02.1 - Briefing - Rally Austin 2026 Keep Austin Ours Bond Proposal Presentation HLCommission 20251001 — original pdf

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R66j  z qwGZ ‘ z mq - ÞéÿÏ ¹ èâéÞÉ , Ï Éˇ j ÝÏ ÛÏ â„ Â wE GZ R , GA i  , - ‘ TT ‘ m wGƒ 6 Rally Austin is the first multi-purpose local government corporation, requested by the community and created by the Austin City Council in October 2020  Community driven, Equity focused  Designed to be agile, mission-driven, collaborative and flexible  Bring new financial tools and resources to the table and generate consistent revenues  Professional approach to community investment and project delivery  Y GqqG‘ Z Facilitating equitable development for economic growth while preserving Austin's unique culture. ƒ GqG‘ Z A culturally resilient and economically integrated Austin where diverse communities thrive without risk of displacement. TŁ„ ˇ ÞɬÞÉõŁâéÇ ŁÉéâÞÉÏ èÝ ¨ Ï Ç Ç èÉÞéÿ„ â„ ¨ Ï Ç Ç èÉÞéÿ Rally will focus its efforts to unite and drive progress across three critical areas of development in Central Texas: mwqY z qG- i - z Twz m6 - ‘ Y j T6w6- ‘ Y Y z Z GwG6q - w T› wG- 2 6ƒ 6T‘ j Y 6Z w  ‘ z m- ‘ Y Y z Z Gw›  w§ ‘ mR Board of Directors Collaboration of community leaders and nominating bodies who represent local organizations and asset holders. § E ‘ § 6 m6   - wGƒ 6- ‘ Y Y z Z Gw›  GZ ƒ 6qwY 6Z wq Real estate projects valued at approximately $160M, securing an estimated 293,000 square feet of affordable space:  180,000 SF Affordable housing  86,000 SF Cultural spaces  14,000 SF Commercial spaces  13,000 SF Outdoor and shared spaces Collective economic impact projected between $320 to $400M, also providing community benefits:  Job creation and tax revenues  Property value increases  Tourism and cultural preservation  Soul and vitality ‘ z mm TT› @‘ m - ‘ Y j T6w6 - ‘ Y Y z Z GwG6q ‘ z mm TT› @‘ m mwqY z qG- i  - z Twz m6 ‘ z mm TT› @‘ m - w T› wG-  2 6ƒ 6T‘ j Y 6Z w Mixed-use development Seven real estate Rally moves large-scale, for Blocks 16 & 18 on development projects multi-million-dollar East 11th Street in the valued at $37.5M with an development and African American estimated $75M-$94M infrastructure projects Cultural Heritage District, return on investment. and serves as a flexible building thriving small This area of focus has bridge between public, businesses, cultural led to the successful private, and community anchors and affordable negotiation of a new 20- interests to unlock housing. With a current year lease for historic diverse funding sources project value estimated music venue The Hole in and deliver value and at $128M, and an the Wall and several benefits for all partners. estimated impact of other arts and culture $256-320M. venues.  RALLY AUSTIN PROPOSED 2026 COMMUNITY INVESTMENT BOND  Overview of Process  Problem Statement  Proposed Solutions  Rally’s Approach  Invest in Our Identity: Keep Austin Ours!  wE GZ R , GA i  , - ‘ TT ‘ m wGƒ 6 ‘ ƒ 6mƒ G6§  The City Staff developing an inventory of needs/request from the organization and community for the 2026 Bond Election.  Bond Election Advisory Task Force (BEATF) created by Austin City Council and staffed by Capital Delivery Services.  Rally presentation to BEATF – July 28, 2025   Community Project Idea Submissions (list)- September 24, 2025 Initial Request and Update (memo) – July 31, 2025  BEATF Working Groups meetings: Aug – Jan 2026  Community Input Events: Fall 2025  City Staff’s initial recommendation to Council: Nov 2025  Working Groups recommendations to BEATF: Jan – April 2026  BEATF recommendation to Council: May 2026  City Staff’s final recommendation to Council: June 2026  Council finalizes bond package and calls for the bond election by Aug 6, 2026   Red Wassenich called in a donation to “Keep Austin Weird” during The Lounge Show on KOOP Radio in Spring 2000. Riley Triggs called “time of death for WEIRD” in Fall 2012, claiming Austin as “cool” because of the imbalanced relationship between creating and extracting weird. the phrase—with BookPeople and Waterloo Records “Support used Local Business” tacked on—as part of protesting a proposed City $2.1 million incentive for a mega-retailer Borders Books to build right across the street, a development that almost assuredly would have led to the death of both iconic businesses. local, All sizes available in 10 colors at The Austin Chronicle Shop April 2025.  