Austin City Council has cleared the runway for a major two-tower project just off the University of Texas at Austin campus, signing off March 26 on entitlements for a full-block redevelopment along West Martin Luther King Jr. Boulevard. The move opens the door for a mix of hotel rooms, condos, apartments, and ground-floor retail that would add hundreds of new units near campus, as the developer hustled to meet a late-March contractual entitlement deadline. A construction start date is still anyone’s guess, with no timetable announced.
Council signs off on extra height
The council granted the key entitlements through the city’s Downtown Density Bonus Program, which lets projects climb higher in exchange for community benefits, according to Bisnow. The approval followed earlier actions at the planning commission and a rezoning the council had already signed off on in February.
What the two towers would bring
Austin-based Rundog Real Estate Group is planning the redevelopment of the full block bounded by Rio Grande and Nueces streets. The proposal calls for a north tower with a 287-room hotel, about 61 condo units, and roughly 5,000 square feet of retail, and a south tower with 318 apartments and another 5,000 square feet of retail, according to The Real Deal. The project would replace several low-rise businesses that have long occupied the site, including a longtime dry cleaner and the original Tiff’s Treats location.
Density bonus cash and affordable housing
Because the extra height came through the Downtown Density Bonus Program, the developer must either pay a fee or provide on-site public benefits. Bisnow reports the project is expected to add about $3.3 million to Austin’s affordable housing fund. The City of Austin materials on the Downtown Density Bonus Program spell out how taller projects can offset their impact by delivering public benefits or paying fees that support affordable housing efforts.
UT and neighbors want a timeout
The University of Texas, University Area Partners and the Judges Hill Neighborhood Association had urged the council to hit pause, raising concerns about building height and strain on infrastructure, coverage from KXAN shows. Neighbors told reporters the approved heights, more than 400 feet under the entitlements, feel out of scale with the nearby historic neighborhood, according to KXAN.
Staff said 200 feet, council said much more
City staff had suggested capping the buildings around 200 feet tall. Council members instead backed a much larger envelope that The Real Deal reports could reach about 445 feet, arguing that taller development would boost density-bonus revenue and future property tax collections. The outlet also notes the project was up against a March 31 contract deadline to secure its entitlements. The developer has said it will conduct vapor-intrusion studies and perform remediation if needed, but has not yet released a construction schedule.
