Tax Increment Reinvestment Zone No.28 Verano
Regular MeetingSan Antonio, TX · April 14, 2025
Agenda
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Public Comments
1. Members of the public must register in person (fill out provided sign in sheet) prior to the posted
meeting time to speak for, against, or on any item on the agenda. Individuals are given three (3)
minutes to speak, and groups are given nine (9) minutes to address the Board.
Approval of Minutes
2. Approval of the Minutes from the April 23, 2024 meeting of the Verano TIRZ Board of
Directors.
Financial Report
3. The Financial Management Division will present on the financial status of the Verano TIRZ.
Briefing and Possible Action on the following items
4. Resolution authorizing payment oflnvoice #1 to ROW at Zarzamora, for an amount up to
$657,267.97 from future increment for allowable reimbursable expenses within the approved
Development Agreement.
5. Resolution authorizing payment of Invoice #5 to South Star at Verano, LLC for an amount up to
$6,224,897.51 from future increment for allowable reimbursement expenses within the approved
Development Agreement.
6. Resolution authorizing payment of Invoice #6 to South Star at Verano, LLC for an amount up to
$3,947,797.36 from future increment for allowable reimbursable expenses within the approved
Development Agreement.
7. Resolution authorizing payment oflnvoice #7 to South Star at Verano, LLC for invoices related to
University Health System for an amount up to $18,466,549.70 from future increment for allowable
reimbursable expenses within the approved Development Agreement.
Staff Updates
Adjournment
At any time during the meeting, the Tax Increment Reinvestment Zone No. 28 - Verano may meet in
executive session for consultation with the City Attorney's Office concerning attorney client matters
related to the above referenced Agenda Items under Chapter 551 of the Texas Government Code.
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by reasonably providing: translation and interpretation, materials in alternate formats, and
other accommodations upon request. To request these services call (210) 207-6357 or Relay
Texas 711 or by requesting these services online at
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help to ensure availability.
Posted on: 04/11/2025 10:55 AM
1. Public Comments
Members of the public must register in person (fill out provided sign in
sheet) prior to the posted meeting time to speak for, against, or on any
item on the agenda. Individuals are given three (3) minutes to speak, and
groups are given nine (9) minutes to address the Board.
2. Approval of Minutes
Approval of the Minutes from the April 23, 2024 meeting of the Verano
TIRZ Board of Directors.
City of San Antonio
Minutes
Tax Increment Reinvestment Zone 28 -- Verano
Tuesday, April 23, 2024, 1:00 PM
Municipal Plaza Building, B Room, 105 Main Plaza, San Antonio, Texas 78205
Call to Order / Roll Call
Board Members Present:
Councilwoman Phyllis Viagran
Daniel T. Crowley
Marcus Primm
Tim Bartlett
William (Bill) Phillips
Rebecca Viagran (virtual)
Thad Rutherford
Dr. Amy C. Lewis
Beatrice Briseno
Rick Trefzer (arrived after roll call and approval of minutes)
Board Member Absent:
Councilwoman Adriana Rocha Garcia
Ana Bustamante
Manuel Leal
COSA Staff
David Kurpgeweit, TIF Manager, NHSD/TIF; Fedra Hildebrandt, NHSD/TIF; Daniel Sirio, NHSD/TIF;
Juan Hernandez, NHSD/TIF; Rosia Coria, NHSD/TIF; Raquel Bretado-Garza, NHSD/TIF; Matthew
Rodriguez, CAO; Alfred Chang, FMD; Shirley Sauceda, FMD; Christopher Villa, CD3.
Guests
Gretchen Howell, Southstar; Mia Dominguez, Southstar; BJ Jones, Southstar
Call to Order
The meeting was called to order at 1:03 PM. At roll call, 10 members were present, representing a
quorum.
Public Comments
None
Approval of Minutes
A motion to approve the minutes from the October 10, 2023, Verano TIRZ board meeting was made by
Tim Bartlett. Thad Rutherford seconded the motion. A vote was taken, 9 ayes, 0 abstained, the
Page 1 of 4
motion carried.
Financial Report
The Financial Report was provided by Shirley Sauceda. No questions were presented for this item.
