AUSTIN, Texas — At its meeting on Thursday, the Austin City Council moved toward renovating the former Candlewood Suites hotel so it can become a facility to help people experiencing homelessness. The City of Austin bought the hotel in North Austin last August.
On Thursday, the council authorized a contract with Family Eldercare to fund renovations at the hotel and turn it into Pecan Gardens, a permanent supportive housing facility for people in need.
According to Family Eldercare's website, the organization was founded in 1982 by two women who wanted to develop resources and training for families caring for their aging loved ones.
The company released this statement:
"Family Eldercare is excited to create a permanent home and community for older adults experiencing homelessness. The contract City Council approved on Thursday, June 16th is the first of many steps to convert the hotel into a permanent home for older adults ages 55+. Family Eldercare will provide on-site services for Pecan Gardens residents to support their health and stability. A safe and stable home is the foundation we all need to do well physically, emotionally, socially and financially."
The contract with Family Eldercare would be for a one-year term and a total not to exceed $3,903,216.13, according to the agenda item.
The council was initially set to discuss the contract back on May 19, but the item was pulled by Councilmember Mackenzie Kelly for future discussion. However, the council did scale back, approving an item that authorized City leaders to start negotiations regarding the renovations.
The next steps will be to complete construction plans and go through a permitting process.
Candlewood Suites has been a point of contention between the City of Austin and leaders in Williamson County for about a year. The hotel, located on Pecan Park Boulevard near US 183 and State Highway 45, is located in Austin but also in Williamson County. Williamson County commissioners pushed back against the purchase of the hotel at the time, saying the deal wasn't discussed with them.
Williamson County Judge Bill Gravell recently shared photos that he said he received from residents who live near the Candlewood Suites hotel. Gravell said the residents claimed the Austin City Council's decision has brought crime to the neighborhood.
However, Austin Mayor Steve Adler said the hotel has been vacant since the purchase and the crime stems from issues within Williamson County. In a mid-May interview with KVUE, Adler said the hotel for people experiencing homelessness should be up and running in about six months.
On Friday, Williamson County announced that County Attorney Dee Hobbs is overseeing a lawsuit regarding the hotel. It is seeking a temporary restraining order and a temporary and permanent injunction against the nonprofit created by Austin, AHFC Pecan Park PSH, which would stop them from creating the homeless housing facility.
"The truth is, the city of Austin continues to show a complete and utter disregard for the law, for its neighbors and for the citizens. And as community leaders, it's time for us to stand up," Judge Gravell said.
The county judge said commissioners have been fighting the city's plans since the start.
"The lawsuit really is just a result of their inability to communicate with anybody. The lawsuit is just a result of their inability to respect our residents and to worry about the safety and the public well-being of our residents. The lawsuit has everything to do with the arrogance of downtown Austin telling the people what will occur instead of working with the people to solve the problems through a collaborative conversation," Judge Gravell said.
In addition, the Williamson County Commissioners Court has identified and funded a special prosecutor to assist the County Attorney's Office in pursuing this lawsuit.
“The City of Austin continues to show complete and utter disregard for the law, its neighbors, its citizens and community leaders as it barrels recklessly ahead with its plans for the permanent housing of the homeless at this location in Williamson County. The actions by the City of Austin have left no other options than to pursue legal action,” said Gravell on Friday. “Taking this action is necessary in order to protect Williamson County’s tax-paying, law-abiding citizens to whom the City of Austin has turned a deaf ear to and trampled on.”
While the county takes the fight over the former hotel space to court, businesses in the area like Freda's Seafood Grille next door to the building have been fighting the plan since 2021.
Freda Cheng has owned the restaurant for about 20 years and said the former hotel used to bring tourists to her restaurant and now her guests are worried after recent break-ins.
"We all support the homeless. They do have issues, but it's not the right location because there's only one fence away from the restaurant, one fence away from the hotel and one fence away from the neighborhood," Cheng said.
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