Lindale Municipal Management District Information

A note from the author:

At the conclusion of the first Lindale Neighborhood Association meeting specifically devoted to a proposed Lindale MMD (May 1, 2013) it was suggested that we go out and "educate" our neighbors about this MMD option for streets. I myself had never heard of MMDs so first I determined to educate myself. What I found as I researched disturbed me and it seemed that the more I peeled this onion the more it stank. I am sharing the results of my research into MMDs in the hope that it will be useful to others who are interested in exploring the full ramifications of MMDs for the Lindale neighborhood.

On this page you will find detailed information about Municipal Management Districts (MMDs) in general as well as information relating specifically to MMDs in Corpus Christi. The bulk of this page is made up of quotes from online newspapers, website articles, and various government web pages and documents. All sources are documented with links to the original sources where possible.

MMD Enabling Statute

Summary: Municipal Management Districts (MMDs) were originally created by the Texas State Legislature to fund improvements in commercial areas of municipalities and metropolitan areas. While LOCAL GOVERNMENT CODE CHAPTER 375 governs MMDs created by petition to the Texas Commission on Environmental Quality, MMDs created by a Special Act of Texas Legislature can (and do) override any or all provisions in LOCAL GOVERNMENT CODE CHAPTER 375.

Powers of Municipal Management Districts

Summary: MMDs are an additional layer of government with power to tax residents of the district and issue bonds.

MMDs have the power to levy an ad valorem property tax for funding water, wastewater, drainage, road, or mass transit improvements and to levy impact fees pursuant to the procedures provided by Chapter 395 (Financing Capital Improvements Required by New Development in Municipalities, Counties, and Certain Other Local Governments), Local Government Code. Under certain circumstances, an MMD may levy assessments against benefited property within the district similar to PIDs. ... An MMD may sue and be sued, incur liabilities, borrow money and issue notes, purchase and sell real and personal property, and enter into agreements. [Source: Invisible Government: Special Purpose Districts in Texas (PDF) - senate.state.tx.us]

MMDs Easy to create, hard to dissolve

Summary: While a MMD can be created by the actions of very few individuals, a MMD can only be dissolved by a petition/vote of 75% of property owners. A MMD cannot be dissolved as long as there are any outstanding bonds and the street project is going to require a 20 year bond.

Ellen Witt, former deputy attorney general for legal counsel in the Office of the Attorney General of Texas, feels people aren’t aware of the power of special districts. The districts often do a poor job of posting their public meetings, she said, and usually use a .com URL rather than the .gov that is used with other taxpayer-funded operations. For example, for a district outside Denton, public meeting notices are posted to a fence post. “People don’t understand that these are government entities,” Witt said. “For people to hold government accountable, they need to know that a group is a government entity to begin with. Many of these are operating under the radar. And they don’t seem to want the public to know they exist.” Indeed, even though taxpayers in a municipal utility district in North Texas had paid off the district’s debt in 2010, the board continued to meet and tax residents. It took a court order and an election to undo the district, which, as far as some residents were concerned, had done nothing to let the public know of its existence. “We had no idea there was a board that met every month,” said Mary Arceneaux, a resident of the district in Corinth, near Denton. “They had meetings, they were spending our money, they had elections, and we never did find out. That’s how they kept the same people in there on the board for 15 to 20 years.” Most legislation creating districts names the initial board members. Those members sometimes remain in place for years due to a power structure that can leave little room for new voices. In the Montrose Management District, two-thirds of the board members are donors or supporters of Mayor Annise Parker, who presides over the City Council, which in turn approves board members. Once the districts are created, they’re hard to rein in.[Source: texaswatchdog.org]

Emboldened by the secession success of some business owners in one Houston improvement district, another group of small business operators has filed a suit against the Montrose Management District, seeking to dissolve the district. The district levies a tax of 12.5 cents per $100 valuation on business owners and is created legislatively rather than via vote. It’s an increasingly used practice that in recent years has raised the ire of many of those taxed. [Source: texaswatchdog.org]

And despite his vocation, Hawes also questioned the law that creates these districts. For Five Corners, 25 of the more than 1,400 business property owners had to agree to the district and its tax. But for the district to be dissolved, the agreement of those holding 75 percent of the acreage in the district or 75 percent of the overall property valuation is required. “That’s a pretty high threshold,” Hawes said. [Source: texaswatchdog.org]

