The Rice Management Company (RMC) envisions transforming 16 acres of University-owned or controlled land to create an innovation district within the City of Houston. This project, known as the ‘Ion District’, anticipates over three million square feet of mixed-use development including offices, retail, apartments, community spaces, and other uses. The Ion District is anchored by The Ion building, a 266,000 SF innovation hub located at the historic former site of the Sears Department Store, built in 1939.
Recognizing that the Ion District’s significant benefits could be extended and maximized to benefit Houstonians beyond the project’s physical boundaries, the City negotiated a Community Benefits Agreement (“CBA”) with RMC. The CBA entailed an inclusive, proactive process that documents enforceable commitments within the CBA that will ensure the project will benefit not only the immediate neighborhood but all Houstonians.
In November of 2020, RMC invited a group of community stakeholders, known as the CBA Working Group, to assist in the identification and translation of sustainable community improvements and economic opportunities into a set of strategic commitments that are detailed in CBA between RMC and the City. Prior to the formation of the CBA Working Group, RMC conducted multiple outreach initiatives that included a community engagement listening tour in 2019 and dozens of one-on-one and small, interpersonal group meetings to understand the community’s vision, needs, and objectives. RMC and the City of Houston jointly hosted a three-part virtual community workshop series in the fall of 2020 that was open to the public. A six-month open community comment period also provided additional opportunities for community input and engagement. The proposed CBA was also presented to the Economic Development Committee on October 20, 2021.
RMC $15.3 million financial CBA commitments include:
- $8.25M venture capital in seed funding, skills training opportunities, minority owned or managed accelerator organizations, and new jobs
- $4.5M to an affordable housing fund. This funding commitment is in addition to the $45M - $52M incremental tax revenue generated by the Ion District Development for affordable housing within TIRZ #2.
- Grants for counseling and eviction protection, supportive housing, homelessness services, and capacity building
RMC additional in-kind and project-based opportunity commitments include:
- Supportive services and workspace for small businesses
- Contracting opportunities for local Minority and Women-Owned Business Enterprises (“MWBE”)
- Inclusive hiring and community access
- MWBE real estate investment opportunities
- Sustainable design and construction
City CBA commitments focused on new program development and program expansion include:
- MWBE bonding education, support, and outreach
- Homestead protections and exemption support
- A Month of Service and Turn Around Houston
- Complete Communities Improvement Fund repository
All commitments will be monitored by a Community Advisory Council consisting of nine (9) community members and six (6) Ex-Officio members, that are appointed by the Mayor and satisfy certain criteria and expertise outlined in the agreement.
The Planning and Development Department recommends passage of the Ion District CBA ordinance for the City of Houston.
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Margaret Wallace Brown, AICP, CNU-A
Director
Planning and Development Department