Good afternoon.

The time is now 2 p.m.

on Wednesday, September 3rd, 2025 in the City of San Antonio budget work session is called to order.

Madam Clerk, please call the roll.

Council member for Councilmember Castillo Angiano.

Councilmember Via Gran.

Councilmember Mungia.

Councilmember Castillo.

Councilmember Galvan.

Councilmember Alaretta Gavito.

Here.

Councilmember Mesa Gonzalez.

Councilmember Spears.

Councilmember White.

Mayor Jones.

Here.

Mayor, we have quorum.

Great, thank you, Madam Clerk.

So this meeting is to hear about the tax increment reinvestment zones.

You know, as mentioned, uh we are constantly looking to strengthen the general fund and understanding where money is and uh may be able to help in that regard is important.

So I'm thankful that they've prepared a presentation largely on the city initiated tours to help lay flat what we might be able to do in the immediate but maybe longer term, um, as some of these are much closer to realizing the goals as initially stated when they were established.

Um so Eric, over to you.

Thank you, Mayor.

Good afternoon, Mayor and Council.

So, yes, the this was an issue that the mayor raised at our June uh budget work session.

So uh from that request uh today's briefing on our uh tax increment refinance zones or otherwise known as TURS of Veronica Garcia and Troy Elliott will walk through uh will tag team the presentation today.

So the presentation is an overview of the TURS, how they're structured under state law, um, how they're structured under our own ordinance uh policy, and we'll provide summary information for each of the tours.

I think when the mayor brought this up at the end of June, it was um broadly about tours.

There were several council members that also uh mentioned um the other type of tours we have, which is developer uh focused tours, very different.

We'll walk through both of those.

Um the um the information that you're seeing that you saw on the slides that we distributed and you'll see today is from the actual tours plans.

Um and some of those plans um are still in the process of being updated or will need to be updated based on uh other actions.

And I'll give you a couple of examples.

One um when you see Houston Street tours, um we have the approved term sheet with the missions and Western Urban.

Um, but based on that timeline of the um of the agreement we have with them the the um uh work around that tours and future financing, that tours plan will need to be updated and brought to council, and that was part of our original plan.

Likewise, the hemisphere tours that um the council recently talked about in terms of arena, there is dependent on what happens later on this year, there's work that has to go on.

Then there's other examples.

Um the uh for the initial inner city tours, there's a request that I'm working on with um uh councilman uh Castillo Aguillano and um and Councilman McKee Rodriguez uh regarding the budget.

These slides make no assumption around that.

So that's individualized work that we need to do.

Um so based on the council's conversation today.

If there's follow-up, we'll do the um the specific analysis and work and report back to council.

So I'm gonna kick it off to uh Troy to begin with, and then Veronica will tail in really to focus on the development tours.

Thank you, Eric.

Good afternoon, Mayor and Council.

Um, this is my second time back in two weeks, as well as Veronica.

Uh my name is Troy Elliott, I'm the chief financial officer.

As Eric mentioned, I think he stole most of my introduction.

But um, Veronica and I will be tag teaming.

I plan on providing you with an overview of TURS, kind of how they function.

Dive into specifically to the city initiated tours, then hand it off to Veronica Garcia, our director of neighborhood housing services to talk about the petition initiated or the developer initiated tours.

First of all, jumping into you know what is a what is a TURS?

What is tax increment financing?

Um specifically governed by the tax increment financing act, chapter 311 of the Texas Tax Texas uh tax code.

Uh the tax code provides kind of the regulatory framework that provides us guidance on how we establish the tours, how we use the tours, and the type of tours is that we can actually put in place being city initiated, city initiated and petition initiated.

No tours is a public financing tool that is used to promote economic development in a specific area or zone that needs that um dedicated investment under chapter 311.

There are eligible expenses that are broadly defined to include capital costs, such as acquisition, public improvements, public parks, remediation, and demolition.

Also includes financing and administrative costs.

All of our tours have some form of administrative fee that we collect to fund the supporting operations through a TIFF unit to manage the board relationships and the um project plans and also the finance plans.

We can also use a tours for to fund professional services and studies benefiting the zone.