The Mesquite Online News - Texas A&M University-San Antonio

Verano, VTLM dispute settled through mediation

Horses graze on land surrounding Texas A&M-San Antonio's Main Campus Building Tuesday. Verano Land Group plans to sell the land, but potential buyers have not been identified. The land sale will effect university growth and development. Photo by Nayeli Gomez
Horses graze on land surrounding Texas A&M-San Antonio’s Main Campus Building Tuesday. Verano Land Group plans to sell the land, but potential buyers have not been identified. The land sale will effect university growth and development. Photo by Nayeli Gomez

By Jason B. Hogan

A bankruptcy judge organized a deal between Verano Land Group and VTLM Texas LP Feb. 24, settling a dispute over ownership of the 1,825-acre property around Texas A&M-San Antonio’s Main Campus.

Multiple university officials said they do not know how the settlement will affect university growth and development. The university’s masterplan, now under revision, hinged on a private-public relationship between Verano and the university.

Kenneth Mitts, vice president for finance and administration, said he knows only the information published in a Feb. 24 San Antonio Express-News article describing the agreement.

He said he knows Verano wants to sell the land, which surrounds A&M-San Antonio’s Main Campus off Interstate 410 and Zarzamora Street, but does not know when that will take place.

Mitts said Verano’s idea is to sell the land as a whole, but he can not imagine they would oppose selling the land to multiple partners.

Mediation between Verano Land Group and VTLM, a group who held former ties with Verano’s ownership group, began Sept. 16.

Former City Attorney Michael Bernard and two former judges Michael P. Pedan and Victor H. Negón led efforts to settle a contract dispute between the two groups.

Both parties attempted to forego possible litigation matters and keep the ball rolling on Southside development at A&M-San Antonio.

Verano planned to build student housing units, a 75,000 square foot building and potentially 100 townhomes surrounding the campus’ 2,500-acres.

Soon after mediation began, Verano ownership announced its intention to sell the property in November, supposedly, after continued stagnation with the project. Plans for future deals or development on Verano’s part have remained idle since.

 The mediation outcome primarily centered on ownership of a TIRZ agreement, or tax investment  reimbursement zoning rights, with the city of San Antonio. The agreement offers up to a $250 million reimbursement to the land developer for project completion.

Verano initially filed a lawsuit against VTLM in the state of Nevada, home to Verano Land Group. But, in February, a case opened in Bexar County which also named VTLM in the suit, Matthew Wymer, VTLM attorney, said.

Actual mediation ended some time ago, Wymer said. But the court formally approved the settlement agreement between Verano and VTLM Feb. 24.

VTLM has agreed to transfer its ownership of the TIRZ to the project developer.

But, as of yet, Verano has not found a developer to sell the land to.

Once Verano finds a suitor to purchase the land area, VTLM can transfer ownership of the TIRZ agreement to the new developer, instead of the TIRZ changing hands more than once.

So, now that the bankruptcy court has approved the settlement, Verano and VTLM can move on to the next stage.

Next, the City Council must approve the TIRZ transference, deputy city attorney Veronica Zertuche said.

Zertuche said Verano hired a real estate broker that will shop the property around.

Verano CEO Tim Bartlett was not available prior to publication to confirm his group’s plans for land sale through Jones Lang LaSalle, a commercial real estate brokerage firm, who handles Verano’ assets, as stated in the Express-News article.

But, once that sale does takes place, Zertuche said “we will see action by the city council to transfer it to the new group.”

She estimates two months before the TIRZ transfer will go before City Council.

 

About the Author

Jason Hogan
Jason Hogan
Jason B. Hogan is the Copy Editor for The Mesquite. As a communications major, he also reports on campus development and governance. Jason is an Iraq veteran and served four years in the U.S. Army from 2000 to 2004. Jason graduated from East Central High School and received an A.A. in journalism from San Antonio College in December 2012. He served on The Ranger, an award-winning community college newspaper, where he held various titles over more than four years including editor. He is currently interning at KROV, San Antonio Community Radio. He plans on pursuing a career in print and broadcast journalism.

Join the Conversation

© 2020 Jaguar Student Media | Texas A&M University-San Antonio. All Rights Reserved. All Rights Reserved.
San Antonio Website Design & Development - Backyard Studios
Join Our Newsletter

Get the Mesquite News delivered straight to you.