January 2, 2003

Tax Increment Reinvestment Zone 11 Board of Directors

The board of directors of Tax Increment Reinvestment Zone 11 has unanimously approved an amended final project plan for the Falcon Group's Towers Condominium Project on Galveston's East Beach.  Photos and Audio

The development is expected to increase the taxable value of the 16 acres of property by $60 million.  Proposed public improvements, including water, sanitary sewerage, road projects and public beach access will total more than $4 million.

The plan sets the base value of the now vacant property at $390,020.  The developer will continue to pay ad valorem taxes on that value to the various taxing entities through the 30 years of the zone.  However, as the value of the property increases as it is developed, taxes on the added value will be deposited in the TIRZ fund, to pay for the public improvements.

Galveston City Council has agreed to participate for all 30 years, Galveston County and Navigation District 1 has agreed to participate for 20 years.  Galveston College and Galveston Independent School District are not participating in the zone. 

Although she voted for the plan, Barbara Murdock expressed concern about $516,171 that is budgeted for a parking lot to comply with guidelines for public beach access established by the Texas General Land Office.

"Who does this benefit?" Murdock asked, noting that there are currently thousands of vacant parking spaces available to visitors to East Beach.

"It may not benefit the local taxpaying public, but it benefits the state of Texas," explained Doug Matthews, citing public access requirements, "It enhances the public's, the people of the state of Texas, ability to access the beach."

The board approved interlocal agreements for the project, with the participating entities, as well as an agreement between the City of Galveston and the newly created Galveston Island Redevelopment Authority, which also will provide services to two other TIRZ projects.

The board also approved a development agreement with the Falcon Group. 

All votes were 5-0, except for the agreement with the Falcon Group, which passed 4-0, with TIRZ Chair Richard Anderson, representing the Falcon Group, abstaining.  Falcon Group President Arnold Tauch and Curtiss Brown, the Galveston County representative, were absent.

Anderson said ground should be broken on the project this summer and construction is expected to take 30 months.

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