By Coleman H.B. No. 3174
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, and duties of the
1-3 Houston Downtown Management District.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. CREATION; LEGISLATIVE DECLARATION. (a) There is
1-6 created and established a special district in Harris County to be
1-7 known as the "Houston Downtown Management District" that is a
1-8 governmental agency, a body politic and corporate, and a political
1-9 subdivision of the state.
1-10 (b) The name of the district may be changed by resolution of
1-11 the board of directors at any time.
1-12 (c) The creation of the district is declared to be essential
1-13 to the accomplishment of the purposes of Article III, Section 52,
1-14 Article XVI, Section 59, and Article III, Section 52-a, of the
1-15 Texas Constitution and to the accomplishment of the other public
1-16 purposes stated in this Act.
1-17 (d) The legislature finds, determines, and declares that the
1-18 creation of the district is necessary to promote, develop,
1-19 encourage, and maintain employment, commerce, transportation,
1-20 housing, tourism, recreation, arts, entertainment, economic
1-21 development, safety, and the public welfare in the downtown Houston
1-22 area of Harris County. It is the legislature's intent that the
1-23 creation of the district and this legislation not be interpreted to
2-1 present level of services to the area included within the district
2-2 or to release the county or the city from the obligations each
2-3 entity has to provide services to that area. The district is
2-4 created to supplement and not supplant the city or county services
2-5 in the area included within the district.
2-6 (e) The legislature finds, determines, and intends that by
2-7 creating the district and in authorizing the City, County and other
2-8 political subdivisions to contract with the district it has
2-9 established a program to accomplish the public purposes set out in
2-10 Article III, Section 52-a, of the Texas Constitution.
2-11 SECTION 2. DEFINITIONS. In this Act:
2-12 (1) "Board" means the board of directors of the
2-13 district.
2-14 (2) "District" means the Houston Downtown Management
2-15 District.
2-16 (3) "City" means the City of Houston, Texas.
2-17 (4) "County" means Harris County, Texas.
2-18 SECTION 3. BOUNDARIES. The District shall include all of
2-19 the territory contained within the following described area:
2-20 705 acres, more or less, in the J. Austin Survey, Abstract 1,
2-21 the J.S. Holman Survey, Abstract 323, the O. Smith Survey, Abstract
2-22 696, and the J. Wells Survey, Abstract 832, Harris County, Texas,
2-23 more particularly described as follows:
2-24 BEGINNING at the intersection of the center line of the
2-25 right-of-way of Commerce Avenue with the center line of the
3-1 right-of-way of Austin Street;
3-2 Thence in a southwesterly direction with the center line of
3-3 center line of the right-of-way of Capitol Avenue;
3-4 Thence in a southeasterly direction with the center line of
3-5 the right-of-way of Capitol Avenue to the intersection with the
3-6 center line of the right-of-way of Chartres Street;
3-7 Thence in a southwesterly direction with the center line of
3-8 the right-of-way of Chartres Street to the intersection with the
3-9 center line of the right-of-way of Clay Avenue;
3-10 Thence in a northwesterly direction with the center line of
3-11 the right-of-way of Clay Avenue to the intersection with the center
3-12 line of the right-of-way of Caroline Street;
3-13 Thence in a southwesterly direction with the center line of
3-14 the right-of-way of Caroline Street to the intersection with the
3-15 center line of the right-of-way of Pierce Avenue;
3-16 Thence in a northwesterly direction with the center line of
3-17 the right-of-way of Pierce Avenue to the intersection with the
3-18 center line of the right-of-way of Bagby Street;
3-19 Thence in a northeasterly direction with the center line of
3-20 the right-of-way of Bagby Street to the intersection with a
3-21 southerly projection of the west line of the right-of-way of Heiner
3-22 Street;
3-23 Thence in a northerly direction with the west line of the
3-24 right-of-way of Heiner Street and southerly and northerly
3-25 projections thereof to the intersection with the center line of the
4-1 right-of-way of W. Dallas Street;
4-2 Thence in a westerly direction with the center line of the
4-3 right-of-way of W. Dallas Street to the intersection with a Street;
4-4 Thence in a northerly direction with the west line of the
4-5 right-of-way of Heiner Street and southerly and northerly
4-6 projections thereof to the intersection with the center line of the
4-7 right-of-way of Allen Parkway;
4-8 Thence in an easterly direction with the center line of the
