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Aerial view of the Dog\u2019s Head tract near Austin-Bergstrom International Airport, where a proposed tax increment reinvestment zone would help fund roads, utilities and other infrastructure.<\/p>\n
Google Earth<\/p>\n
Citing multiple concerns and a desire to wait on a decision by city officials, Travis County delayed a decision on a financing agreement that would use future tax revenue to help pay for redevelopment of a\u00a0massive tract known as Dog\u2019s Head<\/a>.<\/p>\n Commissioners<\/a> raised concerns about transparency into the plan, potential environmental effects<\/a> and the development\u2019s impact on nearby residents.<\/p>\n Article continues below this ad<\/p>\n \u201cIt\u2019s a very exciting possibility and we\u2019d really like to support a project that reflects our values, something that has guarantees for affordability, community input and environmental protections, robust economic growth, great transportation access and more,\u201d Judge Andy Brown said. \u201cWe are not saying no today, but we would like some more time to think it through and come back with some ideas of our own.\u201d<\/p>\n Commissioners postponed a vote until after the Austin City Council considers its portion of the financing plan on July 23<\/a>.<\/p>\n \u201cWe kind of like to know what the city\u2019s going to do,\u201d Precinct 2 Commissioner Brigid Shea said shortly before commissioners met in a closed session.<\/p>\n Endeavor Real Estate Group, the developer behind The Domain and long-stalled plans for the former Austin American-Statesman property<\/a>, is seeking a tax increment reinvestment zone\u00a0to help finance roads, utilities and other infrastructure across the roughly 2,600-acre site near Austin-Bergstrom International Airport<\/a>.<\/p>\n Article continues below this ad<\/p>\n Austin officials estimate the infrastructure could cost $5.63 billion, with the proposed financing arrangement covering about one-fifth of that amount.<\/p>\n Under a tax increment reinvestment zone, or TIRZ, a portion of the additional tax revenue generated as property values rise with development is reinvested in public improvements within the zone.<\/p>\n Under the plan being considered, Austin would contribute 75% of new property and sales tax revenue for 20 years, then kick in 66% for 15 years. Travis County would contribute 50% of the growth in property tax revenue over the same period. The agreement would run through Dec. 31, 2061.<\/p>\n Kimberly Olivares, Austin\u2019s director of financial services and deputy chief financial officer, said the undeveloped site has virtually no infrastructure, limiting its current development potential.<\/p>\n Article continues below this ad<\/p>\n \u201cIf not done by a TIRZ, it will struggle to develop,\u201d Olivares said.<\/p>\n Austin City Council unanimously approved a 45-year annexation and development agreement for the area, named for a bend in the Colorado River resembling a dog\u2019s head, in May. If the city does not create the TIRZ, the owner could seek disannexation and release from Austin\u2019s extraterritorial jurisdiction.<\/p>\n Parcels in the Dog\u2019s Head area near Austin-Bergstrom International Airport.\u00a0<\/p>\n Travis Central Appraisal District<\/p>\n Development details<\/p>\n A preliminary plan<\/a> for the proposed development modeled 12,395 homes and more than 9 million square feet of commercial, industrial and hospitality space. Those figures were used to evaluate the project\u2019s financial viability and are not binding requirements, city officials said.\u00a0<\/p>\n Article continues below this ad<\/p>\n 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.<\/p>\n Plans call for the first portions to be delivered by 2030 and the overall development completed by 2057. Dog\u2019s Head could represent more than $26 billion in property value by the time the TIRZ expires, according to city documents.<\/p>\n About 20% of any housing built would be designated as affordable. Supporters said the project also could bring grocery stores, health care and other services to an area where residents have limited access to them.<\/p>\n The development agreement calls for open space and a public trail along the Colorado River. It also generally requires compliance with Austin\u2019s current land development code, with modifications.<\/p>\n Article continues below this ad<\/p>\n A map in the preliminary TIRZ plan shows a proposed bridge across the Colorado River carrying an extension of Tesla Road toward the Austin-based automaker\u2019s nearby Gigafactory site. Tesla\u2019s presence figures prominently in the draft, which cites the Gigafactory, Austin-Bergstrom International Airport and Texas 130 as sources of demand for industrial and office development.\u00a0<\/p>\n Richard Suttle, an attorney representing Endeavor, previously said an unidentified Fortune 100 company would become the site\u2019s first tenant and build an advanced manufacturing operation on about 300 acres.<\/p>\n Endeavor has said the tenant is not Tesla or SpaceX and that the operation is not a data center. The broader agreement, however, does not prohibit data centers elsewhere on the property.<\/p>\n A map in the preliminary TIRZ plan shows a proposed bridge across the Colorado River carrying an extension of Tesla Road.<\/p>\n City of Austin<\/p>\n County officials seek guarantees<\/p>\n Commissioners first received a detailed briefing in June, when Endeavor officials acknowledged that the housing and commercial figures were projections rather than binding construction commitments.<\/p>\n Article continues below this ad<\/p>\n The briefing also raised questions about the absence of a firm site plan, development in flood-prone areas, impervious cover and environmental protections.\u00a0Those concerns resurfaced Tuesday as commissioners questioned what the county would receive for its tax contribution.<\/p>\n \u201cThere\u2019s so much \u2018trust me,\u2019\u201d Shea said.<\/p>\n<\/p>\n
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