By Coleman H.B. No. 2894
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Midtown Management District;
1-3 providing authority to impose a tax and issue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 376, Local Government Code, is amended by
1-6 adding Subchapter H to read as follows:
1-7 SUBCHAPTER H. MIDTOWN MANAGEMENT DISTRICT
1-8 Sec. 376.301. CREATION OF DISTRICT. (a) The Midtown
1-9 Management District is created as a special district under Section
1-10 59, Article XVI, Texas Constitution.
1-11 (b) The board by resolution may change the district's name.
1-12 (c) The creation of the district is essential to accomplish
1-13 the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-14 Article XVI, Texas Constitution, and other public purposes stated
1-15 in this subchapter.
1-16 Sec. 376.302. DECLARATION OF INTENT. (a) The creation of
1-17 the district is necessary to promote, develop, encourage, and
1-18 maintain employment, commerce, transportation, housing, tourism,
1-19 recreation, arts, entertainment, economic development, safety, and
1-20 the public welfare in the municipality's midtown area.
1-21 (b) The creation of the district and this legislation are
1-22 not to be interpreted to relieve the county or the municipality
1-23 from providing the level of services, as of the effective date of
1-24 this subchapter, to the area in the district or to release the
2-1 county or the municipality from the obligations each entity has to
2-2 provide services to that area. The district is created to
2-3 supplement and not supplant the municipal or county services
2-4 provided in the area in the district.
2-5 (c) By creating the district and in authorizing the
2-6 municipality, county, and other political subdivisions to contract
2-7 with the district, the legislature has established a program to
2-8 accomplish the public purposes set out in Section 52-a, Article
2-9 III, Texas Constitution.
2-10 Sec. 376.303. DEFINITIONS. In this subchapter:
2-11 (1) "Board" means the board of directors of the
2-12 district.
2-13 (2) "County" means Harris County.
2-14 (3) "District" means the Midtown Management District.
2-15 (4) "Municipality" means the City of Houston.
2-16 (5) "Utility" means a person that provides to the
2-17 public gas, electricity, telephone, sewage, or water service.
2-18 Sec. 376.304. BOUNDARIES. The district includes all the
2-19 territory contained within the following described area:
2-20 Being all of the following described property in the
2-21 Obedience Smith Survey, Abstract No. 696, and the James S. Holman
2-22 Survey No. 323, City of Houston, Harris County, Texas and being
2-23 more particularly described as follows:
2-24 BEGINNING at the intersection of the westerly line of Bagby
2-25 Street with the southerly line of McGowen Avenue;
2-26 THENCE in a southwesterly direction along the westerly line
2-27 of Bagby Street to its intersection with the southerly line of Tuam
3-1 Street;
3-2 THENCE in a southeasterly direction along the southerly line
3-3 of Tuam Avenue to its intersection with the westerly line of Brazos
3-4 Street;
3-5 THENCE in a southwesterly direction along the westerly line
3-6 of Brazos Street to its intersection with the northerly line of
3-7 Elgin Avenue;
3-8 THENCE in a southeasterly direction along the northerly line
3-9 of Elgin Avenue to its intersection with the easterly line of
3-10 Brazos Street which is also the easterly line of Spur 527, a
3-11 segment of the Southwest Freeway;
3-12 THENCE in a southerly direction along the easterly line of
3-13 said Spur 527 to its intersection with the easterly line of Milam
3-14 Street;
3-15 THENCE in a southwesterly direction along the easterly line
3-16 of Milam Street to its intersection with the easterly line of said
3-17 Spur 527;
3-18 THENCE in a southerly and southwesterly direction along said
3-19 Spur 527 to its intersection with northerly line of US 59 south;
3-20 THENCE easterly along the northerly line of said US 59 South
3-21 to its intersections with the southeasterly line of Austin Street;
3-22 THENCE northeasterly along the southeasterly line of Austin
3-23 Street to its intersection with the northeasterly line of Eagle
3-24 Avenue;
3-25 THENCE northwesterly along northeasterly line of Eagle Avenue
3-26 to the southeasterly line of San Jacinto Street;
3-27 THENCE northeasterly along the southeasterly line of San
