Item 5. Draft 2023 RMMA PIAC Annual Internal Review — original pdf

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DRAFT Annual Internal Review This report covers the time period of 7/1/2023 to 6/30/2024 Robert Mueller Municipal Airport Plan Implementation Advisory Commission The Board/Commission mission statement (per the City Code) is: Advise the City Council on implementation of the Robert Mueller Municipal Airport Master Plan, the 1996 Robert Mueller Municipal Airport Process and Goals Task Force Report, and other redevelopment issues at Robert Mueller Municipal Airport, including proposed amendments to the Master Plan, land disposition strategy, traffic, urban design and zoning issues, demolition of existing facilities; and at the request of the City Council, make recommendations on amendments to the Master Plan and other matters related to Robert Mueller Airport redevelopment. Section 2- 1-169 of the City Code. The Robert Mueller Municipal Airport (RMMA) Plan Implementation Advisory Commission (PIAC) was created in 2000 to provide oversight at a time when the Redevelopment and Reuse Plan for Mueller had been accepted, and the City was preparing to seek a master developer. In 2002 the master developer, Catellus, was selected and approved by City Council, and in December of 2004, the Master Development Agreement (MDA) between the City of Austin and Catellus was approved and executed by City Council. Because the MDA contractually obligates the City and Catellus to develop the property per the provisions in the agreement, the practical role of the PIAC has evolved to encompass the following: • Advise Council on items that come before Council, including those needing formal approval, such as proposed zoning revisions to the Mueller PUD; • Advise Council on any items that require Council approval stipulated in the MDA, such as selling land within the Mueller boundary to another governmental entity; • Advise Council on bigger picture topics that may impact the ability to implement the plans as fully anticipated, such as, but not limited to, transit or Interstate 35 improvements; and • Serve as a venue for the master developer and City staff to report progress, hear concerns and receive feedback. This last role is paramount and provides a unique opportunity to problem- solve as Catellus, together with the community and City staff, work to implement the Mueller vision.  Background In 1996, a Council-appointed 16-member task force representing a broad spectrum of Austin interests called for the creation of a compact, pedestrian-oriented, and mixed-use community. The plans to redevelop the airport were guided by a vision and goals developed with extensive community input. The task force challenged the City to create a district that would be a model for responsible urban development - an alternative to land-consumptive and automobile-dependent development patterns throughout the region that could influence the form and pattern of growth within Austin as it entered the new millennium. With this vision, the task force and the City Council articulated six clear goals, stating the redevelopment of RMMA must marshal long-term market forces through an effective public-private partnership to promote: • Fiscal Responsibility: Redevelopment must create a positive revenue stream that will fund on- site infrastructure and increase the City’s tax base for the benefit of all citizens. • Economic Development: The project should serve to reinforce Austin’s role in an increasingly global marketplace and create a wide range of employment opportunities for a diversity of the community’s citizens. • East Austin Revitalization: The project must promote economic development opportunities within East Austin, giving local residents a direct stake in redevelopment. • Compatibility with Surrounding Neighborhoods: Development must maintain and enhance the quality of life in adjacent neighborhoods, providing complementary linkages, land uses and transportation patterns. • Diversity: Redevelopment must offer a wide range of housing choices in order to create a new community of socially and economically diverse residents. • Sustainability: Development should be planned in a way that promotes energy and water efficiency, environmental quality, reduced auto dependency, watershed protection and green space preservation. In 1997, the City initiated the redevelopment master planning process that included comprehensive public participation at all stages of the work. Specific planning principles were established that became the structuring elements of the master plan to support a vision of a new community within a community – one that is welcoming, diverse and inclusive, that complements and extends the surrounding neighborhoods and that becomes an integral part of the urban and social fabric of Austin. Redevelopment of the airport was also intended to achieve broader public objectives for economic development and revitalization, helping to overcome the perceptual barrier of the IH-35 freeway, and providing an alternative to the outward expansion of the City. In 2000, the City Council accepted the “Robert Mueller Municipal Airport Redevelopment and Reuse Plan” and directed implementation of it, which subsequently led to the solicitation for a Master Developer for Mueller. Today, the Mueller Design Book serves as the Master Plan and encompasses and incorporates the 2000 Redevelopment and Reuse Plan along with refinements that have been made to the Plan since its adoption.  