McCombs Enterprises Sought Infrastructure Funds for River Site
The firm proposed a $300 million development and requested $22 million in tax subsidies for San Antonio utility infrastructure.
Updated on Sept. 23, 2026 in Utilities
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McCombs Enterprises has requested $22 million in funding from the Midtown Tax Increment Reinvestment Zone to support a $300 million mixed-use project along the San Antonio River. The developer plans to fund infrastructure costs for the 5.9-acre site through the issuance of tax-exempt bonds.
Why it matters
The developer seeks to offset infrastructure costs to finalize a major retail, office, and residential project, highlighting how tax-increment financing models shape urban development. The outcome will test the city's commitment to subsidizing private development as a mechanism for long-term tax base expansion.
McCombs Enterprises purchased the 5.9-acre site for $29.5 million, with plans for 390 apartments and retail space. The project is projected to generate $159.8 million in new sales tax revenue by 2060, while the Midtown zone expects to fund $500 million in new projects overall.
The players
McCombs Enterprises
A private investment and real estate development firm managing diversified holdings in San Antonio.
CPS Energy
A municipally-owned utility provider that acts as a major landowner and infrastructure stakeholder in the city.
San Antonio City Council
The local governing body responsible for municipal zoning, project approvals, and tax incentive management.
The details
The developer intends to use the Midtown Tax Increment Reinvestment Zone to capture rising tax revenue from the site to reimburse the $22 million infrastructure cost. By creating a management district and issuing tax-exempt bonds, the firm shifts the upfront capital burden of utilities and site preparation into a long-term debt instrument repaid through future property value increases. The site currently serves as the subject of demolition efforts on empty buildings near Jones Avenue and Camden Street.
Timeline
2023: McCombs Enterprises purchased the 5.9-acre site from CPS Energy.
August 2026: City Council appointed five management district board members.
September 2026: The company presented project renderings to the City Council.
2030: The first phase of the development could be ready for lease.
2060: The Midtown reinvestment zone is set to expire.
Market Landscape
This proposal follows the standard structure of Tax Increment Reinvestment Zone legislation, which allows municipalities to pledge future tax growth to incentivize redevelopment. The plan reflects a broader trend of utilizing special assessment districts to manage the high costs of urban infrastructure.
Operators should monitor the approval of the management district, as it signals the city's appetite for subsidizing private infrastructure via tax-exempt bonds. If approved, the project could alter the local competitive landscape for retail and multifamily housing near the Pearl.
The takeaway
Large-scale urban development often relies on capturing incremental tax gains to make infrastructure costs pencil out. Owners should watch the City Council’s upcoming fiscal votes to see if this project sets a new precedent for private-public cost sharing in the district.
Further reading
For additional context on how local infrastructure mandates influence development, read more in our Utilities section.
Source note: This article includes information reported by San Antonio Express-News.
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Should the city use public tax zones to subsidize private real estate development projects?
