O
xbow Development Group is moving forward with a $129 million apartment project in San Antonio's Pearl District, receiving approval from Bexar County commissioners to negotiate tax abatements. The developer plans to build 275 market-rate apartments at two sites: 200 units on East Josephine Street and 75 units on East Elmira Street. This is part of Oxbow's strategy to expand the Pearl district across the San Antonio River, with a total of 700 apartments, a hotel, office space, retail, and restaurants planned.

    The tax abatement proposal was considered in the same meeting where commissioners discussed the need for more affordable housing. A consultant had previously recommended that the city not give subsidies to market-rate or luxury residential projects, as they are not necessary to make those developments profitable. Oxbow is asking for a 40% reduction in county taxes for up to 10 years to offset rising costs and financing challenges.

    The project will require $10 million in infrastructure enhancements, including two bridges linking Pearl to Tobin Hill and street upgrades. The Midtown Tax Increment Reinvestment Zone will cover most of this cost, allocating $6.8 million. Oxbow's nearby properties have achieved high occupancy rates, with the area already experiencing a high demand for housing.

    Commissioner Justin Rodriguez suggested that tax incentives would be better allocated to affordable housing in the future, stating "We probably don't need to incentivize market-rate." The Pearl district has generated significant property taxes, including $1.2 million for Bexar County annually.