From the cover
BY SHAWN ARRAJJ
Montrose Management District returns, vexing some business owners
A closer look
Two-minute impact
Businesses within the boundaries will be taxed according to the following plan:
Assessment rate: $0.09 per $100 in property value
The Montrose Management District first formed in 2011 when two existing improvement districts were merged. A management district is a gov- ernmental entity that can assess property taxes and fees on certain commercial property owners within its boundaries. The district cannot impose taxes or fees unless a petition is led to the district’s board requesting the services. The district then uses the funds it raises on initiatives according to a service plan approved by its board. Although the district will tax 996 properties, its reformation only required a petition from 25 property owners, a standard that was raised when the law was amended in 2019. The new standard only applies to districts that have formed since the law was amended. Duhon said they received a petition with signatures from 60 property owners, including Kimco—which owns The Driscoll at River Oaks apartment commu- nity—and La Colombe d’Or hotel.
District officials anticipate spending around $2.17 million on average each year for the 15 years of the service plan, which lays out district projects. District Executive Director Andrea Duhon said it will look to improve public safety by hiring a security company to have two patrol shifts as well as installing security cameras. Other initiatives would include graffiti and litter abatement. The district could also take on maintenance of projects completed by the Montrose Tax Increment Reinvestment Zone, which is prohibited by law from funding maintenance work. The city of Houston maintains some TIRZ infrastructure, but a management district could help with maintenance that goes above city standards, TIRZ Chair Joe Webb said. Webb said he is open to working with the district, but is watching from a distance as board member appointments play out.
Montrose Management District
A property valued at $1 million would pay roughly $900 in annual taxes to the district. Before it went inactive in 2018, the district charged $0.12 per $100 in property value.
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Applies to commercial properties , not residential properties, with several exceptions: Mid-rise and high-rise buildings pay assessments based on the value of only four levels of each structure. Multifamily residential complexes of 25 units or less are exempt. Mixed-use properties will pay assessments only if the business portion of the property is more than 40% of the total valuation.
SOURCE: MONTROSE MANAGEMENT DISTRICT/COMMUNITY IMPACT
Estimated FY 2024-25 budget
60% for public safety and security, or $1.3M annually 15% for project administration, or $325,000 annually 10% for maintenance and beautification, or $217,000 annually 10% for economic development, or $217,000 annually 5% placed in reserves, or roughly $108,000 annually
The other side
signatures to dissolve the district from what they said was 80% of assessed tax payers. Adams said she didn’t think it was right to launch a tax collect- ing district with 60 signatures when she said the majority of people she speaks with are against it. Opponents thought they were victorious in 2018 when the board voted to dissolve. However, the dissolution was contingent on a judge issuing an order to do so, and officials said that order was not issued.
Those opposed to the district express concerns about the number of signatures needed to bring it back and the lack of benefits when it last existed. Mariana Lemesoff, owner of Avant Garden on Westheimer Road, said the district did not provide her business any benefits when it last operated. John Foelber and Judy Adams, owners of Foelber Pottery on Richmond Avenue, were part of a six- year fight to get the district dissolved when it last operated. Opposition leaders at that time gathered
SOURCE: MONTROSE MANAGEMENT DISTRICT/COMMUNITY IMPACT
October 2011: Montrose Management District is formed when two existing improvement districts are merged April 2012: Property owner Bob Rose sues the new district, challenging the legitimacy of the petition that launched it March 2018: After a six-year legal battle, the district’s board votes to dissolve, contingent on a judge asking them to do so. However, officials said it never actually dissolved. December 2023: The district reforms with new service plan proposal, hosts first meeting February 2024: The new board votes on appointing six more board members Timeline
What’s next?
attended the meeting to speak about his dissatisfaction with the district when it last operated. When asked by current board members if he would like to join the board as a way to represent business owner needs, he agreed. “We’d rather have practical solutions to the problems we share,” Fergus said at the meeting. “It’s important to know what you are being asked to pay for.”
The district was also sued in 2012 and has a roughly $500,000 legal settlement to pay from a judgment that district officials said they planned to follow. At a Feb. 29 special meeting, the board’s three current members voted to appoint six new board members, which will later have to be approved by Houston Mayor John Whitmire. New members include Dan Fergus, who
SOURCES: MONTROSE MANAGEMENT DISTRICT, HOUSTON 14TH COURT OF APPEALS/COMMUNITY IMPACT
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HEIGHTS - RIVER OAKS - MONTROSE EDITION
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