Austin’s legacy of creativity and culture isn’t just identity— it’s an economic engine that has fueled our growth for decades. References:  Creating the Technopolis (1989)  Sustaining the Technopolis (2013)  Brookings: Why Invest in Transformative Placemaking  CBRE: The Power of Placemaking  Fourth Economy: The Return on Investment of Placemaking  IEDC: Place Matters- The Role of Placemaking in Economic Development +87% since 2015 MEDIAN HOME PRICE +4.3% Year -over -year increase COMMERCIAL RENTS 50% have closed or relocated * - ‘ Y Y 6m- G T @@‘ m2 6 - ‘ Z ‘ Y G-  2 6 ƒ 6T‘ j Y 6Z w , GTGw› Gq AT RISK:  Loss of cultural venues and closure of small, local and legacy businesses  Workforce displacement and barriers to workforce retention  Decrease in tourism and experience economy  Loss of diversity and resulting opportunities for industry development and business LIVE MUSIC VENUES growth 98% in “Urgent Need” of affordable space ARTISTS The loss of our unique and beloved Austin identity, exposes the region to decline in economic opportunity, tourism and community engagement.  RŁ Ł Û èâéÞÉ ‘ è Ýâ  GÉõŁ âéÞÉ ¬ÞÉ é½Ł TÏ ¨ „ Â G¨ Ï É Þ¨ „ É ˇ GÝÝŁ Û„ ¨ Ł „ ˙ ÂŁ Rally Austin’s 2026 Bond Proposal Delivers solutions and leverage partnerships to:  Securing affordable commercial space  Elevating “local and iconic” for success  Retaining our creative community  Capture additional investment in Our Austin  Reduce fiscal burden to the City LEGACY BUSINESS PRESERVATION & COMMERCIAL TRUST Preserve legacy businesses by securing commercial spaces, offering capital improvement tools, long-term lease security, and financial support for business growth. EXPANSION OF THE AUSTIN CULTURAL TRUST Additional funding and support to continue securing a variety of creative and cultural spaces, while establishing a sustainable Austin Cultural Trust. AFFORDABLE WORKSPACE & WORKFORCE INITIATIVE Develop affordable working spaces by acquiring and preserving creative infrastructure and supporting mixed-use projects with workforce housing.  - ‘ Y j m6E 6Z qGƒ 6 j j m‘ - E w‘  q6- z mGZ A  - ‘ Y Y z Z Gw›  GZ ƒ 6qwY 6Z wq - ‘ Y j m6E 6Z qGƒ 6 GZ ƒ 6qwY 6Z wq j 6mw›  - l z GqGwG‘ Z j m‘ Acquire privately owned properties to provide deeper affordability, increased access, and greater sustainability. This property acquisition fund would be leveraged on behalf of the City with economic development tools and development partners to produce public benefits for the community. - j Gw TGY j m‘ ƒ 6Y 6Z w - ‘ Z qwmz - wG‘ Z Execute or facilitate capital improvements, redevelopment or new construction to provide greater revenue generation capacity to stabilize and grow local businesses, creative sector and legacy businesses, most at risk for displacement or closure. Z qA m Z wq Z 2 j m‘ A m Y qz j j ‘ mw T‘ Create a loan/grant pool to help organizations advance their own projects, supporting pre-development feasibility, operational and capital subsidies and loans, and related technical assistance to help projects to advance to investment readiness as well as leverage additional sources (such as seed a loan fund that includes private financial institutions capital).  6‹ j Z qG‘ Z ‘ @wE 6 z qwGZ - z Twz m T wmz qw 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w PROBLEM 50+ cultural spaces at risk of displacement and/or closure (Source: Community Impact) ~$300M shortfall for cultural programs SOLUTION Bond funding is one of the tools available to secure venues through property purchases, long-term leases, & restoration grants IMPACT , ÿ½ŁÂÛÞɬâ„ õŁÞɡ ŁÛŁÉˇ ŁÉé „ ɡ ŁÉˇ „ ɬŁÝŁˇ ¨ ÝŁ„ éÞõŁâÛ„ ¨ Łâ Every $1 invested generates $4–5 in economic returns from m„ ÂÂÿ èâéÞÉÞâ˙ „ ŦÞɬ„ éÝ„ ÞÂ齄 é tourism & events „ ÂÞ¬Éâš Þé½é½Ł¨ Þéÿ∑âRŁŁÛ èâéÞÉ § ŁÞݡ Ç Ï ééÏ  Why This Matters: The Cultural, Creative and Experience Economies generate $1.8B+ in annual — AUSTIN MONTHLY economic activity and is a core value in our Z ‘ ƒ 6Y , 6 m 2 6 - 6 Y , 6 m  identity as a city.  , 6qwj m - wG- 6qi j 66m- GwG6q San Francisco’s Community Arts Stabilization Trust (CAST): A nonprofit real estate trust that acquires arts venues via public/philanthropic funds and lease-to-own deals. CAST has invested $16.5M in a $69.3M portfolio of six spaces since 2014, delivering 83,267sf of affordable creative space by leveraging $52.8M in public, private and philanthropic funding, and $11M in New Market Tax Credits. • 447 Minna welcomes a range of arts and cultural practices spanning from visual arts to performing arts, contemporary to experimental, and everything in between. Stewarded as a cultural community hub by CAST, the physical space provides 10,200 sf for artist’s or arts organization’s needs. Total cost of the facility was $13.2M, with CAST contributing $6.2 and leveraging $3.9M in public, private and philanthropic funds, and $3.1M in NMTC. The School of Arts and Culture at the Mexican Heritage Plaza activates the Mexican Heritage Plaza, a 6- acre, city-owned facility with an expansive plaza and theatre. CAST invested $1M in the $24M project, establishing partnerships with School of Arts & Culture, Gardner Health Center, Ventura Partners, Equity Community Builders to deliver 28,200 sf for affordable rehearsal, class, event, performance, and meeting space. • Additional Peer City Examples • Chicago Utilizes Tax-Increment Financing (TIF) and bond funds to renovate neighborhood arts centers and music venues, ensuring cultural amenities in underserved areas. The city’s Neighborhood Opportunity Fund provides grants up to $250K for cultural facility build-outs on the South and West Sides. • Pittsburgh Cultural Trust: A private nonprofit, Pittsburgh’s trust leveraged philanthropic capital and city support to revitalize 14+ blocks into an arts hub. The result was not only preserved cultural landmarks but a boost in tourism and local business. • New Orleans: Though not a formal trust, New Orleans actively promotes legacy music establishments as tourism attractions, highlighting that investing in cultural preservation boosts economic activity. Tourists flock to historic clubs, proving that saving cultural spaces enriches a city’s brand and yields long-term revenue (cultural tourism). 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w   z qwGZ ∑q- z Twz m Twmz qw The Austin Cultural Trust represents $27 million of various funding sources available for investment and deal structuring. Since evaluating $350M of need in 2022, Rally has dedicated $17.85M to seven projects valued at $37.5M, securing 53,570 sf of affordable creative and cultural space, with an estimated impact of $75M to $94M. 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w S T C E J O R P D N O B $4.2M j ŁÝÇ ÞééÞɬi  2 ŁõŁÂÏ ÛÇ ŁÉé - ŁÉéŁÝ 2 ŁâÞ¬ÉÏ ¹ , „ ¨ ©, Ï ý w½Ł„ éŁÝ mèˇ ŁY Ł¨ ½â „ ɡ , „ é- „ õŁ $400K Y ÞÂÂŁÉÉÞèÇ  › Ï èé½ 6ÉéŁÝé„ ÞÉÇ ŁÉé - Ï Ç ÛÂŁý - Ï ÉâéÝè¨ éÞÏ É w½Ł„ éŁÝ mŁÉÏ õ„ éÞÏ É $4.5M èâéÞÉ j „ ÿ½Ï è⣠j ÝŁˇ ŁõŁÂÏ ÛÇ ŁÉé ¬ÝŁŁÇ ŁÉé - „ ÛÞé„ Âj ÝÏ ðŁ¨ é $2.5M Y èâŁèÇ Ï ¹ E èÇ „ É ¨ ½ÞŁõŁÇ ŁÉé ¬ÝŁŁÇ ŁÉé - „ ÛÞé„ Âj ÝÏ ðŁ¨ é $2.2M 6Ç ÛÞÝŁ j ÝŁ - Ï ÉâéÝè¨ éÞÏ É ¨ ÙèÞâÞéÞÏ É TÏ „ É $1.6M E Ï ÂŁÞÉé½Ł § „  j Ï âé - Ï ÉâéÝè¨ éÞÏ É ¬ÝŁŁÇ ŁÉé - „ ÛÞé„ Â GÇ ÛÝÏ õŁÇ ŁÉéâ „ ɡ mŁÉé qéÞÛŁÉˇ $250K RŁÉÉÿ 2 Ï Ý½„ Ç  , „ ¨ ©ÿ„ ݡ - „ Û„ ¨ Þéÿ , èÞ¡ Þɬ ¬ÝŁŁÇ ŁÉé j ÝŁâŁÝõ„ éÞÏ É ââŁââÇ ŁÉé¹Ï Ý j „ ÉÉÞɬ 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w @z Z 2 GZ A , ›  - wGƒ Gw›  Z 2 ‘ z w- ‘ Y 6q Activity Funding Anticipated Outcomes Potential Partners Projected Leverage & Impact Property Acquisition (Cultural Trust) $80M Acquire 8 to 10 venues, securing an additional 100,000+ sq ft cultural space • Public Funds • Surplus Properties • Private Contributions • Earnings Capital Construction $50M Major capital improvements to 8 to 10 sites, newly acquired sites or existing cultural facilities • Public funds • CDFI/NMTC • Fundraising • Grants • Earnings Loans, Grants, & Program Support* $5M Rent subsidies, technical support and grants for 10 to 20 organizations and administrative costs. Total $135M • Public Funds • Philanthropic • Earnings • Grants • In-kind Contributions Estimated $345M Leverage • Leveraging ratio of between 1:2 and 1:4 • Project Economic Impact between $320M to $640M • Leveraging ratio of around 1:2 • Project Economic Impact between $200M to $250M • Leveraging ratio of between 1:1 and 1:2 • Project Economic Impact between $10M to $20M $530M to $910M  T6A - › , z qGZ 6qq j m6q6mƒ wG‘ Z i  - ‘ Y Y 6m- G Twmz qw 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w PROBLEM Local businesses lack property ownership, susceptible to market conditions that lead to displacement or closure. SOLUTION Funds, methods and support to address commercial affordability for our small, local and legacy businesses IMPACT Small business makeup 81% of our economy. Every $10 spent at a locally-owned store puts $5 recirculating in our local economy versus only $2 of every $10 spent at a chain. Why this matters: Small, local and legacy businesses enhance communities and neighborhoods, creating place and authenticity, while employing thousands and keeping wealth in the community. 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w , 6qwj m - wG- 6qi j 66m- GwG6q Community Commercial Trusts: A new approach to combat displacement of local businesses is the community-owned commercial real estate trust. • Philadelphia’s Kensington Corridor Trust enabled the community to collectively purchase and manage storefront properties, ensuring affordable rents for local tenants. In just five years, the Kensington trust acquired 30 properties valued at $7M, by raising over $15M in community investments and grants. This demonstrates a 2:1 leverage (every $1 in assets backed by $2 in mission-driven capital) and a replicable approach to keep real estate in local hands. • In Oakland, the East Bay Permanent Real Estate Cooperative (a community land trust) has bought small retail buildings to keep legacy retailers in place. These trusts use seed funding from public or philanthropic sources and then leverages community investment and impact capital to grow. San Francisco’s Legacy Business Program has registered 150 businesses and delivers small but impactful grants annually. It effectively incentivizes long leases (through landlord grants up to $22.5K/year) and offsets costs for businesses ($500 per employee). While these grants are modest, the program’s true power is in official recognition and technical help, which over two dozen cities have since replicated. Chicago’s Small Business Capital Grants: Chicago’s Neighborhood Opportunity Fund (NOF) is funded by fees on downtown developers. NOF has awarded tens of millions in grants to small businesses for storefront buildouts, rehab, and even acquisition (part of larger projects). NOF grants cover up to 75% of project costs up to $250K. Los Angeles & Others: Inspired by San Francisco, cities like Los Angeles, San Antonio, and Washington D.C. have introduced Legacy Business registries and grant programs in recent years. Many offer modest financial aid or commercial rent subsidies to businesses over 20-25 years old. The trend underscores a growing consensus: public investment is needed to help iconic local businesses survive against rising rents and redevelopment. 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w , mGZ A GZ A wE 6j G6- 6qw‘ A 6wE 6m Preservation Austin Definition: “A locally-owned and operated business that is at least 20 years old,” with added weight if it (a) contributes to a neighborhood/city identity, (b) is multigenerational, (c) has had singular ownership 20+ years, or (d) has operated in the same/original location 20+ years. City of Austin precedent (COVID-era program) The Austin Legacy Business Relief Grant defined eligible public-facing businesses established in Austin 20+ years; sectors included arts orgs/venues, bars, restaurants, studios, childcare, and live performance/music