Esperanza: Boon or Boondoggle?

The Kendall County Economic Development Corporation (KCEDC) and representatives of developer Marlin Atlantis have presented information supporting the proposed 2400 home Esperanza development East of Boerne on Hwy 46.  The purpose of this guest editorial is to provide a more complete picture of this development’s true impacts.

How to Respond?

A development agreement is a negotiation between the City Council and the developer.  This negotiation is still in the works, and now is the time for you to voice your opinions on this matter. We encourage you to share your thoughts with your elected officials and encourage your neighbors to do so. Councilpersons Rob Zeigler (rziegler@gvtc.com) and Judy Edmondson: jedmondson@ci.boerne.tx.us have been appointed to represent City Council on the negotiating team with the Esperanza developers. 

KCEDC has stated it supports the Esperanza development because KCEDC supports “managed growth” over “boom or bust.”  Implying that these are the only two alternatives – Esperanza (representing managed growth) or ‘boom/bust’ – is an absurd notion.  Boerne already has enough property slated for development to grow from a population of 10,000 to 17,000 by 2017.  With Esperanza’s 2,480 homes, the total reaches 24,000 (more than doubling our current population). Clearly, Esperanza is not required for predictable healthy growth in Boerne.

Why would Esperanza’s population boom be a problem?

Simply put, it would create a burden on taxpayers and a greater strain on infrastructure.

Does Esperanza match the City of Boerne Master Plan?

Esperanza’s developer and the KCEDC assert that this development fits Boerne’s Master Plan. In reality, the Master Plan recommends the development of a proactive and strategic annexation policy and speaks unfavorably of creating special districts such as a MUD: “MUD developments directly impact nearby municipalities through the large increase in residential growth... the nearby communities have no influence over the type of development within the MUD or what environmental considerations developers will undertakeThis is counter to the vision and goals of the Boerne Master Plan Update.  As a result, the City of Boerne should discourage the existence of MUDs within their ETJ boundaries.”   

Esperanza is marketed to be developed through a Water Control and Improvement District (WCID).   In practical terms, a MUD and WCID are nearly identical, but there are distinctions. A MUD can become a municipality with all the powers that municipalities have. They can provide water and sewer service, as well as their own police, fire, EMS, and garbage collection service.  A WCID is generally concerned only with the furnishing and disposing of water.

The bill allowing for the creation of Kendall County WCID No. 2 passed in the last legislature.  WCIDs have been criticized as giving governmental powers to private developers.  WCID #2 will have the power to issue bonds and the power of eminent domain both in and outside the district, all without accountability to Boerne and Kendall County taxpayers and voters.  A handful of voters will ultimately approve this district and thus the taxes that will affect thousands.  more on Special Districts...

Is Esperanza ‘cost neutral’?

Kendall County’s tax base is heavily skewed towards residential (over 70%).  Studies indicate that local taxpayers must pay $1.15 to $1.50 in services provided for each dollar collected on residential property.  By contrast, commercial properties cost taxpayers between 35 to 65 cents and agricultural 30 to 50 cents for every dollar collected.  Therefore, the property tax burden on homeowners could be relieved if an appropriate ratio of residential, commercial and agricultural land were to be achieved.  Esperanza does little to achieve a better ratio.  Only 30 acres of Esperanza will be commercial, which is predicted to create 126 service level jobs (paying an average of $22,000/year).  By contrast, residential  will add 7,000 residents.  The low wages of these created jobs, plus the greater than average income earned by Kendall county residents will only serve to maintain Boerne as a ‘bedroom community’ for San Antonio.  And the additional cost of services for those 7000 residents in excess of taxes collected from the development will be borne by all taxpayers. more...

What about Esperanza’s ‘gift’ of 30 acres for schools? 

The KCEDC study projected BISD could collect over $80 million from Esperanza over the 10-year period the development is to be built.  The actual cost to BISD taxpayers is estimated at over $210 million when enrollment projections, construction figures from the last bond issue and data from the TEA website to determine BISD per pupil expenditures are considered.  The net cost to BISD taxpayers - over $130 million. Additionally, there is a real risk that rapid growth and larger enrollments necessitated at district campuses will result in decreased overall educational quality.  With the anticipated growth, BISD administration has predicted that Esperanza students will need a new elementary school, 40% of a middle school and 25% of a high school.  It has also been suggested that the capacity at the new high school will need to be increased to 2100, making the enrollment there close to that originally proposed by the one-high school bond proposal in 2003-04.  It was that proposal which elicited widespread community debate and opposition to such a large campus.  more...

What Impact Will Esperanza Have on Public Safety?

Numbers provided by the Kendall County Sheriff’s Department indicate Esperanza would require at least 4 additional officers and two patrol cars.  Even if these services are contracted by the developer of Esperanza, it is unlikely all costs can or will be recovered due to the continuous increases in salaries, benefits, and operating maintenance costs.  According to the Boerne Police Department projections, if the development is annexed into the City, with commercial build out, the need would be 8 officers and 4 cars. more...

What Impact Will Esperanza Have on Fire and EMS Services?

Currently most of the fire departments in Kendall County are volunteer based.  As the rate of County population growth increases, it will be more challenging to recruit and train volunteers.  A Fire District or other tax-funded structure will ultimately be required.  EMS and 9-1-1 services, available to all county residents, will similarly need additional staff and equipment.  This is another area where Esperanza's growth will drive up infrastructure costs. more..

What Impact Will Esperanza Have on Mobility?

The impacts from Esperanza’s additional traffic will be felt on every roadway in every sector of the City.  Current roads will be overwhelmed by traffic from this development. According to the Transportation Planning Citizen’s Committee (TPCC) report, SH 46 remains congested at 82% capacity in this area, even with the addition of all proposed road projects.  For this population density to not overwhelm transportation corridors in Boerne, a fairly self-sustained commercial center near the development would be necessary. more..

Summary:

The KCEDC report projecting the economic impact of the Esperanza Development is similar to a company trying to sell its shares by claiming that it had $1 million in receipts while failing to disclose that it had $2 million in expenses. Claims that the Esperanza development will be “cost neutral” are attractive but misleading.

The predictable increases in our tax burden have not been adequately addressed and call into question the KCEDC’s strong support of this development. Boerne Together has supported a balanced tax base before there was an KCEDC: “Boerne Together supports balanced residential and commercial growth in the City of Boerne to enable a sustainable city economy.” We still favor this, and support the original goal of the KCEDC: “to attract new clean businesses which do not create pollution or use up our natural resources, but which will share some of our tax burden.”

How to Respond?

A development agreement is a negotiation between the City Council and the developer.  This negotiation is still in the works, and now is the time for you to voice your opinions on this matter. We encourage you to share your thoughts with your elected officials and encourage your neighbors to do so. Councilpersons Rob Zeigler (rziegler@gvtc.com) and Judy Edmonson: jedmondson@ci.boerne.tx.us have been appointed to represent City Council on the negotiating team with the Esperanza developers.