" . . . after 3-5 years these projects need repairs, and the builders say they haven't the funds to make them"
Note: Projects of this size will necessarily require input and important questions from local citizens. Where, for instance, will the water come from to serve 244 apartments with potentially 600-plus new residents? A simple calculation of 200 gallons daily (on average) for each apartment equals about 50,000 gallons per day, nearly 1.5 million gallons per month, 17.5 million gallons a year. Does the city have the water budget to meet the need? Has the city or the DS Water Supply Corporation, or some other entity, made commitments to the project in the midst of what most everybody knows is a dwindling supply of water?
 |
| Ball is in Judge Cobb's court |
Send your questions and comments to roundup.editor@gmail.com, to the links to Judge Cobb and Mr. Ferguson above, to Jon Thompson at the City of DS at jthompson@cityofdrippingsprings.com or click on the "comments" at the bottom of the report
Report from the field
Bonner Carrington (BC) has various real estate interests, including Texas projects for families (called Cypress Creek Apartment Homes) or for adults 55 years of age and older (called Mariposa Apartments). According to its website, BC has apartment communities in Austin, San Marcos, Georgetown, Houston and Amarillo.
Many Dripping Springs residents are concerned about a 17-acre Cypress Creek project (Cypress Creek At Ledge Stone) planned by BC off Hwy 290, next to Trudy's Restaurant. There would be 11 buildings with a total of 244 apartments. The property is in Dripping Springs' ETJ and in DSISD.
The success of these projects (for the builder) depends on 1) support of the community and 2) qualification of the project for Federal and/or State tax credits. Support of the project is shown by having the city council of the city in question pass a resolution that they would welcome the project. With the resolution in hand, the builder applies for tax credits from Federal/State agencies. Those agencies pay for the construction of the project.
Here is a cautionary note: the builder always tries to persuade the city to give property tax abatements to him. San Marcos, Kyle, and League City have turned down some BC projects.
There is a very interesting comment by a Kyle resident, Brian Barker, a business and commercial banker for over 40 years, on this blog: www.dsourbackyardourfuture.blogspot.com. This is a blog of Dripping Springs citizens who are questioning the Cypress Creek At Ledge Stone project as it presently is configured. You will find his comment at the bottom of p.3.
Among other things, Mr. Barker says that after 3-5 years these projects need repairs, and the builders say they haven't the funds to make them. He says that projects with this type of financing have an 83% failure rate. He further states that these projects are limited partnerships which provide limited liability to the builder/owner, and "the city cannot look to any single source of responsibility to get things corrected."
46 comments:
Neither DSWSC or the city will supply water to the project. That is good, because DSWSC president (Ron, "law-dawg" Kelly) is apparently opposed to selling water to anyone not named Rasberry.
The PUA (formerly LCRA) supplies water in that area. As for taxes, the city doesn't collect taxes in the ETJ.
In regards to the recommendation:
" You may want to contact city administrator Don Ferguson to get the straight scoop..."
Don't expect straight scoop from Ferguson. As anyone attending HTGCD meetings for the last 5 months can tell you, Ferguson's version of facts is quite malleable. He'll deny his previous statements while simultaneously manufacturing a new version. Get it in writing.
The West Travis County Public Utility Agency (WTCPUA) will supply LCRA water from Lake Travis to Cypress Creek at Ledge Stone. If there is any.
DSISD will get property taxes from CCLS if the city fathers don't make a deal with the developers for tax abatements.
When CCLS or Stuart Shaw tells you he WILL be paying taxes, he's referring to taxes he's already obligated to pay for water to the MUD (which was originally developed for the Ledgestone development nearby. Not the Ledge Stone of Bonner Carrington). CCLS will get its water from that MUD, which in turn gets it from the WTCPUA pipeline from Lake Travis.
The City of Dripping Springs has not yet agreed to a resolution to welcome Bonner Carrington (BC) to build 11 multi-family buildings next to Trudy's. BC needs that resolution to show the Texas Dept. of Housing and Community Affairs (TDHCA) that DS wants the project.
