BG Reads | News You Need to Know (October 25, 2021)

[MEETING/HEARINGS]


[BINGHAM GROUP]


[AUSTIN METRO NEWS]

South by Southwest agrees to settle lawsuit over no-refund policy for canceled 2020 event (Austin American-Statesman)

Some of the people who purchased credentials to attend the canceled South By Southwest festival in 2020 could be eligible to get part of their money back after SXSW LLC, the company behind the annual event, agreed to settle a class-action lawsuit over the event's no-refund policy. SXSW was called off a week before it was scheduled to start in March 2020 when Austin Mayor Steve Adler declared a public disaster amid mounting COVID-19 concerns. The festival, which annually attracts more than 100,000 people to Austin, was among the first major events canceled as the pandemic swept into Texas. After the event was shut down, SXSW LLC said it was in a "dire financial situation." The company laid off about a third of its 175 year-round employees.

In April 2020, SXSW LLC said that it lacked the financial resources to issue refunds to people who bought passes. Instead, the company offered a deferral package option, which would allow people to use their entry fees to attend the event in 2021, 2022 or 2023, and get 50% off the walk-up rate in any of those years. About 80% of purchasers accepted the offer and granted SXSW a release of claims, the lawsuit said. The list price of SXSW platinum badges, the event’s most expensive credential, was $1,600 in 2020, though discounts were available for early purchases. Under the settlement agreement, SXSW will issue a payment of $30 to any member who decided to defer their pass to a later year. Anyone who did not defer their credentials to a future year will receive a refund of 40% of the total amount they paid. Any person affected by the settlement can opt out by Dec 20, according to the settlement agreement. The settlement agreement indicates a “fairness hearing” is scheduled for Feb. 18, during which a judge will determine if the settlement should be approved as “fair, reasonable and adequate.”… (LINK TO FULL STORY)


Council to adopt TIRZ, implement full south waterfront plan (Austin Monitor)

The long-delayed South Central Waterfront Plan moved closer to implementation Thursday after City Council initiated a tax increment reinvestment zone to guide the use of new property tax revenue on the south shore of Lady Bird Lake. 

The TIRZ is one key element of the South Central Waterfront Plan, which upon adoption will regulate development for 118 acres of land around the intersections of South First Street, Barton Springs Road, Riverside Drive, and South Congress Avenue. The city envisions a walkable, transit-oriented district with a refurbished waterfront, relatively tall and dense buildings and affordable housing.

Council unanimously passed two resolutions Thursday directing City Manager Spencer Cronk to finalize the TIRZ framework. The resolutions also called for a TIRZ to be created in 2022 for Colony Park – another area long slated for tax increment financing. 

In a tax increment financing district – officially called TIRZ in Texas – the city channels increased property tax revenue from new development into improvements in the area like infrastructure and parks.

Once city staff finalizes the South Central Waterfront TIRZ, Council will officially put the district in place. Another update is expected Nov. 16, when Cronk plans to discuss how to implement the entire South Central Waterfront Plan, including adopting new zoning regulations in addition to the TIRZ and a host of other regulations. 

Mayor Steve Adler and Council Member Kathie Tovo emphasized that finalizing the TIRZ is an urgent matter, with an end-of-year deadline looming. “Setting up the TIF has to happen by Dec. 31,” Mayor Steve Adler said, “or we have to wait an entire year again.” If Council misses the deadline, the city won’t be able to capture and direct tax revenue from new development until 2023. With new development imminent, meeting the deadline is paramount… (LINK TO FULL STORY)


Austin Public Health ramps up COVID-19 booster shot offerings, prepares for pediatric vaccines (Community Impact)

With more booster shots authorized by the federal Food and Drug Administration and the opportunity for more children to receive coronavirus vaccines imminent, Austin Public Health is prepping for an increase in demand for COVID-19 immunizations.

The FDA gave the green light for vaccine providers to offer booster shots of the Moderna and Pfizer vaccines to certain populations Oct. 20, joining the already-authorized Pfizer booster. People who received their second Pfizer or single-dose Johnson & Johnson vaccine dose at least six months ago and are over the age of 65 are now eligible for a booster, as are people with various high-risk conditions and those with high exposure to COVID-19 in the workplace or home. Adults who received the single-dose Johnson & Johnson vaccine, meanwhile, are recommended to receive a booster shot two months after their initial dose.

People eligible for boosters are permitted to "mix-and-match" vaccine boosters, according to the most recent Centers for Disease Control and Prevention guidance, meaning, for instance, that a Johnson & Johnson shot recipient could receive a Pfizer booster.

