AUSTIN, Texas — On Nov. 3, the Austin City Council approved funding and support items for the Colony Park Sustainable Community in East Austin.
The City plans to develop the Colony Park project on a 208-acre site near Colony Loop Drive and Loyola Lane. When the project is complete, it is expected to include approximately 1,072 single-family homes, 831 multi-family apartments, 230,000 square feet of mixed-use office/institutional space, 130,000 square feet of mixed-use retail space, as well as 53 acres of parks, trails and open space.
"That includes 400 income-restricted units that will be set aside for working class Austinites who struggle to find housing that they can afford in Austin," said District 1 Councilmember Natasha Harper-Madison.
The project has sat for more than a decade with promises those in the community have yet to see. But a more-than-$80-million funding gap is now closed as councilmembers like Harper-Madison approved for the area to become a Tax Increment Reinvestment Zone, better known as TIRZ.
So, what does this mean?
"All of this kind of reinvestment, if you will, of tax revenue will go back to funding the infrastructure needs for the Colony Park Project," said Sergio Negrete, the vice president of development for Catellus Development.
The TIRZ zone closed the $81 million financing gap. It also allows for reinvestment into the area for the next 20 years.
The $257 million project will be handled in partnership with Catellus, who previously developed the Mueller project. Negrete said it's time this community sees plans come to light.
"To be able to address all the different needs that this community has been lacking for so long, I think we feel super privileged to be able to step into this," Negrete said.
The area has also seen years of food and health deserts, something Negrete said will be addressed by bringing in health care partners and allowing for grocery options as well.
"There's eight pillars of need out here and Central Health kind of checks one box and, you know, the goal is to not stop there. We want to deliver on all of these pillars it needs that the community has," Negrete said.
According to the City, the Colony Park project is the largest redevelopment of City-owned land since the Mueller project.
Rodney Gonzales, Austin's assistant city manager, said the council vote is a "huge milestone" for the Colony Park project and staff stands ready to engage in the next step of the project.
PHOTOS: Colony Park Sustainable Community renderings
The City's Economic Development Department signed an "Exclusive Negotiating Agreement" with Catellus Development Corporation for the Colony Park project in May 2020. The City said the vote on Nov. 3 provides funding for Phase 2 predevelopment services to continue negotiations toward a "Master Development Agreement."
The Master Development Agreement will follow concepts from the Colony Park Master Plan. The City said the work on that master plan was guided by three years of extensive public engagement.
Council also approved a legal services agreement related to real estate documents necessary for negotiations for the Colony Park project. Additionally, the council approved an ordinance and set a public hearing for creation of Tax Increment Reinvestment Zone (TIRZ) No. 20 for the Colony Park project as a key component of the funding strategy.
The City said a TIRZ for Colony Park would "provide a means of financing the costs of public works, public improvements, programs, and other projects benefiting the zone." The City said once all project costs have been paid or the debt associated with the TIRZ has been retired and the term of the TIRZ ends, all property tax revenue returns to the City for general purposes.
Councilmember Harper-Madison said this type of project also opens up for a variety of jobs to be created.
"It's retail, it's hospitality, it's education. Folks got to work at that aquatic center. We're going to need lifeguards. We're going to need management," she said.
The Colony Park project will also be funded through public land sales, departmental capital budgets and the creation of a public improvement district (PID), in addition to the TIRZ.
To learn more about the Colony Park Sustainable Community project, visit www.austintexas.gov/redevelopment.
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