CHAPTER 3809. MIDTOWN MANAGEMENT DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3809. MIDTOWN MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3809.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "District" means the Midtown Management District.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.002. MIDTOWN MANAGEMENT DISTRICT. The Midtown
Management District is a special district created under Section
59, Article XVI, Texas Constitution.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes
of Sections 52 and 52-a, Article III, and Section 59, Article
XVI, Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing Harris
County, the City of Houston, and other political subdivisions to
contract with the district, the legislature has established a
program to accomplish the public purposes set out in Section
52-a, Article III, Texas Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the midtown area of the city of Houston.
(c) This chapter and the creation of the district may not be
interpreted to relieve Harris County or the City of Houston from
providing the level of services provided as of August 30, 1999,
to the area in the district or to release the county or the city
from the obligations of each entity to provide services to that
area. The district is created to supplement and not to supplant
the county or city services provided in the area in the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
district is created to serve a public use and benefit.
(b) All land and other property included in the district will
benefit from the improvements and services to be provided by the
district under powers conferred by Sections 52 and 52-a, Article
III, and Section 59, Article XVI, Texas Constitution, and other
powers granted under this chapter.
(c) The creation of the district is in the public interest and
is essential to:
(1) further the public purposes of developing and diversifying
the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding for the midtown area of the city of
Houston to preserve, maintain, and enhance the economic health
and vitality of the area as a community and business center; and
(3) promote the health, safety, welfare, and enjoyment of the
public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic and
aesthetic beauty.
(e) Pedestrian ways along or across a street, whether at grade
or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(f) The district will not act as the agent or instrumentality of
any private interest even though the district will benefit many
private interests as well as the public.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1, Chapter 1017,
Acts of the 76th Legislature, Regular Session, 1999, enacting
former Section 376.304, Local Government Code, as that territory
may have been modified under:
(1) Section 3809.107 or its predecessor statutes, former Section
376.316, Local Government Code, as added by Chapter 1017, Acts of
the 76th Legislature, Regular Session, 1999, and former Section
376.366, Local Government Code;
(2) Subchapter J, Chapter 49, Water Code; or
(3) other law.
(b) The boundaries and field notes of the district contained in
Section 1, Chapter 1017, Acts of the 76th Legislature, Regular
Session, 1999, enacting former Section 376.304, Local Government
Code, form a closure. A mistake in the field notes or in copying
the field notes in the legislative process does not affect the
district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for a purpose for which the
district is created or to pay the principal of and interest on a
bond;
(3) right to impose or collect an assessment; or
(4) legality or operation.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.006. APPLICABILITY OF OTHER LAW. Except as otherwise
provided by this chapter, Chapter 375, Local Government Code,
applies to the district, the board, and district employees.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.007. LIBERAL CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3809.051. BOARD OF DIRECTORS; TERMS. (a) The district is
governed by a board of 17 directors who serve staggered terms of
four years with eight directors' terms expiring June 1 of an
odd-numbered year and nine directors' terms expiring June 1 of
the following odd-numbered year.
(b) A director shall receive compensation as provided by Section
49.060, Water Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.052. APPOINTMENT OF DIRECTORS; IMMUNITY. (a) The
mayor and members of the governing body of the City of Houston
shall appoint directors from persons recommended by the board. A
person is appointed if a majority of the members and the mayor
vote to appoint that person.
(b) A person may not be appointed to the board if the
appointment of that person would result in fewer than two-thirds
of the directors being residents of the city of Houston.
(c) District directors are public officials entitled to
governmental immunity for their official actions.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.053. EX OFFICIO DIRECTORS. (a) The following persons
serve as nonvoting ex officio directors:
(1) the directors of the parks and recreation, planning and
development, public works, and civic center departments of the
City of Houston;
(2) the chief of police of the City of Houston;
(3) Harris County's general manager of the Metropolitan Transit
Authority of Harris County, Texas; and
(4) the president of each institution of higher learning located
in the district.
(b) If a department described by Subsection (a) is consolidated,
renamed, or changed, the board may appoint a director of the
consolidated, renamed, or changed department as a nonvoting ex
officio director. If a department described by Subsection (a) is
abolished, the board may appoint a representative of another
department of the City of Houston that performs duties comparable
to those performed by the abolished department.
(c) The board may appoint the presiding officer of a nonprofit
corporation that is actively involved in activities in the
midtown area of the city of Houston to serve as a nonvoting ex
officio director.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.054. CONFLICTS OF INTEREST. (a) Except as provided
by this section:
(1) a director may participate in all board votes and decisions;
and
(2) Chapter 171, Local Government Code, governs conflicts of
interest of board members.
(b) Section 171.004, Local Government Code, does not apply to
the district. A director who has a substantial interest in a
business or charitable entity that will receive a pecuniary
benefit from a board action shall file an affidavit with the
board secretary declaring the interest. Another affidavit is not
required if the director's interest changes.
(c) After the affidavit is filed, the director may participate
in a discussion or vote on that action if:
(1) a majority of the directors have a similar interest in the
same entity; or
(2) all other similar business or charitable entities in the
district will receive a similar pecuniary benefit.
