Austin Transit Partnership leaders on Monday delayed a multimillion-dollar plan to relocate to a larger downtown office after Mayor Kirk Watson criticized the move as “inappropriate” amid broader budget pressures.
“This proposed action comes even as the City of Austin faces serious budget challenges and is cutting important, critical programs,” Watson wrote.
He also pointed to Austin ISD school closures and a contested Travis County tax increase following a flooding disaster.
“In this context of restraint by taxing entities, the proposed action … would be inappropriate.”
The proposal had been scheduled for a board vote Wednesday. In a statement Monday, the agency said board Chair Veronica Castro de Barrera would postpone related agenda items “to allow for additional information and a better understanding of the proposal.”
ATP said it needs more space as staffing grows. The agency has occupied offices at 203 Colorado St. since “day one” and has about 200 employees, a number expected to reach 300 by year’s end, the agency wrote in a statement.
ATP “has outgrown its current space,” the statement said. “ATP requires an additional 15,000 square feet of office space.”
The proposed relocation also follows a major milestone for the $7.1 billion light rail project: ATP selected a primary contractor as it prepares for construction to begin in 2027. The system will include 9.8 miles of track through North, Central and East Austin.
Watson said the agency did not sufficiently consider alternatives, suggesting it could instead share space with Capital Metro in East Austin.
“Co-locating two public entity partners,” he said, “should be more cost-effective than leasing 2.5 floors in the downtown area for 10 years.”
Council Member Chito Vela, who serves on the CapMetro board, supported that approach.
“Co-locating ATP and CapMetro staff allows them to more seamlessly work together in delivering the light rail project,” Vela said. “It will likely save ATP some money on an office lease. And the office rents ATP does pay will now go to CapMetro, helping the agency provide quality transit service.”
CapMetro spokesperson Tawaun Cole said the transit agency would “stand ready to support” ATP and the city as the light rail project moves forward.