Georgetown worries Senate bill could threaten livelihood of downtown

GEORGETOWN, Texas - This week, the state Senate passed a bill to help meet the demand for affordable housing in Texas.

But, the City of Georgetown is asking the House to pump the breaks, fearing it could threaten the future of its historic downtown.

The backstory:

"We’re pro-growth, we’re pro-business, but new growth needs to pay for itself," said Josh Schroeder, Georgetown’s mayor.

Last year, Georgetown reported almost 12,000 new residents.

More residents mean more housing, but according to the Texas Comptroller, the state is short of about 300,000 homes.

"Members, this is about housing," said Senator Bryan Hughes (R-Tyler) during Monday’s senate session. "About that American dream of homeownership, which we are becoming aware is increasingly out of reach for the everyday Texan."

Senator Hughes filed SB 840, which would allow developers to convert properties in commercially zoned areas to residential or mixed-use without going through a rezoning process.

"The current rezoning process is lengthy, complex, legal and consulting experts are required, adding cost," said Hughes. "Every time we add to the cost of that home, we price Texas families out of homeownership."

As Senator Roland Gutierrez points out, normally it's the city's zoning commission that decides who gets to build what and where.

"But that gets rid of local control, does it not?" said Gutierrez.

"To the extent that it provides more housing in those areas, it impinges on local control," responded Hughes.

The other side:

Georgetown Mayor Josh Schroeder worries this bill could hurt the city at its core: downtown.

"Our entire historic area, our downtown, that we’ve spent so much time, so much effort, so much money in turning into this beautiful jewel that everybody recognizes," said Schroeder. "Anyone could come in and build multi-family on any of these properties because they’re already zoned mixed-use and what’s frightening about the bill as well, so it doesn’t have any exceptions for our historic regulations."

He added it may also prevent the city from collecting impact fees.

"Which could be literally, hundreds of thousands of dollars that current ratepayers would be required to subsidize for that new multi-family unit, which is just not fair," said Schroeder.

"We’re not anti-growth, anti-development, we just think that those decisions should be made in our community," said Schroeder.

What they're saying:

Senator Hughes wasn't available for an interview, but sent the following statement:

"The American dream of homeownership is getting further out of reach for many Texans. 

Part of the problem is unreasonable restrictions on the development of land. This further shrinks the supply of homes and raises costs for Texas families. 

Senate Bill 840 is one of several bills we have filed this year to stop the government from raising the cost of housing. 

Prices are high enough without unreasonable government regulations making them even higher." 

What's next:

If the House passes this bill, it would only be applicable to cities and counties with a certain population.

Georgetown would meet that requirement, but none of the areas that Senator Hughes represents would.