Resource, funding needs will delay South Shore cultural district until 2027

The South Shore Cultural District remains in limbo as the city prioritizes funding and resources for other cultural districts, pushing any substantial progress on South Shore until at least Fiscal Year 2027.

A recent city memo from Anthony Segura, interim director of the Economic Development Department, explained that despite City Council’s directive to support economic and cultural development in the area, financial constraints and conflicting policy priorities mean support for the district won’t arrive for more than a year while the area continues to undergo development.

City Council initially approved the South Shore Cultural District as part of a broader effort to strengthen Austin’s cultural and economic districts.

The district was intended to enhance the cultural fabric of the South Shore area by incorporating public space improvements, cultural programming and support for local businesses and artists in the region that includes the Long Center, the Palmer Events Center, the ZACH Theatre, the Dougherty Arts Center, Umlauf Sculpture Garden and portions of Zilker Park.

Before allocating resources to any new districts, the city committed to first fulfilling obligations to already-existing cultural areas, including the African American Cultural Heritage District, the Fifth Street Mexican American Heritage Corridor, the Red River Cultural District and the existing Souly Austin districts. As a result, no dedicated staff or funding will be available for South Shore until at least FY 27. EDD is currently focused on completing work on cultural districts with preexisting obligations, including infrastructure projects and funding agreements.

One of the key obstacles facing South Shore and other emerging cultural districts is the lack of a structured funding mechanism by the city. Historically, cultural districts have been funded on an ad hoc basis, with resources allocated through budget recommendations and special revenue funds. To address this, Council has directed EDD to develop the Equitable Cultural District Funding Model, which is expected to be presented in spring or summer 2025.

This model aims to ensure consistent funding, taking into account factors such as historical underinvestment and economic impact. Without a clear funding source, the timeline for implementing the model remains uncertain.

The South Shore Cultural District encompasses a mix of public and private developments, but several financial and resource limitations are slowing progress in making needed improvements, including adding pedestrian-friendly pathways and accessibility upgrades.

Several separate municipal projects are under consideration within the district, with the construction of a new Dougherty Arts Center and major improvements to the Umlauf Sculpture Garden among the efforts under consideration for inclusion in the city’s expected 2026 bond proposal.

The memo notes that after completing commitments to existing cultural districts, city staff will begin working on new district development in accordance with the Economic and Cultural District Framework Policy. Full implementation likely won’t take place until well beyond 2027.

The delayed action on the cultural district adds to the state of flux for the overall South Central Waterfront Initiative, which was designed to somewhat guide the development of 118 acres south of Lady Bird Lake to include enhanced public spaces, affordable housing and cultural amenities. Progress in the area has been slowed by legal challenges, funding setbacks and policy delays.

The Save Our Springs Alliance filed a lawsuit against the city in May 2024, challenging the approval of the Statesman Planned Unit Development, which allows for high-density mixed-use construction on the former Austin American-Statesman property. Additionally, a Travis County district judge invalidated a proposed tax increment reinvestment zone in April 2024, eliminating a key funding source for infrastructure improvements in the area.

In September 2024, City Council postponed the adoption of the South Central Waterfront Combining District and Density Bonus Program, citing the need for further deliberation.

Photo by Michael Barera, CC BY-SA 4.0, via Wikimedia Commons.

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