TDCHA gets many more applications for the tax credits (=TDHCA pays for construction) than they can fund. Therefore they can be very choosy about whom they give money to for these housing projects. If the citizens of DS don't like something about the deal the City proposes to cut with TDHCA, they can be very vocal about it, and TDHCA, not wanting to be caught in the middle, will turn down BC's application. I really think DS is in the catbird's seat, because San Marcos, Kyle, and League City have already turned down BC projects, and Buda was approached for a BC project, but BC pulled out because the deal wasn't "economically feasible." Buda probably wouldn't cave on not giving tax abatements. Shaw is hoping DS will go for the deal other cities have spurned.
Be sure to attend the DS City Council meeting at which the resolution to welcome BC will be discussed. YOU decide whether BC multi-family housing, with its many children to be educated and all the water it will use, will be a plus for the community.
@ Pay Attention,
Your post was fine up until about the last two sentences where your phobias just couldn't help but ooze out.
No one is promoting poor construction and I wouldn't know Bonner Carrington from Adam. However, your true colors are that you have a problem with "renters" and "children of renters".
This nonsense about what the "community wants" is just that - nonsense. There is no such thing as a "community" apart from the individuals in it. The "community" changes daily with the population, exits, new arrivals, etc. The "us vs them" tribal mentality you are trying to foster is just stupid. When they live here they are just as much part of any "community" as you are.
Perhaps Bonner should consider the Wimberley area. They have lots of water and there are already lots of crappy buildings all over the place. Now that city council is going to use its own well at Blue Hole, there will be plenty of capacity available to serve BC from Wimberley Water Supply Company. Alternatively, BC could locate in AquaTex territory - or even start up its own water utility. BC won't need to worry about taxes since there aren't any in Wimberley. I hear there's plenty of property all around Wimberley, Woodcreek, and particularly around Jacobs Well and Blue Hole available for development. Even the county is planning to spend millions of taxpayer dollars for improvements in those areas.
How about for a well written story you include the website for the apartments? Let the people read both webpages and decide for themselves.
http://www.cypresscreekledgestone.com/#!
To Anon May 3, 7:19 PM:
Your reply to me was nothing more than a tirade against straw men. I said nothing about "poor construction" or "renters" in my post. You manufactured those issues.
My concerns are 1) that DSISD, with the highest school tax rate in the area (higher even than Austin's), cannot afford to build more schools and pay more teachers right now and 2) that water supply is already a worry without having to supply ever more subdivisions.
And, thank you very much, Bonner Carrington already IS considering Wimberley.
People might also like to read the blog concerning the Cypress Creek at Ledge Stone development:
www.dsourbackyardourfuture.blogspot.com
In regards to Dripping Springs Water. It appears Ron "respect my authority" Kelly gave $2,500.00 of Water supply money to a member of the Hays Trinity Groundwater Conservation District.
I do not know who or why.
Hey Anonymous, instead of posting slack-jawed comments about Ron Kelly giving money away, why can't you, or don't you actually post the information? Kind of thin on the facts, just hearsay and lip-slapping.
Bad news on the water supply front:
LCRA reports that the lack of water in both Lake Travis and Lake Buchanan is at the "critical" stage. (See daily report at lcra.org)
The City of San Marcos has called for the next stage of water conservation in its plan.
The Edwards Aquifer Authority reports that the aquifer level has fallen 19 feet in 30 days -- to the "critical" stage.
And town and cities in the parched Hill Country are still singing "Y'all come!" to subdivision planners? Sheesh!
To Dripping Springs citizens and City Council:
Don't buy the PILOT plan proposed by BC. It has too many intangibles and loopholes that mean BC could end up paying NO property tax at all.
Also, give no tax abatements to BC. They should pay the normal yearly property taxes that other businesses and individuals in Hays County do.
Bonner Carrington will be welcomed with open arms by Will Conley and Winton Porterfield. Just open your wallet wide Mr Carrington!
The message from Will and Winton: All you citizens of Wimberley be damned!
