Crews will remove the traffic light from Loop 360 — also known as Capital of Texas Highway — at Courtyard Drive and replace it with an underpass. They will also convert the Loop 360-RM 2222 intersection into a diverging diamond interchange. This type of interchange shifts vehicles to the left side of the road and is often used at intersections with a high volume of left-turning traffic.
As part of the project, TxDOT will expand bicycle and pedestrian infrastructure in the area. No changes are planned for the Pennybacker Bridge.
Crews have already started work to relocate utilities and stabilize limestone cliffs on the west side of the highway that were damaged in a 2024 rockslide. As more disruptive work begins, commuters can expect lane and ramp closures. Construction is projected to wrap up in 2029.
The $68.4 million project is funded in part by the city of Austin’s 2016 mobility bond, with the remainder coming from TxDOT. Austin is contributing $14 million for the Courtyard Drive/RM 2222 project and similar work at Lakewood Drive and Spicewood Springs Road, which could kick off in 2029. Elsewhere along the Loop 360 corridor, TxDOT is expected to wrap up an underpass project at Westlake Drive and Cedar Street this year.
The agency will hold a groundbreaking ceremony for the Courtyard Drive/RM 2222 project Wednesday at 2:30 p.m. in the parking lot of Independence Title on Shepard Mountain Cove.