City seeking developers interested in East 11th Street revitalization

The city is looking for developers interested in remaking two of the most high-profile blocks downtown, which could shape the future of the Black community in East Austin.

Last month the Austin Economic Development Corporation (EDC) opened a request for qualified developers who could take on one or both of the blocks along East 11th Street just east of Interstate 35, known in local planning circles as Blocks 16 and 18. The first phase, which is open until early November, is intended to familiarize local developers with the area and the project that has gone through several visioning and community feedback processes since the city first made it a revitalization priority in the late ’90s.

Consistent priorities for the two blocks include offering affordable housing, cultural venues or spaces, a small grocery store, and small businesses that can serve the neighborhood.

Applicants who are found to have the capability to lead the redevelopment while addressing the equity needs of the area will be invited to the second round of the request for proposal (RFP) process, which will begin in January, and move toward full plans, including financing scenarios.

The EDC’s analysis completed as part of the RFP paperwork notes the projects could accommodate 120 mixed-income housing units, 62,000 square feet of commercial space – divided as 30,000 square feet for cultural use, 15,000 square feet for food-based retail, and 17,000 square feet for creative workspace – as well as 4,500 square feet of green space and 350 parking spaces.

The redevelopment of the two blocks has been one of the main priorities of both the Urban Renewal Board and the Community Development Commission for years, with both bodies concerned about the pace of gentrification and displacement taking place in East Austin.

City Council Member Natasha Harper-Madison, whose district includes the redevelopment site, said neighborhood residents have been consistent in their needs for the area through multiple feedback sessions in recent years.

“For mixed use, the main request is for a grocery store, even if it must be small. The community also wants to make sure that the existing cultural elements like Kenny Dorham’s Backyard either remain or are given space to evolve with what the new development is going to be. Other requests include outdoor performance spaces, pocket parks, creative and non-profit office space, restaurants, and a convenience store,” she said via email.

“Good lighting, thriving small business, pocket parks, access to transit, safe spaces for families – children and our aging population … in my sweetest dreams, access to an opportunity to direct connections to East/West would be a beautiful development. Placemaking and acknowledgment of the history of the African American Cultural Heritage District are imperative.”

Anne Gatling Haynes, who is the EDC’s chief transactions officer, said there are forms of assistance such as New Markets Tax Credits that can help fill in financial gaps in development plans, but there’s likely to be a preference for projects that can attract outside investment while including as many community needs as possible.

“Teams are definitely going to have challenges in terms of predicting not just what the market is like now and how they would do the project, but also what’s ahead in two years since the real financing closure is going to be a couple of years from now,” she said. “Any developer right now is looking into a crystal ball. They’re measuring and modeling both high and low expectations for what the market would provide and they can’t possibly pin themselves down to one financial model. What we are hoping for as part of phase two is that they’re going to show us the high and low feasibility options.”

Photo by Nathaniel made available through a Creative Commons license.

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