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City council moves forward with HealthSouth development plan

For six years, the City of Austin has been working to redevelop the former HealthSouth property near 12th and Red River streets.

AUSTIN, Texas — As the City of Austin struggles to create more affordable housing, one plan to make more downtown took a step forward this week. 

For six years, the City has been working to redevelop the former HealthSouth property near 12th and Red River streets. 

On Thursday, the Austin City Council approved a plan to create two mixed-use towers on that property that would include apartments, commercial space, a child care center and more. 

Council members want 25% of the housing in these towers to hit the "affordable" threshold for low-income residents. City documents show that the development will have 921 total rentals, with 232 of those designated as affordable housing units.

The last action taken was in July of this year when the council authorized an amendment to the exclusive negotiation agreement with the developer, Aspen Heights Partners, to extend the agreement through Sept. 30. 

The execution of a master development agreement was approved Thursday.

For more information, visit the Austin City Council website.

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