05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 9 - Staff Report — original pdf

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ZONING CHANGE REVIEW SHEET CASE: C14-2026-0020 3701 Speedway, 3703 Speedway and 104 E. 37th St. Rezoning DISTRICT: 9 ZONING FROM: LO-NCCD-ETOD-DBETOD-NP ZONING TO: LR-NCCD-ETOD-DBETOD-NP ADDRESS: 3701, 3703 Speedway and 104 East 37th Street SITE AREA: 0.2769 acres (12, 061 sq. ft.) AGENT: Dubois Bryant & Campbell, LLP (David Hartman) PROPERTY OWNER: La Familia Partnership LTD, a Texas limited partnership CASE MANAGER: Cynthia Hadri 512-974-7620, Cynthia.hadri@austintexas.gov STAFF RECOMMENDATION: The staff recommendation is to grant neighborhood commercial - neighborhood conservation – equitable transit-oriented development – density bonus equitable transit-oriented development – neighborhood plan (LR-NCCD-ETOD-DBETOD-NP) combined district zoning. The applicant is not seeking a modification request for the pedestrian-oriented commercial space as they are not utilizing the Density Bonus Program. PLANNING COMMISSION ACTION / RECOMMENDATION: June 23, 2026: CITY COUNCIL ACTION: ORDINANCE NUMBER: 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 91 of 18C14-2026-0020 ISSUES: 2 On March 9, 2023, City Council approved Resolution No. 20230309-016 accepting the Equitable Transit-Oriented Development Policy Plan and directing the City Manager regarding next steps for implementation of items intended to benefit the Project Connect Phase 1 Austin Light Rail project. This included development of code amendments to support transit in May of 2024 (Ordinance No. 20240516-005), including creation of the ETOD combining district (restrictions on non-transit supportive uses) and the DBETOD combining district (allowing residential use, and relaxing some development standards including increased height in exchange for income-restricted housing). Properties within one half-mile of the Phase 1 Austin Light Rail alignment and Priority Extensions were included within this overlay, and certain properties were rezoned through a City-initiated process to include the ETOD and DBETOD combining districts. Further, properties rezoned with DBETOD combining district were categorized into Subdistrict 1 (maximum allowable height of 120 feet) or Subdistrict 2 (maximum allowable height of 90 feet), generally based on property distance of ¼-mile or ½-mile from the Phase 1 alignment, respectively. However, that rezoning process did not modify any base district zoning or any combining district zoning, which is the subject of this request. CASE MANAGER COMMENTS: The property in question is approximately 0.27 acres, currently zoned limited office - neighborhood conservation - equitable transit-oriented development – density bonus equitable transit-oriented development – neighborhood plan (LO-NCDD-ETOD-DBETOD- NP) combined district zoning and developed with three bungalows. There is access to East 37th Street, an ASMP Level 1 and Speedway, and ASMP level 2. This site is in the Central Austin Combined Neighborhood Plan, more specifically North University, and is characterized as mixed use. The surrounding area has several multifamily, commercial and office uses around it along with some single family zoning (MF-4-NCDD-ETOD-DBETOD- NP; MF-3-NCDD-ETOD-DBETOD-NP; MF-2-NCDD-ETOD-DBETOD-NP; MF-4-HD- NCDD-ETOD-DBETOD-NP; LR-NCDD-ETOD-DBETOD-NP; LO-V-HD-NCDD-ETOD- DBETOD-NP; SF-3-NCCD-NP). Please refer to Exhibits A (Zoning Map) and B (Aerial View). The applicant is requesting neighborhood commercial – neighborhood conservation - equitable transit-oriented development – density bonus equitable transit-oriented development – neighborhood plan (LR-NCCD-ETOD-DBETOD-NP) combining district zoning to align with the adjacent property for a unified development. The three existing bungalows will be preserved and utilized for boutique retail uses for a “neighborhood retail hub consistent with the character and walkability that defines Hyde Park”. Please refer to Exhibit C (Applicant’s Summary Letter). The staff is recommending LR-NCCD-ETOD-DBETOD-NP combined district zoning here, with the knowledge that neighborhood conservation (NCCD) does prohibit several of the more intense commercial uses. The area is served by nearby Austin Urban Trails and bicycle routes, supporting multimodal transportation options, with a bus stop directly north on East 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 92 of 18 C14-2026-0020 3 38th Street. The proposed rezoning is compatible and consistent with surrounding land uses and zoning patterns in this area. The requested rezoning for adaptive reuse is a reasonable use of the property based on the location and surrounding zonings. The applicant also has a related Neighborhood Plan Amendment application (NPA-2026-0019.01) requesting the FLUM be changed from Mixed Use/Office to Mixed Use. Staff is recommending the FLUM change. All three of these addresses (3701 Speedway, 3703 Speedway and 104 East 37th Street) are located in an area of the city that has been surveyed for historic resources to determine their eligibility for historic significance, either as landmarks or as additions to potential historic