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April 26th, 2013:

Friday random ten: The city never sleeps, part 3

Just a city boy with some city songs…

1. Dallas, Texas – Austin Lounge Lizards
2. Detroit Rock City – KISS
3. Do You Know The Way To San Jose? – Dionne Warwick
4. The Duke of Dubuque – Manhattan Transfer
5. Dusty In Memphis – Dusty Springfield
6. East St. Louis Toodle-Oo – Duke Ellington
7. Ellis County – Buddy and Julie Miller
8. Fairytale of New York – The Pogues featuring Kirsty MacColl
9. Fasting in San Francisco – Y La Bamba
10. Flowers of Edinburgh – Jim Malcolm

That’s three Detroit songs, but as you will see, Memphis is the most popular destination for song titles in my collection. Not exactly sure why that is, but there you have it. Oh, and for the second week in a row there’s a song featuring the name of a county instead of a city. I figure that’s close enough.

Revamped Chapter 42 ordinance finally passes

Strangely enough, in the end it was not very contentious.

Houston City Council on Wednesday voted 14-3 to allow greater single-family home density outside Loop 610, while also strengthening the proposal’s already robust protections for neighborhoods concerned about unwelcome development.

Council voted to drop the threshold of support needed to impose a minimum lot size in an area – preventing the subdividing of lots for townhomes – from 60 percent to 55 percent, and agreed to phase in the new rules, keeping new development out of residential areas for two years.

Mayor Annise Parker, who has said the changes will spur redevelopment of blighted areas and lower housing prices in the city, praised the first fundamental changes to the city’s development rules in 14 years.

“It’s about time,” Parker said. “The city of Houston has to grow, and we have to have a more flexible development tool. ”

Parker said she will engage a group of home-builders and civic leaders to continue the dialogue that allowed the package to come to a vote as related reforms move forward. Neighborhood support largely was won through city promises to improve standards in regulations outside the development code, known as Chapter 42.

In the ordinance itself, the Super Neighborhood Alliance got its phase-in of the new rules. The alliance raised concerns about eyesore Dumpsters at townhome developments; developers now must show where large garbage bins will sit when seeking permits. The alliance also worried about structures being built on property lines, leaving inches between homes; builders now must get written agreement from neighbors to come inside 3 feet.

There are still more things that the neighborhoods wanted, having to do with things like stricter drainage requirements and Complete Streets. Houston Politics goes into some detail on that.

On drainage, Councilman Stephen Costello has worked with engineering colleagues to draft reforms. Today, developers are not required to add detention when developing tracts of less than 15,000 square feet as long as they do not make more than 75 percent of the site impervious.

Costello’s proposal would drop that to 50 percent, a number he said is supported by data collected as part of the Rebuild Houston program. His proposal also would make developers add detention when they redevelop a dormant site in a way that makes water run off more quickly, something current rules do not address.

“I’m pretty pleased with what we have,” he said. “I’m always a little concerned about what happens after the development is done and how we manage the existing infrastructure in place. As areas start to redevelop, we need to make sure the city is there with Rebuild Houston to take care of any existing infrastructure that needs to be replaced.”

[…]

On drainage, Councilman Stephen Costello has worked with engineering colleagues to draft reforms. Today, developers are not required to add detention when developing tracts of less than 15,000 square feet as long as they do not make more than 75 percent of the site impervious.

Costello’s proposal would drop that to 50 percent, a number he said is supported by data collected as part of the Rebuild Houston program. His proposal also would make developers add detention when they redevelop a dormant site in a way that makes water run off more quickly, something current rules do not address.

“I’m pretty pleased with what we have,” he said. “I’m always a little concerned about what happens after the development is done and how we manage the existing infrastructure in place. As areas start to redevelop, we need to make sure the city is there with Rebuild Houston to take care of any existing infrastructure that needs to be replaced.”

The references letter is here. Jane Cahill West was quoted at the end of the story saying that “overall, we’re happy” and that working together on this was beneficial for all. The three No votes were CMs Jerry Davis, Andrew Burks, and of course Helena Brown, who tried but failed to pass an amendment that would have exempted District A from the new Chapter 42 rules. Texas Leftist has more.

MBIA lawsuit against Sports Authority dismissed

I haven’t seen a story about this in the print edition for whatever the reason.

