GALVESTON — A federal judge dealt a setback to environmentalists Thursday in a ruling that allows the U.S. Army Corps of Engineers to continue issuing building permits on Galveston Island without considering the cumulative effect on the environment.

The ruling was the second blow for environmentalists, following a decision by the city of Galveston to shelve a geological hazard map intended to guide the regulation of construction in areas subject to erosion, storm damage and sea-level rise.
U.S. District Judge Samuel Kent lifted a 2004 injunction on a wetlands permit that had caused the corps to withhold all permits for construction in wetlands on the island until the case was resolved.

The corps and developer Blackard Pirates Galveston Development LP had asked Kent to lift the injunction, but environmentalists had hoped he would order the corps to assess total damage to the environment by development on the island.
Kent's decision was welcomed by developers whose permits have been delayed.

Bruce Reinhart, owner of the Kahala development, said his project could have been delayed another 18 months if the judge had ruled for the plaintiffs.

Monitoring permits
The lifting of the injunction means that the corps can continue to issue permits for development in environmentally sensitive wetlands without taking into consideration the total effect of all development on the environment.

The issue is key for environmentalists, who fear that the limited amount of land on the island is being overdeveloped without concern for fragile wetlands and habitat for wildlife.
The decision "underscores that we as environmentalists can't simply rely on the corps permitting process," said Bob Stokes, president of the Galveston Bay Foundation.

The foundation was not a party to the lawsuit but closely monitors the corps permits process and backed the plaintiffs.
Stokes called the decision a setback but said, "I don't see it as a long-term loss."

Kent surprised attorneys for both sides by cutting short arguments that had been scheduled to take more than a day and issuing a decision after about an hour.
The judge said streets already had been paved and a channel dug for a marina on the property in dispute. He said he had no authority to order the developer to rip out the improvements.
Surprise outcome

Kent did not address the disputed issue of whether he has the authority to force the corps to conduct an environmental impact statement.

"We are all sort of a little stunned at the moment," said Jim Blackburn, attorney for Lafitte's Cove at Pirates' Beach Nature Society, which sought the injunction.
Anthony Buzbee, attorney for Blackard, said, "I was pleasantly surprised."

The controversy centers on the corps jurisdiction over wetlands and canals dug into the island.
Critics say the corps has handed out permits to build in the wetlands with inadequate consideration for the environment.
"The corps seems to want to rubber-stamp every development that comes through," said Scott Weaver, board member of the Nature Society.

"There is also the fact that the Corps of Engineers is ignoring the cumulative impact of all this development on the island," Weaver said.

The Nature Society sued in 2004 because the Corps issued a permit enabling Blackard to build 29 homes and a marina on a lot that was being used to deposit material dredged from existing canals.

The disappointment for environmentalists follows a decision by the city to decline to use a $50,000 geological hazard map as a basis for regulations.
The decision was made in a report to the City Council by City Manager Steve LeBlanc.

Mayor Lyda Ann Thomas, however, said discussion on the geohazard map would be reopened at the next council meeting in two weeks.

"The recommendation of the city staff is to utilize the information from the geohazard study as an informal tool and guide rather than formal adoption of the geohazard study by the city council,"

HIGH ISLAND — A Dallas real-estate firm has purchased almost 2,800 acres of raw ranch land on Bolivar Peninsula, snapping up one of the largest remaining beachfront properties on Texas' coast.

Provident Realty Advisors, in partnership with The PLN Cos., purchased the land, where cows still graze on a site known as the Cade Ranch.

The seller was Crown Team Texas, a development firm that has, through affiliate companies, invested about $30 million in the past four years acquiring and developing peninsula land and infrastructure.

Neither Provident, nor Crown Team Texas, would divulge the purchase price of the tract, which includes 13,000 feet of waterfront.

The acquisition marks Provident's first foray into barrier island real estate, said Jay Hawes, development partner for the firm. Provident has no immediate plans for the land, he said.

But the booming Bolivar Peninsula, averaging about 90 building permits a year, is an attractive investment at a time when large tracts of beachfront property are disappearing, Hawes said.

Only about 6.5 percent of Texas' coastal property remains, said John Endendyk, who with Bruce Endendyk of CB Richard Ellis' Land Services Group represented Crown Team Texas in the sale.

Most of the coastal land is being developed or reserved as federal and state parks.

The Cade Ranch is northwest of the intersection of state Highways 24 and 87 near High Island. In 1879, C. T. Cade made headlines for moving the largest herd on record — 23,000 head — across the Neches River. Cade, according to online reports citing The Daily News, was known for his yearly cattle drives from High Island to his ranch in Iberville Parish, La.

Jim Hayes, a principal in Crown Team Texas, purchased the ranch several years ago from the Cade family.

Until the sale to Provident, Hayes and partners owned almost 8,000 acres. Hayes is behind several luxury residential projects on the peninsula. Allco, an affiliate of Crown Team Texas, has spent $3 million so far to develop a sewer treatment plant to accommodate residential development. Peninsula residents rely on septic tanks.

Provident's acquisition marks the second time in as many years that an investment group has purchased such a sizable chunk of ranch land in Galveston County.

Last year, Chicago real estate firm Marquette Land Investments paid almost $33 million for 1,050 acres that was long a part of Chapoton Ranch on the island's West End.

Cows also graze on the Chapoton property, where development of a large resort-style project is generating controversy among environmentalists who fear the scope of the project would hurt a sensitive ecosystem. Some locals also say it would generate too much traffic.

Baby boomers and retirees are fueling beach front development, Endendyk said.

Texas land prices still are cheap enough to keep the costs of condominiums and homes reasonable, he said.

“Prices are achievable to the average consumer,” Endendyk said.

El Cortez Villas turns into Melrose Place. by Laura Elders

GALVESTON — Checkup: A California-based developer is transforming the island's former medical professional building at 906 22nd St. into 11 mid-priced condominiums.

Stemmer Development is converting the 83-year-old building into what it refers to as a “California-style residential compound” called El Cortez Villas. Raymond Rapp designed the building in 1924, according to “Galveston Architecture Guidebook,” authored by Ellen Beasley and Stephen Fox. The Spanish Mediterranean-style stucco-faced building is crowned with scalloped Mission-style parapets.

Developers say that, during early construction on El Cortez Villas, crews unearthed medical invoices dating back to the 1940s, when inoculations for children cost 99 cents and office visits were $1.50.

Prices for the condominiums start at $148,000.

The developers say El Cortez Villas is a “dead-ringer” for the apartment complex featured in the 1990s hit TV show “Melrose Place.” El Cortez Villas includes security access, a swimming pool and one garage per unit. The complex will be ready for move-in by next month.