Austin Transit Partnership board members approved a $203 million budget Sept. 17 for fiscal year 2025-26, by which the agency will be moving the Austin Light Rail project closer to a reality, expected to announce a design and engineering firm in early 2026.

The big picture

The agency’s budget outlines major expenditures allocated across three primary funds related to implementing the voter-approved Project Connect: the Austin Light Rail Capital Fund, the CapMetro Project Connect Fund and the Anti-Displacement Investments Fund.

Funding allocations include paying for major contracts that will be awarded over the next year for building the tracks, stations and related systems, as well as the operations and maintenance facility and the light rail vehicles themselves, according to budget documents.

The light rail project is currently working to finalize its environmental impact statement and secure a record of decision from the Federal Transit Administration, according to ATP officials.

These documents are federal approvals that confirm the project’s environmental impacts have been reviewed, enabling the project to move forward toward construction.Of note

The FY 2025-26 budget allocates $20 million for continued investment in anti-displacement activities administered by the city of Austin, stemming from a commitment to the voter-approved Proposition A, or Project Connect, which included $300 million to mitigate transportation investment-related displacement, budget documents state.

These funds are provided to the city on a reimbursement basis in order to administer and implement the Project Connect Anti-Displacement Programs. The spending is allocated for:

• Land acquisition, preservation and rehabilitation
• Affordable housing development
• Staffing, community engagement and marketing
• Programs and other strategies

For example, in March 2024, the city approved the purchase—using $27 million from the ATP anti-displacement funds—of the 107-acre Tokyo Electron campus and surrounding property located at 2400 Grove Blvd. in southeast Austin for future housing redevelopment. This includes income-restricted units close to transit, helping ensure these areas remain affordable, a city news release states.

Looking ahead

On Sept. 11, Austin City Council members authorized the light rail agency to move forward with proposed property acquisition, making way for construction to break ground in 2027.

The city’s approved agreement with ATP outlines how the two entities will work together on acquiring property needed for the Austin Light Rail project, with ATP leading the process and the city authorizing use of its condemnation powers if necessary.

There are about 1,500 businesses along the planned route. Based on early design plans released in spring 2024, ATP estimates 63 of these properties—roughly 4%—could be affected and may need to move if the land is fully or partly acquired.

There are also roughly 13,800 homes along the route. In the draft report, four homes were expected to be displaced; however, ATP has since adjusted the design to avoid those, according to an ATP spokesperson.

The design is still being refined, and may shift as an engineering firm is selected and begins work in 2026. Most property acquisitions are not expected to begin until 2027, the spokesperson said.

According to ATP, the agency has contacted property owners whose sites may be partially or fully acquired to provide information, answer questions and connect them with available resources. This information is still being updated as ATP verifies current property contact details.

Some property owners prefer to communicate directly with their tenants about the project, but the agency is still engaging with both property owners and tenants who reach out, ATP officials said.

Agency staff are in the initial stages of developing a business assistance program designed to assist eligible businesses along the alignment, a spokesperson confirmed. The objective of the program will be to help identified businesses navigate resources and support operations during construction.

“ATP is committed to working with stakeholders to create a business assistance program to launch before construction to support and assist eligible businesses along the alignment,” the spokesperson said in a statement.

Below is a list of the associated properties in which displacements may occur; properties are based on the spring 2024 preliminary designs:



Guadalupe Street

• 2532 Guadalupe St.—1972 Pub
• 2518 Guadalupe St.—Jenn's Copy & Binding, Snag Market
• 2600 Guadalupe St.—7-Eleven
• 2819 Guadalupe St.—Chevron, Mousam Spice House food truck
• 2825 Guadalupe St.—Vocho's Tacos food truck, Abu Omar Halal
• 3106 Guadalupe St.—(no business listed)
• 3001 Guadalupe St.—Salsa Limon
• 512 W. 29th St.—Sip Pho
• 2909 Guadalupe St.—Kabobzi Mediterranean Grill & Phoenician Resto Cafe
• 2915 Guadalupe St.—Little Patagonia Empanadas, former Flamigo's Vintage
• 509 W. 37th St.—Oribello's Bar and Kitchen
• 500 W. 38th St.—Wild and Beautiful Med Spa
• 504 W. 38th St.—(no business listed)
• 3809 Guadalupe St.—(no business listed)
• 3825 Guadalupe St.—University Car Wash

Riverside Drive

• 201 E. Riverside Drive—Thundercloud Subs
• 150 E. Riverside Drive—Aviation Division Texas Department of Transportation
• 1701 E. Riverside Drive—El Tacorrido
• 2237 E. Riverside Drive—Ace Mart Restaurant Supply, Advanced Auto Parts
• 6301 E. Riverside Drive—Shell gas station
• 6305 E. Riverside Drive—corner store
• 6401 E. Riverside Drive—(no business listed)
• 7207 E. Riverside Drive—Salon de Belleza, Honduran food trailer, Rice on the Hill food truck, Variedades, Luna J&J

Downtown

• 100 W. Third St.—Bob's Steak and Chop House
• 306 W. Ninth St.—(no business listed)
• 408 W. 15th St.—7-Eleven
• 411 W. MLK Jr. Blvd.—7-Eleven, Papa John's Pizza

South Congress Avenue

• 1811 S. Congress Ave.—Chase Bank
• 2300 S. Congress Ave.—(no business listed)
• 2304 S. Congress Ave.—Teal House Coffee & Bakery
• 2212 S. Congress Ave.—(no business listed)
• 2401 S. Congress Ave.—PNC Bank
• 2210 S. Congress Ave.—Clayton's Barbershop

Oltorf Street

• 111 E. Oltorf St.—Austin Smoke & Vape Shop

Hwy. 71/ Bastrop Highway

• 1127 Bastrop Hwy.—TRP Construction
• 1125 Bastrop Hwy.—Bohls Bearing

Airport Commerce Drive (near Hwy. 71 & US 183)

• 1500 Airport Commerce Drive—Cosentino Center Austin, Austin CPC, Trillium US Inc.
• 1300 Airport Commerce Drive—Airport Commerce Park
• 1324 Airport Commerce Drive.—Department of Family and Protective Services, National Seating and Mobility Medical Supply Store
• 1340 Airport Commerce Drive #5.—Wilbanks Inc., PharMerica, Boating Safety Division, Kyle Bunting rug store, Magik Sosa, IAA car dealer
• 1336 Airport Commerce Drive—Alterman Inc.
• 1340 Airport Commerce Drive—Pharmacy Corporation of America, Kansas City Life Insurance, Texas Air Systems, Advanced Micro Devices Inc., Climate LLC, Criterion Supply Inc., DH Pace Company, Specs Warehouse, Insurance Auto Auction Corp., HVAC RNTL LLC, National Seating and Mobility Inc., Teal Enterprises LLC, Willbanks & Associates Inc., Appliance Warehouse of America Inc.
• 1400 Airport Commerce Drive—(no business listed)
• 1501 Airport Commerce Drive—(no business listed)

Business listings were compiled using ATP records, property tax data, Google Maps and physical confirmation.