City staff presented a proposal on Feb. 7 to annex roughly 1,854 acres in southeast San Antonio and create a tax‑increment reinvestment structure (TIRSO/TIF-style financing) to support a mixed‑use development, and the City Council committee voted to refer the proposal for further consideration.

The presentation described the Terrea Cholo site as southeast of the Loop 410 interchange, within Council District 3 and Senate District 21. Staff said the development proposal would include single‑family and multifamily housing, commercial and industrial areas, business parks, and open‑space corridors. Staff reported a total development cost of $1.2 billion and said the developer reimbursement cap tied to the reinvestment structure would be $156 million.

Staff described additional details of the financing: a 25‑year participation period, a 70 percent participation rate for tax increment, a 3 percent annual growth assumption and a 98.5 percent collection rate. The presentation also said the developer would donate 50 acres to the San Antonio housing trust as part of the project and that the proposal aligns with city policies encouraging development in underutilized areas.

Councilmembers asked questions about whether infrastructure would extend beyond the project to serve adjacent neighborhoods, drainage and water infrastructure in South San Antonio, and coordination with local school officials. One councilmember noted that school closures and enrollment trends make family housing patterns a point of concern and said staff should continue coordination with the school district. Another asked for assurances that the city would recover its investment and sought clarification about tax reductions within the reinvestment area; staff replied with the 70 percent participation figure and described that reinvested portion returning to the developer for infrastructure costs.

Staff recommended referral of the annexation and proposed reinvestment increment to the Community Development and Planning Committee and the City Council for annexation and TIRSO creation. The committee proceeded with a voice vote; the chair announced the motion passed on a voice vote with no recorded roll call.

The committee also approved the Jan. 23 minutes earlier in the meeting by voice vote.

Next steps noted during the presentation included continued coordination on infrastructure timing (water, drainage, north–south and east–west arterials), alignment with the city’s TIF/TIRSO policy and additional outreach to the Housing Trust and the school district as the project moves through formal review.