NEWS FLASH - SEPTEMBER 18, 2005
Transportation Commissioner
Confirms CorridorWatch Prediction
Two weeks ago CorridorWatch issued a bulletin to its membership expressing concern that the massive Wal-Mart purchase-lease land scheme recently touted by State officials would serve as the model for development along the length of the Trans-Texas Corridor. It is a concern CorridorWatch has expressed and monitored for more than a year.
Today that concern has turned very real.
Yesterday, the Victoria Advocate reported Texas Transportation Commissioner Ted Houghton, Jr., as telling a group assembled at the Victoria Country Club that “the corridor would create opportunities for economic development.” As predicted by CorridorWatch and now reported by the Advocate, Commissioner Houghton went on to cite the “recently constructed 4 million-square-foot Wal-Mart distribution center in
Baytown” as his example for future corridor development.Rather than sticking to the traditional government role of providing infrastructure that encourages private development and free enterprise, the State itself is now playing the part of developer.
In the Baytown deal, Wal-Mart has secured preferential treatment over thousands other businesses in Texas. Thanks to the sweetheart deal Wal-Mart will avoid paying nearly $3 million dollars a year in local property taxes that would have otherwise added to the local economy. Meanwhile the State will collect large profits as the land developer.
These agreements erode local government revenues while increasing the burden on local taxpayers to provide infrastructure and services. The State reaps profits, big business avoids taxes, and taxpayers pick up the tab.
Some Texas legislators may have thought they solved this problem during the last session. House Bill 2702 removed the property tax exemption for private commercial use of highway and toll project land. While addressing the property tax issue for traveler services built on the future toll roads, it apparently does not to extend to adjacent ancillary facilities. Commissioner Houghton continues to envision State land development along the Trans-Texas Corridor.
CorridorWatch has serious concerns about the State of Texas using powers and leverage only available to government to directly compete with private land developers.
[ VICTORIA ADVOCATE NEWS REPORT ]