A state district court judge on Tuesday ruled that the Harris County-Houston Sports Authority cannot be sued by the company that insures the $1 billion in debt that the agency services on local sports stadiums.

Bond insurer MBIA, with the National Public Finance Guarantee Corp., sued the Sports Authority in state district court in January, requesting that the cash-strapped agency be forced to collect more money to cover its obligations. Other local entities were listed as defendants, including the Harris County Sports & Convention Corp., the county agency that manages Reliant Park.

In granting two pleas to jurisdiction, 215th District Court Judge Elaine Palmer also ruled that the Sports Corp. cannot be sued. The Houston Texans and Livestock Show & Rodeo were also listed as defendants in the lawsuit.

Attorneys representing both sides made their cases in front of Palmer on Friday with the Sports Authority arguing it is immune from suit as a governmental agency created by the state Legislature.

Some folks from MBIA reached out to me a couple of weeks ago, presumably because I’d been blogging about this and had expressed some befuddlement about the finer points of the issues. As a result of that conversation, I now have a copy of the original complaint and response filed by MBIA, and a slightly better understanding of the whole thing as well. Though I am not a lawyer in addition to not being a finance guy, I confess that I am somewhat uneasy with the idea of a quasi-government entity like the Sports Authority being granted immunity like this. Hypothetically speaking, what if there had been an allegation of actual malfeasance? What would be the recourse in a case like that? I suppose the answer is that the County Attorney would investigate and hand things over to the DA if appropriate. While I have no doubt that Vince Ryan and his staff would be more than equal to that task, it seems there might be the potential for a conflict of interest. I don’t know. Any lawyers out there want to offer an opinion on this?

Anyway. I also received the following statement from Kevin Brown, a spokesman for National:

National and MBIA respect but disagree with the Court’s decision. This ruling raises a red flag for anyone doing business with governmental entities in Texas and calls into question whether their contracts are enforceable. We intend to appeal promptly and look forward to presenting our arguments to the Court of Appeals.

So it ain’t over yet. I’ll let you know when I hear more.

Improved payday lending bill passes the Senate

Good news, if it goes anywhere.

The Texas Senate approved a bill to regulate short-term lenders on Monday night, a milestone some thought the chamber wouldn’t reach after a personal and divisive floor fight on Thursday.

But with the measure’s author, state Sen. John Carona, R-Dallas, calling the highly-altered bill an “ugly baby,” it remains to be seen whether the measure is viable enough to get through the House.

The bill passed with versions of the six amendments Carona brought with him to the floor last week – but seven other amendments got tacked onto the bill, including one from state Sen. Wendy Davis, D-Fort Worth, which would bring payday lenders back under the control of existing small-loan regulations.

That provision is similar to one in a bill state Rep. Tom Craddick, R-Midland, introduced, which was lauded by consumer advocates but has long been seen as politically troublesome.

Another potential poison pill comes in the form of an amendment from state Sen. John Whitmire, D-Houston, which prevents state regulation of payday lenders from preempting local regulations. Previously, the bill established a statewide minimum level of regulation and preempted local ordinances regulating short-term lenders.

The statewide regulations and preemption were welcomed by payday lenders, who were willing to negotiate certain reforms in return for the expectation that they would be operating under uniform rules. With that provision gone, it remains to be seen whether the two sides can come together to reach an agreement. Carona acknowledged as much on the Senate floor.

“This has the effect, I think,” he told Whitmire, “of perhaps not leaving us any hope of passage.”

Whitmire, for his part, seemed to doubt that the amendments would survive the House, leaving it with no hope of passage later when it returns to the Senate.

“What are the odds,” he asked, that “the House returns your bill with these amendments? This ain’t my first rodeo.”

See here, here, and here for some background. The Observer calls the bill “surprisingly tough”, and it’s certainly a pleasant surprise. The Chron adds a few more details.

Another amendment, by Sen. Rodney Ellis, D-Houston, capped annual percentage rates at 36 percent for all borrowers – the amount lenders are allowed to charge military families.

The bill prohibits lenders from extending more than one payday or auto title loan to the same borrower at one time, limits the number of times the loan could be refinanced, and mandates that lenders must permit partial payments so that borrowers can reduce the size of their loans.