Business owners have petitioned to dissolve the Montrose Management District, which was set up, they say, without their knowledge or input. The district levies a tax of 12.5 cents per $100 of value on commercial properties, a bill of about $420 for the $336,000 property on Montrose Boulevard owned by Mayor Annise Parker and her partner Kathy Hubbard, listed as treasurer of the management district’s board. The tax would be in addition to the $8,475 they pay to the Houston schools, the city, county and other governments. [Source: texaswatchdog.org]

From the outset, a group of small business owners have opposed the district, appearing at board meetings to voice their objections. Many claim that they were unaware of the district’s formation until last fall, when they received mailed notices of a meeting to set the property assessment. [Source: bloghouston.net]

A year ago, angry property owners got their Montrose Improvement District tax notices. Forty some owners spoke against this new district having uncontrolled taxation powers. No one spoke in support. Guess what? The Board of Directors of the West Montrose Improvement District didn’t listen to any of them. When property owners began a petition drive to dissolve the new taxing district, they were told that they didn’t need 25 or 50 property owners or even 51% of the affected property owners to dissolve this new taxing authority. No, Ellen is a great bill writer. To dissolve her district created by 25 people, we had to have 75% of the assessed property owners sign the petition to dissolve. That represented many hundreds of property owners. The work began and hundreds of property owners signed the petition to dissolve the Ellen Cohen property tax piggy bank . Hundreds signed. Virtually no one supported this tax grab. But when petitions reached 62% of the people involved signing on to dissolve Cohen’s new money-maker we learned that these special districts don’t die easily. The “groups” running the East and West Montrose Improvement Districts merged. Now the petition drive had to get 75% from BOTH districts! You have to appreciate Ellen Cohen’s sense of democracy. And do you want to know the wonderful thing about this? The petition drive continued until it reached nearly 80% of the affected property owners IN BOTH IMPROVEMENT DISTRICTS -Petitions to dissolve and break up Ellen’s tax grab game. [Source: Comment by David Johnson - texaswatchdog.org]

"They wanted to me introduce legislation for their management district, but I found out there was a big resistance to it," [State Representative Martha] Wong said. "My goal was to have 75 percent of the landowners approve it and to make sure every land owner in that area was notified." Wong refused to carry the bill because of the overwhelming opposition. "When you work it out and the neighborhood agrees, I’ll carry it," Wong recalled telling the district organizers. The organizers got a more sympathetic hearing from Ellen Cohen, Wong's successor in the House, who sponsored the bill creating the Montrose Management District in 2009. Today, that district is being sued by landowners who claim they submitted a lawful petition to dissolve the district's mayor-approved board, but the board denied the petition’s validity. [Source: texaswatchdog.org]

How MMDs are created

Summary: Creation of MMD by "special local bill" in the State Legislature does NOT require any vote by the residents of the proposed district. A MMD can be set up by a very few individuals without the residents' knowledge or consent! See numerous examples cited in sections below.

Through formal application to Texas Commission on Environmental Quality (TCEQ) in accordance with the provisions of Chapter 375, Local Government Code

How is a district created? The most common method is by special law. Concerned property owners ask their state representative or state senator to sponsor a bill in the legislature for its creation. Less frequently used is the general law method provided in Chapter 375 of the Texas Local Government Code which empowers property owners to petition the Texas Commission on Environmental Quality for creation of the district. [Source: braysoaksmd.org]

By Petition to Texas Commission on Environmental Quality

The Texas Commission on Environmental Quality (the "TCEQ") may create a municipal management district (a "district") only: (1) in an area devoted primarily to commercial development and business activity inside the boundaries of a municipality with a population of at least 25,000; or (2) in an area devoted primarily to commercial development or business activity. [Source: Greg Abbott Attorney General of Texas - Opinion No. GA-0268]

By Special Act of Texas Legislature

Mr. Martinez stated that the next steps would be to develop a business plan and project development agreement between the district residents and the city; creation of a financial pro forma, modeling of cost to home owners, draft legislation and consideration of approval of supporting Resolution by the city council. [Source: CC City Council Meeting Minutes December 18, 2012 (PDF)]

