Galveston board grants 9-month extension for Cotton Exchange renovation permit

The Building Board of Adjustments and Appeals on Feb. 4 granted a nine-month extension to a lapsed permit for renovation of the Cotton Exchange building in downtown Galveston, allowing work to resume while the project completes outstanding steps toward final approval.

The project representative, David Watt, asked the board to extend a commercial permit (Permit 202011-0179) that was issued Jan. 11, 2022, and which staff says expired Jan. 11, 2024. City staff told the board the City of Galveston Code (chapter 10, section 10-5) sets a 24-month expiration for permits with a possible six-month administrative extension; beyond that, the board may grant additional time.

The extension request followed months of delays Watt said were caused by historic-preservation reviews, long lead times for equipment and materials, and a multi-month utility issue. “The elevator in the building took 57 weeks from the day it's ordered,” Watt said, describing one example of supply-chain delay. He said window approvals with federal and state historic agencies sometimes took more than six months, and that a CenterPoint Energy review and coordination delayed permanent power for about four months, preventing some final installations.

Staff and board members discussed the intent of the two-year limit, describing it as a tool to prevent long-dormant, hazardous, or piecemeal construction from lingering without active prosecution. Janice Norman, floodplain administrator and backflow inspector for the City of Galveston, told commissioners the development services department must enforce the ordinance as written and that the board is a quasi-judicial body whose decisions are final unless appealed to a court.

Watt asked for six months but said nine months would avoid having to return if subcontractor schedules required additional time; the board clarified that any extension period would run from the date it is granted rather than retroactively from the permit expiration. After public discussion and questions about neighborhood impacts and project status, a commissioner moved to grant the variance and specify the time frame; the motion was seconded and the board voted unanimously to extend the permit by nine months.

Board members noted the site appears cleaned and that much of the interior work is near completion: floors, cabinets, countertops, HVAC equipment and finishes were described as installed, with final inspections and permanent power still required to obtain certificates of occupancy. The board and staff also discussed whether the city’s permitting software (Acela) tracks permit expirations automatically; both applicant and other builders said the system does not reliably surface the two-year deadline without manual checks.

The extension carries any fees that the ordinance prescribes for time beyond administrative extensions; the applicant accepted the fee structure as needed. The board directed staff to prepare the written order reflecting the nine-month extension and to provide the applicant with next steps for scheduling inspections.

The motion passed by unanimous voice vote.