districts. That survey, called the North Central Austin: West Campus, North University, Heritage, Bryker Woods, and North Hyde Park, was conducted in 2021 and the report can be found here, with the resource inventory located here. This historic resource report is used by staff to determine which properties require further review by the city's Historic Landmark Commission if a permit application is submitted for partial demolition, total demolition, or major alterations to the exterior of the building. It has been determined that this level of review will be required for 3703 Speedway and 104 E. 37th St., but not 3701 Speedway due to lack of architectural integrity. The applicant has stated there will be no demolition to the 3 existing structures in the subject rezoning area. Total or partial demolition requests for buildings over 45 years old are referred to the Historic Preservation Office by DSD upon receipt of a demolition application. The Historic Landmark Commission must also review such applications if the subject property may meet the criteria for historic zoning. The applicant is requesting LR-NCCD-ETOD-DBETOD-NP combining district zoning and to remain in Subdistrict 2, which could allow a development to include multi-family units requiring an affordable component in targeted areas to support future transit. A building constructed under ETOD and DBETOD standards allows for a mix of residential uses and transit-supportive commercial uses, and the result is typically retail, restaurants and offices on the ground floor, and residential units on upper levels. Those uses deemed non-transit- supportive have been prohibited or made as conditional within the ETOD combining district. A development utilizing the “density bonus ETOD” incentives is permitted with a base LR district, and must include an affordability component for residential use in order to obtain incentives, including height maximum of up to 70 feet in the LR district (40 feet base district plus up to 30 feet height incentive) and relaxation of development and compatibility standards, such as floor to area ratio (FAR), setbacks and building coverage. There are several methods of satisfying DBETOD development affordability requirements, based on whether the proposed units will be offered as rental or for ownership. For rental units, the options are based on a tiered system tied to achievable maximum height or modified development standards. i. To achieve 60 feet in height or to utilize a development standard under DBETOD that is not height-related, a development must provide:  a minimum of 10% of the residential units as affordable for lease and occupancy by households earning 60% or less than the Austin-Round Rock Metropolitan Statistical Area MFI; 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 93 of 18 C14-2026-0020 4 ii. To achieve 90 feet in height, a development must provide:  a minimum of 12% of the residential units as affordable for lease and occupancy by households earning 60% or less than the Austin-Round Rock Metropolitan Statistical Area MFI; or  a minimum of 10% of the residential units as affordable for lease and occupancy by households earning 50% or less MFI. There are two options of satisfying DBETOD development affordability requirements which include ownership units: 1) a minimum of 12% of the units as affordable for ownership and occupancy by households earning 80% or less than the Austin-Round Rock Metropolitan Statistical Area MFI; or 2) an in-lieu-fee payment to the Housing Trust Fund, equivalent to 125% of the required percentage of the total residential units, including the mix of bedrooms required, at the rate set in the fee schedule at the time of site plan submittal. BASIS OF RECOMMENDATION: 1. The proposed zoning should be consistent with the purpose statement of the district sought. The neighborhood commercial district is intended for neighborhood shopping facilities which provide limited business service and office facilities predominately for the convenience of residents of the neighborhood. The neighborhood conservation combining district is intended to preserve and protect older neighborhoods by allowing modifications to applicable regulations in accordance with a neighborhood plan for development and conservation. A proposed NCC district shall be sponsored by property owners within such proposed district through the neighborhood organization. Neighborhood plans are intended to enhance the desirability of living in older neighborhoods which were substantially built out at least 30 years before the date of application for the NCC district classification and which have distinctive architectural styles. The equitable transit-oriented development combining district promotes transit-supportive uses, increases bicycle, pedestrian, transit connectivity, and housing options, near public transit, and prohibits certain commercial, industrial, and agricultural uses. The density bonus equitable transit-oriented development combining district allows for residential uses, modifies compatibility standards and site development regulations, and grants additional building height in exchange for income-restricted housing. The neighborhood plan district denotes a tract located within the boundaries of an adopted Neighborhood Plan. 