20250331-001: FY26 Budget Recommendation — original pdf

Recommendation

URBAN RENEWAL BOARD RECOMMENDATION 20250331-001 Commissioner Watson FY26 Budget Recommendation Seconded By: Commissioner Tetey Date: March 31, 2025 Subject: Motioned By: Recommendation Approve the base budget for the Urban Renewal Board (the “Board”) consistent with the approved FY 2024-25 budget, including a 5% increase for inflation, and providing an additional $100,000 to support additional anticipated operational expenses in connection with the proposed development project on Blocks 16 and 18 (the “Development Project”). During the past year the Board has engaged in an additional successful year of community engagement with area stakeholders including Ebenezer Church, Huston Tillotson University, Six Square and through the Board’s URB Stakeholder Working Group that includes area residents, businesses, and institutions, and recommended a development team for the Development Project that was approved by City Council. Now that predevelopment activities for the Development Project are imminent, we anticipate a busy year of activation relating to the Development Project and planning initiatives relating to the future of the Board beyond the completion of the Development Project. Additional budgeting also will help us provide complementary planning efforts to other major projects being undertaken in the immediate surrounding area including without limitation the expansion of Interstate 35 and the “cap and stitch” projects expected at 11th Street, the continued implementation of Project Connect and associated transportation improvements, planning initiatives by the Economic Development Department and District One offices, and the continued development of the African American Cultural Heritage District. We are requesting a total FY 2025-26 budget of $150,000. The development project for Block 16 & 18 that we have been advancing represents the most significant placemaking effort along East 11th Street and in the Urban Renewal Plan area in at least two decades, and potentially will set the stage to create a truly meaningful connection between Downtown and Greater East Austin. The Board requests funding to engage with consultants for additional planning to ensure that we properly coordinate pre-development and development activities to connect with and enhance each of these other monumental efforts to improve our city. Description of Recommendation to Council FY 2025-2026, the Board requests the base funding amount be increased for inflation and supplemented with funds to support additional operational expenses, planning initiatives for the Board, and additional planning relating to the Development Project. Rationale: 3957386.v1 1 of 3  Activation of Blocks 16 and 18 As the Development Project moves into the pre-development phase, there have been initial discussions about the potential additional activation of Blocks 16 and 18 (and particularly Block 16; Block 18 for the past several years has been licensed to a nonprofit for the operation of Kenny Dorham’s Backyard) to make additional beneficial use of those parcels and to take advantage of opportunities to engage with the community in advance of pre-development and construction. Additional funds are requested to engage in planning related to potential activation opportunities and preparing the parcels for use for such opportunities, including one-time and reoccurring events, and temporary parking uses. Please note that the Board historically has had minimal amounts in its budget relating to the maintenance of Blocks 16 and 18 – some mowing and general maintenance – which is insufficient for the related engagement and activation activities commensurate with an advancing development project. Future Planning The Board has diligently pursued the tasks assigned to it by City Council when the Urban Renewal Plan (the “Plan”) was renewed in 2018, and has completed its work on the updates to the Plan and the neighborhood conservation combining district documents relating to the Plan area. In the past year, the Board also has moved forward with the RFP process for the development of Blocks 16 and 18 – the final item assigned to it by City Council – and recommended a developer for the Development Project that was approved by the City Council. The Board has engaged in preliminary discussions regarding what the future of the Board might be once the Development Project is completed. Many similarly situated urban renewal agencies and boards across the country have transitioned over time into other district support organizations once the goals of their original urban renewal plans have been accomplished. The Board would like to build on the engagement accomplished in the work to date and potentially help transition the momentum into a longer-term district support organization as has been done by similar bodies nationwide. Additionally, the unique proposal by the development team for the Development Project, selected through a competitive RFP process in 2024, includes extraordinary public benefit such as a diverse mix of affordable housing and affordable commercial and creative/cultural space. In comparison to a more standard commercial mixed-use development, the proposal by the development team includes options for future public ownership of significant portions of the Development Project. Part of the Board’s critical work in the next year, while the development team advances specific building and construction plans for the Development Project, will be to look at the long-term governance of the future public assets as well as to consider what additional types of development activities could help support the surrounding Urban Renewal Plan area over the long term. This planning may include the consideration of a variety of public and private partnerships and cooperation and collaboration with a variety of parties, as well as additional ways to provide long term revenue to the Urban Renewal Plan area. Therefore, the Board would like to engage in a strategic planning process to determine its best path forward, from continuing to serve as a conduit for community input for development in the Urban Renewal Plan area, to engaging in various activities to provide support for the area, to potential future governance models, and requests funding to engage with consultants as it begins 3957386.v1 2 of 3  that process. It is intended that this work will be in coordination and collaboration with various City departments undertaking district policy work such as the City Planning Department and the Economic Development Department, as well as area nonprofit organizations such as Six Square and other area stakeholders. Connection of the Development Project to Changes in the Surrounding Area In addition to the Development Project, other major changes are coming to East 11th Street and the surrounding area. The Interstate 35 expansion will begin, and with it cap and stitch projects along the expansion area, including at 11th Street. Project Connect will continue and may bring transportation planning and other improvements to the corridor. The newly created department of Arts, Culture, Music and Entertainment will continue strategic and other planning related to the African American Cultural and Heritage District. The Board would like to engage in additional planning to ensure that the Development Project is connected to and complementary to each of these efforts and others that will be occurring. Vote: 5-0-0 The Recommendation was approved on Commissioner Watson’s motion, Commissioner Davis second, on a 5-0-0 vote at the March 24, 2025, meeting. Commissioner Motwani and Commissioner Hawkins were absent. For: Chair Escobar, Vice Chair Pierce, Commissioner Watson, Commissioner Davis, Commissioner Tetey Against: N/A Abstain: N/A Absent: Commissioner Motwani, Commissioner Hawkins Attest: Chair Manuel Escobar 3957386.v1 3 of 3