1. Describe the board's actions supporting their mission during the previous calendar year. Address all elements of the board's mission statement as provided in the relevant sections of the City Code. A. The Commission received an update at the August 8, 2023 meeting on the status of Minority and Women-Owned Business Enterprise (MBE/WBE) activities to meet Mueller project goals. As of May 31, 2023, more than 90 minority and women-owned businesses had been awarded contracts worth $51.14 million. The contracts represent 23% of the total contracts awarded by Catellus since the inception of the Mueller project. Hispanic American businesses received 42% of the contracts. Women-owned businesses received 31% of the contracts and African American business owners were awarded 25% of the contracts. The remaining contracts were divided between Asian Pacific American contractors (2%) and Native American businesses (0.03%). It should be noted that contract totals are substantially unchanged from the two previous reporting periods. B. City staff discussed administrative amendments to the Mueller PUD at the August 8, 2023 meeting. One amendment clarified the ability of row house owners to build Accessory Dwelling Units (ADU) on their property. The discussion was similar to a November 2022 presentation on the same topic, and the August 2023 presentation proceeded the administrative approval of the PUD amendment by the City of Austin’s Planning Department. C. The Commission received an update during the September 12, 2023 meeting from representatives of Catellus, Homebase Texas and the Mueller Foundation regarding the status of the Affordable Housing program. At the time of the presentation, the Foundation had 704 affordable homes in its portfolio that represent 25.7 percent of all for-sale homes and condos that are completed, constructed or contracted. According to program criteria, affordable homeowners must have incomes at or below 80% of the Median Family Income (MFI) for Austin. In addition, the program portfolio includes 68 workforce units for homeowners with incomes between 80% and 120% of the Austin MFI. The Foundation acknowledged it has released 38 homes for sale at market rate prices since the program’s inception. In addition, Catellus reported Mueller has 961 affordable apartments that are completed, constructed or contracted representing 25% of all rental units. In response to PIAC commissioner questions about the long-term sustainability, Foundation officials discussed factors that will reduce affordable housing units, including the high cost to the Foundation of purchasing some older affordable homes, high interest rates and the desire of some longtime homeowners to leave the program. D. At the October 10, 2023 Commission meeting, Austin Parks and Recreation Department (PARD) staff provided an update on their negotiations with the Mueller Property Owners Association (POA) regarding maintenance of the 75 acres of public perimeter parks in Mueller. The Commission approved a recommendation during the January 9, 2024 meeting urging City Council approval of the Parkland Maintenance Agreement between PARD and the POA. In addition, the Commission approved a recommendation  during the March 12, 2024 meeting in support of funding $257,140 in the PARD 2024- 2025 budget to adequately support the City of Austin’s maintenance contribution to the public perimeter parks. E. The Commission received a staff briefing on the status of the Mueller Parking and Transportation Management District (PTMD) at the November 14, 2023 meeting. City Transportation and Public Works Department staff discussed the expansion of paid parking in Mueller, potential transportation-related projects to be implemented with PTMD funds, and the implementation of a hybrid paid parking and residential permit parking system in Mueller. City staff also discussed plans for a new PTMD board in 2024. The Commission also received public testimony about safety concerns and the need for stronger enforcement of parking laws. F. The Commission received updates from Catellus and Economic Development Department staff during the November 14, 2023 meeting on plans for the redevelopment of the Browning Hangar site. During the April 9, 2024 and May 14, 2024 meetings, commissioners discussed suggestions for the continued public use of the current hangar. G. During the January 9, 2024 Commission meeting, Capital Delivery Services Department staff reviewed ongoing and planned improvements to the segment of the Airport Blvd. corridor that borders the Mueller development. The