City Council approves downtown height caps, for now

Council also approved an ordinance creating a temporary 350-foot height limit for projects in the Central Business District, a move meant to preserve Austin’s downtown affordability and design programs following changes to state law.

The action responds to Senate Bill 840, which since Sept. 1 has barred cities from using floor-area ratio limits for mixed-use or multifamily projects in commercial zones. Since the city’s downtwon zoning relied on an 8:1 floor-to-area ratio instead of a height cap, the state law would have effectively removed height limits for new residential towers. Planning staff recommended a 350-foot cap that was seen as in keeping with recent downtown building patterns to keep development within predictable parameters. That change also allows continued developer participation in the Downtown Density Bonus Program, which funds affordable housing and streetscape improvements.

Speakers during public comment on the change were divided. Some urged Council to lower the cap to roughly 210 feet, saying a higher limit would reduce housing-fee revenues and exempt more projects from Great Streets requirements. Others opposed any cap because of the view that height restrictions discourage housing supply and economic activity. 

Council Member Chito Vela successfully introduced an amendment making the new rule interim, directing staff to return by May 2026 with an updated program after public engagement.

— Chad Swiatecki

Convention Center construction continues

City Council on Thursday approved four items tied to the in-process reconstruction of the Austin Convention Center, authorizing new financial authorizations, contract expansions, and communications funding for the project.

A pair of ordinances authorize issuing and refunding Hotel Occupancy Tax revenue bonds totaling roughly $695 million to refinance older debt and provide new funding for the project. Another vote amended the construction-manager-at-risk contract with JE Dunn/Turner, adding $450 million and bringing total contract authority to $1.65 billion. A separate item added $540,000 to the city’s outreach contract with Eis Design to sustain public-information work through 2028.

In agenda documents staff said the combined actions keep the project within the previously approved $1.66 billion overall budget and align construction schedules with related downtown infrastructure work, including an Austin Energy district-cooling plant and street-safety upgrades.

Public speakers criticized the amendment as rushed and insufficiently transparent, citing what they described as unclear accounting of total costs and financing terms. Others argued that the city should pause the project or subject it to an independent audit before proceeding.

Hotel and tourism industry representatives countered that the Convention Center rebuild is essential to maintaining Austin’s competitiveness for major events and sustaining hotel-tax revenues that fund cultural and visitor-promotion programs.

Separately, opponents of the new Convention Center have submitted a petition seeking to place a referendum on halting or downsizing the project on the May 2026 ballot. The City Clerk is reviewing the filing.

— Chad Swiatecki

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ELSEWHERE IN THE NEWS

The Austin Chronicle reports on the troubling news about health care costs that is just around the corner.

The free weekly also sits down with Rep Gina Hinojosa to talk about her campaign to be Texas’ next governor.

It’s not quite a Louvre heist, but a multitude of fancy watches were stolen during F1.

Business owners near Lake Austin are pushing back against a proposal to draw down the lake next year.

And the Austin American-Statesman takes a minute to celebrate the Armadillo Man