BG Reads | News You Need to Know (December 19, 2022)
[AUSTIN METRO]
Austin’s Mayor-Elect calls City’s affordability issue an 'emergency' (WFAA)
Austin Mayor-Elect Kirk Watson has many issues to tackle in Texas’ capital city, but he says one must be addressed from the start.
“Our affordability issues in Austin, it’s an emergency. I don’t even use the word 'crisis.' It’s an emergency. And when you have an emergency, you need to react like it’s an emergency,” Watson said on Inside Texas Politics.
In addition to reducing some of the fees required to build new housing by at least 50%, Watson has also told us he wants a complete sunset commission review of the city’s Development Services Department, which ensures compliance with city codes and oversees many of the fees.
But he says he also wants to focus on another aspect of affordability impacting many families, the high cost of childcare, which he says is the second largest expense in many households, behind housing costs.
“And my intention on the very first day is to appoint a blue ribbon task force to report back in no more than 90 days on what we need to do to move forward, so that we make Austin the best city in America to raise a child,” the Mayor-Elect told us… (LINK TO FULL STORY)
Development leaders see public-private partnerships as cure for ‘lazy’ public dirt (Austin monitor)
State Sen. Sarah Eckhardt created a new branding term for proponents of public-private partnerships at Urban Land Institute Austin’s monthly breakfast panel last week.
“Something I’ve discovered after 20 years in local government is governments have a tendency to have very lazy dirt and own a lot of dirt that’s not being maximized because there’s no carrying costs on government dirt,” she said, discussing the appeal of the property and development agreements between local governments and for-profit developers involving publicly owned land.
“We’ve got to demand local governments have a plan for their opportunity infrastructure and real estate, and that they execute it in a continually refreshing way, otherwise you will see lazy dirt in the hands of government.”
Panelists highlighted recent and in-progress P3 deals that have helped transform the Austin area over the past two decades, with the Mueller development, Austin Community College’s transformation of the former Highland Mall and the forthcoming Colony Park project some of the leading examples.
P3s are expected to grow in popularity as Austin’s population and housing needs continue to expand. Andy Moore, program manager in the Financial Services Department, said the city will be moving forward with the creation of a public facilities corporation that can construct more and different real estate deals than the still-new Economic Development Corporation that has the option to use P3 structures in its charge to preserve and open creative spaces… (LINK TO FULL STORY)
After years of negotiation, renovations begin on Austin’s oldest publicly owned homes (KUT)
After years of negotiating and planning, politicians and residents of Austin’s oldest public housing complex ceremoniously shoveled dirt Thursday morning to signal the start of a massive renovation that will result in brand-new affordable homes.
“This is for the families that will come after us,” said Steve Whichard, who has been a resident at Rosewood Courts for more than a decade. “Instead of it just being a roof over our heads, it will be a place we are proud to call home and feel comfortable inviting people over.”
Opened in 1939, Rosewood Courts was one of the first public housing complexes for Black residents in the country. Then-Congressman Lyndon B. Johnson helped secure funding from a New Deal program to build the one-story, barracks-style homes on Chicon and Poquito streets. The hope was to ensure safe housing for low-income families, who are required to pay about a third of their income toward rent… (LINK TO FULL STORY)
CapMetro police force coming to North Austin office park (Austin monitor)
Capital Metro has secured the location of its first police department headquarters – a nondescript building in a North Austin office park – and is ready to spend millions on rent and renovations to expand the transit agency’s mission into law enforcement.
The move to put more armed officers on buses and trains has drawn criticism from those concerned about excessive enforcement, racial profiling and criminalizing homelessness.
