Wednesday, August 18, 2010

What the Hell is a 380?

I've really just studied up, and read a lot on all of these goings on.  Besides the details of the deal itself, IE -the percentages that are being discussed between the CoH and the Developer (Ainbinder) regarding compensation from a proposed 380 agreement, all the other information is public knowledge.  Hell, before a couple of weeks ago, I didn't even know what a 380 was. 

What it boils down to is this: 

-Developer (Ainbinder) is asking for re-imbursements for Capital Improvements regarding the Development
-This plan is called a '380'
-A '380' is funded by taxpayer dollars, and effects all Houstonians, no matter where you live
-A '380' is not mandatory
-A '380' must be voted upon by city council

Tax Incremental Revenue Zones

-A TIRZ is designated as part of neighborhood or zip code where the CoH identifies; Here's a good overview of TIRZ.
-380's have been used by the CoH with TIRZ's in order to encourage development + growth.  A recent project of this nature is the downtown Houston Pavillions, which is where the House of Blues is. 
-A TIRZ has a BoD, and oversight on such projects + public monies
-The Ainbinder development in 77007 is not in a TIRZ
-The City has no plans to extend a TIRZ to encompass this project

CoH 380 Directly with Private Developments

-The first CoH 380 is up for a vote today.  
-This is between InTown Homes and the CoH (City Council Agenda - 18 Aug 2010 
-This marks the first time the CoH will enter into a direct agreement of such a nature with a private developer
-The Ainbinder development is the first time that the CoH will attempt to enter into an agreement with a private developer for a retail center
-A 380 Development directly with a private developer (not a TIRZ) has no BoD Oversight on utilization of Public Monies

The intention is to develop the land.

-The Developer has publicly stated that the land will be developed
-The developer has publicly stated that they have had numerous conversation with multiple potentials retail clients
-The Developer is presently in a period of time, typical of Commercial Real Estate deals wherein most parties are open to walking away from the deal at anytime.  
-This period of time is used to shore up financial, environmental, and planning details before both parties finalize their contracts
-The developer has an interest in the CoH approving a 380 agreement for this development asap, as it will be a 'deliverable' as part of the finalized agreement with Walmart

Thats the 380 in a nutshell.  Boiled Down, it looks like this: 

380 = Taxpayer dollars
380 = Given by City to Developer
Developer = Capital Improvement it has to complete anyway for largescale development
Developer = Taxpayer Dollars as part of their overall deal with Walmart

1 comment:

  1. Why assist the development with a 380?

    Will we get improvements above and beyond what they are required to do in the first place?

    Our mayor and city council are playing a double game. The mayor claims she can't stop this Walmart because it is beyond her legal authority.

    Great... but how the hell does she justify this 380 agreement????