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Partner groups say Bethune Empowerment Center redevelopment stalled; contract nearing expiration
Summary
Houston Business Development Inc. and partners told the committee that an adaptive-reuse project at the former Bethune middle school is stalled by permitting and payment disputes; a contract covering phase 2 is scheduled to expire June 30 and project leaders asked the city to resolve outstanding contractor invoices and release funds.
Representatives for Houston Business Development Inc. (HBDI) told the committee the Bethune Empowerment Center adaptive-reuse project has reached an impasse and urged the city to act before a contract expires at the end of June.
Marlon Mitchell described a multi-phase redevelopment of a 75,000-square-foot former Aldine ISD middle school into the Bethune Empowerment Center. Phase 1 (about 30,000 square feet) converted classrooms into coworking, administrative and community event space and HBDI reported $5.3 million disbursed for that phase. Phase 2 includes a Lone Star College electrical vehicle battery training facility (about 19,000 square feet), additional classrooms and early-childhood development space; HBDI told the committee it is roughly 40% complete but had to wait nearly eight months to obtain a building permit submitted in July 2024 and released April 22, 2025.
Mitchell said HBDI negotiated a third amendment for renovation, operation and management that has not been submitted to council and that legal staff told HBDI the city would not proceed until outstanding contractor invoices were resolved. HBDI said about $250,000 in private-donor funds (Greater Houston Community Foundation and private contributors) is owed to the organization and that private donors include CenterPoint Energy, HEB, AT&T, Reliant, Bank of America and Westlake Chemical. HBDI also said the project had CPF and CDBG support (including $2,000,000 CPF earmarked through Congresswoman Sheila Jackson Lee and $1,500,000 in CDBG public-service funds).
Committee members requested a timeline and asked HCDD to brief the committee and the vice chair on outstanding contract and payment issues; members expressed concern about delays given the June 30 contract expiration and asked for coordination among HCDD, City Legal and department staff. HBDI asked the committee to help move the third amendment forward so the project can complete phase 2 construction and training operations.