@ Pay Attention May 4, 2012 9:50 AM
You said: Your reply to me was nothing more than a tirade against straw men. I said nothing about "poor construction" or "renters" in my post. You manufactured those issues.
The article clearly implied shoddy construction and you latched on to "BC" multi-family housing as opposed to just any multi-family housing.
As far as "renters", it's pretty clear that this is an apartment complex - not vertical condos. You certainly weren't referring to the "owners". You specifically referred to "multi-family housing" and "its many children".
The only "straw" here is the one you're smoking. Your prejudice is quite visible.
My concerns are 1) that DSISD, with the highest school tax rate in the area (higher even than Austin's), cannot afford to build more schools and pay more teachers right now and 2) that water supply is already a worry without having to supply ever more subdivisions.
And, thank you very much, Bonner Carrington already IS considering Wimberley.
Great! As a practical matter, few people with real jobs would want to locate there. It's too inconvenient to any of the major thoroughfares and the distance makes anyone conscious of gas prices avoid the place. Wimberley does, however, have lots of water. Maybe water should be exported out of Wimberley to surrounding areas to solve both problems. Shouldn't be a problem since Dripping Springsand Wimberley are in the same basin.
To Anon, May 4,6:53 PM:
Nowhere in my post did I say or imply "shoddy housing." You are just projecting what you THINK I would say.
And I said "BC multi-family housing" because that's what we're talking about, dimwit. Nothing sinister or unusal in that.
As for DS importing water to Wimberley, that's not what they've chosen to do. They wanted surface water from Lake Travis, and that's what they've got -- as long as it's there.
The B-C boys said that tax exemption be damned, they want to pay their taxes just like everyone else. No loopholes there except for the same ones everyone else has. But you know what you get? More money being poured down the drain of Robin Hood...poor districts making off with "rich" districts money...Let the feds bail them out...oh yeah, they're broke too.
@anonymous May 4, 2012 12:06 PM
$2,500? Is that all it costs Ron "law dawg" Kelley and DSWSC to buy a vote on the HTGCD? I guess that'll help them get their 1600 acre-foot permit.
@Pay Attention May 4, 2012 8:30 PM,
You said: And I said "BC multi-family housing" because that's what we're talking about, dimwit.
So you either you i) likewise oppose all other "multi-family" housing irrespective of developer, or ii) oppose only this project. If the former, you are clearly just anti-growth. If the latter, then you obviously do have a specific issue with "BC multi-family housing".
Not sure who you are referring to with "they" regarding "importing water". The city of Dripping Springs is not a utility provider. The Dripping Springs Water Supply Company which services the Dripping Springs area provides mixed groundwater and surface water. LCRA provides surface water to some places. The apartment developer could also form its own utility if the eventual site is not within the CCN of another provider.
Dripping Springs wants 1600 acre feet?!!!
That is an absolute outrage! This is exactly why we need David Baker. He will fight that to the end. How shameful to ask for that much water when they have all that LCRA water.
When is the next Hays Trinity meeting?
When is the next Drippings Springs water meeting?
Dripping Springs merchants and DSISD should not be counting on new revenue from the residents of
CCLS, if it is built. The only property tax money will come from the developer, Bonner Carrington, but they will push the City of DS for tax abatements.
Merchants won't get new revenue, and the City won't get new sales tax because the people who will live in CCLS will mostly work in Austin, since Dripping Springs has few unfilled jobs to offer. While those residents are in Austin, they will shop there because it would be silly to drive home to CCLS, only to drive on farther west to shop in DS. Net value: DS gets no added money from CCLS residents for merchants, no sales tax for the city, and many added children to build schools and hire teachers for.
cc
Saying that the BC project next to Trudy's will give teachers and firefighters a place to live is absurd. They have incomes that are too high to qualify for the apartments. Likewise, any seniors with any investments at all will not qualify.
Applicants can make no more than 60% of the Average Median Income for Hays County. The AMI number goes up according to how many people will be living in the apt.
Even a new single teacher or EMS person makes more than the AMI.
