BG Reads | News You Need to Know (April 2, 2021)
[BINGHAM GROUP]
BG Podcast EP. 136: Q1 2021 Review: Austin's Residental Real Estate Market
Today's episode (136) features a conversation with Austin Board of REALTORS® CEO Emily Chenevert.
She and Bingham Group CEO A.J. discuss the Q1 2021 performance of Austin’s residential real estate market.
You can listen to all episodes on Spotify, Apple Podcasts, and SoundCloud. New content every Wednesday. Please like, link, comment and subscribe!
[MEETING/HEARINGS]
[THE 87TH TEXAS LEGISLATURE]
LINK TO FILED HOUSE BILLS (5,389)
LINK TO FILED SENATE BILLS (2,496)
[AUSTIN METRO NEWS]
Ballot item backers report $100K in donations (Austin Monitor)
Austinites for Progressive Reform, the group that’s sponsoring propositions D, E, F, G and H on the May 1 ballot, has reported raising more than $100,000 since the beginning of the year to fund its campaigns. The group has spent more than $50,000 and has cash on hand of more than $69,000, according to its latest report.
The largest donor appearing on the report was Jonathan Soros, son of George and CEO of JS Capital Management, who gave the group $25,000. APR describes Jonathan Soros as “an advocate for campaign finance reform and the abolition of the electoral college.” The elder Soros is well-known for his philanthropy to progressive and Democratic causes.
APR’s leaders include entrepreneur Andrew Allison and political consultants Jim Wick and Laura Hernandez, among others, but it was Allison’s initial funding that got the group moving and gathered signatures to place four items on the ballot. The propositions would establish a strong-mayor system for Austin’s city government; change the date of the mayoral election to coincide with presidential elections; establish ranked-choice voting if and when it becomes legal in the state of Texas; and give each Austin voter a $25 voucher to contribute to the Council candidate of their choice and a second $25 voucher for a mayoral candidate during mayoral election years.
Several national groups contributed to the effort, including Stand Up America, Represent US and End Citizens United, each of which gave APR $5,000. Campaign manager Jim Wick said, “The support we have received from national democracy reform leaders shows the critical importance of these amendments to the national fight for a stronger democracy.”
Other contributors include Nav Sooch, chairman of Silicon Labs, whose donation is listed at $20,000. Eugene and Steven Sepulveda donated $5,000 during the three-month time period, and entrepreneur Christopher Clayton of Jackson, Wyoming, donated $5,000.
Other contributors include winemaker and philanthropist Suzanne Deal Booth, who donated more than $5,000, and digital entrepreneur Todd Dipaola of InMarket, who donated $2,500. NAACP President Nelson Linder and Mimi Marziani, executive director of the Texas Civil Rights Project, also donated to APR.
According to a news release, APR has raised $271,440 to date and spent nearly $293,000. In addition, APR has received $92,000 in loans. The group says that “more than 50 percent of the campaign’s expenditures to date are attributable to the campaign’s successful community engagement process and petition drive.” The group reported holding 17 meetings over a one-month period. During the petition drive, APR collected about 24,000 signatures to place its proposals on the May 1 ballot.
Another group, Austinites for Democracy Dollars, which supports Proposition H to give voters vouchers for candidates, reported raising $9,500 and spending a little more than $5,300 between Jan. 1 and March 22. Contributors include developer Perry Lorenz, who donated $2,500, and retired businessman Kim Kyongmee, who donated $2,000. Tracy DiLeo, a partner at the Killam Company, donated $1,000. Other contributors with familiar names include Linda Bailey, Joyce Basciano, William Burkhardt, Michael Hebert and David King, all of whom have been involved with city government.
Early voting for the May 1 election starts on April 19 and continues through April 27… (LINK TO STORY)
Real estate developer Ari Rastegar, the 'Oracle Of Austin,' on how Covid will change American cities (Forbes)
He closed 11 major commercial real estate deals during the Covid-19 pandemic. This came after years of telling anyone who would listen how much opportunity there was in the central Texas capitol city many refer to as Silicon Hills. His proclamation earned Ari Rastegar the moniker ‘Oracle of Austin’.
