Representatives of OHT Partners presented their plans for the development at a meeting with Rosedale neighborhood residents Oct. 20. Community members living near the property shared many concerns about the apartment building disrupting their neighborhood and causing safety and traffic hazards.
What’s happening
OHT Partners has proposed building a 435-unit, market-rate apartment complex spanning six stories with a parking garage at 2117 W. 49th St., said David Hartman, an attorney representing OHT Partners. In August, AISD officials executed a contract to sell the former Rosedale School property to OHT Partners after receiving approval from the board of trustees in March.
In 2022, the district used 2017 bond funds to open a new campus for the school, which serves students who are 3 to 22 years old and have severe special needs. The original campus has since been used as a training facility for law enforcement officers.
The district is seeking to rezone the 4.6-acre property from single family to conditional overlay, which would limit the height of the development to 75 feet, Hartman said.
The project is anticipated to adhere to the following schedule:
- Fall 2025 to early 2026: due diligence and rezoning
- Spring 2026 to fall 2027: design and permitting
- Fall 2027 to fall 2029: development and construction
Some context
AISD anticipates it may receive $26 million from selling the Rosedale site to OHT Partners, according to district documents. The sale of the property is one of several ways AISD is aiming to lower a projected $127 million budget shortfall to $19.7 million.
“There were several aspects I think that we were looking for out of a buyer. ... A big one was the amount of money we wanted out of it,” AISD General Counsel Kenneth Walker said at the Oct. 20 meeting. “It was primarily driven out of our need to reconcile our financial situation.”
Revenue from the Rosedale property sale could help keep budget cuts out of the classroom, said Ali Ghilarducci, senior executive director of communications and community engagement. AISD is expecting to make $44 million in budget cuts for fiscal year 2025-26, including $10 million in reductions at its central office.
“If we are unable to realize any of the proceeds from this transaction, then we will have to find savings in other places,” Walker said.
What community members are saying
Residents of the Rosedale neighborhood expressed frustration and disapproval of the development at the Oct. 20 meeting with OHT Partners and AISD.
Community members shared concerns about the neighborhood's ability to handle increased traffic and the safety of children living and playing in the area. Some residents threatened to file lawsuits and transfer their students outside of the district if the project progressed.
“The number of people on the road is going to be just terrible,” Rosedale neighborhood resident Matt Martin said. “That kind of building inside of a neighborhood ... is going to hurt property values along with the enjoyment of the neighborhood.”
Rosedale neighborhood resident Chris Allen is an architect who has served on the city’s Land Development Code Advisory Group and McMansion Task Force—a group formed in 2006 to limit the size of single-family homes. Allen said he is concerned about the proposed size and height of the apartment complex.
“If you knock down a car dealership or a strip center, you can put up an apartment complex without much of a fight,” Allen said. “This site isn't on an arterial or transit corridor. It's on residential streets, and it's unprecedented.”
Darrell Azar, who lives directly near the Rosedale facility, said he has supported AISD through tax rate increases and bond elections but has lost trust in the district throughout this process.
“Most of the people here support AISD ... but we won’t allow you to destroy our neighborhood if we can stop it, just to try to fill a budget hole temporarily,” Azar said.
"Last night’s meeting was an opportunity to share details about the project and listen to the community,” an OHT Partners spokesperson told Community Impact. “We’re grateful to everyone who participated and shared their thoughts. We’ll continue to take that feedback into account as we advance the project. "
The city of Austin will conduct a neighborhood traffic analysis in response to the rezoning request, Hartman said. The developer would provide water quality controls and detention, including extending the storm sewer to help alleviate existing drainage issues, he said.
Something to note
To move forward with the project, AISD is asking Travis County District Court to interpret a deed restriction on the property and issue a declaratory action, Walker said. The deed restriction, which originated in 1938, states that “no lot of this subdivision shall ever be used for any other purpose than that of a residence.”
“Based on the plain language of the deed restriction, the proposed development is in keeping with the deed restriction,” AISD spokesperson told Community Impact.
Azar and other community members argued that the deed restriction limited developers to building one house on a singular lot in the neighborhood and would not apply to a large apartment complex development.
According to AISD documents, the deed restriction could be amended if all property owners living within 200 feet of the lot provide their written consent. Some residents said they would not give their consent to develop the property if asked.
What else?
AISD has announced plans to close 13 campuses next school year. By the end of this school year, district staff will recommend to the board of trustees whether to repurpose, lease or sell these campuses, according to district information.
“There's no world in which all of those schools would be sold,” Ghilarducci said at the Oct. 20 meeting. “Our board is very invested in maintaining ownership of as much of the property as we can.”’
Additionally, AISD is planning to sell the former Brooke Elementary campus, which closed in 2019, for $19 million to help offset its budget shortfall, district documents state.
Next steps
AISD will go before the city’s Planning and Zoning and Platting commissions and Austin City Council to request zoning changes early next year.
Community members can expect to receive a notice in the mail about the requested declaratory action in about a year before the sale is finalized, district officials said.
The district must receive zoning approval and a declaratory action regarding the deed restriction to close the sale of the property to OHT Partners, an AISD spokesperson said.
