12 C14-2026-0015 – Sola Flats; District 5 - Staff Report — original pdf

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ZONING CHANGE REVIEW SHEET CASE: C14-2026-0015 – Sola Flats DISTRICT: 5 ZONING FROM: MF-2 ZONING TO: GR-DBC15 ADDRESS: 3415 Menchaca Road PROPERTY OWNER: Sola Flats LLC AGENT: Mathias Company (Richard Mathias) SITE AREA: 0.76 acres (33, 219 sq. ft.) CASE MANAGER: Cynthia Hadri 512-974-7620, Cynthia.hadri@austintexas.gov STAFF RECOMMENDATION: The staff recommendation is to grant community commercial – conditional overlay – commercial-citywide density bonus 15 (GR-CO-DBC15) combining district zoning. The conditional overlay will limit the height to a maximum of 45 feet. The conditional overlay will also have the following conditional and prohibited uses: Conditional Uses:  Alternative Financial Services  Automotive Washing  Bail Bond Services  Commercial Off-Street Parking  Communications Services Prohibited Uses:  Automotive Sales  Automotive Rentals  Automotive Repair Services  Drop-off Recycling Collection Facility  Off-Site Accessory Parking  Pawn Shop Services  Pedicab Storage and Dispatch  Special Use Historic  Exterminating Services  Funeral Services  Service Station PLANNING COMMISSION ACTION / RECOMMENDATION: November 10, 2026: CITY COUNCIL ACTION: ORDINANCE NUMBER: 12 C14-2026-0015 – Sola Flats; District 5 1 of 14C14-2026-0015 ISSUES: 2 *The applicant is amenable to the conditional overlay in staff’s recommendation. On January 2, 2025, staff published the Comprehensive Analysis of Density Bonus Programs report. This report evaluated the performance of existing density bonus programs and recommended changes to improve their overall performance. One of the major recommendations coming out of this study was to combine, streamline, and consolidate density bonus programs to the extent practicable. Therefore, on June 5, 2025, Council approved Resolution No. 20250605-080 that initiated land development code amendments to create a variety of density bonus combining districts that consider: The CBD creates “paper” combining districts that are available in code and will be applied to any properties via rezoning. The new paper districts are available for individual applicant rezoning requests as well as for future City-initiated rezonings as directed by Council.  Bonus height entitlements that are more or less than 30 feet;  Minimum affordability requirements that are calibrated and informed by the Comprehensive Analysis of Density Bonus Programs report;  Additional community benefit requirements such as ground floor activation, minimum commercial and civic space, onsite beneficial reuse, updated design standards, and others;  Modified compatibility regulations; and  Redevelopment requirements, including considering one-to-one unit replacement. On September 1, 2025, a slate of new state laws went into effect that were passed during the 89th Legislative Session, including Senate Bill 840 (SB 840). SB 840 aims to increase housing stock by allowing more market-rate housing to be built on most property zoned commercial, by right. This new legislation reduces incentives to participate in voluntary density bonus programs for many properties, unless an applicant seeks additional modifications of development standards such as additional height. This may result in fewer income-restricted affordable housing units being included in new developments. However, the City remains committed to growing affordable housing availability using a variety of tools, including but not limited to density bonus programs. The Citywide Density Bonus Program code amendment is intended to respond to the new regulatory landscape now that SB 840 is in effect. The new Citywide Density Bonus Program: 1. Created five new combining districts in a tiered structure differentiated by height, collectively referred to as the Citywide Density Bonus Program, and 2. Retired the existing DB90 and VMU programs for properties going forward after adoption of the new Citywide Density Bonus Program. All of the Citywide Density Bonus Program combining districts have the same requirements, except that the amount of additional height offered varies by combining district. All combining districts require that a developer provide income-restricted affordable housing and 12 C14-2026-0015 – Sola Flats; District 5 2 of 14 C14-2026-0015 3 meet other requirements in order to access additional entitlements, including additional permitted land uses, relaxed site development standards, and reduced compatibility standards. The only difference between the five combining districts is how much additional height they offer beyond a property’s by-right height maximum: 1. Citywide Density Bonus Program Base (-DBCBase) offers no additional height 2. Citywide Density Bonus Program 15’ (-DBC15) offers an additional 15’ of height 3. Citywide Density Bonus Program 30’ (-DBC30) offers an additional 30’ of height 4. Citywide Density Bonus Program 45’ (-DBC45) offers an additional 45’ of height 5. Citywide Density Bonus Program 60’ (-DBC60) offers an additional 60’ of height The Citywide Density Bonus Program creates “paper” combining districts that may be applied to any property via rezoning. The new paper districts are available for individual applicant rezoning requests as well as for future City-initiated rezonings as directed by Council. Moving forward, properties would no longer rezone into