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METRO Buys Land To Sell To Developer At Later Date


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Metro is buying two blocks along its light-rail line in Midtown from a developer the agency expects will buy the property back and build transit-friendly residential and business space.

In a transaction unprecedented in the agency's history, the Metropolitan Transit Authority board voted March 22 to spend $7.2 million for the blocks bounded by Main, Holman, Travis and Winbern, next to the Ensemble station of Metro's light rail Red line.

The idea is to sell the tract back to developer Robert H. Schultz of RHS Interests for at least the same price after Schultz's partnership is ready to build. Schultz approached Metro with the proposal, he and Metro said.

Agency spokeswoman Raequel Roberts said Metro knows of no other instances in which a transit agency has bought land to hold and sell to a private company for what is known as transit-oriented development.

THE DEAL

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Notice Michael Berry's true colors shine through?

"Metro has completely lost focus," Berry said. "They're supposed to be in the business of moving people, and instead they want to be real estate developers."

He's just afraid of a little competition in the real estate arena.

Metro really had no other choice. They know they killed life on Main St. and I see it as their duty to help revive it.

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"Metro has completely lost focus," Berry said. "They're supposed to be in the business of moving people, and instead they want to be real estate developers."

He's just afraid of a little competition in the real estate arena.

Metro really had no other choice. They know they killed life on Main St. and I see it as their duty to help revive it.

Well they are a transit service. if they actually do build the garage portion there could be some justification, otherwise i'd have to agree with the lost focus. holding the property so a developer will profit using money from the 1 cent sales tax seems...suspicious at the minimum.

Edited by musicman
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They also build roads, collect tax, have a police force and own a lot of property.

to support transit directly yes. and the items on the website are projects which support transit directly.

Edited by musicman
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Buy some earplugs; the anti-rail, anti-METRO forces will be keening and wailing and shrieking and gnashing their teeth over this one.

I'm cautiously optimistic; the fact that the developer has to start paying interest after 12 months and that the property is METRO's to sell after 18 should serve as an incentive to both the builder and the City of Houston. Maybe the loss of tax dollars (but promise of more to come) will spur them to action in granting variances. If there was ever a time for councilman Peter Brown to shine, this is it.

A couple of nagging questions: does METRO have the authority to veto plans it deems unworthy? Will other significant properties on the Red Line (i.e., the Superblock) be eligible for the same sort of deal?

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I agree with Berry.

Metro should stick to providing transportation. This is a prime plot. Metro does not need to help out politically connected developers to make these projects viable.

Edited by nate
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If there was ever a time for councilman Peter Brown to shine, this is it.

A couple of nagging questions: does METRO have the authority to veto plans it deems unworthy? Will other significant properties on the Red Line (i.e., the Superblock) be eligible for the same sort of deal?

concur. so far the only thing that peter has shined is his shoes.

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CVS on Main street are a good thing. A CVS on every other block would be a good thing.

Overkill don't you think? I understand the convenience but that's a little too much. I could understand a Walgreens or CVS at every station, but only if the density was there. Have you seen the new CVS they are building at Elgin? Again, I do not think people are against the company CVS, but they are totally care free when it comes to design. The backside, possibly the drive thru pharmacy window, is facing the rail line. The whole block strip mall format is bad enough. How it is situated just screams bite me.

Edited by WesternGulf
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Anybody wonder why all these "prime lots" along Main St. look like a scene from Mad Max?

Midtown is a giant eyesore for the most part.

Good for Metro. Glad to see somebody in this city think outside the box.

Things take time. Have some patience.

Does lost tax revenue not bother anyone? or that Metro is accepting risk for the profit of this developer? or that these types of projects generally benefit those that are politically connected?

concur. so far the only thing that peter has shined is his shoes.

I hope that Peter Brown is never effective. I don't want Houston controlled by smart growth nazis.

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You know, people complain endlessly about how Metro doesn't make money, and they shouldn't subsidize train service, blah blah blah blah blah. So if Metro can make a buck in property development, and help encourage development along the rail line at the same time, you would think the naysayers would welcome it. Some people will just gripe about anything Metro-related. :wacko:

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A couple of nagging questions: does METRO have the authority to veto plans it deems unworthy? Will other significant properties on the Red Line (i.e., the Superblock) be eligible for the same sort of deal?

Probably not with regards to Schultz. Any developer worthy of the name would not have entered into this agreement without knowing the terms of the buyback.

If Schultz does not buy back the property, then METRO could resell with whatever development conditions that it wants.

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I hope that Peter Brown is never effective. I don't want Houston controlled by smart growth nazis.

You made your stance clear with your first post. You are entitled to yours, but lets not act like there is no government intervention when dealing with the opposite style of developing. Funny Houston's few zoning laws actually prohibit the building of communities that advertise smart growth. It was also post-war government housing policy that encouraged construction of new homes and the highway system (also government funded) made it economical to build new homes far away from the center city.

Edited by WesternGulf
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Guest danax
Midtown has stalled and needs a shot in the arm.

Many parts looks worse now than they did ten years ago.

I agree and the free market seems to have avoided this rail corridor like it was a slum.

I look at this move as back-door zoning, and I think it's worth a shot.

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but lets not act like there is no government intervention when dealing with the opposite style of developing. Funny Houston's few zoning laws actually prohibit the building of communities that adverise smart growth.

I never claimed there was no intervention

There are many stupid city ordinances in Houston that should be repealed in order to allow people to buld the type of projects that people here love. For example, the setback rules. I would support repealing them citywide, but they are particularly stupid when applied to midtown.

I'm sure that I would like the project that this developer and METRO want to build, but the process is corrupt and unfair to taxpayers.

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Does lost tax revenue not bother anyone? or that Metro is accepting risk for the profit of this developer? or that these types of projects generally benefit those that are politically connected?

I hope that Peter Brown is never effective. I don't want Houston controlled by smart growth nazis.

METRO is using the sales tax money to do something that isn't transit related (particularly if the transit parking garage doesnt work out)

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Somebody call the lawyers!

It is transit related:

something transit friendly and transit related are two different things. if they built the parking garage for transit customers then I would say that is transit related.

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