[a Municipal Management District] is created legislatively rather than via vote. It’s an increasingly used practice that in recent years has raised the ire of many of those taxed. [Source: texaswatchdog.org]

A Municipal Management District (MMD) is an economic development tool that allows property owners to enhance a defined area. A MMD is created by an act of the Texas Legislature and derives its rights and powers through “enabling legislation.” [Source: downtowndistrict.org]

There will be a bill introduced in the next Texas legislative session (that begins in January 2013) to form a MMD to be called Stadium Park Management District. This is what is referred to as a “local bill” and must be sponsored by the state representative or state senator for that local area. [Source: knollwoodvillagecc.org]

Dissolution of MMD

Summary: While a MMD can be created by the actions of very few individuals, a MMD can only be dissolved by a petition of 75% of property owners. A MMD cannot be dissolved as long as there are any outstanding bonds and the street project is going to require a 20 year bond.

Sec. 375.262. DISSOLUTION BY PETITION BY OWNERS. Except as limited by Section 375.264, the board shall dissolve the district on written petition filed with the board by the owners of: (1) 75 percent or more of the assessed value of the property in the district based on the most recent certified county property tax rolls; or (2) 75 percent or more of the surface area of the district, excluding roads, streets, highways, utility rights-of-way, other public areas, and other property exempt from assessment under Sections 375.161, 375.163, and 375.164, according to the most recent certified county property tax rolls. [Source: LOCAL GOVERNMENT CODE CHAPTER 375. MUNICIPAL MANAGEMENT DISTRICTS IN GENERAL]

Today, that district [Montrose MMD] is being sued by landowners who claim they submitted a lawful petition to dissolve the district's mayor-approved board, but the board denied the petition’s validity. [Source: texaswatchdog.org]

The suit is filled with sensational terms – check “course of collusive and illegal actions,” “sham investigation” and “unlawful and illegitimate attempt to avoid dissolution” – and alleges that the petition for dissolution in September was legal and sufficient. The suit also alleges that the board charged with judging the legal merits of the petition is the board of the district itself, a self-interest that precludes the impartial decision required. The district has hired the law firm Blank Rome to defend the case. Business owners in the Five Corners Management District sued that district last year, which resulted in the exclusion of several plaintiff properties. Blank Rome also handled that case for the district. [Source: texaswatchdog.org]

Intended Purpose of MMDs is commercial. Evidenced by the fact that residential properties are exempt.

Summary: MMD are being used for purposes other than the commercial purposes for which they were designed. Note that previous "special local bills" in the Texas Legislature creating Corpus Christi MMDs specifically nullify the residential property exemptions required in Chapter 375 Sec. 375.161, Local Government Code. See documentation in the "Corpus Christi MMDs" section below.

LOCAL GOVERNMENT CODE - CHAPTER 375. MUNICIPAL MANAGEMENT DISTRICTS IN GENERAL

Sec. 375.001. LEGISLATIVE FINDINGS; PURPOSES.

(b) The creation of each district is necessary to promote, develop, encourage, and maintain employment, commerce, economic development, and the public welfare in the commercial areas of municipalities and metropolitan areas of this state.

(l) The purpose of this chapter is to promote and benefit commercial development and commercial areas throughout the state. Each improvement project or service authorized by this chapter is found and declared to carry out a public purpose.(emphasis added) [Source: LOCAL GOVERNMENT CODE CHAPTER 375. MUNICIPAL MANAGEMENT DISTRICTS IN GENERAL]

Sec. 375.161. CERTAIN RESIDENTIAL PROPERTY EXEMPT.

"Municipal Management Districts (MMD) are districts necessary to promote, develop, encourage, and maintain employment, commerce, economic development, and the public welfare in the commercial areas of municipalities and metropolitan areas of the state. This is an economic tool that allows commercial property owners to enhance a defined business area. A district, such as the Downtown Management District (DMD), is normally created within an existing commercial area to finance facilities, infrastructure, and services beyond those already provided by individual property owners or by the City." (emphasis added) [Source: - Municipal Management Districts - [Source: Municipal Management Districts - Corpus Christi Regional Economic Development Corporation (PDF)]