But Ari Rastegar isn’t stopping with Austin.
“Austin was our prototype to establish and then expand around the Sun Belt,” says Rastegar, founder of Rastegar Property Company, an Austin-based CRE investment firm & vertically integrated real estate company with a focus on value-oriented real estate. Austin was our prototype to establish and then expand around the Sun Belt,” says Rastegar, founder of Rastegar Property Company, an Austin-based CRE investment firm & vertically integrated real estate company with a focus on value-oriented real estate.
“Nashville, Dallas, Phoenix, Raleigh and Tampa - the Sun Belt is hotter than it has ever been, and we see no end to the migration. You think Austin is exciting?” says Rastegar. “Get ready!”
For years he watched droves of young professionals making their way to Austin, and he took careful note. That’s why, when the pandemic hit, Rastegar realized it would only expedite these migration trends. He utilized this insight and his uncanny ability to see around corners to position and propel Rastegar’s business plan forward. Now, that vision is bearing its fruit as companies like Apple, Facebook and Amazon invest long term in the city where he was born. Rastegar’s keen understanding of his hometown —- where he made his first real estate deal while in law school — gave him the advantage of knowing exactly where the young professionals coming to the city would want to live and the type of housing that would appeal to them.
Then Tesla chose Austin for its $1 billion Gigafactory and Oracle announced it was moving its headquarters to the Texas capital, solidifying Austin as a world tech hub.
“I was already focused outside the urban core,” he says, with the exception of 1899 McKinney in Dallas. “We were going vintage multifamily, fixing those properties up to 2021 standards. So Covid actually accelerated our business plan.”… (LINK TO STORY)
Fire damages Buford Tower in downtown Austin, officials say (Austin American-Statesman)
Fire damaged the historic Buford Tower in downtown Austin on Thursday evening but is now under control, according to Austin fire officials.
Austin firefighters were trying to put out a fire near the structure earlier in the evening. Around 9:20 p.m. Thursday, Austin fire tweeted that the fire had spread to the tower.
The fire department tweeted shortly before 9:30 p.m. that the fire was under control and added that the damage was mostly limited to the exteriors and the windows of the structure, which is located at the intersection of Cesar Chavez and Colorado streets.
Fire officials said the fire that spread to the tower is believed to have stemmed from a camp near the structure that is occupied by people who are experiencing homelessness… (LINK TO STORY)
Group aiming to bring back Austin's homeless camping ban raises $437,000 (Austin American-Statesman)
Thursday marked 30 days before Austin's municipal election, meaning the political action committees that are raising funds for and against causes faced a deadline to submit financial disclosure reports.
Not surprisingly, much of the action was driven by the ballot proposition on the city's homeless camping ordinance.
Save Austin Now, the PAC whose leaders are seeking to reinstate the camping ban that the Austin City Council repealed two years ago, reported raising $437,000 through March 22. The report showed the PAC spent 319,000.
A financial report for the PAC in opposition to the ban, Homes Not Handcuffs, showed $23,000 in contributions and $423 in expenditures. The contributions, most of them small, came from roughly 350 donors.
The committee's treasurer, Heidi Sloan, is a former U.S. congressional candidate who identifies with the Democratic Socialists of America.
The camping ban will appear on ballots as Proposition B. Early voting begins April 19 and runs through April 27. Election day is May 1.
Among the donors to Save Austin Now were a firm owned by investor Phil Canfield ($100,000) and automobile dealers Benny Boyd ($10,000) and Danay Covert ($10,000), according to the PAC's financial report. Nine others contributed $5,000 apiece.
Canfield and his wife, Mary Beth, in 2018 contributed $20 million to the business honors program at the University of Texas — the program that launched his investment career. In honor of that gift, the program at the McCombs School of Business was renamed the Canfield business honors program.
Save Austin Now — which is co-founded by Travis County Republican Party Chair Matt Mackowiak and Democrat Cleo Petricek — formed a PAC in early February related to an educational nonprofit by the same name that collected more than 20,000 signatures to get the petition on the ballot.Of the $319,000 spent by the PAC, $240,000 went to an Ohio company that provides consulting services. An additional $4,505 went to former Travis County Judge Bill Aleshire, an attorney who filed a lawsuit on behalf of Save Austin Now to challenge the ballot language adopted by the City Council.
