Fact: Creating new value is the only way to get tax rates to fall.  From 1997 to 2007 the city’s tax rate went up steadily from $0.59627/$100 to $0.63212/$100.  At the same time, the values in the commercial area steadily declined, which had the effect of placing more of the tax burden on residents.

One of the goals of the TIRZ is to create a more diverse and more stable tax base to relieve the burden on our residents. Our commercial area is filled with functionally and environmentally obsolete buildings which have and will continue to decline in value if left in their current condition.  These buildings are no longer economically viable.

The creation of the TIRZ will allow the City to influence the nature, character and quality of the area’s redevelopment.  The public private partnership will allow the City to better safeguard its goal of stabilizing and diversifying the City’s tax base.  The City additionally has the ability to take money out of the TIRZ to pay for its cost of service within the TIRZ.

Fact: Griffin Partners will only be reimbursed for public improvements that are allowable under Chapter 311 of the Tax Code.  Griffin is pre-funding these public improvements along with all of the costs related to the private parts of the project.  Public improvements are expected to total roughly $8 million, and private investment within the project is expected to total roughly $150 million. 

The City has agreed to use a portion (90%) of the tax revenue generated from new Griffin development to reimburse the developer for the public improvements designed, and constructed on the City’s behalf. It should be noted that the revitalization effort is not limited to Griffin, and that other private improvements are planned within the TIRZ. The tax revenue from those projects has not been pledged to Griffin. The City, at its sole discretion, may choose to use some portion of that revenue to reimburse Griffin, but is under no obligation to do so.

We share the developer’s hope for a successful project, because with that success will come a more diverse and stable tax base for Nassau Bay.  This is an enormous benefit to the citizens of Nassau Bay.

Fact: The City in its planning efforts considered ways to improve its entire commercial area, not just part, and through the passage of Senate Bill 1999 in the 80th Regular Session of the Texas Legislature in 2007 secured the right to create the TIRZ over the boundaries of the entire commercial area.

Fact: Both the City’s water and wastewater systems have existing capacity to accommodate the Griffin PUD.  The City’s own engineering consultants have certified the capacity of both systems.  No upgrades to these systems are needed.  There is a small amount of TIRZ funding dedicated to the relocation of public utilities in the PUD area. 

A key point to remember about the Tax Increment Reinvestment Zone (TIRZ):  There are no single family homes, town homes, or condos in the zone.  The tax increment only includes tax collections in the zone; therefore, there are no residents in Nassau Bay who pay these taxes.

Rumor:  Nassau Bay doesn’t need new development.

Fact:  The declining commercial value in Nassau Bay is the primary reason for redevelopment. Increasing Nassau Bay’s sales tax revenue through increased retail operations is also a motivation for the redevelopment program. The proposed development will benefit the city and our residents.  New development will help reduce the tax burden currently carried by Nassau Bay homeowners, and the increased tax base will provide additional funding for needed capital improvements to city infrastructure and parks.

Rumor:  Nassau Bay homeowners will have to cover the redevelopment costs through their property taxes.

Fact:  Homeowners’ property taxes will not be used for redevelopment efforts.  The city formed a Tax Increment Reinvestment Zone (TIRZ) over the commercial areas of Nassau Bay to cover public improvement costs.  Funding for the development’s public facilities and infrastructure will come from the TIRZ and does not involve homeowners’ property tax dollars.

Rumor:  The developer doesn’t know anything about what Nassau Bay needs.

Fact:  Griffin Partners, Inc. (Griffin) is a Houston-based company owned by local businessman Fred Griffin, who is extremely involved in the Bay Area Houston region.  Mr. Griffin is a founder of, and currently serves on, the Bay Area Houston Economic Partnership (BAHEP) Board of Directors and Executive Committee and is a past Chairman of the Board.  He has been developing properties in the region for more than 20 years.

Rumor:  The new development will create increased traffic in the city.

Fact:  As part of the new development Saturn Lane will be extended to Space Park Drive, adding an additional point of entrance and egress to the city. The extended street also will create a dynamic promenade entrance to Nassau Bay featuring retail and restaurant offerings.  A professional traffic analysis has been completed for the development and is being considered by the Planning Commission and City Council.

Rumor:  The development will include another apartment complex, which is the last thing our city needs.

Fact:  A four-story, 313-unit multi-family complex is part of the proposed development, and with good reason.  Retail developers factor in household numbers when selecting sites, and Nassau Bay’s current population is too small to support new retail and grocery stores.  With significant portions of land surrounding the city consisting of nonresidential land mass, including NASA Johnson Space Center and Clear Lake, Nassau Bay needs higher-density housing to attract quality retailers.

