The city is in negotiations with the Houston Dynamo about constructing a stadium for the two-time national champions, but it is far from clear how much public money will be used. But an item on this week's City Council agenda offered a clue as to how the city plans to finance the purchase of the land.
The first item on the agenda for Wednesday is a public hearing on a plan to have a downtown special taxing district — called a tax increment reinvestment zone — pay up to $20 million for "cultural and public facilities" related to a six-block tract being targeted for the stadium.
Which means, in effect, the city is looking to use property taxes to finance the purchase.
In the east part of downtown, those taxes are collected by a tax increment reinvestment zone, TIRZ 15, which includes the possible stadium tract.
Under a TIRZ, property tax revenues generated within the boundaries are frozen at a specified level. As development occurs and property values rise, tax revenue above the set level — known as the increment — is funneled back into the zone to pay for infrastructure and capital improvements to help attract further economic development.
TIRZ monies also could be used to secure bonds to pay off the purchase of the land.
Mayor Bill White has said the land the city intends to buy would be used for "economic development," which may or may not include a soccer stadium.
He said he preferred the Dynamo owners build a $70 million to $90 million stadium and give it to the city. But he has not ruled out using public funds.
White has been careful to point out that TIRZ money already is segregated from general city funds and cannot be used outside the zone.
That distinction is immaterial to Harris County Tax Assessor-Collector Paul Bettencourt.
"This really is property tax revenue that's just being diverted into another account; it's public money," Bettencourt said. He said he would not be surprised if the city ends up investing far more than the $15.5 million offered for the land.
Bettencourt said having public input on a soccer stadium would be a good idea, even if it is not legally necessary.
"As the complexity and scope of the deal expands, the obligations of the city increase, and the need for having a public vote grows," he said.
White said that if public funds are used for the construction of the stadium itself, city leaders would be cautious.
"We're not going to just open up the wallet and do whatever," White said. "We won't use funds that could be used for providing essential city services, such as solid waste, and parks and libraries and things like that, public safety."
White did not rule out "event-related taxes," such as a levy on tickets or parking to pay for part of the stadium.
By establishing the TIRZ and diverting all property tax money from the area into it to finance the infrastructure development, land purchase and other needs, the city is basically using funds that could be used for "providing essential city services, such as solid waste, pakrs and libraries and things like that, public safety" to subsidize the building of a stadium whose best argument for existence is that "the Dynamo deserve it".
Here's a concept: If the Dynamo "deserve" a stadium and its viable then let them build it, run it, and earn profits from its operations. I mean, this is supposed to be a huge financial boon right?
I know what you're saying: "Well, you're just a racist because we paid for parts of the stadiums for the Texans, Astros and Rockets didn't we?"
Yes, we did, and I didn't think that was the correct thing to do either. That it's foolishness is being revealed in the current Astrodome fiasco only serves to strengthen my belief that throwing more good money after bad is the wrong way to go.
You retort: "Oh, but this will spur development downtown and we will have concerts and events that we couldn't have otherwise.
Really? You think a 30,000-40,000 seat soccer specific stadium would get International games away from Reliant? Or that more concerts would book there than at Toyota Center? Or that suddenly there will be development where there's been precious little surrounding Minute Maid and Toyota Center? (ignoring parking garages that is)
The argument is bollocks. The fact is there are already existing facilities in Houston that can do everything bigger and better than the proposed Downtown soccer stadium except give a few rich guys a ritzy Downtown office to impress other rich guys with.
There's plenty of City-owned land floating around that can be donated for the express purpose of building a stadium complete with an ajoining practice facility and youth soccer complex. This can even be done inside the City limits, just in a different part of the City than downtown on a tract of land that will have to be purchased with tax money, will cause severe mobility problems, and will do nothing to improve the area.
Sadly, we're not hearing anyone talk about that. For some odd reason this thing HAS to be downtown. Maybe, the next time it floods, the stadium can be used as temporary housing in tandem with George R. Brown and Minute Maid. Unless there's a game to be played of course.
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