MMDs are created in areas devoted primarily to commercial development or business activity to expand and improve transportation and pedestrian facilities and systems and to landscape and develop certain areas that are necessary for the restoration, preservation, and enhancement of scenic and aesthetic beauty. The statute requires an MMD to attempt to stimulate the growth of disadvantaged businesses, which are businesses owned by persons who have suffered the effects of discriminatory practices, by encouraging such businesses to participate in all aspects of the MMD. [Source: Invisible Government: Special Purpose Districts in Texas (PDF) - senate.state.tx.us]

A number of residents have expressed concern about the proposed Stadium Park Management District. Please note that, by state law, single-family residences are EXEMPT from inclusion in a managment district and from the assessment of taxes or fees related to such a district. The KVCC Board has been working on getting additional information regarding the letter that was received by most people in the neighborhood last week regarding a bill that will be introduce in the next Texas legislative session to form a municipal management district (MMD) in our area, also known as Stadium District. [Source: knollwoodvillagecc.org]

MMDs are not representative - Taxation without representation

Summary: MMD are governed by a non-elected Board of Directors nominated by the individuals writing the initial petition and appointed by the Texas Legislature. Subsequent Board Members are nominated by the MMD Board of Directors and appointed by the Corpus Christi City Council. The residents of the MMD do NOT vote on Board Members at any stage of the process.

Today, the Houston City Council is scheduled to vote on a slate of board appointments rubber stamped by Mayor Annise Parker. Six of the nine positions are reappointments, and four of those six have been on the board since its creation in 2009. Not on the list are three applicants who say they were never contacted by the district because they were not touting its party line: They had in the past publicly renounced the district, which taxes business owners in exchange for services such as extra policing and graffiti abatement, and hoped it would never be created. In fact, they said the resistance to their views was so great that the board left some positions vacant for a year rather than accept a board member with differing views. At various times in the past three years, up to five board spots have been vacant. "They didn’t want people on the board that might want to abolish the district," said Wayne Earl Derrick, who submitted his application in April. "They thought I'd take an adversarial position on the board, and if they get too many of that kind of opinion, they are afraid of dissolution," added Frank Sturman, also an April applicant. ...Those positions have remained unfilled until now, leading Sturman, Derrick and a number of others who are being taxed for the property they own in the district to believe the process is operated by a chosen few and blessed by city hall. [Source: texaswatchdog.org]

It is worth noting the role that liberal Democrat Ellen Cohen, then state representative and now City Council candidate, played in creating this new, largely unaccountable taxing entity that apparently only government elites (and connected cronies) wanted and that is opposed by an overwhelming majority of those being taxed (so much for the principle of no taxation without representation, hmm). [Source: bloghouston.net]

Who runs the district? Management districts are administered by a board of directors consisting of area commercial property owners or their appointed agents appointed initially by the Legislature. Depending on the district’s enabling legislation, the district board may also include residential property owners. Directors serve four-year staggered terms. As the terms of the initial board members expire, subsequent board members are appointed by the municipality or county governing body based on recommendations from the remaining board. [Source: braysoaksmd.org]

MMDs are not accountable, not transparent

Summary: MMDs are not elected governments and are not accountable to the residents of their district. We do not vote to create a MMD. MMDs are administered by a non-elected Board of Directors which is initially appointed by a special act of the Texas State Legislature and subsequent Board members are appointed by a vote of the Corpus Christi City Council.

"Sometimes the Legislature creates a way of doing things," she said. "They consider [it] done and don't monitor carefully enough, the permission they have given. Then you have to wait until it runs amok and go back and re-examine the methods for doing it, and I think that's where we are." - Denton County Commissioner Hugh Coleman [Source: dallasnews.com]

But they’re so easy to create, and there are now so darn many of them -- many of them small -- that some of them operate almost totally off the radar screen of the general public. But unlike the county commissioner, whose name and phone number might be readily available to most county residents, people in that area may have little idea about the existence of the special district, much less know the identities of the people who oversee it or make its decisions. And the members of that governing board may be appointed instead of elected, meaning their names aren’t regularly put forth on a ballot to get a thumbs-up or thumbs-down from the people they govern. The lack of accountability has led multiple sources, including the Handbook of Texas Online, to refer to the special districts as the state's 'invisible governments.' The small districts 'are subject to little or no supervision by the state, leading to administrative, personnel, and financial practices that are inefficient and sometimes ethically and morally questionable,' the LBJ School group's paper continued. Special districts, it said, are 'neither responsive nor accountable because public knowledge of these local governments is essentially nonexistent. These small districts are in fact shielded from public scrutiny because many of their functions are narrow, technical, and not readily publicized to those taxed by the districts.'" [Source: texaswatchdog.org]

