Living at Hemisfair is now a go following the San Antonio City Council’s unanimous approval of the park’s first public-private partnership with local AREA Real Estate.
Set to go on the 1.1-acre parcel in the southwest quadrant of the downtown park, AREA will move forward with plans to develop a 163-unit, mixed-income complex along with a 418-space parking garage that will lease 238 spaces back to Hemisfair for public use.
The city approved HPARC’s first P3 agreement with a 9-0 vote Thursday afternoon.
The development, which will also include 3,200 square feet of retail space, will be a $25 million investment. Construction for the apartment building is expected to begin in 2016, with units available for leasing by 2017.
Lake Flato and WGW Architects will lead the design for the complex.
Public-private partnerships, or P3s, will be a critical component for Hemifair’s financial stability. Once completed, the deal between AREA and the Hemisfair redevelopment group will cover 55 percent of the costs needed to operate the parks, and the remaining 45 percent will be accumulated through private donations, public funds and parking revenue.
HPARC’s second P3 agreement is on its way toward the development of the two-parcel, 5-acre site in the northwest quadrant of the downtown park, which has the potential for mid- to high-rise multifamily, hotel, office, retail and parking uses. Two choices are left in the running: a partnership between the local office for The NRP Group and Zachry Corp., and Dallas-based Cambridge Holdings.
HPARC CEO Andres Andujar said last month that a decision between the two wouldn’t be made until late January or early February. HPARC’s board of directors likely won’t vote on a finalist until later this year.
Katie Burke, San Antonio Business Journal