(Seguin) — Some residents in the Navarro ISD have vowed to fight against the city’s plans to have a nearly 300-unit apartment complex built at the corner of State Highway 46 and Cordova Road. A number of people have taken to social media to comment on stories that we have written about the Lily Springs apartment complex. They say that the project will be bad for the Navarro ISD in a number of ways.
Lily Springs would be owned by the city of Seguin, but the project would be funded by private developer, Vaquero Multifamily LLC. Because the city would own the land, the high-end apartment complex would not be taxable, which means other taxing entities, like Navarro ISD and Guadalupe County, would not be able to collect property taxes on the apartments. Several people wrote online that they think the deal is unfair to the Navarro ISD, which could potentially get dozens more students from the complex, but the district would not be able to collect the taxes that are paid by other property owners.
The city would own the $58 million project, because the city used an existing state law to create a Public Facilities Corporation (PFC), which will own the property on the city’s behalf. Vaquero would build the building, get at least 90-percent of the units rented, and then likely look to cash out with a projected large profit after the first few years. The new buyer would then become the city’s new partner, but the city would continue to get paid rent, and it would continue to get a commission any time the complex is sold.
Jodi Koening was among those speaking out this week. She encouraged those opposed to the project to have their voices heard. She says this is not a good deal for the Navarro ISD.
“Look at what our community is needing — schools are needing — infrastructure is needing, and then look at what a PFC is designed to do and how the only ones benefitting are the developers. Not a good deal for a struggling community overrun with development,” said Koenig in a Facebook post.
Cindy Horton agreed, and said that Navarro ISD would get no benefits from the complex.
“All property tax exempt, because the city owns the land. Everyone else pays more because of these deals. More traffic, more infrastructure uses, more repairs, more school needs; all without new revenue,” said Horton.
There’s a PFC built apartment complex in the city of Cibolo, which is located in the Schertz-Cibolo-Universal City ISD. The city of Seguin pointed to that as an example of how this partnership can be beneficial.
A PFC apartment project (The Josephine) is also being built now at the Pearl in San Antonio. City officials say these are all high end developments and they would benefit everyone. But several people online disagreed. They pointed out that Vaquero was denied when it tried to do this same thing in Castle Hills. Those who opposed the project in Castle HIlls again cited traffic concerns and its potential impact on the Northeast ISD in San Antonio.
City officials admit that the Navarro ISD would not be able to collect property taxes, but they say that the law requires that the developer pay the district $7,000 per student, per year for each student that resides in the complex.
Navarro ISD School Board Trustee Clint Scheib also raised concerns about the project still being a financial strain on the district.
“288 units sure equate to alot of added students in Navarro ISD. 100 percent tax exemption? How will this afford for a good education for these added students,” asked Schieb in his Facebook comment.
City officials maintain that they believe this will not only provide much needed housing for middle-class, working families; they they say it will also help to bring other retail and restaurant opportunities to Seguin. They say that potential growth would benefit everyone, including the Navarro ISD. The city council, last week, unanimously approved the deal, which means that Vaquero can now go forward with its plans to secure financing for its joint venture with the city of Seguin. But folks online vowed that they would continue to fight against the project, because they believe it is being done to the detriment of the Navarro ISD.