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 94 of 18 C14-2026-0020 5 2. Zoning changes should promote a balance of intensities and densities. The adjacent properties to this site are zoned MF-4-NCCD-ETOD-DBETOD-NP; MF-3- NCCD-ETOD-DBETOD-NP; LR-NCCD-ETOD-DBETOD-NP, the MF-4 base zoning district is equivalent to GO, GR and CS commercial base zoning districts based on height and/or other site developments standards. The requested rezoning is for neighborhood commercial (LR) base district zoning which is the equivalent of MF-2 and MF-3 base zoning districts based on height and/or other site developments standards. This rezoning would be less intense than the surrounding multifamily properties and would be the same zoning as the neighboring property directly to the north, on the corner of Speedway and East 38th Street. 3. Zoning should promote clearly-identified community goals, such as creating employment opportunities or providing for affordable housing. This rezoning authorizes a property to participate in a voluntary density bonus or incentive program that provides modifications to development regulations or other regulatory-related benefits in exchange for community benefits. In exchange for increased development potential, the development is required comply with affordable housing requirements as per the DBETOD combining district regulations. This request continues to align with City objectives to increase density and affordability in exchange for relaxed development standards. 4. The rezoning should be consistent with the policies and principles adopted by the City Council. City Council has provided policy and direction for having more residential density and increased affordability and equitable transit-oriented development, as well as incentivizing vertical mixed use buildings throughout the City. 5. The proposed zoning should satisfy a real public need and not provide special privilege to the owner. Part of the ETOD policy implementation included mitigation measures to help reduce displacement pressures during redevelopment. The implementation measures require development utilizing the DBETOD program to comply with residential redevelopment requirements to preserve existing affordable and/or attainable housing opportunities for low- and middle-income households. Further, implementation measures require new development utilizing the DBETOD program to provide the right to return to certain qualifying businesses (certain non-residential uses) in the new development with right to return to affordable, comparably sized spaces. The ETOD policies seek to balance the need for increased density and activity surrounding transit with displacement pressures associated with said redevelopment. 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 95 of 18 C14-2026-0020 6 EXISTING ZONING AND LAND USES: Site North South East West ZONING LO-NCCD-ETOD-DBETOD-NP LR-NCCD-ETOD-DBETOD-NP; MF-4-HD-NCCD-ETOD-DBETOD-NP; LO-V-HD-NCCD-ETOD-DBETOD-NP; SF-3-HD-NCCD-ETOD-DBETOD-NP MF-4-NCCD-ETOD-DBETOD-NP; MF-2-NCCD-ETOD-DBETOD-NP; SF-3-NCCD-NP MF-3-NCCD-ETOD-DBETOD-NP; SF-3-NCCD-NP LR-NCCD-ETOD-DBETOD-NP; MF-4-NCCD-ETOD-DBETOD-NP; LAND USES Office and Single Family Residential Neighborhood Commercial uses, Multifamily and Single Family Residential Multifamily and Single Family Residential Multifamily and Single Family Residential Neighborhood Commercial uses and Single Family Residential NEIGHBORHOOD PLANNING AREA: Central Austin Combined (North University) WATERSHED: Waller Creek (Urban) CAPITOL VIEW CORRIDOR: No SCENIC ROADWAY: No SCHOOLS: Austin Independent School District Lee Elementary School Kealing Middle School McCallum High School COMMUNITY REGISTRY LIST: Austin Independent School District Austin Neighborhoods Council CANPAC (Central Austin Neigh Plan Area Committee) Friends of Austin Neighborhoods Friends of Hyde Park Homeless Neighborhood Association Hyde Park Neighborhood Assn. AREA CASE HISTORIES: Hyde Park Neighborhood Plan Contact Team North Austin Neighborhood Alliance North University Neighborhood Association North University Neighborhood Development Review Committee Preservation Austin NUMBER C14-2010-0079 - Fruth House REQUEST MF-1-H-NCCD-NP to MF-1-H-NCCD-NP; to modify site development standards on the property. COMMISSION To Grant Staff’s Recommendation. (7/13/2010) CITY COUNCIL Approved MF-1-H- NCCD-NP as Planning Commission Recommended (08/19/2010) 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 96 of 18 C14-2026-0020 C14-2018-0101- Helping Hand Home For Children SF-3-NCCD-NP to MF-4-NCCD-NP To Grant MF-4-NCCD-NP (11/13/2018) 7 Approved MF-4-NCCD- NP as Planning Commission Recommended (01/31/2019) RELATED CASES: NPA-2026-0019.01 – This is the associated Neighborhood Plan Amendment (NPA) requesting a Future Land Use Map (FLUM) from Mixed Use/Office to Mixed Use. ADDITIONAL STAFF COMMENTS: Comprehensive Planning: Please see Neighborhood Plan Amendment (NPA) Staff Report. Drainage: The developer is required to submit a pre- and post-development drainage analysis at the subdivision and site plan stage of the development process. The