Some residents want the Island to remain as it is and oppose nearly any development or growth of any nature. Others who own Beachfront or large tracts suitable for development want to sell and capture the profits of their investment. Developers want to buy and develop but must have the ability to make a profit off the land they purchase. Therein lays the rub. The never-ending pissing match between residents, landowners, developers and the City Hall will continue as the new rules do little to resolve high rise development controversy.
In a story by Leigh Jones of The Daily News (see her full story), Randal Davis, well respected developer extraordinaire, currently developing Diamond Beach near the west end of the seawall makes some valid points.
"The economics are so difficult because of construction costs that it will make it difficult to come to Galveston and continue the development process. Diamond Beach is being built on an eight-acre site which made it easier to spread out and defray the land’s $10 million purchase price," Davis stated.
But tracts that big are almost impossible to find anymore and the smaller the property, the higher a developer needs to go to make money on his investment, he said.
Developers who want to build more than eight stories must ask for special permission, a permitting system similar to the interim height rules that caused the development community so much grief.
At least the special permit process leaves open the possibility of high-rises, an improvement over the first drafts of the regulations, which only allowed tall buildings in certain areas, said Greg Harrington, chairman of the Galveston Chamber of Commerce board of directors.
Some agree, but others who’ve invested here in the past say the rules will stifle development and all but guarantee they won’t be breaking ground in Galveston again.
The new regulations give developers the right to build up to five stories, as long as they meet lot size, setback and floor area ratio requirements. Developers must carry the cost burden for the right to build up to three more stories by providing such things as public open space and affordable housing. Affordable housing on a barrier island resort just may be the straw that breaks the camel’s back.
Depends on what you consider affordable one must suppose. One thing for certain is Galveston Island is not getting any bigger and “affordable” housing for residents who work in the tourist industry may not be achievable. Galveston has always been a tourist and second home endeavor.
That will never change. As a matter of fact, if it wasn’t for tourists and second home residents, Galveston would have few jobs to support the residents, if any. Additionally, almost 50% of the taxes that run the city and schools come from the mainly second home areas of the west end of the island. Seems to put Galveston in the age old position of “can’t live with them, can’t live without them” frame of mind.
Retaining that element of subjectivity may mean fewer tracts of land are sold each year, and most developers would be foolish to pay a premium price for land based on a development plan subject to the whims of city government.
Randal Davis says he and others may not even bother. And he’s likely not the only one who will stay away, say the regulations’ critics.
While the new regulations may reflect a compromise between residents and those desiring to sell their land to developers, most high rise developers will most likely seek the greener pastures of the South Texas Coast, where cities and towns are more amenable to progress, the permitting process is more predictable and the tax base created by the visually stunning high rises are more appreciated.
Even though the new regulations may spell a death financial death blow to development, the regulations should benefit current mega luxury developments:
Palisade Palms,
Diamond Beach Resort and Spa, and
Emerald By The Sea, as they are already approved under the regulation radar right on the beach.
They may very well be the last developments of their kind approved which should make owning a one of the units appreciate above and beyond all other Galveston properties.
While Diamond Beach is not a high rise it may be Galveston’s last Randall Davis quality development.
It is behind the 17ft high seawall where it meets the beach, giving it both the protection of the seawall and beach access, making it truly a diamond in the rough.
Who knows what the future holds for Galveston development?
That may just be the problem as developers may become unwilling to purchase properties in areas like Galveston, where the regulations are murky.
By Robert Peltier, staff writer
TGCOL