Council takes next step toward new density bonus plan along rail line

City Council last week approved a resolution designed to increase Austin’s chances of winning federal money to assist in building the first phase of Project Connect with an emphasis on development of housing for low- and middle-income residents along the rail line. In addition, the resolution directs staff to modify downtown parking regulations and amend the East Riverside Corridor Regulating Plan by creating an Equitable Transit-Oriented Development (ETOD) overlay for properties located on or near the rail line. The new overlay will offer opportunities for creation of a density bonus program within the ETOD district.

According to a memo from staff, the Austin Transit Partnership expects to submit its application to the Federal Transit Administration for initial scoring in late summer. That means city staff will be recommending regulatory changes including creation of a new density bonus program, modifications of downtown parking requirements and creation of the overlay along the Project Connect phase one line by June. Council has been contemplating parking changes for Project Connect for at least a year.

Most Council members seemed enthusiastic about the plan, with only Council Member Mackenzie Kelly voting no. She said, “There are a lot of unknowns and concerns that have been described to me by the community, and as such, I just can’t support it.”

Council Member Alison Alter voted in favor of the resolution but also raised some concerns. She said, “I’m comfortable moving forward with this item, recognizing that it presents great opportunities for us to increase our housing supply where we most want to see that growth. However, I do anticipate that some permutations of these changes … may cause some concerns in the community. And I hope that we will be ready to respond to those concerns and be open to creative problem solving. I look forward to what comes back,” she concluded, but added that she would be looking closely at the details before finally deciding to support the ordinances.

“Deeply affordable multifamily housing with access to transit is the only way we can work to minimize the displacement of lower- and middle-income Austinites,” Council Member José Velásquez said. “We’re seeing this across the city, but particularly across the eastern crescent. Here we have an opportunity to be specific about what is needed – and that is an affordable, walkable, connected city for the people and families that need it most. I support these measures toward achieving that goal and making Austin a realistic long-term home for the people who keep this city running. And I thank my colleagues for all their hard work.”

Council Members Chito Vela and Zo Qadri offered amendments making relatively minor changes to staff’s proposal but offered no other concerns about what might be returning to Council.

Before taking the vote, Council heard from a variety of citizens, most of whom indicated support for creation of the density bonus program and elimination of downtown parking.

“Improving public transportation is one of the most important efforts in Austin, but in order to have truly successful transit, we need transit-supportive land use,” Edgar Handal told Council. “That means dense mixed-income housing all along our transit line so that more people of various income levels have the ability to walk, bike or roll to a nearby transit station. Not only is this important to increasing access to transit and the long-term success of our transit investments, but it will be key in getting the federal grants that we really need to get our transit built.”

Bill McCamley, executive director of Transit Forward, said his group is an Austin nonprofit focused on education and engagement on Project Connect with an emphasis on overall transit issues in Austin. He told Council, “Transit Forward understands the critical importance of reforming housing policy along transit corridors, and is thankful to City Council and staff for taking this issue on with Item 54 today.

“We believe that if these items can be completed in the spring, it will offer the Austin Transit Partnership a strong argument to make for the federal government when evaluation begins in June. For the $2.5 billion grant needed to complete the light rail portion of Project Connect, we respectfully but strongly request that discussion on these items continue with the passage of this resolution,” he said.

McCamley added that it was critical for Council to pass the final ordinances by June in order to assure that the zoning overlay for the rail corridor stay intact and that “direct discussions with downtown interests continue” in order to reach a broadly acceptable position on parking.

AURA Board Member Felicity Maxwell said her group has been focused on urban rail for the past 10 years. “Understanding that Austin needed additional housing density to broaden our transit options, with the initiation of the item today we can celebrate a huge milestone in our advocacy. Not only did Project Connect pass overwhelmingly in 2020, we are now on the cusp of creating significant and meaningful housing policy to support our generational transportation investments. In addition to being good urban policy, transit-oriented development overlay is also excellent fiscal policy.”

The overlay, she said, “ensures that we’re allowing the best and highest use for land parcels near our transit investments while keeping equity at the forefront. This means it will be upgrading our tax base, enhancing our built environment and making it possible for more Austinites to live and work near transportation.”

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