And some of the apartments are reserved for applicants making only 50% of the AMI.
Hey precinct 3:
This is the same type of apartment Sam Brannon lives in. I wonder if he will support it in Wimberley?
Bonner Carrington (BC) has a list of FAQ's, with their answers, at www.cypresscreekledgestone.com.
Here is question #9:
"What would rents be at Cypress Creek Ledge Stone?
As currently projected, the range of rent levels proposed is found below. THESE RENTS INCLUDE UTILITY COSTS:
1 BR/1 BA $712-$865
2 BR/2 BA $855-$1,026
3 BR/2 BA $986-$1,184
4 BR/2 BA $1,101-$1,321."
Note that the rents include the cost of utilities. The practice of allowing the landlord to pay for utilities ("All Bills Paid") has been prohibited for new construction for many years in the City of Austin. That's because tenants are less likely to worry about how much energy or water they consume when someone else is footing the bill.
We want all residents to be mindful of electricity and --especially -- water conservation.
I'll bet Commissioner Ray Whiz wants the CCLS project. He knows there aren't enough users of the LCRA water to cover the cost that WTCPUA pays for it to LCRA. He needs new water users. It's even better for WTCPUA that tenants' water bills will be paid by BC -- not by the tenants themselves. WTCPUA is sure to get the money.
Question #4 from CCLS' FAQs:
"4. How would this project affect the Dripping Springs [Independent] School District?
Naturally, not all residents living in Cypress Creek at Ledge Stone Apartment Homes would have children. And not all residents would be new members of the community. [Sorry, "community"-rant poster, but that is the word BC used.] Some residents would come from outside this community, but many who currently reside in Hays County and Dripping Springs would come to [CCLS] to enjoy the amenities....Children would attend Dripping Springs Elementary, Dripping Springs Middle School and High School...."
Way not to answer the question, but instead to wax euphoric about CCLS' "amenities!"
It's plain to see that CCLS expects A BUNCH of children when you see that they will have 2-,3-, and even 4-bedroom apartments.
Will BC actually pay any property taxes to support these new schoolchildren?
One number mentioned by a City of DS employee was that BC might have to pay up to $140,000 in property taxes a year. But consider that the cost, per year, to educate a
child is said to be between $5,000 and $11,000 a year. If BC paid $140,000, that would educate only 28 children at $5,000 a year, or 12.73 children at $11,000 a year.
In either case, you know there will be MANY more than 28 new children in a complex with 224 apartments!
"...state rules...govern the lucrative subsidies developers rely on to build affordable housing....But do not expect them to seek properties in wealthy suburban areas, several developers agreed. First, land costs are too high. Second, projects are still heavily penalized under the points system if neighborhood groups oppose them.
'There is a stigma,' said [a developer]. The neighbors don't want it. The school district doesn't want it. There is always an issue.' "
-from www.texastribune.org
"With New Rules, Housing Board Loses Power" May 6, 2012
Another large apartment complex in the works for Dripping Springs is an 80-unit senior housing development to be built by Merritt Communities. It will be 3 stories tall and will be on enough land to allow for expansion.
As for the Bonner Carrington 244-unit apartments for families, the Merritt Hill Country Senior Homes will be only for people whose income does not exceed 60% of the Area Median Income for Hays County.
At least the Senior Homes won't house children who must be educated by the revenue-strapped DSISD!
Merritt has made application for tax credits from TDHCA.
Has the project yet received a resolution of welcome from the City of Dripping Springs?
On February 16, 2012 the Wimberley City Council passed a resolution saying that they approve the wish of Bonner Carrington to build a senior development in Wimberley. It would be called Mariposa at Ranch Road 12. (See City Council Minutes for Feb. 16)
BC has made application to the Texas Dept. of Housing and Community Affairs for tax credits. The application will be approved or denied by TDHCA this summer.
The 80 units will be located off Ranch Road 12, behind Brookshire Brothers.
I had not heard of Wimberley city council's approval of a senior development. Who's bread will it butter, besides Aqua Texas? Anyone know where to comment in opposition with the TDHCA. I doubt it would have mattered to the city.
