**3.1 The woodlands**

The Woodlands is located in the extraterritorial jurisdiction of Houston within Montgomery County in Texas. The Woodlands was built in a partnership between Mitchell Energy & Development Corporation and the US Department of Housing and Urban Development (HUD). It was one of the thirteen Title VII new towns developments that received federal loan guarantees in the early 1970s. In the early 1960's George Mitchell, wildcatter, oil and real estate entrepreneur, got the idea of a master planned community that would include as many jobs as homes. He thought that the new community might be near a major city benefit from transport and have ample land for future growth. In 1964 they purchase the first land in Montgomery County but it was on September of 1972 when the construction of The Woodlands began. When opened, The Woodlands consisted of a few families living in Settlers Corner, a conference center and country club, the Information Center, The Warf shopping area, 19 model homes, 50 apartments, three office buildings and several recreational amenities. The principal activities of the Mitchell Energy and Development Corporation5 are the exploration for and production of natural gas, natural gas liquids, crude oil and condensate, operation of natural gas gathering systems and marketing of natural gas through purchase and resale activities. The Company owns or operates approximately 9,100 miles of natural gas gathering systems which are located in Texas. Gas services accounted for 68% of 2000 revenues and exploration and production, 32%. After 1955 the firm began to diversify into real estate. When George Mitchell became president, he formed Mitchell Development of the Southwest; in 1971 the business was renamed Mitchell Energy and Development Corporation. In 1974 the firm opened the Woodlands, as we have

 5 A major independent producer.

Two Ways of New Towns Development: A Tale of Two Cities 229

The Woodlands Commercial Owners Association (WCOA)

> The Woodlands Association (TWA)

COMMUNITY ASSOCIATIONS OF THE WOODLANDS

(WCSC)

The Community Associations of The Woodlands, is a private, not-for-profit corporation, created in 1992. The company delivers staff services to The Woodlands Community Association, Inc., The Woodlands Association, Inc. and The Woodlands Commercial Owners Association, Inc. It is one of the largest private, non-profit governments in the US. On the associations' behalf, The Community Associations of The Woodlands provides, or contracts for others to provide, services including police and fire protection, garbage and recycling collection, parks and pathway maintenance, streetscape maintenance, covenant enforcement and recreation programming for existing and future community associations in The Woodlands. These organizations contract with The Woodlands Community Service

As we have said residents become members of a community association once they purchase a property in The Woodlands. Almost all residential and commercial property owners and residents in The Woodlands are members of one of these associations. Those associations are



8 The Covenants allow the board to be made up of a combination of community-elected individuals and

individuals appointed by The Woodlands Operating Company, L.P.

Fig. 2. Community Associations of The Woodlands

Corp. (WCSC) for staff services.

The Woodlands

(WCA)

Community Association

(Figure 2):

issues.

said a 25,000-acre planned community twenty-seven miles north of downtown Houston, built under a federal incentive program to encourage urban developments.

The Woodlands is located within the extraterritorial jurisdiction of Houston, Texas and has a population equal to the 33rd largest city in Texas (more than 85.000 inhabitants).

As an unincorporated area6 it operates independently of city government. Approximately 3.000 acres extend into unincorporated Harris County, 160 acres are located inside the corporate limits of the city of Shenandoah, and some 375 acres are located in the city of Conroe (see map 1). Several villages comprise the Woodlands. Each is its own small town, with shopping centers, community organizations, schools, recreational facilities and healthcare. The villages are East Shore, Town Center (primarily a commercial development), Sterling Ridge, Carlton Woods (a gated community), Creekside Park, Alden Bridge, Cochran's Crossing, Indian Springs, College Park, Panther Creek and Grogan's Mill (see map 2).

Initially, it was considered as a "residential community" (Cervero, 1995) but with 46 per cent of its population employed within the Woodlands, it must now be considered an "independent" new town.

The Woodlands master plan was based on three basic goals (Levisohn, 1985): The first one was to build a community where people would pay ultimate respect to the land and living things from the start (ecological balance), where people could live with the greatest freedom (Human development) and achieve a reasonable return on investment (Economic profitability). The Woodlands philosophy was based on:


Economically, The Woodlands was the most successful new town of its generation. What started as a planned residential community has been transformed into an incipient city with enough economic development to participate in and influence regional planning and policy.

For the first ten years the developer controlled the community, and the Woodlands Community Association (WCA) was the sole venue for resident involvement, but in August 1992, two more associations were created. Now three associations, described in figure 1, make up the governance structure (table 3) of The Woodlands. These associations are nonprofit corporations managed by board of directors, and they provide public services to residents and property owners.