4-1 Jacinto Street to the southeasterly line of Alabama Avenue;
4-2 THENCE in a southeasterly direction along the southerly line
4-3 of Alabama Avenue to its intersection with the easterly line of La
4-4 Branch Street;
4-5 THENCE in a northeasterly direction along the easterly
4-6 direction along the easterly line of La Branch Street to its
4-7 intersection with the southerly line of Winbern Avenue;
4-8 THENCE in a southeasterly direction along the southerly line
4-9 of Winbern Avenue to its intersection with the easterly line of
4-10 Crawford Street;
4-11 THENCE in a northeasterly direction along the easterly line
4-12 of Crawford Street to its intersection with the southerly line of
4-13 Stuart Avenue;
4-14 THENCE in a southeasterly direction along the southerly line
4-15 of Stuart Avenue to the intersection with the Easterly line of
4-16 Hamilton Street which is adjacent to US Highway 59/State Highway
4-17 288;
4-18 THENCE in a northeasterly and northerly direction along the
4-19 easterly line of Hamilton Street and westerly line of said US
4-20 Highway 59/State Highway 288 to its intersection with the northerly
4-21 line of West Gray Avenue;
4-22 THENCE in a northwesterly direction along the northerly line
4-23 of West Gray Avenue to its intersection with the easterly line of
4-24 Smith Street;
4-25 THENCE in a northeasterly direction along the easterly line
4-26 of Smith Street to its intersection with the southerly line of
4-27 Interstate Highway No. 45;
5-1 THENCE in a northwesterly and northerly direction along the
5-2 southerly line of said Interstate Highway No. 45 to its
5-3 intersection with the north line of Cleveland Street;
5-4 THENCE in a westerly direction along the northerly line of
5-5 Cleveland Street to its intersection with the westerly line of
5-6 Arthur Street;
5-7 THENCE in a southerly direction along the westerly line of
5-8 Arthur Street to the southerly dead end thereof;
5-9 THENCE in a southeasterly direction at right angles to the
5-10 northwesterly line of Baldwin Street to its intersection with said
5-11 line;
5-12 THENCE in a southwesterly direction along the northwesterly
5-13 line of Baldwin Street to its intersection with the southerly line
5-14 of West Gray Avenue;
5-15 THENCE in a northwesterly and westerly direction along the
5-16 southerly line of West Gray Avenue to its intersection with the
5-17 north line of Webster Avenue;
5-18 THENCE in a southeasterly direction along the northerly line
5-19 of Webster Avenue to its intersection with an easterly projection
5-20 of the north line of West Webster Avenue;
5-21 THENCE westerly along the northerly line of West Webster
5-22 Avenue to the westerly line of Bailey Street;
5-23 THENCE southerly along the westerly line of Bailey Street and
5-24 a southerly projection thereof to its intersection with the
5-25 southerly line of McGowen Avenue;
5-26 THENCE southeasterly along the southerly of McGowen Avenue to
5-27 its intersection with the westerly line of Bagby Street, which is
6-1 the place of beginning of the tract herein described. There is
6-2 excepted from the boundaries of the district the following tract:
6-3 BEGINNING at the intersection of the center line of Pierce
6-4 Avenue and Bagby Street;
6-5 THENCE in a northeasterly direction with a center line of
6-6 Bagby Street to the westerly right-of-way of Interstate Highway 45;
6-7 THENCE south and southeasterly along the right-of-way of
6-8 Interstate Highway 45 to its intersection with the center line of
6-9 Pierce Avenue;
6-10 THENCE westerly along the center line of Pierce Avenue to the
6-11 intersection with the center line of Bagby Street the point and
6-12 place of beginning;
6-13 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
6-14 facilities, and improvements owned by a utility.
6-15 Sec. 376.305. FINDINGS RELATING TO BOUNDARIES. The
6-16 boundaries and field notes of the district form a closure. If a
6-17 mistake is made in the field notes or in copying the field notes in
6-18 the legislative process, it does not affect the district's:
6-19 (1) organization, existence, or validity;
6-20 (2) right to issue any type of bond for the purposes
6-21 for which the district is created or to pay the principal of and
6-22 interest on a bond;
6-23 (3) right to impose or collect an assessment; or
6-24 (4) legality or operation.