Comment made regarding the 1 year’s worth of increment is past the 15 years previous. So, we are
moving in a good direction.
Briefing item only.
Briefing and Possible Action on the following items:
#4. The Developer will present on the status of the Project.
Gretchen Howell, Senior Vice President with Southstar, provided a presentation on the latest
improvements within the Verano TIRZ.
Councilwoman Viagran asked, “How is the traffic working with the in and out, and has there been
coordination with the University?” Ms. Howell said that several times they have diverted their plans for
the good of the University, and they are also coordinating with the University and will continue those
conversations to understand and make sure that they are not exacerbating a traffic situation. Ms. Howell
said they are also working with partners to bring public art to the Vida areas, as well as downtown
whenever possible.
Rebecca Viagran asked if the Board would get more information on the hospital status near Vida?
Councilwoman Viagran said that would be a topic for the next board meeting.
Briefing only, no action necessary.
#5. Update from San Antonio Water Systems
Dan Crowley, with SAWS, provided the presentation to the Verano TIRZ Board.
No questions or comments were presented for this item.
#6. Resolution authorizing payment of Invoice #3 to South Star at Verano, LLC for an amount up to
$4,426,083.36 from future increments for allowable reimbursable expenses within the approved
Development Agreement.
David Kurpgeweit, TIF Manager, presented some background for the Verano TIRZ and commented that
staff recommends the approval of this item.
A motion to approve the item was made by Daniel Crowley. Dr. Amy C. Lewis seconded the motion.
A roll call vote was taken:
Page 2 of 4
Tim Bartlett
Councilwoman Viagran
Daniel Crowley
Rebecca Viagran
Dr. Amy C. Lewis
Thad Rutherford
Marcus Primm
William (Bill) Phillips
Beatrice Briseno
Rick Trefzer
10 ayes, 0 abstained, the motion carried.
#7. Resolution authorizing payment of Invoice #4 to South Star at Verano, LLC for an amount up to
$3,005,178.35 from future increments for allowable reimbursement expenses within the approved
Development Agreement.
David Kurpgeweit, TIF Manager, presented some background for the Verano TIRZ and commented that
staff recommend for approval of this item.
A motion to approve the item was made by Tim Bartlett. Rebecca Viagran seconded the motion.
A vote was taken:
Tim Bartlett
Councilwoman Viagran
Daniel Crowley
Rebecca Viagran
Dr. Amy C. Lewis
Thad Rutherford
Marcus Primm
William (Bill) Phillips
Beatrice Briseno
Rick Trefzer
10 ayes, 0 abstained, the motion carried.
Staff Updates:
David Kurpgeweit stated TIF did receive another submission from someone other than Southstar, and
staff is currently working on that, and plans to have an update at the next Verano TIRZ Board meeting in
terms of how we are to handle such submissions going forward.
Lastly, to recap, we plan on having an update for the next Verano TIRZ Board meeting from University
Hospital as requested as well.
Page 3 of 4
Adjournment:
Hearing no further discussion, Councilwoman Phyllis Viagran adjourned without objection at 1:30 PM.
Certified this ________ day of ______________, 2024.
Attest:
Councilwoman Phyllis Viagran Fedra Hildebrandt, (NHSD, TIF)
Presiding Officer Recorder/Transcriber of Minutes
Page 4 of 4
3. Financial Report
The Financial Management Division will present on the financial status of
the Verano TIRZ.
Item # 4
Resolution authorizing payment of Invoice #1 to ROW at Zarzamora, for an
amount up to $657,267.97 from future increment for allowable
reimbursable expenses within the approved Development Agreement.
City of San Antonio
Agenda Memorandum
File Number: 25-
206323
Agenda Item Number: 4
Agenda Date: April 14, 2025
In Control: Tax Increment Reinvestment Zone No. 28 - Verano
DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Veronica Garcia, Director
COUNCIL DISTRICTS IMPACTED: District 3|District 4
SUBJECT:
Authorizing payment of Invoice #1 to ROW at Zarzamora, for a total amount up to $657, 267.97 in
allowable reimbursable expenses within the approved Development Agreement.
