BG Reads | News You Need to Know (October 13, 2022)
[AUSTIN METRO]
TipSheet: Austin City Council, 10.13.22 (Austin Monitor)
A discussion about scheduling at Tuesday’s City Council work session made it clear that local officials are acutely aware of the upcoming transition ahead. With at least four new representatives on the way, it’s starting to look like it’s time to wrap up unfinished business. That said, all signs point to the fact that today will be a fairly typical Council meeting – take a look at the full agenda – but we’ve collected the most interesting items in this TipSheet to make it a little easier to skim… (LINK TO FULL STORY)
The mayor’s race offers clear choices on how Austin should grow (Austin Chronicle)
Austin's next mayor will only serve two years before facing voters again in the presidential election year of 2024 (as per a charter amendment approved in May 2021). But the three most serious candidates (of six on the Nov. 8 ballot) are campaigning – and spending money – as if they were contending for a full four years and then some.
Maybe that's because this election feels like such a critical juncture on the way to Austin's future, one where the outcome may influence generations to come. The city remains in a dire housing crisis. Since the city was dealt a legal defeat two years ago (later upheld by a state appellate court) that effectively killed efforts to rewrite Austin's land use rules in ways that would allow for more housing, little progress has been made on meaningfully addressing that crisis. To be fair, those two years also included a global pandemic and a major rupture in police-community relations, during which Council members understandably paid less attention to housing policy for months at a time, except as it related to visible homelessness… (LINK TO FULL STORY)
Planning Commission recommends enviro code updates with caveats (Austin Monitor)
The Planning Commission on Tuesday unanimously recommended that City Council approve only certain elements of a package of code updates aimed at making new development more environmentally friendly, and suggested Council retool or delay adoption of other elements.
The complex code amendments have sparked considerable discussion at various boards and commissions in recent weeks, as affordability and equity concerns linger. With ample feedback in hand, Council is scheduled to vote today on adopting the changes into code.
Some of the more substantial updates include requiring enhanced “functional green” landscaping elements and upgraded stormwater infrastructure like rain gardens or biofiltration ponds in most new developments. City staffers say the requirements will lead to additional environmental benefits, like decreased stormwater runoff, more habitat for pollinators and additional vegetation to counter the urban heat island effect.
The changes were part of the failed Land Development Code rewrite. In June, Council passed a resolution sponsored by Council Member Kathie Tovo to bring the changes back under consideration… (LINK TO FULL STORY)
The number of passengers at Austin’s airport this year has already surpassed 2021’s total (KXAN)
The number of passengers at Austin’s airport so far this year has already surpassed the total for all of 2021.
New numbers from the month of August show more than 13.7 million passengers have boarded a flight out of the Austin-Bergstrom International Airport since the start of the year.
That means 2022 now ranks as the fourth-busiest year ever, with four months of passenger data still to come… (LINK TO FULL STORY)
Home prices in Austin are dropping more than in any other city, report says (KVUE)
Home prices in the Austin metro area are dropping more than in any other city in the country, according to a new report from Realtor.com.
Realtor.com said prices are down in some metro areas because high mortgage interest rates have thinned out the ranks of buyers who can still qualify for a home loan, while also also sharply reducing the price of homes the remaining few in the market can afford… (LINK TO FULL STORY)
Study makes case for investing in cheaper housing as Austin group buys more apartments for moderate-income rentals (Austin Business Journal)
A new report challenges the idea that investing in more affordable housing developments yields lower returns than luxury apartments — bringing added weight to a local fund that aims to maintain cheaper housing.
The report from faculty at Southern Methodist University and the University of Texas at Austin finds that moderate-income rental housing is a viable and profitable investment for those seeking to support a fund that embraces environmental, social and governance principles, or ESG.