6-25 Sec. 376.306. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
6-26 All the land and other property included in the district will be
6-27 benefited by the improvements and services to be provided by the
7-1 district under powers conferred by Sections 52 and 52-a, Article
7-2 III, and Section 59, Article XVI, Texas Constitution, and other
7-3 powers granted under this subchapter, and the district is created
7-4 to serve a public use and benefit.
7-5 (b) The creation of the district is in the public interest
7-6 and is essential to:
7-7 (1) further the public purposes of the development and
7-8 diversification of the economy of the state; and
7-9 (2) eliminate unemployment and underemployment and
7-10 develop or expand transportation and commerce.
7-11 (c) The district will:
7-12 (1) promote the health, safety, and general welfare of
7-13 residents, employers, employees, visitors, consumers in the
7-14 district, and the general public;
7-15 (2) provide needed funding for the municipality's
7-16 midtown area to preserve, maintain, and enhance the economic health
7-17 and vitality of the area as a community and business center; and
7-18 (3) further promote the health, safety, welfare, and
7-19 enjoyment of the public by providing pedestrian ways and by
7-20 landscaping and developing certain areas in the district, which are
7-21 necessary for the restoration, preservation, and enhancement of
7-22 scenic and aesthetic beauty.
7-23 (d) Pedestrian ways along or across a street, whether at
7-24 grade or above or below the surface, and street lighting, street
7-25 landscaping, and street art objects are parts of and necessary
7-26 components of a street and are considered to be a street or road
7-27 improvement.
8-1 (e) The district will not act as the agent or
8-2 instrumentality of any private interest even though many private
8-3 interests will be benefited by the district, as will the general
8-4 public.
8-5 Sec. 376.307. APPLICATION OF OTHER LAW. Except as otherwise
8-6 provided by this subchapter, Chapter 375 applies to the district.
8-7 Sec. 376.308. LIBERAL CONSTRUCTION OF SUBCHAPTER. This
8-8 subchapter shall be liberally construed in conformity with the
8-9 findings and purposes stated in this subchapter.
8-10 Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. (a) The
8-11 district is governed by a board of 17 directors who serve staggered
8-12 terms of four years, with eight directors' terms expiring June 1 of
8-13 an odd-numbered year and nine directors' terms expiring June 1 of
8-14 the following odd-numbered year.
8-15 (b) A director shall receive compensation as provided by
8-16 Section 49.060, Water Code.
8-17 Sec. 376.310. APPOINTMENT OF DIRECTORS. (a) The mayor and
8-18 members of the governing body of the municipality shall appoint
8-19 directors from persons recommended by the board. A person is
8-20 appointed if a majority of the members and the mayor vote to
8-21 appoint that person.
8-22 (b) A person may not be appointed to the board if the
8-23 appointment of that person would result in less than two-thirds of
8-24 the directors residing in the municipality.
8-25 Sec. 376.311. EX OFFICIO BOARD MEMBERS. (a) The following
8-26 persons shall serve as a nonvoting ex officio director:
8-27 (1) the director of the following departments of the
9-1 municipality:
9-2 (A) parks and recreation;
9-3 (B) planning and development;
9-4 (C) public works; and
9-5 (D) civic center;
9-6 (2) the municipality's chief of police;
9-7 (3) the county's general manager of the Metropolitan
9-8 Transit Authority; and
9-9 (4) the presidents of any institutions of higher
9-10 learning located in the district.
9-11 (b) If a department described by Subsection (a) is
9-12 consolidated, renamed, or changed, the board may appoint a director
9-13 of the consolidated, renamed, or changed department as a nonvoting
9-14 ex officio board member. If a department described by Subsection
9-15 (a) is abolished, the board may appoint a representative of another
9-16 department of the municipality that performs duties comparable to
9-17 those performed by the abolished department.
9-18 (c) The board may appoint the presiding officer of a
9-19 nonprofit corporation that is actively involved in activities in
9-20 the municipality's midtown area to serve as a nonvoting ex officio
9-21 director.
9-22 Sec. 376.312. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
9-23 (a) Except as provided in this section:
9-24 (1) a director may participate in all board votes and
9-25 decisions; and
9-26 (2) Chapter 171 governs conflicts of interest for
9-27 board members.