DB90 or VMU but may instead request one of the new Citywide Density Bonus Program combining districts. CASE MANAGER COMMENTS: The property in question is approximately 0.76 acres and is currently developed with 16 multifamily residences. The site is zoned multifamily residence-low density district (MF-2) and fronts Menchaca Road, an ASMP Level 3/minor arterial roadway. The surrounding area is categorized as mixed use with single family and multifamily residential uses and zoning (SF-3; MF-2; MF-3) adjacent as well as various office and commercial zonings (LO; LO- CO; LO-MU-CO; NO; LR; LR-CO; GR; GR-V) in the vicinity. This property is located in the South Lamar Neighborhood Planning Area. However, the plan has been suspended and does not have an existing Future Land Use Map (FLUM). Please refer to Exhibits A (Zoning Map) and B (Aerial View). The site is within the Menchaca and Broken Spoke ETOD Typology Station Areas, near Lamar Boulevard Corridor and just north of Lamar & Ben White Imagine Austin Centers. There are multiple bus routes and bus stops near this site. There is a bus stop just south of Glen Allen, to the north, and another stop on Larchmont Drive, to the south. There is a metro rapid bus route on South Lamar approximately 0.12 miles away, which is an Imagine Austin Corridor and a Core Transit corridor. The applicant is requesting a rezoning from multifamily residence-low density district (MF- 2) district zoning to community commercial - citywide density bonus 15 (GR-DBC15) combining district zoning to allow for the development of a mixed use/multifamily development of up to 60 dwelling units on the property. The -DBC15 combining district would allow a development to include multi-family units requiring an affordable component in targeted areas to support future transit. A building constructed using the Citywide Density Bonus Program must be at least 65% residential, with the remaining area able to be used for purposes like office, retail, commercial, and restaurants. At least 75% of the ground floor building frontage must contain non-residential uses, although site-specific waivers are allowed. The maximum amount of non-residential uses allowed per building on a site with density bonus combining district zoning is 35%. Please refer to Exhibit C (Applicant’s Summary Letter). 12 C14-2026-0015 – Sola Flats; District 5 3 of 14 C14-2026-0015 4 The staff’s recommendation is to grant community commercial – conditional overlay - citywide density bonus 15 (GR-CO-DBC15) combining district zoning. The conditional overlay limits the prohibited and conditional uses that apply to the GR district that are prohibited and conditional in the Equitable Transit Oriented Development (ETOD) Overlay. The conditional overlay will also limit the maximum height to 45 feet. If the property is redeveloped, this incentivizes the utilization of the Citywide Density Bonus Program which must include an affordability component for residential use, including a height maximum of up to 75 feet in the GR district (60 feet base district plus up to 15 feet height incentive), relaxation of development and compatibility standards, and the addition of other permitted land uses for participating developments to make neighborhoods more pedestrian-friendly. The applicant must provide affordable housing units or fees-in-lieu to participate in the Citywide Density Bonus Program. 1) On-site Units a) Ownership Units. If an applicant develops dwelling units for sale, this subdivision applies. An applicant must reserve a minimum of 10 percent of the residential units as affordable for ownership and occupancy by households earning 80 percent or less of the current Austin-Round Rock Metropolitan Statistical Area Median Family Income as determined by the director of Austin Housing. b) Rental Units. If an applicant develops dwelling units for lease, this subdivision applies. An applicant must reserve a minimum of 10 percent of the residential units as affordable for lease and occupancy by households earning 50 percent or less of the current Austin-Round Rock Metropolitan Statistical Area Median Family Income as determined by the director of Austin Housing. 2) Fee-In-Lieu. An applicant may elect to meet the affordability requirement without providing income-restricted units onsite by paying a fee in-lieu to the Housing Trust Fund. At a minimum the fee in-lieu shall be equivalent to the required percentage pf the total residential units, including the mix of bedrooms required, at the rate set in the fee schedule at the time of final site plan submission. BASIS OF RECOMMENDATION: 1. The proposed zoning should be consistent with the purpose statement of the district sought. The community commercial district is intended for office and commercial uses serving neighborhood and community needs, including both unified shopping centers and individually developed commercial sites, and typically requiring locations accessible from major traffic ways. The conditional overlay combining district may be applied in combination with any base district. The district is intended to provide flexible and adaptable use or site development regulations by requiring standards tailored to individual properties. 12 C14-2026-0015 – Sola Flats; District 5 4 of 14 C14-2026-0015 5 The DBC15 combining district allows residential uses and commercial or civic uses on sites with certain commercial base zoning districts, modifies site development regulations and compatibility requirements, and grants an additional 15 feet in building height in exchange for income-restricted housing. 