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AGAINST KEMAH BALLOT PROPOSITION 1
An open letter to Kemah Voters from KCDC LINK
KEMAH COMMUNITY DEVELOPMENT CORPORATION

Dear Kemah Resident,

On May 7, the Kemah City Council will ask your opinion on how to pay for street maintenance. Specifically, they will ask if half of the Kemah Community Development Corporation revenues should be diverted directly to the City budget. The Board of the KCDC urges you to vote against this proposition.

The KCDC was created by the voters of Kemah to encourage the economic development of the City, to create jobs and to provide parks and park facilities to the residents. To that end, the voters approved a one-half cent sales tax to be collected by Kemah businesses.

Street maintenance is crucial to our city and the KCDC intends to help with this process. The KCDC five-year plan includes some street improvements to be considered by the Board. However, street maintenance will not boost tourism and the sales tax revenue and jobs that tourism creates. There are better ways to fund the street maintenance program than taking half of the KCDC funds.

In years since that election, the KCDC has accomplished many projects. It assisted with paying for the Community Center for the residents, the relocation of City Hall, the upgrade of streets, and the installation of sidewalks and decorative lighting in the commercial district. The KCDC paid for the Welcome to Kemah sign at SH 146, the landscaping of SH146, the acquisition and construction of the West Kemah park, the public restrooms at 6^th and Kipp, the Kemah.net website, and the Kemah Visitor Center. The KCDC funded the advertising of Kemah in numerous publications and trade shows, the 6^th street Lighthouse, and the Archway at Bradford & 6^th. The KCDC budget also sponsored activities such as “Christmas in Kemah,” the 4^th of July parade, “Blessing of the Fleet,” and the Kemah car show

This year, KCDC has budgeted one-half million dollars for the acquisition and development of a fifty-acre park near Kemah Oaks. Also, KCDC has allocated funds to pave the City parking lot and fund a unique lighthouse façade for the new water tower to be constructed by WCID #12. Progress in preserving and enhancing the character of Kemah has been accomplished over the past few years, but the Board of the KCDC recognizes that much remains to be done.

KCDC’s only debt is the approximate one million dollar note ($10,000 per mo. for 15 yrs.), which enabled the City to proceed with the new Community Center for the residents of Kemah and the purchase of the remaining lots to complete the City Parking Lot. Other than this note, KCDC funds projects by first accumulating revenue annually until there are sufficient monies to complete a project. As an example, the Kemah Oaks park project was delayed until KCDC had sufficient funds to submit an application to the State for a matching grant to pay for this one million dollar project.

Currently, one-third to one-half of the revenues received by KCDC annually is allocated to fixed or ongoing expenses. These include administrative overhead costs paid to the City, debt service as described above, memberships, promotional expenses and maintenance costs associated with the public restrooms and landscaping. As a result of ongoing expenses, it will be necessary to delay some projects until sufficient funds have been accumulated to complete them. If this proposition passes and half of the KCDC funds are taken for street maintenance, these projects will be delayed for many years.

The next major project envisioned by the Board, discussed at a public hearing held last year, is the recreation in some way of the Bathhouse and Bathing Pier that existed in Kemah in the 1920’s. This will be used by the residents who don’t have direct access to the waters of Galveston Bay. Other projects that directly benefit the citizens of Kemah are under consideration.

The KCDC recognizes that tourism is the City’s major industry. The City’s size and location militate against major industrial development, large regional offices and large medical facilities. But, the City’s size and location adjacent to Galveston Bay make it an ideal destination for visitors from the Houston metropolitan area and beyond. Kemah’s asset as a water front location can be thoughtfully developed for the benefit of all Kemah residents.

These projects are funded by sales taxes paid primarily by visitors to our community. If we can continue to construct projects, which increase tourism and visitors, then sales tax revenues will increase and the City can keep property taxes low.

The ultimate objective of KCDC – to develop community projects, which encourage new business and attractions resulting in the drawing of more visitors who will spend money in Kemah. Remember: the primary sources of revenue (approximately 66%) for the City’s budget are sales and beverage taxes. Increasing this revenue is the best long term way to pay for Kemah streets and infrastructure.

Kemah voters exercised vision and great foresight when they created the KCDC. The present Board of the KCDC is committed to continuing to implement that vision. The KCDC is proud to represent the interests of all of the residents of Kemah and looks forward to continuing its partnership with the City Council to achieve their goals.

We believe that the KCDC should be a catalyst for positive growth, not just another source of revenue for the City. Again, we ask you to please vote against this proposition.