City’s Land Development Code and Drainage Criteria Manual require that the Applicant demonstrate through engineering analysis that the proposed development will have no identifiable adverse impact on surrounding properties. Environmental: The site is not located over the Edwards Aquifer Recharge Zone. The site is located in the Waller Creek Watershed of the Colorado River Basin, which is classified as an Urban Watershed by Chapter 25-8 of the City's Land Development Code. It is in the Desired Development Zone. Zoning district impervious cover limits apply in the Urban Watershed classification. According to floodplain maps there is no floodplain within or adjacent to the project location. Standard landscaping and tree protection will be required in accordance with LDC 25-2 and 25-8 for all development and/or redevelopment. At this time, site specific information is unavailable regarding vegetation, areas of steep slope, or other environmental features such as bluffs, springs, canyon rimrock, caves, sinkholes, and wetlands. This site is required to provide on-site water quality controls (or payment in lieu of) for all development and/or redevelopment when 8,000 s.f. cumulative is exceeded, and on site control for the two-year storm. 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 97 of 18 C14-2026-0020 8 At this time, no information has been provided as to whether this property has any preexisting approvals that preempt current water quality or Code requirements. Fire: There are no comments. PARD – Planning & Design Review: Parkland dedication fees may apply to any future site or subdivision applications resulting from this rezoning. As of January 1, 2024, new commercial, non-residential uses are not subject to parkland dedication requirements at the time of site plan and subdivision. Site Plan: All comments regarding the effects of the proposed rezoning on subsequent Site Plan Review applications are intended to assist in identifying potential development constraints but do not include all regulations which may affect a specific proposal. Changes to property boundaries and requests for development cannot include all regulatory limitations which may apply to a specific subject to modification or reconsideration if affected by a change in property boundaries or if development is proposed on only a portion of the land proposed for rezoning. These comments are intended to assist in identifying potential development constraints, but do not address the actual restrictions which will apply to a specific development proposal. Austin Development Services offers a variety of pre-application review options to assist in evaluating specific development proposals prior to Site Plan Application. Site plans will be required for any new development except for residential only project with up to 4 units. Any new development is subject to Subchapter E. Design Standards and Mixed Use. Additional comments will be made when the site plan is submitted. The site is subject to compatibility standards due to the proximity of [SF-3-NCCD-NP zoning to the East] (i.e., the triggering property). Reference 25-2-1051, 25-2-1053 Any structure that is located: At least 50 feet but less than 75 feet from any part of a triggering property may not exceed 60 feet Less than 50 feet from any part of a triggering property may not exceed 40 feet Austin Transportation Department – Engineering Review: Transportation assessment/traffic impact analysis and transportation demand management plan shall be required at the time of site plan if triggered per LDC 25-6 and TCM 10.2.1. 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 98 of 18 C14-2026-0020 9 Assessment of required transportation mitigation, including the potential dedication of right of way and easements and participation in roadway and other multi-modal improvements, will occur at the time of site plan application. The Austin Strategic Mobility Plan (ASMP) calls for 58 feet of right-of-way for E 37TH ST. It is recommended that 29 feet of right-of-way from the existing centerline should be dedicated for E 37TH ST according to the Transportation Plan with the first subdivision or site plan application. [LDC 25-6-51 and 25-6-55]. The Austin Strategic Mobility Plan (ASMP) calls for 72 feet of right-of-way for SPEEDWAY. It is recommended that 36 feet of right-of-way from the existing centerline should be dedicated for SPEEDWAY according to the Transportation Plan with the first subdivision or site plan application. [LDC 25-6-51 and 25-6-55]. Existing Street Characteristics: Name ASMP Classification ASMP Required ROW Existing ROW Existing Pavement Sidewalks Bicycle Route Capital Metro (within ¼ mile) E 37TH ST Level 1 58’ 52’ 30’ No No Yes SPEEDWAY Level 2 72’ 62’ 40’ Yes Yes Yes Austin Water Utility: No comments on zoning change. FYI: The landowner intends to serve the site with existing City of Austin water utilities. Depending on the development plans submitted, water and or wastewater service extension requests may be required. All water and wastewater construction must be inspected by the City of Austin. For more information pertaining to the Service Extension Request process and submittal requirements