Supported by Affordable Central Texas Inc., which controls a low-cost housing fund in Austin that has raised tens of millions of dollars, and the Wells Fargo Foundation, the study aimed to define a profitable asset class called moderate-income rental housing, or MIRH… (LINK TO FULL STORY)
[TEXAS]
Fact-checking claims about the Texas power grid from Gov. Greg Abbott and Beto O'Rourke (Houston Chronicle)
Throughout his campaign for governor, Democrat Beto O'Rourke has emphasized again and again the fallout from last year's winter blackouts, pinning the failure of the grid and its vast financial toll on his opponent, Gov. Greg Abbott. He's even coined a phrase for the rising costs most Texas electricity customers have seen since the storm: "the Abbott tax." "Now we are all paying $45 more on average on our monthly utility bills," O'Rourke said during last month's debate. "It's the Abbott tax." In response, Abbott said the grid is "more resilient and reliable than it's ever been." "After Uri, after the reforms that we passed, Texas has one of the lowest electricity prices in the country, far below the national average and less than half of what the electricity price is in California," he said, referring to Winter Storm Uri, which knocked out power and led to hundreds of deaths last February. There's truth in both claims, according to energy experts, although more so for O'Rourke's… (LINK TO FULL STORY)
The Texas Republican fighting Wall Street — and protecting the energy industry (Politico)
Needling global investment firms and federal regulators, Glenn Hegar is making the most out of an obscure job in state government. The Texas comptroller, a Republican, made a national name for himself this summer when he accused BlackRock, Credit Suisse and UBS of “boycotting” energy companies and barred them from doing business with the state after legislators passed a law designed to protect fossil fuel businesses. Oil-and-gas producing states like Louisiana and West Virginia have joined Texas in a conservative push against environmental, social and governance investing that calls for taking climate risks into account. “To just holistically say ‘we’re not going to invest in oil and gas and that means the world will transition to renewables in the next X amount of years,’ is just unrealistic,” Hegar said in a wide-ranging interview that discussed rural broadband, threading economic indicators and his own political future. “It’s intellectually dishonest with people and that’s disturbing to me.”… (LINK TO FULL STORY)
[NATION]
LA Council faces uncertainty amid furor over racist remarks (Associated Press)
Three of its members – including the former Council president – are facing calls from President Joe Biden to resign after a recording surfaced of them participating in a closed-door meeting in which racist language was used to mock colleagues while they schemed to protect Latino political strength in Council districts.
Three current or former Council members have been indicted or pleaded guilty to corruption charges, and it’s possible resignations in coming days could create new vacancies.
The current mayor, Democrat Eric Garcetti, was named last year to become U.S. ambassador to India but the nomination appears stalled in the Senate because of sexual harassment allegations against one of his former top aides. Elections next month will bring a new mayor and several Council members.
In the short term, it’s a looming question if the Council can assemble the required 10 members — out of 15 total — to conduct business on Wednesday, when coincidentally Biden will be in town… (LINK TO FULL STORY)
Gannett announces widespread cost-cutting (Wall Street Journal)
The chief executive of Gannett, the largest newspaper publisher in the country, announced widespread cost-cutting to its newsrooms on Wednesday, citing headwinds from the “deteriorating macroeconomic environment.”
In a memo to the staff, Mike Reed, the chief executive, said the company would require employees to take unpaid leave in December, offer voluntary buyouts and temporarily suspend 401(k) contribution matches. Gannett will also freeze hiring except for crucial positions, Mr. Reed said.
He said the changes were needed to ensure the company’s long-term success.
“In order to sustain the mission of our company to empower communities to thrive, sustain local journalism and support small businesses with digital solutions, we need to ensure our balance sheet remains strong,” Mr. Reed wrote in the memo, which was obtained by The New York Times… (LINK TO FULL STORY)
THE WEEK AHEAD:
[BG PODCAST]
Episode 168: Market Talk - Lobbying in Philadelphia with Mustafa Rashed of Bellevue Strategies
Today's episode (168) features a discussion on entrepreneurship and lobbying with Mustafa Rashed, Founder and President, of Philadelphia-based Bellevue Strategies.
He and Bingham Group CEO A.J. also discuss current municipal issues in the Philadelphia market.
Enjoyed this episode? Please like, share, and comment!