presentation included traffic accident data during a five-year span and an update on enhancements to area bike lanes, sidewalks and traffic signals at major intersections. H. The Commission held a special called meeting on April 30, 2024 and the Commission received a recommendation from Catellus management and Economic Development Department staff to extend the Mueller Master Development Agreement (MDA) expiration date. During the regular May 14, 2024 meeting, commissioners approved a recommendation to extend the MDA expiration date to December 31, 2028. The MDA may be concluded at an earlier date if all project obligations are met. I. The Commission received an update during the May 14, 2024 meeting from Studio Balcones on revisions to the design for the new plaza being built around the Control Tower. Construction of the new Roger Lavon Taylor Sr. plaza and paseo is projected to be completed in the first quarter of 2025. The Commission also received updates from City staff and Studio 8 Architects on the Control Tower repairs currently underway. 2. Determine if the board's actions throughout the year comply with the mission statement. The briefings on affordable rental housing options and the Mueller Foundation Affordable Home program support the project goal of affordability and diversity. The various discussions on the Control Tower and the Browning Hangar support the goal of compatibility with surrounding neighborhoods. The briefing on Minority and Women-Owned Business Enterprise outreach efforts supports the goals of economic development, East Austin revitalization and diversity. The various presentations on Mueller parks and greenways support the goals of  sustainability and compatibility with surrounding neighborhoods. The Airport Blvd. corridor briefing supports the compatibility with surrounding neighborhood’s goal. The presentation and related recommendation to Council on the Mueller MDA extension support all of the project’s guiding principles. The Commission submitted three recommendations to Council during the 12 months covered by this report. During the May 14, 2024 meeting, commissioners approved a recommendation in support of an amendment to extend the term of the Mueller MDA to December 2028. The Commission approved a recommendation during the January 9, 2024 meeting in support of the maintenance agreement between PARD and the Mueller Property Owners Association. The agreement was subsequently approved by City Council. The commissioners also unanimously approved a recommendation during the March 12, 2024 meeting, urging Council to adequately fund the city’s maintenance contribution for the publicly owned perimeter parks in Mueller. 3. List the board’s goals and objectives for the new calendar year. In anticipation of the completion of the Master Development Agreement (MDA) between the City of Austin and Catellus Austin, LLC on December 2, 2024, the Commission established a Mueller Transition Working Group in January of 2024 to research and advise the Commission on the fulfillment of the MDA, including transfer of governance, delegation of responsibilities, and other transition issues. The Working Group's activities include the review of relevant documents, and interviews with organizations responsible for the achievement of the MDA, and with key individuals in the history and development of the Mueller community. The Group's scope also includes identifying the status of agreement fulfillments with Catellus and other responsible parties, focusing on areas still needing required action. The work group intends to report their findings to the Commission in August 2024 with a proposed action item to forward the report to City Council. At an April 30, 2024 Special Called Meeting of the Commission, we heard a proposal from City Staff and Catellus to postpone the ending of the MDA from December 2, 2024 to December 31, 2027. At its regularly scheduled May 14, 2024 meeting, the Commission then approved a recommendation to Council, changing the extension to December 31, 2028 to provide additional time. The Staff's and Catellus' recommendation remained at the earlier date, and at its May 30, 2024 meeting, the City Council approved the extension to December 31, 2027. We have used the goals adopted by the City Council in the 2000 Mueller Redevelopment and Reuse Plan (adding Affordability to the Diversity goal) to organize our goals for the future.  Fiscal Responsibility: Redevelopment must create a positive revenue stream that will fund on-site infrastructure and increase the City’s tax base for the benefit of all citizens. The Commission will request updates from the Economic Development and Financial Services Departments regarding Mueller’s Tax Increment Financing (TIF), seeking assurance that: 1. The TIF continues to protect the City of Austin from financial risk. 2. The TIF still provides an adequate revenue stream to fund on-site infrastructure. 3. Mueller will benefit the City’s tax base once its TIF debt is retired. 