In Rice Village, four people approved more than $430 million in public borrowing. The bonds will fund a new Rice Village Management District, which can pay for upgrades to streets, water systems, and recreational areas. The borrowing could be repaid through a property tax of up to $1.50 per $100 of assessed value within the district.
How four ballots approved $430 million
According to Houston Chronicle, only four people voted in this month’s election for the Rice Village Management District. Harris County registration records showed 12 residents were eligible to weigh in, but at least six no longer live in Texas. One of the four voters opposed all five bond propositions, yet a simple majority was enough for the package to pass.
Sanjay Bapat, the attorney for the district, told Houston Chronicle that Rice Real Estate Co. is expected to front the money for initial improvements and then be reimbursed using the district’s future taxing power. It is an arrangement that ties a private, for-profit arm of Rice University to a public revenue stream approved by a handful of voters.
How the district was created
The Houston City Council formally consented to the creation of the Rice Village Management District in March, with planning documents describing a footprint of roughly 28.7262 acres within city limits, as mentioned by the City of Houston. After that, petitioners filed with the Texas Commission on Environmental Quality, and the agency published notice of the petition in the Texas Register.
City records emphasize that management districts can issue bonds only after voters approve them and that Houston does not assume responsibility for any district debt. Translation: the district gets a taxing tool, but the city keeps its distance if the math does not work out.
Rice’s Gateway and what the bonds will pay for
On November 6, Rice University rolled out its $120 million Gateway Project, aimed at modernizing Rice Stadium and building a pedestrian street that links the campus directly to Rice Village, as reported by Rice University. On the public side of the ledger, voters signed off on bond categories that include $161.33 million for water and sewer projects, $106.13 million for recreational facilities and $171.75 million for roads, along with authority to set a property tax rate as high as $1.50 per $100 of assessed value, as per Houston Chronicle…