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Houston First

A more nuanced look at the finances of hosting the Final Four

Mar 28th, 2023
by Charles Kuffner.
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I’ve made fun of articles in the past that breathlessly and credulously repeated claims that various big sporting events like a Super Bowl or a Final Four would yield untold millions in sales and hotel tax revenue for the state and the host city, despite the lack of objective evidence. With that in mind, I want to give credit to this Chron story about the upcoming Final Four in Houston, which takes a much more critical view of things.

Tens of thousands of fans are expected to swamp Houston later this week for the Final Four championship and unload their wallets in the city’s hotels, restaurants and bars.

Final Four organizers and researchers say Houston has a lot to gain from hosting the four-day college basketball championship, but a stubborn question emerges in every host that lands the event: Does it bring a financial windfall for the city?

A review of sales and hotel occupancy tax data from previous years Houston hosted the Final Four does not show a notable bump compared to years the city did not stage the event. When you add in extra costs the city takes on, like additional policing, infrastructure improvements and cleanup costs, the economic benefits get more muddy, researcher said.

“Sometimes we just list this really large number of economic impact, but we don’t talk about the investment that’s required,” said Jeremy Jordan, Temple University vice provost and former dean of the School of Sport, Tourism and Hospitality Management. “Planning and executing a large event for millions to watch requires large costs.”

Event organizers, boosters and city officials insist the broader benefits of the tournament extend far beyond the numbers. College basketball’s marquee event showcases the city to thousands of visitors and millions of fans tuning into the games across the country.

“Any time that we can put Houston in the spotlight is a great opportunity for us to be able to tell our story,” said Michael Heckman, CEO of Houston First, which operates several of the city’s convention, arts and entertainment venues.

The story then goes through a lot of different numbers to show that it’s hard to find an effect. My eyes glazed over after a few paragraphs, but it’s the process more than the specifics that really matter. My point in my earlier postings, which go all the way back to Super Bowl XXXVIII, is that it’s easy to make claims and difficult to produce evidence in support of those claims. Which the claimers usually avoided by not bothering, and which the stories often left unquestioned. That wasn’t the case here.

In the end, I do think there’s benefit to hosting large sporting events, even if the dollars and cents are hard to parse out. The benefits may be more intangible – and thus even more difficult to measure – and they accrue almost entirely to the limited set of people who care about the event in question. Having big attractions – in sports, music, culture, food, the arts, and so on – are benefits of living in a city, and the people that live there expect that over time there will be a number of such events that interest them. I don’t think it has to be more complicated than that.

Houston vies for 2028 RNC

Jul 15th, 2022
by Charles Kuffner.
Comments are off for this post

I’ll be sure to be out of town if we get it.

Houston wants the GOP to come to the Bayou City for its national convention in 2028.

City Council on Wednesday voted 14-2 to pass a resolution in support of hosting the 2028 Republican National Convention, with the hopes of adding another blockbuster event to the city’s portfolio. Councilmembers Abbie Kamin and Robert Gallegos voted no, saying their constituents are negatively affected by the GOP platform.

Houston separately has applied to host the 2024 Democratic National Convention, as well. It is in the second phase of that process, competing with New York City, Chicago and Atlanta.

Both parties invited the city to bid for the events. Houston could not bid for the 2024 Republican National Convention because it had conflicting events at the convention center for the RNC’s desired dates.

City officials said Houston was one of only a few cities nationwide to get invites from both Republicans and Democrats, according to news reports.

[…]

Houston First does not publicize its bid, but the convention would take place at the Toyota Center if the RNC chooses Houston, Heckman said. Other programming would include the George R. Brown Convention Center. If Houston is selected, the RNC and city then would work out an agreement for services and how to cover their costs.

Houston has not hosted a national convention since 1992, when former President George H.W. Bush was nominated for re-election at the Astrodome. It has not hosted the Democrats since 1928.

See here for the background. I remember that 1992 convention. I was doing clinic defense at the Planned Parenthood, which was still on Fannin in what we’d now call Midtown. They still had their main entrance right on the street. It was a wild time. I understand why the city will make a bid for this event. I will also be happy if we don’t get it.

GHP finally says something about voter suppression

May 9th, 2021
by Charles Kuffner.
2 comments

Weak.

After days of external pressure from Harris County politicians and internal calls from board members to speak out against voting bills in the Texas Legislature, the Greater Houston Partnership on Thursday evening issued a broad condemnation of efforts to restrict ballot access.

It made no mention of the legislation.

Bob Harvey, the partnership’s president, said the statement came out of a listening session Thursday morning with more than 80 board members to discuss the bills. The two main proposals, Senate Bill 7 and House Bill 6, would limit early voting hours, ban drive-thru voting, lessen restrictions on poll watchers and streamline the process to purge voters from rolls.

[…]

Harvey said 15 members spoke during the one-hour discussion, and “it remains clear there is no consensus on our board to take a formal position on the legislation itself.”

He said a clear consensus did support the new statement, which acknowledges that Texas and the United States have historically suppressed the vote of certain groups, including women, the poor, residents of color and those with disabilities. The partnership, the statement reads in part:

“Believes voter suppression is wrong and stands firmly against it in any form.

“Believes impediments to voting should be reduced to the greatest extent possible.

“Believes the right to vote is fundamental to our democracy and that all citizens should have ready and easy access to vote.”

[…]

[Mayor Sylvester] Turner and [County Judge Lina] Hidalgo said Friday the partnership’s new statement would not change their decision. The mayor said he was disappointed the House had advanced its version of SB 7 overnight.

“More than 350 of these voter restriction, suppression bills have been filed across the country, trying to fix a problem that doesn’t exist,” Turner said. “These bills were filed because a lot of people voted in the last presidential election, and specifically more people of color.”

See here, here, and here for some background, and here for the full statement. I’m trying to understand what it is that allows the GHP to (finally, at long last) make these very basic statements about the core tenets of democracy, but forbids them from connecting them in any way to the legislation that is on a glide path to Greg Abbott’s desk. What, other than a critical mass of Republican members who accept at face value the ludicrous and widely disputed claims by Republican legislators that SB7 and HB6 and the various other smaller bills won’t contradict these things they say they believe, is stopping them? Does Bob Harvey not understand why so many people are mad at the GHP for not taking a stand, or is he gritting his teeth and picturing himself in one of those “wanna get away?” Southwest Airlines ads? I have no idea. All I know is that this is the equivalent of turning in a term paper that’s two days late and that you wrote in an hour having done no research before handing it to the professor and hoping it’s enough to keep you from flunking the class.

Turner and Hidalgo rebuke GHP over voting rights failure

May 7th, 2021
by Charles Kuffner.
13 comments

Good.

Houston Mayor Sylvester Turner and Harris County Judge Lina Hidalgo no longer plan to hold their annual state of the city and county addresses with the Greater Houston Partnership because of the chamber group’s silence on bills in the Texas Legislature that the pair say will add unacceptable obstacles to voting.

The move, which the pair announced at a news conference, was a rare public rebuke of the region’s largest chamber of commerce, which typically has enjoyed a close relationship with Houston-area politicians. Hidalgo’s comments amounted to an accusation of cowardice, echoing comments a prominent Black member of the partnership board made a day earlier.

“We can’t in good conscience stand at the dais of the partnership when their will to represent their members and their community so easily crumbles in a time of need,” Hidalgo said. “We do not feel comfortable letting them after seeing them shrink from the civil rights fight of our time.”

Hidalgo said she would announce a new venue for her annual address at a later date. Turner said he would instead have Houston First Corporation host his state of the city speech.

“I think it’s important this year for me to find that venue that better reflects the diversity of our city and the values we hold so dear,” Turner said.

[…]

The partnership issued a statement saying it regretted Hidalgo and Turner had canceled the annual events, which its members “greatly enjoy.” The statement said there is no consensus among members on the voting bills, which prevents the group from taking a stance on the legislation.

Board members told the Chronicle, however, that GHP leadership had declined to hold a special meeting at which a consensus could be reached.

Hidalgo also questioned the partnership’s commitment to fighting racial injustice the group made after the killing of Houston native George Floyd last summer, given its inaction on the voting bills.

“The blunt truth is, you cannot stand for that and at the same time say silent on voter suppression,” Hidalgo said. “The right to vote is at the core of all of those rights.”

See here and here for some background. This is entirely appropriate and justified, and I hope it leaves a mark. You can’t proclaim yourself an icon of good government and civic engagement while sitting this out, and Judge Hidalgo is exactly right to question their self-proclaimed commitment to racial justice. (If you need a better understanding of why, read this Texas Civil Rights Project report on the sordid and racist history of poll watchers, which SB7 and HB6 and other bills are set to unleash.) This is an attack on democracy for partisan gain and based on a brazen lie, and if the GHP can’t or won’t recognize that then it doesn’t deserve to be taken seriously. Good for Judge Hidalgo and Mayor Turner, and shame on the GHP. The Press has more.

UPDATE: The Chron editorial board piles on.

“COVID-killing machines”

Nov 28th, 2020
by Charles Kuffner.
Comments are off for this post

I like the sound of that.

The George R. Brown Convention Center was built to hold Houston’s biggest crowds, but during the pandemic its halls have grown quieter. In reviving the center, Houston First squared off with a problem facing all local venues — showing the public they’re safe.

To address the problem, the local government corporation created to operate the city’s convention and performing arts facilities launched a public education campaign in August and spent about $30,000 on three mobile air filtration units for the convention center’s general assembly space, which is often used by businesses for presentations. The units, installed in September, add a layer of security for guests, said Michael Heckman, the group’s acting president and chief executive.

“Any level of added confidence that we can give to the public during this time is incredibly important,” Heckman said. “And I think once people understand the level of sophistication of this technology they’d be highly impressed, as we were.”

The filters are the product of Houston’s Integrated Viral Protection, an enterprise formed by engineer and real estate developer Monzer Hourani based on technology developed by researchers at the University of Houston.

[…]

Other pandemic-era inventions, such as UV light devices, require people to leave the room and, while they kill viruses on surfaces, they are not as effective at treating the air, Hourani said. Most HEPA, or high-efficiency particulate air filters, remove particles through holes still big enough to let coronavirus through, he said.

Despite the creation, Hourani said people gathering still need to wear masks. From a clinical perspective, air filtration devices like IVP’s can be used as an added layer of protection in addition to other preventative measures, said Dr. Jill Weatherhead, assistant professor of infectious disease for Baylor College of Medicine.

“At this point it’s unclear how much benefit it provides,” she said, “and it shouldn’t take the place of mask-wearing and social distancing. And frequent disinfecting.”