2. 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 DBC combining district regulations. This request continues to align with City objectives to increase density and affordability in exchange for relaxed development standards. 3. 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. EXISTING ZONING AND LAND USES: Site North ZONING MF-2 SF-3; NO; LO; MF-2 South SF-3; MF-2; LO; LO-MU; LR East West SF-3; MF-3-CO; MF-3; MF-2; LO-MU-CO; GR LAND USES Multifamily Residential Single Family Residential; Multifamily Residential; Office Uses Single Family Residential; Multifamily Residential; Office and Commercial Uses Single Family Residential Multifamily Residential; Office and Commercial Uses NEIGHBORHOOD PLANNING AREA: South Lamar (Suspended) WATERSHED: West Bouldin Creek (Urban) CAPITOL VIEW CORRIDOR: No SCENIC ROADWAY: No SCHOOLS: Austin Independent School District Zilker Elementary School O Henry Middle School Austin High School 12 C14-2026-0015 – Sola Flats; District 5 5 of 14 C14-2026-0015 6 COMMUNITY REGISTRY LIST: Austin Independent School District Austin Neighborhoods Council Barton Oaks Neighborhood Association Friends of Austin Neighborhoods Homeless Neighborhood Association AREA CASE HISTORIES: Preservation Austin South Central Coalition South Lamar Neighborhood Association Save Our Springs Alliance NUMBER C14-2026-0059 – Menchaca C14-2017-0079 - 3003 Manchaca Road C14-2017-0080 - 3101 Manchaca Road REQUEST LO to LR-CO SF-3 to LO-MU COMMISSION To Grant LR-CO; the conditional overlay prohibits service station (10/27/2026) To Grant LO-MU (8/22/2017) SF-3 to LO-MU To Grant LO-MU (8/22/2017) CITY COUNCIL Pending (11/19/2026) Approved LO-MU as Planning Commission Recommended (9/28/2017) Approved LO-MU as Planning Commission Recommended (9/28/2017) RELATED CASES: There are no related case. ADDITIONAL STAFF COMMENTS: Comprehensive Planning: Project Name and Proposed Use: 3415 MENCHACA ROAD. C14-2026-0015. Project: Sola Flats. 0.7626 acres from MF-2 to GR-DBC15. Existing: multifamily low-rise housing (16 units). Proposed: multifamily high-rise housing (60 units). Demolition is proposed, with 16 occupied units to be demolished. Note that Citywide Density Bonus (Ordinance No. 20260521-056) is indicated in this case and may therefore establish certain affordability minimums and height allowances. Yes Y Imagine Austin Decision Guidelines Complete Community Measures * Imagine Austin Growth Concept Map: Located within or adjacent to an Imagine Austin Activity Center, Imagine Austin Activity Corridor, or Imagine Austin Job Center as identified the Growth Concept Map. Names of Activity Centers/Activity Corridors/Job Centers *:  0.21 miles from Lamar Boulevard; 0.31 miles from Lamar & Ben White Activity Centers for Redevelopment in Sensitive Environmental Areas Y Mobility and Public Transit *: Located within 0.25 miles of public transit stop and/or light rail station.  0.03 miles to bus stop along Menchaca Rd 12 C14-2026-0015 – Sola Flats; District 5 6 of 14 C14-2026-0015 7 Y Mobility and Bike/Ped Access *: Adjoins a public sidewalk, shared path, and/or bike lane.  Sidewalk present along Menchaca Rd Y Connectivity, Good and Services, Employment *: Provides or is located within 0.50 miles to goods and services, and/or employment center.  Within 0.5 miles of Goods and Services along S Lamar Blvd Connectivity and Food Access *: Provides or is located within 0.50 miles of a grocery store/farmers market. Connectivity and Education *: Located within 0.50 miles from a public school or university. Connectivity and Healthy Living *: Provides or is located within 0.50 miles from a recreation area, park or walking trail.  0.5 miles to South Austin Senior Activity Center; 0.5 miles to Tom Lasseter South Lamar Neighborhood Park Connectivity and Health *: Provides or is located within 0.50 miles of health facility (ex: hospital, urgent care, doctor’s office, drugstore clinic, and/or specialized outpatient care.) Housing Choice *: Expands the number of units and housing choice that suits a variety of household sizes, incomes, and lifestyle needs of a diverse population (ex: apartments, triplex, granny flat, live/work units, cottage homes, and townhomes) in support of Imagine Austin and the Strategic Housing Blueprint. Housing Affordability *: Provides a minimum of 10% of units for workforce housing (80% MFI or less) and/or fee in lieu for affordable housing.  Dependent upon participation in DBC15 Mixed use *: Provides a mix of residential and non-industrial uses. Culture and Creative Economy *: Provides or is located within 0.50 miles of a cultural resource (ex: library, theater, museum, cultural center). Culture and Historic Preservation: Preserves or enhances a historically and/or culturally significant site. Creative Economy: Expands Austin’s creative economy (ex: live music venue, art studio, film, digital, theater.) Workforce Development, the Economy and Education: Expands the economic base by creating permanent jobs, especially in industries that are currently not represented in a particular area or that promotes a new technology, and/or promotes educational opportunities and workforce development training. Industrial Land: Preserves or enhances industrial land. Not located over Edwards Aquifer Contributing Zone or Edwards Aquifer Recharge Zone Number of “Yes’s” Y Y Y Y 8 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 West Bouldin Creek Watershed of the Colorado River Basin, which is classified as an Urban 12 C14-2026-0015 – Sola Flats; District 5 7 of 14 C14-2026-0015 8 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. 