UPDATED: Ahead of MLS stadium vote, 4 Austin City Council members propose new terms

The undeveloped McKalla Place site is surrounded by new development under construction.

The undeveloped McKalla Place site is surrounded by new development under construction.

Updated 9:05 a.m. Aug. 9

Late Wednesday night, the city of Austin posted a revised term sheet that includes new nonrelocation terms should Precourt Sports Ventures violate its agreement with the city and move the soccer club.

The new terms outline that PSV would have to either pay the city, as liquidated damages, an amount of $1 million multiplied by the number of complete lease years remaining in the agreement or that PSV would be responsible for demolishing the Major League Soccer stadium and bringing it back to a developable condition.

The revised terms also state that PSV would "retain the exclusive right in its discretion" to impose a ticket surcharge to cover certain costs, such as transportation, shuttle services, Park & Rides and capital expenses.

Financial contributions PSV would make to area nonprofits and for complimentary tickets were also changed to lower amounts. The estimated community benefits over 20 years is expected to be about $72.8 million instead of the original figure of $95.9 million. Over 50 years, the revised benefits are expected to reach almost $253.3 million.

The revised terms are posted online at www.austintexas.gov/mckalla.

Posted 12:23 p.m. Aug. 8

On Thursday, Austin City Council will consider whether to officially negotiate and execute a deal with Precourt Sports Ventures to build a Major League Soccer stadium.

Just two days before, four council members, led by Leslie Pool of District 7, laid out new terms and principles they would like to see in the deal. PSV submitted its proposal June 1 to build a $200 million, 20,000-seat stadium at 10414 McKalla Place. The 24-acre site is in North Austin near Burnet Road and Braker Lane.

“We believe that each of our proposed changes would make this a stronger deal for the city and look forward to discussing them this Thursday,” Pool wrote Tuesday on the council message board.

Pool is joined by council members Alison Alter, Ora Houston and Ellen Troxclair. Their new terms include:

  • requiring PSV to pay close to market rate rent for McKalla Place at $958,720 with an escalation rate of 2 percent;

  • asking PSV to make additional financial contributions to Austin ISD, Travis County and Central Health, the county’s health district;

  • requiring PSV to fund any capital repairs;

  • capping any costs to the city remediation of the site to $500,000;

  • specifying strong financial penalties for relocation of the team, including returning the land to a developable condition and reimbursing the city for any remediation costs;

  • allowing council to give final approval on the complete agreement;

  • not allowing side agreements, including for a training facility;

  • providing ticket revenue-sharing, similar to Los Angeles, Orlando and Denver;

  • requiring PSV to fund a MetroRail station;

  • requiring PSV to give the city 30 percent of parking revenues for mobility improvements; and

  • requiring a transportation and parking plan that includes parking opportunities, resident permit parking.


More information is available on the council message board here. View the entire proposed new terms below.



By Amy Denney

Managing Editor, Austin metro

Amy has worked for Community Impact Newspaper since September 2010, serving as reporter and later senior editor for the Northwest Austin edition as well as covering transportation in the Austin metro. She is now managing editor for the 10 publications in the Central Texas area from Georgetown to New Braunfels.



MOST RECENT

Photo of three men drinking at a tiki bar
Ramen Tatsu-Ya readies new South Austin concept, plus more area business news

Tiki bar and restaurant Tiki Tatsu-Ya is set to open later this summer.

Minnesota-based Rockler Woodworking and Hardware will open a location in La Frontera in late September. (Brooke Sjoberg/Community Impact Newspaper)
Rockler Woodworking and Hardware coming to Round Rock

Minnesota-based Rockler Woodworking and Hardware is coming to La Frontera in Round Rock in late September.

The proposed Wild Ridge master-planned neighborhood northeast of downtown Dripping Springs would include 960 homes on 40- to 60-foot-wide lots. (Courtesy City of Dripping Springs)
Master-planned neighborhood in Dripping Springs to bring 960 homes, new roads

The proposed development by Meritage Homes would feature amenities such as a disc golf course.

Q&A: Greg Smith, executive director of Fast Growth School Coalition

Greg Smith is the former superintendent of Clear Creek ISD and became executive director of Fast Growth School Coalition in December 2020. 

Photo of the Travis County sign
Travis County proposes tax rate for 2021-22 fiscal year, prepares for budget approval process

Due to increasing property values, the property tax rate is expected to be around $0.017 lower in the coming fiscal year.

Photo of school supples
Parents weigh in: What are your considerations heading into the 2021-22 school year?

Community Impact Newspaper seeks parent feedback as we prepare for our annual education edition.

Photo of the Austin Police Department
City of Austin certifies Save Austin Now's petition to increase police staffing, adding it to fall ballot

The measure would require two police officers for every 1,000 area residents, among other provisions.

TxDOT will stop removing trees as a part of the Oak Hill Parkway project until the injunction hearing Sept. 2. (Courtesy Falcon Sky Photography)
TxDOT temporarily halts removal of trees, but Oak Hill Parkway construction continues

Opponents of the parkway see the latest development as a “window of hope.”

Photo of a doctor with a pregnant woman
Austin health experts warn delta variant could pose higher risk for pregnant women

Maternal medicine doctors across Central Texas have seen increasing numbers of pregnant women coming to the hospital with breathing issues and pregnancy complications as a result of COVID-19.

Wayback Burgers makes cooked-to-order burgers and hand-dipped milkshakes. (Courtesy Wayback Burgers)
6 eateries open or coming to Cedar Park, Leander; Trudy's North Star reopens in Northwest Austin and more Central Texas news

Read the latest business and community news from the Central Texas area, including Tiff's Treats opening in Hutto.

Austin ISD will offer virtual learning, expecting about 5% of students to apply. (Courtesy Unsplash)
Austin public schools release virtual learning plan

Austin ISD will offer virtual learning, expecting about 5% of students to apply.

student writing on paper
Texas Legislature allows parents to opt for students to repeat grade levels or courses

Senate Bill 1697 is effective for the 2021-22 school year.