4-9 right-of-way of Allen Parkway to the intersection with a southerly
4-10 projection of the center line of the right-of-way of Sabine Street;
4-11 Thence in a northerly direction with a southerly projection
4-12 of the center line of the right-of-way of Sabine Street and then
4-13 with the center line of the right-of-way of Sabine Street to the
4-14 intersection with the north right-of-way line of Memorial Drive;
4-15 Thence in an easterly direction with the north right-of-way
4-16 line of Memorial Drive to the intersection with the west
4-17 right-of-way line of Interstate Highway 45;
4-18 Thence in a northeasterly direction with the west
4-19 right-of-way line of Interstate Highway 45 to the intersection with
4-20 the center line of the right-of-way of Franklin Avenue;
4-21 Thence in an easterly direction with the center line of the
4-22 right-of-way of Franklin Avenue to the intersection with a
4-23 southerly projection of the center line of the northbound ramp to
4-24 Interstate Highway 10, a continuation of Louisiana Street;
4-25 Thence in a northerly direction with the center line of the
5-1 right-of-way of the northbound ramp to Interstate Highway 10 and
5-2 the southerly projection thereof, to the intersection with the
5-3 center line of the Southern Pacific Rail Road's "Main Passenger
5-4 Thence in an easterly direction with the center line of the
5-5 Southern Pacific Rail Road's "Main Passenger Line" right-of-way to
5-6 the intersection with the center line of the right-of-way of North
5-7 San Jacinto Street;
5-8 Thence in a southerly direction with the center line of the
5-9 right-of-way of North San Jacinto Street to the intersection with
5-10 the center line of the right-of-way of Commerce Avenue;
5-11 Thence in a southeasterly direction with the center line of
5-12 the right-of-way of Commerce Avenue to The Point of Beginning,
5-13 containing 705 acres, more or less, including, without limitation,
5-14 all air space above and all subsurface below said property.
5-15 SECTION 4. FINDINGS RELATING TO BOUNDARIES. The legislature
5-16 finds that the boundaries and field notes of the District form a
5-17 closure. If a mistake is made in the field notes or in copying the
5-18 field notes in the legislative process, it in no way affects the
5-19 organization, existence, and validity of the District, the right of
5-20 the District to issue any type of bonds or refunding bonds for the
5-21 purposes for which the District is created or to pay the principal
5-22 of and interest on the bonds, or the right of the District to levy
5-23 and collect assessments or taxes, or in any other manner affects
5-24 the legality or operation of the District or its governing body.
5-25 SECTION 5. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) The
6-1 legislature finds that all of the land and other property included
6-2 within the boundaries of the District will be benefited by the
6-3 improvements and services to be provided by the District under
6-4 powers conferred by Article III, Section 52, Article XVI, Section
6-5 other powers granted under this Act, and that the District is
6-6 created to serve a public use and benefit.
6-7 (b) The legislature finds that the creation of the District
6-8 is essential to further the public purposes of the development and
6-9 diversification of the economy of the state, the elimination of
6-10 unemployment and underemployment and the development or expansion
6-11 of transportation and commerce, and is in the public interest. The
6-12 legislature further finds that the District will promote the
6-13 health, safety, and general welfare of residents, employers,
6-14 employees, visitors, consumers in the District, and the general
6-15 public. The District will provide needed funding for the downtown
6-16 Houston area to preserve, maintain, and enhance the economic health
6-17 and vitality of the area as a community and business center. The
6-18 District will further promote the health, safety, welfare, and
6-19 enjoyment of the public by providing pedestrian ways and by
6-20 landscaping and developing certain areas within the District, which
6-21 are necessary for the restoration, preservation, and enhancement of
6-22 scenic and aesthetic beauty. The legislature finds and determines
6-23 that pedestrian ways along or across a street (whether at grade or
6-24 above or below the surface), and street lighting, street
6-25 landscaping, and street art objects are parts of and necessary
7-1 components of a street and shall be deemed to be a street or road
7-2 improvement. The District will not act as the agent or
7-3 instrumentality of any private interest even though many private
7-4 interests will be benefited by the District, as will the general
7-5 public.
