Rally Austin has identified $259 million in projects and initiatives to be funded through the city’s 2026 bond election, with plans to expand programs supporting cultural venues, legacy businesses and affordable workspace.
There appears little chance that total amount of funding will be included in the final bond package, which is expected to top out at just under $700 million. But the proposal serves as a roadmap for the organization’s evolving role in economic development for the years ahead.
The presentation at last week’s Downtown Commission meeting offered a closer look at both the proposal and Rally’s current level of involvement in dormant city-owned sites such as HealthSouth, the former police headquarters and the historic municipal building.
According to the proposal, the largest portion — $135 million — would support the expansion of the Austin Cultural Trust. That money would enable the acquisition of up to 10 cultural venues, fund capital improvements to existing facilities and provide rental subsidies or technical assistance for as many as 20 local arts organizations. Rally Austin could also build on its existing cultural investments, including projects with Hole in the Wall and the Millennium Youth Entertainment Complex.
Another $45 million is proposed for a new “Legacy Business and Commercial Trust” to acquire properties, offer low-interest improvement loans and provide financial and advisory support to up to 100 legacy businesses across Austin that are seen as economically threatened.
A third component, the $79 million “Affordable Workspace and Workforce Initiative,” would target the development of live/work housing and creative workspace. This could include acquisition of three to five sites and gap funding for 50 to 100 affordable units.
The proposal projects a combined economic impact of $1.12 billion to $1.7 billion, based on anticipated leverage from private and philanthropic partners. Final allocation decisions will be made by City Council ahead of the bond election scheduled for August 2026.
Rally Austin Chief Operating Officer David Colligan reviewed the group’s prior involvement in several high-profile downtown properties. He noted that Rally is not currently managing or actively planning redevelopment on any of the sites under discussion even though that has been referenced in past Council resolutions.
Regarding the historic municipal building that is sometimes referred to as Old City Hall, Colligan said the city asked Rally to assess the feasibility of using the fourth floor as creative space. That analysis found the configuration unsuitable due to height restrictions and accessibility concerns. No further direction has been provided since.
“Council directed city staff to explore the development of the municipal building and how it is we could be of support in that. One part in the resolution even said to possibly transfer the property to Rally, which would be wonderful,” Colligan said. “However, when the request filtered its way through the organization, it came to us as ‘How would you utilize the fourth floor of this facility for creative purposes?’ I don’t think that’s what the community had in mind.”
A separate reuse study of the site was later conducted Urban Land Institute Austin.
Colligan also addressed questions about the former HealthSouth rehabilitation facility and the Austin Police Department headquarters, which are both owned by the city and were identified by commissioners as potential redevelopment priorities. He noted that conversations around HealthSouth had stalled following internal decisions by city departments. Rally has not yet been brought back into the process.
Rally has not been formally involved in any redevelopment planning for the police headquarters, though ULI has published conceptual reuse recommendations for that site as well.
Colligan noted that Rally Austin is currently working with Austin Independent School District on development opportunities at two school district sites and is exploring potential partnerships with Travis County and state agencies. He emphasized that ownership or site control, rather than advisory status, would offer the organization the ability to use financing strategies unavailable to city departments.
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