Metropolis Council has permitted the interlocal agreement that can enable the newly created Austin Financial Improvement Company to start conducting its enterprise, which will probably be centered round actual property initiatives addressing affordability and gentrification issues.
The unanimous vote final week got here after years of planning and strategizing to resolve how town might create and execute enterprise offers shortly sufficient to contain personal trade whereas nonetheless leveraging the municipal powers round taxing and infrastructure creation.
Among the many first priorities for the EDC – which may very well be renamed Austin Public Improvement Company within the close to future – is issuing a request for proposals this summer time associated to arts area acquisition utilizing two funding sources; $12 million in bond cash permitted by voters in 2018 for artistic area preservation, and $2.4 million lately permitted by Council to assist iconic venues susceptible to closure or redevelopment.
That RFP will search out present venue occupants susceptible to closure that town might buy after which present the operators with extra favorable lease phrases. It is going to additionally search for arts teams that might companion in occupying and managing a bigger area town would buy, or probably present area through its portfolio of current properties that may very well be repurposed.
Affordability issues for arts areas and different small companies within the metropolis’s core have grown in recent times because the native actual property market has grow to be one of the vital engaging within the nation. Latest statistics put the value of the median single-family house within the Austin space at greater than $450,000, with median costs within the metropolis’s core climbing to simply over $550,000.
Matt Kwatinetz, the true property and improvement marketing consultant who has labored with town for greater than a decade towards the EDC’s creation, mentioned the EDC’s mission round affordability is extra vital than ever.
“It’s vital to assume cyclically and in addition long run, as a result of there isn’t any silver bullet to repair this problem. Similar to a non-public actual property developer builds a portfolio over time, we should additionally do this however there’s one huge benefit when the general public facet decides to get in the true property sport and that’s we’ve got an infinite time horizon since we don’t must flip (a undertaking) out to get our buyers a return. Every property we get, whether or not it’s a music area or a housing area, might be completely reasonably priced from that time.”
Along with the cultural belief RFP, Kwatinetz mentioned different areas of concern for the EDC embrace affordability and anti-gentrification initiatives tied to the cap-and-stitch plan for I-35, and the redevelopment of the South Central Waterfront district simply south of the Congress Avenue bridge.
The South Congress undertaking is most vital, he mentioned, as a result of the EDC will be capable of act because the central negotiator for infrastructure initiatives that can enable builders within the space to construct extra, with the expectation of offering 20 p.c reasonably priced housing and discounted industrial area to accommodate cultural entities.
Presently the regulating plan for that district is being up to date for attainable approval.
“That is precisely the kind of undertaking that AEDC will probably be finest at implementing … a undertaking with disparate possession. The important items are getting settlement from Council on the institution of the (tax increment reinvestment zone) district and the regulating plan, each of which have been kicked round for a really very long time,” he mentioned.
“We received’t be handing any of the builders any cash straight, however the activity of doing that infrastructure will enable them to construct extra, construct higher and get higher costs, so these negotiations will probably be about deciding the sequencing of the place infra occurs and dealing on compliance with the regulating plan.”
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