SUMMARY:
After Board approval, the submission from ROW at Zarzamora, shall receive up to $657,267.97 for
invoice #1 from future increment.
BACKGROUND INFORMATION:
The City of San Antonio’s Verano TIRZ was originally designated on December 6, 2007. The Verano TIRZ
boundary, originally 2,700 acres, has been amended to include portions of the area north of South Loop 410
to include Palo Alto College and surrounding properties. The new TIRZ boundary is now 3,100 acres of
largely undeveloped land that will be utilized to construct 2,542 single-family detached homes, 3,375
multi-family homes, 1,021 condos/town homes, 5,977,200 square feet of commercial, and the new
Texas A&M – San Antonio ”TAMU-SA” campus with an estimated 25,000 student
enrolled at full build-out. The Verano Site is located within a Texas Enterprise Zone eligible area
and is eligible for the Tax Increment Financing Tool as defined in the City’s 2006 TIF Guidelines. The
TIRZ is located in City Council Districts 3 and 4, and Bexar County Precinct 1 in the south section of the
City, generally along and south of Loop 410. The project is located in the Southwest, Southside,
South San Antonio, and Harlandale Independent School Districts.
This TIRZ will enhance the quality of life for the existing residents of the region, and the City will gain a
self-sustaining, mixed use community in the spirit of the initiatives set by the City South Community Plan.
Participating taxing entities are the City of San Antonio, Bexar County, Alamo Community College
District, and San Antonio River Authority. The City of San Antonio has negotiated a 75%
participation level and a maximum contribution to the developer’s cost of $135,000,000 plus an
additional $3,700,000 to cover administrative fees; The TIRZ will reimburse costs associated with the
public improvements for this project which include: streets, drainage/retention, water, sewer, street
lights, street signs, streetscapes, linear parks, parks/plazas, platting/zoning fees, storm water pollution
prevention, park fees, drainage impact fees, off site drainage, sewer/water impact fees, and
environmental review. The Verano TIRZ will be in existence through September 30, 2045.
ISSUE:
Board consideration is requested to authorize payment of Invoice #1 to ROW at Zarzamora, seeking
reimbursement for allowable expenses for a total amount up to $657,267.97.
FISCAL IMPACT:
ROW at Zarzamora, is seeking reimbursement for allowable expenses for a total amount of
$657,267.97. There is no fiscal impact to the General Fund. The funds come from the Verano TIRZ
increment fund.
ALTERNATIVES:
The Board could decide to not authorize payment of Invoice #1 to ROW of Zarzamora, for
allowable expenses for a total amount up to $657,267.97. This would result in delays or lead to the
cancelation of the TIRZ.
RECOMMENDATION:
Staff recommends approval of the Resolution authorizing payment of Invoice #1 to ROW at
Zarzamora, for a total amount of $657,267.97 from future increment for allowable reimbursable
expenses within the approved Development Agreement.
TR
04/14/25
Item No. 4
T28 2025-04-14-01R
RESOLUTION OF THE BOARD OF DIRECTORS OF TAX REINVESTMENT ZONE
NUMBER TWENTY-EIGHT, CITY OF SAN ANTONIO, TEXAS, KNOWN AS THE
VERANO TIRZ, TO APPROVE REQUEST BY ROW AT ZARZAMORA, LLC FOR
INVOICE #1.
* * * * *
WHEREAS, City Council through Ordinance No. 2007-12-06-1257, designated the Reinvestment
Zone Number Twenty-Eight, City of San Antonio, Texas, through designation of the area as an
enterprise zone, in Council District 3, to assist revitalization and reinvestment initiatives in the
City that encourage long-term, high quality investment; and
WHEREAS, the City and the Verano TIRZ Board of Directors (“Board”) recognize the
importance of their continued role in economic development, community development, planning,
and urban design in accordance with the Tax Increment Financing Act, Texas Tax Code, Chapter
311, of the Texas Tax Code (“the Act”); and
WHEREAS, on November 20, 2008, City Council through Ordinance 2008-11-20-1016 approved
a Development Agreement with VTLM Texas, LP; and
WHEREAS, on January 28, 2016, City Council through Ordinance No. 2016-01-28-0041
approved the assignment of all obligations and rights under the Development Agreement from
VTLM Texas, LP to Verano Land Group, LP; and
WHEREAS, on November 7, 2019, City Council through Ordinance No. 2019-11-7-0920
approved the assignment of all obligations and rights under the Development Agreement from
Verano Land Group, LP, to South Star at Verano, LLC (the “Developer”); and
WHEREAS, ROW at Zarzamora, LLC has submitted the following invoice for approval by the
Board, with the knowledge that the request for reimbursement of anything over the cap is not
reimbursable and would not make it onto CPPRs:
A) Invoice Number 1 in the amount of $657,267.97; and
WHEREAS, it is now necessary for the Board to consider and approve the amount requested for
payment in Invoice 1;
NOW THEREFORE: BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE
VERANO TAX INCREMENT REINVESTMENT ZONE:
SECTION 1. The recitals set out above are adopted in their entirety.
