Brownsville City Commission: Residents: Capital Recovery Fee ‘a barrier to homeownership’

During a public hearing last Tuesday, Brownsville residents expressed their concerns about the proposed Roadway Capital Recovery Fee.

The fee is a finance tool used to implement a mobility plan aimed to enhance road and intersection improvements, transportation and quality of life, consultant Edmund Haas said during the presentation.

“What we’re talking about is future growth coming to Brownsville, and the demand that’s associated with that and the road needs that are going to be a part of that,” said Haas, of the Freese and Nichols Inc. engineering, planning and consulting firm. “If implemented, this burden is on the city.”

Part of the capital improvements plan are 130 capacity projects that include 90 new roads and 40 widenings.

He said the city’s Capital Improvement Advisory Committee recommended residential collection rates be $806 to $2,000 per single family dwelling unit on one lot with a 5% annual increase until the first programmatic update in five years. Non-residential fees would be 25%.

During the public hearing, Nick Mitchell-Bennett, chief executive officer of come dream. come build., a nonprofit community housing development organization, said the fee “represents an obstacle to affordability.”

“Growth can’t pay fees. People pay fees,” Mitchell-Bennett said. “If the city wants to wield such a tool, it should be a careful and precise scalpel and not a hammer to do the heart of homeownership for the majority of the Brownsville residents.”

Renee Sanchez, an attorney from Brownsville, also opposed the proposed fee.

“This really is going to be a barrier to homeownership and future development in Brownsville,” Sanchez said. “This increment, although it’s small … it is going to be paid by the eventual buyer of the home. The idea that this isn’t going to affect people in Brownsville is wrong.”

In a letter recommending policy considerations regarding the fee, the advisory committee outlined exemptions for the fee, including residential development that is 80% complete, legacy businesses and development in Historic Downtown Brownsville. Mixed-use development with a portion dedicated for work-force housing would receive a 25% reduction in the fee.

Joel Garza Jr., director of Multimodal Transportation, said city staff recommended lowering the collection rates to $1,000 for residential and 10% for non-residential developments. They also recommended exemptions for affordable housing and independent school districts.

If adopted, the implementation of the fee will have a 12-month delayed start.

District 3 City Commissioner Roy de los Santos recommended making the information public so community feedback can be provided before the decision is made.

At-Large “B” City Commissioner Rose Gowen made a motion to extend the public hearing on the fee until March 5 and to create an affordable housing committee to review the issue. De los Santos seconded the motion.

Mayor John Cowen Jr. asked how the committee would be appointed.

City Attorney Will Treviño replied the commissioners could consider interested appointees at the next meeting or they could delegate the task to the city manager. The motion passed unanimously.

In other business, the commission approved a $2,210,500 funding request by the Brownsville Community Improvement Corp. for the City of Brownsville quality-of-life projects and a letter of commitment to allocate $750,000 for a Texas Parks and Wildlife grant.

The funding request will be used for five projects, which include a Downtown Master Plan and a Parks Master Plan. The Texas Parks and Wildlife grant will be used for the La Posada Park Redevelopment project.