Individuals who acquire a property in The Woodlands become members of either the WCA or TWA for as long as they hold title. Similarly, commercial owners belong to WCOA. Volunteers make up the boards of directors of the three associations. The Woodlands Community Service Corporation (WCSC), known also as the Community Associations of The Woodlands, performs administrative, managerial and operational services required by the three associations. The associations are structured to serve citizens. Each year residents and property owners in each village elect members to their respective association's board of directors. Associations are funded from assessments and borrowing7.

 6 A region of land is unincorporated if it is not a part of any municipality.

<sup>7</sup> Some from federal and state grants.

said a 25,000-acre planned community twenty-seven miles north of downtown Houston,

The Woodlands is located within the extraterritorial jurisdiction of Houston, Texas and has a

As an unincorporated area6 it operates independently of city government. Approximately 3.000 acres extend into unincorporated Harris County, 160 acres are located inside the corporate limits of the city of Shenandoah, and some 375 acres are located in the city of Conroe (see map 1). Several villages comprise the Woodlands. Each is its own small town, with shopping centers, community organizations, schools, recreational facilities and healthcare. The villages are East Shore, Town Center (primarily a commercial development), Sterling Ridge, Carlton Woods (a gated community), Creekside Park, Alden Bridge, Cochran's Crossing,

Initially, it was considered as a "residential community" (Cervero, 1995) but with 46 per cent of its population employed within the Woodlands, it must now be considered an

The Woodlands master plan was based on three basic goals (Levisohn, 1985): The first one was to build a community where people would pay ultimate respect to the land and living things from the start (ecological balance), where people could live with the greatest freedom (Human development) and achieve a reasonable return on investment (Economic

Economically, The Woodlands was the most successful new town of its generation. What started as a planned residential community has been transformed into an incipient city with enough economic development to participate in and influence regional planning and policy. For the first ten years the developer controlled the community, and the Woodlands Community Association (WCA) was the sole venue for resident involvement, but in August 1992, two more associations were created. Now three associations, described in figure 1, make up the governance structure (table 3) of The Woodlands. These associations are nonprofit corporations managed by board of directors, and they provide public services to

Individuals who acquire a property in The Woodlands become members of either the WCA or TWA for as long as they hold title. Similarly, commercial owners belong to WCOA. Volunteers make up the boards of directors of the three associations. The Woodlands Community Service Corporation (WCSC), known also as the Community Associations of The Woodlands, performs administrative, managerial and operational services required by the three associations. The associations are structured to serve citizens. Each year residents and property owners in each village elect members to their respective association's board of

directors. Associations are funded from assessments and borrowing7.

6 A region of land is unincorporated if it is not a part of any municipality.

built under a federal incentive program to encourage urban developments.

Indian Springs, College Park, Panther Creek and Grogan's Mill (see map 2).

profitability). The Woodlands philosophy was based on:

2. Environmentally sensitive development 3. Economic, social and racial integration

"independent" new town.

1. Good land use planning

residents and property owners.

7 Some from federal and state grants.

population equal to the 33rd largest city in Texas (more than 85.000 inhabitants).

Fig. 2. Community Associations of The Woodlands

The Community Associations of The Woodlands, is a private, not-for-profit corporation, created in 1992. The company delivers staff services to The Woodlands Community Association, Inc., The Woodlands Association, Inc. and The Woodlands Commercial Owners Association, Inc. It is one of the largest private, non-profit governments in the US.

On the associations' behalf, The Community Associations of The Woodlands provides, or contracts for others to provide, services including police and fire protection, garbage and recycling collection, parks and pathway maintenance, streetscape maintenance, covenant enforcement and recreation programming for existing and future community associations in The Woodlands. These organizations contract with The Woodlands Community Service Corp. (WCSC) for staff services.

As we have said residents become members of a community association once they purchase a property in The Woodlands. Almost all residential and commercial property owners and residents in The Woodlands are members of one of these associations. Those associations are (Figure 2):


 8 The Covenants allow the board to be made up of a combination of community-elected individuals and individuals appointed by The Woodlands Operating Company, L.P.