10-1 (b) Section 171.004 does not apply to the district. A
10-2 director who has a substantial interest in a business or charitable
10-3 entity that will receive a pecuniary benefit from a board action
10-4 shall file a one-time affidavit declaring the interest. An
10-5 additional affidavit is not required if the director's interest
10-6 changes. After the affidavit is filed with the board secretary,
10-7 the director may participate in a discussion or vote on that action
10-8 if:
10-9 (1) a majority of the directors have a similar
10-10 interest in the same entity; or
10-11 (2) all other similar business or charitable entities
10-12 in the district will receive a similar pecuniary benefit.
10-13 (c) A director who is also an officer or employee of a
10-14 public entity may not participate in the discussion of or vote on a
10-15 matter regarding a contract with that same public entity.
10-16 (d) For purposes of this section, a director has a
10-17 substantial interest in a charitable entity in the same manner that
10-18 a person would have a substantial interest in a business entity
10-19 under Section 171.002.
10-20 Sec. 376.313. ADDITIONAL POWERS OF DISTRICT. (a) The
10-21 district may exercise the powers given to a corporation created
10-22 under Section 4B, Development Corporation Act of 1979 (Article
10-23 5190.6, Vernon's Texas Civil Statutes).
10-24 (b) The district may exercise the powers given to a housing
10-25 finance corporation created under Chapter 394 to provide housing or
10-26 residential development projects in the district.
10-27 Sec. 376.314. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL
11-1 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may
11-2 make an agreement with or accept a donation, grant, or loan from
11-3 any person.
11-4 (b) The implementation of a project is a governmental
11-5 function or service for the purposes of Chapter 791, Government
11-6 Code.
11-7 (c) To protect the public interest, the district may
11-8 contract with the municipality or the county for the municipality
11-9 or county to provide law enforcement services in the district for a
11-10 fee.
11-11 Sec. 376.315. NONPROFIT CORPORATION. (a) The board by
11-12 resolution may authorize the creation of a nonprofit corporation to
11-13 assist and act on behalf of the district in implementing a project
11-14 or providing a service authorized by this subchapter.
11-15 (b) The board shall appoint the board of directors of a
11-16 nonprofit corporation created under this section. The board of
11-17 directors of the nonprofit corporation shall serve in the same
11-18 manner, term, and conditions as a board of directors of a local
11-19 government corporation created under Chapter 431, Transportation
11-20 Code.
11-21 (c) A nonprofit corporation created under this section has
11-22 the powers of and is considered for purposes of this subchapter to
11-23 be a local government corporation created under Chapter 431,
11-24 Transportation Code.
11-25 (d) A nonprofit corporation created under this section may
11-26 implement any project and provide any service authorized by this
11-27 subchapter.
12-1 Sec. 376.316. ANNEXATION. The district may:
12-2 (1) annex territory as provided by Subchapter C,
12-3 Chapter 375; and
12-4 (2) annex territory located inside the boundaries of a
12-5 reinvestment zone created by the municipality under Chapter 311,
12-6 Tax Code, if the governing body of the municipality consents to the
12-7 annexation.
12-8 Sec. 376.317. PETITION REQUIRED FOR FINANCING SERVICES AND
12-9 IMPROVEMENTS. The board may not finance a service or improvement
12-10 project under this subchapter unless a written petition requesting
12-11 the improvement or service has been filed with the board. The
12-12 petition must be signed by:
12-13 (1) the owners of a majority of the assessed value of
12-14 real property in the district as determined by the most recent
12-15 certified county property tax rolls; or
12-16 (2) at least 25 persons who own land in the district,
12-17 if there are more than 25 persons who own property in the district
12-18 as determined by the most recent certified county property tax
12-19 rolls.
12-20 Sec. 376.318. ELECTIONS. (a) In addition to the elections
12-21 the district must hold under Subchapter L, Chapter 375, the
12-22 district shall hold an election in the manner provided by that
12-23 subchapter to obtain voter approval before the district imposes a
12-24 maintenance tax or issues bonds payable from ad valorem taxes or
12-25 assessments.