[State Comptroller Susan ] Combs considered in March lobbying for a moratorium on the creation of special districts. [Source: texaswatchdog.org]

“Legislators need to do a better job of letting people know that these are government entities,” added Ellen Witt, the former AG’s office lawyer. “I don’t know why more people haven’t raised this issue with their representatives. “ [Source: texaswatchdog.org]

The suit also alleges that the board charged with judging the legal merits of the [dissolution] petition is the board of the district itself, a self-interest that precludes the impartial decision required. [Source: texaswatchdog.org]

But Hecht found out that for all the arguments, petitions and efforts to join the board rather than beat it, the lawsuit accomplished the most satisfying end result. The district came to the plaintiffs, he said, and said they were no longer subject to the district assessment. “They said if we dropped the suit, we would not be taxed by the district,” said Hecht, who is an officer with the Spectrum Management District, a 1,000-acre taxing authority in Pearland. “They came to our lawyer and said, ‘We’ll let you out of the district if you drop the lawsuit.’ I think the districts have a lot of authority, and if they want exclude properties, they can.” [Source: texaswatchdog.org]

Business owners have petitioned to dissolve the Montrose Management District, which was set up, they say, without their knowledge or input. [Source: texaswatchdog.org]

Kudos to the business owners who are determined to abolish this unaccountable, secretive taxing entity that serves no useful purpose for the general public and was created virtually under cover of darkness by elites to benefit elites. On that last -- It is worth noting the role that liberal Democrat Ellen Cohen, then state representative and now City Council candidate, played in creating this new, largely unaccountable taxing entity that apparently only government elites (and connected cronies) wanted and that is opposed by an overwhelming majority of those being taxed (so much for the principle of no taxation without representation, hmm). Oh, and guess who is on the management district's Board? Mayor Annise Parker's "life partner" Kathy Hubbard! Neat, huh? And as Ken Fountain reports, the firm of David Hawes "manages" many more of these unaccountable entities (some 20 or so, word has it) that tax Houston businesses -- talk about local government of, by, and for elites! Given all the hyperventilating we've seen from local Dem partybloggers and the Chron editorial board (wait, is there a distinction?) about Gov. Perry and "crony capitalism," I'm sure we'll shortly see a flurry of opinion pieces in support of Montrose business owners' efforts to stand up to local political elites and connected Houston Way cronies/leeches. Right? There's more information on this important fight at StopDistrict11.org. We wish them good luck in their efforts to shut down this entity, and think it's well past time to start reining in so many of these unaccountable/undemocratic taxing entities. It would also be helpful to remember enablers like liberal Democrat Ellen Cohen when one is voting. [Source: bloghouston.net]

Texas is often called a low-tax state, but critics say such taxing districts don't make it feel that way. While the majority of the districts in Tarrant County levy a half-cent sales tax, and most others a quarter-cent, taxpayers are being nickeled and dimed to the tune of $64.3 million so far this year, according to state figures. [Source: Special taxing districts cost Texans millions a year - star-telegram.com]

[Texas Comptroller Susan] Combs has long been concerned about the districts. In a Star-Telegram interview in March she complained that it was hard just finding out the number of taxing districts. "We've been struggling to find this stuff out," she said in an interview Wednesday. "If we can't find stuff out, its pretty doggone hard." ... "I want people to be engaged in what is their business," Combs said. "John Q. Public is being taxed. Now we're giving [the public] the tools to find out." Combs has shifted since March from considering a moratorium on the districts to suggesting legislators look at whether Texas really needs them. Critics argue that cities could simply increase taxes to, for example, fight crime, instead of creating a special district to raise taxes for that purpose.[Source: Special taxing districts cost Texans millions a year - star-telegram.com]

The way some Texas politicians talk, you might think Texans don’t like government and don’t like taxes. But Texans and Texas public officials keep creating more and more governments themselves, data show -- governments that keep piling on taxes. And as these small local government districts sprout up across the state, they have one thing in common: They are inconsistent at best in both their transparency and their accountability to their constituents. [Source: Growing governments: How 'special districts' spread across Texas with limited oversight and accountability -- but with plenty of power to tax - texaswatchdog.org]

