lime Kiln Road,” Narvaiz said. “We have increased road and utility capacity, reduced congestion, improved drainage, and most important - improved safety along this busy thoroughfare.”
Bicycle lanes and sidewalks are other new additions to Post Road, going to and from apartment complexes to Texas State. The improvements were funded through certificates of obligation, revenue bonds and operating funds from the city’s Capital Improvements Program.
Baker-Aicklen & Associates designed the project, which was constructed by Texas Sterling of San Antonio. The city’s assistant director of public services/transportation, Sabas Avila, served as project manager.
The Sink Creek interceptor project was bid as part of the Post Road improvement project. Future phases will enable San Marcos to reroute flow from undersized mains and abandon two lift stations in the North LBJ area.
One of the water quality and drainage stations installed along Sink Creek. Photo by Melissa Millecam.