Item 1. Presentation by Catellus and City Staff on Mueller Master Development Agreement Status and Next Steps — original pdf

Backup

Mueller Master Development Agreement Update RMMA Plan Implementation Advisory Commission April 30, 2024 Agenda • Overview of Mueller History and Goals • Update on Mueller development program numbers • Mueller achievements to date • Remaining work to complete • Why Mueller is taking longer • Staff Recommendation for Mueller MDA Amendment • Timeline for RMMA Plan Implementation Advisory Commission and Council C I T Y O F A U S T I N RMMA PIAC 4/30/2024 2 Mueller’s public open spaces offer a wide variety of options for parkgoers, from the more active space in Lake Park where organizers can host a dog walk to the more passive at Jessie Andrews Park, which features the whimsical sculpture of “Ocho.” A Brief History Citizens for Airport Relocation release development plan City Council adopts recommendations from Process & Goals Task Force City Council selects ROMA to create master plan Mueller airport closes; Bergstrom airport opens City Council adopts Redevelopment Plan; establishes Mueller Commission City Council selects Catellus as master developer Master Development Agreement contract signed by City and Catellus First construction begins (roads, Dell Children’s Medical Center, regional retail center) First residents move in, first parks open, the great recession began First income-qualified homeowners move in Seton HQ, first apartments (Mosaic) open, PUD amendment 2 | RMMA PIAC | 04/30/2024 Goals: • Fiscal Responsibility • East Austin Revitalization • Economic Development • Diversity and Affordability • Neighborhood Compatibility • Sustainability H-E-B, Thinkery open Aldrich Street town center district opens Mueller earns LEED for Neighborhood Design PUD amendment for higher density, COVID pandemic Marshall Middle School opens Dell Children’s opened in 2007 to provide world-class medical care to pediatric patients. It became the first hospital in the world to achieve LEED- platinum certification. RMMA PIAC 4/30/2024 3 C I T Y O F A U S T I N 1984 1996 1997 1999 2000 2002 2004 2005 2007 2008 2009 2013 2016 2017 2020 2023 By the Numbers 3 | RMMA PIAC | 04/30/2024 Mueller Green Building Requirements • Single-Family: Min. 3-Star AEGB • Commercial > 25,000 SF and Multi- family: Min. 2-Star AEGB and/or LEED Certification Category MDA Program To Date Upon Completion Number of homes 4,579 Number of affordable homes (25%) 1,145 Number of residents 10,000 AEGB certified homes 4,875 1,390 12,000 4,719 6,900 1,725 16,500 Commercial square footage 4.0 million 3.4 million 4.8 million Number of employees 10,000 10,300 14,500 AEGB certified projects* 64 l a i t n e d i s e R l a i c r e m m o C s k r a P Parks and open space 140 acres 127 acres 144 acres Hike and bike trails 12 miles 10.5 miles 12 miles All figures are approximate; completion numbers are subject to change and include full build-out of UT lease site and Dell Children’s *Also includes over 30 LEED certified buildings to date C I T Y O F A U S T I N RMMA PIAC 4/30/2024 4 The former control tower, one of two historic buildings in Mueller preserved from the former airport • • • • • Mueller Achievements to Date 25 out of 700 acres remain to be taken down for development $2.5B+ in taxable value $52M+ in contracts to MBE/WBE businesses, to date • Close to 1,400 affordable housing units delivered, out of 1,725 units • Nearly 12,000 people currently live at Mueller and more than 10,000 people work at Mueller 127 of 144 acres public parks and open space delivered, including 75 acres recently dedicated back to the City • Destinations: Aldrich Street, Thinkery, Lake Park, farmers’ market, AISD Performing Arts Center 150+ businesses operate in Mueller, 59% local (77% local in town center) • Major employers include: o Ascension Seton o Austin Energy o Dell Children’s Medical Center o H-E-B o Marshall Middle School o Teachers Retirement System of Texas o Texas Mutual Insurance C I T Y O F A U S T I N RMMA PIAC 4/30/2024 5 5 Austin Energy is one of seven headquartered companies in Mueller, providing