Rumor:  This apartment complex will be no different than any of the others, and it will eventually fall into disrepair.

Fact:  As proposed, these units are considered luxury, Class A dwellings, with numerous amenities like 10-foot ceilings, granite countertops and high-speed internet and cable connections.  The complex will be built to condominium standards to facilitate possible future conversion to condominiums for individual ownership.  In addition, the developer and the city will establish criteria similar to a homeowners’ association with which to hold the owners to a high standard of maintenance. 

Rumor:  The city can’t handle this much development.

Fact:  Nassau Bay’s infrastructure, including water, wastewater, drainage and emergency services, is prepared to handle the new development.  In addition, the developer will be making improvements to the area’s utility infrastructure as part of the project.

Rumor:  The all the trees at the corner of Space Park and Point Lookout Drives will be cut down.

Fact:  The future of these trees is not in the hands of the city.  While it is necessary for many of these trees to be removed in order for the developer to create useable space, Griffin is including beautiful landscaping in their design for the property. In addition, Griffin plans to save as many mature trees as possible.  Trees in the right-of-way will be relocated within the city.   

Rumor:  City officials don’t care what I think about the new development.

Fact:  Citizen input is highly desired. The city has sought and allowed citizen input at all regular Planning Commission and City Council meetings, far beyond what is required by law.  Once the city receives the final Planned Unit Development (PUD) application, it will be treated with exacting standards of public disclosure.  It will be shared with our citizens and public hearings will be held. 

Fact: The City has no intention of buying up residential property for new development. There has not been any meeting where this possibility has been discussed. The City’s interest is in redevelopment of the aging and obsolete commercial areas where values of the property have been declining for years, negatively affecting the City’s revenue sources and negatively impacting the property tax rate of our citizens. Further, it is against state law to take residential property for redevelopment purposes.

Fact: Nassau Bay is in excellent financial condition with very low and very short-term debt. When the COs were issued, the City received a wonderfully low 3.15% interest rate on this debt. Why? The City finished fiscal year 2007 in a strong position with a debt balance of only $2.96 million that does not extend beyond 10 years. In comparison, most cities target the ratio of net debt to total assessed valuation to not exceed 4%, and ratios from 1% to 4% are typical. Many cities are encumbered with long-term debt out to 30 years. As of the end of the last fiscal year, Nassau Bay’s ratio of total debt to assessed valuation was a very healthy 0.75%, thus the favorable financial condition and the very favorable interest rate for the new debt. City Council and Staff are very conservative with debt issues in order to remain in a strong financial position. For the past 9 years the City has used COs for short-term capital needs, rather than large bond issues that require an election.

Fact: Ward Park will remain unchanged from the current uses. The City’s Comprehensive Master Plan (see www. nassaubay.com/city_master_plan.htm) describes uses for Ward Park and makes park recommendations for the future. This park was included in the Tax Increment Reinvestment Zone (TIRZ) so that financial resources from the TIRZ (the commercial area) could be used in this park for future improvements and maintenance. Per state law, City parkland, including Ward Park and the peninsula, cannot be diverted to other uses without an election.

Fact: The last grocery store operation left Nassau Bay in 1995 due to declining business precipitated by population decline. Arlan’s Market ceased operations shortly after Balboa Apartments’ C building burned, displacing over 100 families. The City has approached numerous grocery operations over the years seeking a new store. The story has been the same from every operator: “Not enough rooftops” in Nassau Bay, meaning there is not enough population to support a grocery operation. That is one of the reasons that our redevelopment plans include additional residential properties. Unless we have more families, the City will never attract a quality grocery operation.

Rumor: The Governor vetoed the Management District during the 79th Legislative Session because the legislation allowed the district to tax the citizens of Nassau Bay.

Fact: The Governor did veto the legislation during the 79th Legislative Session because his staff mistakenly believed the district would be taxing residents. He vetoed it based on bad advice from his staff. During the most recent legislative session, the City brought the issue up again. To correct the misperception of the Governor’s Office, the City changed a portion of the language to explicitly prohibit the issue in question, and the legislation was signed into law. The NASA Area Management District is a reality today, and the district is planning for their role in bringing Nassau Bay’s commercial areas back to a position of prominence in the Bay Area for the benefit of our citizens and our region.

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Last updated 2/19/2008

2008 © City of Nassau Bay