Harris County Toll Roads To Pay For Texans Practice Field

[Mark F. Barnes]

But, wasn't it originally intended to be dissolved, once the stadiums were built? Isn't the language to that effect written somewhere in the original documentation for the Houston Sports Authority?

County Judge Robert Eckels, Commissioner Steve Radack and state Rep. Robert Talton, R-Pasadena, have called for scaling back or eliminating the sports authority. They contend that the sports authority fulfilled its mission by building Minute Maid Park, Reliant Stadium and Toyota Center. Now all it does is make payments on about $1 billion in bonds issued to build the venues, Eckels said earlier this year. That could be done more cheaply, perhaps by county employees already tasked with paying off bonds, he has said. The Greater Houston Convention and Visitors Bureau and venue operators - the Astros, Texans and Rockets - could handle marketing, Eckels has said. But Joseph Slovacek, a member of the sports authority's board, said the authority's future is not just in the county's hands. The Legislature would have to approve dismantling an organization that it allowed to be created. In addition, the authority is needed to repay bonds because bond firms made deals with the authority, not the county. So basically they aligned themselves a security blanket that keeps them in power and they cannot be dismantled with out an act of congress or the legislature, literally. Pit of vipers tell you, a pit of vipers. Harris County Judge Robert Eckels, Commissioner Steve Radack and others have pushed for scaling back or eliminating the sports authority now that the sports facilities have been built. But they have met opposition in the way the HSA structured the bonds to lock them in place. A smart move would be to make part of this "re-financing" the break-up of the HSA. But there is more to the trickery than meets the eye.

Back in June knowing full what they are facing, the HSA goes out and hires, Janis Schmees as its executive director. She was given the mandate of bringing more events to the city - even though the operators of Minute Maid Park, Toyota Center and Reliant Park shoulder most of that burden. Schmees said she will focus on attracting track and field and other Olympic events as the city gears up to make a bid for the 2016 Olympics. She also will try to bring in youth soccer tournaments and other minor events that attract people to venues and put people in hotel rooms. Now here's the twist. Eckels knows Schmees, having worked with her on a foreign trade mission, and supports her hire, Pretty neat trick blunting Eckels' opposition to the Authority by hiring someone he likes, I must say. I have no direct quote from Judge Eckels, so I can't say whether or not it's destined to work. But you do have to salute the effort.

[musicman]

Good info Mark.

Shrewd move by the sports authority, but it sure does look like they'll be around a LOT longer. Even though not illegal, the temporary load sure does look bad.

Edited October 11, 2006 by musicman

[pineda]

more on the Houston Sports Authority...

"Is it possible to dissolve a governmental agency?

This Chronicle article reports on the brewing controversy over whether the Harris County-Houston Sports Authority -- the quasi-governmental agency created to coordinate the construction of Houston's Minute Maid Park, Reliant Stadium and Toyota Center -- should be dissolved because its purpose has been achieved and it has nothing left to do.

Seems as if a few local legislators are questioning whether the $3 million annual overhead for the Sports Authority is really worth it when it appears that all the Authority is doing is writing checks on bonds issued to build the stadiums. Supporters of the Sports Authority are concerned that dissolving the Authority would impair the debt rating on the bonds. After spending a total of $1.036 billion to build all three stadiums, the Authority voted to sell another $37 million in bonds last summer to induce the investment rating agencies not to downgrade the bonds from investment grade to junk. The additional bond revenue was needed to make up for lagging hotel and car rental tax revenues that are dedicated to pay the bond debt.

The sports authority has about a $3 million operating budget, about half of which is dedicated to contractual obligations and professional fees that either the city or county would have to pay even if the authority were dissolved. However, the bonds are amortized over 30 years, so saving $1.5 million a year over that period is not chump change.

Curiously, the Sports Authority is attempting to justify its existence by proposing the construction of yet another sports venue."

[Houston19514]

Good info Mark.

Shrewd move by the sports authority, but it sure does look like they'll be around a LOT longer. Even though not illegal, the temporary load sure does look bad.

If you think the temporary loan looks so bad, what would you propose as an alternative? Just default on the current loan and destroy the Sports Authority's (and possibly the County's credit rating)? Pay off the current loan with general tax funds? This may be a good deal for both the Sports Authority AND the HCTRA. Because of cutting out the middle men, so to speak, it is entirely possible that HCTRA may earn higher interest than it otherwise could earn and the Sports Authority might pay lower interest than it would otherwise have to pay.

