(Seguin) — The Navarro ISD has officially responded to a plan to build a nearly 300 unit apartment complex at the corner of State Highway 46 and Cordova Road.
NISD Superintendent Luke Morales sent out a press release just before midnight Monday night. The press release represents the views of the Navarro ISD Board of Trustees, and it clearly states the district’s opposition to the project.
The press release is relatively short, but it makes Navarro ISD’s case against the complex.
“The Navarro Independent School District opposes the Lily Springs Development between the City of Seguin and Vaquero Multifamily, LLC. The Development and its formation under Texas Local Government Code Section 303.042(f), will allow for a 75-year 100% property tax exemption to the Development. This property tax exemption will negatively impact the District’s public education funding and ultimately hinder its ability to serve its students and intended educational purpose. The District urges the City of Seguin to prioritize its community, including the District and the students it serves and reconsider its participation in the Development as it will have an overall negative long-lasting impact on the District and community,” wrote the district in its press release.
The Lily Springs apartment complex 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, city officials say 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.
The city would own the $58 million project, because the city is using the state law, referenced by the Navarro ISD, 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. A 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.
Dozens of Navarro ISD residents have spoken out about the project, but this press release marks the first official response from the district since the item appeared and was voted on by the Seguin City Council during its meeting on September 6. The city council unanimously approved the deal at that time, and has been paid $500,000 by the developer as the project moved forward. The resolution approved during the meeting created the necessary partnership for the project and it allowed Vaquero to secure the necessary financing for the project.
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 item is not on tonight’s city council agenda, but a large group of Navarro ISD stakeholders are expected to attend and to speak during the Citizens to be Heard portion of the meeting. It’s not clear if the project could be stopped at this time. The council meets at 5:30 p.m. today at Seguin City Hall.