Brooks Development Authority Issues Default Notice to Halt ICE Office Plans

The Brooks Development Authority has issued a formal notice of default to the developer controlling office space at the former Air Force base, a move intended to block U.S. Immigration and Customs Enforcement from opening new facilities there. The authority alleges that a sub-leasing arrangement with the federal government breaches an existing lease agreement with the property's developer, Preston Hollow Community Capital.

This action follows the October revelation of two 15-year leases totaling $51 million for 75,000 square feet of space at WatersEdge II. The federal government plans to use the offices for immigration-related legal operations, including the Office of the Principal Legal Advisor and the Executive Office for Immigration Review. Brooks officials confirmed on Tuesday that the board authorized legal counsel to send the notice to BOZ III-WatersEdge, an entity tied to the Dallas-based developer.

A spokesperson for the Brooks Development Authority stated, "Brooks did not negotiate or approve this sublease, and we oppose the proposed use of the property." The authority argues that the specific use of the building for federal immigration hearings is not permitted under the current agreement with Preston Hollow, though it has not yet detailed which specific lease provisions are being violated. The notice grants the developer 60 days to address the alleged breach before Brooks considers further action.

Preston Hollow has disputed the authority's claims. A company spokesperson said on Tuesday, "We don’t agree with the letter’s contentions, but this action by BDA gives rise to several options and we are considering them." The developer negotiated the agreements directly with the federal government, a process Brooks leadership was not part of, according to internal correspondence.

Emails obtained by the San Antonio Report show that Brooks leadership raised concerns shortly after the leases were announced. On Oct. 8, Mayor Gina Ortiz Jones contacted Brooks President and CEO Leo Gomez to confirm the details of the agreements. Gomez later clarified that the leases covered three of the four floors at WatersEdge II. He noted, "While I frown upon the uses at Brooks, it’s important to clarify that Brooks has not been involved in negotiating or facilitating these leases."

The City Council approved a resolution on Oct. 15 directing officials to explore ways to prevent or delay the leases. This move expanded the city's opposition to ICE presence in San Antonio, which already includes a planned immigration detention facility on the East Side. The notice of default does not immediately stop the federal leases, and the outcome remains uncertain if the dispute is not resolved within the 60-day window.

ICE currently operates two field offices in the San Antonio area. Brooks officials are now waiting for a response from Preston Hollow or the expiration of the 60-day period before determining their next steps in the dispute.