Most of what’s in between is technical details about the filters and the company, which you can peruse as you see fit. I think the idea of “making it safer for people to congregate indoors, as long as they wear masks” is a good one, and if it works would allow for a greater resumption of normal activities, without increasing the risk. It’s pretty clear that there are a lot of people who can’t or won’t do the risk-mitigating things we need them to do – and let’s be clear, some of these folks are service and retail workers who have no choice, while some others very much could be making different decisions – and as long as that is the case, the next best thing we can do is improve the odds overall. I hope this works as intended.

You’ll be able to vote at Toyota Center this fall

Aug 28th, 2020
by Charles Kuffner.
1 comment

Nice.

Toyota Center will serve as a voting center for the upcoming 2020 Presidential Election, the Rockets and the Harris County Clerk office announced on Thursday.

Toyota Center will be open to any registered voter in Harris County from Oct. 13 to 30 from 7 a.m. to 7 p.m. for early voting and on Election Day, Nov. 3, from 7 a.m. to 7 p.m.

“On behalf of the Houston Rockets, and Toyota Center, we are honored to help serve our community by providing a safe and convenient location for Harris County voters for the upcoming Presidential election,” Doug Hall, General Manager & Senior Vice President of Toyota Center said. “Voting is an extremely important right which many have fought hard for throughout the years and we want to thank the Harris County Clerk office for allowing the Rockets and Toyota Center to offer support.”

The Rockets and Houston First will provide free parking at Toyota Center throughout the voting period.

The Rockets have also partnered with I am a voter. (iamavoter.com), a nonpartisan movement that works to enhance awareness and participation in the voting process. Fans may text ROCKETS to 26797 to confirm their voter registration status.

“Our elections this November will be historic – not only because we are electing the President of the United States, but also because we must meet the challenge as a community to ensure that every Harris County voter can cast their vote safely,” Harris County Clerk Chris Hollins said. “I’m thrilled that Toyota Center, home to our beloved Houston Rockets, will be a voting center during the Early Voting Period and on Election Day.”

Here’s the County Clerk’s statement about this. Toyota Center joins NRG Arena and many other places. Unlike the other innovations being put forth for this year, this one may not be repeatable, as Toyota Center (and NRG Arena) are generally quite busy with multiple events that draw large crowds. Then again, one could argue that’s exactly the kind of place where you’d want to put a voting center, for maximal convenience. If there’s a practical way to do it in the future, then by all means let’s do so.

Federal judge rules GOP can have its in person convention

Jul 18th, 2020
by Charles Kuffner.
6 comments

Unbelievable.

A federal judge on Friday ruled that Mayor Sylvester Turner and Houston First Corp. must allow the Texas Republican Party to proceed with an in-person convention at the George R. Brown Convention Center, though the party now only intends to use the facility as a backup option.

Judge Lynn Hughes of the Southern District of Texas found the city had infringed upon the Texas GOP’s constitutional rights by canceling the convention, which initially was set to run from Thursday through Saturday before Turner ordered Houston First, the city’s convention agency, to nix it.

Hughes gave the party the option of using the convention center this weekend and next, according to Jared Woodfill, an attorney for Houston conservative activist Steve Hotze, who initially filed the lawsuit with a handful of other plaintiffs.

The party began its convention online Thursday but encountered numerous technical difficulties, forcing officials to postpone the event until Saturday. The party joined Hotze’s lawsuit Friday “to provide a last-resort method in-person if we needed it to secure our national election obligations,” Chairman James Dickey said in a statement following Hughes’ ruling. He said the party still “is on track to hold its convention online.”

Party officials will elect their party chair and select delegates for the national Republican convention at the state convention.

“Our online convention provides the greatest opportunity for as many delegates who want to participate in the convention as possible,” Dickey said. “We learned a hard lesson yesterday and with this win today, if for any reason there is an issue tomorrow, we know that we have a single location where, with the necessary SREC authorizations, we could” elect delegates to the national convention.

Turner in a statement blasted the party for its legal efforts to proceed with the convention, and said the city and Houston First would appeal upon receiving a written order from Hughes.

“We are in the midst of a pandemic, a public health crisis. More people are being admitted to our hospitals and ICUs, and more people are dying,” Turner said. “The State Republican Executive Committee is being totally irresponsible in continuing to push for an indoor, in-person convention. This reflects a total disregard for the health and safety of employees and people in our city.”

[…]

Hughes, in granting the Texas GOP an injunction that bars Turner from canceling the event, agreed with the argument by Hotze and the party that Turner’s move to cancel the convention “at the last minute” deprived party members “of their right to express their political beliefs, and make core political determinations,” a right protected by the First Amendment.

In a court filing Friday, Woodfill wrote that the party “has attempted a virtual convention and found that it is an unworkable platform.”

“Accordingly, the Republican Party of Texas has no choice but to seek relief from the Court to allow the Republican Party of Texas to prepare for the upcoming election season,” Woodfill wrote.

See here and here for some background. The plaintiffs knew which judge to pick, you have to give them credit for that. The judge bought the argument that the late cancellation of the convention, which came after they had considered but rejected changing to an online convention, which Mayor Turner begged them to reconsider, plus the GOP’s complete inability to get Zoom to work, meant that their rights were being infringed. Putting it another way:

The city and Houston First will appeal, so we’ll see what happens. Even on the Republican side, this was a bit controversial:

Before Friday’s ruling, Texas GOP Chairman James Dickey said the party was still working toward resuming the virtual convention Saturday.

“Today we have been hard at work for hours already on Plan A and Plan B and Plan C,” Dickey said during an interview with Texas Values. “We are going to make sure that we can move forward with our convention virtually tomorrow.”

[…]

Dickey’s chairmanship is on the line at the convention, where he faces a serious challenge from Allen West, the former Florida congressman. The election is tentatively scheduled for Sunday.

West has mostly stayed out of the debate over holding the convention in person, though he has increasingly questioned Dickey over the voting technology for the virtual meeting. And earlier Friday, West’s team seemed to reach a boiling point when word got out that the party was making a last-ditch legal push to join Hotze’s lawsuit.

“It is beyond belief that Chairman Dickey and the RPT allowed a foreseeable catastrophic failure such as this to unfold,” West lawyer Clyde Siebman wrote in a letter to Dickey. “Colonel West grew to doubt that it was by mere negligence but continued to give fellow Republicans the benefit of the doubt — until today.”

The party’s 11th-hour participation in the lawsuit “proves an intent to disenfranchise large blocks of grassroot Republicans across Texas,” Siebman added.

I don’t know what’s going to happen at this point, but my advice is to avoid downtown until this is over. And pray for those workers whose lives are being put in danger.

State Supreme Court denies GOP effort to force convention to happen

Jul 14th, 2020
by Charles Kuffner.
6 comments

Denied.

The Texas Supreme Court on Monday rejected the state Republican Party’s appeal of a lower court’s decision regarding its in-person Houston convention, all but ensuring that Mayor Sylvester Turner’s move to cancel the event will stand.

In an unsigned “per curiam” opinion, the court ruled that while the Texas GOP has the constitutional right to hold a convention, “those rights do not allow it to simply commandeer use” of the George R. Brown Convention Center, where the event was set to take place Thursday through Saturday.

“Houston First’s only duty to allow the party use of the center for its convention is under the terms of the parties’ agreement, not a constitution,” the opinion stated.

[…]

The Supreme Court also rejected a petition for a writ of mandamus — a court order requiring the city to reverse the cancellation — from Steve Hotze, a Houston Republican activist who challenged the convention cancellation along with three other plaintiffs.

Justice John Devine filed the lone dissenting opinion, arguing that the court had standing to rule on the Texas GOP’s case and that Houston First breached its contract with the party by canceling. Devine also dissented from the court’s decision to deny Hotze’s petition.

Meanwhile, Justice Jeff Boyd decided not to participate in the decision. He is one of four justices whom the Texas Democratic Party called on to recuse from the case, due to their sponsorship of the convention. The other three justices — Chief Justice Nathan Hecht and Justices Jane Bland and Brett Busby — opted not to recuse themselves.

See here, here, and here for the background. The ruling was more or less along the lines of that AG brief that supported the city’s position, that this was a matter of contract law, not election law. This was a writ of mandamus, asking for a quick ruling from SCOTX without waiting for the district court to issue a judgment. The denial of the writ means that the case goes back to the district court, but since this shindig was supposed to start on Friday – indeed, some preliminaries are already underway, presumably in virtual fashion – there ain’t much time for that. For their sake, I sure hope the RPT has its contingency plans for an online convention ready to go. You know, like the TDP had for its convention back in March. Mayor Turner’s statement is herer, and the Trib, the Press, and the DMN have more.

UPDATE: It’s official, the GOP will have a virtual convention. Here’s the updated Chron story.

AG sides with Mayor Turner in GOP convention litigation

Jul 13th, 2020
by Charles Kuffner.
1 comment

But only in a limited and technical way, so cool your jets.

Mayor Sylvester Turner

The Texas Attorney General’s Office on Saturday sided with Mayor Sylvester Turner in a legal dispute over the state Republican Party’s in-person convention, arguing that the Texas Supreme Court should reject the party’s attempt to proceed with the event.

In a brief filed with the Supreme Court, Solicitor General Kyle Hawkins — the state’s top appellate lawyer — said that despite the party’s “troubling factual allegations,” the court should deny its petition for failing to “properly invoke [the court’s] mandamus authority.”

The legal proceedings began earlier this week after Turner ordered Houston First Corp., the city nonprofit that manages the convention site, to cancel the event over concerns about the COVID-19 pandemic. The Republican Party sued Turner and Houston First, but a Harris County judge denied the party’s request for a temporary restraining order that would have blocked Turner from canceling the event. The party then filed a petition for a writ of mandamus with the Texas Supreme Court.

In its petition, the party invoked a section of Texas’ election code that allows the court to issue orders that “compel the performance of any duty imposed by law in connection with the holding of an election or a political party convention.” In his brief, Hawkins argued that the party’s convention contract with Houston First does not apply, because the convention was to be held under a contract, not a law.

Prior Supreme Court rulings have “distinguished ‘a duty created under [a] contract’ as legally distinct from ‘a duty imposed by law,’” Hawkins wrote.

See here for the background, and here for a copy of the AG’s brief. A copy of the original writ is here. As the story notes, the AG similarly opposed Steven Hotze’s petition on the matter, arguing Hotze has no business in this matter. The Court also has the matter of the motion for four of them to recuse themselves to sort out. I presume that has to happen first, since we have to have the question of who is ruling on the write of mandamus settled before the ruling can happen. Gonna be a busy couple of days at the SCOTX. Oh, and Paxton also opposed Hotze’s petition for a TRO against Judge Hidalgo’s latest face mask order, on the grounds that Hotze’s multiple challenges to the Texas Disaster Act may cause “irreparable harm” to the state’s sovreignty. I presume there will be a similar filing against Hotze’s lawsuit challenging Abbott’s face mask order, too. And yes, the correct response to all this is exasperation and exhaustion.

