The impact
The parish negotiated a land lease with Greystar, a nationally recognized multifamily developer, in which revenue received from the lease of an acre of parish property helped to fund the school’s redevelopment project.
Also included in negotiations, the newly constructed 29-story, 990-bed housing tower constructed by Greystar on the parish-leased property will include nearly 200 units of affordable housing.
St. Austin traded some of its ground lease revenue from the developer to include affordable housing at this site.
Additional funding for the redevelopment project came from $30 million in tax-exempt bank debt and $9 million of taxable bonds purchased by the Diocese of Austin. However, 88% of the total cost of the projects is expected to be covered by the ground lease payments, providing a revenue stream for the parish and diocese for nearly a century, per terms of the agreement with Greystar.
As the new housing building is located adjacent to campus, units are expected to primarily serve UT students.
What they’re saying
During a ribbon-cutting ceremony celebrating the opening of new school facilities Aug. 9, Austin Mayor Kirk Watson said partnerships like this are what preserve Austin's unique character, especially in light of ever-present discussion of affordability within the city.
“What I fear is that if we're not smart, we will create an intergenerational inequity where my generation and some of your generations are able to make the decision to stay [in Austin], but others will not,” Watson said. “Partnerships like this, visionary ideas like this, is exactly what we need to keep this place the place we love.”
Church officials said this agreement establishing affordable housing deepens the parish commitment to the community, a result of the organization’s larger mission of service, faith and education.
“At St. Austin, we are a committed, compassionate community of faith, focused on building bridges and supporting our larger community, while working to alleviate suffering, addressing systemic wrongs, and serving all with openness and love,” Father Rene Constanza said.
Constanza serves as the president of the Paulist Fathers who oversee the parish and school.
About the project
The University of Notre Dame, a renowned private research university and Catholic institution, conducted a case study on the St. Austin redevelopment initiative.
The project was deemed a “model” for future church land redevelopment, according to the report. The study also outlined the positive impact to the community as a whole.
Because the parish must contribute to the diocese tax from its new revenue and Greystar will pay property taxes on the leased land, the St. Austin project will bring financial benefits to both the Austin diocese and the city.
The school also received a "facelift," according to officials, who said the previous school building was over 50 years old.
The new school facilities feature:
- A new gym
- An indoor track
- A skyline bridge providing a connection for students into school
- New classrooms
- Technology, art and library spaces
- A pottery kiln
- A basketball court on the sixth floor with a view of the UT clock tower
- A pickleball court and outdoor play area on the third floor
- Ministry facilities
“For over a century, St. Austin Catholic School has been the heart of education in Austin,” St. Austin Principal Tara Cevallos said in a statement. “Because of our innovative approach to classroom instruction, St. Austin is routinely recognized as one of the top private schools in the Austin area and was the first private school in Austin to be named a Blue-Ribbon School for Excellence by the U.S. Department of Education.”
The school serves pre-K3 through eighth grade, with tuition beginning at around $11,500 for the school year. Tuition assistance and scholarships are available for qualifying students.
Find more information on the school here and the parish here.
