District Positions for Mid-Century Success
Extending service plan through 2045, Board ensures continuation of managed prosperity
Extending the Horizon: Having petitioned to extend the Westchase District’s service plan through 2045, property owners are thinking about their long-term futures. (Photo courtesy of David Reynolds, Digital Knight Productions)
When Westchase District was formed by the Texas Legislature in 1995, people developed film, rented videocassettes and used public pay phones. Today, those technologies are largely obsolete, and we can’t imagine living without our smartphones, social media channels and streaming services. While we can’t predict for certain what life will be like 25 years from now, one thing is for sure: Westchase District will still be around.
Last fall, more than 50 Westchase District property owners signed petitions requesting the Distirct’s Board of Directors, in accordance with state law, extend the life of the District, which previously was set to expire in 2023. In December, the Board voted unanimously to extend the District’s service plan through 2045.
Forward thinking
The service plan maintains the current assessment rate of nine cents for every $100 worth of property value that has been in place since 1995. “I’m glad the District’s that much of a responsible fiduciary steward to do that,” said Jeannie Bollinger, president of the Houston West Chamber of Commerce. “I think this shows that Westchase District is extremely forward-thinking about the future of its community.”
“This extension ensures that Westchase District will be around to continue its core services of public safety, mobility and beautification into the middle of the 21st century,” said Philip Schneidau, Board chair. “It positions us to maintain the infrastructure of streets and streetscapes, as well as the amenities - like parks and trails - that we’re building through our 380 Program. Securing our operations for the future also allows us to seek an extension of the 380 Program and compete for additional grants.”
The certainty and continuity of the District’s services is critical when it comes to taking on large-scale, multimillion-dollar projects. “Some projects would consume our entire budget for one year, but since we’re guaranteed to be around, we can phase some of those projects over multiple years,” said Irma Sanchez, Westchase District’s vice president of projects. “Extending our service plan allows us to scale our ability to improve the area for our stakeholders.”
Stakeholder benefits
Greg Cardwell is a real estate services manager for Phillips 66, one of the District’s major employers. He said the District’s continued presence is reassuring to companies like his headquartered in the area. “The city seems to be moving west and many of our families live on the west side of Houston as well, so getting into the office safely and efficiently is important for us to recruit and retain the best employees,” he said. “Of course, the beautification of the District and the amenities available here enhance the experience as well. Trusting that those levels of service will continue well into the future gives Phillips 66 confidence about growing our presence in the District.”
The service plan extension has potential benefits for residents of the District as well, said Stacy Hunt, executive director with Greystar, the world’s largest apartment property management firm. In Westchase District, Greystar manages two apartment communities: Plaza at Westchase and Richmond Townhomes.
“Most apartment communities have a life expectancy of about 50 to 60 years,” he said. “What the service plan extension means for the multifamily industry is that investors can go out today and buy existing communities in Westchase District that are 30-35 years old and in good shape, improve them now and know that should they choose to tear down and rebuild a new community, the same controls that have helped create a quality environment will be there.”
Hunt added that equity capital firms increasingly are looking at multifamily communities as long-term investments. “It’s not build-and-flip or buy-and-flip anymore,” he said. “They want to buy for the cash flow for 20 or 30 years. That’s a good sign, because flippers have a tendency not to take care of properties, while long-term holders do take care of them and budget for capital expenditures, which helps everybody. So I think the District extending its service plan another 25 years will only attract more long-term, patient capital to the area.”
Anticipating needs
“The beauty of this process is that it was owner-generated with zero opposition,” said Dave Gilkeson, Westchase District vice president and chief operating officer. “That tells me the community completely supports this effort. It’s not just the District saying that we want to go on longer. Our owners recognize that when we do our job and grew their values, not only does it benefit them, but then the District has more resources and it creates an upward spiral.”
Gilkeson said he thinks most owners and tenants intend to be in the District long-term, so they want someone looking even beyond their tenure. “I think our owners see us delivering a value that is necessary to their operations and have confidence in us because we communicate with them frequently,” he said. “We’re sensitive enough to know what the need, often before they ask for it.”