\

hillcountryweekly.com

Thursday, February 4, 2021

BISD board reacts to BPFC partnership

Christina Ryrholm -Hill Country Weekly

BPFC MEETING

Recently the Boerne Public Facility Corporation (BPFC) held a public meeting via zoom to discuss a proposed development, Estraya Boerne, by Waypoint Real Estate Investments.

The BPFC was created in 2017 in order to have a financial tool to “provide the City with the ability to help address a need for housing inventory in Boerne which is both affordable, by state of Texas definition, and is intended to address housing needs for the senior market which is a growing segment of the Boerne population”. This nonprofit entity allows the city to create public-private partnerships.

Estraya Boerne is a planned 288 unit apartment complex proposed to be built in the SoBo (South Boerne) area on 15.5 acres. The property is behind Walmart between Bandera and Herff Roads. To qualify for the BPFC consideration 50%, 144 units, will be calculated to qualify for affordable housing - using $93,000 as the Kendall County Average Median Income (AMI).

One key feature of this partnership of BPFC and Waypoint would be the tax exempt status of the development - no city taxes, no county taxes, no BISD taxes (Boerne Independent School District).

At the BPFC meeting Joe Tidwell, a BISD board member, spoke during public comments to voice his opposition for the project. He concluded with “this does not meet the mandate of affordable housing”.

This turned out to be the first acknowledgement that the school board was unaware, as were the county commissioners, of the project in general and, specifically, the potential loss of revenue due to the terms of the development agreement.

At the meeting Jeff Thompson, assistant secretary to BPFC, gave a brief history of both the PFC and timeline for the Estraya Boerne project.

Jim Plummer, legal counsel to the BPFC, gave an update of the advantages to the city for being a public partner in the private venture, including $250,000 at closing and the formula for money to be received. He stated that over a seven year time span the advantage for the city could be potentially receiving one point seven million dollars as income versus the possibility of one point two million in tax revenue.

During the course of the discussion amongst the six BPFC members (who are the mayor and five council members - Tim Handren, Ty Wolosin, Nina Woolard, Quinten Scott, Bryce Boddie and Joe Macaluso) it transpired that at least one of the members had questions. Boddie had concerns about the lack of consultation with the school district and wanted for them to have time to weigh in on the subject. Woolard had some legal questions as she felt “uncomfortable” with the lack of transparency of some of the details.

At first Boddie made a motion to deny the BPFC forming a partnership with Waypoint and Woolard seconded it. During the ensuing discussion Macaluso made a secondary motion to table the agenda item to allow Boddie and Woolard time to get the supplemental clarification they needed. That motion passed 4/2 with Handren and Scott the two nay votes.

BISD SCHOOL BOARD MEETING

On Monday, February 1 the BISD Board met for a scheduled budget finance workshop. During the public comments at the beginning of the meeting Mayor Tim Handren and Dr. Ben Stahl spoke. The subject matter for both was the BPFC meeting about the Estraya Boerne development discussed above; one for the development - Handren and one against - Stahl.

Both discussed ‘affordable housing’ but their perspective was from different angles. Handren stated that the target audience was for those individuals earning between $45,000 - $55,000 per year and while Estraya may not be THE answer, it is AN answer.

Stahl said that as an employer of many who should be “potential benefactors” of the project he was bothered by the term “affordable” and that his employees could not afford to rent there (Estraya Boerne) and they would keep commuting.

Superintendent Tommy Price said what the BPFC does “impacts” the BISD. Chief Financial Officer Wes Scott prepared a slide showing the potential loss in tax revenue, nearly $500,000 per year. The board members expressed their take on the proposed partnership between the City of Boerne through the BPFC mechanism and Estraya Boerne/Waypoint Real Estate Investments.

All believe that in spite of being disconcerted by the apparent lack of transparency and not knowing about the project or the fact that it would be tax exempt, they did not want to lose the improving communication and collaboration with the city and the county. All believe that the project is not the answer to affordable housing. All believe that the lack of revenue will be a burden on BISD and current taxpayers.

Next BPFC Meeting is Tonight

The Boerne Public Facility Corporation will hold a zoom meeting tonight, February 4, at five o’clock. The vote could approve the partnership, deny the partnership or result in a 3/3 tie. This would be the same as no action taken.