By Tony Cantú
Contributing Writer

The economic malaise sweeping the nation has touched Alamo Heights, where it might cause a delay in long-planned construction of a new city hall, a councilman said.

With banks averse to lending money in the wake of the sub-prime mortgage crisis, funding for a new municipal complex could be delayed, said City Councilman Bill Kiel.

“Right now, it’s very hard to borrow money,” Kiel said of the severe credit crunch. “That’s going to be one of the issues next spring.”

Kiel made his comments during the Oct. 2 meeting of the Alamo Heights Neighborhood Association, a monthly gathering at staged at the H-E-B Central Market community meeting room. City officials have long talked of upgrading City Hall and the fire department with new digs, a project estimated to cost up to $9 million.

“Nine million dollars is a lot of money,” Kiel conceded. “I choke on it. That’s a lot of money, and it doesn’t make us real happy. But $9 million may not be the figure.”

He explained the sum was arrived at by allowing for inflation and escalating materials costs in updating an estimate for the work last done four or five years ago. But the city should focus on launching the work someday soon in spite of the considerable price tag.

“If we don’t come to some reasonable solutions, we will go through another round of not doing anything,” Kiel said, noting that discussion on new municipal quarters has been going on for decades. Much of the existing complex was built in the first part of the 20th century.

Some residents said city officials should be cautious in their approach if and when new city quarters are built. “We don’t need to build a Taj Mahal,” said Peter Turnbull. “The taxpayers are watching you.”

Despite the reservations, the city is proceeding with preliminary phases for a new municipal complex. Following a request for qualifications issued Oct. 3, city staff is scheduled to recommend an architect to council members at their Oct. 27 meeting, Kiel said. He assured residents at series of public hearings subsequently would be staged to secure input from residents.

Still, the project – especially in light of the soft economy – is still years away. “It may be three years, it may be five years,” Kiel said.

Kiel also worried about the impact foreclosures fueled by a wave of mortgage defaults would have on Alamo Heights, which historically has had a 98 percent property tax collection rate. “What if it’s 95 percent or 92 percent? That’s a signal.”

During his 90-minute talk, the councilman also elicited reaction from residents in disclosing plans for the so-called Henderson homes – a pair of residences the city purchased a few years ago as adjunct space. The houses will be used as temporary housing for firefighters as a new fire department is being built.

But Kiel said the two homes might eventually go back to being used as residences rather than city property once a new complex is built.

“If we turn them back over to residential, the city is going to get its investment back,” he said. With their use as makeshift offices, the houses on Henderson act as something of a neighborhood shield against busy city-related traffic in the neighborhood, including rushing fire trucks, one resident noted.

“I think those homes help protect residents because they act as a buffer,” said Maggie Houston.

Kiel agreed, noting that plans are still being developed regarding the property. The city paid about $300,000 for one of the homes, and another $500,000 for the larger, two-story home next to it, he said in response to a question.

“We haven’t made the decision that we’re not going to use the Henderson homes,” the councilman said.

Kiel’s appearance at the AHNA meeting represented his encore, as he was the first-ever speaker for the group at its launch one year ago. AHNA President John Joseph said his group will invite former speakers for a second presentation after its first full year of community meetings.

Past speakers have included Kiel’s fellow council members, including Alamo Heights Mayor Louis Cooper; City Manager Rebecca Waldman; Fire Department Chief Bill Hagendorf; and director of community development Ann McGlone.

AHNA also manages a Web site comprising community news and topics, a portal that often features a lively – and sometimes heated – exchange of ideas among members messaging each other in a back-and-forth discussion of issues. The Web site is located at www.myalamoheights.com.