Requesting an executive session discussion of the HealthSouth ENA

[Natalie Deller]

On behalf of Council Members Qadri and Harper-Madison:

Colleagues,

Today, we received a memo from city staff informing us that the Economic Development Department is terminating the Exclusive Negotiating Agreement with Aspen Heights on the HealthSouth project. According to the memo, the developer “indicated that the Council approved term sheet is no longer financially feasible due to market conditions.”

Given the stakes of Aspen Heights’ proposal, which originally envisioned more than 900 new housing units – 25 percent of them at or below 60-percent MFI – situated in the heart of our Innovation District and next to Waterloo Park and the Dell Medical School, we believe this sudden decision is premature. In a vote on Sept. 29 of last year [1], Council directed staff to “update the City Council on a monthly basis until the City Council has approved the Master Development Agreement.” To our knowledge, this direction has not been fulfilled.

Furthermore, Council also directed staff [2] “to explore all available financial tools, including, but not limited to, negotiation of City fees, EB-5 financing, 9% Low-Income Housing Tax Credits through either the Austin Housing Finance Corporation (AHFC) or Austin Housing Public Facility Corporation (AHPFC), and partnership agreements that may offer ad valorem tax relief in exchange for community benefits.” Due to the lack of communication with Council, it is unclear what steps have been taken to ensure that the maximum amount of community benefits have been secured while ensuring the project remains financially viable given current market conditions.

To address this critical concern and ensure transparency in the decision-making process, we ask the City Manager and EDD to halt the termination of the ENA and to bring this issue forward as an executive session briefing item during our July 18 work session. This will allow staff to provide a comprehensive briefing to Council, shedding light on the situation and enabling Council, including the four new members who weren’t on the dais during last year’s deliberations, to provide valuable input on how to move forward. We believe this is a reasonable step to uphold the principles of openness, accountability, and collaboration that are essential to serving the best interests of our constituents and the Austin community as a whole.

We wholeheartedly believe that by allowing Council the chance to weigh in on the matter and be adequately briefed, we as a body can ensure that the redevelopment of the HealthSouth site aligns with our collective vision for a prosperous, inclusive, and vibrant city. Let us seize this opportunity to engage in constructive dialogue and make informed decisions that positively impact our community for years to come.


Sincerely,

Zo Qadri and Natasha Harper-Madison

[1] https://services.austintexas.gov/edims/ ... ?id=393182
[2] https://services.austintexas.gov/edims/ ... ?id=393144