Groundbreaking on a long-planned real estate development on the South Side, an ambitious project dubbed Espada, is scheduled for spring, said the Houston-based developer behind the project.

The Espada project, near the site of a planned Texas A&M campus, could include 1,850 acres containing residential, retail and multifamily uses, said Charlie Turner, an executive with Houston area-based Terramark. The homes will be priced in the $200,000 to $300,000 range.

Turner said Espada could create some $1 billion in added taxable value to the South Side with up to 25,000 inhabitants once it’s built out.

The initial phase of development will require about $70 million worth of financing. The $70 million is only a fraction of the total project cost of some $230 million, Turner said. With Wachovia as its lead bank, the development already has several lenders already committed to the project.

“We have bank finance, lenders, lined up,” Turner said. “They already in place to provide the development financing.”

In the next month or two, Turner also expects to secure city and county approval to create public improvement districts at the site. It would allow developers to issue bonds on land increased in value thanks to planned development. Issuing the bonds would help Terramark to recover costs and pour them back into further construction, Turner said.

The Espada project is off Loop 410 just across U.S. 281 from Mission del Lago Golf Course and Mitchell Lake. It is also near the Toyota plant.

Espada marks Terramark’s first entry into San Antonio’s residential market.

The Espada project began in 2004, when Terramark announced it would acquire 3,000 acres around Pleasanton Road south of Loop 410. Terramark’s plan was to donate about 600 acres to Texas A&M University for a South Side campus.

In February, Texas A&M regents rejected Terramark’s bid and voted to negotiated with Triple L Management and the city to acquire a 550 acre site sandwiched between Loop 410 and the Toyota plant.

Triple L Management, made up of investors from Nevada, also plans to build Verano at City South. Verano, just north of the Toyota plant, will be a housing, retail and entertainment development.

Texas A&M and city officials have said Triple L Management’s bid won out because it saved the city some $15 million.

From far disappointed, Turner said the yearlong delay as he waited for Texas A&M’s decision has worked in his favor. A spike in mortgage defaults has left more homes on the market than there are buyers.

“In hindsight, it was good timing because of the market,” Turner said. “I’d rather have houses in the ground that I can sell instead of having them in the ground and not being able to sell them.”

Espada will start off modestly with some 200 lots being built at first. Eventually it could include some 4,500 residential units and another 1,000 multifamily units.

Terramark has already spent some $20 million at the site for land acquisition and another $10 million landscaping.

“We got involved with the South Side Initiative Plan we were invited to participate in by former Mayor Ed Garza,” Turner said. “Last Friday, we bought the final one-tract tract we’ve been trying to buy.”

Major sellers included the Uresti family of the South Side and BexarMet.

“The South Side has its challenges too,” Turner said. ”We have a lot of areas that need serious cleanup. And we’ll be helping the Southside Independent School District in providing school sites, with infrastructure for water and sewer they can build a school on.”