Grand Beach

Galveston Grand Beach Management District Formed Largest Management District Supported by City of Galveston

Galveston Grand Beach Management District has been approved by the State Legislature with support from the Galveston City Council. The District has been formed with a clear vision to make the East Beach a preferred livable, viable and sustainable neighborhood. The District will authorize development strategies and provide solutions for security, lighting, streetscape improvements, beach beautification; and road and sidewalk maintenance.

The Galveston Grand Beach Management District (House Bill #4053) was passed by state legislature on May 23, 2007. The creation of this management district was petitioned by Palisade Palms developer, Falcon Group; Intercontinental United Investors LP., Beachtown Galveston developer, East Beach Partners, Ltd. and SourceOne Capital Group. The newly-formed Grand Beach Management District will serve property owners within a 372 acre-radius with district boundaries on the east end of Galveston Island.

The District is also empowered with the legal venue to petition federal funds for certain capital improvements such as transportation. The services are funded by a nominal assessment levied by the District to the property owners within the district boundary.

"The Grand Management District will insure that the property remains in a first class condition and I would hope that other areas of Galveston could adopt the same concept," says Galveston City Manager, Steve LeBlanc. "We are becoming a true resort community and a management district is the right tool to preserve it in a high quality state."

"As developers we believe the formation of the Management District will help sustain property values and will create a better living environment on the East End," says Tofigh Shirazi, Beachtown's town founder.

"Nominal assessments will stay in the neighborhood and I don't envision property owners to be accessed more than 15 cents per $100 of the property value," says Richard Anderson, co-developer of Palisade Palms. "The cost component is meager, while the benefits will improve the quality of life and create a unified community."

In May 2001, The Falcon Group, developers for Palisade Palms condominium towers, initiated the process for a TIRZ (Tax Increment Reinvestment Zone), the first in Galveston in 10 years. TIRZ 11 was petitioned to revive a part of Galveston Island that had not seen any new development in 20 years, signaling a new era for East Beach. The TIRZ allowed the Falcon Group to proceed with infrastructure upgrades (including all utilities), extensive landscaping, and special paving with brick or cobblestone inlays, street lighting, and public beach access accommodations around the Palisade Palms property. Soon after, TIRZ 13, spearheaded by Beachtown, was approved.

Grand Beach Management District is the second management district supported by the City. The first was for the Harborside Drive Management District which encompasses John Sullivan, John Kelso and Ryan Marine properties among others along Harborside Drive. Grand Beach Management is the largest and most cosmopolitan of the two districts in Galveston.

"The Grand Beach Management District represents the vision and forward thinking management style which has become synonymous with Mr. Tauch, Mr. Anderson and Mr. Shirazi and their commitment to Galveston's future, "says Jeff Sjostrom, president of the Galveston Economic Development Partnership. "This District represents a commitment to the future integrity and class of the Palisade Palms and Beachtown developments."

Palisade Palms is the 32-acre site at 801 East Beach Drive that has created two 27-story towers that feature 288 condominium units which opened Spring 2008. Palisade Palms is the first "on-the-beach" condominium project to be developed in more than 20 years on Galveston's East Beach. Its extensive list of club-class amenities includes family and kids' pool areas, a beach-style Luau fire pit, the Beachcomber kids' club and a state-of-the-art fitness center.