San Marcos Mercury | Local News from San Marcos and Hays County, Texas

COVER: Bearden Management Inc.’s plans 162,000 square feet of “flex” warehouse space on Clovis Barker Drive. Construction must start by March under an economic development incentive agreement approved on Tuesday by the San Marcos City Council.


by BRAD ROLLINS

More then doubling its warehouse capacity in the heavy commercial area along Clovis Barker Drive, Houston-based Bearden Management Inc. says it will begin construction by March on two shell buildings totaling 162,000 square feet.

The buildings — one of them planned for 94,800 square feet and the other 67,670 square feet — will fill out the vacant portion of 27.9 acres owned by a Bearden holding company, Clovis Barker Business Park LP. The new “spec” buildings are adjacent to two similar facilities completed in 2009 with a combined 143,144 square feet of floor space.

Greater San Marcos Partnership officials say lack of easily customizable general industrial space has hampered efforts to attract re-locating manufacturing and distribution companies, the mean and median wages of which are nearly always higher than those of San Marcos’ plentiful retail jobs.

“It’s a big issue. Flex space is exactly what we need [and] there’s no doubt this will make San Marcos more competitive,” Mike Kamerlander, the partnership’s vice president for business attraction, told the San Marcos City Council on Tuesday.

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» How did the city fare under a 2008 economic incentive agreement with the same developer?
» Download Clovis Barker Business Park LP’s appraisal district records and history.
»
 Download the full economic development incentive agreement approved by council last night.

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The council voted unanimously to approve an agreement with Bearden under which the city will cover part of the company’s city property tax bill for three years on increased appraisals resulting from the construction. The deal expires if the either or both of the two buildings are leased before the end of the three-year agreement.

For example, if the new buildings are appraised at $5 million, the increased property value would add $26,500 to Bearden’s property tax bill, assuming the tax rate remains the same at a little more than 53 cents per $100 in property value. The city would give Bearden $26,500 (100 percent) in the first year after the buildings are completed; $19,875 (75 percent) in the second year; and $13,250 (50 percent) in the third year.

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2 thoughts on “Partnership hopes shell buildings help draw employers

  1. So Bearden is going to risk it all for a 1% incentive? Color me skeptical. Maybe I need to have it explained to me.

  2. SMsince95,

    Just to be clear — The incentive agreement does not specify how much Bearden is expected to spend on these next two buildings.

    The $5 million appraisal is a hypothetical number I plugged in to be able to illustrate how the grants would work using our (non-hypothetical) current tax rates.

    I chose $5 million because it was easy to work with and because the existing buildings on the same property are appraised at $5.2 million by Hays CAD so it seemed like a reasonable jumping off place.

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