a wide range of job opportunities in East Austin. Remaining Work to Complete o o o • • • • Enable the funding and completion of two key parks: Roger Lavon Taylor Sr. Control Tower Park and Plaza and Tannehill Trail Plaza construction delay due to adjacent multifamily construction; work would need to stop in August for all invoices to be paid by December Trail delay due to additional creek stabilization work needed; park construction would not begin due to MDA expiration and no mechanism for City to reimburse costs Enable delivery of remaining planned affordable units not contracted Including higher-density site planned near Marshall Middle School, 70+ affordable for-sale or for rent-units Convey the remaining unsold properties and capture additional revenue to the City from home and land sales occurring after 12/02/2024 • Manage the disposition of the town center district parking garages Property Owner Association transition would proceed as planned at the end of 2024 8 | RMMA PIAC | 04/30/2024 The Roger Lavon Taylor Sr. Control Tower Park and Plaza construction has started and would take 10-12 months C I T Y O F A U S T I N C I T Y O F A U S T I N RMMA PIAC 4/30/2024 6 Tannehill Trail will provide a scenic route to bypass a difficult pedestrian environment on E 51st Street • • • Why Development is Taking Longer Increased Intensification of Overall Development Plan: Commercial/Civic has increased by 20% from 2004 plan Residential has increased by 50% Global Financial Crises between 2007 and early 2009: Catellus invoked a Toll Period from April 1, 2009 through February 22, 2013 (3 years and 10 months) due to market conditions under the MDA • A tolling period halts the City’s and Catellus’ development obligations when one or more market sectors are in decline • No extension of time granted under the MDA COVID Pandemic: between March 2020 - January 2023 Current Market Conditions: • Higher interest rates, higher construction costs has made it more difficult for projects to pencil and get loans Currently, tolling conditions exist for commercial and multi-family • C I T Y O F A U S T I N C I T Y O F A U S T I N RMMA PIAC 4/30/2024 7 6 | RMMA PIAC | 04/30/2024 Mueller has continued to add both residential and commercial density over the years, thanks to community and Council support. During Toll Period and COVID, Catellus slowed development pace but did not stop work 8 | RMMA PIAC | 04/30/2024 Regardless of the transition, Catellus and the POA are working to ensure fun, free, family-friendly events continue at Mueller, including KUTX’s Rock the Park and Texas Farmers’ Market. Staff Recommendation • • In order to complete current Master Development Agreement obligations, staff recommends an extension of the MDA term to the end of 2026 Limited MDA Amendment with Council approval: o Change the MDA expiration date to December 31, 2026 o Reset calculation of annual required property takedowns based on remaining acreage o Extend amount of time to prepare final project accounting o Adjust Catellus and City administrative fees to reflect level of time and effort needed to complete the MDA obligations • Request for Council Action May 30, 2024 • RMMA PIAC would extend until the MDA closes out or terminates in 2026 o Transition Working Group continues to work with Staff and Catellus on transition items C I T Y O F A U S T I N C I T Y O F A U S T I N RMMA PIAC 4/30/2024 8 Timeline April 30 Mueller Commission Special Called Meeting May 3 Update in Mueller newsletter Eliminating Central East Austin’s food desert… 8 | RMMA PIAC | 04/30/2024 May 14 Mueller Commission Public Meeting May 28 City Council Work Session May 30 City Council Meeting The 300-plot community organic garden for Mueller, supporting residents to grow green Mueller’s H-E-B is the company’s greenest grocery store, and it features six restaurants inside Colleen’s Kitchen, one of many local restaurants along Aldrich St., is owned by a Mueller resident C I T Y O F A U S T I N C I T Y O F A U S T I N RMMA PIAC 4/30/2024 9 Discussion and Questions 4 | RMMA PIAC | 04/30/2024 C I T Y O F A U S T I N RMMA PIAC 4/30/2024 10