Two Ways of New Towns Development: A Tale of Two Cities 231

Watch program

Recreation

 Economic development Business stimulation Visitor services

 Streetscape maintenance Traffic management

Economic development

improvements

**Montgomery County** Law enforcement and criminal justice services Social services11

Library service

Mosquito control

Wholesale water supply

Stormwater detention operations

Courts

11 They only make small monetary contributions to agencies that provided these services.

Traffic management

 Supplemental law enforcement funding and services in Town Center and related area

Covenant/Deed restriction enforcement

Transportation management & Planning

Wastewater and drainage services

Road and bridge maintenance

County Hospital district12)

Finances and constructs major thoroughfare

Emergency medical services (Montgomery

Roadside drainage channel maintenance

Wastewater collection and treatment services

Street/Right –of-way construction/Maintenance

Building Plan Review/Building permits (limited)

 Emergency medical services Park and recreation services Deed restriction enforcement Solid waste collection and recycling Neighbourhood environmental

**Agent Provider Service** 

**Town Center Improvement** 

**District (TCID)** 

**The Woodlands** 

**(TWDC)** 

**Development Company** 

**The Woodlands Road Utility District (RUD)** 

**San Jacinto River Authority13**

Table 1. Public Services' providers

13 They sell to MUDs all that services.

12 Separate from Montgomery County Government.

10 Municipal Utility Districts.

**Public Twelve MUD10** Retail water

**Private Community Associations** Fire protection

Springs (west of Falconwing Drive) and the neighborhood of Harper's Landing in the village of College Park. It has a ten-member board, four elected by the owners and residents of the villages and six appointed by the development company.


Villages in the Woodlands also elect representatives to their respective village Associations. These village associations are unofficial and have non-specified responsibilities, they act as civic clubs organizing different events and serving as intermediaries between village citizens and the associations (TWA and WCA).

Most public services are provided by private agents through community and neighbourhood associations, but there are a few services that are provided by public agents such as Municipal Utility Districts (MUD), the Montgomery County and San Jacinto River Authority as we can see in table 1. Each of these entities operates independently although they maintain a system of coordination. Services are provided by municipalities only in those portions of The Woodlands within the corporate limits of Shenandoah and Conroe (approximately 5% of the land). The Environmental Services Department monitors the contract with Waste Management of Texas, Inc., a private waste company, to provide an integrated residential solid waste management system for The Woodlands.

Only three out of seven of the public goods providers' are public agencies, those are MUDs, Montgomery County and San Jacinto. The Woodlands Development Company (TWDC) also takes responsibility for constructing much of the initial infrastructure and cost-shares in the development of new parks and amenities in areas currently under development. In that case, public and private sectors complement each other in providing services to the public.

There are also associations and Residential Design Review Committees (RDRC) for each village that promote village events, maintain the integrity of homes and neighbourhoods, and assist in the coordination of community governance. They also evaluate violations of established standards and seek constructive resolutions of these matters. The committee may review all changes and improvements in a property. Each one has 3 to 5 members9 elected by residents and owners of the village for a one-year period.

Funding

The funds necessary to provide these services come from assessments charged to residents based on the area in which they live and the value of their home.

Almost all property owners in The Woodlands are subject to The Woodlands Covenants and pay annual assessments to support the community services provided by their association. This assessment fee is mandatory and each community association board of directors sets the assessment rate during the annual budget approval process.

<sup>9</sup> Those members do not receive any compensation for this position.


Villages in the Woodlands also elect representatives to their respective village Associations. These village associations are unofficial and have non-specified responsibilities, they act as civic clubs organizing different events and serving as intermediaries between village

Most public services are provided by private agents through community and neighbourhood associations, but there are a few services that are provided by public agents such as Municipal Utility Districts (MUD), the Montgomery County and San Jacinto River Authority as we can see in table 1. Each of these entities operates independently although they maintain a system of coordination. Services are provided by municipalities only in those portions of The Woodlands within the corporate limits of Shenandoah and Conroe (approximately 5% of the land). The Environmental Services Department monitors the contract with Waste Management of Texas, Inc., a private waste company, to provide an

Only three out of seven of the public goods providers' are public agencies, those are MUDs, Montgomery County and San Jacinto. The Woodlands Development Company (TWDC) also takes responsibility for constructing much of the initial infrastructure and cost-shares in the development of new parks and amenities in areas currently under development. In that case, public and private sectors complement each other in providing

There are also associations and Residential Design Review Committees (RDRC) for each village that promote village events, maintain the integrity of homes and neighbourhoods, and assist in the coordination of community governance. They also evaluate violations of established standards and seek constructive resolutions of these matters. The committee may review all changes and improvements in a property. Each one has 3 to 5 members9

The funds necessary to provide these services come from assessments charged to residents

Almost all property owners in The Woodlands are subject to The Woodlands Covenants and pay annual assessments to support the community services provided by their association. This assessment fee is mandatory and each community association board of directors sets

integrated residential solid waste management system for The Woodlands.

elected by residents and owners of the village for a one-year period.

based on the area in which they live and the value of their home.

the assessment rate during the annual budget approval process.