The donations received by Save Austin Now are only about one-third of the donations received by a PAC that supported the multibillion-dollar mass transit initiative that voters approved last November. That PAC, Mobility for All, raised about $1.3 million.
"We are thrilled to have received such generous financial support from so many Austinites who only wish to have our city return to being safe and clean for both the residents and the homeless," Mackowiak said. "Austin can do better than this public camping disaster. On May 1, we will show (Mayor) Steve Adler and (Council Member) Greg Casar that their social experiment has been summarily rejected by this city."
As of March 22, Save Austin Now had $167,000 on hand for a final push to try to persuade voters to approve the ban.
If approved by voters, Proposition B would create a criminal offense and a penalty not only for camping in public but for sitting or lying down on a public sidewalk or sleeping outdoors in and near the downtown area and the area around the University of Texas campus. It also would make it unlawful to solicit money or other things of value at specific hours and locations and would ban all aggressive solicitation in public areas… (LINK TO STORY)
Chris Beard named UT Men's Basketball head coach (Texas Sports)
A Texas Longhorn who led the Texas Tech program to the 2019 NCAA Championship Game and the 2018 Elite Eight, Chris Beard has been named the 25th head basketball coach at The University of Texas, Vice President/Director of Athletics Chris Del Conte announced Thursday. A 25-year veteran of collegiate coaching, Beard, 48, will be introduced at a Friday press conference on the UT campus.
"I'm thrilled and excited to be coming back to Austin and back to the Longhorn family," Beard said. "I can't express how excited I am for this opportunity and the journey that lies ahead. I want to thank President Hartzell and Athletics Director Chris Del Conte for their trust. It's time to get to work. Our top priority will be embracing our players as soon as we get to campus, and I look forward to starting this journey together towards our championship goals."
"It's been a whirlwind of a day," Beard added. "It's a difficult and emotional day in a lot of ways as I leave Texas Tech, a place where I'm very appreciative of not only my five years as a head coach but also my 10 years as an assistant. I owe so much to Texas Tech University. From the players and their families to the administration, students, alumni, season-ticket holders and the entire Red Raider Nation, we were able to build something incredibly special and unique. We took the program to new heights TOGETHER resulting in a Big 12 Championship, a berth on Monday night in the National Championship Game, an Elite Eight appearance and three consecutive NCAA Tournament appearances for the first time in school history. I am truly thankful for all the people of West Texas and their incredible support. Thank you, you have provided memories that will last a lifetime."… (LINK TO STORY)
[TEXAS NEWS]
Texas stands to receive $45B in federal coronavirus relief, but timing is a problem (Austin American-Statesman)
With nine weeks left in the legislative session, lawmakers responsible for drafting the state budget still have unanswered questions about the latest rounds of federal coronavirus relief, including when those funds will be released to the state. Texas received roughly $11 billion in federal funding from the first coronavirus relief package approved by Congress last year —$3 billion in direct aid to local governments and $8 billion to the state. all of which has been spent or earmarked. Through the December and March fiscal coronavirus packages, Texas stands to receive an additional $45 billion: $17 billion for the state, $18 billion for schools and $10 billion for qualifying cities and counties.
But it remains to be seen when those dollars will arrive, how they will be distributed and whether Texas is willing to agree to certain spending requirements for the funding, especially when it comes to the dollars available for public schools. “We have spent all of the first batch of money and the second batch of money, the rescue money; I want to manage expectations — we don’t have $17 billion to spend between now and the end of session, like a lot of people seem to think,” said Sen. Jane Nelson, a Republican from Flower Mound and the chairwoman of the Senate Finance Committee, during a recent hearing. “Be very, very cautious about expectations and what we’re going to do. For right now, keep this budget right.”
