DOWNTOWN INCENTIVE ZONING Julie Fitch – Downtown Austin Alliance – 09/26/2012

WHO WE ARE  Public Improvement District Formed in 1993  Mission – To preserve and enhance the value and vitality of downtown Austin  Philosophical Approach – We represent the property owners

Many of these buildings were constructed after 2000 and used City of Austin programs created to encourage development in the urban core. Downtown Austin 2012 Photo Credit: Michael Knox

PREVIOUS PROGRAM  Smart Growth Program (1999 – 2003)  Downtown Projects given points for locating along transit corridors, complying with design guidelines, etc., and qualified for fee waivers/reimbursements  Approximately 15 projects  Approximately $6 million in fee waivers and infrastructure reimbursements  Died due to negative public perception and because it was erroneously linked with a huge public failure:

THE INTEL SHELL 2001 Dotcom Bust2007 Implosion

WHICH BECOMES Photo Credit: Michael Knox

CURE ZONING  CURE - Central Urban Redevelopment Combining District (1999 – 2013 ? )  Allows cases within a geographic boundary, including all of downtown, to seek additional FAR through zoning change  Subject to Planning Commission and City Council approval  Can take months and payment of significant consultant fees to navigate the public process  Theoretically unpredictable, but historical support

CURE CRITICISMS  Unpredictable  Developers get to build more square footage “for free”  Downtown residential not affordable

Downtown Austin Development Projects used CURE to attain additional height or density  A Decade of Downtown Development A Decade of Downtown Development

Downtown Austin Development Projects used CURE to attain additional height or density

System in which development projects can earn density above base entitlements by providing designated community benefits DENSITY BONUS

DENSITY BONUS – HOW IT WORKS Theory  Base FAR Entitlements  Sale Price of Land  Incremental SF profit shared by developer and community Austin  CBD = 8:1 FAR  ~$30/developable SF  DAA Position: Increased tax base IS the community benefit

2008 INTERIM DENSITY BONUS  Result of CoA Affordable Housing Incentives Task Force  Downtown Projects can choose to achieve additional density by seeking CURE, or may go through interim density bonus program  10% of the incremental square footage above base entitlements must be dedicated to affordable housing, OR  May pay a fee in lieu of $10/Bonus SF  All development fees except parkland dedication waived  Out of approximately 10 higher density projects proposed since this interim ordinance passed, all chose to seek CURE

CONCLUSIONS CURE is a loophole CURE works Housing AdvocatesDowntown Austin Alliance

DOWNTOWN AUSTIN PLAN  Density Bonus Program created by HR&A  Few options to concentrate benefits  Intent = Incentivize Density  Results = ?  City Council Adopted DAP policy document December 2011 Final Version to Change

POTENTIAL DOWNTOWN BUILD-OUT

AREAS FOR DENSITY

NEXT STEPS  City of Austin recalibration and codification process  Land Development Code Amendments  Test the Theory

Downtown Austin Alliance JULIE FITCH