TR
04/14/25
Item No. 4
SECTION 2. The Board hereby approves for consideration by City Staff, ROW at Zarzamora,
LLC invoice numbered 1, which shall be paid according to the provisions of the
Development Agreement.
PASSED AND APPROVED this 14th day of April, 2025.
APPROVED AS TO FORM:
_____________________________ _________________________________
PRESIDING OFFICER ASSISTANT CITY ATTORNEY
Item # 5
Resolution authorizing payment of Invoice #5 to South Star at Verano, LLC
for an amount up to $6,224,897.51 from future increment for allowable
reimbursement expenses within the approved Development Agreement.
City of San Antonio
Agenda Memorandum
File Number: 25-206324
Agenda Item Number: 5
Agenda Date: April 14, 2025
In Control: Tax Increment Reinvestment Zone No. 28 - Verano
DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Veronica Garcia, Director
COUNCIL DISTRICTS IMPACTED: District 3|District 4
SUBJECT:
Authorizing payment of Invoice #5 to South Star at Verano, LLC for an amount up to
$6,224,897.51 in allowable reimbursement expenses within the approved Development
Agreement.
SUMMARY:
With Board approval, the Developer of record, South Star at Verano, LLC shall receive the
permitted payment for allowable reimbursable expenses of up to $6,224,897.51 in future
increment.
BACKGROUND INFORMATION:
The City of San Antonio’s Verano TIRZ was originally designated on December 6, 2007. The
Verano TIRZ boundary, originally 2,700 acres, has been amended to include portions of the area
north of South Loop 410 to include Palo Alto College and surrounding properties. The new TIRZ
boundary is now 3,100 acres of largely undeveloped land that will be utilized to construct 2,542
single-family detached homes, 3,375 multi-family homes, 1,021 condos/town homes,
5,977,200 square feet of commercial, and the new Texas A&M – San Antonio ”TAMU-SA”
campus with an estimated 25,000 student enrolled at full build-out. The Verano Site is located
within a Texas Enterprise Zone eligible area and is eligible for the Tax Increment Financing Tool
as defined in the City’s 2006 TIF Guidelines. The TIRZ is located in City Council Districts 3 and
4, and Bexar County Precinct 1 in the south section of the City, generally along and south of Loop
410. The project is located in the Southwest, Southside, South San Antonio, and Harlandale
Independent School Districts.
This TIRZ will enhance the quality of life for the existing residents of the region, and the City will
gain a self-sustaining, mixed use community in the spirit of the initiatives set by the City South
Community Plan. Participating taxing entities are the City of San Antonio, Bexar County, Alamo
Community College District, and San Antonio River Authority. The City of San Antonio has
negotiated a 75% participation level and a maximum contribution to the developer’s cost of
$135,000,000 plus an additional $3,700,000 to cover administrative fees; The TIRZ will reimburse
costs associated with the public improvements for this project which include: streets,
drainage/retention, water, sewer, street lights, street signs, streetscapes, linear parks, parks/plazas,
platting/zoning fees, storm water pollution prevention, park fees, drainage impact fees, off site
drainage, sewer/water impact fees, and environmental review. The Verano TIRZ will be in
existence through September 30, 2045.
