Austin City Council voted Thursday to remove a restriction on the number of allowable units for a Rainey Street area property, paving the way for a high-rise residential complex to be built in place of the Villas on Town Lake, located at 80 Red River St., Austin.

The vote came after developer the Sutton Co. agreed to pay for a traffic study of the area, which neighbors say is much needed. Sutton Co. wants to build 420 residential units in place of the Villas.

Nikelle Mead, who represents the Sutton Co., told Community Impact Newspaper the developer will give the Rainey Neighbors Association $50,000 to hire a consultant and complete the study, which she anticipates will occur in the next month or so.

She said in her research, typical traffic studies cost between $35,000 and $40,000, and that the developer gave the neighbors association $50,000 "as a cushion."

Mayor Pro Tem Kathie Tovo, whose District 9 encompasses the Rainey Street area, encouraged the traffic study to begin as soon as possible and said city staff would consider the results of the study when reviewing site plans for the Sutton Co.'s project.

At Thursday's City Council meeting, she said the developer will still have to do a traffic impact analysis, which is required by the city of Austin for any new projects.

“I know there are concerns; I believe this goes a long way in beginning to address them,” Tovo said.

The Sutton Co. is also developing Waller Park Place—consisting of a 30-story office tower, a 54-story apartment building, and a 48-story hotel and condominium complex—at the intersection of Cesar Chavez and Red River streets.

Landon Turner, general manager for The Shore Condos—one of the residential complexes that opposed removing the housing unit restriction on the Villas—said the Rainey neighborhood traffic study was a "great way" for the city to get involved in the long-term vision of the neighborhood, but that the city's involvement should've happened long ago.

He said when the area was rezoned to a Central Business District—which encourages the development of commercial, residential and civic uses in the downtown area—in 2005, it was under the promise that objectives laid out in the Downtown Austin Plan would be addressed.

"None of this would have had to happen if the city would've followed their promise," Landon said, referring to the contention with the Villas and the Sutton Co.

He said he was pleased with the compromise involving the Sutton Co. and is looking forward to the results of the traffic study.

"We got something. It wasn’t everything that we wanted, but it was good enough for us to go to the city," he said.