Officials closed the book on an extended base rate review for Austin Energy's electricity charges, voting to approve a multiyear rate update that will cost the typical Austinite an extra $9 monthly. The change comes after a separate rate adjustment earlier this year that increased power costs for the standard resident by $15 monthly.
The meeting was the last at City Hall for Mayor Steve Adler and Council Members Pio Renteria, Ann Kitchen and Kathie Tovo. Those four were presented with distinguished service awards by their colleagues, and Adler also handed every council member a key to the city in one of his final acts as mayor.
St. John process continues
The long-awaited revamp of the St. John Site off I-35 in North Central Austin moved another step closer to reality Dec. 8 after officials approved several items related to the property's redevelopment.
The city-owned site at 7211-7309 I-35 N. has sat vacant for years. A proposal from Greystar Development Central and the Housing Authority of the City of Austin that council accepted last year would bring hundreds of housing units and new public space to the St. Johns community.
Council unanimously voted to move toward a finalized development agreement between Greystar and the HACA. Officials also added $149,000 to a related legal services agreement with Steptoe & Johnson and approved a rezoning to allow denser development at the site.
The city and Greystar are eyeing terms for the project that would make half of its 526 rental housing units income restricted. A total of 236 would be available below 60% of the regional median family income—now $110,300 for a family of four—with 27 units available at 70% MFI or below.
Both affordable and market-rate housing include a mix of studios and one-, two- and three-bedroom spaces with more family-oriented units now under consideration than in the project's earlier stages. Plans also call for a housing marketing campaign geared toward drawing local community members.
At least 15,000 square feet of commercial space, a St. Johns-inspired art installation and the construction of a new park are also in the project outline.
Turning the eyesore property into a new community hub has been a priority of Austin's District 4 leaders for years with former district representative Greg Casar and current Council Member Chito Vela both working to usher the plans along. Vela credited Casar for his work on the initiative over recent years and thanked residents for their help guiding the project so far.
“It’s going to be a huge asset to the community," Vela said.
Residents also said they back the Greystar-HACA package based on neighborhood input.
“I’m definitely in favor of passing this resolution because I truly feel like the process has kept the community in mind and is a good model for development moving forward; things that will benefit both the city, private companies and the people who actually live in the community," Akeem McLennon told council.
In a statement, the developer thanked residents and other stakeholders for their participation.
“We’re excited to share this important milestone with all of our partners on the redevelopment of St. Johns and look forward to taking the next steps towards construction," Greystar said. "We’d like to thank the members and friends of the St. Johns community for all their guidance and input as we’ve continued to refine the redevelopment plan and vision."
District 4 Chief of Staff Sobeyda Gomez-Chou said a development agreement for the site could be finalized early next year. Demolitions to clear the way for the new project could come in late 2023 or early 2024.
The site is one of several pieces of land owned by Austin that could be converted into mixed-use developments with a focus on housing in the coming years.
Oracle trade oversight
Austin is pressing ahead on a voter-authorized parkland trade despite concerns from some officials that the city may be losing value on the deal.
Last fall's passage of Proposition B cleared the way for Austin to exchange the parks department's maintenance center for a new 48-acre park on the city's east side. The trade between the city and Oracle, whose headquarters sits next to the current maintenance complex, would also leave the tech giant responsible for a replacement facility and park restoration work at Fiesta Gardens.
While both sides stand to benefit—Austin would fill a long-desired hole in its east side parkland plan and get a modern maintenance center, and Oracle could expand its corporate campus—worry remains that the city will come up short.
The existing city maintenance complex at 2525 Lakeshore Blvd. is now appraised at around $35 million but could be worth much more if it were rezoned for denser development, a likely outcome once Oracle controls the land. Austin and Oracle are also now working to reach an agreement on the value of what could be the newest city park, the former Driveway Austin property Oracle bought after last year's election, before City Council approves a final deal.
Officials voted 8-3 in favor of a resolution from Renteria directing staff to bring that plan to council early next year. The proposed swap has been a longtime priority for Renteria within his council district.
"This [item] does not direct staff to do more than what they’re already doing. Rather, it ensures that staff continue to negotiate with a proposal to get the best deal for our residents," he said.
Mayor Pro Tem Alison Alter was one of the voters against Renteria's item and said she plans to closely monitor the process, which she said may be playing out based on faulty finances. And Tovo, who had multiple amendments to the item voted down, cautioned Austin needs to ensure a fair deal or risk the appearance of a valuable gift of public land to Oracle.
“If we’re going to really make this work for the community—and again, I am not saying that we can’t make this work in a really positive way—but we have to operate that we’re trying to get the leverage that the city deserves out of the process," Alter said.
Short-term rental review
In one of her final policy directives from the council dais, Tovo kick-started an update to the regulation of short-term rentals that could affect the market's operations in Austin.
Tovo's resolution calls for a city code update making it illegal for short-term rental marketplaces, such as Airbnb or Vrbo, to profit from rental units that are not licensed with the city.
Austin staff estimated most of the thousands of short-term rentals now operating locally are unlicensed. Some officials and community members have raised concerns over short-term rentals for years related to lost city revenue from unregistered spaces, addressing "nuisance" properties and the rental market's effect on housing availability.