Texas lawmakers are constitutionally required to adopt a balanced, two-year budget during each regular legislative session, which happen the spring of odd-numbered years. They are responsible for allocating general revenue from the state and managing federal funds intended for various programs. This year, Texas Comptroller Glenn Hegar estimated that lawmakers would have $112.5 billion in state dollars to spend over the next two years. Part of the problem is that the federal government has not released rules and directives for some parts of the available funding… (LINK TO STORY)
Biden's infrastructure plan addresses Texas grid failures, Hurricane Harvey recovery (Houston Chronicle)
President Joe Biden’s $2 trillion infrastructure plan could help rebuild Texas highways and ports and push broadband into rural parts of the state, where up to 31 percent of residents do not have access to high-speed internet. It could help Texas weatherize the grid in a way that wouldn’t stick consumers with the bill as well as guarding the Gulf Coast against hurricanes and addressing racial disparities that have made Latino and Black communities particularly vulnerable to natural disasters. The infrastructure pitch is the president’s latest attempt to offer up money for things Republican leaders in Texas have been looking for funds to cover, as well as some that state lawmakers have been reluctant to take on. The $1.9 trillion stimulus Biden signed last month offered new incentives for states like Texas to expand Medicaid that appear to have brought at least some Republican state lawmakers onboard.
But the president’s latest proposal also comes with a heavy emphasis on clean energy that some Texas Republicans have framed as an attack on the state’s oil industry, and Biden is calling for corporate tax increases to foot the bill. The proposal is already drawing criticism from Texas Republicans, including U.S. Rep. Kevin Brady of The Woodlands, who said it would be the “biggest economic blunder of our lifetime.” “Smart infrastructure investment can boost economy over time, GOP-Democrats agree,” Brady tweeted.
“Imposing $2 tril taxes on U.S. job creators during recovery is a net loser for America. Less U.S. growth & investment, jobs moving overseas.” Democrats are framing the president’s “Build Back Better” push as an investment not only in infrastructure, but in American citizens and workers. U.S. Rep. Joaquin Castro, a San Antonio Democrat, called it “a vital investment in Texas' infrastructure — including a more resilient electric grid and helps every Texan access broadband … We can both rebuild our economy with millions of good-paying jobs and meet our infrastructure needs.” The first phase would spend $2 trillion on transportation, public water, public health and broadband, community care for seniors and funding for research and development. To pay for it, Biden wants to raise the corporate tax rate from 21 percent to 28 percent, undoing some of former President Donald Trump’s signature tax cuts… (LINK TO STORY)
Corporate giants come out against Republicans’ efforts to restrict voting in Texas (Texas Tribune)
Corporate giants American Airlines and Dell Technologies on Thursday became the first business heavyweights to lend their opposition to Republicans’ legislative proposals to further restrict voting in Texas.
American Airlines took specific aim at Senate Bill 7, which would impose sweeping restrictions that take particular aim at local efforts meant to make it easier to vote — like extended early voting hours. Senate Republicans advanced that measure in a 2 a.m. vote Thursday.
“Earlier this morning, the Texas State Senate passed legislation with provisions that limit voting access. To make American’s stance clear: We are strongly opposed to this bill and others like it,” the company said in a statement.
Dell Technologies CEO Michael Dell declared his company’s opposition to House Bill 6, another voting proposal, in a Twitter post. That legislation would prohibit local election officials from proactively sending out applications for mail-in ballots and impose new rules for people assisting voters to fill out their ballots. The House Elections Committee on Thursday was hearing public testimony on the proposal that was expected to continue into the night… (LINK TO STORY)
Texas Gov. Greg Abbott taps construction industry lobbyist to Public Utility Commission (Dallas Morning News)
Gov. Greg Abbott on Thursday named to the embattled Public Utility Commission of Texas a construction industry lobbyist with strong ties to the GOP-controlled Legislature. Will McAdams, president of the Associated Builders and Contractors of Texas, will take one of the three looming vacancies on the three-member PUC. The regulatory agency for electricity and telecommunications is struggling to defend its oversight of a nonprofit board running the state’s competitive electric marketplace after February’s prolonged and devastating arctic blast left more than 4 million Texans shivering and in the dark.
