City Council voted 8–3 on Thursday to purchase a commercial property on South Interstate 35 to serve as the city’s first housing navigation center for people experiencing homelessness, following hours of debate and neighborhood opposition. The votes against the purchase came from Council members Marc Duchen, Zo Qadri, and José Velásquez.
The 1.39-acre site at 2401 S. I35, currently home to an auto sales business, will cost the city about $4.4 million. City staff said the property was appraised at $4.35 million and will continue generating rent until the current lease expires in March 2026. The purchase will be funded through the Austin Housing Capital Budget.
The navigation center will act as a central intake and referral facility, connecting unhoused residents or those at risk of losing housing to case management, health and behavioral services and housing programs. The facility had been expected to replace and expand on the functions currently provided by the Sunrise Navigation Center in South Austin, though Council member Ryan Alter backed away from that certainty in recent news coverage.
Dozens of residents and advocates spoke for nearly two hours before the vote, offering sharply opposing views about the project and its location near the intersection of Oltorf Street and I-35.
Opponents, largely from the Parker Lane, Greenbriar and Travis Heights neighborhoods, argued the city moved too quickly with too little public notice or data to support the decision. Many cited safety concerns tied to crime, drug use and the proximity of nearby schools and parks, saying the area already faces chronic public safety challenges. Several speakers pointed to the Sunrise Navigation Center’s past management and neighborhood impacts in South Austin as reasons to delay or reconsider the purchase.
Supporters, including nonprofit leaders, faith-based organizations and formerly unhoused residents, said the new facility would provide a safe, controlled, indoor setting that could reduce neighborhood impacts by bringing services under one roof. They emphasized that the site meets city criteria for transit access, distance from sensitive uses and available space, and said navigation centers are proven to help people transition more quickly from homelessness to stable housing.
Prior to the vote, Velásquez said he opposed the purchase because he and others in the community hadn’t had enough time to study the proposed center’s possible impact on the surround area.
“I am voting no, not because I oppose the mission, not because I oppose the resources, and it sure as hell is not because I’m turning my back on our unhoused neighbors or my faith that commands me to serve those most in need,” said Velásquez, whose district includes the property in question. “I’m voting no because I have personally not had enough time with this item… and I’m voting no because I have not had sufficient time to dispel the rampant misinformation surrounding this issue.”
Alter said the facility will help the city increase its efforts in preventing homelessness via rental assistance or placement into housing, which he and others have noted is a more cost-effective way to address homelessness.
“This is one piece of the overall plan, and it is identified as something that we need in other areas of the city.” he said. “Not one place should have all the services for everyone who needs it, and that is what (the Homeless Strategy Office) has identified, and this is the first step in that process.”
Duchen, who offered an unsuccessful motion to delay the purchase decision, cited insufficient community engagement, uncertainty about future operations, and the need for more detailed safety and management planning. Qadri, whose district boundary ends across the street from the purchase location, said he supported the goal of a navigation center but wanted “stronger community engagement, clearer operations planning, and a timeline that ensures the project succeeds.”
City staff can now finalize the acquisition and begin planning for site renovations and service delivery, with additional Council approval required for contracting and build-out. Officials with the Homeless Strategy Office said public engagement will continue as plans are developed over the coming year.
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