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: Residential units that are certified affordable and income-restricted are exempt from the parkland dedication requirements per City Code § 25-1-601(D)(4). Parkland dedication will be required for any new market-rate residential units that may be proposed by this development, at the time of subdivision or site plan, per City Code § 25-1-601. If the applicant wishes to discuss parkland dedication requirements in advance of site plan or subdivision applications, please contact this reviewer: ann.desanctis@austintexas.gov. At the applicant’s request, PARD can provide an early determination of parkland dedication requirements. Site Plan: FYI: 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- 12 C14-2026-0015 – Sola Flats; District 5 8 of 14 C14-2026-0015 9 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 projects with up to 4 units. U1 - FYI Any new development is subject to Subchapter E commercial design standards. Additional comments will be made when the site plan is submitted. U1 - FYI Compatibility Standards The site is subject to compatibility standards due to the adjacency of the SF-3 zoning of the properties to the Northern, Eastern and Southern (i.e., the triggering property). Reference 25-2-1051, 25-2-1053 Any structure that is located: a) At least 50 feet but less than 75 feet from any part of a triggering property may not exceed 60 feet b) Less than 50 feet from any part of a triggering property may not exceed 40 feet Reference 25-2-1061 A 25-foot compatibility buffer is required along the property line shared with the triggering property. No vertical structures are permitted in the compatibility buffer. Reference 25-2-1062(B), 25-8-700 An on-site amenity, including a swimming pool, tennis court, ball court, or playground, may not be constructed 25 feet or less from the triggering property. Reference 25-2-1062 DBC15 Rezoning – new comments This site must meet affordability minimums per LDC 25-2-656 to be eligible for DB90. A signed approval letter from the Housing Department will be required with site plan submittal Menchaca is the Principal Street for this site. Any buildings fronting this street will be required to have 75% of the ground floor as commercial uses. . NOTE: A lobby serving a use other than a pedestrian-oriented commercial or civic space is not counted as a pedestrian- oriented commercial or civic place. If a building includes a mix of uses, a non-residential use:  may not be located above a residential use; and  may not be located on or above the third story of the building. Austin Transportation Department – Engineering Review: 12 C14-2026-0015 – Sola Flats; District 5 9 of 14 C14-2026-0015 10 The signed TIA Determination Worksheet is for 60 multifamily dwelling units; if the proposed rezoning includes any additional uses/units, an updated worksheet is required. 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. 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. Existing Street Characteristics: Name ASMP Classification ASMP Required ROW Existing ROW Existing Pavement Sidewalks Bicycle Route Capital Metro (within ¼ mile) Menchaca Road Level 3 80’ 88’ 44’ 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. Based on current public infrastructure configurations, it appears that service extension requests (SER) will be required to provide service to this lot. 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 12 C14-2026-0015 – Sola Flats; District 5 10 of 14 Exhibit A 12 C14-2026-0015 – Sola Flats; District 5 11 of 14Exhibit B 12 C14-2026-0015 – Sola Flats; District 5 12 of 14August 5, 2026 Cynthia Hadri Austin Planning CITY OF AUSTIN P.O.. Box 1088 Austin, TX 78767 RE: Zoning Change Application 3415 Menchaca Road C14-2025-0015 Sola Flats Dear Ms. Hadri: As representatives for the owner of the referenced property, we are providing the following summary and project description for the referenced zoning application. 1. The request is for GR-DBC15 to accommodate a proposed residential project. 2. The project may include a retail component on the first floor, with residential rental or owner-occupied units on floors 2-7. That decision will be dependent on market conditions and interest. 3. Access will be taken to Menchaca Road and a landscape buffer will be provided on the north, east, and south sides of the project where adjacent to existing SF-3 properties. 4. All development will be consistent with the GR base district and the City-Wide Density Bonus ordinance under the DBC15 combining district. Based on these facts, we respectfully request your support of this zoning change application. Please feel free to contact me if you have any questions or need any additional information. Sincerely, Richard Mathias Exhibit C _____________________________________________________________________________________ 27001 Montana Creek Crossing Marble Falls, Texas 78654 512-844-1644 Celebrating 41 Years of Service 1 e g a P 12 C14-2026-0015 – Sola Flats; District 5 13 of 14 12 C14-2026-0015 – Sola Flats; District 5 14 of 14