Austin leaders are supporting a city incentive deal for a nearly $1 billion resort project at Circuit of the Americas. (Xorin Aeronautics/Community Impact)
Austin leaders advanced a city incentive deal for a $985 million resort project at Circuit of the Americas this spring that's expected to add hundreds of jobs and generate billions of dollars in the local economy.
The overview
RIDA Development is planning a 1,000-room hotel with a golf course and 170,000-square-foot conference center on the western portion of the COTA project in Del Valle.
A 30-year economic development agreement between Austin and RIDA proposed this spring would see the city reimburse a portion of the hotel occupancy tax, or HOT, generated by the resort once it's up and running, and carries no other upfront costs to the city.
New tax revenue collections for Austin, Travis County, Del Valle ISD, Austin Community College and Central Health are projected to total hundreds of millions of dollars over the term of the deal. The project's construction is expected to create nearly 4,000 temporary jobs, while the resort will support about 900 permanent jobs and indirectly create hundreds more.
The city deal would also see RIDA contribute public parkland and soccer fields, pay into Austin's affordable housing fund and offer resort discounts for local residents. Read more about the proposed agreement here.
“When I think about the needs of the Del Valle community and what our Del Valle community deserves, it’s exactly this. It’s stable jobs that are close to home, it’s parks where our kids can play, it’s a kind of real investment that other parts of Austin have seen for decades and yet we haven’t materialized that in our Del Valle community," said council member Vanessa Fuentes, the area's representative. "That’s why there is such strong support for this type of proposal, because it really first of its kind and will be transformative."
The approach
Officials authorized city staff to work out the final terms of the economic agreement with RIDA on April 23. City Council will review the deal again before it's finally approved, following a request from council member Ryan Alter to move forward with negotiations only this spring.
Alter said he's committed to getting the deal done, but wants more oversight of some nuances of the terms. The RIDA proposal represents Austin's first economic development agreement under Texas' Chapter 380 incentive policy based on HOT, he said, and could have implications outside the COTA project.
“We could inadvertently be authorizing something that the council doesn’t know what the impact’s going to be to other very important city assets and revenue generation," he said.
What they're saying
The proposal was widely backed by council and community members this spring. RIDA has already reached a labor peace deal with the hospitality workers' union Unite Here Local 23, which had several representatives in attendance to support council's vote.
"RIDA, we have worked with them in Houston and created good jobs in that city. There is a very good example 2 hours to the east of here of with working with RIDA where they created good jobs and made an impact on peoples’ lives and created a good standard for those workers," said Willy Gonzalez, Unite Here secretary-treasurer. "We have to look at these projects not just in terms of the economic value ... but what it does for those workers. And there’s a track record with RIDA, and we’re here to talk about it because we’ve been partners with them on that.”
Janicia Marbray, an organizer with Unite Here in Houston, said she had a positive experience working at RIDA's Marriott Marquis Houston that could be repeated in Austin. And Markeeta Presley, a cashier at Austin-Bergstrom International Airport, said her working conditions improved after organizing with Unite Here and supported the new project's labor commitments.
“The more we create good hotel jobs, the more we can raise standards for hotel workers and all hospitality workers in this city," she said.
Members of the hospitality workers' union Unite Here Local 23 applauded Austin's proposed economic agreement with RIDA Development. (Screenshot courtesy city of Austin)
RIDA CEO Ira Mitzner told council he believes the project will be "transformational" for far East Austin, resulting in further investments and follow-up projects there once complete.
"The proposed project will create thousands of excellent construction and permanent jobs, a very significant new tax base and literally billions of positive economic impact. When built, it will also become an anchor and town center for Austin’s Eastern Crescent and Del Valle communities," he said.
What else?
Council members also advanced a zoning update that'll clear the way for the resort project on April 23, with final approval scheduled for late May.
The amendment to COTA's planned unit development, or PUD, is moving ahead with two changes from city planning staff to cement public parkland commitments and clarify where alcohol can be sold onsite. Fuentes is also pushing for improved transit access at COTA once the hotel opens, and said both the racetrack and Capital Metro agree on the need for a "long-awaited" bus stop at the property.
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