9 Those members do not receive any compensation for this position.

residents of the villages and six appointed by the development company.

approximately 46 per cent of employed residents.

citizens and the associations (TWA and WCA).

services to the public.

Funding

Springs (west of Falconwing Drive) and the neighborhood of Harper's Landing in the village of College Park. It has a ten-member board, four elected by the owners and


Table 1. Public Services' providers

<sup>10</sup> Municipal Utility Districts.

<sup>11</sup> They only make small monetary contributions to agencies that provided these services.

<sup>12</sup> Separate from Montgomery County Government.

<sup>13</sup> They sell to MUDs all that services.

Two Ways of New Towns Development: A Tale of Two Cities 233

Woodlands Fire Department Park operation, Aquatics and… Capital Expenditures

Financing Property taxes Sales & Hotel

Elected Commissioners Court & administra-tive staff

Street maintenance, Public health, Animal control, Library, Drainage, Facility maintenance and other basic County services

Table 3. Current Governance structure

14 Town Center Improvement District.

15 Municipal Utility District. 16 Joint Powers Agency.

Services Law Enforcement,

Management

Environmental services and Solid… Finance and Administration Streetscape maintenance Covenant Administration

Additions to Capital reserve

Law enforcement services Neighbourhood services Community relations Other expenses Other allocated Costs

Debt Service

Source: Self elaborated from data of The Woodlands Community Association, Inc.

occupancy taxes

Elected/appoi nted TCID Board & administrative

staff

Economic Development Program, Infrastructure Debt financing & Enhanced Law Enforcement

County TCID14 MUD15s Associations

Property taxes & water & sewer fees

Elected/app ointed MUD directors & administrati ve staff of the JPA16

Water, Sewer and Drainage services

Fig. 4. Uses of Funds, Community Associations 2006 (%)

Streetlights

0 10 20 30 40

WCOA TWA WCA

13 Elected/a ppointed WCA directors

Assessments and Fees

10 Elected/app ointed TWA directors

Directors and administrative staff of the Community Associations of The Woodlands

Fire protection, park operations, aquatics and recreation, environmental services and residential trash and recycling, streetscape maintenance, covenant administration and streetlighting

5 Elected/app ointed WCOA directors

The annual assessment fees are based on the property's assessed value determined by the Montgomery County Central Appraisal District, which is responsible for determining the value of all property in the county. If the property assessment does not yet reflect the value of a completed building, the association will estimate a value for the property as of September 1 for assessment purposes. The assessed value of the property is noted on the annual assessment statement, mailed in late November each year. Assessment fees are levied on all residential and commercial properties in The Woodlands on which covenants have been imposed. The fee is calculated using the assessed value of the property and the annual assessment rate approved by the board. Payment of the annual assessment fee is the property owner's responsibility.

Table 2 shows the assessments that citizens pay to the association to which they belong.


Table 2. Assessment Rate by Associations, 2006 (per \$100 property valuation).

Source: Self elaborated from data of The Woodlands Community Association, Inc.

Fig. 3. Total of Funds by Association, 2006 (%)

As we can see in figure 2 WCA and TWA get the 93 per cent of the total fund and only a 7 per cent is for the Commercial Association. This is to be expected, because there are more neighbours than shops or firms.

The Woodlands Fire Department is funded through the associations from property assessments and, in part, by the Town Center Improvement District. Community Associations of The Woodlands (CATW) provides municipal-type services that are funded through annual assessments paid by property owners.

The annual assessment fees are based on the property's assessed value determined by the Montgomery County Central Appraisal District, which is responsible for determining the value of all property in the county. If the property assessment does not yet reflect the value of a completed building, the association will estimate a value for the property as of September 1 for assessment purposes. The assessed value of the property is noted on the annual assessment statement, mailed in late November each year. Assessment fees are levied on all residential and commercial properties in The Woodlands on which covenants have been imposed. The fee is calculated using the assessed value of the property and the annual assessment rate approved by the board. Payment of the annual assessment fee is the

Table 2 shows the assessments that citizens pay to the association to which they belong.

