Cap Metro settles with city on East Austin real estate deal that paves the way for wastewater project

The Capital Metropolitan Transportation Authority is selling the city of Austin a piece of land in East Austin to pave the way for the Walnut Interceptor Odor and Corrosion Improvements capital project.

At its meeting on Monday, the Capital Metropolitan Transportation Authority Board of Directors approved the sale of a small plot of land at Loyola Lane and Johnny Morris Road to the city. The agreement will allow the city to construct an odor control facility to address historic odor and corrosion issues facing the Walnut and Little Walnut wastewater basins.

Due to the basin size and siphons, sections of the collection system that pressurize can release noxious odors and have associated corrosion problems. The existing wastewater interceptor is failing, and therefore the city proposed a wastewater “odor control” facility. Construction on the capital improvement project is expected to begin in 2024 and conclude in 2025.

Austin will pay Capital Metro $1,499,673 in exchange for the 1.385 acres of the approximately 44 acres of land it owns along Loyola Lane between the future Green Line and the MoKan Corridor, which stretches to Georgetown and was named after the Missouri-Kansas-Texas railroad that once operated there. Capital Metro acquired the property, which is bisected by Johnny Morris Road, in 2006 as a future transit-oriented development site and station complex. The western half of the site is encumbered by existing City of Pflugerville raw water line easement.

Ken Cartwright, Capital Metro vice president of construction and facilities, said the city initially pursued the tract under state condemnation law, but Capital Metro decided to settle and allow the city to purchase the land at market rate. Capital Metro is amenable to the arrangement as long as the city’s wastewater improvement project doesn’t impair or delay Capital Metro’s development of its remaining property.

“And they have been looking for sites in this vicinity for that particular infrastructure and were only able to identify this site as the only viable site in this particular area for this odor control facility,” Cartwright said.

The city retained independent appraisal firm Hornsby & Company to determine fair market value of the property and found the 60,349 square feet to be worth a total amount of $1,499,673. Capital Metro agreed with the assessment.

“We do agree with the valuation, and so the staff recommendation would be to move forward with this acquisition by the city of Austin,” Cartwright said.

The board approved the resolution, which authorizes CEO Dottie Watkins to finalize the purchase and sale agreement, unanimously.

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Posted In: Transit, District 1