ORDINANCE relating to Fiscal Affairs of MAIN STREET/MARKET SQUARE REDEVELOPMENT AUTHORITY d/b/a DOWNTOWN REDEVELOPMENT AUTHORITY ON BEHALF OF REINVESTMENT ZONE NUMBER THREE, CITY OF HOUSTON, TEXAS (MAIN STREET/MARKET SQUARE ZONE); approving Fiscal Year 2024 Operating Budget for the Authority and Fiscal Years 2024-2028 Capital Improvement Plan Budget for the Zone - DISTRICTS C - KAMIN; H - CISNEROS and I - GALLEGOS

SUBJECT: Ordinance approving the Fiscal Year 2024 Operating Budget for the Downtown Redevelopment Authority and Fiscal Years 2024-2028 Capital Improvement Plan (CIP) Budget for Reinvestment Zone Number Three, City of Houston, Texas (Main Street/Market Square Zone).

RECOMMENDATION:  Ordinance approving the Fiscal Year 2024 Operating Budget for the Downtown Redevelopment Authority and Fiscal Years 2024-2028 Capital Improvement Plan (CIP) Budget for Reinvestment Zone Number Three, City of Houston, Texas (Main Street/Market Square Zone).

SPECIFIC EXPLANATION:

The Administration has undertaken a comprehensive review of the proposed FY24 TIRZ budgets and recommends approval of the FY24 Operating Budget for the Downtown Redevelopment Authority (the Authority) and Fiscal Years 2024-2028 Capital Improvement Plan (CIP) Budget for Reinvestment Zone Number Three, City of Houston, Texas (Main Street/Market Square Zone).

• Total Operating Budget for FY24 is $31,855,217 which includes $7,870,558 for required fund transfers and $23,984,659 for Project Costs primarily committed to developer/project reimbursements, $4,176,514 in debt service, office conversion incentive program, and pedestrian lighting improvements.
  
  

• The FY24 Operating Budget also includes $789,500 for administration and overhead, and $9,244,895 for developer/project reimbursement agreements such as Buffalo Bayou Park, Downtown Launch Pad 2.0, Market Square Tower, Skyhouse I & II, and Aris Market Square.
  
  

• The FY24 Operating Budget has a municipal services charge of $1,065,000 and a supplemental municipal charge of $980,000.
  
  

• The FY24 – FY28 CIP Budget totals $47,606,200 and includes provisions for targeted blight remediation, pedestrian lighting improvements, Warehouse District infrastructure improvements, and Main Street corridor improvements.
  
  

• The Authority must advise the Chief Development Officer of any budget amendments.  Adjustments to the budget that involve an increase, decrease, or adjustment of $400,000 or more must be approved by City Council.

Attachments: FY24 Operating Budget and FY24 - FY28 CIP Budget

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Andrew F. Icken, Chief Development Officer

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Gwendolyn Tillotson, Deputy Director

Mayor's Office

Phone: 832.393.0937