7-6 the legislative findings and purposes stated in this Act. The
7-7 District shall have all powers necessary or required for the
7-8 District to be able to accomplish the legislative purposes for
7-9 which the District is created.
7-10 SECTION 6. BOARD OF DIRECTORS. (a) The District is
7-11 governed by a Board of 30 directors who shall serve for staggered
7-12 terms of four years.
7-13 (b) At the time this Act takes effect, the following persons
7-14 shall constitute the initial Board of the District and are
7-15 appointed for the terms prescribed by Subsection (c) of this
7-16 section:
7-17 Pos. No. Name of Director Position Term of Office
7-18 1 Baughn, Charles Director 1996
7-19 2 Ezzell, Patrick Director 1996
7-20 3 Garcia, Cindy Director 1996
7-21 4 Gonzales, Nick Director 1996
7-22 5 Greer, Dennis L. Director 1996
7-23 6 Marshall, Valerie D. Director 1996
7-24 7 Penland, Jr., William E. Director 1996
7-25 8 Menchaca, Peggy Director 1997
8-1 9 Michael, Sharon Director 1997
8-2 10 Ringo, Melanie Director 1997
8-3 11 Sacco, Mark M. Director 1997
8-4 12 Saizan, Paula T. Director 1997
8-5 13 Seigler, James B. Director 1997
8-6 14 Veith, Richard Director 1997
8-7 16 Aleman, Azalea Director 1998
8-8 17 McKenzie, Sherea A. Director 1998
8-9 18 Mene, Tom Director 1998
8-10 19 Pagan, Elsa Director 1998
8-11 20 Smith, James J. Director 1998
8-12 21 Vermillion, C. Richard Director 1998
8-13 22 Warwick, Gary Director 1998
8-14 23 Director 1998
8-15 24 Bradford, Robert Director 1999
8-16 25 Choy, Anthony Director 1999
8-17 26 Hewlett, Patricia C. Director 1999
8-18 27 Marks, Gary L. Director 1999
8-19 28 Otte, Joel B. Director 1999
8-20 29 Schuman, Gary D. Director 1999
8-21 30 Director 1999
8-22 (c) Of the initial directors, the directors appointed for
8-23 positions 1 through 7 shall serve until June 1, 1996, the directors
8-24 appointed for positions 8 through 15 shall serve until June 1,
8-25 1997, the directors appointed for positions 16 through 23 shall
9-1 serve until June 1, 1998, and the directors appointed for positions
9-2 24 through 30 shall serve until June 1, 1999.
9-3 (d) Subsequent directors for full terms shall be appointed
9-4 by the mayor and City council of the City from persons recommended
9-5 by the Board and shall qualify as provided by Subchapter D, Chapter
9-6 375, Local Government Code, as added by S.B. No. 232, Acts of the
9-7 72nd Legislature, Regular Session, 1991. A vacancy on the Board by
9-8 appointing a qualified person for the unexpired term. No person
9-9 may be appointed to the Board if that appointment would result in
9-10 less than two-thirds of the Board members being residents of the
9-11 City.
9-12 (e) The directors of the City Departments of Parks and
9-13 Recreation, Planning and Development, Public Works, and Civic
9-14 Center and the City Chief of Police shall each serve as ex-officio,
9-15 non-voting members of the Board. The General Manager of the
9-16 Metropolitan Transit Authority of Harris County, Texas, shall also
9-17 serve as an ex-officio, non-voting member of the Board. If any of
9-18 these departments are consolidated, renamed, changed, or
9-19 eliminated, the Board may appoint the directors of the
9-20 consolidated, renamed or changed departments as ex-officio,
9-21 non-voting members of the Board or the Board may appoint persons of
9-22 another City department exercising comparable duties in lieu of the
9-23 department eliminated. The Board may also appoint the chairpersons
9-24 of other non-profit corporations actively involved in downtown
9-25 Houston activities to serve as ex-officio, non-voting members of
10-1 the Board.
