16 SP-2026-0048C.CP - W. Martin Luther King Jr. Boulevard & Nueces Street; District 9 - Staff Report — original pdf

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DOWNTOWN DENSITY BONUS REQUEST REVIEW SHEET CASE NUMBER: SP-2026-0048C.CP PLANNING COMMISSION HEARING DATE: March 10, 2026 PROJECT NAME: W. Martin Luther King Jr. Boulevard ADDRESS: OWNER: 601, 607, 611, 615, 619 West Martin Luther King Jr. Boulevard; 1801 and 1809 Rio Grande Street; 1800, 1802, 1806 Nueces Street; and 602, 604 West 18th Street The 1806 Group LP; Jack Brown Family II Limited Partnership; Triple Play Properties LTD; and Scott Sayers APPLICANT: Drenner Group, Leah M. Bojo URBAN DESIGN STAFF: Jorge E. Rousselin Jorge.Rousselin@austintexas.gov Phone: (512) 974-2975 NEIGHBORHOOD PLAN: Downtown PROJECT REQUEST: In accordance with LDC Section 25-2-586(B)(6), the applicant requests City Council approval to increase the allowable floor-to-area ratio (FAR) from 5:1 to 20:1 and the maximum building height from 120 feet to 445 feet for a unified development. The proposed project includes approximately 435 dwelling units, retail space, and hotel uses. PRIOR BOARD AND COMMISSION ACTION: Design Commission: February 2, 2026: The motion to approve the recommendation to City Council that the project W. Martin Luther King Jr. Boulevard & Nueces Street, located at 601, 607, 611, 619 West Martin Luther King Jr. Boulevard, 1809 Rio Grande Street, 1806 Nueces Street, 1801 Rio Grande Street, 604 West 18th Street and 1800 Nueces Street, complies with the Urban Design Guidelines for the City of Austin was approved on Chair Salinas’ motion, Commissioner Carroll’s second, on a 7-0 vote. Planning Commission Public Hearing: March 10, 2026 Council Public Hearing: March 26, 2026 SUMMARY STAFF RECOMMENDATION: Gatekeeper Requirements: Participation in the Downtown Density Bonus Program requires compliance with LDC 25-2-586(C)(1), including: 1. Substantial compliance with the Urban Design Guidelines. 2. Execution of a restrictive covenant committing to streetscape improvements consistent with Great Streets standards along all public frontages. 16 SP-2026-0048C.CP - W. Martin Luther King Jr. Boulevard & Nueces Street; District 91 of 63. Execution of a restrictive covenant committing to achieve a minimum two-star Austin Energy Green Building (AEGB) rating. The applicant has demonstrated compliance with these requirements as follows: • The applicant has committed to provide Great Streets improvements along West Martin Luther King Jr. Boulevard, West 18th Street, Nueces Street, and Rio Grande Street, including wide sidewalks, street trees, street furniture, bike racks, trash receptacles, and street lighting in accordance with Great Streets Standards. • The applicant has committed to achieving a minimum three-star Austin Energy Green Building rating. • Documentation submitted demonstrates substantial compliance with the Urban Design Guidelines, which staff has confirmed. • Project submittal can be found here: SP-2026-0048C.CP Bonus Area Analysis: Under LDC Section 25-2-586(A)(1), “bonus area” is defined as gross floor area exceeding the site’s base FAR entitlement. Up to 3:1 FAR and 90 feet of maximum building height may be approved administratively under Section 25-2-586(B)(3). Additional FAR and maximum building heigh, up to a maximum of 20:1 FAR and 445 feet, may be granted by City Council under Section 25-2-586(B)(6). On February 24, 2026, City Council rezoned the property from CS, CS-MU, and GO to DMU-CO Ordinance No. 20260224-077 and Ordinance No. 20260224-078. The conditional overlay (CO) limits certain land uses. Because the base entitlements exceed administrative bonus allowances under the program, the applicant is seeking additional bonus area under LDC 25-2-586(B)(6). The applicant proposes to obtain 100% of the additional bonus area through the following community benefit contributions to satisfy LDC Section 25-2-586 (B)(6) and 25-2-586(E)(1)(b)(i): 1. North Tract: