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The latest Uptown fuss

I suppose I need to say something about this.

Two members of an economic development board pushing a plan to run a center bus lane along Uptown’s Post Oak Boulevard have financial ties to companies that will be paid for land in the project’s right of way.

Earlier this year, Uptown Chairman Martin Debrovner and secretary and treasurer Kendall Miller disclosed financial interests in two of the more than 30 parcels the board will purchase with public funds to expand Post Oak.

Collectively, three companies that own property along Post Oak – Weingarten Realty Investors, WMJK and Hines Interests – stand to receive about $6 million of the roughly $47 million budgeted for right-of-way acquisitions if average appraisals done by an outside company last year hold.

A third member of the Uptown development board, Louis Sklar, filed a similar affidavit earlier this year because he is a former senior executive at Hines Interests. But according to his affidavit, he does not make enough of his current income from the company or own enough stock, for instance, to have a “substantial interest” in the company as defined by state law.

The board members appear to have followed state law; they have not voted on items with specific or special financial benefit to them, instead voting more broadly to support the bus plan.

Critics contend that the financial disclosures should have been filed in early 2014, when a consultant’s report was issued listing the properties to be purchased along retail-laden Post Oak Boulevard.

[…]

Any appraisal above $500,000 and any offer that exceeds fair market value by more than $50,000 requires Federal Transit Administration approval. As for why the affidavits weren’t filed sooner, Breeding said they waited until right-of-way offers were imminent.

“Our board of directors is much more concerned about (conflicts of interest) than just your average person,” [Uptown President John] Breeding said. “Really, from the very beginning, we said, ‘How can we do this and how can we support it and how can we set up a system that is as transparent and as free from conflict as possible?’ Honestly, it comes up all the time because we build roads and streets in the area.”

Not really clear to me what the scandal is supposed to be. One would expect that members of the Uptown Management District would own property in Uptown, and some of that property will be bought for right of way purposes. Yeah, TIRZes are often more opaque than they should be, but that’s not what is being argued about here. If this is the worst thing that the Uptown opponents have to say about the project, it ought to be very smooth sailing from here.

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