Council set to commit $15.4 million for design work on I-35 caps and stitches

City Council plans to move forward with adding four plaza-like caps and four “stitch” crossings to portions of the reconstruction of Interstate 35.

A memo released yesterday from Transportation and Public Works Department Director Richard Mendoza updates Council and Mayor Kirk Watson on the timeline and funding options involved in the cap-and-stitch effort, which is projected to cost more than $500 million on top of the state’s budget for sinking and expanding the roadway.

Council has four items on the agenda related to the caps and stitches, including a budget amendment that will pay the Texas Department of Transportation $15.4 million to cover the initial design work for the caps and stitches.

The memo lists four caps: Cesar Chavez Street through Fourth Street; Fourth Street through Seventh Street; 11th and 12th streets; and 38 1/2 Street through Airport Boulevard. The stitches will be enhanced east-west crossings at Holly Street, 32nd Street, 51st Street and Woodland Avenue.

Other I-35-related items on Thursday’s agenda include an ordinance amendment increasing the Public Works budget to cover the $15.4 million design cost, a notice of intent to recoup the design costs with future tax-exempt obligation instruments, and an amendment to an advance funding agreement issued last year.

The payment for initial design work puts the city on the clock, with a requirement to pay another $19 million in design costs by next December. At that time, Council will also have to deliver to TxDOT its funding plan to cover the estimated $543 million cost for the eight caps and stitches, which will require an additional $336 million to add public amenities in the plaza areas.

At a November work session, Council members discussed the many construction and funding scenarios for the caps and stitches, with some expressing frustration that the state will not contribute toward what are seen as essential enhancements for the project.

At that meeting, Council also discussed the various funding options for the caps and stitches including federal grants, a Transportation Infrastructure Finance and Innovation Act loan that could be repaid over 40 years, voter-approved bonds, cash from reserve funds or certificates of obligation. In February, the city is expected to learn if it will receive roughly $100 million from the Federal Transit Administration to cover costs for the Cesar Chavez to Fourth Street cap.

The memo also includes a breakdown of the state and federal funds that were put toward the construction of the Klyde Warren Park and Southern Gateway in Dallas, which is seen as similar to Austin’s cap and stitch efforts.

The caps are seen as a crucial component of the I-35 project because of the potential to reconnect the eastern and western portions of the city that were divided as a result of the city’s segregationist 1928 plan.

While the design work is set to begin on the caps and stitches, Council has also expressed in recent months a number of concerns about the larger $4.5 billion project. Those include pausing state and other local funding until a pair of environmental studies are complete. And last month, Council members José Velásquez and Zo Qadri and Mayor Pro Tem Paige Ellis participated in the “Wider Won’t Work” rally held in opposition to the expansion.

In October, the state began issuing the notices to vacate to the more than 100 homes and businesses that will be displaced by the construction in the coming years.

The memo also includes an extended timeline for the cap-and-stitch portion of the project, with full design work completed in spring 2026. Any changes to those structures would need to be filed by 2027.

Photo made available through a Creative Commons license.

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