Homeless shelter set to destroy Midtown's redevelopment

This is an absolute tragedy. Houston invests so much time and effort into transforming its midtown area into a presentable and economically viable place to live and conduct business, and then a homeless shelter threatens to nullify the progress which has been made. Developers are already pulling out of the area. The proposed shelter is located at one of the light rail's major stops -- a move which will scare potential riders away. I sincerely hope that activists can put a stop to the disastrous idea of locating a homeless shelter in an area which is so critical to Houston's urban rebirth.
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http://houston.bizjournals.com/houston/stories/2003/03/17/story1.html

Nancy Sarnoff Houston Business Journal

The planned redevelopment of a languishing hotel along the Main Street corridor into a residence for homeless veterans has triggered controversy in the heart of Midtown.

U.S. Vets, a veterans assistance group based in Inglewood, Calif., has contracted to buy the Days Inn hotel located at 4640 Main, just north of Highway 59.

Ultimately, the development will provide housing and support services to hundreds of homeless veterans, including some recovering drug addicts.

A number of area real estate developers and neighborhood activists view the project as a step in the wrong direction for Midtown, which has been on a path of revitalization after years of economic abandonment and blight.

One residential developer already has scrapped plans to build a for-sale multifamily project on a parcel of land adjacent to the hotel.

John Tuschman of Fidelity Management Co. purchased a parcel of land just behind the Days Inn eight months ago for a 44-unit condominium development called Midtown Park Lane.

But since learning about U.S. Vets' plans for the Days Inn property two weeks ago, Tuschman and his partners have decided not to go forward with the residential building.

"We don't think that people will feel secure enough with that kind of density to move into homes next door," says Tuschman. "We're not going to actively oppose the program, but we can't do our residential development. We just don't think the market will allow it."

Other Midtown advocates say the area is already home to dozens of social service organizations, and the last thing it needs is one more.

"We have our fair share," says one Midtown supporter who spoke on the condition of anonymity. "That's enough in our backyard."

Tim Cantwell, managing member of U.S. Vets, sees things differently.

He says the property's redevelopment will only enhance the transition process taking place in the Midtown neighborhood, and will provide a needed service at the same time.

While the service provider associated with U.S. Vets — United States Veterans Initiative — is a nonprofit group, the affiliated entity making the acquisition is a for-profit real estate development company.

So the property will be taxed by the city.

"The property will be responsible for all that you'd expect it to be responsible for," says Cantwell. "That brings a very different element to the game."

Rail access

The sale of the Days Inn is expected to close within in the next couple of months. Once the sale goes through, the California group will begin a multimillion-dollar renovation of the 280-room hotel.

The project is expected to take two years to complete.

Cantwell says one of the reasons U.S. Vets chose this site was because of its proximity to the VA hospital in the Texas Medical Center and Metro's new light rail line, which is scheduled to open on Jan. 1, 2004.

Indeed, the site sits directly across from Metro's new Wheeler/Blodgett transit stop, which will also serve as a transitional hub for rail and buses.

"Our population will be active users, and that's very crucial to us," says Cantwell.

But some opponents say development around the Main Street rail line has significant implications on ridership and how the system develops.

Tuschman has concerns over the number of out-of-work veterans that will be living across the street.

"You could end up with a loitering problem," he says.

Metro officials would not fully explain their position on the homeless facility being developed across from one of the transit authority's most important stations, saying they didn't know enough specifics about the project.

"Metro will support what the community wants, and what's best for the neighborhood," says Metro spokeswoman Patti Muck.

Cantwell says the facility will be occupied by resident veterans who are put through a lengthy screening process before being accepted into the project.

The program has a zero-tolerance policy on drugs and alcohol, he adds.

"We have a clean house, and when you have a safe environment like that, it helps keep its surroundings safe. And that's currently not the case," Cantwell says of Midtown. "There's a lot of vagrancy around it."

Cantwell says opposition from residents has been fueled by "misunderstandings."

"I believe, on examination, it would be safe to say that there is cautious optimism with some continued skepticism that this might be a good thing," he says.

Veteran partners

U.S. Vets is a public-private partnership between nonprofit service provider, United States Veterans Initiative, and a for-profit real estate company called Cloudbreak Development.

The partnership was established in 1993 with a mission to successfully reintegrate homeless veterans into society.

The impressive board of honorary directors includes former presidents Jimmy Carter and Gerald Ford, as well as Hollywood luminaries such as Gregory Peck, Sidney Poitier and Oliver Stone.

The group has developed and currently operates at least eight facilities around the country.

Each facility is structured to generate enough cash flow at full occupancy to sustain the core administrative burden of the support services.

Each site is affiliated with the VA Medical Center in the city in which it is located.

Houston already has one homeless veteran facility operated by U.S. Vets — the DeGeorge at Union Station. Located at 1418 Preston, the property is just blocks from Minute Maid Park.

The property filled up the day it opened in September 2000.

Cantwell says his organization often faces scrutiny when developing a new facility.

He attempts to diffuse the opposition by pointing to similar projects in other cities that he says have had positive outcomes in the neighborhoods where they are located.

"It's an understandable reaction that comes out right away," he says. "It gets faced everywhere we are because there's a perception we're servicing toothless, fuzzy-faced veterans. But these are vets that are clean, pay taxes and helped defend our country."

 

Yes I absolutely do, and I make this claim with full consistency with what I have posted in the past. I believe the government should allow free markets to run their course, so long as negative externalities are not imposed on others. Plopping a homeless shelter in the middle of a rapidly developing area imposes a *colossal* negative externality on all Houstonians. This will greatly diminish the value of the light rail system. This will greatly diminish the value of real estate in the area -- as evidenced by the canceled multi-family housing development. This will lead to a weaker economic base and hence diminished tax revenues. I do believe private shelters are a worthy investment, but the location that has been selected is atrocious.

 

The euthanasia idea could prove a bit expensive, and would most likely be complicated by lawsuits.

I did not say that I do not consider the homeless to not be "Houstonians". You misinterpreted my statement. What I said is that the location of the homeless shelter would impose a negative externality on all Houstonians. My assertion stands. Even as homeless Houstonians who would directly benefit from a place to loiter, they would be harming themselves by diminishing the tax base and reducing the number of government hand-outs available to them.