For our discussion of single purpose governments, a look at the power of Houston's Downtown Management District. Houston's city council voted to grant them additional authority over how funds collected from downtown property owners will be used to provide incentives to build homes in east downtown. The purpose of the initiative is to make the city more attractive for conventions.
From HC's story:
Until Wednesday, the City Council made all the decisions on who gets a tax break to build. By a 13-1 vote, the council handed over that power to the Downtown Management District for residential projects between Fannin and Highway 59 for the next four years.
The Downtown Living Initiative approved by the council grants a blanket $15,000-per-unit tax rebate to developers of the next 2,500 residential units close to the George R. Brown Convention Center, Minute Maid Park and the Toyota Center. The incentive is designed to lure developers that currently balk at the high land costs and parking shortages in the area. If it works as hoped, the initiative would help nearly double the number of residences downtown.
Those condos, apartments and lofts would fill with property- and sales-tax-paying residents on what are now vacant lots, prompt retailers to locate nearby and engineer a vibrant 24/7 street life near the convention center that would make the city more competitive in attracting conventions.
Opponents are concerned about what seems to be an abdication of the power of elected officials to make decisions and granted it to board members appointed by the mayor and approved by the council.
Here's a description of the Downtown Management District - which is a Municipal Management District - from their website.