Pointing out the industry’s strength, Sen. Wendy Davis, D-Fort Worth, said that there are more payday lending storefronts in Texas than Whataburger and McDonald locations. “We’ve heard many, many stories about lives that have been ruined as a consequence of this state’s failure to appropriately regulate this industry so that consumers are treated fairly,” she said.

I have to say, after all the twists and turns this bill took, I did not expect this result. Kudos to Sens. Whitmire, Ellis, and Davis for strengthening the bill, and to Sen. Carona for not standing in the way. Maybe this means the bill now has no chance of passing the House, but maybe the House will take a cue from the Senate’s insistence on passing meaningful reform. I choose to be hopeful, as foolish as that often is with the Legislature. EoW has more.

For the Uptown/Memorial TIRZ

Ed Wulfe never mentions Mattress Mack or his recent diatribe in the Chron about the proposed Uptown/Memorial Park TIRZ, but his op-ed in the Chron is clearly aimed at countering naysayers like Mattress Mack.

Uptown is one of the most successful mixed-use urban environments in the United States and a leading economic driver of Houston; yet, Uptown has been historically underserved by public transportation. This is a major concern expressed by employers in the area or those considering a new location in Uptown because a functional and efficient means of mobility for their employees is critical to productivity and an ability to retain and attract workers.

More than 75,000 people work at the 2,000 plus businesses in approximately 23 million square feet of offices, 5 million square feet of retail and 7,000 hotel rooms. Sixty-five percent of Uptown’s workforce currently lives in the Sugar Land, Westpark, Katy or Cypress areas, and the ability and need to connect workers to Uptown is an ongoing and increasing challenge.

This plan, while primarily designed to serve the workforce of the Uptown area, also enables movement to, from and through the corridor more efficiently in both directions.

The widening of Post Oak Boulevard will allow for construction of bus rapid lanes within a landscaped median while still preserving six lanes totally dedicated for automobile traffic.

The plan is designed to connect with Metro’s Northwest Transit Center and the proposed Westpark Transit Center. Exclusive bus lanes will remove buses from general traffic lanes while augmenting pedestrian access. The existing traffic signal system and left turn lanes will remain as is, and Post Oak Boulevard’s signature oak trees will be preserved.

The plan before City Council has evolved based on growing transit needs in and around Uptown, and discussions with the city and the Memorial Park Conservancy to ensure the restoration, preservation and improvement of Memorial Park, a major amenity and connector to downtown Houston.

Two points come to mind. One is that this plan isn’t just about Uptown mobility, it’s also about reforesting Memorial Park, which abuts Uptown to the northeast. Mack never touched on this in his rant, but the two are a package deal. There may be a way to fund Memorial Park reforestration that doesn’t involve Uptown, though such a thing isn’t on the table as far as I know, and one could argue that the Uptown mobility part of this plan should be removed, but then what does Uptown get out of it? Basically, this is the plan to reforest Memorial Park. If you approve of that idea but don’t like the other parts of the plan, then you need to propose an alternative plan. What other options are there?

Point two is that the same thing holds true for Uptown mobility. Mattress Mack, as is often the case with opponents of mass transit in general or to specific plans, doesn’t offer a competing vision for Uptown. The closest he comes to that is at the end of his piece when he says “More than 80 percent of our region lives and works in the suburbs, so obviously that is where we need to concentrate our efforts”, which is both a dubious statistic (he gives no citation) and beside the point – it’s not the city of Houston’s responsibility to abet mobility in the non-Houston suburbs, though plenty of our Harris County tax dollars do just that. Assuming that you agree that doing nothing is not a good option for Uptown, what would you do to improve mobility there? Remember, this isn’t just about building dedicated lanes for BRT on Post Oak, it’s about connecting Uptown to the greater Metro park and ride network, via the Northwest and Westpark transit centers. If you don’t support that, what do you support?

Anyway, the plan is still in flux, as Council has not had a chance to discuss it yet. The BRT plan depends in part on grant funding from the Houston-Galveston Area Council, but that funding has not been approved and may not be guaranteed despite strong support from the Greater Houston Partnership. It’s possible this could all fall apart, in which case Mack will have ranted for nothing. I hope it doesn’t come to that, but nothing is certain until it’s done.