San Antonio's skyline is on the brink of transformation, with an influx of developers beckoning to the siren call of generous tax breaks, particularly around the burgeoning hotspot known as The Pearl. According to FOX San Antonio, the city is riding a development boom with over $3.3 billion invested in downtown projects, propelled by incentives like the staggering $49 million in property tax breaks granted for Pearl's expansion.
The trend spans beyond San Antonio as cities across the nation dial up their tax incentive game to address the housing crisis, Fort Worth and Columbus recently tightened their policies, while Cincinnati green-lighted tax exemptions for some affordable housing projects with a more laissez-faire approach, the measures ranged from mandatory affordable housing provisions to extensive tax breaks for downtown revitalizations.
Bexar County Precinct 3 Commissioner Grant Moody underscored the strategic nature of these incentives, stating, "Ultimately there's additional jobs, tax revenue and an improved community that come with that, so that's the intent behind tax breaks and tax incentives in this area," which he shared in a statement obtained by FOX San Antonio.
Meanwhile, Sarah Odle of Fort Worth illuminated this balancing act in an interview with Governing stating, “As a city, we can’t force developers to make housing affordable but we have tools, and the name of the game for us is if we’re going to give you incentives, then we want something substantial in return — and that’s housing that is truly affordable,” indeed setting the tone for a new era where cities bargain hard for the community's benefit while dangling the carrot of tax diminutions before developers.
Yet, National Housing Conference's David Dworkin offered a note of caution in his conversation with Governing about tax abatements being a “double-edged sword” where incentives can lead to the displacement of low-income residents if not diligently overseen, and thus cities tread a delicate line between fueling development and protecting their most vulnerable citizens.