venues. Also required a physical, publicly-facing location, continuous operation (≤2-year break), Austin HQ/first location, and contribution to Austin’s character. State & Federal Preservation Finance • Historic Tax Credits – 20% federal + 25% Texas credits for qualifying rehabs of designated historic, income- producing buildings; Texas credits are transferable/sellable and may offset franchise or insurance premium tax. • Main Street America – preservation-based economic development resources and regular grant roundups useful for legacy corridors/districts. • National Trust for Historic Preservation – periodic small-grant programs • Heritage Preservation Grant – supports capital, planning, education, or marketing at historically designated site (useful if the business operates in a designated historic building). • Small Business Division Resource Directory – one-stop directory for training, coaching, and partner orgs (Technical Assistance and capital navigation). @z Z 2 GZ A , ›  - wGƒ Gw›  Z 2 ‘ z w- ‘ Y 6q Activity Funding Anticipated Outcomes Potential Partners Property Acquisition (Commercial Trust) $20M Commercial Trust to acquire and hold 5 to 10 legacy businesses. • Public Funds • Surplus Properties • Private Contributions • Earnings Capital Construction $20M Low interest capital improvement loans for 80 to 100 legacy businesses to remain viable. • Public funds • CDFI/NMTC • Grants • Fundraising • Earnings 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w Projected Leverage & Impact • Leveraging ratio of around 1:2 • Project Economic Impact between $80M to $100M • Leveraging ratio of around 1:2 • Project Economic Impact between $80M to $100M Loans, Grants, & Program Support* $5M Legacy Business Fund for financial incentives and advisory services to 60 to 100 legacy businesses, and administrative costs. • Public Funds • Philanthropic • Earnings • Grants • In-kind Contributions • Leveraging ratio of around 1:1 to 1:2 • Project Economic Impact between $10M to $12.5M Total $45M Estimated $45M Leverage $170M to $213M , T6 @@‘ m2 § ‘ mRqj - 6i  § ‘ mR@‘ m- 6 GZ GwG wGƒ 6 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w PROBLEM Lack of affordable workspaces and dedicated workforce housing options to support a variety of individuals and occupations SOLUTION Funding, methods and support for negotiating spaces in Austin while piloting workforce housing in mixed-use or a variety of development types IMPACT Affordable workforce housing, workspace, and community- centered development Why this matters: In support of our investments in infrastructure to reduce transit impact and our vision for complete communities. 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w , 6qwj m - wG- 6qi j 66m- GwG6q Affordable Artist Housing Developments: Across the country, cities have partnered with specialized developers to build affordable live/work housing. The nonprofit Artspace has created over 60 such projects nationwide, including live/work lofts in cities like Minneapolis, Seattle, and New Orleans. • New Orleans: The Bywater Art Lofts (37 units, opened 2008) and Blue Plate Artist Lofts (72 units in a historic factory) were created through layered public/private financing, including Low-Income Housing Tax Credits, historic preservation credits, and city support. These projects achieved extremely low rents for artists (as low as $160/month), ensuring creatives can afford to live and work in the city. New Orleans’ Artspace projects not only provided over 100 affordable units and studios, but they also catalyzed neighborhood revitalization, as the arts presence in Bywater spurred new galleries, cafés and an uplift in property values nearby. This demonstrates how public investment (gap funding and tax credits) leveraged $3–4 for every $1 to build lasting creative infrastructure, with cultural and economic returns for the community. Creative Workspace Conversions: Not all artists need housing; many just need a place to work. Cities have found innovative ways to supply studios. • Philadelphia’s Creative Adaptive Reuse (Cherry Street Pier): Philadelphia converted a defunct municipal pier into a bustling creative marketplace with artist studios, event space and public markets. This city-driven project took an underused asset and, with public funds and private partnership, created affordable studios and public art space on the waterfront. In its first five years, Cherry Street Pier hosted dozens of resident artists and attracted visitors, proving that investing in creative workspace activates blighted spaces and drives foot traffic. • Chicago Artists Coalition space and has used initiatives like the TIF-funded Zhou B Art Center expansion, partly funded by TIF dollars, provided dozens of new studios in a repurposed industrial building. The city-backed incubator offers low-cost workspace and professional development. These efforts show how a city can invest strategically (through grants or favorable leases) to grow a creative sector ecosystem Rental Assistance & Grant Programs: A few U.S. cities have begun offering direct rental assistance to artists. San Francisco has an Art Space Assistance Program (funded in 2017 with one-time $2M) that gave grants to artists and arts organizations for rent hikes and displacement. New York City, through its Affordable Real Estate for Artists initiative, provides subsidized space. @z Z 2 GZ A , ›  - wGƒ Gw›  Z 2 ‘ z w- ‘ Y 6q Activity Funding Anticipated Outcomes Potential Partners Property Acquisition $46.5M Acquire 3 to 5 sites dedicated to affordable and mixed creative use • Public Funds • Surplus Properties • Private Contributions • Earnings Capital Construction $14.5M Gap funding for 2 to 3 projects providing 50 to 100 affordable, creative live/work units • Public funds • CDFI/NMTC • Grants • Fundraising • Earnings 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w Projected Leverage & Impact • Leveraging ratio up to 1:7, depending on mix • Project Economic Impact between $325M to $400M • Leveraging ratio of around 1:2 • Project Economic Impact between $58M to $72M Loans, Grants, & Program Support* $18M Annual rental assistance for 200-300 individuals and workforce funds to support, and administrative costs • Public Funds • Philanthropic • Earnings • Grants • In-kind Contributions • Leveraging ratio of between 1:1 and 1:2 • Project Economic Impact between $36M to $72M Total $79M Estimated $210M Leverage $419M to $544M ∂ R66j  z qwGZ ‘ z mq∏ - ‘ Y j T6w6- ‘ Y Y z Z Gw› GZ ƒ 6qwY 6Z wj - R A 6 Expansion of the Austin Cultural Trust Legacy Business & Commercial Trust Affordable Workspace & Workforce Initiative • Acquire 8 to 10 venues, securing an additional 100,000+ sq ft cultural space. • Major capital improvements to 8 to 10 sites, newly acquired sites or existing $135M cultural facilities • Rent subsidies, technical support ad grants for 10 to 20 organizations and admirative costs. • Commercial Trust to acquire and hold 5 to 10 legacy businesses. • Low interest capital improvement loans for 80 to 100 legacy businesses to $45M remain viable. • Legacy Business Fund for financial incentives and advisory services to 60 to 100 legacy businesses, and administrative costs. • Acquire 3 to 5 sites dedicated to affordable and mixed creative use. • Gap funding for 2 to 3 projects providing 50 to 100 affordable, creative live/work $79M units • Annual rental assistance for 200-300 individuals and workforce funds to support, and administrative costs • Secures up to 25 properties for affordable cultural and commercial space across Austin. • Funds major capital improvements at up to 13 sites and creates 50–100 TOTAL $259M affordable live/work units. • Deliver direct financial support to more than 400 local artists, entrepreneurs, and cultural organizations through rental assistance, grants, and low-interest loans. • • • • • • Estimated $345M Leverage Project Economic Impact between $530M to $910M Estimated $45M Leverage Project Economic Impact between $170M to $213M Estimated $210M Leverage Project Economic Impact between $419M to $544M Estimated $859M in Projects Generating between $1.12B to $1.7B  