City Council members tabled a discussion about the redevelopment of the Springtown Center and the proposed incentive offered to Alamo Draft House at their Feb. 16 meeting, however, the debate continues.
An update will be presented to the council Tuesday night in executive session. Mayor Susan Narvaiz said it could be placed on the formal agenda for March 23 if the council is far enough along in the negotiations with Triple Tap Ventures, LLC, owners of Alamo Draft House, to move forward with the project.
The debate to provide an incentive for Alamo Draft House to move into the Springtown Mall comes alongside a list of discussion items regarding the redevelopment of the shopping center.
Saturday marked the first of three public information sessions Narvaiz is holding regarding the decision.
The meetings will be centered around economic and community development. Each of the three sessions will address the same topic, but updates will be given on the progress of Springtown’s development at each.
The tabled discussion centered around whether to give Triple Tap Ventures a $2.5 million, interest-free loan to build an Alamo Draft House in the former Best Buy location.
“The credit crunch that’s happening nationwide — it’s affecting the ability of funding,” said Councilmember Kim Porterfield, Place 1. “We really need a different deal so everyone can support it.”
Neil Michaelsen, president of Triple Tap Ventures, declined to comment on the state of discussions with the city officials.
“We want to make something happen,” Michaelsen said. “We are working very hard to bring an Alamo Draft House to San Marcos. We think it will be successful.”
Naraiz said offering incentives to developers is common.
The city awarded the developers of the Stone Creek Crossing Shopping Center, which houses Target and JC Penny, a $6 million sales tax rebate. The incentive is different than what is proposed for the draft house.
Porterfield said the rebate would reduce risks associated with the deal, allowing the city to keep tax revenue.
“Something like a sales tax rebate (is) more appealing to me than a grant to the developer,” Porterfield said.
There are more people involved in the issue than those supporting a San Marcos Alamo Draft House.
Councilmember Fred Terry, Place 3, said the redevelopment of the shopping center is especially problematic because Target owns its former building and part of the parking lot. Lamy-Springtown Mall Ltd. owns the remaining portion of the shopping center and is facing foreclosure.
“It’s bad news for the current owner, but good news for a redeveloper to buy at a lesser cost,” said Councilmember Ryan Thomiades, Place 6.
Narvaiz said bankruptcy is a long process. The property could be in worse condition by the time it is eligible for resale.
“By the time it goes through the legal system, it could be another two years,” Narvaiz said. “Property values won’t be able to hang on.”
Will Conley, Hays County commissioner and owner of Conley Car Wash and Express Lube, said he paid a premium for his property because it was near the once-thriving shopping center. Conley expects his business’s property values to decline if the center is not filled within a few years.
“That’s why I think so much of us are interested — to make sure we don’t get to that point,” Conley said.
Conley has lost 20 to 30 percent of revenue in certain areas of his business, particularly in car details. He said customers would drop off their cars and go shopping, but now there is less traffic on the road and fewer customers.
“That has a major impact on investments, short-term cash-flow issues and-long term consequence to brand values,” Conley said.
Narvaiz said the redevelopment effort entails more than bringing an Alamo Draft House into San Marcos.
“It’s about trying to save the small businesses that are there, not only in the center, but on Thorpe Lane,” Narvaiz said. “(The Springtown Center) was an anchor that drew traffic to the area.”