Dems ask some Supreme Court justices to recuse themselves from convention appeal

Jul 11th, 2020
by Charles Kuffner.
3 comments

Stay with me here, this will all make sense.

The Texas Democratic Party on Friday called for four of the state’s nine Supreme Court justices to recuse themselves from a case involving the Texas Republican Party’s in-person convention, claiming each had a conflict of interest.

The campaigns of Chief Justice Nathan Hecht and Justices Jane Bland, Jeffrey Boyd and Brett Busby each sponsored the convention, according to an archived list of sponsors that since has been removed from the Texas GOP’s website.

[…]

Texas GOP officials are seeking a writ of mandamus from the court that would block Turner from canceling the convention, a day after a Harris County judge denied the party’s attempt to do so in state district court.

Democratic Party Chairman Gilberto Hinojosa said the four justices, each of whom is up for re-election in November, are “faced with an obligation to do the right thing and choose the law over political allegiance.”

“A justice who funds a dangerous convention should not judicially decide the fate of that same convention,” Hinojosa said in a statement. “All four have interests in the case coming before them and all four should recuse.”

See here for the background. The allegation is that by sponsoring the convention and being on the November ballot, these judges have a conflict of interest. A press release from the TDP provided the following justification for the petition:

Canon 3(B)(1) of the Texas Code of Judicial Conduct provides that Texas judges “shall hear and decide matters assigned to the judge except those in which disqualification is required or recusal is appropriate.”

Texas Rule of Civil Procedure 18(b) requires a judge to recuse themself from a case when “(1) the judge’s impartiality might reasonably be questioned” or “(2) the judge has a personal bias or prejudice concerning the subject matter or a party.”

I’m not qualified to assess this claim, but I will note that if the four Justices do recuse themselves, there’s still enough justices left to issue a ruling, and since all nine are Republicans it doesn’t change the dynamic. Given the compressed timeline for this litigation, I presume we’ll get an answer quickly.

GOP sues over cancelled convention

Jul 10th, 2020
by Charles Kuffner.
11 comments

As the night follows the day.

The Texas Republican Party on Thursday sued Mayor Sylvester Turner and Houston First Corp. for canceling the party’s in-person convention that was scheduled for next week in downtown Houston.

The lawsuit, filed in Harris County state district court, alleges that Turner erred when he invoked a “force majeure” clause of the contract between the Texas GOP and Houston First, the city’s public nonprofit that operates the George R. Brown Convention Center. The Republican Party also is suing Houston First President Brenda Bazan and the city of Houston.

Turner, who ordered Houston First to cancel the convention on Wednesday, said the clause allows one side to cancel over something that is out of its control, including “epidemics in the City of Houston.” In its petition filed Thursday, the GOP said Turner simply does not want to hold the convention, thus failing to meet the force majeure standard.

“Houston Mayor Sylvester Turner’s use of the force majeure clause is just a pretext to his intent to treat the Republican Party of Texas differently than other groups, such as those we have seen from recent protests in the city of Houston,” the party said in a statement Thursday. “It should go without saying that a political viewpoint cannot be the basis for unequal treatment.”

Turner said he called off the convention based on concerns about Houston’s recent COVID-19 surge and input from various medical professionals. A spokeswoman for the mayor said he would address the lawsuit at a 3 p.m. news conference.

In the lawsuit, Texas Republican Party officials are seeking a temporary restraining order that would allow the convention to continue as planned and damages due to Turner’s “anticipatory breach of contract,” including the cost of all losses and the “increased costs of handling the Convention elsewhere.”

The party argued that Turner and Houston First violated the “equal rights clause” of the Texas Constitution, and that Gov. Greg Abbott stripped Turner’s power to cancel the convention in one of his COVID-19 executive orders.

See here for the background, and here for a copy of the lawsuit. I’d love to hear from any of the attorneys out there about the merits of this one. I can’t remember where I saw this now – probably Twitter, my brain is mush – but Jared Woodfill (who is of course the plaintiffs’ attorney for this, along with fellow genius Briscoe Cain) said he was going to try to get a hearing today and secure a temporary block on the cancellation. I can imagine that happening, at least long enough for a judge to make a preliminary ruling. (UPDATE: Per a press release from the Texas GOP received at 7:30, they were indeed denied a motion to block the cancellation. They will appeal directly to the Supreme Court. Stay tuned.) Beyond that, who knows? Insert giant shrug emoji here. Texas Lawyer and the Trib have more.

UPDATE: Jasper Scherer tweets about the TRO denial. Apparently, there’s a second lawsuit as well, by Steven Hotze, because of course there is. Both motions were denied.

UPDATE: An updated Chron story, with more details on the TRO denials. Also, too, this:

The mayor also encouraged party officials to move their convention to Montgomery County, where County Judge Mark Keough offered to host the event and vowed “there will be no last-minute changes.”

“I think Judge Keough in Montgomery County is more than happy to host the 6,000 delegates (there),” Turner said. “I think they should go to Montgomery County.”

Seems like a match made in heaven to me.

City cancels Republican convention

Jul 9th, 2020
by Charles Kuffner.
16 comments

Game on.

Mayor Sylvester Turner

Mayor Sylvester Turner announced on Wednesday that the city has canceled the Texas Republican Party’s in-person state convention in downtown Houston next week.

Houston First, the public nonprofit that serves as the city’s convention arm, sent a letter to the party’s executive committee notifying it that the convention has been canceled.

The letter triggers a part of the contract called a “force majeure” clause, which allows one side to cancel for an occurrence out of its control. The definition included “epidemics in the City of Houston,” according to the Houston First letter.

Earlier Wednesday, Texas Republican Party officials said they were preparing for a legal fight after Turner said the Houston First and the city attorney’s office would review its contract with the party for using the George R. Brown Convention Center for the convention July 16-18.

Turner said he sought the review after Dr. David Persse, the city’s health authority, called the planned convention “a clear and present danger.”

The mayor had been hesitant to leverage his authority to cancel the convention out of fear of politicizing it, and he repeatedly had asked the party to meet virtually instead. He said Wednesday’s decision was prompted by rising numbers and an alarming letter from Persse, who reports to the mayor, outlining the danger of moving forward.

“It is a letter that as the mayor of Houston, that I simply cannot ignore or overlook,” Turner said. “The plan is to exercise those provisions, to cancel this agreement today, to not go forward with this convention.”

Persse’s letter called the spike in Houston an “unparalleled and frightening escalation” since Memorial Day.

“Now, COVID-19 infections are three times greater than they were at the peak experienced earlier this spring,” Persse wrote to Turner and Brenda Bazan, the president of Houston First. “Houston is now among the the national epicenters of the current COVID-19 outbreaks.”

See here and here for the background, and here for the announcement on Twitter. Before anyone gets their Hot Take machines fired up, please note that Greg Abbott and Dan Patrick were going to give their speeches via video, because they apparently had better things to do than bathe in a viral stew for three days. The RPT says they are reviewing their legal options, and I’d bet a year’s supply of N95 masks that someone will file a lawsuit over this. The real question is whether they’ll be able to get an expedited hearing, something the TDP was not able to get from SCOTUS with their vote-by-mail lawsuit. Priorities, you know. Anyway, Republicans should look on the bright side, because they just got something they surely prefer to a dumb convention, namely the chance to play the victim at the hands of a mean old Democrat. All that and a lower chance of death by ventilator – it’s a total win-win. The Trib, the Chron editorial board, and the Press have more.

UPDATE: Right on schedule:

We’ll see if they try for a quick ruling that disallows the cancellation. My head is spinning already.

GOP declines Turner’s invitation to cancel their convention

Jul 8th, 2020
by Charles Kuffner.
11 comments

The ball is back in your court, Mr. Mayor.

The Texas Republican Party is proceeding with an in-person convention next week in downtown Houston, a rejection of Mayor Sylvester Turner’s formal request Monday to move the event online amid a local escalation of the COVID-19 pandemic.

James Dickey, chairman of the Texas GOP, in a statement Tuesday said the party has been “proactive in implementing safety measures” and had “extensive conversations” with Houston First, the public nonprofit that serves as the city’s convention arm and operates the George R. Brown Convention Center. The convention is set to take place there from July 16 to 18.

“With these precautions currently in place, the Republican Party of Texas intends to proceed with an in-person convention next week in Houston,” Dickey said.

The chairman also responded to the list of conditions Turner, a Democrat, said the GOP would need to follow if it holds the convention. Those guidelines include denying entry to anyone who has tested positive for COVID or come in contact with a COVID patient between July 2 and July 15, requiring attendees to wear masks, and providing touchless hand sanitizing stations throughout the convention center.

“Mayor Turner must not have had the information about the measures being voluntarily implemented,” Dickey said. “The Republican Party, delegates, and guests are looking forward to a safe and productive Convention next week.”

Turner said he was “incredulous” that the GOP is moving ahead with an in-person convention, and reiterated that health department officials would shut down the event if they find people are not following COVID-19 guidelines.

See here for the background. For what it’s worth, the Greater Houston Partnership has also implored the GOP to cancel the in person convention.

The Greater Houston Partnership has called on the Texas GOP, along with state and local officials, to cancel the in-person Texas Republican Convention in downtown Houston next week.

Citing the health and safety of event-goers, staff and volunteers, the group of Houston business leaders said an indoor event as large as the convention — which is expected to draw thousands of people — would be unsafe.

In a letter sent Tuesday afternoon to Gov. Greg Abbott, Mayor Sylvester Turner, Harris County Judge Lina Hidalgo, and state GOP Chairman James Dickey, the GHP asked “those with the authority to cancel” the event to do so.

“In normal times we would welcome an event that was expected to draw some 6,000 delegates from across Texas to the George R. Brown Convention Center,” the letter read. “Unfortunately, these are not normal times.”

You can click over to see their letter. Of course, the modern Republican Party of Texas doesn’t really represent business interests any more (see: the bathroom bill, for one), so I would not expect this to have any effect. But at least you know, it’s more than just Mayor Turner versus the state GOP.

The one person who could (maybe) put an end to this is Greg Abbott, but I think we all know that ain’t gonna happen. So for now we have this game of chicken, and we hope there’s no significant collateral damage. And if it does come down to the city health department, well, there’s this:

Those “face mask legal exemption” cards are complete BS, in case you were wondering. Not that anyone who has printed out one of those cards for themselves will believe that, of course. If there’s a better definition of “shit show” right now, I don’t want to know what it is.

