February 5, 2003

Downtown Galveston

Several owners of businesses in downtown Galveston met with city officials and others to discuss management options for the downtown area.

Consultant Barry Goodman discussed the possible creation of a downtown public improvement district or municipal management district.

Under a public improvement district, property owners would be assessed additional taxes to perform additional government services, such as law enforcement or garbage removal.

Under a municipal management district, a new and separate assessment would be paid by property owners to the new entity, which would provide new services.

"The city would continue to collect its taxes," said Fred Wichlep, executive director of the Historic Downtown Strand Partnership.  "This would be assessments in addition to ad valorem taxes."

There was no interest in a public improvement district, but creation of a municipal management district appealed to many of the participants.

Although most of the eighty or so participants in the meeting were positive toward the concept, the 19 attendees who would be included in the district were divided.  There was a 10 to 9 vote to not move forward.  However Wichlep said many of those opposed now are willing to learn more about the proposed district.

Wichlep said the group will meet again to consider a request to the Texas Legislature for legislation to enable creation of a municipal utility district.  Approval by the city council and an election in the proposed district would be required.

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