AUSTIN, Texas — Texas Land Commissioner Dawn Buckingham and Austin Mayor Kirk Watson announced Tuesday the intention to redevelop a state office building in Downtown Austin into workforce housing.
Buckingham and Watson announced the Hobby Building, located at 333 Guadalupe St., will also hopefully provide additional amenities to downtown residents, including child care, parking and retail spaces.
"I am pleased to present qualified investors and developers with a unique opportunity to collaborate with the [General Land Office] on the historic redevelopment of the Hobby Building into workforce housing for Austin families,” Buckingham said. “Anytime the state can come together with the City of Austin and work collaboratively for the benefit of its residents, we all win. This project will seek to serve those who provide critical services to the community, including our hardworking teachers, steadfast police officers, valiant firefighters, dedicated government workers and many crucial health care providers."
“By including and focusing on workforce housing as a part of this redevelopment process, Commissioner Buckingham is choosing to make affordability front and center in this project,” Watson said. “She is challenging the respondents to be creative and explore different approaches and partnerships to help address affordability in our city.”
The building last housed government offices, such as the Texas Department of Insurance and the State Board of Nursing. It’s vacant now.
Watson said the building will be near the City’s planned light rail.
"Imagine how easy it would be for a State employee living here to jump on a light rail and head to work at the State Capitol complex," Watson said. "Imagine the cost savings for a State employee who no longer has to rely on a car to get to work. Imagine how that would be with child care in the same facility. Imagine how different this project could be if we’re solving our problems for the people that live and work in this city."
Both Buckingham and Watson said this project was made possible due to Senate Bill 1349, passed and signed by the governor in 2019. At that time, both Watson and Buckingham served in the Texas Senate. Watson authored the bill.
In the Statement of Intent, Watson wrote the need for the sale was due to “poor condition of the building, significant deferred maintenance obligations and increasing annual investments necessary to maintain habitability.”
“Based on analysis by the Texas Facilities Commission, there would be one-time and ongoing savings to the state associated with the sale of the Hobby Building. The agency estimates outstanding deferred maintenance costs of $49.6 million for the Hobby Building, which would be avoided with the completion of the sale. In addition, the agency estimates that two full-time equivalent maintenance and inspection employees currently assigned to the Hobby Building could be reassigned to support operations of other state facilities. In addition, annual custodial and pest control costs of $247,000 would be avoided with the sale. However, because the timing of the sale cannot be estimated, the exact nature of these savings cannot be determined at this time,” the 2019 fiscal note shows.
“Well, I've known several people that have had to move out, have sold their houses that are in town and have had to move an hour, hour-and-a-half out of town and are making this commute to work to be able to afford a house. And then there are several people, friends of mine, that are still in apartments because they can't afford a house,” said Nancy Sisk, a mechanical heart educator at Ascension Seton who attended the press conference.
Starting Tuesday, prospects have 90 days to submit responses. After that, the General Land Office will review and recommend the best proposal(s), which will ultimately need to be approved by the School Land Board.
“This project will ultimately generate revenue for the Permanent School Fund, which I call the children’s fund, which is the single largest educational endowment in the nation,” Buckingham said.
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