AUSTIN (KXAN) — Austin City Council took steps toward a long-awaited revitalization of the Colony Park community in east Austin that will funnel jobs, affordable housing and other critical amenities to the area.
During its Thursday meeting, city council created a tax increment reinvestment zone (TIRZ) that closes an $81 million funding gap, which pushes the Colony Park Sustainable Community project toward construction. The City's Economic Development Department said the project is the largest redevelopment of City-owned land since the Mueller project.
The entire project, which will be developed by Catellus Development Corporation, costs $257 million in total, with other funds coming from public land sales, department capital budgets and the creation of a public improvement district (PID).
The City said since it was annexed in 1973, Colony Park has gone without equitable access to healthy food, transit, health care and jobs. The neighborhood has pushed for improvements since the City began the master planning process in 2012.
“After 50 years of disenfranchisement and broken promises, the historic council vote on Thursday's agenda for the Colony Park Sustainable Communities financial plan is hopefully the beginning of transforming the Colony Park/Lakeside community and the catalyst for changing other areas of the Eastern Crescent," said Colony Park Neighborhood Association President Barbara Scott in a press release.
The project includes plans for nearly 2,000 new homes in the neighborhood, which is east of U.S. Highway 183. Of the new homes, the City said 381 will be allocated for income-restricted workforce housing for households that make less than the median family income.
It's estimated the mixed-use development will create 1,200 permanent jobs and provide 53 acres of parks, open spaces and trails. The project could also generate another $3.5 million in property and sales tax revenue annually, according to the City.
Once the project is complete, Colony Park will also be linked to the downtown area through the upcoming MetroRapid Expo bus line and the Green Line commuter rail line. Both are part of Project Connect, the City's plan to completely transform and ramp up Austin's public transportation system.
Along with the TIRZ approval, the city council also began the rezoning of the Colony Park Planned Unit Development (PUD) to allow for more density.
