Ramirez: Capital Recovery Fee program is being proposed with quality of life in mind

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BROWNSVILLE, Texas - Brownsville City Manager Helen Ramirez says the proposed Capital Recovery Fee program is being developed to improve the quality of life of the city’s residents.

The plan is to impose a one-time charge on developers as they begin new projects. The fees raised would go towards roadway improvements. Certain exemptions are being built into the program, such as affordable housing projects and extensions to legacy businesses, which are defined as those based in Brownsville for a minimum of five years.

Asked by Ron Whitlock Reports why the proposed program is important, Ramirez said:

“It's very important because what we've learned is that our population doesn't want to spend all their time in traffic. They want quality of life. Part of that quality of life is having an infrastructure or road network, bike network, pedestrian network, that works for the community and keeps growing as our population grows, right, as our commercial uses grow and our industrial uses grow. 

“We need to grow with it. Because, right now, we're behind. Many cities in the United States are behind. There's never enough money and the prices keep going up.”

By way of example, Ramirez cited the reconstruction of old Highway 77. 

“The initial cost was $4 million. But when we bid it out (it became) an $8 million project, $12 million when you total (up everything). That's one road. So, if we want to think about… if we want to get to A to B, to be able to pick up our kids, to be able to go to the grocery store, to be able to go to work and have a good quality of life and not become an Austin or a traffic-ridden city, there has to be foresight, strategy and investment.”

Ramirez said the roads that will be improved if the Capital Recovery Fee program is approved by city commissioners will be based upon technical documents such as the city’s mobility plan that was recently approved by city commissioners. 

“These are very well thought out roads that either need to be widened or expanded. And also, I would say, we're also looking at intelligent transportation systems. So whatever we build out should have the latest software to be able to detect vehicles right and make it make them go through our city faster and more efficiently.”

Ramirez was asked if the city commission is going to be able to satisfy the wishes of developers if it goes ahead with the Capital Recovery Fee program.

“I believe so,” Ramirez answered. “We're going to start very small. While the consultants and the studies show that we could have started at a 25 percent recovery, or a $2,000 per residential lot, I think that we're saying is,  we've heard from our constituents, our stakeholders, our community.”

Ramirez said if the community was asked they would say road improvements are a top priority.

“That's the biggest concern that we get, not only from our residents, but from our developers, right? Are you going to improve this infrastructure,  when are you going to widen this road? And that's what you'll find nationwide. A city's infrastructure, whether it's new growth or maintaining existing growth, there's never enough money. And so, just having developers give a some small portion of their impact to the road network, that’s all we're asking for.”

Ramirez said the city is still going to have to issue bonds and these will be paid for by existing residents. 

“So the question is, how do we widen the pot to be able to accelerate growth? Because it's not only new roads, it's also widening existing roads and also making it safer for us to walk, to drive, to bike and ped within the city.”

Ramirez said the city commission is committed to being open and transparent on the Capital Recovery Fee issue.

“We have much communicating and engagement. We have talked with over 100 stakeholders and developers. And so what I would say is, embrace the change because, right now, while some cities, such as McAllen or other cities, have traffic impact studies that they require the developer to do and they have to be 100% of the improvement, we’re asking for ten percent. Because, right now, we don't have any teeth in our codes to require them to build the infrastructure or roads. So this will allow us at least just to start small, while other communities are requiring 100 percent.”

A realtor’s perspective


A realtor who wished to remain anonymous told the Rio Grande Guardian International News Service:

“I read Mario Muñoz's report in the Guardian on the city meeting with developers and the upshot of the Brownsville-South Padre Island Board of Realtors meeting.

"What is missing and very important that came out of the board of realtors meeting is this:

“We need at least a three pronged solution to the road issues. You cannot only impose fees on developers. What happens if and when we get a downturn in the economy. No roads repaired or built?

“The realtors suggested several additional ways to get moneys for infrastructure.

“One, a modified developer fee based on the project and if it was a big one like a hotel then an extended payout for the fee. They need to work on structuring these fees equitably. 

“Two, a bond issue.

“A bond issue will most likely assist in paying for the roads. I understand city officials are still discussing the percentages for the developer fees and might be making adjustments. Additionally they may also raise taxes as well to bring Brownsville roads to standard.

“Such an approach would spread the risk over different ways and ensure these improvements will get done. We, the public, do not want to be railroaded into a one option solution.”

Editor's Note: Here is an audio recording of Ron Whitlock Report's interview with Brownsville City Manager Helen Ramirez:


Editor's Note: Rio Grande Guardian reporter Steve Taylor contributed to this story from Brownsville.


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