Mayor Turner asks GOP to not hold its convention

Jul 7th, 2020
by Charles Kuffner.
11 comments

Good luck with that.

The city of Houston will deploy health inspectors to enforce COVID-19 restrictions at the Texas Republican Convention, and potentially shut down the event if guidelines aren’t followed, Mayor Sylvester Turner said Monday.

In a letter to Texas GOP executive director Kyle Whatley, Turner on Monday laid out a series of conditions the party would have to follow if it proceeds with an in-person convention at the George R. Brown Convention Center from July 16 to 18. The guidelines are aimed at limiting the transmission of COVID when an anticipated 6,000 people descend on the convention center.

Those conditions, according to Turner’s office, include denying entry to anyone who has tested positive for COVID or come in contact with a COVID patient between July 2 and July 15, requiring attendees to wear masks, and providing touchless hand sanitizing stations throughout the convention center.

Party officials also must limit attendance and seating capacity “or host smaller events in larger rooms,” and modify room layouts to “promote social distance of at least 6 feet.” The mayor’s letter did not include a specific cap on how many people can attend the convention.

Turner also said he is “strongly encouraging” the Texas GOP to call off the in-person convention, which he said is the only conference or convention in Houston that has not been canceled or rescheduled for next year.

“I believe canceling the in-person convention is the responsible action to take while we are in a critical moment in our battle against the COVID-19 pandemic,” Turner said. “I’ve not yet talked to a medical professional who has said that this is a good idea to hold this convention at this time.”

Echoing Turner’s message, Houston public health authority David Persse said “the wise, prudent thing to do would be for the Texas GOP to reconsider their position” to hold the event in person.

See here for the background, and here for a thread from the official Twitter account of the Mayor’s office that makes things a bit more explicit. I have a hard time believing that the health department will actually step in and order the convention closed because it would be one hell of a political bombshell to do that, but it’s not out of the question. The Trib adds some details.

According to the Houston Chronicle, Turner recently removed language from an executive order and effectively took away his own authority to cancel the convention.

Turner also called on event sponsors to push the party to move the event online, tweeting that all other conferences had already been rescheduled or canceled for the rest of the year. The Texas Medical Association, the state’s largest medical group, has called on the party to follow suit and withdrew as a convention advertiser.

“With or without masks, an indoor gathering of thousands of people from all around the state in a city with tens of thousands of active COVID-19 cases poses a significant health risk to conventiongoers, convention workers, health care workers, and the residents of Houston,” Dr. Diana Fite, TMA’s president, said in a statement.

Meanwhile, various other indoor conventions across the state have recently been canceled or moved online. The Texas High School Coaches Association announced Monday it is canceling its in-person, indoor convention scheduled for July 19 to 21 in San Antonio. The THSCA conference was expected to draw 5,000 attendees who would not have been required to wear face masks, according to the association’s rules.

“It was a tough call to make but in our efforts to support the preventative protocols set forth by our Texas school administrators, the UIL [University Interscholastic League] Executive Staff and governing authorities at both state and local levels, we are choosing to prioritize health and safety first,” the THSCA wrote in a press release.

The Texas Girls Coaches Association also canceled their convention for this week. The state GOP really is alone in their push to gather thousands of people into an interior space like this. I don’t fully understand why Mayor Turner amended his executive order removing his own authority to shut down a gathering like this convention, but my guess would be he was advised it would put the city in a precarious legal position to do so – basically, we’d get our butts sued for it and probably lose. Certainly, in every possible way, the cleanest solution here is for the GOP to decide on its own to cancel and hold their convention online instead. I don’t have any reason to think they’ll do that, but I’ll be happy to be proven wrong.

State GOP will have its convention

Jul 4th, 2020
by Charles Kuffner.
2 comments

I hope they don’t kill any convention or hotel workers as a result. Beyond that, I don’t know what to say.

The Texas GOP’s executive committee voted Thursday night to proceed with plans to hold the party’s in-person convention in Houston later this month.

The State Republican Executive Committee, a 64-member body that serves as the governing board of the state party, voted 40-20 to approve the resolution supporting the in-person gathering. Thursday’s vote comes as the state grapples with a surge of coronavirus cases, with Houston serving as one of the country’s hot spots for the virus.

The SREC is scheduled to meet again Sunday to consider changing the party’s rules. Those rules will include a tweak that allows the party to act on an “emergency fallback contingency plan,” if necessary, to hold a virtual convention, party Chair James Dickey told members as he kicked off Thursday’s virtual meeting.

The convention, scheduled for July 16-18, will be held at the George R. Brown Convention Center, where roughly 6,000 people are expected to attend.

[…]

Over the past week, demands have mounted for the party to cancel plans for an in-person convention, with some Republicans stating they would not attend such an event due to safety concerns. Others have also cited concerns about the optics of attending a large gathering while small businesses in their districts remain shuttered under the governor’s orders.

Meanwhile, a faction of activists has argued that canceling an event focused on selecting delegates for the national convention and voting on the party’s platform, among other things, would not reflect well on a party that dubs itself the party of personal responsibility. Some have also suggested that a virtual convention could disenfranchise certain delegates.

On Tuesday, the party’s plans for an in-person convention looked increasingly uncertain, when the Texas Medical Association, the state’s largest medical group, called on the party to cancel the event, a reversal that came just one day after The Texas Tribune reported on TMA’s sponsorship of the convention.

After Thursday night’s vote, TMA announced it had withdrawn as an advertiser to the convention, arguing that face masks alone at such a large gathering were not enough.

“With or without masks, an indoor gathering of thousands of people from all around the state in a city with tens of thousands of active COVID-19 cases poses a significant health risk to conventiongoers, convention workers, health care workers, and the residents of Houston,” Diana Fite, the group’s president, said in a statement. “We are concerned not only for the City of Houston but also for the communities to which the delegates will return, giving the virus easy transportation to parts of Texas that have far fewer cases.”

See here and here for the background. Kudos to the TMA for backing out as sponsors, which they had initially said they would not do because of their need to engage with (read: lobby) Republicans directly. As noted, all this occurred on the same day as Greg Abbott’s mask order, which at least will mostly require attendees to wear them. Abbott’s order banned outdoor public gatherings of more than 100 people but had no effect on the much more hazardous indoor public gatherings. In typically wishy-washy fashion, Abbott expressed no opinion about whether or not this convention should be held in person or online.

There’s nothing we can do about the state GOP’s decision. They’re gonna do what they’re gonna do. But we can and should make sure that Houston First, the entity that owns the George R. Brown and the nearby Hilton Hotel, extends full health insurance coverage to all their workers who have to be there for this. If the Republicans insist on risking their own health, that’s one thing. But no one else should be made to suffer for it. The Chron has more.

Is this convention really necessary?

Jun 29th, 2020
by Charles Kuffner.
14 comments

Seriously. I know they don’t care about anyone else, but maybe the state GOP might think about the health and well-being of their own people?

As the coronavirus pandemic engulfs Texas’ metropolitan areas, Republican Gov. Greg Abbott has left the door open for massive indoor gatherings. And organizers are moving forward with some big ones, including the Texas Republican party’s upcoming convention in Houston.

Harris County, where Houston is located, has the highest number of coronavirus cases and deaths in the state, but the Texas GOP plans to press forward with plans to hold an in-person convention from July 16-18 in the city’s George R. Brown Convention Center.

“All systems are go, folks. This is happening,” Kyle Whatley, the party’s executive director, said Tuesday during a tele-town hall, noting the convention program is already being printed.

On Tuesday, Abbott granted local officials the power to restrict outdoor gatherings of more than 100 people, but made no mention of indoor gatherings. The Texas GOP convention is expected to draw about 6,000 attendees, roughly half of what it would expect for such a convention in normal times, according to Whatley. The party’s website brands its annual convention as the “largest political gathering in the free world.”

Whatley said registrations are “increasing exponentially” as the convention nears.

David Lakey, the former commissioner of the Texas Department of State Health Services, said he believes large indoor gatherings of more than 100 people are not advisable at this time.

“I think, right now, I wouldn’t hold a group larger than 100 individuals,” he said. “I think people need to be very cautious about making — especially in the month of July — any plans for a big conference.”

The party does not plan to require masks at the convention, though chairman James Dickey acknowledged Tuesday that Harris County is currently under an order mandating that businesses require customers to wear masks.

“The Republican Party isn’t considered a commercial entity so they themselves are not required to comply with the mask order,” said Melissa Arredondo, a spokesperson for the office of Harris County Judge Lina Hidalgo, who issued the mask order.

That order expires Tuesday, and Dickey said the party will “revisit” the mask issue during another tele-town hall next month before the convention.

Maybe read the story of Bill Baker, and then rethink this? Just a suggestion. And it truly is ridiculous to be allowed to ban outdoor gatherings of more than 100 people while being forced to allow a much riskier indoor event of thousands of people. I’m sure someone pointed out to Abbott that if he did the sensible thing and allowed all gatherings of large sizes to be banned by local officials, the GOP convention would be immediately canceled. It’s still ridiculous.

And look, if this were only a bunch of Republican activists putting themselves at risk, I’d shrug my shoulders and let them enjoy their “freedom”, for whatever it was worth. But of course, they’re not just putting their own health and safety on the line, they’re endangering everyone who will be working at the convention as well. Those folks deserve better.

The situation has created what union leaders say is a potentially perilous situation for workers at the Hilton Americas-Houston hotel, which is connected to the convention center and expects to see an uptick in guests during the convention. Officials from Unite Here Local 23, the union that represents hotel and other hospitality workers, say health insurance benefits are set to expire for Hilton workers at the end of the month, since many of them were laid off at the beginning of the coronavirus pandemic, leaving them short of the hours needed to qualify for coverage.

Houston First Corp., the city’s convention arm, owns the Hilton Americas-Houston and operates the George R. Brown Convention Center.

Houston First Chairman David Mincberg disputed the union’s claim, saying in a statement to the Chronicle that all Houston First and Hilton employees “will have health insurance coverage (except those who have opted out) while working at the George R. Brown Convention Center or the Hilton” during the convention. Mincberg also said Houston First officials “do not anticipate any part-time workers being utilized.”

Hilton employees are set to lose their health coverage at the end of July if they do not work enough hours in June to qualify for coverage, while those laid off earlier will lose it by June 30. Union officials said nearly 450 employees have been laid off by the Hilton since February, accounting for about 95 percent of the hotel’s employees.

Bo Delp, senior political organizer for Unite Here Local 23, questioned how the Hilton could adequately staff the convention if only 5 percent of its employees are set to qualify for health coverage through the end of July.

