ICE office lease at Brooks faces legal challenge

A potential leasing violation has stalled the Immigration and Customs Enforcement agency's effort to secure office space in San Antonio.

The issue centers on the WatersEdge office complex at the Brooks development on the city's South Side. ICE sought to lease 75,000 square feet across two buildings. The proposed agreement called for a 15-year term with a total cost of $51 million.

Preston Hollow Community Capital, a Dallas-based firm, attempted to sublease its existing space at WatersEdge to ICE. The company did not notify the Brooks Development Authority before pursuing the deal. Officials at the authority stated that this action violates the terms of their agreement with Preston Hollow.

Legal counsel for the Brooks Development Authority has been authorized to send a formal notice of default to Preston Hollow. This step follows the discovery of the unapproved sublease. The agency had previously faced a pause in its plans for a larger facility on the East Side. Mayor Gina Ortiz Jones announced that construction on that East Side project is on hold pending an environmental review by the Department of Homeland Security.

City leaders are also examining local law enforcement ties to the federal agency. Jones and three members of the City Council plan to review the San Antonio Police Department's cooperation with ICE after the 2026 midterm elections. Democrats won control of the Texas House and key statewide offices in those elections.

Two San Antonio-area lawmakers filed bills on Monday to end state-mandated cooperation with ICE and county sheriffs through 287(g) agreements. State Sen. Jose Menéndez, who introduced one of the measures, said the new legislative session offers a chance to implement meaningful changes for the community.