Payment of $1,775,758 in affordable housing fees-in-lieu. 2. South Tract: Payment of $1,529,868 in affordable housing fees-in-lieu. These payments satisfy the community benefit requirements of the Code. The total fee-in-lieu contribution is $3,305,446 which will be deposited into the Affordable Housing Trust Fund. Staff offers an alternate recommendation of 200 feet maximum building height and the corresponding FAR. This recommendation is based on an analysis of existing land use patterns, entitlement trends, and recent Council actions, particularly within the University Neighborhood Overlay (UNO) and the ETOD/DBETOD overlays, where maximum heights can reach up to 175 feet through density bonus programs. Context: ETOD/DBETOD Adoption On May 16, 2024, City Council adopted the ETOD/DBETOD Combining Districts (the “ETOD Overlay”) via Ordinance No. 20240516-003 which: • Restricts non-transit-supportive uses. • Establishes the DBETOD density bonus district with maximum building heights of 60, 90, or 120 feet depending on subdistrict and affordability requirements. • Applies to certain non-single-family lots within approximately 850 acres of ETOD boundaries. 16 SP-2026-0048C.CP - W. Martin Luther King Jr. Boulevard & Nueces Street; District 92 of 6 • Applies only within ½ mile of Phase 1 Austin Light Rail and Priority Extensions. • Governs in case of conflict unless a more restrictive provision applies. • Cannot be combined with special purpose zones or single-family zoning (SF-1 through SF-6). • Includes use limitations and EV-charging-related conditions for former service stations. Additionally, Council has initiated updates to the Downtown Austin Plan through the Central City Plan effort and Phases I and II of the Density Bonus Program, which will inform future recommendations on entitlements and density bonus updates. PROJECT INFORMATION SITE AREA EXISTING ZONING Tract 1: 41,403 sq. ft. Tract 2: 41, 613 sq. ft. Tract 1: DMU-CO Tract 2: DMU-CO Tract 1: 0.95 acres Tract 2: 0.9505 acres CAPITOL VIEW CORRIDOR No PROPOSED ACCESS FLOOR-AREA RATIO BUILDING COVERAGE West 18th Street and public alley Allowed 5:1 100% Existing Proposed 5:1 95% 20:1 100% EXISTING ZONING AND LAND USES TRACT 1: Site North South East West ZONING DMU-CO CS-1-NP; CS-NP; P GO; GO-MU; DMU-CO DMU-CO; CS; GO DMU-H-ETOD-DBETOD; GO-ETOD-DBETOD; SF-3-H LAND USES Laundry Service; Fast food; Bakery Commercial uses; Fire Station 2; Restaurant Multifamily and Office Townhomes; Office; Fast food Office and Single Family EXISTING ZONING AND LAND USES TRACT 2: Site North South East West ZONING DMU-CO CS; CS-MU; CS-NP; P GO and GO-MU DMU-CO; CS; GO DMU-H-ETOD-DBETOD; GO-ETOD-DBETOD; SF-3-H LAND USES Multifamily and Office Laundry Service; Fast food; Bakery; Commercial uses; Fire Station 2 Multifamily and Office Townhomes and Office Office and Single Family 16 SP-2026-0048C.CP - W. Martin Luther King Jr. Boulevard & Nueces Street; District 93 of 6 ABUTTING STREETS Name ASMP Classification ASMP Required ROW Existing ROW Existing Pavement Sidewalks Bicycle Route Level 3 100’ 93’ 61’ Yes Yes Capital Metro (within ¼ mile) Yes W Martin Luther King JR BLVD Rio Grande St Level 1 80’ 68’ 41’ W 18th St Level 1 Nueces St Level 1 Alley N/A 80’ 80’ N/A 59’ 81’ 21’ 31’ 39’ 20’ Yes Yes Yes No Yes Yes Yes Yes No Yes Yes Yes 16 SP-2026-0048C.CP - W. Martin Luther King Jr. Boulevard & Nueces Street; District 94 of 6 Tract 1 Tract 2 SP-2026-0048C.CP 601, 607, 611, 615, 619 West Martin Luther King Jr. Boulevard; 1801 and 1809 Rio Grande Street; 1800, 1802, 1806 Nueces Street; and 602, 604 West 18th Street 2/24/2026 16 SP-2026-0048C.CP - W. Martin Luther King Jr. Boulevard & Nueces Street; District 95 of 6Tract 1 Tract 2 SP-2026-0048C.CP 601, 607, 611, 615, 619 West Martin Luther King Jr. Boulevard; 1801 and 1809 Rio Grande Street; 1800, 1802, 1806 Nueces Street; and 602, 604 West 18th Street 2/24/2026 16 SP-2026-0048C.CP - W. Martin Luther King Jr. Boulevard & Nueces Street; District 96 of 6