10-2 (f) The Board is governed by Subchapter D, Chapter 375,
10-3 Local Government Code, to the extent that subchapter does not
10-4 conflict with this Act. Directors may vote on any matter
10-5 authorized by Subchapter D, Chapter 375, Local Government Code;
10-6 however, action may only be taken by the Board if it is approved in
10-7 the manner prescribed by Subchapter D, Chapter 375, Local
10-8 Government Code.
10-9 SECTION 7. GENERAL POWERS. (a) The District shall have all
10-10 general law of this state applicable to districts created under
10-11 Chapter 375, Local Government Code, as added by S.B. No. 232, Acts
10-12 of the 72nd Legislature, Regular Session, 1991. The District shall
10-13 have all of the powers of an industrial development corporation
10-14 created under the provisions of Section 4B of Article 5190.6,
10-15 Vernon's Texas Civil Statutes, and the District is authorized to
10-16 own, operate, acquire, construct, lease, improve, and maintain
10-17 those projects described in Article 5190.6, Section 4B, Vernon's
10-18 Texas Civil Statutes. The District is also authorized to exercise
10-19 the powers of an entity created pursuant to the provisions of
10-20 Chapter 394, Local Government Code, to provide housing or
10-21 residential projects within the District. The District shall have
10-22 the power to levy ad valorem taxes, assessments, or impact fees in
10-23 accordance with provisions of Chapter 375, Local Government Code,
10-24 to provide any improvements and services for any project or
10-25 activity the District is authorized to acquire, construct, improve,
11-1 or provide under this Act. In addition, the Board shall have the
11-2 authority to correct, add to or delete from its assessment roll
11-3 after notice and hearing in the manner required under Section
11-4 375.115. The District shall not have the power to acquire property
11-5 through the exercise of the power of eminent domain. If any
11-6 provision of the referenced laws is in conflict with or
11-7 inconsistent with this Act, this Act prevails. All laws or
11-8 provisions of laws referenced in this Act and subsequent amendments
11-9 to those laws are adopted and incorporated into this Act for all
11-10 purposes and may be used by the District independently of each
11-11 projects under this Act unless a written petition has been filed
11-12 with the Board requesting those improvements or services signed by:
11-13 (1) the owners of a majority of the assessed value of
11-14 real property in the District as determined by the most recent
11-15 certified County property tax rolls; or
11-16 (2) if there are more than 50 persons who own property
11-17 in the District as determined by the most recent certified County
11-18 property tax rolls, by at least 50 persons who own land within the
11-19 District.
11-20 (b) A single family residential property or a residential
11-21 duplex, triplex, quadruplex, or condominium shall not be exempt
11-22 from the imposition of a tax, an impact fee, or an assessment if
11-23 imposed in accordance this Act.
11-24 (c) If the District, in exercising a power conferred by this
11-25 Act, requires a relocation, adjustment, raising, lowering,
12-1 rerouting, or changing the grade of or altering the construction of
12-2 any street, alley, highway, overpass, underpass, road, railroad
12-3 track, bridge, facility or property, electric line, conduit,
12-4 facility or property, telephone or telegraph line, conduit,
12-5 facility or property, gas transmission or distribution pipe,
12-6 pipeline, main, facility or property, water, sanitary sewer or
12-7 storm sewer pipe, pipeline, main, facility or property, cable
12-8 television line, cable, conduit, facility or property, or other
12-9 pipeline or facility or property relating to the pipeline, that
12-10 relocation, adjustment, raising, lowering, rerouting, changing of
12-11 grade, or altering of construction must be accomplished at the sole
12-12 owners of the property or facilities shall be borne by the
12-13 District.
12-14 (d) The District is authorized to adopt a resolution
12-15 authorizing the creation of a nonprofit corporation to aid, assist,
12-16 and act on behalf of the District in the implementation of any
12-17 project or the provision of any services authorized by this Act.