ISSUE:
Board consideration is requested to authorize payment of Invoice #5 to South Star at Verano, LLC
seeking reimbursement for allowable reimbursable expenses for an amount up to $6,224,897.51.
FISCAL IMPACT:
South Star at Verano, LLC is seeking reimbursement for allowable reimbursable expenses for an
amount up to $6,224,897.51. There is no fiscal impact to the General Fund. The funds come from
the Verano TIRZ increment fund.
ALTERNATIVES:
The Board could decide to not authorize payment of Invoice #5 to South Star at Verano, LLC for
allowable reimbursable expenses for an amount up to $6,224,897.51. However, this would result
in delays or lead to the cancelation of the TIRZ.
RECOMMENDATION:
Staff recommends approval of the Resolution authorizing payment of Invoice #5 to South Star at
Verano, LLC for an amount up to $6,224,897.51 from future increment for allowable reimbursable
expenses within the approved Development Agreement.
TR
04/14/25
Item No. 5
T28 2025-04-14-02R
RESOLUTION OF THE BOARD OF DIRECTORS OF TAX REINVESTMENT ZONE
NUMBER TWENTY-EIGHT, CITY OF SAN ANTONIO, TEXAS, KNOWN AS THE
VERANO TIRZ, TO APPROVE REQUEST BY SOUTH STAR AT VERANO, LLC FOR
INVOICE #5.
* * * * *
WHEREAS, City Council through Ordinance No. 2007-12-06-1257, designated the Reinvestment
Zone Number Twenty-Eight, City of San Antonio, Texas, through designation of the area as an
enterprise zone, in Council District 3, to assist revitalization and reinvestment initiatives in the
City that encourage long-term, high quality investment; and
WHEREAS, the City and the Verano TIRZ Board of Directors (“Board”) recognize the
importance of their continued role in economic development, community development, planning,
and urban design in accordance with the Tax Increment Financing Act, Texas Tax Code, Chapter
311, of the Texas Tax Code (“the Act”); and
WHEREAS, on November 20, 2008, City Council through Ordinance 2008-11-20-1016 approved
a Development Agreement with VTLM Texas, LP; and
WHEREAS, on January 28, 2016, City Council through Ordinance No. 2016-01-28-0041
approved the assignment of all obligations and rights under the Development Agreement from
VTLM Texas, LP to Verano Land Group, LP; and
WHEREAS, on November 7, 2019, City Council through Ordinance No. 2019-11-7-0920
approved the assignment of all obligations and rights under the Development Agreement from
Verano Land Group, LP, to South Star at Verano, LLC (the “Developer”); and
WHEREAS, Developer has submitted the following invoice for approval by the Board, with the
knowledge that the request for reimbursement of anything over the cap is not reimbursable and
would not make it onto CPPRs:
A) Invoice Number 5 in the amount of $6,224,897.51; and
WHEREAS, it is now necessary for the Board to consider and approve the amount requested for
payment in Invoice Number 5;
NOW THEREFORE: BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE
VERANO TAX INCREMENT REINVESTMENT ZONE:
SECTION 1. The recitals set out above are adopted in their entirety.
TR
04/14/25
Item No. 5
SECTION 2. The Board hereby approves for consideration by City Staff, South Star at Verano,
LLC invoice numbered 5, which shall be paid according to the provisions of the
Development Agreement.
PASSED AND APPROVED this 14th day of April, 2025.
APPROVED AS TO FORM:
_____________________________ _________________________________
PRESIDING OFFICER ASSISTANT CITY ATTORNEY
Item # 6
Resolution authorizing payment of Invoice #6 to South Star at Verano, LLC
for an amount up to $3,947,797.36 from future increment for allowable
reimbursable expenses within the approved Development Agreement.
City of San Antonio
Agenda Memorandum
File Number: 25-206325
Agenda Item Number: 6
Agenda Date: April 14, 2025
In Control: Tax Increment Reinvestment Zone No. 28 - Verano
DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Veronica Garcia, Director
COUNCIL DISTRICTS IMPACTED: District 3|District 4
SUBJECT:
Authorizing payment of Invoice #6 to South Star at Verano, LLC for an amount up to
$3,947,797.36 in allowable reimbursable expenses within the approved Development Agreement.
