Undeveloped commercial property is at a minimum in Helotes. While the city has experienced significant growth and is home to various businesses, many residents still find themselves driving into San Antonio and the surrounding Hill Country area for other dining, shopping, and entertainment experiences. Two of the largest tracts of undeveloped vacant land in the city, owned by former Helotes resident Myfe Moore since 2008, have caught the attention of the Helotes Economic Development Corporation (HEDC), developers, and residents who envision an area that complements Old Town Helotes and brings much-needed businesses and services into the community.
Based on the property owner’s six uses on the “For Sale” signs in front of the 10.87-acre and 8.76-acre tracts located on Bandera Road and below Helotes Park Estates, Helotes News conducted an online poll asking readers for their preferences. The readers who responded to the poll revealed mixed opinions regarding the use of these properties:
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- 42.31% – Assisted Living
- 34.62% – Retail Businesses
- 15.38% – RV Park
- 3.85% – Funeral Home
- 3.85% – School
- 0% – Daycare
(Results as of 2024 04 04 3:45PM CST)
The poll was also shared on the Helotes News Facebook page, which generated additional ideas for the undeveloped tracts that would bring the community together, such as parks and walking trails, a community swimming pool, and a sports complex. Respondents also suggested boutique-style retail shops, fine dining or small “date night” restaurants, and more music venues.
Property Zoning and History
In 1981, the City of Helotes was incorporated, and its leaders developed zoning classifications to create a balance between residential and commercial development. The two tracts, identified respectively as BCAD Property ID Nos. 242130 and 242100, were zoned General Business District (B-3), which is a zoning district composed of land and structures used for area retail and wholesale sales and limited repair/fix-it operations, according to the Helotes Municipal Code of Ordinances. There are 170 uses for B-3 commercial property, 31 of which would require approval from the Helotes City Council.
To help attract commercial developers to the two tracts, the City of Helotes and HEDC funded the installation of water and sewer utilities along the frontage road. The city issued a certificate of obligation, similar to a bond, and the HEDC contributed $350,000 toward debt service, design, and engineering for the project. If these tracts are developed by 2029, the city will be eligible to recoup a combination of water and sewer impact fees of approximately $2.6 million.
In 2021, the HEDC, which is funded by a half-cent sales tax, presented an offer to Moore for the 8.76-acre tract. The HEDC envisioned a lifestyle center to complement Old Town Helotes. It would feature several restaurants fronting Bandera Road, retail and office buildings toward the back of the property, and a community park.
Since the HEDC is legally restricted from paying more than the appraised value for a property, its offer was based on an independent appraisal of the tract. Moore rejected the HEDC’s offer of $1.45 million because it fell below her asking price at that time of $1.825 million.
In 2022, Moore received an offer for the two tracts from a multi-family housing developer, MNO Partners. The developer submitted a Planned Unit Development (PUD) application to the city for a mixed-use residential and commercial development, Trailhead at Helotes. The project required approval from the Helotes City Council to change the properties’ zoning classification from B-3 for commercial development to a PUD. This special zoning designation allows for mixed-use development. The Trailhead at Helotes included 15 acres for 220 one-, two-, and three-bedroom residential rental units and six acres for commercial businesses.
On November 14, 2023, in a four-to-one vote, the Helotes Planning & Zoning Commission sent its recommendation to deny the PUD application from MNO Partners to the Helotes City Council. The following month, the city council voted unanimously to deny the PUD application. It ended a lengthy process that included four public hearings and generated significant opposition to the potential zoning change. Several Helotes residents stressed the need for the properties to remain zoned for commercial businesses to help ensure the city’s ability to attract new businesses and services currently unavailable in Helotes.
Challenges to Development
According to HEDC Executive Director Glenn Goolsby, the two tracts’ location presents some challenges. “The traffic counts drop significantly at this location compared to the area where most of our commercial and retail businesses are located,” said Goolsby. The average daily traffic volumes near the intersection of Hausman Road and State Highway 16 (Bandera Road) averages 43,000 vehicles per day compared to 25,000 vehicles per day where these properties are located.
Combining the two tracts for one large commercial development also presents a problem, notes Goolsby. “There’s a utility easement in between the two properties that can’t have anything built on top of it. There’s a possibility that AT&T would require a developer to relocate the lines across Bandera Road to tie into Old Town Helotes,” he added.
Probability of a Future HEDC Offer
Goolsby said it’s doubtful the HEDC will make an offer on one of the tracts now. The 10.87-acre tract is listed at $2.39 million, and the 8.76-acre tract is listed at $2.085 million. If, in the future, the HEDC decides to move forward with an appraised value offer for one of the tracts, it will seek community input through a public hearing concerning the development of the tract.