City of Austin employees say they will not have a recommendation on the proposed Austin Oaks Planned Unit Development when the case comes before the Zoning and Platting Commission on Sept. 15.

Despite both the city and the developer telling the ZAP at its July 7 meeting that they would not ask for further postponements of the 15-month-old case, Jerry Rusthoven, manager of the city’s Planning and Zoning Department, said the city is not ready to recommend approval or denial.

“There is no guarantee we will ever make it to that point,” Rusthoven told about 75 residents at a neighborhood meeting Sept. 8. “It is simply not ready.”

Real estate company and landowner Twelve Lakes LLC, represented by the Drenner Group law firm, is lobbying the city for a zoning change from limited office, family residence and neighborhood and community commercial to a PUD.

Rusthoven said the developer claims PUD zoning would allow the property located on the southwest corner of the Spicewood Springs Road and MoPac intersection to act as a neighborhood center.

PUD zoning allows flexibility in floor space and height, but the city requires a superior development in exchange, which can include affordable housing units, additional environmental protections and funds for traffic improvements, Rusthoven said.

The developer gave the city a list of what it believes qualifies its proposal as a superior development, Rusthoven said. The list includes a self-imposed tax the developer would pay every year for 15 years until the trust fund reaches $9 million. The money would be earmarked for transportation improvements in the area, Rusthoven said.

“It is not a $9 million check up front,” he added.

Rusthoven said the developer originally proposed earmarking those funds for Austin ISD schools. He said AISD will do an education impact statement to illustrate what effect the project will have on nearby schools, but the study is not yet complete.

Many residents have rallied against the project, saying the proposed buildings, which could be as tall as 120 feet, would tower over existing architecture. One resident at the meeting noted the proposal includes an increase in daily traffic from 4,811 trips per day to 23,804 trips per day—a nearly 400 percent increase.

Rusthoven said transportation issues and building height are two areas in which the city and the developer have not yet found common ground.

“They’re asking for a lot, and we understand that,” he said.

Planning and Zoning Department Director Greg Guernsey said making a decision on the proposed PUD has not been an easy one for staff.

"We want to have all the facts in front of us before we make that decision," he said.

Rusthoven said the city would likely ask for another postponement at the Sept. 15 ZAP meeting. He also said the Environmental Commission typically discusses zoning changes before the ZAP makes a decision, but the Environmental Commission's next scheduled meeting is Sept. 16.

If the ZAP moves the case forward without a recommendation from the city staff, it would be the first time, Rusthoven said.