The Planning and Community Development Committee on Feb. 7 voted to refer to City Council a petition to create the Rocio Creek Tax Increment Reinvestment Zone (TIRZ) and to consider a concurrent annexation in Council District 3.

The petition, presented by Ian Benavides, Deputy Director of the Neighborhood Housing Services Department, would designate roughly 1,800 acres southeast of the Loop 410 and Sulphur Springs Road intersection. Benavides said the site lies within the East Central Independent School District and is near major employers including HoltCat, H‑E‑B Distribution Center and Apex Sign Group. He described about 795 acres in the eastern half of the proposed area as currently outside city limits and agriculturally exempt.

“The developer through his application is seeking TERS designation and reimbursement for public infrastructure costs associated with the development in an amount up to $156,000,000,” Benavides told the committee, and he recommended that the committee refer the proposal to council for consideration. He said the recommended TIRZ terms would be 25 years with a 70% city participation rate and that, if the developer receives the maximum reimbursement earlier, the TIRZ would terminate.

Why it matters: The petition would allow the developer to recover certain public infrastructure costs from future tax increments generated inside the zone, shifting the timing of revenue that would otherwise go to general city coffers. Committee members pressed staff about how tax increment participation would interact with city revenue and local services and whether the project would support public school planning.

Project scope and public benefits: Benavides outlined a mixed-use plan phased over 30 years that he said includes more than 1,000 acres of residential development with an estimated more than 5,200 single‑family market‑rate units (average home price described in the presentation as a little over $315,000), roughly 607 acres of multifamily development, about 170 acres of commercial development and approximately 424 acres of business park. He said roughly 330 acres would be preserved as open and green space.

On affordable housing, Benavides said the developer would donate approximately 50 acres to the San Antonio Housing Trust to serve as a site for future affordable housing development. He framed that land donation as aligned with the city’s strategic housing implementation plan and the TIRZ/TIF policy.

Committee discussion: Chair Roja Garcia praised the green‑space element and the housing‑trust set‑aside, saying, “the nearly 50 acres of, the set aside to the San Antonio Housing Trust, are a great component.” Councilwoman Villagran, whose district includes the site, said, “this is just a great opportunity for this part of town,” and supported the project’s potential to bring infrastructure and services to underdeveloped areas.

Several members asked questions about service impacts and revenue. Councilmember MacGastia said he typically holds the view that “growth should pay for growth,” and raised concerns about long‑term maintenance costs for streets, drainage and solid waste that can follow annexation. Benavides replied the proposed reimbursement package would cover utilities and major public infrastructure items listed in the application, including oversized sewer main work, a lift station, water and CPS improvements and new arterial roadways. Councilmember Kirch urged developers to coordinate with public schools and said, “we need to support the public school systems.” Benavides told committee members that early conversations had taken place with East Central ISD about potential land for an elementary school and future middle‑school planning within the project.

Financing and city participation: Benavides said the recommended city participation rate is 70% of incremental property taxes to reimburse eligible infrastructure costs up to $156 million, and the 25‑year TIRZ term assumes a 3% annual growth rate and a 95.8% collections rate. He also told the committee that 30% of collected taxes would remain available to the city and that sales tax revenue from commercial development would be collected in the city once the area is annexed.

Procedure and next steps: The committee approved a motion to refer the petition and the concurrent annexation to the full City Council for consideration at its Feb. 20 meeting. The committee voted by voice; the motion carried and no roll‑call tally was recorded in the public portion of the transcript. Benavides said staff and the developer were available to answer additional questions as City Council reviews the petition.

Ending: If City Council approves the annexation and TIRZ designation, the developer’s infrastructure reimbursement agreement and the donation of roughly 50 acres to the San Antonio Housing Trust will move to the implementation phase, with infrastructure investments and development phased over multiple years.