6- ‘ Z ‘ Y G- 2 6ƒ 6T‘ j - R A 6qGZ j 66m- GwG6q j Y 6Z w, ‘ Z 2  6- ‘ Z ‘ Y G-  2 6ƒ 6T‘ ‘ Z 2 q , j Y 6Z w CHICAGO, IL DALLAS, TX PHILADELPHIA, PA 2024 2024 2020 Ğ, , Ï Éˇ j „ ¨ ©„ ¬Ł ÛÛÝÏ õŁˇ  $625M toward small business and workforce development  $625M toward housing and cultural infrastructure  General Obligation and Sales Tax Securitization Corp bonds. Primarily tax-exempt, but as much as 35% are taxable to for revolving loans and “other non-capital expenses” – NO TAX IMPACT Ğ, , Ï Éˇ j „ ¨ ©„ ¬Ł ÛÛÝÏ õŁˇ  $72.3M for innovative development, infrastructure, and land purchase projects  $75.2M for Cultural and Performing Arts Facilities  $26.4M for Housing and Neighborhoods ĞY , Ï Éˇ  ¨ éÞõÞéÞŁâ ÛÛÝÏ õŁˇ  Affordable Housing, Home Repairs, and First-time Homeowners Assistance  Small Business and Neighborhood Business Support  Inclusive Workforce Initiatives  PIDC recognized as one of the world’s most innovative companies in 2025  2 ÝÞõŁÉš Þé½¨ Ï Ç Ç èÉÞéÿ , èÞÂé¹Ï ÝÞÇ Û„ ¨ é 2 6TGƒ 6m62 , › m TT›  , TGqE 62 j m‘ - 6qq 6qw  Built on community partnership  Purchasing criteria and process  Creative deal and lease structures  Real estate expertise  Ongoing assessment and support  Public accountability BLOCK 16 & 18  Over 50 years of community planning  Public partnership with Urban Renewal Board/Urban Renewal Agency  Rally engagement secured development partner in two years and raised $129,500 in support, to date  Ongoing community engagement  Designed project focused on cultural anchors, affordable housing, and district’s identity and heritage. CULTURAL TRUST  10-year request from community, Rally engaged and delivered in 1  CoA Commission // Working Group  Cultural Trust Advisory Committee  Rally structured various funding sources for a sustainable program  Ongoing community engagement  Setting up our users for success  Raised $1M additional funding.  wE GZ R , GA i  , - ‘ TT ‘ m wGƒ 6 2 2 GwG‘ Z T6Z A A 6Y 6Z w  Preservation Austin’s Legacy Business Workshop Tuesday, October 21, 2025, from 9am to 2pm Baker School: 3908 Avenue B, Austin, TX 78751 Details: www.preservationaustin.org/events/legacy-business-workshop  City of Austin Commissions: Music: October 6, 2025 Tourism: October 8, 2025 Economic Prosperity: Requested October 15, 2025 Arts: October 20, 2025  City of Austin Economic Opportunity Committee Requested November 21, 2025, Meeting  Historic Preservation Acquisition Fund Response to City Resolution No. 20240926-069 Rally led development with Advisory Committee  R 66j  z qwGZ ‘ z mq m„ ÂÂÿ∑â√RŁŁÛ èâéÞÉ‘ èÝâ∑ÛÝÏ ÛÏ â„ Â ÞâÛ„ ÝéÏ ¹é½Ł˙ Ï Éˇ ÛÝÏ ¨ Łââ „ ɡ ÿÏ èÝÞÉÛèéÇ „ ÿ˙ Ł⽄ ÝŁˇ š Þé½ é½Ł èâéÞÉ- Þéÿ- Ï èɨ ÞÂ ĚĄ Ý„ ÂÂÿ„ éý Ěm„ ÂÂÿ èâéÞÉ ĚÝ„ ÂÂÿ„ èâéÞÉÏ Ý¬ ĚÞÉ¹Ï Ą Ý„ ÂÂÿ„ èâéÞÉÏ Ý¬  2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w z qwGZ - m6 wGƒ 6 @@‘ m2 Distributed to over 800 creatives with responses from 26 venues and 79 renters, aimed to guide pricing for Austin Cultural Trust spaces, clarify market practices, and highlight opportunities to improve access and affordability in the creative space ecosystem. , GTGw› qz mƒ 6› The Challenge • Fragile Ecosystem: 80% of venues rent (not own); nearly one-third face lease renewal in 18 months. • Escalating Costs: 30% of venues report rent increases; 34% expect unaffordable hikes. • Creative Flight Risk: 30% of professionals are considering leaving Austin due to affordability pressures. • Suitability Gap: Many creatives work in spaces not designed for artistic production. Key Findings • Top Needs: Affordable rehearsal rooms, studios, makerspaces, and mid-sized performance spaces. • Unpredictable Costs: Renters face hidden fees; venues struggle to stabilize revenue. • Location Premium: Central spaces priced out of reach; access largely word-of-mouth. • Underutilized Supply: Venues report open daytime slots but lack tools to fill them. Opportunities for Action 1. Stabilize the Market with transparent rental guidelines and technical assistance for leases, upgrades, and planning. 2. Optimize Current Supply by creating a Space Navigator role to match renters with underused space. 