[musicman]

If you think the temporary loan looks so bad, what would you propose as an alternative? Just default on the current loan and destroy the Sports Authority's (and possibly the County's credit rating)? Pay off the current loan with general tax funds? This may be a good deal for both the Sports Authority AND the HCTRA. Because of cutting out the middle men, so to speak, it is entirely possible that HCTRA may earn higher interest than it otherwise could earn and the Sports Authority might pay lower interest than it would otherwise have to pay.

obviously appearance of impropriety is not important to you. I would just get it from some agency NOT related to the county.

[Houston19514]

obviously appearance of impropriety is not important to you. I would just get it from some agency NOT related to the county.

On the contrary, the appearance of impropriety is very important to me. I don't think it appears improper. I don't see anything wrong with it AT ALL. We are not talking about a shell game here. A shell game is where there is something (of value) under one shell and NOTHING under the other shells. Here, they are trading something of value for something of value. (Cash now in exchange for cash plus interest later, with a security interest in revenue flows and/or real estate to ensure the cash is repaid.) A simple, straight-forward, logical transaction. No subterfuge, no empty shells.

On another note, Mr. Barnes, I am still waiting for your explanation of your rant about bonds, and to see your evidence or explanation of the Sports Authority's "selling hogs they don't own."

Edited October 11, 2006 by Houston19514

[musicman]

On the contrary, the appearance of impropriety is very important to me. I don't think it appears improper. I don't see anything wrong with it AT ALL. We are not talking about a shell game here. A shell game is where there is something (of value) under one shell and NOTHING under the other shells. Here, they are trading something of value for something of value. (Cash now in exchange for cash plus interest later, with a security interest in revenue flows and/or real estate to ensure the cash is repaid.) A simple, straight-forward, logical transaction. No subterfuge, no empty shells.

On another note, Mr. Barnes, I am still waiting for your explanation of your rant about bonds, and to see your evidence or explanation of the Sports Authority's "selling hogs they don't own."

read the toll road charter

The Harris County Toll Road Authority's primary objective is to operate and maintain the toll roads in an efficient manner so as to derive sufficient revenues to recover costs and retire the outstanding indebtness payments for Fiscal Year 2004-05 with major roadway sections consisting of the agencies numerous funds and twenty organizations: Hardy North and South, Sam Houston Tollway South, Central, North, Ship Channel Bridge, East, Southeast, Southwest, Hardy Airport Connector, and the Westpark Tollway scheduled to open March 2004 and Phase 1 of the Ft. Bend Tollway Connector, scheduled to open in the Fall of 2004.

Other objectives are to improve roadway through an ongoing connectivity program which allows for mobility improvements to and from existing and/or projected new tollways in and out of Harris County. New and/or ongoing projects consist of the IH-10 Corridor, Beltway 8 East, Hardy extension into downtown, Fairmont Parkway, Fort Bend extension, completion of the Westpark Tollway and Westpark extension as well as lane widening on the Hardy and Sam Houston Tollways, improvements on Fellow Road and the Ship Channel Bridge.

The agency also strives to provide excellence in service to Toll Road patrons. Service through the EZ Tag Program will be extended during FY 2004-05 by providing two additional EZ Tag Stores; one near the Westpark Tollway and another in Ft. Bend County.

Projects which will be in study phases are US 290, 288 corridor, Hardy Extension into Montgomery County and Segments E, F, and G of the Grand Parkway.

I guess i'm missing the part where they are to bail out the houston sports authority.

[RedScare]

read the toll road charter

Projects which will be in study phases are US 290, 288 corridor, Hardy Extension into Montgomery County and Segments E, F, and G of the Grand Parkway.

I guess i'm missing the part where they are to bail out the houston sports authority.

It's right there in front of your eyes, musicman. They loaned the money for the practice facility to further their study of Hwy 288....which is just a few blocks away. One day they may need the facility for ROW expansion. This just facilitates the acquisition.

Makes sense to me.

[musicman]

Makes sense to me.

or dollars to the HSA

[Houston19514]

read the toll road charter

The Harris County Toll Road Authority's primary objective is to operate and maintain the toll roads in an efficient manner so as to derive sufficient revenues to recover costs and retire the outstanding indebtness payments for Fiscal Year 2004-05 with major roadway sections consisting of the agencies numerous funds and twenty organizations: Hardy North and South, Sam Houston Tollway South, Central, North, Ship Channel Bridge, East, Southeast, Southwest, Hardy Airport Connector, and the Westpark Tollway scheduled to open March 2004 and Phase 1 of the Ft. Bend Tollway Connector, scheduled to open in the Fall of 2004.

