The big picture
City Council will vote Aug. 28 to advance the purchase of more than 2 million square feet home to office, industrial, storage and parking space. If approved, the deal will be funded through the utility's budget.
The acquisition of 6500 Tracor Lane would include land on both sides of US 183 adjacent to an existing emergency medical services training facility and The Salvation Army's homeless shelter for women and children. It's also next to the Walnut Creek Wastewater Treatment Plant currently undergoing a $1 billion-plus expansion.
The new property will support Austin Water's short- and long-term needs, according to the city, and includes room for possible redevelopment in the future. However, no specific plans for the campus have been determined yet.
AW spokesperson Martin Barbosa said the Tracor Lane property is intended to be a "south service center hub" and that the utility could add a similar northern hub in the future.
"This initiative aims to reduce service response times across our growing city. The property presents an opportunity to bring multiple work groups in Austin Water operations together—enhancing efficiency, coordination and service delivery," he said. "This new campus would allow us to leave aging facilities, streamline operations and repurpose existing spaces, aligning with our mission and improving the work environment for our employees."
The details
The new water service center is meant to centralize several of the utility's currently aging facilities, which AW could exit and repurpose for different uses in the future. Barbosa said AW has no expected timeline for employee relocation or how existing facilities will be handled after that process.
"Opportunities for repurposing will require further exploration and completion of a facilities utilization study," he said. "In general, we are considering relocating several service centers to this consolidated site. Those consolidations will provide opportunities for improved collaboration and shared resources and will improve Austin Water crew response times for water leaks, water outages and wastewater issues."
The Tracor Lane property offers benefits like expanded office, workshop, warehousing and parking space, according to AW. It's currently home to 11 buildings between 40 and 62 years old, totaling nearly 2.5 million square feet with:
- 274,278 square feet of offices, including a maintenance shop
- 68,907 square feet of manufacturing space
- A 32,838-square-foot warehouse
- A gym, cafeteria and auditorium covering 22,062 square feet
If the acquisition moves forward, Barbosa said AW will work with the Austin Public Facilities Corp. on a plan for the campus. Other nonutility uses potentially tied the nearby EMS and Salvation Army facilities "could be considered," he said.
Some context
AW is moving to consolidate and improve some of its spaces after a 2019 consultant study found "various outdated facilities and facilities that do not meet the intended functions." That $613,000 project by RSP Architects recommended the utility exit some of its leases and renovate or develop other facilities. AW didn't make a copy of the study available, citing the need to submit a public information request for the materials.
Barbosa said AW has been searching for new facilities since 2019. The Tracor Lane site was first identified in June 2024.
Last year, AW also spent more than $65 million last year to buy and improve a property at 712 E. Huntland Drive following the RSP study. That acquisition was completed through the APFC to consolidate leased laboratories and house new operations, emergency response and customer service spaces.
Austin has worked with RSP on several facility studies including the recent water utility review, a similar project for Austin Energy, and a citywide strategic assessment.
The cost
A third-party appraisal supported the price tag for the Tracor Lane site, according to the city. Austin will spend $40 million on the land, $1.05 million on a year's worth of onsite contracts for services like landscaping and security, and $750,000 on long-term planning and design work for the campus.
The property is being acquired from Karlin Tracor Lane LLC, registered to the Los Angeles-based private investment firm Karlin. The four tracts Austin plans to buy are currently valued at $53.13 million by the Travis Central Appraisal District.
