Complex deal would result in new downtown skyscraper

The Frost Bank Tower in San Antonio, Texas Thursday June 26, 2014. The Frost Bank Tower in San Antonio, Texas Thursday June 26, 2014. Photo: JOHN DAVENPORT, San Antonio Express-News Photo: JOHN DAVENPORT, San Antonio Express-News Image 1 of / 18 Caption Close Complex deal would result in new downtown skyscraper 1 / 18 Back to Gallery

SAN ANTONIO — Mayor Julián Castro and officials from Frost Bank and the Weston Urban development firm unveiled Thursday afternoon a proposal that would, for the first time in a quarter century, bring a new office high-rise to San Antonio's skyline.

At an afternoon press conference, the officials outlined the structure of a proposed public-private partnership that would result in several property exchanges, including the city taking control of the Frost Bank tower at 100 W. Houston St., and the construction of a new “iconic” office tower for the bank. Weston Urban would also develop more than 300 residential units in downtown.

“This would be, without a question, a major turning point for downtown San Antonio,” Castro said in an exclusive interview a day before the announcement. “You can see a very bright future with this investment.”

If the plan comes to fruition, it would be the most significant development in Castro's “Decade of Downtown” — an initiative he's pushed during his five-year tenure to revitalize San Antonio's urban core.

“If anyone still doubts the 'Decade of Downtown' is happening, here you go,” he said. “It is.”

Under the proposal, the city would convey five downtown properties to Weston Urban, Graham Weston's development company, and take ownership of the Frost tower, which is a stone's throw away from City Hall.

The city currently spends more than $3.4 million annually to lease office space in several downtown buildings. It would cancel those leases and consolidate its workforce in the Frost building.

Included in the transaction would be Frost's parking garage, which has more than 700 parking spaces.

Weston Urban would construct a new skyscraper near the Frost tower, on the city block between West Travis Street, Camaron, East Houston Street and North Flores. Frost would be the anchor tenant in the high-rise, consuming some 250,000 of the 400,000 total square feet.

Randy Smith, president of Weston Urban, said that while the skyscraper has yet to be designed, it will be an “iconic new addition to our skyline.”

He and Frost officials pointed to the Frost tower in Austin that has become the state capital's calling card.

The deal, said Frost Bank Chief Financial Officer Phil Green, is the most tangible evidence the bank can give that it is rooted in San Antonio and committed to this city's downtown.

The unsolicited public-private partnership proposal from Frost and Weston Urban is the first the city has accepted since the City Council adopted so-called “P-3” guidelines in 2012. City officials will officially request this week that Weston Urban and Frost submit a more detailed proposal — the next step in the process. Once it's received, the city will open a 60-day public comment period, during which time it will accept and consider competing proposals.

Find the full story at www.expressnews.com or in the Friday edition of the San Antonio Express-News.

jbaugh@express-news.net