from the Austin American-Statesman: Governor slows public-private projects in Capitol complex, Austin neighborhoods - Posted: 4:49 p.m. Sunday, June 23, 2013 BY LAYLAN COPELIN - AMERICAN-STATESMAN STAFF With two strokes of his pen, Gov. Rick Perry has stopped plans for two new state buildings and slowed development on state lands in Austin’s neighborhoods. Perry vetoed construction of the two new state office buildings — including one in the Capitol complex — but also signed a bill giving Austin residents a greater opportunity to shape how state land is developed in their neighborhoods. It’s literally back to the drawing board for the Texas Facilities Commission, an agency that state lawmakers had criticized for getting ahead of them with plans to reshape the Capitol complex and develop vacant state lands around Austin. The facilities commission irritated some legislators and neighborhood groups when it began receiving unsolicited proposals from developers under a 2011 state law encouraging public-private partnerships, known as P3s. Although the commission never approved a proposed 47-story tower in the Capitol complex or a mixed-use development in North Austin, the controversy set the tone for the legislative session. Commission officials contend they always expected legislative input in their plans to maximize the value of state properties with P3s. “This agency doesn’t do anything without legislative approval,” said Aundre Dukes, portfolio manager for the facilities commission. “It was always required.” In a series of actions, including a broad bill to continue the facilities commission, the Legislature made sure its approval was required. It limited the agency’s plans to use P3s to design, build and operate buildings in the Capitol complex unless the Legislature specifically authorizes the project. Legislators also approved a one-year moratorium on all P3s by state agencies, excluding institutions of higher education, and will require that a legislative body — the Partnership Advisory Commission — review all future P3s for the state. The General Land Office also was barred from selling land in the Capitol complex after the General Land Office auctioned off an old service station at 15th Street and San Jacinto that became a barbecue restaurant. Advocates of public-private partnerships lobbied to contain the Legislature’s restrictions for P3s to the Capitol complex. “The Capitol complex was obviously what had gotten everyone’s attention,” said Brett Findley, president of the Texas P3 Association. He blamed the backlash on a state agency moving faster on P3s than the Legislature anticipated. “What is being said to the private sector is, ‘We got over our skis, we went too fast, and we need to make this a slow, transparent process,’” Findley said. Findley said P3s remain a viable option for the state, adding, “There are no shortcuts.” The governor went along with the P3 restrictions for the Capitol complex. Despite the controversy, the facilities commission remains in charge of creating a master plan for the Capitol complex, but it now must include several agencies in the planning, and the State Preservation Board has the final say. The governor, lieutenant governor and speaker are members of the preservation board. With P3s off the table, the Legislature still saw a need for new state buildings. It approved $325 million in bonding authority to construct two new office buildings — one in the Capitol complex and the other at the state health care complex in North Austin. But Perry vetoed that budget item, citing the need to wait for a master plan, due in 2016, for the Capitol complex. State Sen. Kevin Eltife, R-Tyler, said he thought Perry was misinformed about how the construction plan would save the state money. The state leases 3 million square feet of office space in Austin. The Legislature thought it was better to use that lease money to finance the construction of new state buildings. “As astute a businessman as Rick Perry is, I know had he understood it, he would have wanted us to pursue these buildings because they pay for themselves with rent we are already paying other landlords,” Eltife said. Eltife, a real estate businessman in Tyler, said it is better for the state to own instead of renting space. “We could have taken the current rents we are paying, applied them to the debt service, and it would have paid for itself,” Eltife said. “In 20 years, you’d wake up with $300 million of paid-up buildings.” Without the governor’s veto, Dukes said, the two new buildings could have been opened by 2018. Now, he estimated, it would be 2020 at the earliest — and only if the Legislature again authorizes the plan during the 2015 legislative session. Eltife said he would try again, but he noted that many of the state’s leases are expiring. He said lease and interest rates are rising. “Unfortunately, we’re going to pay more,” he said. In another action, the Legislature signaled its desire for the facilities commission to submit its plans for developing state lands outside the Capitol complex to local authorities. That was in response to the Bull Creek Road Coalition, which represents 7,500 households in North Austin, objecting to an unsolicited proposal to build a mixed-use development on 75 acres of vacant land in the neighborhood. Although the facilities commission was conferring with city officials, neighborhood residents feared the state would rush the project through without addressing their concerns about traffic and other impacts. State Sen. Kirk Watson, D-Austin, inserted language that would allow the agency to do a development plan and require it to comply with local zoning and land use regulations. If there is a disagreement, a special review board with three state and two local officials would resolve the differences. Although there was concern that Perry might veto the bill because it could be seen as undercutting state sovereignty, Watson persuaded the governor’s staff that the General Land Office has used the same system in developing state lands under its control. “The GLO has been doing this forever,” Watson said. “I am very happy we were able to give input from the people who live near and around where this development will occur.” With Perry signing the legislation continuing the state agency, the facilities commission and the city of Austin can now pick up where they left off before the Legislature convened in January. On the table are proposals for up to $400,000 in city money to help the facilities commission in planning future developments. “We are pleased that the state of Texas recognized the value of local collaboration in the redevelopment of state-owned land with Austin,” said City Council Member Sheryl Cole. “We look forward to working together.” A meeting has been scheduled in August for all parties from the state and city to discuss how the legislation affects the state agency’s plans. Sara Speights with the Bull Creek Road Coalition praised the legislation. “Any way you look at it, the P3 process is more open, transparent and better,” she said. “It is a great opportunity for everyone to work together.”
Posted on: Tue, 25 Jun 2013 20:13:16 +0000
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