Amazon’s robotics division has been revealed as the prospective first major tenant for the nearly 2,600-acre redevelopment project in the Southeast Austin area known as Dog’s Head.
Ken Ellis/Houston Chronicle
Amazon.com, Inc. has been revealed as the Fortune 100 company that wants to build an advanced manufacturing facility in Dog’s Head, a nearly four-square-mile development planned in Southeast Austin.
During am at-times emotional City Council work session, Assistant City Manager Eric Johnson identified Amazon’s robotics division as the prospective first major tenant.
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Amazon confirmed it is considering the site for a manufacturing facility that could create 300 to 500 jobs.
“We’re considering the Dog’s Head site for a proposed Amazon manufacturing facility,” Holly Sullivan, Amazon’s vice president of worldwide economic development, said in a statement. “Austin and Texas are great locations to do business, which is evidenced by the over 86,000 jobs and $100 billion in investments we’ve made across the Lone Star State. If we move forward with the project, we look forward to working with the community, the county and council on this innovative project.”
The company declined to answer additional questions about the development.
Tuesday’s meeting also saw residents raise concerns about displacement, environmental effects including flooding and a lack of transparency surrounding the proposed public financing plan.
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“This whole area is exploding development wise,” said Bill Bunch, executive director of Save Our Springs, a nonprofit environmental organization. “They don’t need a penny of our money.”
Other speakers also questioned the necessity of using tax dollars for the redevelopment.
“The development has, and will, come without taxpayer dollars,” declared Garrett Tung, a Dog’s Head resident.
In May, the council unanimously approved a 45-year annexation and development agreement for the area, named for a bend in the Colorado River that, on a map, resembles the shape of a dog’s head. Under the agreement, the property owner could seek disannexation and release from Austin’s extraterritorial jurisdiction if the city declines to create a proposed tax increment reinvestment zone.
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Under such a zone, a portion of any additional tax revenue generated as the area’s property values rise in is reinvested in public improvements within the zone.
The agreement is with Dog’s Head Land JV Ltd., an entity tied to Endeavor Real Estate Group, one of the developers behind The Domain and long-stalled plans for the former Austin American-Statesman site on Congress Avenue.
Richard Suttle, an attorney representing Endeavor, previously told the council that an unidentified Fortune 100 company planned to become the site’s first tenant and build an advanced manufacturing operation on about 300 acres. At the time, he said a nondisclosure agreement limited what he could say.
Dog’s Head Land JV purchased more than 1,700 acres in the area last year. Travis Central Appraisal District records show Endeavor has acquired parcels through entities tied to its office at 500 W. Fifth St.
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Endeavor is pursuing the tax increment reinvestment zone to help finance roads, utilities and other infrastructure across the roughly 2,600-acre site near Austin-Bergstrom International Airport.
Austin officials estimate the infrastructure could cost $5.63 billion. The proposed financing arrangement would cover about one-fifth of that amount.
City staff compared the proposal Tuesday with Austin’s other active tax increment reinvestment zones at Mueller, Waller Creek and Colony Park. Staff members acknowledged, however, that those developments largely involved city-owned property, unlike Dog’s Head.
Staff members said the land is currently valued at approximately $17 million but estimated the development could be worth more than $26 billion by 2061, when the reinvestment zone would expire.
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A preliminary development plan modeled 12,395 homes and more than 9 million square feet of commercial, industrial and hospitality space. City officials said the figures were used to evaluate the project’s financial viability and are not binding requirements.
The projections include 4 million square feet of industrial space, 2.5 million square feet of retail, 1.5 million square feet of office space, 1 million square feet of hospitality space, 6,195 single-family homes and 6,200 apartments or condominiums.
Plans call for the first portions of the development to be completed by 2030 and the overall project by 2057. Dog’s Head could represent more than $26 billion in property value by the time the reinvestment zone expires, according to city documents.
About 20% of the housing built would be designated as affordable.
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Under the plan, Austin would contribute 75% of new property and sales tax revenue generated within the zone for 20 years, followed by 66% for 15 years. Travis County would contribute 50% of the growth in property tax revenue over the same period. The agreement runs through 2061.
The Austin City Council is scheduled to negotiate and vote Thursday on the proposed zone and related roadway annexations.
Last week, Travis County Commissioners postponed a vote until after the Austin City Council considers its portion of the financing plan.
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“We kind of like to know what the city’s going to do,” Precinct 2 Commissioner Brigid Shea said shortly before commissioners met in a closed session.
Karoline Leonard contributed to this report.