I wonder whether the Merritt Hill Country Senior Homes in Dripping Springs and the Mariposa senior development in Wimberley will be "all bills paid?" If so, not a good idea. I think that feature alone should cause any town to turn down the project -- especially in the water-starved Hill Country. Most people need to pay their own utility bills to be
truly conservative of water or energy.
BTW, I wonder whether gas will be used for heating and cooking in the units. Especially in senior apts. it seems to me that having gas is just asking for an explosion or fire caused by someone's absentmindedness.
to "I vote no":
Yeah, it matters to the City of Wimberley. Practically its only source of revenue is part of the sales tax and a few fees.
With 80 senior apartments, there will be 80-120 or so people shopping at Brookshire Brothers and elsewhere and paying sales tax.
Like Dripping Springs, Wimberley shouldn't give any tax abatements to developers. They are lucky to be able to buy land cheaper here than in Austin, and they get tax credits from TDHCA. They don't deserve any more financial breaks -- breaks that other facilities in DS and Wimberley didn't get.
Mayor Lucy Johnson resisted an offer from BC to build a multi-family complex in Kyle that would have been called Cypress Creek at Four Seasons. BC wanted Kyle to change the zoning on 20+ acres of land from retail to multi-family. Mayor Johnson said no thanks, we'd rather keep that property commercial and get the property taxes when it is developed. BC, of course, wanted tax abatements. Smart mayor.
Hey Debunker - you know you are stupid when you add your own math up and realize that if it costs $5000-11,000 a year to educate a student, ask yourself, who in the hell pays that much in property tax individually, and you'll quickly figure out that while some people may pay $6000 a year, and have more than one child in school, how does your math make any sense? In other words, nimrod, everybody in the County subsidizes somebody - whether it's the young subsidizing the old with EMS services, to the richer residential taxpayers with low crime subsidizing the lower residential taxpayers who statistically have higher crime rates to which the Sheriff's Dept has to respond. Get over how much taxes this guy pays, if he pays his taxes (even if it's $140,000) than we lose it just like we lose yours if you haven't lived in the District long.
Local politicians always cater to the interests of business and retailers. That's nothing new. More people mean more sales and what's good for business is good for everybody, etc., etc.
What's so damn confounding is why they are allowed to keep engaging in their collusion with fewer and fewer natural resources staring all of us in the face! I have concluded that they must not care at rat's arse about our children's future or they're all smokin that green happy dope called MONEY! :)
To the Anonymous who said;
"Yeah, it matters to the City of Wimberley. Practically its only source of revenue is part of the sales tax and a few fees.
With 80 senior apartments, there will be 80-120 or so people shopping at Brookshire Brothers and elsewhere and paying sales tax."
You are exactly right! The little burg of Wimberley has no property tax so multi family apartments would be right up their alley. They live off of sales taxes mostly from tourists. They wouldn't have to supply additional infrastructure, just rake in the money from the additional people's spending.
The only infrastructure they actually create is in support of luring in more tourists and their money! Examples: Jacob's Well, Blue Hole and that ugly Market Days facility.
It's true the City of Wimberley has no property tax RIGHT NOW, but it probably will one day. It's important to get in the agreement with BC Mariposa that if or when Wimberley passes an ad valorem tax, BC will will be subject to it at the ordinary rate. No tax abatements.
On these developments for seniors, sometimes the owner has trouble filling all the apartments in a small town. Even in San Marcos, the BC Mariposa complex on Hunter Road has had to accept some Section 8 tenants and some people under age 55+ in order to fill the space.
It's an eye-opener to read reviews by residents of a BC project at Lakeline which is similar to what Stuart Shaw proposes for a multi-family development near Trudy's.
Go to www.dsourbackyardourfuture.blogspot.com and read the first article under May 8, "Apartment Reviews."