The Downtown District is a unit of government for purposes of http://www.statutes.legis.state.tx.us/Docs/CP/htm/CP.101.htm Chapter 101, Civil Practice and Remedies Code and is immune from torts claims. [Source: downtowndistrict.org]

Although Texas has no state property tax, the Texas Tax Code authorizes local governments to assess and collect property tax. The local property tax is the largest single funding source for community services. Local taxing entities may impose sales and use tax up to 2 percent. The state sales and use tax rate is 6.25 percent, for a total maximum combined rate of 8.25 percent. Sales and use tax, commonly referred to as sales tax, is collected primarily by businesses and remitted to the Comptroller’s office, and the local portion is then distributed to local governments. Local entities that may levy property and sales taxes include cities, counties and special purpose districts. School districts may levy property tax, and transit authorities may levy sales tax. The number of special purpose districts is growing. In addition to those districts that collect property tax or sales tax, there are other special purpose districts that collect user fees. Special purpose districts include but are not limited to crime control, emergency service, hospital, library and utility districts. There are more than 40 different types of special purpose districts in Texas. ... Many local governments collect both property tax and sales tax, while others levy one or the other. With so many entities layered upon each other, usually with overlapping boundaries, it can be difficult to identify all of the entities collecting local taxes in any given location. Local taxing entities assess and collect property tax based on rates and property values that change each calendar year. [Source: texastransparency.org]

MMDs are a symptom of disfunctional local government

Summary: Street repair, maintenance, and reconstruction is a responsibility of the City of Corpus Christi for which we pay property taxes, sales taxes, and various utility taxes and fees, and soon we will be paying a $7.00 a month street maintenance fee on our utility bill. MMDs are a way for governments to increase taxes without the accountability of normal methods.

"The rapid spread of special districts in Texas can be traced to several factors, most notably the inability or unwillingness of counties and cities to deal with various regional problems. Special districts provide a way that the fragmented power which characterizes local government in Texas can be overcome in order to solve area-wide and cross-jurisdictional problems. Since Texas political culture has tended to call for minimal government and the lowest possible taxes, special districts provide a mechanism whereby government services can be delivered without existing government assuming responsibility for them. This therefore preserves the myth of limited government while insulating local public officials from citizen complaints about inadequate service performance or mandatory taxes." [Source: Fiscal Capacity of Texas Cities]

Talmadge Heflin, director of the Texas Public Policy Foundation's Center for Fiscal Policy in Austin and a former chair of the Texas House Appropriations Committee, said the state needs to think more frugally and weigh whether the benefits of special districts outweigh the costs. "At a time when we're trying to control our spending and trying to control our taxes and fees, we see this other layer of taxation just put on top of people who are already in many cases overtaxed, even though they say we're a low tax state," he said. "People paying taxes don't see it that way." [Source: Special taxing districts cost Texans millions a year - star-telegram.com]

While arguments can be made for the taxing power of cities, counties, school districts and water and utility districts, most special purpose districts are duplicative of the mission of cities and counties and constitute nothing more than another layer of government and another revenue stream. ... Fundamentally, many of these kinds of special purpose districts are created purely to funnel more revenue into the coffers of local government. Instead of adding to the ever-growing list of taxing entities and imposing an inexorably-rising tax burden on their citizens, municipal and county governments should prioritize their spending so that essential expenditures such as law enforcement and transportation infrastructure are fully funded from their existing tax base and budget. At the state level, legislators should enact a moratorium on the creation of any new special districts that duplicate the core functions of existing taxing entities. This moratorium should be instigated with a view to permanently repealing the authority to create certain types of special taxing entities, and creating new mechanisms to make it more difficult to create such districts and to facilitate their dissolution. The comptroller's revealing report confirms what many taxpayers already perceive: that there is a growing burden of sales and property taxation in Texas. Protecting taxpayers from the unnecessary and unsustainable impact of multiple layers of taxation is an imperative for the Texas Legislature. [Source: Special purpose districts are weaving a tangled tax web - chron.com]

MMDs make buying in neighborhood less attractive

Summary: The additional property tax burden of MMDs make neighborhood properties less marketable than properties in neighborhoods outside the MMD.