Other objectives are to improve roadway through an ongoing connectivity program which allows for mobility improvements to and from existing and/or projected new tollways in and out of Harris County. New and/or ongoing projects consist of the IH-10 Corridor, Beltway 8 East, Hardy extension into downtown, Fairmont Parkway, Fort Bend extension, completion of the Westpark Tollway and Westpark extension as well as lane widening on the Hardy and Sam Houston Tollways, improvements on Fellow Road and the Ship Channel Bridge.

The agency also strives to provide excellence in service to Toll Road patrons. Service through the EZ Tag Program will be extended during FY 2004-05 by providing two additional EZ Tag Stores; one near the Westpark Tollway and another in Ft. Bend County.

Projects which will be in study phases are US 290, 288 corridor, Hardy Extension into Montgomery County and Segments E, F, and G of the Grand Parkway.

I guess i'm missing the part where they are to bail out the houston sports authority.

Give it a rest, man. Now you're trying to pass some words off as the "Toll Road Charter" when it is clearly nothing more than a statement of their goals and objectives for 2004. (You could have at least come up with something more current for your little scam attempt.) According to you and your "charter" they apparently are not allowed to invest idle cash at all...

Edited October 11, 2006 by Houston19514

[musicman]

Give it a rest, man. Now you're trying to pass some words off as the "Toll Road Charter" when it is clearly nothing more than a statement of their goals and objectives for 2004. (You could have at least come up with something more current for your little scam attempt.) According to you and your "charter" they apparently are not allowed to invest idle cash at all...

it's not "my" charter. i got that off of their website. someone else needs some rest.

[westguy]

Then we can use the cigarette tax to pay for toll road maintenace. Then use Social Security to pay for the lung cancer patients.

[Houston19514]

it's not "my" charter. i got that off of their website. someone else needs some rest.

Then presumably you'll be able to provide us with a link.

Then we can use the cigarette tax to pay for toll road maintenace. Then use Social Security to pay for the lung cancer patients.

Good grief, not another one. . . Again, this a loan, a fully-secured loan.

BTW, the government has for many decades been using Social Security funds to pay for all sorts of things in the general budget of the United States; the difference there is that the "loan" was not secured by any asset or dedicated revenue stream. THAT is a shell game.

Edited October 11, 2006 by Houston19514

[musicman]

Then presumably you'll be able to provide us with a link

harris county toll road description

harris county toll road website

Edited October 11, 2006 by musicman

[Houston19514]

harris county toll road description

harris county toll road website

Of course, it was in fact not on 'their' website, meaning the Harris County Toll Road Authority's website, but was on the Harris County website. And, as anyone can see, it is no sense a "charter", and the site does not refer to it as such. It is nothing more than a simple, brief description appearing in a list of descriptions of the various Harris County departments and agencies. Nice try, but one can ruin one's credibility with stunts like that. As you surely know, a "charter" is quite different from a "description."

And you have still avoided the issue that according to you and your interpretation of what you call the HCTRA's charter, the HCTRA apparently is not allowed to invest any idle cash.

Edited October 11, 2006 by Houston19514

[musicman]

Of course, it was in fact not on 'their' website, meaning the Harris County Toll Road Authority's website, but was on the Harris County website. And, as anyone can see, it is no sense a "charter", and the site does not refer to it as such. It is nothing more than a simple, brief description appearing in a list of descriptions of the various Harris County departments and agencies. Nice try, but one can ruin one's credibility with stunts like that. As you surely know, a "charter" is quite different from a "description."

try this 2nd link...you are mistaken it IS the harris county toll road website "hctra.com". just like i said...the first was the description from the county website.

Good grief, not another one. . . Again, this a loan, a fully-secured loan.

BTW, the government has for many decades been using Social Security funds to pay for all sorts of things in the general budget of the United States; the difference there is that the "loan" was not secured by any asset or dedicated revenue stream. THAT is a shell game.

thank you bob barker.

Edited October 11, 2006 by musicman

[pineda]

Houston19514-

You don't even live here, do you? Why do care about any of this?

[Houston19514]

try this 2nd link...you are mistaken it IS the harris county toll road website "hctra.com". just like i said...the first was the description from the county website.

thank you bob barker.

I know the second link was the hctra website, you knucklehead ;-) . The description ("charter") you posted was NOT from the HCTRA website, as you said it was. It was instead from the Harris County website. And as I said above, it was in no sense a "charter."

Houston19514-

You don't even live here, do you? Why do care about any of this?

??? What an odd post. Are you going to exclude people from caring about Houston if they don't live there? FWIW, I've probably paid more towards the Harris County Sports Authority than most of you who live there, because of all those car rental and hotel taxes.

Edited October 12, 2006 by Houston19514

[musicman]

Houston19514-

You don't even live here, do you? Why do care about any of this?

Thanks for making this obvious to me....that explains a LOT.

