13/01/2015
Interesting parallels with other regeneration efforts the world over...
HOUSTON—Government-led planning takes a backseat role in this Southeast Texas metropolis. The lack of a zoning code is a matter of local pride.But an apartment building boom has taken hold in the city’s office-tower-filled downtown, and it isn’t just the private sector at work.Nudged by a tax break meant to spur downtown residential construction, developers plan more than 4,200 new apartment units in the area, some of which already are underway, according to the Houston Downtown Management District. The units coming online would more than triple the downtown population of about 3,600, according to the geographic boundaries the district uses.The tax break, passed by Houston’s City Council in 2012, offers relief of up to $15,000 per unit, spread over 15 years. It abates most of an owner’s annual property tax. Most of the new units are rentals, so the benefit goes to the developer.The rationale: It pays to transform the city’s downtown from a primarily office-hours locale where the sidewalks are mostly vacant in the evenings and street-level restaurants are few are far between. New residents will help spur other economic activity like restaurants and retail, backers say. What’s more, the city’s growth in recent years has made for increased citywide traffic gridlock, so many might appreciate living within walking distance of work.A vibrant downtown “has value to us,” said Andy Icken, the City of Houston’s Chief Development Officer.The tax-break program is meant to spark critical mass. It expires after it funds 5,000 units, a nod to the intervention-averse culture in Houston.“Whenever we approach planning in the city, it’s a heavy emphasis on carrots, not sticks,” Mr. Icken said.The move comes as downtowns in cities across the U.S. are seeing growing demand from developers. With or without tax breaks, the millennial generation has shown an affinity for urban-style living.Critics say a move to cities’ urban cores shows the Houston tax break isn’t needed. They say the city is merely distorting the market, contending that developers would likely just build units elsewhere. Mike Sullivan, currently Harris County’s Tax Assessor-Collector, was the lone “no” vote against the program when he served on the City Council in 2012. He still bristles at the notion that the city would push residential use downtown.Whenever we approach planning in the city, it’s a heavy emphasis on carrots, not sticks Andy Icken, City of Houston Chief Development Officer“I think the market …