"We are working ... to update our clinical practice guidelines and ensure that we're able to accommodate our community as they come in and seek that vaccine, [and] we're preparing for the pediatric vaccine in anticipation of a newly eligible population within our community," said Cassandra Deleon, chief administrative officer for disease prevention and health promotion at Austin Public Health, at an Oct. 22 news conference.

The FDA is anticipated to authorize Pfizer vaccines for children ages 5-11 in the coming weeks. Deleon said APH was in touch with local vaccine providers, including pediatric offices, to ensure they are able to provide the Pfizer vaccines, which requires specific ultra-cold storage and preparation… (LINK TO FULL STORY)


Adler wants Music Commission to be ‘more creative’ with $2.3M Live Music Fund (Austin Monitor)

Mayor Steve Adler wants the new Live Music Fund that is supported by hotel tax revenues to produce a city-financed music venue, record label or some other business entity to train Austin music professionals in the coming years.

In an interview with Austin Monitor, Adler expanded on his comments from a recent City Council work session in which he said the first iteration of the $2.3 million fund looks too similar to other grant programs for local artists. As currently proposed, the fund will be used to award $5,000 and $10,000 grants to local musicians and professionals to create events and concerts for diverse audiences around the city.

When Council approved the creation of the fund in late 2019, it was done so with the intent of supporting the local music industry, with Council members expressing enthusiasm for a business-centered approach before handing the details of the fund to the Music Commission and other stakeholders.

Council has asked the Music Commission for an official vote of support for the current program structure at its November meeting before the item comes to Council for approval.

“Our goal was, let’s do some investments here that might create more stability and sustainability for the music industry,” Adler said. “What if the city bought a club, or a place for a club, and it was a training ground for managers, artists, barkeeps, and everybody in the industry? A real training ground, like going to Napa Valley and going to a culinary academy with the best restaurants, but everybody in there is learning and honing enough so they’ll be able to go out and open up their own restaurant. If we had a place like that that was underwritten and started getting people who don’t get to play in clubs and elsewhere some club opportunities, and the same for everybody in the industry, that is something that might be sustainable long-term for our city.”

One of the Music Commission’s main objectives with the proposed fund structure is to prioritize equity to give more funding and opportunities to historically underserved communities.

While Adler supports that goal, he sees the grant structure as too similar to the annual awarding of hotel tax-funded Cultural Arts contracts to local artists. He said grants can provide needed income, but aren’t self-sustaining and wouldn’t be as focused on training and supporting music industry jobs… (LINK TO FULL STORY)


Nate Paul sues FBI, claims World Class 'reputation was severely damaged' by 2019 raids (Austin Business Journal)

Nate Paul and his Austin-based real estate firm, World Class Holdings, have sued the FBI for damages they claim stem from August 2019 raids of his home and business.

The lawsuit, filed Oct. 21 in U.S. District Court for the Western District of Texas, claimed that Paul’s civil rights under the Fourth and Fifth amendments were violated by the raids. It also claimed the raids were conducted without “a valid search warrant or probable cause,” and that federal authorities “intentionally damaged” property belonging to Paul and World Class.

The suit claimed that property seized during the search has yet to be returned. Paul is asking for a jury trial and to recover unspecified “damages, costs and attorney fees.”

The lawsuit against the FBI marks a significant escalation in Paul’s ongoing feud with federal authorities. World Class has faced mounting legal and financial challenges in the wake of the raids, filing more than two dozen bankruptcies (although a few have since been resolved), becoming entangled in a series of lawsuits and losing several properties at foreclosure — including the massive former 3M campus in Northwest Austin. World Class has disputed the outcomes of those foreclosure sales.

Through a representative, Paul declined to comment for this story. Special Agent Michelle Lee, a public affairs officer with the FBI’s San Antonio field office, also declined to comment.

In the new lawsuit, World Class acknowledged Paul was "detained" during the 2019 raids. It also stated that authorities claimed at the time that the searches were “in furtherance of federal and state concurrent criminal investigations.”

No charges have been filed against Paul or World Class, but that doesn’t mean the firm hasn’t faced business consequences.

World Class alleged in the lawsuit its “business reputation was severely damaged, and their business affairs were severely compromised" by the raids. The complaint also acknowledged “significant financial losses" for the embattled real estate firm… (LINK TO FULL STORY)


[TEXAS NEWS]

Texas universities with federal contracts are caught between Greg Abbott and Joe Biden over COVID-19 vaccine mandates (Texas Tribune)

Many Texas universities — which collectively hold billions of dollars in federal contracts — are wrestling with how to navigate the Biden administration’s mandate that all federal contractors be vaccinated by Dec. 8 in a state that bans vaccine mandates.