SUMMARY:
With Board approval, the Developer of record, South Star at Verano, LLC shall receive the
permitted payment for allowable reimbursable expenses of up to $3,947,797.36 in future
increment.
BACKGROUND INFORMATION:
The City of San Antonio’s Verano TIRZ was originally designated on December 6, 2007. The
Verano TIRZ boundary, originally 2,700 acres, has been amended to include portions of the area
north of South Loop 410 to include Palo Alto College and surrounding properties. The new TIRZ
boundary is now 3,100 acres of largely undeveloped land that will be utilized to construct 2,542
single-family detached homes, 3,375 multi-family homes, 1,021 condos/town homes,
5,977,200 square feet of commercial, and the new Texas A&M – San Antonio ”TAMU-SA”
campus with an estimated 25,000 student enrolled at full build-out. The Verano Site is located
within a Texas Enterprise Zone eligible area and is eligible for the Tax Increment Financing Tool
as defined in the City’s 2006 TIF Guidelines. The TIRZ is located in City Council Districts 3 and
4, and Bexar County Precinct 1 in the south section of the City, generally along and south of Loop
410. The project is located in the Southwest, Southside, South San Antonio, and Harlandale
Independent School Districts.
This TIRZ will enhance the quality of life for the existing residents of the region, and the City will
gain a self-sustaining, mixed use community in the spirit of the initiatives set by the City South
Community Plan. Participating taxing entities are the City of San Antonio, Bexar County, Alamo
Community College District, and San Antonio River Authority. The City of San Antonio has
negotiated a 75% participation level and a maximum contribution to the developer’s cost of
$135,000,000 plus an additional $3,700,000 to cover administrative fees; The TIRZ will reimburse
costs associated with the public improvements for this project which include: streets,
drainage/retention, water, sewer, street lights, street signs, streetscapes, linear parks, parks/plazas,
platting/zoning fees, storm water pollution prevention, park fees, drainage impact fees, off site
drainage, sewer/water impact fees, and environmental review. The Verano TIRZ will be in
existence through September 30, 2045.
ISSUE:
Board consideration is requested to authorize payment of Invoice #6 to South Star at Verano, LLC
seeking reimbursement for allowable reimbursable expenses for an amount up to $3,947,797.36.
FISCAL IMPACT:
South Star at Verano, LLC is seeking reimbursement for allowable reimbursable expenses for an
amount up to $3,947,797.36. There is no fiscal impact to the General Fund. The funds come from
the Verano TIRZ increment fund.
ALTERNATIVES:
The Board could decide to not authorize payment of Invoice #6 to South Star at Verano, LLC for
allowable reimbursable expenses for an amount up to $3,947,797.36. However, this would result
in delays or lead to the cancelation of the TIRZ.
RECOMMENDATION:
Staff recommends approval of the Resolution authorizing payment of Invoice #6 to South Star at
Verano, LLC for an amount up to $3,947,797.36 from future increment for allowable reimbursable
expenses within the approved Development Agreement.
TR
04/14/25
Item No. 6
T28 2025-04-14-03R
RESOLUTION OF THE BOARD OF DIRECTORS OF TAX REINVESTMENT ZONE
NUMBER TWENTY-EIGHT, CITY OF SAN ANTONIO, TEXAS, KNOWN AS THE
VERANO TIRZ, TO APPROVE REQUEST BY SOUTH STAR AT VERANO, LLC FOR
INVOICE #6.