But CapMetro, facing a barrage of complaints about safety from bus drivers and riders, has kept the project on track by promising a friendlier police department with a focus on customer service and de-escalation… (LINK TO FULL STORY)
Downtown Austin’s Capitol Complex Project Finally Unveils Its Texas Mall (Towers)
After kicking off construction all the way back in 2018 and something like six months after its original scheduled completion date, we are thrilled to announce that as of this week, the Texas Facilities Commission has officially opened the Texas Mall of its Capitol Complex Project to the public — that’s the crown jewel of this sprawling multi-phase state redevelopment plan, creating a pedestrian-friendly outdoor green space spanning six acres across several blocks on the north side of the Capitol grounds… (LINK TO FULL STORY)
Experts say water infrastructure, not supply, an issue as Williamson County grows (COMMUNITY IMPACT)
At the Williamson County Growth Summit—hosted by the Austin Business Journal on Dec. 15 at the largest water park in Texas, Kalahari—a panel of experts discussed whether the region has enough water to keep up with area development.
With major companies, such as the Samsung Austin Semiconductor facility in Taylor, setting up shop in the county, stakeholders are questioning whether the area’s water supply will meet the demand of growing industry. The amount of water available to the area is not the concern, though, said David Collinsworth, general manager and CEO of the Brazos River Authority.
“It’s how do you develop water and bring it in a timely fashion that the Samsungs of the world can access that water and growth continues?” Collinsworth said. “So I’m not worried about water supply. I’m worried about development of water.”… (LINK TO FULL STORY)
[TEXAS]
Texas grid operator says it’s ready for next week’s winter blast (BLoomberg)
The Texas grid operator says it anticipates having enough power supplies to meet demand next week when a polar blast is forecast to grip the Lone Star State.
The Electric Reliability Council of Texas said Friday that it has notified utilities and power plant owners that temperatures will be 25 degrees or lower in the Dallas and San Antonio metro areas between Thursday, Dec. 22, through Monday, Dec. 26.
ERCOT said it has worked with state utility regulators to put in place reforms to fortify the grid during extreme weather in the wake of a deadly winter storm in February 2021 that caused massive blackouts for days… (LINK TO FULL STORY)
Dallas ISD punts tax break ask from manufacturing company ahead of Chapter 313 expiration (Dallas Morning News)
Amid pressure from community advocates, the Dallas schools administration pulled a vote to approve a property tax break for a manufacturing company just before trustees were to weigh in on it Thursday night. The Texas Economic Development Act – commonly referred to as Chapter 313 based on its position in the tax code – will expire at the end of the month. Companies across Texas are rushing to get deals approved with school districts and lock-in tax abatements ahead of the deadline. Hanwha Q Cells asked the school board to sign off on a tax limitation agreement, should it build a facility within the district boundaries. It was set to come up for a vote during the board’s last meeting of the year. But after a closed session briefing with trustees, Superintendent Stephanie Elizalde announced that the administration was pulling the item from the agenda. She said after the meeting that the process felt too rushed as the district needed more time to provide and work through information.
“The biggest hurdle for us was the timing,” Elizalde said. “It’s tough when there’s a deadline. … We all know, no one wants to feel rushed when you’re making really big decisions.” Members of Dallas Area Interfaith – which was among the groups that pushed the Legislature to end the controversial Chapter 313 program – cheered at the news. The group mobilized to urge DISD trustees to veto the proposal. “Does it make sense to continue to grant certain large corporations these huge tax breaks?” DAI leader Bill deHaas said ahead of the meeting. “We already know that we have a crunch on educational spending.” In a letter to trustees, members of the group argued that the process was rushed to meet the Dec. 31 deadline, keeping the district from doing due diligence. “At its core, Chapter 313 is inequitable for Texas children,” they wrote. The company said it was in negotiations with other states over property tax abatement and other incentive packages, district records show. “Due to the higher tax cost of operating in Texas … the appraised value limitation is a determining factor,” application documents read. “Without the appraised value limitation award, and other potential incentives from the state of Texas and local jurisdictions, the company would likely locate the project in Georgia or South Carolina.” The fate of the project didn’t just lie in DISD. The facility would stretch into Lancaster school boundaries as well… (LINK TO FULL STORY)