Anonymous of May 8th (5:15 pm) - I took you up on the offer to read the article and the reviews on the CC Lakeline Apartments. 21 reviews over six years, and they were not all negative; maybe half were negative? As well, again 21 out of how many units - 244 like the proposed CC @ LS? Just curious, but one posting in the last year really doesn't make a very compelling case that there are the problems you make them out to be. Out of the 200+ units, if all you can find posted is one review, that's weak.
to Anon May 9,10:51PM:
There weren't a whole lot of reviews for any of the 3 apt. complexes mentioned; people who live in low-income housing often don't have computers or even know about websites where they can complain.
Secondly, compare the percentage of people who were unhappy with the percentage of the other 2 apt. complexes mentioned (Fox Hill and one other). Cypress Creek at Lakeline had FAR more negative reviews.
And, BTW, the owners of the other 2 complexes DO pay property taxes.
So Anon, you are saying that because you have 21 comments given over a six year period (not all of which were negative) that somehow equates to a black eye for the developer? Kind of weak. There was ONE negative comment in the last year; and then you chalk that up to people who are "poor" not having access to computers or even can find websites that they can complain on." I find that laughable since most poor people are a lot more savvy than you give them credit for in that regard. And more so, these folks aren't poor, except maybe in your eyes. They are making a living that gives them dignity and respect versus being on the government tit for their sustenance. Give me a break. Just say that you're opposed to having people of color and who don't make as much as you do living next to you and be done with it.
To Anon May 10, 2:13 PM--
You don't have any sound arguments, and so you're resorting to the ploy of losers -- injecting race into the argument. I'm prejudiced against neither the poor nor people of color. I don't think that either aren't "savvy," but I do realize they often lack the money to buy computers and iPads. They struggle just to have food in the house, let alone electronic gear.
Wimberley does not have a sewer system as of now. The City has been talking about building one but the cost would be huge $20,000.00 to hook up and hook up would be mandatory. This development won't happen any time soon. kick
Anonymous at 8:16a.m:
Speculative Developer Wimberley Springs Partners/Winton Porterfield is most likely chomping at the bit to work something out with anyone seeking to develop mass housing projects in unincorporated Woodcreek North. Aqua Texas water and sewer is available and with Commissioner Conley in his back pocket it would be a slam dunk getting Court approval.
Anon May 10 9:02 am -
I certainly didn't inject race or poverty into this - you did by the insinuation that these people don't have the resources or the "savvy" to understand how to find the places to complain. These folks are people making much more than what you think they're going to make - between $26,000 and $53,000 - certainly enough to own a computer (and why does it have to be an iPad?).
How is Aqua Texas going to be able to provide wastewater service to all the new homes in WSP's The Ridge at Wimberley Springs and to the Mariposa senior complex planned downtown behind Brookshire Brothers?
I have heard that the Jacob's Well Elementary School can't even flush the toilets sometimes.
I believe it's a TCEQ regulation that when a wastewater treatment plant is at 75% capacity, the utility must be drawing plans for a new plant or for expansion. When the plant is at 90% capacity, new construction or expansion must have begun. Those regs are so that the WWTP doesn't have to do things in a hurry at the last minute.
Why isn't Aqua Texas expanding or building a new WWTP? Why doesn't TCEQ enforce its own regulations?
The upper income limit for people wanting to live in the Cypress Creek at Ledge Stone apartments near Trudy's is 60% of the Area Median Income (AMI) of Hays County. I'm told that the AMI for the county is a little over $40,000 a year. Sixty per cent of that would be $24,000. Teachers, firefighters, and many more workers make more money than that and would be excluded from CCLS. Those are the very people Stuart Shaw (head of Bonner Carrington, the developer) has said he would be providing homes for.
Additionally, 20% of the 244 apartments (=48 apts.) would be reserved for people making less than 50% of AMI (=Section 8 applicants). Shaw has been reassuring people that CCLS "is not Section 8 housing." That's a half truth, at best. At least 1/5 of the apartments CAN be rented to Section 8 residents -- and more if CCLS has trouble filling up the space.
And don't yammer at me that I'm down on poor people. I'm not -- I'm just reporting facts. Whether they make you happy or not is up to you.
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