DOWNTOWN INCENTIVE ZONING

DOWNTOWN INCENTIVE ZONINGJulie 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 2012Photo 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 Bust 2007 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 2000-2010

10+ Projects used CURE to attain additional height or density

A Decade of Downtown Development

Downtown Austin Development 2000-2010

10+ 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

loopholeCURE works

Housing Advocates Downtown 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 Alliancejulief@downtownaustin.com512-381-6268

JULIE FITCH