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City delays decision on beach-front buyouts
By Leigh Jones
The Daily News
Published January 11, 2009
GALVESTON — The city council gave full support Thursday to plans to seek federal grant money to raise houses damaged by Hurricane Ike but hesitated about buyouts for beach-front homeowners.
Almost all of the council members want to ensure requesting money for buyouts won’t hurt their chances of getting money for elevations, projects all of them agree should be the city’s top priority.
But some council members oppose the city’s involvement in beach-front buyouts. Since state law gives the Texas General Land Office jurisdiction over the beaches, the agency should be the one requesting buyout funds, they said.
Unanswered questions about the agency’s ability to apply for the grants halted the council’s debate about buyouts Thursday, leaving West End homeowners to wait another two weeks to find out whether they have a chance at recouping some of their Ike losses.
Once the council gets its questions about the program answered, it must then tackle the philosophical question at the bottom of the debate about beach-front buyouts — should property owners who knew the risks of building so close to the water be compensated when the return on their investment didn’t pan out?
Not Fair
About 144 homes ended up on the public beach after Ike chewed away the narrow strip of sand that separated the structures from the water.
The state has a right to remove those houses under the Texas Open Beaches Act, although enforcement of the rules has been limited in recent years.
But without a buyout, property owners could still face the prospect of walking away from what most of them describe as a significant investment.
While buyouts might be good for those property owners, they’re not really fair, Councilwoman Elizabeth Beeton said.
Beach-front buyouts put those property owners in a better position than anyone else in the city, she said.
“No one else in town is going to get an offer like this,” she said. “The message we’re sending is that those on the edge of the beach will be held harmless. Everyone else must roll the dice.
“It’s not in the best interest of the city or good public policy to do these buyouts.”
A Matter Of Jurisdiction
Although Beeton argued buyouts are not good public policy, she would like them better if sponsored by the state.
Money for both buyouts and elevations will come from the Hazard Mitigation Grant Program, a federal assistance initiative managed by the state’s Division of Emergency Management.
Under the program’s guidelines, governmental agencies must apply for money on behalf of property owners in their jurisdiction.
Since beach-front houses are now on property overseen by the land office, it should submit the applications, Beeton argued during Thursday’s council meeting.
Unauthorized Purchases
But no one on Thursday could confirm the state’s ability or willingness to participate in the program.
Several council members asked to postpone the planned vote to direct staff to work on buyout applications until someone from the state’s emergency management group could answer their questions.
The land office could apply for a mitigation grant but not for buyouts, spokesman Jim Suydam said.
The state agency does not have the constitutional or statutory authority to purchase property, Suydam said.
Houses or land purchased under the program become public property and belong to the local jurisdiction.
Enough To Go Around
In November, the city started making a list of property owners interested in getting hazard mitigation funds.
So far, 188 people have signed up. Only 52 of them are interested in elevating their houses.
But the city has tagged 1,226 houses as substantially damaged, forcing owners to raise them above the base flood elevation, 11 feet above sea level on most parts of the island, before they can make repairs.
Some of those homeowners did not have insurance. Council members fear without the grant money, uninsured homeowners also will be forced to walk away from their homes.
While state officials said they have enough money — about $300 million — to do all of the elevations and buyouts the city wants, state priorities and federal rules could make it hard for elevation projects to get funded.
On Thursday, the council approved a resolution asking the state to give elevations the same weight as buyouts. It also approved a resolution asking the Federal Emergency Management Agency to consider elevations under the same, less stringent, criteria as buyouts.
Although council members agree the city should focus on elevation projects, not all of them think the city should abandon beach-front homeowners.
“The city should not stand in the way of people who are trying to get money,” Councilwoman Karen Mahoney said. “It’s premature to discriminate on the allocation of these funds until we see the bigger picture.”
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At a glance
WHAT: An informational meeting about the Hazard Mitigation Grant Program
WHEN: 6:30 p.m. Wednesday
WHERE: Galveston Island Convention Center, 5600 Seawall Blvd.
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