12-18 Without any further authorization or approval, any such corporation
12-19 authorized to be created by the Board shall be created and
12-20 dissolved and its board of directors shall be appointed by the
12-21 Board and shall serve in the manner and for the term and on the
12-22 conditions of the board of a local government corporation created
12-23 pursuant to the provisions of Section 4A of Article 1528l, Vernon's
12-24 Texas Civil Statutes. Any corporation so created shall have the
12-25 powers of and be deemed for all purposes to be a local government
13-1 corporation created pursuant to the provisions of Section 4A of
13-2 Article 1528l and shall have all the powers necessary to implement
13-3 any project and provide any services authorized by this Act.
13-4 (e) The Board shall establish by resolution the number of
13-5 director signatures or the procedure required for all disbursements
13-6 or transfers of the District's money.
13-7 SECTION 8. TORT CLAIMS. The District is a unit of
13-8 government for purposes of Chapter 101, Civil Practice and Remedies
13-9 Code. The operations of the District are essential governmental
13-10 functions for all purposes and not proprietary functions.
13-11 SECTION 9. BONDS AND ASSESSMENTS. (a) The District may
13-12 issue bonds or other obligations payable in whole or in part from
13-13 ad funds of the district, or any combination of those funds, to pay
13-14 for any authorized purpose of the District. Bonds or other
13-15 obligations of the District may be issued in the form of bonds,
13-16 notes, certificates of participation, including other instruments
13-17 evidencing a proportionate interest in payments to be made by the
13-18 District, or other obligations that are issued in the exercise of
13-19 the District's borrowing power and may be issued in bearer or
13-20 registered form or not represented by an instrument but the
13-21 transfer of which is registered on books maintained by or on behalf
13-22 of the District. The Board may levy and collect an assessment
13-23 under Subchapter F, Chapter 375, Local Government Code, for any
13-24 authorized purpose by this Act or Chapter 375, Local Government
13-25 Code.
14-1 (b) The District must obtain the approval of the City for
14-2 bond issues for an improvement project and the plans and
14-3 specifications of an improvement project financed by the bond issue
14-4 before those bonds may be issued. Instead of approval of bonds by
14-5 the City, the District before finally approving a capital
14-6 improvements budget may obtain approval from the City of a capital
14-7 improvements budget for a period not to exceed five years. If the
14-8 District obtains approval of a capital improvements budget, it may
14-9 finance the capital improvements and issue bonds specified in the
14-10 budget without further approval from the City. The District must
14-11 obtain approval from the City of the plans and specifications of
14-12 any improvement project that involves the use of the rights-of-way
14-13 of streets, roads, or highways or the use of City land or any.
14-14 (c) Except as provided above in Paragraph (b), no approval
14-15 of bonds issued by the District is required other than the approval
14-16 of the attorney general as provided by Article 717-8, Vernon's
14-17 Texas Civil Statutes.
14-18 (d) Assessments, reassessments or assessments resulting from
14-19 an addition to or correction of the assessment roll by the
14-20 District, penalties and interest on an assessment or reassessment,
14-21 expenses of collection, and reasonable attorney's fees incurred by
14-22 the District are a first and prior lien against the property
14-23 assessed, are superior to any other lien or claim other than a lien
14-24 or claim for County, school District, or municipal ad valorem
14-25 taxes, and are the personal liability of and charge against the
15-1 owners of the property even if the owners are not named in the
15-2 assessment proceedings. The lien is effective from the date of the
15-3 resolution of the Board levying the assessment until the assessment
15-4 is paid. The Board may enforce the lien in the same manner that
15-5 the Board may enforce an ad valorem tax lien against real property.
15-6 SECTION 10. ELECTIONS. The District shall hold elections as
15-7 provided by Subchapter L, Chapter 375, Local Government Code. The
15-8 District shall also hold an election in the manner provided by that
15-9 subchapter for the purpose of obtaining voter approval for the
15-10 District to levy a maintenance tax or to issue bonds payable from
15-11 ad valorem taxes or assessments. The Board may submit multiple
15-12 purposes in a single proposition at an election.
15-13 SECTION 11. IMPACT FEES. The District may impose an impact
15-14 fee for an authorized purpose as provided by Subchapter G,
15-15 SECTION 12. MAINTENANCE TAX. If authorized at an election
15-16 held in accordance with Section 10 of this Act, the District may
15-17 levy and collect an annual ad valorem tax on taxable property in
15-18 the District for maintenance, operation, and upkeep of the District
15-19 and the improvements constructed or acquired by the District and
15-20 provision of services to industrial and commercial businesses and
15-21 residents and property owners. The Board shall determine the tax
15-22 rate.
