A commentary by Dennis Spellman, Covering Katy Publisher
CITY OF KATY, Texas (Covering Katy News) — Recent online discussions arguing against allowing more churches in downtown Katy and removing their tax-exempt status have sparked debate about how best to support the area moving forward, but the analysis of religious institutions and their role in Historic Katy reveals a fundamental misunderstanding of the challenges downtown actually faces.
For years, I've quietly analyzed strategies to make downtown Katy so appealing that visitors come organically, not just for festivals, so that neither businesses nor the city would have to host festivals to accomplish that purpose. Instead, it would happen naturally. With current discussions focusing on counterproductive approaches, now is the appropriate time to propose a constructive path forward.
Since my first visit to downtown nearly two decades ago, I recognized its wonderful and unique charm that can't be replicated anywhere else in our area. These five key steps can transform downtown into a primary destination reaching its full potential.
Step 1: Protect Foot Traffic Generators
Downtown Katy's fundamental challenge isn't tax revenue — it's visibility and foot traffic. Tucked away from major thoroughfares like Grand Parkway and Interstate 10, the downtown area lacks the natural drive-by exposure that shopping centers near those corridors enjoy.
Churches provide exactly what downtown needs most: consistent foot traffic. Sunday services, midweek evening activities and community events bring hundreds of people into the downtown area each week — people who might otherwise have no reason to venture off the main commercial corridors.
Beyond foot traffic, churches provide essential community services that would otherwise fall to government programs or go unmet entirely. Food pantries, emergency assistance, counseling services and youth mentoring represent millions of dollars in community value that never appears on a tax revenue spreadsheet.
The city should also help one of the biggest foot traffic generators, No Label Brewing Company, by obtaining the right-of-way for First Street and completing the street. The city should explore whether the landowner would consider donating the right-of-way with the right incentives from the city, such as infrastructure improvements. Adding a properly constructed parking lot would enhance their property value.
Step 2: Establish Dedicated Funding Through TIRZ Expansion
The conversation shouldn't be about blocking churches to preserve tax revenue. It should be about identifying dedicated revenue sources that can fund the revitalization of Old Katy — including the Rice Dryer District, officially named the Entertainment District.
A Tax Increment Reinvestment Zone, or TIRZ, is a tool used by local governments to finance public improvements and encourage development in specific areas by capturing future property tax growth within that zone to pay for projects like roads, utilities and parks, without raising overall tax rates.
Fort Bend County, working with city and school district leaders in the 1990s, created the Katy Mills Mall TIRZ. The TIRZ has been expanded before to add businesses like Buc-ee's, and it could be expanded again to include portions of Highway 90, the Rice Dryer District and Historic Downtown.
Given that downtown is split between two counties, Harris County would have to join the TIRZ. This is allowable according to the Fort Bend County Auditor's Office, which also confirms that the TIRZ rebates nearly $1 million to Katy annually. The County also rebates an additional $1 million of property taxes annually. Those funds come from property taxes paid by the Mall and surrounding commercial properties that are part of the TIRZ.
Step 3: Preserve and Improve the Rice Dryer District
The rice dryers are downtown Katy's front door. TIRZ or other funding could support infrastructure improvements, streetscapes, facade improvements and low-interest loans for businesses willing to improve their properties.
Andrew Nurcahya, owner of the Cardiff Rice Dryer, recently painted his historic structure. The transformation shows exactly what proper maintenance can do for Katy's front door. Nurcahya self-funded his project. The Cardiff Dryer now stands out to people who drive along Highway 90. Additional improvements would make people more interested in exploring what's north of the railroad tracks.
Covering Katy News
The Cardiff Rice Dryer with a fresh coat of paint. Photo taken in Dec. 2025.
Step 4: Streamline the Permitting Process
Multiple business owners and developers have complained for years that the city's permitting process is cumbersome, unpredictable and antiquated. When property owners seeking to improve their businesses can't estimate completion timelines or total costs due to shifting requirements and permit delays, they simply won't take the risk.
The city needs to eliminate unpredictable timelines and shifting requirements that prevent property owners from investing in improvements.
Step 5: Embrace Marketing Katy's Historic Authenticity
The City of Katy has always run away from the term "Old Katy," preferring to be called "Historic Katy." It's time to embrace "Old Katy" — if for no other reason than it rolls off the tongue with ease.
People say "Old Katy" because it's natural, authentic and memorable. Old Town Spring embraced this terminology and built a thriving destination around its historic authenticity.
Downtown Katy is the only authentic downtown in the Katy area. While developments like LaCenterra at Cinco Ranch created a wonderful replica downtown atmosphere that is enjoyable to visit, the City of Katy possesses the only genuine downtown with unique historic character, authenticity and deep community roots that cannot be duplicated in a planned shopping development.
Why Claims of Limited Space Are Wrong
Recent discussions claim that downtown Katy is small and land there is limited. The truth reveals the opposite. Downtown has been expanding into neighboring streets for at least the past decade. Numerous houses are now being used for commercial purposes, and this type of expansion into adjacent residential areas is happening in successful downtowns across Texas.
Visit thriving small downtowns like Old Town Spring, Waco's Magnolia Silos district and Celina in Texas, or even Freeport, Maine — where McDonald's operates within a historic house rather than a standard franchise building. These destinations succeed precisely because they leverage their historic buildings and neighborhood charm to create unique identities.
1 of 2
Covering Katy News
The Freeport, Maine McDonalds which is located in side a historic home.
2 of 2
Covering Katy News
Outdoor seating and the entrance to the Freeport, Maine McDonalds which is located in a historic house.
The Bottom Line
Downtown Katy doesn't need fewer reasons for people to visit — it needs more. Churches provide those reasons, bringing community members into the historic core regularly.
The question isn't whether churches belong in downtown Katy. The question is how to make the area more inviting for people to explore. Create an environment where motorists on Highway 90 are visually drawn to what's across the railroad tracks by creatively funding the revitalization of the Katy area's only authentic downtown.
With the turnover on City Council due to term limits, this year offers an opportunity for new members to put forth their vision to make this happen.