The storm caused at least 111 deaths, eight of them in the Dallas-Fort Worth area. In a written statement, Abbott said McAdams, who once advised former Speaker Dennis Bonnen on regulatory issues, “is committed to charting a new course for the commission and restoring trust with Texans.” Abbott offered no specifics. McAdams would bring to the PUC “a fresh perspective and outstanding leadership,” the Republican governor said.
All three Abbott appointees who sat on the PUC before the disaster, which has tarnished Texas’ once-lustrous reputation as a good place to relocate businesses, have resigned. Initially, Abbott focused blame solely on the Electric Reliability Council of Texas, the grid manager for most of the state, and not the PUC, to which ERCOT answers. Key lawmakers such as Lt. Gov. Dan Patrick, though, strongly criticized the PUC’s performance as well. And outgoing PUC Chairman Arthur D’Andrea’s remarks last month on a call with investors – which some castigated as showing coziness with electric generators and eagerness to protect huge profits that some Wall Street firms made during the storm – appear to have forced Abbott to name three new commissioners soon… (LINK TO STORY)
[NATIONAL NEWS]
Storied Latino civil rights group eyes revamp with younger members (AXIOS)
The League of United Latin American Citizens, the nation's oldest Latino civil rights group, isn't getting any younger — but the people it represents are, a reality that's quickly reshaping its focus.
Why it matters: LULAC's median membership age is 66 and its meetings still open with the Pledge of Allegiance and a prayer. But the median age of today's U.S. Latino population is 19.
Many Latino Gen Z and Millennials are more likely than their parents and grandparents to identify with multiethnic coalitions fighting systemic racism.
Latinos' political influence is growing. The U.S. Hispanic population, now 61 million, could nearly double in the next four decades.
These factors are helping to drive the evolution of an organization that was founded in Texas in 1929 by Hispanic veterans of World War I, and whose early initiatives focused on court fights over desegregation, education, and minimum wage protections.
Driving the news: Today, Domingo Garcia, LULAC's national president since 2018, is speaking out against anti-Asian American violence, standing with the Black Lives Matter movement, and supporting Native American activists seeking the removal of public monuments to Spanish conquistadors.
He's encouraging the creation of LGBTQIA councils and pushing his group to open student councils on community college campuses.
LULAC also is active in opposing voter suppression proposals in Texas, Georgia, and Arizona.
He's seeking to attract younger members as the group's Mexican-American Baby Boomer base ages.
What they're saying: "This is not your grandfather's civil rights organization anymore," Garcia tells Axios.
"We have to make these changes to survive and continue to fight for our communities," he said. "The nation's changing. We have to, too."
The organization reports about 132,000 members across 50 states and Puerto Rico and says it's grown by about 15,000 over the last 15 years.
Between the lines: LULAC's national board and its local councils across the U.S. are still led by Baby Boomers who kept the organization alive through membership declines in the 1980s.
Women have gradually taken on more leadership in the organization, after some councils blocked women from being members as late as the 1990s.
The organization has become increasingly outspoken on immigrant rights.
What we're watching: Can a modernizing LULAC expand its core beyond a base in Texas and the American Southwest base and attract more Puerto Rican and Central American leadership?… (LINK TO STORY)
Biden infrastructure plan faces test in Congress (Wall Street Journal)
President Biden’s $2.3 trillion infrastructure plan faces a contentious path on Capitol Hill, where Republicans criticized the proposed corporate tax increases as a nonstarter and some Democrats began to jockey for their own demands.
Mr. Biden’s plan would provide $621 billion for surface transportation, $400 billion for long-term care for elderly and disabled people under Medicaid and $300 billion for domestic manufacturing, along with hundreds of billions of dollars for other efforts. It also includes a series of tax increases on companies, including raising the corporate tax rate to 28% from 21%, that the White House said would cover the cost of the spending over 15 years.
While both parties have circled around passing a major infrastructure package for years, disagreement about the scope of such a bill and how to pay for it have stymied previous efforts. If Democrats move to pass an infrastructure package without Republican support, its scope could be limited by Senate rules constraining what legislation can advance with a simple majority… (LINK TO STORY)