Mitchell, speaking to the City Council on Tuesday, also noted the risk of building homes on which residents would pay extra taxes:“We’re sort of putting our entire investment on the line, saying we hope people will buy with that additional tax there.” [Source: statesman.com]

Corpus Christi MMDs

Summary: There are 3 existing MMDs in Corpus Christi. One is commercial and the two others provide services that are outside of the responsibilities of the City of Corpus Christi. The failed King's Crossing MMD was also intended to provide services outside City responsibility.

The proposed Lindale MMD would be the first MMD in Corpus Christi to fund services for which residents already pay taxes; services within the scope of City responsibilities. The City has already considered a "city-wide" MMD as a solution to street funding problems so it is not unreasonable to question whether the Lindale neighborhood is only the first in a city-wide series of MMDs being promoted by the City of Corpus Christi as a source of additional funding for streets.

1) Corpus Christi Downtown Management District.

This commercial district is an appropriate application of Chapter 375, Local Government Code consistent with the original intention of the law.

"The term of the district automatically sunsets every three years unless representatives of more than half of the district's property value or square footage signs the petition." [Source: caller.com]

"A downtown arena, renovation of the seawall and expansion of the convention center are some of the projects that will affect the taxing district that includes the downtown area below the bluff, City Manager David Garcia said." [Source: caller.com]

"The renewal petition calls for continuing the district and its taxes for another five years with the same tax rate of 30 cents per $100 of land value and 7 cents per $100 of improvement value, such as buildings. Owners representing at least 50 percent of the property area or 50 percent of the appraised value must approve the petition before taxes can be assessed or collected. This calculation gives more weight to property owners of large or expensive properties" [Source: caller.com]

2) PADRE ISLAND GATEWAY MUNICIPAL MANAGEMENT DISTRICT

Created by single landowner/developer only on his land. By statute it cannot expand. In addition, future property owners in this district will know about the existence of the district and its additional tax burden before they buy their properties. Note: NOT a city responsibility.

SPECIAL DISTRICT LOCAL LAWS CODE CHAPTER 3869. PADRE ISLAND GATEWAY MUNICIPAL MANAGEMENT DISTRICT - Sec. 3869.154. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT. Section 375.161, Local Government Code, does not apply to the district. [Source]

"For Golden's property, the district would include only the land currently owned by his company, Golden Pointe, LLC. If Golden broke up the land and sold parcels to other developers, the tax would reimburse him for improvements he made to the undeveloped land." (emphasis added) [Source: caller.com]

3) PADRE ISLES MUNICIPAL MANAGEMENT DISTRICT

Created to assist with rebuilding of canal bulkheads that may be damaged by storm or disaster. Note: NOT a city responsibility.

Resolution of support and consent to create municipal management district to assist with rebuilding of canal bulkheads that may be damaged by storm or disaster Resolution declaring the City's support of and consent to the creation of the Padre Isles Municipal Management District. [Source]

4) [Proposed & Failed: King's Crossing MMD]

Proposed to re-open private golf course and clubhouse. Note: NOT a city responsibility.

Apparently this proposed MMD has failed. If you have information about the King's Crossing Municipal Management District and how and why it failed we would appreciate it of you would .

"They're considering the possibility of setting up a public improvement or a municipal management district. It would allow King's Crossing residents to pay an extra tax to help fund the golf course operation and get it back in shape. Most of those who have expressed an interest in doing that live along the golf course. "If the golf course was re-constructed it would be functioning as a public golf course, not a private golf course so there would be some public benefit and use," says Assistant City Manager, Oscar Martinez. (emphasis added) [Source]

5) [Proposed: "Citywide" MMD]

6) [Proposed: Lindale MMD]

Proposed to rebuild streets, curbs, and storm drains Note: This IS city responsibility.

Lindale Municipal Management District Presentation (Original MS PowerPoint version) This is the original PowerPoint presentation given by Corpus Christi Assistant City Manager Oscar Martinez at the May 1, 2013 meeting of the Lindale Neighborhood Association. This presentation details cost estimates for full and partial street reconstruction in Lindale 1 and 2. It gives some general information about Municipal Management Districts and includes some particulars about required tax rate increases in order to complete the reconstruction project. The presentation also touches on Tax Increment Financing zones.

STOP the Lindale Municipal Management District