City Council Advanced Midtown Development Subzone

The council moved to place a new management district on the ballot for a planned retail and office project.

Updated on Oct. 1, 2026 in Remote Work

Bold flat-color editorial illustration showing stylized architectural models on a plinth, representing urban development policy. — The San Antonio City Council voted Tuesday to place a new tax subzone for a six-acre Midtown redevelopment project on the ballot. AI Illustration. Upload story photo >

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On August 6, 2025, the San Antonio City Council voted to advance a municipal management district to the ballot for a six-acre redevelopment site. The project, located near the Pearl and the San Antonio Museum of Art, aims to utilize a tax subzone to fund public improvements.

Why it matters

This subzone mechanism allows developers to offset infrastructure costs while insulating the city from direct credit risk. It represents a significant financial tool for large-scale urban redevelopment in San Antonio.

McCombs Enterprises purchased the six-acre site near Camden Street and West Jones Avenue for $29.5 million. The developer estimates the project will eventually contribute $160 million in various tax revenues to the city.

The players

McCombs Enterprises

This is a private investment firm that acquired the six-acre development site from CPS Energy.

CPS Energy

This is the municipally owned utility provider that sold the land now slated for retail and office redevelopment.

City Council

This is the legislative body of San Antonio that voted to move the municipal management district to the ballot.

The details

Developers have requested a subzone within the existing Midtown Tax Increment Reinvestment Zone to capture and receive incremental tax revenue for the project. This structure separates the project finances from the broader TIRZ, which is currently scheduled to expire in 2060.

McCombs Enterprises purchased the project land in early 2023.
State legislation enabling the district passed in May 2023.
City Council approved the ballot measure on August 6, 2025.
The Midtown TIRZ is slated to expire in 2060.

Market Landscape

The proposed subzone marks an extension of the established financial framework under the Midtown Tax Increment Reinvestment Zone. This strategy aligns with local efforts to centralize tax-funded improvements near growing commercial corridors like the Pearl.

Residents may see changes in the River North area as the proposed retail and office project moves toward realization. The development is intended to generate significant tax revenue for municipal assets, including the San Antonio Zoo and the botanical gardens.

The takeaway

The move demonstrates how cities utilize specialized tax zones to facilitate large-scale urban improvements without assuming direct debt risk. Property developments of this scale often rely on long-term tax increment financing to remain financially viable.