His city is so perfect that he has to have something to complain about so he complains about Houston.

Edited October 12, 2006 by musicman

[Houston19514]

Thanks for making this obvious to me....that explains a LOT.

His city is so perfect that he has to have something to complain about so he complains about Houston.

ROFLMAO What thread have you been reading man? I am complaining about Houston????? I am the one who is supporting what is being done in Houston. YOU are the one complaining.

[musicman]

ROFLMAO What thread have you been reading man? I am complaining about Houston????? I am the one who is supporting what is being done in Houston. YOU are the one complaining.

same one as you but i shouldn't be watching LOST and doing this at the same time....

as their website says....

The Harris County Toll Road Authority (HCTRA) came into existence when, in September, 1983, Harris County voters overwhelmingly approved a referendum by a 7-3 margin which signaled the community's interest in improved mobility and allowed for the construction of the Hardy Toll Road and the Sam Houston Tollway.

i'm still confused how the loan is in their realm.

[westguy]

i'm still confused how the loan is in their realm.

It isn't. That is something he can't explain. This is just another thing that's going to drive up toll receipts.

Edited October 12, 2006 by westguy

[Houston19514]

same one as you but i shouldn't be watching LOST and doing this at the same time....

as their website says....

The Harris County Toll Road Authority (HCTRA) came into existence when, in September, 1983, Harris County voters overwhelmingly approved a referendum by a 7-3 margin which signaled the community's interest in improved mobility and allowed for the construction of the Hardy Toll Road and the Sam Houston Tollway.

i'm still confused how the loan is in their realm.

Face it, Musicman, you are just confused. ;-)

Let me try one more time. Making loans is clearly not the focus of their existence; it's not their mission, it's not their "realm". But they take in a lot of cash... One would presume they dont' just stuff it in filing cabinets as it comes in... One would further presume that they somehow invest the excess cash. Neither is it their "realm" to invest money in bank CD's or corporate bonds or government bonds (which, as Mr. Barnes so vehemently pointed out in his rant earlier in this thread, are just another form of loan), but they surely are expected to do something to earn a fair and reasonable rate of return on their excess cash. So, in spite of it not being their "realm" they surely in fact do make investments in such instruments. From the HCTRA's end of the deal, making the loan to the Sports Authority is nothing more than making an investment for a fair and reasonable rate of return.

It isn't. That is something he can't explain. This is just another thing that's going to drive up toll receipts.

See perfectly simple and obvious explanation in response to Musicman's post.

[pineda]

??? What an odd post. Are you going to exclude people from caring about Houston if they don't live there? FWIW, I've probably paid more towards the Harris County Sports Authority than most of you who live there, because of all those car rental and hotel taxes.

You misunderstood. I wouldn't dream of excluding you. I was just curious why you so vehemently defend the Houston Sports Authority. I don't ever hear any Houstonians defending the HSA's actions, so it's curious that someone who doesn't even live here would have such a passionate defense of the HSA, especially since you mention that you've paid more than your fair share of "all those car rental & hotel taxes."

Edited October 12, 2006 by pineda

[Houston19514]

You misunderstood. I wouldn't dream of excluding you. I was just curious why you so vehemently defend the Houston Sports Authority. I don't ever hear any Houstonians defending the HSA's actions, so it's curious that someone who doesn't even live here would have such a passionate defense of the HSA, especially since you mention that you've paid more than your fair share of "all those car rental & hotel taxes."

Because I just don't see anything at all wrong with this particular financing transaction and I was seeing a lot of falsehoods and ridiculous, unfounded and irrelevant accusations tossed about.

I have not vehemently defended the Sports Authority generally, only this transaction. Like I said earlier in the thread, I am not out to defend every action the Sports Authority has taken, nor to defend its continued existence. But just because they maybe should no longer exist or maybe took some ill-advised actions in the past, does not autmatically make THIS action a bad one. AND, the continued existence or non-existence of the Sports Authority is irrelevant to this particular matter, as SOMETHING had to be done to refinance this particular loan. Apparently the County Commissioner's approved the transaction anyway, so even if the Authority had been disbanded, as some would prefer, we would still most likely be doing this same transaction.

[pineda]

I'm just saying that I find your passion & interest in this matter and others that take place in a city/county/state in which you do not live a little curious. Maybe you should consider moving here...

good article about the HSA by Lynn Ashby!

Edited October 12, 2006 by pineda

[Houston19514]

I'm just saying that I find your passion & interest in this matter and others that take place in a city/county/state in which you do not live a little curious. Maybe you should consider moving here...

I'm not sure I can completely explain it either, except to say that I used to live there and once Houston gets in your blood...

And I'm working on that. ;-)