contact the Austin Water SER team at ser@austintexas.gov. INDEX OF EXHIBITS AND ATTACHMENTS TO FOLLOW: A. Zoning Map B. Aerial Map C. Applicant’s Summary Letter Correspondence from Interested Parties 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 99 of 18 Exhibit A 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 910 of 18Exhibit B 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 911 of 18David Hartman (512) 685-3409 dhartman@dbcllp.com 303 Colorado, Suite 2300 Austin, TX 78701 www.dbcllp.com March 24, 2026 Lauren Middleton-Pratt Director, Planning Department City of Austin 6310 Wilhelmina Delco Drive Austin, Texas 78752 Re: 3701 Speedway, 3703 Speedway, and 104 E 37th St. Rezoning - Rezoning and Neighborhood Plan Amendment Applications for 0.2769 acres located at 3701 Speedway, 3703 Speedway and 104 E 37th St., Austin, Texas 78705 (“Property”); Dear Ms. Middleton-Pratt: We respectfully submit the enclosed rezoning application (“Zoning Application”) and Neighborhood Plan Amendment application (“NPA Application”) for the above stated Property as representatives of the owners of the Property. The Property consists of approximately 0.2769 acres and is located at 3701 Speedway, 3703 Speedway, and 104 East 37th Street in Austin, Texas. The Property is currently developed with three residential bungalow-style structures and is zoned Limited Office – Neighborhood Conservation Combining District – Equitable Transit-Oriented Development Combining District – Density Bonus Equitable Transit-Oriented Development – Neighborhood Plan (LO-NCCD-ETOD-DBETOD-NP). The Applicant requests a rezoning of the Property to Neighborhood Commercial – Neighborhood Conservation Combining District – Equitable Transit-Oriented Development Combining District – Density Bonus Equitable Transit-Oriented Development – Neighborhood Plan (LR-NCCD-ETOD-DBETOD-NP). The requested rezoning district would align the Property with the zoning of the adjacent property which is currently zoned LR-NCCD-ETOD-DBETOD-NP and developed with a grocery/convenience store and vacant laundromat that comprises a portion of the proposed development. The proposed rezoning would create zoning consistency with nearby commercial uses and allow for neighborhood-serving commercial development compatible with the surrounding area. The proposed development involves the adaptive reuse of four existing structures on 0.52 acres at the northeast corner of Speedway and E. 37th Street. Rather than demolition or ground-up construction, the project preserves the existing building stock while repositioning an under-utilized retail building and three residential-scale bungalows into a curated neighborhood retail hub consistent with the character and walkability that defines Hyde Park. The bungalows along Speedway, currently zoned Limited Office, are proposed to be rezoned to Neighborhood Commercial (specifically, LR-NCCD-ETOD-DBETOD-NP zoning) to allow for boutique retail uses that complement the adjacent retail building. The residential scale of the bungalow structures on the Property will be preserved, with improvements limited to exterior refresh, landscaping, and ADA compliance — ensuring the project enhances the streetscape rather than disrupts it. The vision is a walkable, locally-oriented destination that serves both the 16,000 Hyde Park residents and the broader UT Austin community, consistent with the City's goals for neighborhood-serving commercial corridors. The Property is located along Speedway, which is designated as a Level 2 Street in the Austin Strategic Mobility Plan. The site is also located near several transit options, including multiple CapMetro Exhibit C 6074811.1 1 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 912 of 18bus stops, with a stop located just north of the Property at East 38th Street. The Property is situated between the Highland Mall Regional Center, as identified in Imagine Austin Comprehensive Plan, and the Downtown Austin Regional Center. Additionally, the Mueller Station Town Center is located to the east of the Property and provides a mix of residential, retail, and civic uses. The area is also served by nearby Austin Urban Trails and bicycle routes, supporting multimodal transportation options. The Property’s current Future Land Use Map (FLUM) designation is Mixed Use/Office within the Central Austin Combined (North University) Neighborhood Plan area. We have submitted a related Neighborhood Plan Amendment application requesting the FLUM be changed from Mixed Use/Office to Mixed Use. If you have any questions about the application or need additional information, please do not hesitate to contact me at your convenience. Thank you for your time and attention to this project. Very truly yours, David Hartman 6074811.1 2 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 913 of 18 05 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 914 of 1805 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 915 of 1805 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 916 of 1805 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 917 of 1805 C14-2026-0020 - 3701 Speedway, 3703 Speedway and 104 East 37th Street Rezoning; District 918 of 18