(Seguin) — A massive new shopping center in Seguin recently took another step toward becoming a reality. The City of Seguin is working with NewQuest, the development company behind the Creekside project in neighboring New Braunfels. The company is now developing the Seguin Town Center along the Interstate 10 frontage road just west of State Highway 46.
The city has established a TIRZ—a Tax Increment Reinvestment Zone—to help move the project forward. TIRZ No. 3 covers the Town Center project and allows the city to reinvest a portion of the increased property taxes from that area to make improvements within the zone. It’s a way to spur new investments and finance redevelopment costs without raising the overall tax rate. Revenue collected from the zone above its baseline value is used for improvement projects within the designated area.
The city council last week approved the project and financing plan for the mixed-use development that will become the Seguin Town Center.
Seguin Economic Development Director Josh Schneuker says approval by the council and the TIRZ No. 3 Board of Directors was the next step in the process.
“We’ve created the TIRZ. We’ve gotten the county on board for participation. That will be handled through an interlocal agreement. What we have tonight is a resolution that will approve the project and financing plan for TIRZ No. 3, which is the Tax Increment Reinvestment Zone that will cover the 544 acres of the future New Quest development off of I-10, just to the west of Highway 46,” said Schneuker.
The TIRZ establishes the boundaries for the zone, but the city has also created a TIF—a Tax Increment Financing mechanism. Consultant David Pettit, who is working with the city on this process, says the TIF is the financing method used to fund projects within the zone.
“You’ve gone through the process of creating the TIF. The county agreed to participate in the TIF. This is an exciting time in Seguin. This step is basically the (TIRZ) board members—the council along with (County) Commissioner (Drew Engelke)—making a recommendation of the final project and financing plan to the city council for approval by ordinance. As you know, it’s 544 acres. It’s a project that’s been talked about for a long time. The goal is to encourage private development that will yield additional tax revenues to all taxing jurisdictions. That’s why we’re here. The base is going to be January 1 of 2025, and this is a 30-year term,” said Pettit.
Pettit says the proposed project represents a major retail development for the city and county and that additional uses are also expected to be added to the development.
“We have about four million square feet of potential development, everything from retail to industrial. We have some unique hotel developments. So, you’re looking at a total of about $726 million worth of taxable value. That’s not what the developer is spending, but that’s what we come up with the taxable value comp. As you know, what the appraisal district sends you for the value of your property is not what you actually would buy your property for most of the time,” said Pettit.
Pettit says NewQuest has big plans for the Town Center project, and development of the retail space continues to move forward.
“I really kind of like to look at this in three different areas. One is the retail, which is very well baked. The industrial, a lot of good potential customers coming in there. And then also this entertainment complex that’s kind of coming to light,” said Pettit.
TIRZ and TIF may not be familiar terms to the public, but Pettit says they are common tools for projects like this and will allow the Town Center to continue developing.
“Why are we doing this? It’s to generate new revenue to the taxing jurisdiction. We have a total of $760 million generated from all the taxing jurisdictions. With the city’s and the county’s participation in this TIF, we have about $152 million to go towards this TIF, leaving a net benefit of $608 million. I think it’s a pretty good investment and return on investment,” said Pettit.
The deal approved last week sets the parameters going forward and provides flexibility in how the funding can best be used to make the Town Center a reality.
“We don’t know what we don’t know. I like to think of this as a cap. But this basically allows for spending in any one of these categories. So however, the developer comes forward, we’ll be able to structure and be able to spend those dollars. There’s going to be two Mother May I’s. All we’re doing here today is setting the table. There’s no allocation of money. This is just…our plan, and this is what’s going to be eligible within those categories. So, think of this as just the cap, the $152 million,” said Pettit.
The Town Center would be built along the I-10 West access road between State Highway 46 and FM 464. It’s a massive piece of property stretching all the way back to FM 78. Access roads for the Town Center are already in place, which should help ease some of the traffic concerns raised about another new shopping center nearby.
Hobby Lobby and Academy Sports + Outdoors recently opened in the Seguin Crossing Shopping Center along I-10 just east of the SH 123 Bypass. Ongoing road construction in that area has already raised traffic concerns among some residents.
NewQuest first announced plans for the Town Center project 15 years ago. The project was delayed for years, but rapid growth in the Seguin area has now pushed it into high gear. Seguin’s population continues to swell, bringing new opportunities to the community. The city is now ranked as the 29th fastest-growing community in the United States, with a growth rate projected to surpass what New Braunfels saw during its peak period.