Houston Incorporated: A Local Government Corporation for Economic Development Execution •
Houston Incorporated: A Local Government Corporation for Economic Development Execution •
EXECUTIVE SUMMARY
The City of Houston lacks an empowered, transparent vehicle to execute a holistic economic development strategy centered on local business growth and community equity. This policy proposes establishing Houston Incorporated, a Local Government Corporation (LGC) designed to carry out economic development execution in partnership with the Mayor’s Office of Economic Development, aligning public investment tools with resident-led priorities and ensuring all programs are accountable, inclusive, and performance-driven.
PROBLEM
What is the problem?
Houston’s current approach to economic development is fragmented, under-resourced, and inequitable. While the Mayor’s Office provides policy guidance, it lacks the staff and authority to implement a comprehensive economic development strategy. Simultaneously, tools like Chapter 380/381 agreements and Tax Increment Reinvestment Zones (TIRZs) have often subsidized luxury developments without delivering public benefits such as jobs, affordable housing, or economic mobility.
Who is impacted?
Residents in historically underserved neighborhoods, particularly communities of color, are most affected by this misalignment. They are denied access to targeted reinvestment and left out of economic decisions despite being subsidizers through redirected tax dollars. Working-class taxpayers also shoulder the burden as general fund resources are diverted to wealthy districts, and economic development programs fail to support the city’s homegrown businesses.
Previous attempts and gaps
The City’s reliance on opaque incentive structures has led to ineffective and, at times, exploitative outcomes. Investigations into TIRZ and 380/381 practices reveal projects with no clear goals, few public safeguards, and limited performance metrics. The 2021 Houston Chronicle’s Unfair Burden exposé highlights how millions were spent without ensuring job creation, living wages, or community benefits . Additionally, the City’s failure to sunset TIRZs—some dating back 30 years—has entrenched fiscal silos that are misaligned with broader city priorities .
Broken promises
These programs were intended to revitalize blighted areas and promote inclusive growth, but instead they have funneled resources into high-income enclaves. Public trust has been eroded by the lack of transparency, community engagement, and mechanisms for resident oversight.
SOLUTION
How Houston Inc. solves the problem
Houston Inc. would operate as an LGC empowered to coordinate, administer, and evaluate economic development programs citywide. Its charge: center equity, performance, and transparency in all initiatives. It would:
Align economic development initiatives with the City’s Capital Improvement Plan (CIP) to avoid duplicative infrastructure spending.
Create pathways for greater resident input into economic development decision-making by establishing community advisory committees and reforming the process for appointing LGC and TIRZ board members, who are currently unelected and unaccountable to constituents.
Develop and publish a public-facing economic equity dashboard tracking incentives, outcomes, and community benefits across neighborhoods.
Conduct a comprehensive study of best practices from other LGCs and TIRZs locally and nationally, identifying factors that have made similar entities accountable, transparent, and successful—or not. This evaluation would inform Houston Inc.’s governance model and performance criteria.
What remains unsolved
Houston Inc. would not by itself eliminate state preemption or reform every existing incentive program overnight. However, it would provide the structure and authority needed to rationalize programs like Chapter 380/381 and overhaul TIRZ operations through transparency and alignment.
Legal feasibility
The City of Houston has legal authority to create LGCs under Chapter 431 of the Texas Transportation Code. No state preemption impedes its establishment for economic development purposes.
Fiscal impact and funding strategy
Start-up funding could come from a combination of General Fund allocations, reallocated TIRZ surplus, and public-private philanthropic partnerships.
Houston Inc. could generate self-sustaining revenue through project-based service fees, federal economic development grants, and shared returns from community investment funds.
Sunsetting dysfunctional systems
Houston Inc. should also be empowered to recommend sunset schedules for TIRZs, many of which have long outlived their original purpose. TIRZs were never meant to be permanent fixtures—especially when data now show they regressively redistribute wealth and increase inequality.
Anticipated opposition
Real estate and development interests benefiting from lax incentive oversight may resist structural reform. Existing TIRZ boards may challenge reductions in autonomy or resources.
Support base
Pro-worker organizations (e.g., Workers Defense Project, Painters Union)
Community development nonprofits
Councilmembers and advocates for fiscal transparency
Civic groups promoting neighborhood economic revitalization
Positioning under Mayor Whitmire
Framed as a fiscally responsible, pro-jobs modernization tool, Houston Inc. aligns with Mayor Whitmire’s emphasis on infrastructure modernization and governance reform. The LGC model would allow the administration to deliver measurable results while advancing transparency and community voice.
Recommended Next Steps
Launch a Houston Inc. Feasibility Task Force with representatives from HCDD, Planning, local chambers, community-based organizations, and fiscal oversight experts.
Initiate a citywide audit of existing Chapter 380/381 and TIRZ agreements to identify sunsetting opportunities and misaligned expenditures.
Design a resident-facing dashboard and engagement portal for Houston Inc. and TIRZ activity—ensuring transparency and input on priorities.
Develop performance standards and accountability metrics tied to job quality, local hiring, and worker protections for all future incentive agreements.
Draft enabling ordinance for Houston Inc. creation and define board structure with built-in community representation.
Footnotes
Houston Chronicle. Unfair Burden, Unchecked. 2021. https://www.houstonchronicle.com/projects/2021/unfair-burden-unchecked/
Environment Texas. Polluter Abatements Campaign, 2024.
Baker Institute. Houston TIRZs Regressively Redistribute Property Tax Burden, Nov 2024. https://doi.org/10.25613/6HVP-HP98
Workers Defense Project. Build a Better Texas: Construction Working Conditions in the Lone Star State. In collaboration with the Division of Diversity and Community Engagement at the University of Texas at Austin. Austin, TX: Workers Defense Project, January 2013. https://workersdefense.org/wp-content/uploads/2023/01/Build-a-Better-Texas.pdf.
Stump Speech Content:
“Houston Incorporated: Putting People First in Economic Development”
Friends, Houston is a city of limitless potential—but our approach to economic development is stuck in the past. For too long, we've watched tax breaks and incentives flow to high-end developers and luxury projects while our neighborhoods struggle to attract basic investments. I’m running for At-Large Councilmember because I believe Houston needs a bold new vehicle—one that puts equity, transparency, and accountability at the heart of our growth strategy. That’s why I’m proposing Houston Incorporated, a Local Government Corporation that will center community voices and deliver real results—not just ribbon cuttings for the few, but job creation, affordable housing, and thriving small businesses for the many.
Let’s be honest: the status quo isn’t working. The current system is broken—Tax Increment Reinvestment Zones and Chapter 380 agreements operate behind closed doors, with little to no oversight, enriching wealthy districts while shortchanging the communities that need investment most. Houstonians in underserved neighborhoods are footing the bill without seeing the benefits. Houston Inc. changes the game. It will work hand-in-hand with the Mayor’s Office of Economic Development, but with the independence and authority to implement a holistic strategy—one rooted in measurable impact and community benefit agreements. It’s time to stop subsidizing inequality and start building prosperity from the ground up.
As your next At-Large Councilmember, I’ll champion policies that hold developers accountable, give residents a real seat at the table, and shine a light on every dollar spent. With Houston Inc., we’ll create a public dashboard tracking where investments go and who they help. We’ll reform the appointment process for TIRZ boards so communities—not just insiders—have a say. And we’ll bring in federal and philanthropic partners to make Houston a national model for inclusive economic growth. This isn’t just policy—it’s a movement for a fairer Houston. Let’s build a city that works for all of us, not just the well-connected few. Join me.