“Houston First has made a decision that during a global pandemic, it is going to continue to host events,” Delp said. “The minute they made that decision, from our perspective, they had a moral and public health obligation to make sure that the workers who are coming in as a result of their decision to host events, that they are healthy and safe.”

Mincberg said Houston First lacks the ability to cancel the event or require convention guests to wear masks, even if conditions worsen before mid-July.

“(Houston First) does not have the authority to require safety measures, unless included in the original license agreement. Since this agreement was issued prior to the pandemic, no such provision was included,” Mincberg said.

Catherine Troisi, an epidemiologist at UTHealth School of Public Health in Houston, urged Houston First officials to provide health coverage for hospitality workers and “institute preventive activities” to limit the spread of COVID-19 during large gatherings at the convention center.

“We know that closed spaces, crowded conditions, close contact, and duration of contact all enhance transmission of this virus,” Troisi wrote in a letter to Mincberg on Tuesday. “This convention space includes all of these risk factors and particularly without mandatory masking, transmission of the virus is almost inevitable, both to convention attendees and to hospitality employees.”

Every employee who works this dumb convention should have full health care coverage. Whatever it takes to give that to them, make it happen. And in the future, all contracts for conventions in Houston facilities should include clauses about pandemics and requirements for face masks and following county health mandates. The very least we can do from this experience is learn from it.

Thus endeth this year’s Rodeo

Mar 12th, 2020
by Charles Kuffner.
25 comments

Surely not a surprise.

Mayor Sylvester Turner announced Wednesday the Houston Livestock Show and Rodeo will close due to concerns about coronavirus after a Montgomery County man with no recent travel history tested positive for COVID-19.

The case is the first example of community spread in the Houston region and was directly responsible for the decision to cancel the Rodeo, Turner and Harris County Judge Lina Hidalgo said at a news conference early Wednesday afternoon. Officials also announced that the man likely attended a barbecue cookoff for the Rodeo late last month, though it was unclear if he had symptoms at the time.

Turner said he will sign an emergency health declaration Wednesday that will remain in place for seven days, at which point City Council will decide whether to extend it. Under the declaration, all events produced or permitted by the city will be canceled through the end of March, Turner said. That includes Sunday’s Tour de Houston fundraising bike ride, which officials will attempt to reschedule, according to the mayor.

Rodeo officials said they were “deeply saddened” but agreed with the city’s move to cancel the livestock show and rodeo.

“As hard as this is to do, it is the right thing to do,” said Joel Crowley, president and chief executive of the Rodeo.

It’s a tough choice to have to make, and there’s a real cost to doing it.

The Houston rodeo generated $227 million in total economic impact last year, directly supporting nearly 3,700 jobs in 2019, according to a study by Economic Analytics Consulting commissioned by the Houston Livestock Show and Rodeo last year. The study measured new spending in the Houston region generated by outside visitors and spending by the Houston Livestock Show and Rodeo Inc.

[…]

The cancellation of CERAWeek, which was expected to bring 5,500 attendees from some 80 countries downtown, cost businesses an estimated $7 million in lost hotel, dining, rental and other direct spending, according to Holly Clapham, chief marketing officer for Houston First Corp., the city’s convention arm.

The rodeo’s cancellation is expected to be more costly for the local economy. It’s known as as the world’s largest entertainment livestock exhibition, and it’s one of Houston’s largest tourist events of the year, lasting for nearly the entire month of March and requiring the efforts of tens of thousands of volunteers.

Last year, the event attracted 273,000 out of town attendees during that time.

Economic projections like this, especially when sourced to the event in question, are unreliable. I don’t think anyone would doubt that the city, and especially the people who work at these events, will suffer for not having them. Still, this was the right thing to do, and will be less costly by any measure than continuing on with business as usual. Let us hope that the need for such drastic action will be short term and not longer. The city of Houston’s press release, which declared a public health emergency along with Harris County, is here. Texas Monthly and the Trib have more.

Houston on the short list for the 2020 DNC

Jun 22nd, 2018
by Charles Kuffner.
7 comments

One in three shot at it.

Democratic Party officials have culled the list of potential host cities for the 2020 Democratic National Convention from eight to four, and Houston is still in the mix, Mayor Sylvester Turner said Wednesday.

The mayor kicked off Wednesday’s regular city council meeting with the announcement, noting that Milwaukee, Denver and the Miami area are the other remaining finalists. By the end of the meeting, however, he said he was told Denver had withdrawn its bid, leaving Houston as one of three finalists.

“Our chances have gotten exponentially better,” Turner said. “I’m excited about the proposal we submitted.”

[…]

Turner said he also wants to bid on hosting the 2024 Republic National Convention when the time comes.

“It’s all about marketing and selling the city of Houston,” the mayor said.

See here, here, and here for the background. All three sites have their pros and cons, so it’s probably just a matter of how each bid gets sold to the city. I’m hopeful but not overly optimistic. As for the 2024 RNC, all I can say is that it better be a post-Trump Republican Party by then, or there’s no amount of marketing value that could make it worth the effort. The Trib has more.

Houston submits its DNC 2020 bid

Jun 18th, 2018
by Charles Kuffner.
2 comments

From the inbox:

Houston, recognized for its record of successfully hosting mega-events, today submitted an official bid to host the 2020 Democratic National Convention.

The bid document of about 600 pages shows how Houston’s convention infrastructure and its people put the city in a superior position to host the presidential nominating convention.

The downtown Toyota Center indoor arena and the close-by, expanded George R. Brown Convention Center in the Avenida Houston convention campus would provide the main gathering spaces for the July 13-16, 2020 convention. A Metro light rail system crisscrosses downtown nearby. Delegates and other participants traveling by air would arrive at Houston’s two international airports. Both have a 4-star rating from Skytrax, making Houston the only U.S. city with two.

About 24,000 hotel rooms would be available within 14 miles of the convention sites, placing the city well ahead of other cities on hospitality logistics. A record-high 20 million visitors traveled to Houston in 2016.

Houston’s specialty in hosting major events shone through with the 2017 Super Bowl, the 2016 NCAA Men’s Basketball Tournament finals and the continuing annual Offshore Technology Conference, Houston Livestock Show & Rodeo, Comicpalooza and others.

The city hosted the Republican National Convention in 1992 and the Democratic National Convention in 1928. Houston has since become the fourth most populous U.S. city and its most diverse, attracting new residents from across the nation and the globe. The city is praised as a pluralistic society that lives as one. (“Nothing less than the story of the American city of the future,” – Los Angeles Times, 5/9/2017)

Houston is strong and resilient. The city showed exceptional mettle, bravery and neighborliness in the aftermath of the floods caused by Harvey. “Houston has bounced back from Harvey faster than anyone predicted, inspiring the Twitter hashtag #HoustonStrong,” The New York Times said on 11/23/2017.

“I am confident that we are the right city and this is the right time to bring the convention to Houston,” Mayor Sylvester Turner said in letter to DNC Chairman Tom Perez that introduces the bid package.

“Houston is a proven event town and has excelled in hosting high profile national events,” the mayor said in the letter. “Whether celebratory, such as the Super Bowl or somber, such as the recent memorial events for former First Lady Barbara Bush, we meet the producer’s goals while exceeding expectations with seamless execution and constant attention to public safety.”

See here and here for the background, and here for the Chron story. Video from the Council meeting where the bid effort was discussed and approved is here. Houston has definitely shown it can handle big events, and I’ll be delighted if we win, but we’re one of many, so keep expectations realistic. We should know in a few months.

Reinventing Jones Plaza

Apr 27th, 2018
by Charles Kuffner.
3 comments

Big changes coming to downtown.

Jones Plaza, the often-empty, 1.5-acre public space at the heart of Houston’s Theater District, may finally become a true people magnet courtesy of the second face-lift in its 51-year history.

This time, Houston First Corporation, which operates the plaza for the city, hopes to create an event and dining area that reflects the artful vitality of the plaza’s prime location — a place that will be welcoming day and night for area employees as well as theater patrons and downtown residents.

[…]

Officials said the redevelopment will cost about $25 million, most of which will be raised privately. The Downtown Redevelopment Authority has contributed $5 million. Houston Astros owner Jim Crane and his wife Whitney, along with the Astros Foundation, have contributed $1 million and will spearhead a capital campaign to raise the remaining funds.

With construction slated to begin next month, the project could be complete by late 2020.

Mayor Sylvester Turner called the plaza project a “game-changer” for downtown.

A major initiative of the Theater District Master Plan adopted in 2015, this redevelopment may finally solve a conundrum that has dogged the plaza from since it opened in 1967, in spite of its location next to the Alley Theatre and Jones Hall. Jones Plaza has long been like a forgotten ornament in the city’s jewel box because it was built above the district’s parking garage. Its stepped plaza design, necessary to accommodate the structure below, made access difficult for some. And it’s always been a hard place to beautify with shade trees and plants, since there’s not much soil to work with.

The site was best utilized from the late 1980s through the 1990s as the venue for Thursday night Party on the Plaza concerts that were not a particularly good fit for the surrounding fine arts venues. The Party on the Plaza brand has since been revived and relocated to Avenida Houston in front of the George R. Brown Convention Center.

I have some fond memories of those old Party on the Plaza events. Sure would be nice to find a purpose for Jones Plaza again. I look forward to seeing how this turns out.

County approves Astrodome plan

Feb 14th, 2018
by Charles Kuffner.
8 comments

Like it or not, here it comes.

Take a last look at it

Harris County Commissioners Court voted unanimously Tuesday to move forward with the final design and construction of a $105 million project to transform the cherished piece of Houston’s sporting history into what officials hope will be coveted event space.

“It gives us a huge national story line,” said Holly Clapham, chief marketing officer for Houston First Corp., the city’s main marketing arm. “This, obviously, is a very significant building and we can tell the story of its new life, and serving a new constituency that didn’t know it as the ‘Eighth Wonder of the World.'”

Construction on the project is expected to begin in October and end in February 2020.

“The first thing we have to do is get it back to where it’s structurally sound,” Harris County Judge Ed Emmett said after Tuesday’s court meeting. “Nine acres of open space, under cover, in Houston, Texas, is a big deal. We’ve already been contacted by all sorts of groups that want to come use it, so it’s exciting.”

See here and here for some background, though obviously there’s a lot more to this long-lasting story. I like this idea – unlike so many other proposals, this plan makes sense to me, it’s not outrageously expensive, and it keeps the property in the hands of the public. I’m not sure if it will make sense to keep calling it the Astrodome when all is said and done, but we can cross that bridge when we get to it.

Not everyone sees this as I do, of course, and we’ll be hearing plenty from them.