3. Invest in Purpose-Built Spaces, those professionally designed creative spaces and artist-owned facilities. 4. Position the Austin Cultural Trust as the long-term solution for controlled affordable creative space.   z qwGZ qY TT, z qGZ 6qqZ 662 q qq6qqY 6Z w Economic Development's 2022 Assessment combined online surveys, focus groups, one-on-one interviews, and targeted outreach (including email, social media, and video ads), to gather responses from hundreds of small business owners across industries, ensuring both quantitative data and qualitative insights on challenges like affordability, resilience, and displacement. 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w The Challenge • Lease Insecurity: Many struggle with commercial lease renewals; conflicts with landlords and risk of eviction. • Escalating Costs: Businesses highlight rising rents, property taxes, and hidden lease costs as a top challenge. • Ownership Gap: Few locally owned businesses own their space; requests guidance on buying commercial property. • Displacement Pressure: Development forces businesses to relocate or adapt to non-traditional spaces. Key Findings • Top Needs: Affordable, stable commercial space; options for long-term leases; access to ownership pathways. • Unpredictable Costs: Rent hikes, hidden fees, and lack of transparent lease structures create financial instability. • Location Premium: Central/cultural corridors face high-cost pressures, displacing legacy and creative businesses. • Alternative Models: Interest in cooperative/shared spaces emerged as a response to unaffordability. Opportunities for Action 1. Stabilize Leases: Develop programs for long-term, predictable rent or landlord incentive agreements. 2. Support Ownership: Provide assistance for legacy businesses to purchase or co-own commercial property. 3. Mitigate Displacement: Use trusts or corridor protections to safeguard businesses in high-growth/gentrifying zones. 4. Provide Advisory Support: Offer technical/legal assistance on leases, real estate, and property tax navigation. 2 6ƒ 6T‘ @‘ mj z mj ‘ q6 j Y 6Z w § ‘ mR@‘ m- 6E ‘ z qGZ A  w‹ j ‘ TG- › ≤ Under the Austin Strategic Housing Blueprint (2017), workforce housing generally refers to housing affordable to households making 31-100% of Area Median Family Income (AMI), especially the 61-80% AMI band, which is often harder to serve within “affordable housing” programs. The Blueprint’s 10-year targets to build or preserve 135,000 housing units across income bands, including a goal of ~15,000 units affordable to 61-80% AMI households. The Challenge • Housing + Workspace Squeeze: Housing costs rising 26–27% (2020–21) while incomes lagged; 30% of creative professionals are considering leaving Austin due to affordability pressure. 80% of venues lease; ~30% of venues saw rent increases up to 25% in one year, with one-third facing lease renewal in 18 months. • Suitability Gap: Many creatives use spaces not designed for artistic production; suitability is sacrificed for affordability. • Cost Burden: Nearly half of renters spend 25–50% of income on workspace rental. • Creative Sector Risk: Cost instability drives out migration, undermining Austin’s $1.8B+ creative economy. • Priority Needs: Affordable rehearsal rooms, studios, makerspaces, and mid-sized performance spaces; plus housing close to cultural corridors. Opportunities for Action 1. Pilot Workforce Housing for Creatives: Mixed-use projects offering live/work units for 60–80% AMI households. 2. Stabilize Market: Transparent rental guidelines, long-term leases, and technical assistance for creative spaces. 3. 4. Leverage Peer Models which leverage public/private capital for affordable creative infrastructure. 5. Bond Alignment: Position this pilot within the 2026 Bond as both housing and economic development—retaining Invest in Purpose-Built Spaces: Prioritize artist-owned or designed facilities (housing + studios) to ensure suitability. creatives, reducing commuting and environmental burdens, and sustaining Austin’s cultural identity.