Assessment Rate \$0,455 \$0,49 \$0,39

Table 2. Assessment Rate by Associations, 2006 (per \$100 property valuation).

7%

Source: Self elaborated from data of The Woodlands Community Association, Inc.

As we can see in figure 2 WCA and TWA get the 93 per cent of the total fund and only a 7 per cent is for the Commercial Association. This is to be expected, because there are more

The Woodlands Fire Department is funded through the associations from property assessments and, in part, by the Town Center Improvement District. Community Associations of The Woodlands (CATW) provides municipal-type services that are funded

WCA TWA WCOA

49%

WCA TWA WCOA

property owner's responsibility.

44%

Fig. 3. Total of Funds by Association, 2006 (%)

through annual assessments paid by property owners.

neighbours than shops or firms.

Source: Self elaborated from data of The Woodlands Community Association, Inc.



Table 3. Current Governance structure

<sup>14</sup> Town Center Improvement District.

<sup>15</sup> Municipal Utility District.

<sup>16</sup> Joint Powers Agency.

Two Ways of New Towns Development: A Tale of Two Cities 235

Tres Cantos is located in the Autonomous Community of Madrid, 22 km north of the capital city Madrid and was born as a New Town from a political decision. It is not a traditional city because it was not developed from geographic, historic or any other way that normally develops a Spanish city. It was a political-administrative decision that developed this city. It is not a dormitory town because actually residents work and live in the city and receive workers from villages that are close to it. As we have said Tres Cantos was born under the law called "Decreto-Ley" of June 27th of 1970 that regulated what it was called as Urgent Urbanity Action. They initiated the project in 1971, it was supposed to be constructed 36000 homes with an industrial area and all the services that a city will need. They decide to establish Tres Cantos on rural land ceded by the city of Colmenar Viejo. Residential occupation began from 1982 and in 1991; it was incorporated as a separate municipality, the

They choose this location because it was close to Madrid (map 3) and the land was flat and inexpensive. They created a public firm (with central administration funds) that following

In 1971 Housing Department, pass the demarcation of the urban actuation Area of Tres Cantos. It has an area of 1.691 Has. that belong to two municipalities Colmenar Viejo (1.381 Has.) and Madrid (310 Has.). It has an exceptional situation as we have said is too closed to

In order to manage ACTUR they created in 1976 a public firm called "Tres Cantos S.A (TCSA)". It has the financial participation of National Institute of Development (INUR18) (57,6 per cent), Regional Council of Madrid (22,4 per cent) and Saving Bank of Madrid (20 per cent). In 1991 the funding becomes public and funding belongs to Housing Institute of Madrid (84,4 per cent) and to Autonomous community of Madrid (15,6 per cent). TCSA is a unique experience in Spain because combine public functions as it is was a Town Hall and

When they start to build houses as it not was private initiative, central administration decide to build houses through cooperatives and between 1978 and 1985, they built 4.842 houses. In

In 1986 began the second period of house building, at this period there is a mix of construction between cooperatives (1.964 houses) and private firms (2.984 houses). In ten years, Tres Cantos increased its population to 22.000 inhabitants and actually (2011) it has 41.343 inhabitants.

During the first period neighbours create associations to solve different problems that appear or to demand services that they start to need as transportation, schools or health centres. However, the biggest problem during this initial period was the administrative dependence of Colmenar Viejo Town Hall. Since 1987, neighbours had political representations at Colmenar Viejo administration. Those representatives had obtained the approval of Tres Cantos segregation of Colmenar Viejo. In March of 1991, Tres Cantos become an independent municipality. It is the number 179 municipality of the Autonomous Community of Madrid. Two months later, they celebrated the first local elections and it won one political party created by neighbours called Tres Cantos United ("Tres Cantos Unido",

TCU). Since now there have been other political parties running the Town Hall.

the English and French experience build and manage the city.

Madrid and it has a natural environment (map 4).

private selling land or building social equipment.

1982, Tres Cantos has 50 inhabitants.

18 Instituto Nacional de Urbanización.

newest in all Spain.

Services funded by assessment dollars include also emergency medical service, additional sheriff's deputies, residential design review and covenant enforcement, The Woodlands Watch Programs, streetscape maintenance, streetlights, residential trash removal and recycling, recreational programs, and environmental and recycling education. Communitywide facilities provided and maintained by the associations' assessment funds are: parks, swimming pools, athletic fields and courts, pathways, Lake Woodlands, a recreation center and recreational vehicle storage.
