Committee reviews updated SAEDC investment guidelines, work plan to steer city real estate and development projects

Thomas Davis, an economic development manager in the city—s Community Vitality team, briefed the Economic and Workforce Development Committee on updates to the San Antonio Economic Development Corporation—s (SAEDC) investment guidelines and a staff work plan intended to move the SAEDC toward place-based real estate and revitalization projects.

Davis said the SAEDC was created in 2010 as a Type B nonprofit corporation to "promote, assist, and enhance economic development activities" and that the board historically focused on early-stage biotech and technology investments. He told the committee the EDC had made 12 investments since about 2012 and currently had four active agreements. He said 2023 amendments to the EDC bylaws and a more recent update to the investment guidelines expand the EDC—s role to include real estate and public-private place-based projects while maintaining capacity to invest in startups.

The presentation tied the changes to the city—s October 2022 economic development strategic framework, which the presenter said recommended using the EDC as "a hub to drive place-based initiatives" and to repurpose the EDC to lead public-private projects. Davis said the updated guidelines formalize due diligence and monitoring requirements that were previously left to individual project contracts, add criteria for real estate projects, and preserve flexibility for startup investments.

The staff work plan Davis described directs the EDC to prioritize equitable real estate development aligned with several filters: city-owned properties within revived SA program corridors, sites inside approved subarea plans, high-visibility corridors and transit-oriented development districts. He said staff are conducting property identification and due diligence now with a goal of returning property recommendations to the EDC board in the third quarter of fiscal year 2025. Davis said staff expect to issue a request for expression of interest (RFEI) and, after evaluating proposals, identify developers and community partners and move toward project implementation next fiscal year.

Council members asked about compliance and accountability. Davis said the updated guidelines include minimum monitoring and compliance criteria and that staff supporting the EDC would negotiate provisions to protect the city if projects do not proceed as promised. He also told the committee the SAEDC has been used to administer programs such as capacity-building and bonding assistance and that the corporation—s tax-exempt status and reduced public-notice/bidding requirements give it flexibility in structuring deals.

Committee members raised concerns about board composition and geographic representation. A council member said the current EDC board membership—s mix of the mayor, city manager, committee chairs and three at-large community members did not provide sufficient representation for the city—s southern sectors and requested maps showing city-owned properties and corridor priorities before supporting transfers of property authority. Another member asked whether agreements include clawbacks or other measures to prevent redeveloped properties from becoming vacant or a nuisance; staff replied that the new compliance language is intended to address those risks.

The committee also heard that the SAEDC—s budget for the described work is approximately $870,000. Staff emphasized the SAEDC is a relatively small tool among many local economic development programs and described the approach as experimental and intended to be returned to the committee for continued input and assessment.

Votes at a glance: The committee voted unanimously at the start of the meeting to approve the minutes from its Nov. 5, 2024 meeting. No formal motions or votes on the SAEDC guidelines or work plan were recorded in the committee transcript; staff said the EDC board had already approved the guideline updates earlier this month.

Davis concluded by saying staff will continue property due diligence, stakeholder engagement and formal proposal development. Committee members asked staff to follow up with additional material, including maps of city-owned parcels under consideration and details on board representation and monitoring clauses, before recommendations are advanced to the full council or the EDC board.