San Antonio gears up to play defense in 88th Legislative Session (san Antonio Report)
Leaders from the City of San Antonio are eyeing a handful of local control issues they’re concerned about in the state’s upcoming legislative session, which begins Jan. 10. Members of the city’s government affairs team told a City Council committee Wednesday that a proposal seeking to limit local governments’ ability to regulate commerce, as well as one that would stop municipalities from being able to hire lobbyists, are at the top of their closely watched list. Both proposals were shot down by lawmakers in previous sessions, they said, but likely to resurface in the 88th Legislative Session, which features an even bigger Republican majority. “Right now these bills are at face value,” Sally Basurto, director of the city’s Government Affairs Department, told the council committee. “Once the bills start being heard, then we’re going to have to be really tracking [them] to monitor how they’re evolving.”… (LINK TO FULL STORY)
‘Slowing faster than we thought:’ Texas adds 33,600 jobs in November (Dallas MOrning News)
Texas added 33,600 jobs in November, the second-smallest monthly gain in over a year, as the pace of job growth began to slow in the Lone Star State. Texas’ seasonally adjusted unemployment rate remained at 4% last month, an indication that the supply of workers is still tight. But evidence of a slowdown is mounting after Friday’s release of new and revised job numbers. Texas’ construction industry lost 3,900 jobs last month as the impact spread from the Federal Reserve’s higher interest rates and the subsequent pullback in the housing industry. Initially, construction in Texas was reported to have gained 900 jobs in October, but that number was revised down to a loss of 2,600 positions. Statewide, construction has lost employment for four straight months and for five of the past six. Building permits issued for single-family homes in Texas have been falling since summer, and were 27% lower in October compared with a year earlier… (LINK TO FULL STORY)
Financial executives and Texas Republicans spar over climate actions REUters)
Financial executives and Texas state senators clashed over company concerns for climate change at a hearing on Thursday, a rare in-person confrontation as Republicans ramp up attacks on the use of environmental, social and governance (ESG) factors in investing. Texas Republicans at the hearing, which was webcast, questioned whether the participation of BlackRock Inc and State Street Corp in industry efforts to cut emissions put too much pressure on portfolio companies. Bryan Hughes, chair of the Texas Senate committee that held the hearing, expressed skepticism the managers could set aside the cooperative goals of groups like the Net Zero Asset Managers initiative, which Vanguard Group Inc quit last week. When BlackRock pledged all its assets to such efforts, Hughes asked at one point, "you didn't mean that? You had your fingers crossed?"… (LINK TO FULL STORY)
[NATION]
Los Angeles mayor says the city will move unhoused people indoors (NPR)
Los Angeles Mayor Karen Bass said she will be moving unhoused people into hotels and motels while the city builds more affordable housing, she said in an interview Sunday.
The initiative, called Inside Safe, is expected to launch Tuesday, eight days after Bass was sworn in and declared homelessness a state of emergency.
"Well, you know, what we have found in the community organizations that we're bringing in to do this work is that you can get 95% of the people housed," she said on NBC's Meet the Press. "People will go. It takes a while. You have to do outreach."… (LINK TO FULL STORY)
Military spending surges, creating new boom for arms makers (NEW york times)
WASHINGTON — The prospect of growing military threats from both China and Russia is driving bipartisan support for a surge in Pentagon spending, setting up another potential boom for weapons makers that is likely to extend beyond the war in Ukraine.
Congress is on track in the coming week to give final approval to a national military budget for the current fiscal year that is expected to reach approximately $858 billion — or $45 billion above what President Biden had requested… (LINK TO FULL STORY)
McCarthy's ongoing speaker battle paralyzes House (Politico)
Kevin McCarthy’s imperiled speakership bid is threatening to incapacitate Republicans during a crucial planning period, virtually guaranteeing a sluggish start for the new House majority.
The GOP leader on Thursday took the unusual step of punting conferencewide races for committee leadership slots until after his speaker election on Jan. 3, a maneuver that could help insulate him from disgruntled members who fall short in those contests and their allies… (LINK TO FULL STORY)
[BG PODCAST]
Bingham Group Week in Review Part I and Part II (12.16.2022)
Bingham Group Associate Hannah Garcia and CEO A.J. discuss the results of the 2022 Austin Council runoff elections for mayor along with Districts 3, 5, and 9.
The BG Podcast is also available on Apple Podcasts, Soundcloud, and Spotify
Enjoy this episode? Please like, share, and comment!