State Senator Paul Bettencourt, R-Houston, who co-sponsored legislation last year that would have required a public referendum on the Astrodome project, called Tuesday’s vote by Commissioners Court “tone deaf.”

“We just need to recognize the obvious,” Bettencourt said in a statement. “If the county has money to ignore a public vote and refurbish the Astrodome, then they have the capability to offer flooded-out homeowners disaster reappraisal and to cut their property tax rate.”

Bettencourt and Lt. Gov. Dan Patrick have called on local taxing jurisdictions to allow residents whose homes were damaged by Harvey to have their properties reappraised to reflect their lower values.

Through a spokesman, Emmett called Bettencourt’s remarks “ill-informed” and said the project would allow the county to generate revenue for upgrades to the NRG Complex that otherwise would fall on taxpayers.

See here and here for more on the failed bill to require a vote on something that we wouldn’t normally require a vote on, since no bonds are being floated. The preview story goes into the funding source for the remodel.

In response to Harvey, the county is poised to call a bond referendum of at least $1 billion to pay for flood control projects, and Commissioners Court has imposed tougher regulations on new development in floodplains, as well as authorized up to $20 million to facilitate buyouts of Harvey-flooded homes.

Of the $105 million cost to renovate the dome into convention and meeting space, about a third would come from the county’s general fund, largely made up of property tax revenue. The other two sources — hotel occupancy taxes and parking revenue — would not be used for flood control Harris County Judge Ed Emmett said.

“We’re the third largest county in the country. We’re having to renovate a lot of buildings. This is another building,” Emmett said. “We need to renovate it and make it usable.”

He added that $35 million “does not go very far flood control-wise” when billions of dollars in improvements and repairs are needed.

People are going to have feelings about this, that’s for sure. There’s no direct vote on the Dome plan, but there will be that bond referendum, and Ed Emmett will be on the ballot, so the politics of this could work out in a number of ways. I’ve said my piece. We’ll see what develops from here.

Super Bowl economic impact was about what we expected

Jun 4th, 2017
by Charles Kuffner.
2 comments

Not too bad.

The receipts are in, and February’s Super Bowl LI appears to have been a substantial boon for Houston — albeit with slightly less spending than expected.

Gross spending during the nine days of Super Bowl programming, minus the amount of usual tourism displaced by the event, came to $338 million, according to a consultant retained by the Host Committee. That’s a bit off the $372 million originally projected by the same firm, Pennsylvania-based Rockport Analytics.

The discrepancy occurred because the costs of goods and services were lower than expected, even though the number of out-of-town visitors was higher than anticipated, at 150,000, according to Rockport Analytics. In particular, visitors spent about half of what was expected on rental cars because of the availability of car-sharing service Uber and special Metro routes.

Host Committee Chairman Ric Campo, the CEO of apartment developer Camden Properties, said that should still be counted as a win for Houston, since it allowed more people to come to the party.

“One of the things that the Host Committee really worked hard on was affordability,” Campo said. “We didn’t want you to have to go to Discovery Green and spend $100 to feed your family.”

The total impact includes $228 million spent on wages and $39 million spent on state and local taxes. Although that number was about $6 million lower than projected, it was more than enough to pay back the state for the $25.4 million the state advanced the Host Committee, with $15 million in proceeds.

[…]

In addition to the financial impact, officials played up the the game’s halo effect for the city’s image, and the benefit of catching the interest of potential customers. Houston First President Mike Waterman said several of the 16 convention organizers he brought down to see the event have committed to bringing conventions to the city.

“We weekly get customers coming to Houston and saying they saw us shine during the Super Bowl, and now they’re interested in booking a meeting here,” Waterman said.

Let’s hope Greg Abbott and Dan Patrick don’t ruin that by forcing a bathroom bill down our throats. The one economic impact estimate I saw before the Super Bowl pegged the haul at $350 million, so it was pretty darned close. I’m glad all these people came to visit, I’m glad they had a good time (and spent some money), and given that we’re preparing a bid for the 2024 Super Bowl, I hope they’ll want to come back. Assuming our leadership doesn’t take the good impression they went away with and turn it into trash.

AirBnB tax collection deal

Apr 19th, 2017
by Charles Kuffner.
2 comments

Seems reasonable.

[AirBnB] announced Wednesday it will begin collecting and remitting the 6 percent state hotel occupancy tax May 1. The decision followed more than a year of talks, said Laura Spanjian, Airbnb’s Texas public policy manager. Airbnb has similar tax-collection agreements with 25-plus states.

“These agreements are a meaningful revenue boost for communities, and we hope to reach similar agreements with cities around Texas soon,” Spanjian said by email.

Houston homeowners who rent out their properties are supposed to pay a total of 17 percent in occupancy taxes, 7 percent of which goes to Houston First, which oversees hotel tax collection for the city.

Yet of the 7,200 active hosts Airbnb says operate in the area, only 70 have registered with the city as taxpaying hosts, said Jonathan Newport, Houston First’s director of government affairs.

[…]

Under the new agreement, the state portion of the hotel-occupancy taxes will be guaranteed. Guests will be charged the correct amount on their bill for a stay of 29 nights or less, and Airbnb will then remit the collected taxes to the state.

“The sharing economy plays an important role in our state’s overall fiscal health,” Texas Comptroller Glenn Hegar said in a statement. “We applaud Airbnb for agreeing to collect state hotel occupancy taxes, as all lodging facilities in Texas are required to do.”

See here, here, and here for some background. This is a positive step, as it gets some revenue that otherwise would have been lost for the city while giving AirBnB some regulatory certainty. People want to use AirBnB, and as seems to be the case with everything these days there’s a bill in the Legislature to override local restrictions on it, so this is another level on which it makes sense for the city to reach a deal with them. Hope it works as intended for everyone.

The Super Bowl economic impact calculators have figured out it’s all a game

Jan 16th, 2017
by Charles Kuffner.
1 comment

They’ve adjusted their methods in anticipation of your criticisms.

With less than a month to go before the big day, let no one say that Super Bowl LI — as an economic event, not a football game — has been inadequately forecast.

We’ve already seen two studies on the financial boost that the two-week extravaganza is expected to provide to the Houston area: One from a consulting firm hired to figure out how much hospitality tax revenue the state should provide in advance, and another from a local bank. They ranged pretty widely in their predictions and definitions, making it difficult to know what benefits to expect.

Now comes another study from the Host Committee, this one designed to capture the new money that will flow to Houston as a result of the game and all the programming around it. The headline: The city will net $350 million from the whole affair, which appears to be in the middle of the range of windfalls from Super Bowls past.

Aware of the skepticism surrounding previous in-house analyses, the consulting firm that performed it — Pennsylvania-based Rockport Analytics — emphasizes that it doesn’t count anything that shouldn’t be counted. “One of the reasons why we tend to be hired by events like this is that we produce conservative estimates,” says managing director Kenneth McGill.

As such, the firm took the overall expected amount of Super Bowl spending — based on a budget provided by the Host Committee and data from past Super Bowls — and subtracted out both the typical amount of tourism the city sees during this time of year and the spending that’s likely to leak out to other states and cities. It included the amount the city would be spending on the event, about $5.5 million, as a net gain; city officials have said the Host Committee will reimburse all of those costs.

That got them down from from $450 million to the ultimate $350 million, which is slightly more than the $338 million that Rockport is forecasting for next year’s Super Bowl in Minneapolis — a number that has already come under fire from independent sports finance experts — and the $277.9 million it determined that Indianapolis reaped from hosting the event in 2012.

I don’t really have a point to make, I’m just always entertained by these economic impact estimates. It would be nice if we were systematic about comparing the post-event data to the pre-event projections, so that we could make better projections in the future, but we don’t, and I’m not even sure we could. So take these as I do as mostly for entertainment value, and it’s all good.

Does it matter why infrastructure was improved?

Nov 16th, 2016
by Charles Kuffner.
Comments are off for this post

I say no, but maybe that’s just me.

In the days leading up to the nation’s biggest sporting event, thousands of visitors will use Broadway to travel from the airport to downtown hotels and other spots. Work on gravel paths, trees and lighting is expected to be done by the end of the year, one of a series of projects across the Houston area aimed at polishing the city’s image.

It’s an effort that Hollinquest, 57, can appreciate. But she can’t help but think about the discolored, sagging second-story walkway in her apartment that isn’t being fixed.

Others living along the street talk about speeding cars putting pedestrians at danger, or the shooting that recently happened a block away from the corridor in daylight. They represent the real problems that will likely remain even after millions of dollars in infrastructure and beautification projects are completed, a juxtaposition that hasn’t gone unnoticed by residents.

“It’s a shame they want to improve stuff just because the Super Bowl is coming,” said Hollinquest.

Such spending raises a question of priorities, said Victor Matheson, a professor at Holly Cross in Worcester, Mass., whose research has questioned the economic impact of events like the Super Bowl.

Matheson acknowledges that the Super Bowl brings in necessary investment to neighborhoods that might not otherwise occur. But it tends to be in areas frequented by tourists.

[…]

The east side of downtown is being transformed with the investment of roughly $300 million in hotel taxes by Houston First, the city’s convention agency. A renovated George R. Brown Convention Center is having its façade opened up with walls of glass offering sweeping views of Discovery Green park and a reinvented Avenida de las Americas below, with the street shrinking from eight lanes to two to better accommodate pedestrians and restaurants boasting sidewalk patios.

The convention center and the adjacent Partnership Tower – a 10-story edifice, also built by Houston First – offer a good view of the new 1,000-room Marriott Marquis and an accompanying parking garage, which benefitted some from hotel tax revenue.

The area around NRG Stadium has also seen significant work. A redevelopment authority for the area around the stadium has raised more than $3 million for road maintenance, new sidewalks, trees, other greenery, new signs and LED street lights.

The city’s public works department is also carrying out $7.7 million in repairs on 3.8 miles of roads around the stadium – chiefly Main, Fannin, Cambridge and Westridge – either by laying fresh asphalt or replacing damaged portions of concrete streets.

I get that areas that are more visible to visitors are being prioritized, and that the areas that are getting worked have mostly needed it for a long time and still need more than what they’re getting. You do have to wonder how long some of this stuff would have been left undone had it not been for the Super Bowl. But in real life stuff gets done only because of some external stimulus all the time. Sometimes events do change priorities. And in this particular case, the cause of the changed priorities was also the source of some of the funding to pay for it. Most of what is being done will last well past the game itself. I say the fact that it all got done is what matters.

Time once again to talk about the Super Bowl and its economic impact

Nov 7th, 2016
by Charles Kuffner.
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We’re less than 100 days out from Super Bowl LI here in Houston. I don’t know how much people who are not directly involved in the planning and execution of it are thinking about that.