4. As the updated December 31, 2027 expiration of the Master Development Agreement (MDA) approaches, the Commission will seek assurances of; • the financial stability of the Mueller Property Owners Association, and • the continued accessibility and maintenance of Mueller parks and other amenities open to the public for Civic uses with well-defined responsibilities between the City and the Mueller Property Owners Association. Economic Development: The project should serve to reinforce Austin’s role in an increasingly global marketplace and create a wide range of employment opportunities for a diversity of the community’s citizens. We will request that Catellus share their plans towards effectively transitioning out of Mueller’s governance, and to report on any key milestones to be reached in the interim. The Commission may request updates every other month on that transition process, and/or concerns as Catellus prepares to complete the MDA responsibilities. The Commission will ask for reports from pertinent City Departments (i.e. Economic Development and Law Department) on items considered critical to closing out the MDA. East Austin Revitalization: The project must promote economic development opportunities within East Austin, giving local residents a direct stake in redevelopment. Early in Mueller's redevelopment discussions, the surrounding neighborhoods expressed the desire to preserve Mueller's iconic Control Tower and historic Hangar, a sentiment now also embraced by Mueller residents. The Commission will continue to ask for updates on the future of the Tower and Hangar, their possible reuse, and/or their disposition. We will continue to encourage Catellus and the City to seek public input for the programming and planning for those structures and their surroundings.  The Commission may request the Economic Development Department to consider establishing a City-led socio-economic strategy to support training programs targeting businesses located within Mueller that would offer the east side communities potential business and employment opportunities. This vision includes reaching out to the Austin Independent School District high schools serving Mueller, along with Austin Community College, Houston-Tillotson University, the University of Texas, and others, to establish a partnership with the Mueller businesses and the City in creating job training programs. Compatibility with Surrounding Neighborhoods: Development must maintain and enhance the quality of life in adjacent neighborhoods, providing complementary linkages, land uses and transportation patterns. The Commission supports Mueller land uses that are complementary to adjacent neighborhoods and that are accessible to the larger community via safe, multi-modal means. We may request updates from the City’s Transportation Department and others regarding: 1. East 51st Street Mobility Project 2. Airport Boulevard improvements 3. A traffic impact analysis of Mueller’s perimeter roadways 4. Impacts of the proposes IH-35 redesign on access to Mueller 5. Any other proposed transit or transportation developments affecting or improving Mueller’s accessibility. Diversity & Affordability: Redevelopment must offer a wide range of housing choices in order to create a new community of socially and economically diverse residents. With the impending end of oversight provided by Catellus, some assurance is needed that the affordable homes program established by Catellus and meeting the MDA requirements for at least 25% of all housing be affordable, evenly dispersed throughout the site, and generally evenly distributed between owned and leased units with no more that a 60/40% mix of either, will be continued. Currently the assurance for single-family ownership homes to be maintained in the affordable program is in place through restrictive covenants and purchase options and right of first refusals with the non-profit Mueller Foundation. A long-term, sustainable, legal mechanism to maintain housing stock in the affordable program via public oversight by the City needs to be established prior to the end of the MDA. This year, the Commission will request that Catellus and Economic Development review of the impact of rising costs, such as fee increases associated with the POA and higher rental rates, on lower-and-middle-income populations. We will request additional information regarding the mechanisms to securely hold dwellings within the affordable housing program, including the agreement of owners of rental properties, to provide a certain number of units in the affordable program, and to ensure the current wide range of housing choices are available in perpetuity. Sustainability: Development should be planned in a way that promotes energy and water efficiency, resource protection, reduced auto dependency, watershed protection and green space preservation. The Commission may request Catellus, the City, Austin Energy, Austin Water, or other entities to report on sustainability goals and milestones met at Mueller, including its overall impact on Austin’s environment compared to other development.