Leon Valley council approves up to $55,000 grant to help Royal Tile redevelop 6600 Bandera Road

The Leon Valley City Council on Feb. 4 approved a business grant not to exceed $55,000 to Royal Tile to help redevelop the vacant building at 6600 Bandera Road, the property formerly known as Pilgrim Cleaners.

The funding will come from a mix of general fund contributions from the Economic and Community Development and Planning and Zoning departments and could include an estimated $8,000 from the city’s Tree Mitigation Fund, depending on whether required plantings fall in the public right of way and meet the fund’s species requirements. Roke Salinas, the city’s economic development director, told the council the grant is intended to accelerate rehabilitation of a building that has been vacant roughly seven years and to prevent further decline of property values.

The nut graf: the council framed the payment as a targeted, time‑limited incentive to keep the building in commercial use while requiring a substantial private investment and compliance conditions.

Under the terms explained by Salinas, Royal Tile must spend at least $300,000 on tangible improvements to the building and site for the full $55,000 contribution to be provided. If the applicant spends less than $300,000, the grant amount will be reduced to a pro rata share equal to 15% of actual eligible spending, with a hard cap of $55,000. The city also will refund or waive permit fees up to $5,000; penalties for working without permits will not be waived and remain subject to the city’s ordinance (first offense $300, second $600, subsequent $1,000), Salinas said.

Salinas described expected eligible exterior work to include painting, new lighting and awnings, landscaping, sealcoating and restriping of the parking lot, LED parking lights and roof repairs. Interior work must bring the building into compliance with applicable building, fire and ADA standards required for a certificate of occupancy. As a condition of the agreement, Salinas said the business must employ at least two full‑time staff on site and remain open for at least 24 months; failure to meet the open‑period requirement will trigger repayment of the grant.

Luis Gonzales, identified as the owner of Royal Tile, told the council Royal Tile has operated at its current San Antonio location since 1990 and plans to use the Leon Valley site as a showroom and limited warehouse for contractors. Gonzales said he intends to keep limited on‑site stock and move additional materials by transfer several times per week.

Salinas said the Economic Development fund balance is approximately $925,000 and the Tree Mitigation Fund balance is approximately $428,000; the fiscal year 2025 economic development budget includes $127,000, with an estimate that $42,000 of the approved grant will be spent in the current fiscal year and the balance in FY2026.

Councilmember Orosco made the motion to approve the item; Councilmember Bradshaw seconded. The mayor called for the vote; the motion carried.

The council packet and Salinas’s presentation note that permit waivers are limited to fees (not to required permits) and that the city will require proper permits for all work and will enforce penalties for any unpermitted work. Salinas said staff recommended approval but placed the final decision with the council.

Ending: Salinas and the owner said work is already underway on tree and roof cleanup at the site; the grant agreement will formalize the city’s contribution and the conditions under which it is paid.