The economic benefits of hosting a Super Bowl and other major events have long been a matter of debate, however. Houston’s host committee has yet to release its impact analysis, but these reports typically estimate that Super Bowls generate economic activity in the hundreds of millions of dollars. Academics who study such events generally find the added activity, with all the costs taken into account, is much smaller.

“I can’t tell you whether there will be a zero net impact or a modest positive one,” says Andrew Zimbalist, an economist at Smith College who has long studied the sports industry, “but it’s not going to be large.”

Houston, though, may be better prepared to benefit from the Super Bowl than other cities, for several reasons. First, there isn’t much winter tourism in Houston to displace, as in other Super Bowl cities such as New Orleans and Miami, so the net gain here is much greater. Second, Houston’s hospitality industry needs the business, with new hotels built during the shale boom struggling with lower-than-expected occupancy rates as business travel declined.

Third – and perhaps most important – the city really could use a period of prolonged exposure to show business leaders and the millions watching at home that it’s not just a stodgy oil town like it was in the early 2000s.

[…]

The accounting firm PwC has estimated the economic impact of the Super Bowl since 2003, pegging the game’s value to Houston in 2004 at about $130 million in direct spending. It estimated that the last Super Bowl, number 50, was worth $220 million to the San Francisco Bay Area.

Cities have gotten better at making the most of Super Bowl week, said Adam Jones, a PwC analyst. By planning events within a relatively small radius so visitors spend more time on experiences than getting to them, cities can capture greater returns.

Houston has done that, with NFL Live at Discovery Green — a 10-day music and food-filled festival open to the public — only a few minutes from NRG Stadium via light rail or taxi. Additional bus and shuttle lines will be available should guests want to venture to the Galleria as well.

“What we’ve seen within the past five years is communities going out, learning what has worked, what hasn’t worked in cities that preceded them,” Jones said. “We continue to see year over year improvement in the model.”

University of Houston economist Bill Gilmer looked at additional tax revenues generated during the 2004 Super Bowl, about $5 million, and estimated the 2017 edition would bring in an extra $6.6 million in sales taxes for the city plus another $2.2 million in hotel occupancy taxes and $6.8 million for Metro.

Longer-term benefits are harder to measure. The city’s tourism promotion arm, HoustonFirst, said it was able to go after bigger conventions when the Hilton Americas was completed in 2004. That added 1,200 rooms directly connected to the convention center, and the Marriott Marquis will have a similar effect. The city booked a record number of room nights for future conventions in 2015 and expects to break the record again this year, according to HoustonFirst.

We’ve discussed this a few times before. I’m sure that the economic benefit of hosting a Super Bowl is generally overstated, but I do think there is a benefit, and I do think it’s possible that cities have learned from past experiences and academic study to maximize the benefit that is available to them. As the story notes, Houston doesn’t have much tourism trade to displace, but we do have an extensive food-and-drink sector of our economy that will surely enjoy having all these out-of-towners around. The spending that has been done on infrastructure is spending that needed to be done, and which will be a public good long after the Super Bowl people have gone home. In the end, someone will put out a number, and we can make of that what we will. Whatever that number is, I expect the city of Houston will look back on this experience and decide that it was worth it.

“Space City” fight escalates

Apr 27th, 2016
by Charles Kuffner.
1 comment

It’s getting real.

The Greater Houston Convention and Visitors Bureau is asking a federal judge to stop a rival comic convention from using the phrase “Space City” for its three-day festival scheduled for NRG Center over Memorial Day weekend.

The convention bureau filed a request Friday for a temporary restraining order to prevent Space City Comic Con from continuing to use the phrase the bureau trademarked 12 years ago to promote the city.

The bureau owns 50 percent of another comic convention, Comicpalooza. That show is scheduled for the George R. Brown Convention Center in mid-June.

U.S. District Judge Nancy F. Atlas heard the request at 3 p.m. Monday, but did not issue a ruling. The dispute has been brewing for months but reached the courthouse earlier this year when the bureau sued Space City Comic Con along with its owner George Comits over alleged trademark infringement. The bureau is seeking profits from previous shows in which Comits used “Space City” as part of its name.

That was the early story. The judge has since declined to issue the TRO to the Visitors Bureau.

Instead of a court order, she suggested a much simpler solution: adding a disclaimer on tickets and brochures that Space City Comic Con event is not affiliated with the Greater Houston Convention and Visitors Bureau.

“I’m not prepared to shut the conference down,” Atlas said.

[…]

The convention bureau calls Comicpalooza, which drew about 45,000 visitors last year, “Houston’s Official Comic Con.” In its request for a temporary restraining order, the bureau said the use of “Space City,” is causing irreparable harm to its business of promoting tourism, trade and conventions in the Houston area.

Not only will it likely cause public confusion, it will also destroy the bureau’s goodwill and reputation with its current and prospective customers, the convention bureau said in court documents.

During the hearing Monday, Atlas pointed out that the bureau’s arguments gave her pause, since many businesses already use “Space City,” a nod to Houston’s long-time connection to the space industry through NASA’s Johnson Space Center. She also questioned why the bureau waited so long to seek a restraining order after filing suit in February.

[Space City Comic Con owner George] Comits testified that the bureau won’t even put Space City Comic Con on its calendar of events because of its investment in Comicpalooza. Atlas was surprised to learn that the convention and visitors bureau had a financial interest in Comicpalooza. “Really?” she asked.

See here for the background. Judge Atlas has scheduled a hearing on the request for the TRO today at 8 AM, so we could have an answer to that part of the fight shortly. I personally remain lukewarm to the idea that “Space City” is a term that requires traademarking or that people will be confused by two different events at two different locations in two different months, but then considering how little information people have about other things, I can see an argument. I like the disclaimer suggestion and hope the two sides can work this out peacefully.

We Heart Houston…someplace else

Apr 2nd, 2016
by Charles Kuffner.
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A popular piece of public art is looking for a new location.

It’s difficult not to smile while driving east on I-10 when passing the “We Heart Houston” sculpture near the Patterson St. exit in the Heights. Since 2013, the colorful, 20-foot-tall work has been a great sight for those with pride in Houston. However, the sculpture’s days there are numbered.

The good news? Houston is getting a larger, more substantial sculpture touting our arts scene in its place. “Art is Everywhere Houston” is on the horizon, and promises to make an even greater impact.

The “We Heart Houston” sculpture’s new location is currently under consideration according to the artist, 89-year-old David Adickes. A prolific and treasured local sculptor, Adickes has numerous larger-than-life works to his credit including “Virtuoso” at the Lyric Center, the enormous President’s Heads, and the 76-foot-tall Sam Houston on display on I-45 in Huntsville.

Adickes is working with the Houston First Corporation to review options. Houston First is the agency charged with enhancing the quality of life in our city, as well as advancing economic prosperity, and the city’s image with the world.

“At first we thought we would move it in front of the Hobby Center on the slope of Buffalo Bayou,” Adickes said. “As people drove by, the skyline would have formed a backdrop for the piece. It was the perfect spot.”

Well, not exactly perfect, as it turns out. The portion along Buffalo Bayou chosen for the sculpture routinely floods. Decision-makers concluded that it was only a matter of time before a photograph of a half-submerged “We Heart Houston” sign saturated the internet – not exactly an image the city wants to project.

‘My next choice of locations is on the jogging path as it runs near Stude Park in the Heights. People could still see the sculpture from the street as they drive by, and it would lend itself to joggers and people in the park taking selfies. That’s another good solution,” stated Adickes.

Why the big move? Since the sculpture’s placement on Adickes’ 3,000-square-foot sliver of property along the feeder of I-10, a large town home development was constructed be hind the work. Then, another wall was built between the town homes and the sculpture itself. The aesthetics no longer fit, says Adickes

“Another reason we’re moving ‘We Heart Houston,’ is safety,” said Christine West, Cultural Programs Manager with Houston First. “It’s popular, and people want to stop and photograph themselves standing with sculpture, but it’s dangerous to do that where it is. There’s no parking along the feeder road and traffic whizzes by there. Houston First wants to place it where people and families can enjoy it without risk, and we can actively maintain it.”

Sounds reasonable to me. As you know, I’m a longtime fan of Adickes’ work, and my kids love this particular piece, so I’m glad it will be moved to a place that is safer and more convenient for taking pictures. I feel confident it will be making an appearance on my Facebook wall in the near future.

“Space City” trademark lawsuit

Mar 12th, 2016
by Charles Kuffner.
3 comments

Fascinating.

Houston’s convention bureau is suing the operators of a popular local convention over the use of “Space City” in its name, claiming it infringes on a 12-year-old trademark.

The convention in question, Space City Comic Con, also happens to compete with a similar event that is half-owned by the Greater Houston Convention and Visitors Bureau itself. The bureau acquired a 50 percent stake in the more established Comicpalooza last September, spokesman A.J. Mistretta said.

Both events bring in television and film stars for appearances that attract thousands of autograph buyers. Fans come dressed as their favorite characters from science fiction, anime and super-hero fantasies to browse exhibits, purchase items from vendors and play video and table-top games. The fests charge comparable admission fees.

The convention bureau, which declined to discuss the case for this article, may believe it’s losing money if people are confused over which show is sponsored by the economic development arm of Houston, said Betsy Gelb, professor of marketing and entrepreneurship at the Bauer College of Business at the University of Houston. She agreed that if it managed to trademark “Space City,” it has every reason to defend it in court.

But, she added, “Does it help your image to do this?”

[…]

The convention bureau claims in its lawsuit in federal court in Houston that through its promotional efforts, “Space City” has become widely known in the United States and that Space City Comic Con is causing “irreparable harm” by using the trademarked name.

The bureau is seeking a court order to force the show to stop using “Space City.” The lawsuit also would require the company to give up any profits earned from using the trademark and stop competing unfairly against the bureau.

Gotta admit, in almost 30 years of living in Houston, I don’t think I’ve ever thought of it as “Space City”. Speaking as a longtime Rockets fan, on those occasions when I feel the need to attach a nickname to Houston, “Clutch City” is by far the most likely moniker to come to mind, however outdated that may be by now. “Bayou City” is a distant second. I get “Space City”, of course, and if the GHCVB thinks that has value and specific meaning, I won’t argue. It’s just not something that naturally occurs to me. My guess is that in the end the Space City Comic Con will rebrand itself and that will be the end of this. I don’t know that that will happen in time for this year’s Con, which as always happens over the Memorial Day weekend and for which marketing is underway. The Space City folks say on their Facebook page that they have not been contacted for comment about this, despite what the Chron story says, and they encourage their fans to contact the GHCVB to tell them what they think about this. So it could get quite contentious, but in the end I do think some kind of settlement will be reached. Taking this to a courthouse won’t be good for anyone but the lawyers.