* * * * *
WHEREAS, City Council through Ordinance No. 2007-12-06-1257, designated the Reinvestment
Zone Number Twenty-Eight, City of San Antonio, Texas, through designation of the area as an
enterprise zone, in Council District 3, to assist revitalization and reinvestment initiatives in the
City that encourage long-term, high quality investment; and
WHEREAS, the City and the Verano TIRZ Board of Directors (“Board”) recognize the
importance of their continued role in economic development, community development, planning,
and urban design in accordance with the Tax Increment Financing Act, Texas Tax Code, Chapter
311, of the Texas Tax Code (“the Act”); and
WHEREAS, on November 20, 2008, City Council through Ordinance 2008-11-20-1016 approved
a Development Agreement with VTLM Texas, LP; and
WHEREAS, on January 28, 2016, City Council through Ordinance No. 2016-01-28-0041
approved the assignment of all obligations and rights under the Development Agreement from
VTLM Texas, LP to Verano Land Group, LP; and
WHEREAS, on November 7, 2019, City Council through Ordinance No. 2019-11-7-0920
approved the assignment of all obligations and rights under the Development Agreement from
Verano Land Group, LP, to South Star at Verano, LLC (the “Developer”); and
WHEREAS, Developer has submitted the following invoice for approval by the Board, with the
knowledge that the request for reimbursement of anything over the cap is not reimbursable and
would not make it onto CPPRs:
A) Invoice Number 6 in the amount of $3,947,797.36; and
WHEREAS, it is now necessary for the Board to consider and approve the amount requested for
payment in Invoice Number 6;
NOW THEREFORE: BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE
VERANO TAX INCREMENT REINVESTMENT ZONE:
SECTION 1. The recitals set out above are adopted in their entirety.
TR
04/14/25
Item No. 6
SECTION 2. The Board hereby approves for consideration by City Staff, South Star at Verano,
LLC invoice numbered 6, which shall be paid according to the provisions of the Development
Agreement.
PASSED AND APPROVED this 14th day of April, 2025.
APPROVED AS TO FORM:
_____________________________ _________________________________
PRESIDING OFFICER ASSISTANT CITY ATTORNEY
Item # 7
Resolution authorizing payment of Invoice #7 to South Star at Verano, LLC
for invoices related to University Health System for an amount up to
$18,466,549.70 from future increment for allowable reimbursable expenses
within the approved Development Agreement.
City of San Antonio
Agenda Memorandum
File Number: 25-206326
Agenda Item Number: 7
Agenda Date: April 14, 2025
In Control: Tax Increment Reinvestment Zone No. 28 - Verano
DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Veronica Garcia, Director
COUNCIL DISTRICTS IMPACTED: District 3|District 4
SUBJECT:
Authorizing payment of Invoice #7 to South Star at Verano, LLC for invoices related to University
Health System for an amount up to $18,466,549.70 from future increment for allowable
reimbursable expenses within the approved Development Agreement.
SUMMARY:
With Board approval, South Star at Verano, LLC for an invoice related to University Health
System, shall receive the permitted payment for allowable reimbursable expenses for an amount
up to $18,466,549.70 in future increment.
BACKGROUND INFORMATION:
The City of San Antonio’s Verano TIRZ was originally designated on December 6, 2007. The
Verano TIRZ boundary, originally 2,700 acres, has been amended to include portions of the area
north of South Loop 410 to include Palo Alto College and surrounding properties. The new TIRZ
boundary is now 3,100 acres of largely undeveloped land that will be utilized to construct 2,542
single-family detached homes, 3,375 multi-family homes, 1,021 condos/town homes,
5,977,200 square feet of commercial, and the new Texas A&M – San Antonio ”TAMU-SA”
campus with an estimated 25,000 student enrolled at full build-out. The Verano Site is located
within a Texas Enterprise Zone eligible area and is eligible for the Tax Increment Financing Tool
as defined in the City’s 2006 TIF Guidelines. The TIRZ is located in City Council Districts 3 and
4, and Bexar County Precinct 1 in the south section of the City, generally along and south of Loop
410. The project is located in the Southwest, Southside, South San Antonio, and Harlandale
Independent School Districts.
This TIRZ will enhance the quality of life for the existing residents of the region, and the City will
gain a self-sustaining, mixed use community in the spirit of the initiatives set by the City South
Community Plan. Participating taxing entities are the City of San Antonio, Bexar County, Alamo
Community College District, and San Antonio River Authority. The City of San Antonio has
negotiated a 75% participation level and a maximum contribution to the developer’s cost of
$135,000,000 plus an additional $3,700,000 to cover administrative fees; The TIRZ will reimburse
costs associated with the public improvements for this project which include: streets,
drainage/retention, water, sewer, street lights, street signs, streetscapes, linear parks, parks/plazas,
platting/zoning fees, storm water pollution prevention, park fees, drainage impact fees, off site
drainage, sewer/water impact fees, and environmental review. The Verano TIRZ will be in
existence through September 30, 2045.