Several public universities — all managed by Gov. Greg Abbott appointees — told The Texas Tribune they are still evaluating the executive order, which applies to new federal contracts of $250,000 or greater and awarded as of Nov. 14 or existing contracts that have been renewed as of Oct. 15.

“This is unprecedented,” said Michael LeRoy, a labor law expert at the University of Illinois College of Law. “There have been conflicts between the state and federal government, but not at this magnitude with this kind of money on the line.”… (LINK TO FULL STORY)


Buc-ee's sues Sugar Land man over 'confusingly similar' Buky's copycat stores in Texas (Houston Chronicle)

Texas mega-chain Buc-ee's is suing a Sugar Land man over claims that his “Buky's” gas station and convenience stores are “confusingly similar” to the brand’s famous logo. The trademark lawsuit, filed Wednesday in the U.S. District Court for the Southern District of Texas, alleges Buky's owner Saarim Damani, of Sugar Land, has unlawfully capitalized on the Texas chain’s success by using a similar name and lettering on his stores in El Campo and Rosenberg.

Buc-ee's was founded in 1982 in Lake Jackson and quickly grew into a cult-favorite Texas empire known for clean restrooms, roadside snacks and a quirky Beaver mascot. With more than 30 locations across the state, Buc-ee's has expanded outside of Texas with locations in Alabama, Georgia and Florida, with even more expansions planned in Tennessee and Mississippi. Damani is accused of trademark infringement, trademark dilution and unfair competition, among other claims. The suit claims that the similar logo potentially deceives customers into thinking Damani’s products or services “are in some manner connected with, sponsored by, affiliated with or related to Buc-ee’s.” Damani told the Chronicle he chose the name Buky's for his stores because it was a childhood nickname given to him by friends. He denies trying to replicate the Buc-ee's business model and declined to comment further… (LINK TO FULL STORY)


Enrollment at Texas’ public universities inches ahead of community colleges for the first time since 1990s (Texas Tribune)

The number of students attending Texas’ community colleges dropped below enrollment in the state’s four-year universities for the first time since the 1990s as many two-year schools continue to grapple with sharp enrollment declines due to the COVID-19 pandemic, according to the Texas Higher Education Coordinating Board.

Community colleges have seen a nearly 11% drop during the pandemic, equivalent to a loss of about 80,000 students.

Meanwhile, public university enrollment jumped almost 2% in that time. Independent universities remained flat, while the number of students enrolled at health-related institutions rose nearly 10%.

While two-year college student numbers fell below that of four-year schools by only about 2,000 students, higher education leaders in the state say it’s a meaningful change for the two-year sector, which has for decades promoted itself as the more accessible and affordable option for low-income Texans.

Overall, preliminary data released this week by the coordinating board shows college enrollment is down about 4% statewide since 2019, before the pandemic began… (LINK TO FULL STORY)


The ambitious plan to remake San Antonio International Airport is big, bold - and needed (San Antonio Express-News)

The 20-year-old plan to remake San Antonio International Airport is finally out, and it is sweeping. As expected. Frustration with San Antonio’s bland little airport has been mounting. Think back to three years ago when former Mayor Henry Cisneros called in an Express-News guest op-ed for effectively chucking San Antonio International and building bigger elsewhere. Boiled down, his message — shared by many other members of the city’s business-politico complex — was that both San Antonio and its aspirations were bigger than its airport. Earlier in 2018, Mayor Ron Nirenberg had appointed the 21-member Airport System Development Commission and picked cybersecurity executive John Dickson to chair it. The commission pretty quickly knocked down the idea of moving the airport to a roomier part of San Antonio.

Its members — working with the city aviation director, his staff and consultants — then set about blowing up the status quo within San Antonio International’s existing 2,600-acre footprint. The result: a multi-phase project that promises to be one of the city’s biggest, costliest capital projects ever. If City Council OKs the plan — members are expected to vote on it in December — the price could top $2 billion. Airport revenue bonds would pay for most of the work, with passenger fees, concessions, airline rents and a handful of other income streams paying off the debt. Federal funding also is expected to come into play. Aviation Department officials previewed the master plan at two public meetings this week — one at the Barshop Jewish Community Center on the North Side Tuesday, the other a virtual event Thursday. The redevelopment would start with fireworks: construction of a third terminal and a new parking garage. The plan’s timelines have the two structures, roadway work and smaller projects being completed by 2030 at a cost of between between $880 million and $950 million… (LINK TO FULL STORY)