Another look at AirBnB

Feb 6th, 2016
by Charles Kuffner.
1 comment

Interesting.

The hotel industry is starting to object. On Wednesday, a report funded by a national trade group claimed some Airbnb hosts function illegally and operate essentially as full-time hotels without the same health and safety oversight. It also says they can reduce the number of affordable options for full-time renters.

The home-rental site has stirred tensions in cities such as New York City, San Francisco, Paris and Barcelona. Austin has created new short-term rental regulations as a result.

In Houston, which does not have similar regulations, the city’s primary tourism agency is working with Airbnb and similar operators about taxes.

A city of Houston spokesman said Wednesday that the state is responsible for health and safety regulations that affect short-term rentals. But a spokesman for the Texas Department of State Health Services, which regulates hotels and bed-and-breakfast operators, said it does not have a role in Airbnb or short-term rentals.

Houston is the state’s second-largest Airbnb market, behind Austin, and officials are preparing for an increase in tourism around the 2017 Super Bowl. It was one of a dozen large U.S. cities included in the American Hotel & Lodging Association study released Wednesday by Pennsylvania State University’s School of Hospitality Management. Researchers tracked Airbnb data from a 13-month period.

“This study shows an explosion in activity among multi-unit hosts and the rise of full-time operators in each of the 12 markets we analyzed. Further, operators renting out three or more units represent a disproportionate share of revenue with only 7 percent driving more than $325 million in the period studied,” said John O’Neill, the Penn State professor who directed the research and is director of the school’s Center for Hospitality Real Estate Strategy.

The study found that nearly 30 percent of the revenue generated from hosts comes from people operating as full-time landlords, or 360 days a year. Individuals or entities renting out two or more residential properties on Airbnb account for 17 percent of hosts and drive nearly 40 percent of the revenue in those markets, according to the study.

The report found that in Houston there are 30 full-time operators who rent out their space for at least 360 days a year, generating $3 million in revenue during the 13-month period studied. In all, 956 hosts generated a total of $11 million in revenue, the report said.

It found 83 hosts operating three or more properties and 82 others with two units.

A copy of that report is here. AirBnB has disputed its findings and released its own report about its potential tax revenue for cities. I have no judgment about who is right or wrong in their facts and figures, I’m more interested in how cities are going to react to AirBnB, which I presume they’re going to have to do sooner or later. So far it has not been on the radar in Houston, but it has been in Austin and may be in San Antonio and elsewhere. I’ll be a little surprised if we see AirBnB regulation on the Council agenda in the near future, but if there’s any indication that it’s negatively affecting hotel tax revenue that could change.

Houston gets a Bitcoin ATM

Dec 16th, 2014
by Charles Kuffner.
Comments are off for this post

Just what you were waiting for, I’m sure.

Houston unveiled its first bitcoin ATM on Wednesday, hoping to attract international travelers and more conventions to the George R. Brown Convention Center.

Bitcoin is like digital cash. And this ATM, on the downtown center’s second floor next to a Starbucks, allows users to convert cash to bitcoin and vice versa.

“Houston First always wants to be the first in offering amenities to its attendees and guests,” said Mark Goldberg, assistant general counsel for Houston First Corp., the quasi-public organization that manages the convention center. “With us now having this ATM machine … we’ve proven that we’re on the cutting edge of technology.”

Bitcoin is gaining momentum in Houston, although the adoption rate here lags behind Austin and Dallas, said Adam Richard, president of the Houston-based nonprofit Texas Coinitiative.

He predicts local awareness will continue rising as Apple Pay makes consumers more familiar with digital payments and as merchants begin offering incentives for people to pay with bitcoin.

“The interest keeps rising every week,” he said. “I’m excited to see where we’re going to be in a year from today.”

[…]

The downtown convention center’s ATM charges a 5 percent fee based on the real-time market rate for bitcoin. A user can create an account at the ATM. Then, each time the ATM is used, a text is sent to the user’s phone with a six-digit authentication code. This number needs to be typed in to the ATM, for security purposes, before any transactions can be made.

Weisfeld said he believed this ATM would help attract business to the convention center.

“The bitcoin community is the world’s largest loyalty population,” he said. “People that have bitcoin around the world have a tendency to want to do business in places that will do business in bitcoin. So we see the George R. Brown Convention Center establishing a first that is going to bring conventions to Houston.”

These types of ATMs can also be a draw for international travelers. Michael Cargill, who installed a CoinVault ATM at his Central Texas Gun Works in Austin in March, said visitors from other countries come in to exchange their virtual currency for U.S. dollars.

“We’re keeping up with technology,” he said. “A lot of gun stores are still on fax machines.”

Well okay then. I’m still not convinced that Bitcoin is going to go the distance, but certainly there are people who use it now. I rather doubt there are that many people who base their travel or business location decisions on the presence or absence of a Bitcoin ATM, but I will readily concede that a large international city like Houston ought to have one. So good on Houston First for making this happen.

Transforming the GRB Convention Center

Aug 20th, 2014
by Charles Kuffner.
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I don’t think I’d realized that there was a renovation of the George R. Brown Convention Center in the works, but after reading this story, I’m excited about it.

George R. Brown Convention Center

By late next year, people strolling the George R. Brown Convention Center plaza can take in restaurants, sidewalk cafes, landscaped walk-ways and a water fountain. At night, if all goes according to plan, they’ll be treated to a fog and light display.

By the time the Super Bowl rolls around in 2017, the plaza is expected to host a party for 100,000.

Those plans are much grander than when the project was initially bid a year ago. They evolved into a full-blown re-imagining of the area surrounding eastern downtown’s Discovery Green park.

Marie Hoke, a principal at WHR Architects and the project’s lead architect, says she has never worked on a design job that has expanded as much as this one – fitting, perhaps, given the 48-year-old Houstonian’s self-described penchant for “stretching, reaching and not leaving well enough alone.”

Hoke spent her earliest years in her mother’s hometown of Quito, Ecuador. She said she feels at home in a melting pot city like Houston, a place “where you don’t have to leave your culture of origin behind.”

“There is an opportunity to synthesize who you are into something new. We’re all kind of hybrids in Houston, comfortable with each other’s cultures.”

[…]

The original proposal Houston First sent to the architectural firms was more modest, Hoke said. It called for a mixed-use parking garage with some office space, and it included a vague reference to making the convention center more pedestrian-friendly.

After Hoke’s team won the bid, she and representatives of WHR and Houston First visited convention centers in other U.S. cities and came back with “game-changing” ideas, she said.

In Anaheim, Calif., they realized they could take buses off the front of the convention center and have drop-offs at the building’s sides, she said. In Chicago, they saw beautifully integrated public art.

A plan to add three restaurants in the area has grown to eight or nine.

And after Hoke brought SWA landscape architects on board, the project “caught fire” with ideas for the plaza, she said.

The city’s Public Works Division and Houston First are in talks to change the lane configurations on Avenida De Las Americas to allow more room for people to roam in the plaza, she said.

Once completed, the plaza “will take on the feeling you have in Discovery Green and extend it to the convention center,” Central Houston president Bob Eury said.

David Crossley, president of Houston Tomorrow, a group focused on local quality-of-life issues, said: “This is really beautiful stuff and revolutionary in Houston.”

That’s quite the endorsement. Discovery Green has been transformative, not just in the sense of turning an ugly vacant lot in an unloved part of downtown into a beautiful and heavily used city park, but also in the sense of spawning a lot of good construction around it, some of which is still underway. As someone who works within walking distance – or at least B-cycling distance – from Discovery Green and the GRB, I’m definitely intrigued by that news about the eight or nine restaurants. We’ve been hearing about this for almost three years now, and we’re still a ways off from its completion. I’m really eager to see how it all turns out.

The Super Bowl is making us get stuff done

Apr 13th, 2014
by Charles Kuffner.
1 comment

Nothing like a deadline to focus the mind.

The 2017 Super Bowl not only will drive thousands of football fans to Houston, it will put a hard deadline on projects from office and hotel construction to a light-rail extension, a local developer said Wednesday.

Ric Campo, CEO of Houston-based Camden Properties and chairman of the Houston Super Bowl bid committee that successfully lobbied the NFL for the big game, said over the next three years developers and the city plan to invest $3.5 billion in downtown. By contrast, he said, the business community and city have invested a total of $5 billion there over the last 14 years.

“It creates incredible deadlines and amazing pressure to get projects done,” he said. “We’re trying to turn downtown into a 24-hour city.”

Campo told a real estate group at its monthly meeting that the Super Bowl would have a combined $500 million positive impact to the city.

He cited several projects that are now under pressure to finish in time, including a Hampton Inn and Homewood Suites, a Hyatt Place, the Marriott Marquis Convention Center Hotel and a Spring Hill Suites. At least six planned residential towers and seven office projects planned for downtown are expected to be completed in time for the big event.

As you know, there’s nothing I like more than an economic impact estimate for a major sporting event. At least for this major sporting event, the construction work being done is for things that will have a benefit for the city before and after The Big Game and would have been good to have even in the absence of said game. Now that I work downtown I have a much better appreciation of all that’s going on there. All this construction is a pain to deal with now, but it’ll be great once it’s finished. It’s reassuring to have a deadline for that.

Finally doing that front door facelift

Jan 26th, 2014
by Charles Kuffner.
Comments are off for this post

Better late than never.

Renovations started this week on the historic Sunset Coffee Building at Allen’s Landing on the north end of downtown.

The more than 100-year-old structure, now behind a fence as construction begins, is getting a $5.3 million facelift from Houston First Corp. and Buffalo Bayou Partnership. They hope the new design will reconnect the bayou with downtown Houston.

The building sits on a spot often referred to as “Houston’s Plymouth Rock,” according to a joint announcement Friday from the Partnership and Houston First. Brothers August Chapman Allen and John Kirby Allen established Houston there in 1836.

[…]

The project should be completed in about one year. At that time the building will have an outdoor plaza with refreshment and rental facilities for runners, canoeists, kayakers and bikers. The first level will be office space for the partnership and the second level and a rooftop terrace will be used as event space.

A walkway will connected the building to Commerce Street. Ultimately, the building will connect to Buffalo Bayou’s trail system that stretches to Shepherd Drive.

We first heard about this almost a year ago. At the time, the plan was for work to begin in April, 2013. I don’t know what caused the delay – this story doesn’t indicate – but at least it’s getting started now. I can’t wait to see what it looks like when it’s finally done.

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