City of Rockport, Texas
Fiscal Impact Analysis
The Challenge
At first glance, Rockport appears to be a sleepy coastal village situated along the Texas Gulf Coast. Upon closer inspection, it is anything but sleepy, with upscale condominiums, a growing number of second homeowners, an active harbor, and a significant tourism presence. With no end in sight to residential growth in the area, city leaders have sought to balance the desire for amenities to meet the needs of new residents and visitors with current residents’ desire to maintain the city’s existing character. These competing concerns are highlighted by the proposed development of the Harborfront property.
This 17-acre site, owned by the Bass family and the Aransas County Navigation District, is the city’s last remaining waterfront property. Concerns about the Harborfont property and other proposed development in the area fueled the creation of the Heritage District which will govern architectural and design standards in the city’s commercial district. To help city leaders understand the implications of the build-out of the Harborfront and its relationship with the Heritage District, the City of Rockport engaged TIP Strategies, Inc. to provide an economic foundation for the downtown development plan being prepared separately by Austin-based Halff Associates.
The Approach
TIP was charged with helping city leaders understand the impact of various development alternatives for the property and to provide strategies for integrating the property with the downtown. To accomplish this task, we reviewed available background information on the site, conducted economic and market research, benchmarked other similar communities, and interviewed local officials and stakeholders regarding community goals for the property. Chief among these are encouraging mixed use development, maintaining public access to the waterfront, and preserving the existing character of the downtown. These tasks informed the preparation of development scenarios, which were then modeled to estimate their fiscal impact. Infill and redevelopment recommendations were prepared based on the results of the scenario modeling, findings from the retail trade analysis conducted by Cofer, Haag, & Thrasher (CHT), and available materials regarding the downtown.
The Outcome
In large measure, the success of the Harborfront – and ultimately the Heritage District – will depend upon creating a destination. To succeed in this task, the city and the developer must emphasis the special place Rockport occupies in Texas and on the Gulf Coast. Few communities anywhere in the state can lay claim to Rockport’s identity, uniqueness, and character. Plans for the Harborfront must recognize that Rockport can capitalize on its uniqueness – on qualities that allow for the managed growth of a product that is not available anywhere else in the state.
Balancing community goals with economic realities, however, will require the citizens of Rockport to make hard decisions. Along with a consideration of direct participation in the project (through bonding, tax increment financing, or tax abatements or rebates), the city is in the process of re-thinking its current limitations on density. If the success of the Harborfront is dependent upon creating a destination then it makes sense to concentrate on other aspects, such as sight lines, access to the waterfront, building materials, and architecturally interesting features. It makes little sense to impose restrictions so severe that a project ceases to be financially viable. Finding creative solutions for blending developer needs with community objectives must be the focus of the discussion.
Todd W. Pearson Mayor, City of Rockport 622 East Market Street Rockport, TX 78382 361.729.2213 ext. 123 mayor@cityofrockport.com
