San Antonio Proposes $7.5M Incentive for Midtown Project

The proposed infrastructure funding will impact developers and business operators looking to scale operations in the Midtown zone.

Updated on Oct. 27, 2026 in Remote Work

Isometric editorial illustration of a concrete bridge and urban development, representing infrastructure funding for a city redevelopment project. — San Antonio city officials have recommended $7.5 million in public funding for a major infrastructure and retail redevelopment project by McCombs Enterprises. AI Illustration. Upload story photo >

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Should city governments provide tax-funded incentives for private commercial real estate developments in your area?

San Antonio city officials have recommended $7.5 million in public funding to support a massive office and retail redevelopment by McCombs Enterprises. The project at Jones Avenue and Camden Street is set to unfold in phases through 2032.

Why it matters

The proposed incentive addresses the high costs of infrastructure improvements for large-scale real estate projects. It signals a shift in how the city utilizes tax increment zones to catalyze commercial development in prime downtown districts.

McCombs Enterprises is seeking $7.5 million in city funding to offset $19.8 million in public improvement costs for a $277 million project. The development is projected to grow the site's value from $30 million today to $334 million by 2060.

The players

McCombs Enterprises

A diversified investment firm focused on real estate, sports, and energy with a significant footprint in regional commercial development.

CPS Energy

The municipally owned natural gas and electric utility serving San Antonio and surrounding areas.

The details

The developer intends to transform the 5.9-acre site into 500,000 square feet of office, restaurant, and retail space. Public funding is specifically targeted for infrastructure upgrades, including walkways, paving, landscaping, and a pedestrian bridge. The project utilizes the Midtown Tax Increment Reinvestment Zone, which reimburses developers for these costs using incremental property tax revenue generated as the site's value rises over time.

2023: McCombs Enterprises purchased the 5.9-acre property from CPS Energy.
October 2026: City officials recommended the $7.5 million funding package.
2032: The two-phase development project is scheduled for completion.
2060: The Midtown TIRZ mechanism is slated to expire.

Market Landscape

This development follows the established pattern of using the Midtown Tax Increment Reinvestment Zone to incentivize high-density commercial redevelopment on former utility properties. The project represents a significant shift from the site's previous industrial use under CPS Energy.

Commercial property owners should monitor the approval of this funding as a signal for infrastructure support availability in the Midtown zone. Stakeholders should track the council vote to gauge future city appetite for large-scale development incentives.

The takeaway

Large-scale urban redevelopment relies heavily on public-private financing structures that capture future value. Owners should track the Midtown TIRZ board meetings for final project approvals and budget requirements.