Conroe council pauses $1,300 street‑closure fee, temporarily restores $35 rate pending revised tiered policy

Conroe’s city council temporarily rolled back a newly proposed $1,300 per‑block street‑closure fee and instructed staff to return in January with a tiered, transparent special‑event permit structure.

Business owners and event organizers told council the $1,300 per‑block, per‑day fee would be prohibitive for small downtown events and weekend markets. "That $1,300 is outrageous," one downtown organizer said during public comment, urging the council to revert to the prior rate of $35 until staff can present alternatives. A downtown small‑business owner and organizer said the city’s internal cost breakdown included tasks that departments already perform and that an across‑the‑board $1,300 charge was out of step with comparable cities.

Staff said the fee model attempted to capture the city’s true costs for barricades, staffing, police safety plans and post‑event cleanup, and offered options including deposits with refund on satisfactory cleanup, event‑specific pricing based on attendance and services required, or an averaged cost per typical event. Several councilmembers argued for a tiered or menu‑based system (attendance and service‑based), suggested refundable deposits, and asked for better data on vendor sales tax and the market’s economic impact.

During council briefing time later in the meeting, councilmembers returned to the issue after market organizers said scheduled weekend permits were endangered. The body voted to revert fees temporarily to the prior $35 rate for existing and new small recurring events until staff presents a revised ordinance and an application‑driven fee schedule no later than the second meeting in January 2026. Council asked staff to prepare options that include: a) a tiered price schedule tied to estimated attendance and services required; b) a refundable deposit option tied to cleanup standards; and c) grandfathering or rebate options for events already booked.

Councilmembers emphasized the need to balance fiscal responsibility with support for small businesses and downtown activation. "We can't continue to fully underwrite these events, but we need to encourage small entrepreneurial businesses," one councilmember said, urging transparency and a menu of priced services. Staff agreed to prepare a report and draft ordinance that will provide clear upfront pricing and application requirements.

Next steps: staff will return to council with a revised special‑event permit ordinance and fee schedule (tiered/menu approach), including an implementation and grandfathering plan, by the second council meeting in January 2026.