(d) A director who is also an officer or employee of a public
entity may not participate in a discussion of or vote on a matter
regarding a contract with that same public entity.
(e) For purposes of this section, a director has a substantial
interest in a charitable entity in the same manner that a person
would have a substantial interest in a business entity under
Section 171.002, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3809.101. DISTRICT POWERS. The district may exercise the
powers given to:
(1) a corporation created under Chapter 505, Local Government
Code; and
(2) a housing finance corporation created under Chapter 394,
Local Government Code, to provide housing or residential
development projects in the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.38, eff. April 1, 2009.
Sec. 3809.102. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation
to assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered for purposes of this
chapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service authorized
by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as, for the same term
as, and on the conditions of the board of directors of a local
government corporation created under Chapter 431, Transportation
Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.103. AGREEMENTS, DONATIONS, GRANTS, AND LOANS. (a)
The district may enter into an agreement with or accept a
donation, grant, or loan from any person.
(b) The implementation of a project is a governmental function
or service for the purposes of Chapter 791, Government Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To
protect the public interest, the district may contract with
Harris County or the City of Houston for the county or the city
to provide law enforcement services in the district for a fee.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.105. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, does not apply to a district contract for
$25,000 or less.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.106. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. (a)
Except as provided by Subsection (b), the district must obtain
the approval of the City of Houston's governing body:
(1) for the issuance of a bond for each improvement project;
(2) of the plans and specifications of an improvement project
financed by the bond; and
(3) of the plans and specifications of any district improvement
project related to the use of land owned by the City of Houston,
an easement granted by the City of Houston, or a right-of-way of
a street, road, or highway.
(b) If the district obtains the approval of the City of
Houston's governing body of a capital improvements budget for a
period not to exceed five years, the district may finance the
capital improvements and issue bonds specified in the budget
without further approval of the City of Houston.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.107. ANNEXATION. In addition to the authority to
annex territory under Subchapter C, Chapter 375, Local Government
Code, the district has the authority to annex territory located
in a reinvestment zone created by the City of Houston under
Chapter 311, Tax Code, if the city's governing body consents to
the annexation.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.108. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2005, 79th Leg., Ch.
684, Sec. 9, eff. June 17, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3809.151. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (a) The board may not finance a service or an
improvement project under this chapter unless a written petition
requesting that service or improvement is filed with the board.
(b) The petition must be signed by:
(1) the owners of a majority of the assessed value of real
property in the district according to the most recent certified
tax appraisal roll for Harris County; or
(2) at least 25 owners of land in the district, if more than 25
persons own property in the district according to the most recent
certified tax appraisal roll for Harris County.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.152. DISBURSEMENTS AND TRANSFERS OF MONEY. The board
by resolution shall establish the number of directors' signatures
and the procedure required for a disbursement or transfer of the
district's money.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.153. AUTHORITY TO IMPOSE AD VALOREM TAXES,
ASSESSMENTS, AND IMPACT FEES. The district may impose an ad
valorem tax, assessment, or impact fee as provided by Chapter
375, Local Government Code, on all property in the district,
including industrial, commercial, or residential property, to
finance:
(1) an improvement this chapter authorizes the district to
construct or acquire; or
(2) a service this chapter authorizes the district to provide.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.154. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3809.158, the district
may impose an annual ad valorem tax on taxable property in the
district to:
(1) maintain and operate the district and the improvements
constructed or acquired by the district; or
(2) provide a service.
(b) The board shall determine the tax rate.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The
board by resolution may impose and collect an assessment for any
purpose authorized by this chapter.
(b) An assessment, including an assessment resulting from an
addition to or correction of the assessment roll by the district,
a reassessment, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property assessed;
(2) are superior to any other lien or claim other than a lien or
claim for county, school district, or municipal ad valorem taxes;
and
(3) are the personal liability of and a charge against the
owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment
is paid. The board may enforce the lien in the same manner that
the board may enforce an ad valorem tax lien against real
property.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.156. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS AND
IMPACT FEES. The district may not impose an assessment or impact
fee on the property of a person that provides to the public gas,
electricity, telephone, sewage, or water service.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.157. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.158. ELECTIONS REGARDING TAXES OR BONDS. (a) In
addition to the elections required under Subchapter L, Chapter
375, Local Government Code, the district must hold an election in
the manner provided by that subchapter to obtain voter approval
before the district may:
(1) impose a maintenance tax; or
(2) issue a bond payable from ad valorem taxes or assessments.
(b) The board may include more than one purpose in a single
proposition at an election.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3809.159. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, a municipality is not required to pay a bond,
note, or other obligation of the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER E. DISSOLUTION
Sec. 3809.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.
(a) The board may dissolve the district regardless of whether
the district has debt. Section 375.264, Local Government Code,
does not apply to the district.
(b) If the district has debt when it is dissolved, the district
shall remain in existence solely for the purpose of discharging
its debts. The dissolution is effective when all debts have been
discharged.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.