15-23 SECTION 13. DISSOLUTION OF THE DISTRICT. The District may
15-24 be dissolved as provided in Subchapter M of Chapter 375, Local
15-25 Government Code. If the District is dissolved, the District shall
16-1 remain in existence solely for the limited purpose of discharging
16-2 its bonds or other obligations according to their terms.
16-3 SECTION 14. CONTRACTS. (a) To protect the public interest,
16-4 the District may contract with the City or County for the provision
16-5 of law enforcement services by the County or the City on a fee
16-6 basis in the District.
16-7 (b) The City, the County, or any other political
16-8 subdivision, without further authorization, may contract with the
16-9 District to implement a project of the District or to aid and
16-10 assist the District in providing the services authorized under this
16-11 Act. Any such contract may be for such duration and on such terms
16-12 and conditions as the parties determine. The contract may be
16-13 payable from taxes or any other sources of revenues which may be
16-14 available for such purpose. Any such contract may provide that
16-15 taxes or other revenues collected at a project of the District or
16-16 at project purchasing commodities or services at any such project a
16-17 project may be paid or rebated to the District under the terms
16-18 specified in the contract.
16-19 (c) The District may enter into contracts, leases, and
16-20 agreements with and accept or make grants and loans to or from the
16-21 United States and its departments and agencies, the state and its
16-22 agencies, counties, municipalities, and political subdivisions,
16-23 public or private corporations, including a nonprofit corporation
16-24 created under a resolution of the Board, and other persons and may
16-25 perform all acts necessary for the full exercise of the powers
17-1 vested in it on terms and conditions and for the term the Board may
17-2 determine to be advisable.
17-3 SECTION 15. COMPETITIVE BIDDING. The District shall
17-4 contract for services, improvements, or the purchase of materials,
17-5 machinery, equipment, supplies, or other property in excess of
17-6 $25,000 as provided by Subchapter k of Chapter 375, Local
17-7 Government Code.
17-8 SECTION 16. REINVESTMENT ZONES. All or any part of the area
17-9 of the District is eligible to be included in a tax incremental
17-10 reinvestment zone created by the City under the provisions of
17-11 Chapter 311, Tax Code, or included in a tax abatement reinvestment
17-12 zone created by the City under the provisions of Chapter 312, Tax
17-13 Code.
17-14 SECTION 17. NOTICE AND CONSENT. The legislature finds that:
17-15 (1) proper and legal notice of the intention to
17-16 introduce this Act, setting forth the general substance of this
17-17 Act, has been have been furnished to all persons, agencies,
17-18 officials, or entities to which they are required to be furnished
17-19 by the constitution and laws of this state, including the governor
17-20 of Texas, who has submitted the notice and Act to the Texas Water
17-21 Commission;
17-22 (2) the Texas Water Commission has filed its
17-23 recommendations relating to this Act with the governor, lieutenant
17-24 governor, and speaker of the house of representatives within the
17-25 required time;
18-1 (3) the general law relating to consent by political
18-2 subdivisions to the creation of districts with conservation,
18-3 reclamation, and road powers and the inclusion of land in those
18-4 districts has been complied with; and
18-5 (4) all requirements of the constitution and laws of
18-6 this state and the rules and procedures of the legislature with
18-7 respect to the notice, introduction and passage of this Act have
18-8 been fulfilled and accomplished.
18-9 SECTION 18. SEVERABILITY CLAUSE. The provisions of this Act
18-10 are severable, and if any provision or part of this Act or the
18-11 application thereof to any person or circumstance is held by a
18-12 court of competent jurisdiction to be invalid or unconstitutional
18-13 for any reason, the remainder of this Act and the application of
18-14 that provision or part of this Act to other persons or
18-15 circumstances is not affected.
18-16 SECTION 19. EMERGENCY. The importance of this legislation
18-17 and the crowded condition of the calendars in both houses create an
18-18 constitutional rule requiring bills to be read on three several
18-19 days in each house be suspended, and this rule is hereby suspended.