Development
BY PARKS KUGLE
On Jan. 20, University Health entered into a $50 million agreement to purchase two medical towers, known as Northwest Medical Tower I and Tower II. This purchase was made in light of the July 29, 2025, acquisition of the Babcock Specialty Hospital, formerly the Christus Santa Rosa Medical Center Campus, according to a news release. Adjacent to the hospital and connected to its second oor via a skybridge, the towers will provide the new hospital with an ideal location for additional clinics and providers, the news release states. University Health purchases $50M medical towers
Shavano Park OKs funding structure for 1604 development
The background
The purchase closed at the end of February, said Shelley Ko er, University Health senior public relations manager. “We are still determining which services will be provided at these two locations, but should have a better sense of what will be located there in the next month or so,” Ko er said.
Pond Hill Road, the 22-acre mixed-use develop- ment will include retail, a hotel, townhomes and a park connected to trailheads. Design elements will include a dog park, tandem pickleball courts and 52 o -street parking spaces. The project’s public infrastructure is estimated to cost $4.5 million to $6 million to construct. The developer, Bitterblue, is responsible for constructing the public road known as Pondpark, a hike-and-bike trail, a recreational area and public utilities. Municipal land amenities will be maintained by property owner associations within the PID. The agreement ensures that public infra- structure is developed in accordance with city standards. Bitterblue will also provide a two-year maintenance bond after the construction of public facilities are complete, Leeth said. Development of the PID’s public infrastructure is estimated to begin in the spring, Leeth said.
Shavano Park City Council approved the creation of three additional public improvement districts, or PID, funds, on Feb. 23. The funds will be used to handle the money for the Shavano Park 1604 Public Improvement
1604
Shavano Park 1604 Public Improvement District
Northwest Tower II is four stories and 77,778 square feet.
POND HILL RD.
KINNAN WAY
District. The gist
PARKS KUGLE COMMUNITY IMPACT
Additionally, University Health already rented space in Tower II for The Allergy and Asthma Clinic. In December 2025, University Health also approved a new lease in Tower II for its Women’s Cardiology Clinic, according to the news release. According to the news release, the seven-story, 123,055-square-foot Northwest Tower I was built in 1986, while the four-story, 77,778-square-foot Northwest Tower II was built in 1986. Totaling a combined 200,833 square feet, the towers received a $5.2 million renovation between 2018 and 2022, including upgrades to the common areas, elevators and HVAC.
Assistant City Manager Curtis Leeth said that as part of the agreement, the Rogers Family formed a new ownership entity, known as Shavano Crest PID LTD, to enter into agreements with the city. The Rogers Family is the current owner of the property. “We’re creating three PID funds: one where the assessments are collected to pay debt, one where bond proceeds sit until they’re used to reimburse public infrastructure, and one that’s only used if there’s no bond, to pay the developer back over time from assessments,” Leeth said. Located at the intersection of Loop 1604 and
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The district will include:
5.3 acres of commercial space
2.9 acres for a hotel
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30-40 townhomes
6 acres of recreational space
SOURCE: CITY OF SHAVANO PARK COMMUNITY IMPACT
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STONE OAK 23026 US Hwy 281 N (210) 497-1322
VINEYARD 1309 N Loop 1604 W (210) 408-8206
LEGACY 2003 N Loop 1604 E (210) 494-8600
DE ZAVALA 5219 De Zavala Rd (210) 561-0900
RECTOR 819 E Rector Dr (210) 340-2244
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