12-26 (b) The board may include more than one purpose in a single
12-27 proposition at an election.
13-1 Sec. 376.319. MAINTENANCE TAX. (a) If authorized at an
13-2 election held in accordance with Section 376.318, the district may
13-3 impose and collect an annual ad valorem tax on taxable property in
13-4 the district for the maintenance and operation of the district and
13-5 the improvements constructed or acquired by the district or for the
13-6 provision of services.
13-7 (b) The board shall determine the tax rate.
13-8 Sec. 376.320. CERTAIN RESIDENTIAL PROPERTY IS NOT EXEMPT.
13-9 (a) A board may not exempt a single-family residential property
13-10 from an impact fee, assessment, or tax imposed under this
13-11 subchapter.
13-12 (b) Sections 375.161 and 375.164 do not apply to the
13-13 district.
13-14 Sec. 376.321. UTILITIES. The district may not impose an
13-15 assessment or impact fee on a utility's property.
13-16 Sec. 376.322. DISBURSEMENTS OR TRANSFERS OF FUNDS. The
13-17 board by resolution shall establish the number of directors'
13-18 signatures and the procedure required for a disbursement or
13-19 transfer of the district's money.
13-20 Sec. 376.323. COMPETITIVE BIDDING LIMIT. Section 375.221
13-21 does not apply to the district unless the contract is for more than
13-22 $25,000.
13-23 Sec. 376.324. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
13-24 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district
13-25 that has debt. If the vote is in favor of dissolution, the
13-26 district shall remain in existence solely for the limited purpose
13-27 of discharging its debts. The dissolution is effective when all
14-1 debts have been discharged.
14-2 (b) Section 375.264 does not apply to the district.
14-3 SECTION 2. The legislature finds that:
14-4 (1) proper and legal notice of the intention to
14-5 introduce this Act, setting forth the general substance of this
14-6 Act, has been published as provided by law, and the notice and a
14-7 copy of this Act have been furnished to all persons, agencies,
14-8 officials, or entities to which they are required to be furnished
14-9 by the constitution and laws of this state, including the governor,
14-10 who has submitted the notice and Act to the Texas Natural Resource
14-11 Conservation Commission;
14-12 (2) the Texas Natural Resource Conservation Commission
14-13 has filed its recommendations relating to this Act with the
14-14 governor, lieutenant governor, and speaker of the house of
14-15 representatives within the required time;
14-16 (3) the general law relating to consent by political
14-17 subdivisions to the creation of districts with conservation,
14-18 reclamation, and road powers and the inclusion of land in those
14-19 districts has been complied with; and
14-20 (4) all requirements of the constitution and laws of
14-21 this state and the rules and procedures of the legislature with
14-22 respect to the notice, introduction, and passage of this Act have
14-23 been fulfilled and accomplished.
14-24 SECTION 3. Notwithstanding Section 376.310, Local
14-25 Governmental Code, as added by this Act:
14-26 (1) the initial board of directors of the Midtown
14-27 Management District consists of:
15-1 Pos. No. Name of Board Member
15-2 1. Gregory Phillips
15-3 2. Andy Bynam
15-4 3. Blanchard Hollins
15-5 4. Suewan Johnson
15-6 5. John Gonzales
15-7 6. Doug Williams
15-8 7. Tran Tian
15-9 8. Al Luna
15-10 9. Angela Lange
15-11 10. John Kirksey
15-12 11. Kathy Perry
15-13 12. Dan Nip
15-14 13. Allen Crosswell
15-15 14. Steve Hefner
15-16 15. Jim Lang
15-17 16. Frank Liu
15-18 17. Grant Martin; and
15-19 (2) of the initial board members, the members
15-20 appointed for positions 1 through 9 serve until June 1, 2003, and
15-21 the members appointed for positions 10 through 17 serve until June
15-22 1, 2001.
15-23 SECTION 4. The importance of this legislation and the
15-24 crowded condition of the calendars in both houses create an
15-25 emergency and an imperative public necessity that the
15-26 constitutional rule requiring bills to be read on three several
15-27 days in each house be suspended, and this rule is hereby suspended,
16-1 and that this Act take effect and be in force from and after its
16-2 passage, and it is so enacted.