Texas posts strong job gains in September, with a surprising sector leading the way (Dallas Morning News)

Texas employers added 95,800 nonfarm jobs in September — the strongest month for hiring since March — prompting economists to predict a full pandemic job recovery for the state within months. The job additions also drove down the state’s unemployment rate to 5.6% from 5.9% a month earlier, according to data released Friday by the Texas Workforce Commission. Nationally, 27 states and the District of Columbia reported lower jobless rates in September. “We did expect this type of acceleration in September with the COVID wave subsiding,” said Pia Orrenius, vice president and senior economist at the Federal Reserve Bank of Dallas. “We were growing more slowly earlier this year and now we are seeing the trend for the second half of the year will be faster growth, which Texas is used to.”

The Dallas Fed expects the state to reach pre-pandemic employment levels by January, Orrenius said. Driving the jobs growth in September were gains in some of the sectors hit particularly hard by the pandemic. Leisure and hospitality led the way with 31,900 jobs added in September, a welcome number as restaurants and hotels have struggled for months to win back employees who left or were laid off during the pandemic’s early days. For the past week, U.S. hotel occupancy reached 65%, its highest level since mid-August, but still down 10% from the comparable week in 2019, according to research firm STR. Orrenius said not to read too much into the hospitality figures because the numbers were down in August and it’s an industry that remains susceptible to COVID surges. There are still 94,900 fewer leisure and hospitality jobs in Texas than before the pandemic. Construction also was a bright spot, adding more than 16,000 jobs in September. That’s another sign people are returning to work, Orrenius said. In Dallas-Fort Worth, the Dallas-Plano-Irving metro area had an unemployment rate of 4.6% in September, unmoved from the previous month but significantly lower than the state rate, according to the Federal Reserve Bank of Dallas. The Fort Worth-Arlington metro area had a 4.7% unemployment rate, slightly lower than its 4.8% rate for August… (LINK TO FULL STORY)


[NATIONAL NEWS]

SolarWinds hackers continue to hit technology companies, says Microsoft (Wall Street Journal)

The Russia-linked hackers behind last year’s compromise of a wide swath of the U.S. government and scores of private companies, including SolarWinds Corp. SWI 0.43% , have stepped up their attacks in recent months, breaking into technology companies in an effort to steal sensitive information, cybersecurity experts said.

In a campaign that dates back to May of this year, the hackers have targeted more than 140 technology companies including those that manage or resell cloud-computing services, according to new research from Microsoft Corp. MSFT -0.51% The attack, which was successful with as many as 14 of these technology companies, involved unsophisticated techniques like phishing or simply guessing user passwords in hopes of gaining access to systems, Microsoft said.

“This recent activity is another indicator that Russia is trying to gain long-term, systematic access to a variety of points in the technology supply chain,” said Tom Burt, Microsoft’s corporate vice president for customer security and trust, according to a blog post provided ahead of the announcement by Microsoft on Monday.

Security experts say last year’s SolarWinds incident was concerning because it showed how a compromise at one widely used link in the technology supply chain could be made into a jumping off point for further attacks. After government officials attributed it to Russia’s foreign intelligence service, the Biden administration in April punished Moscow for the attack and other alleged malicious cyber activity with financial sanctions and diplomatic expulsions… (LINK TO FULL STORY)


Thousands of workers are opting to get fired, rather than take the vaccine (NPR)

For 33 years, Karl Bohnak worked at his dream job delivering weather forecasts on TV for what he considers one of the most challenging but beautiful spots in the United States — Michigan's Upper Peninsula.

He became so popular that "That's what Karl says!" became a slogan at his station in the 1990s and even inspired a song.

But Bohnak's time as chief meteorologist for news station TV6 came to an abrupt end last month. He was fired after refusing to comply with the vaccine mandate imposed by his station's corporate owner, Gray Television.

"I just did not want to take the shot," says Bohnak, who is 68. "I felt it was my right as a human being and a citizen of the U.S. to decide what I put in my body."

Across the country, employers are firing workers for refusing to comply with vaccine mandates. Some people are opting to quit their jobs rather than take the shot.

These workers represent only a tiny fraction of overall employees, not even 1% in some workplaces. But it can add up to thousands of people in many states.

Washington state reports that so far, nearly 1,900 state workers, including the head football coach at Washington State University, have quit or been fired for refusing the vaccine. In Michigan, 400 workers at the Henry Ford Health System in Detroit walked away from their jobs. North Carolina-based Novant Health fired about 175 employees. And the list goes on… (LINK TO FULL STORY)


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