ISSUE:
Board consideration is requested to authorize payment of Invoice #7 to South Star at Verano, LLC
for an invoice related to University Health System at Verano, seeking reimbursement for allowable
reimbursable expenses for an amount up to $18,466,549.70.
FISCAL IMPACT:
South Star at Verano, LLC for invoices related to University Health System is seeking
reimbursement for allowable reimbursable expenses for an amount up to $18,466,549.70. There is
no fiscal impact to the General Fund. The funds come from the Verano TIRZ increment fund.
ALTERNATIVES:
The Board could decide to not authorize payment of Invoice #7 to South Star at Verano, LLC for
invoices related to University Health System for allowable reimbursable expenses for an amount
up to $18,466,549.70. However, this would result in delays or lead to the cancelation of the TIRZ.
RECOMMENDATION:
Staff recommends approval of the Resolution authorizing payment of Invoice #7 to South Star at
Verano, LLC to University Health System, for an amount up to $18,466,549.70 from future
increment for allowable reimbursable expenses within the approved Development Agreement.
TR
04/14/25
Item No. 7
T28 2025-04-14-04R
RESOLUTION OF THE BOARD OF DIRECTORS OF TAX REINVESTMENT ZONE
NUMBER TWENTY-EIGHT, CITY OF SAN ANTONIO, TEXAS, KNOWN AS THE
VERANO TIRZ, TO APPROVE REQUEST BY SOUTH STAR AT VERANO, LLC (UHS
REIMBURSEMENT) FOR INVOICE #7.
* * * * *
WHEREAS, City Council through Ordinance No. 2007-12-06-1257, designated the Reinvestment
Zone Number Twenty-Eight, City of San Antonio, Texas, through designation of the area as an
enterprise zone, in Council District 3, to assist revitalization and reinvestment initiatives in the
City that encourage long-term, high quality investment; and
WHEREAS, the City and the Verano TIRZ Board of Directors (“Board”) recognize the
importance of their continued role in economic development, community development, planning,
and urban design in accordance with the Tax Increment Financing Act, Texas Tax Code, Chapter
311, of the Texas Tax Code (“the Act”); and
WHEREAS, on November 20, 2008, City Council through Ordinance 2008-11-20-1016 approved
a Development Agreement with VTLM Texas, LP; and
WHEREAS, on January 28, 2016, City Council through Ordinance No. 2016-01-28-0041
approved the assignment of all obligations and rights under the Development Agreement from
VTLM Texas, LP to Verano Land Group, LP; and
WHEREAS, on November 7, 2019, City Council through Ordinance No. 2019-11-7-0920
approved the assignment of all obligations and rights under the Development Agreement from
Verano Land Group, LP, to South Star at Verano, LLC (the “Developer”); and
WHEREAS, Developer and University Health System (“UHS”) entered into an agreement,
whereby UHS purchased a parcel of land from Developer to construct a hospital; and
WHEREAS, pursuant to that agreement, Developer reserved the right to submit for
reimbursement, certain costs associated with the construction of the hospital; and
WHEREAS, Developer has submitted the following invoice for approval by the Board, with the
knowledge that the request for reimbursement of anything over the cap is not reimbursable and
would not make it onto CPPRs:
A) Invoice Number 7 (UHS Reimbursement) in the amount of $18,466,549.70; and
WHEREAS, it is now necessary for the Board to consider and approve the amount requested for
payment in Invoice Number 7;
TR
04/14/25
Item No. 7
NOW THEREFORE: BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE
VERANO TAX INCREMENT REINVESTMENT ZONE:
SECTION 1. The recitals set out above are adopted in their entirety.
SECTION 2. The Board hereby approves for consideration by City Staff, South Star at Verano,
LLC invoice numbered 7, which shall be paid according to the provisions of the Development
Agreement.
PASSED AND APPROVED this 14th day of April, 2025.
APPROVED AS TO FORM:
_____________________________ _________________________________
PRESIDING OFFICER ASSISTANT CITY ATTORNEY
Staff Updates
Adjournment