The Austin Economic Development Corporation (EDC) is on the hunt for financial consultants to jumpstart its deal-making capabilities using valuable city assets. Created to be a more agile player in the city's economic landscape, the EDC is hindered by its lack of major revenue-producing assets. To counter this issue, it has put out a call through an RFP with a hard deadline of May 31, according to the Austin Monitor.
David Colligan, the organization’s COO, has expressed frustrations over the inability to leverage bonding authority and other financial tools without ownership of significant properties. The EDC has been assigned smaller real estate assets, but those identified for redevelopment – such as One Texas Center and the former City Hall property – remain under city control, which limits the corporation from issuing bonds to fund community projects. This predicament has stalled the EDC's ambitions, similar to models followed by counterparts in Atlanta and New York City.
The EDC's RFP outlines a structured, seven-phase work plan to be executed by next February. Market analysis and a financial pro forma for the next five to 10 years are among the primary assignments. The goal is to create a strategy for the EDC to acquire properties, enabling it to engage in significant deals and public partnerships. "When you look at certain lines of federal funding or federal programs, ownership of a property becomes important because (without ownership) you can’t leverage those public programs for public property," Colligan told the Austin Monitor. The EDC is also keeping an eye on prospects for developing Blocks 16 and 18 on East 11th Street, with Colligan citing continued discussions with City Manager T.C. Broadnax to further the corporation's role.
Despite the EDC's current limitations, Colligan remains optimistic. The semi-private nature of the 501(c)3 allows the company to embrace philanthropic contributions and investor capital. While the selected consultant isn’t expected to launch until late June, the EDC is building partnerships with area foundations, aiming to attract large national organizations. "We are going to need some solid traction and momentum," Colligan said, highlighting that the EDC has already surpassed its fundraising target last year and is on pace to do so again in 2024.
This approach to city development through a blend of private investment and public assets presents a unique opportunity for Austin. However, the success of the EDC hinges upon the corporation's ability to gain control over the properties earmarked for redevelopment. Only time will reveal if the corporation can fulfill its mission to create affordable housing and other community resources deemed essential for the growing city of Austin.
