Condo developer seeks more tax relief from S.A.

[KevinFromTexas]

http://www.mysanantonio.com/news/loc...f_from_SA.html

Condo developer seeks more tax relief from S.A.

By Greg Jefferson - Express-News

The developer of the 20-story Vidorra condo tower on the near East Side, which landed a package of city incentives in 2005, wants another break.

Park Centre Towers Ltd. will turn to the City Council today for relief from a hit it took to one of its inducements because of construction delays.

Four years ago, the company won a seven-year grant to be paid out annually in the form of property tax rebates of up to $263,120. The grant period started this year with a payment in February.

Encompassing 140 condos and six townhouses, the Vidorra's first phase is finished. So far, the company has sold 75, or 51 percent, of the units, according to city officials. But the condo project had fallen behind schedule, meaning a smaller than anticipated tax bill that resulted in a rebate of only $70,629.

The project's second phase, another tower of condos and townhouses, is in limbo because of weak housing and financial markets, which have hampered planned developments across the region.

[sakyle04]

the boom that came forth as a whimper.

[kornbread]

I was pretty sure that Presidian received some incentives to build. The city had been wanting investment in the east side for a while. I think that this project went forward because they were awarded the grant money that the developers of the Friedrich building were trying to secure, and that is why that project never happened.

While the townhomes look nice and the building is not bad, it just isn't selling. So when the developer said this was the fastest selling building in Texas his used-car roots were showing, I guess.

They probably should have shot for a much smaller scale project like the Friedrich so they could have had a better chance at success, and who knows if that would even have worked; it is, after all, the east side. At least in a high rise it's harder for someone to break in through a window. This will likely get the reputation as another failure.

And for those who wonder why developers choose to build hotel rooms on their small lots instead of condos; think 75 condos sold in 4 years. After hearing that, I want more tax relief as well.

"limbo" is the new "dead"

[adtobias]

maybe he should lower his price to sell those condos

[Schertz1]

Originally Posted by adtobias

maybe he should lower his price to sell those condos

They shouldn't lower the price, but should consider incentives to purchase. If they're distressed, they can always auction them. The Brazos in Austin did last month and they sold for more than the developer anticipated.

[miaht82]

Had this been a suburban project, I would have thought that a 4-7 year time frame would be enough to deem something a failure because in the suburbs, anything that "looks" new is seen as better and that would put this building out of demand and declining in value in a couple of years. However, since it is a DT property, the mid to long-term return on the property will prove itself. We can't just give up because we think a building failed, sometimes the city has to take a hit in an effort ot revitalize DT especially if the city is a major player in the entire process. The truth is that it is more sq. footage commited to housing that increases resident numbers and adds to the ball in an effort to get it rolling.
Timing is one that that you can't time.

[kornbread]

Originally Posted by miaht82

...since it is a DT property, the mid to long-term return on the property will prove itself. We can't just give up because we think a building failed, sometimes the city has to take a hit in an effort ot revitalize DT especially if the city is a major player in the entire process. The truth is that it is more sq. footage commited to housing that increases resident numbers and adds to the ball in an effort to get it rolling.
Timing is one that that you can't time.

I'm not saying this is a failure; just that it now has visibility as a private company receiving tax rebates and people will gripe about their tax dollars even though what they pay is probably miniscule and the money originated as a federal grant. It could possibly prevent the city from going forward with good decisions because of public scrutiny.

I agree that the city has to invest and can take a hit as a result in order to get the ball rolling, but sometimes they need to think more about what's the best way to do this. They always seem to act impulsively instead of having a real plan.