I-35 Cap & Stitch

[Ryan Alter]

Colleagues,

On May 22, we’ll decide the future of the spine of downtown for the next 60+ years. Our neighbors, children, and grandchildren can either have a superhighway running through the heart of our city or a series of green public spaces where communities can come together instead of letting a concrete barrier keep them apart.

This multi-generational opportunity is why we fully support funding the roadway elements for all potential caps between Cesar Chavez and the Red Line and investing now in the caps between Cesar Chavez and 7th Street. When combined with the caps at the University of Texas, this would result in 24 out of the 43 blocks along this stretch of I-35 to be public green and civic space – an addition of almost 40 acres of real estate in the most expensive part of our city for the public.

But we also recognize the significance of the investment required to realize the potential of this project and the impacts it could have on other needs of the city if fully financed with general obligation debt. We've looked into a range of funds that might be worth prioritizing for this investment. This approach could help avoid any negative effects on our ability to pursue other key investments in the 2026 bond.

All told, these funds total $453.5 million, which is $23.5 million more than is needed to cap Cesar Chavez to 7th Street ($191 million) and build all the roadway elements ($219 million):
• $10M in Street Impact Fees for zones DT, I, and J (approximately 2-3 years’ worth of fees)
• $24.5M in Temporary Right-of-Way fees (TURP) resulting from increasing the TURP fees by 25% and using 7 years’ worth that additional increment on this project
• $100M in dedicating the Car Rental Tax Bonds available from car rental taxes once the remaining debt is retired
• $37M from redirecting bond funds for the Redbud Trail Bridge, which is currently infeasible because it is far over budget, thereby requiring additional funding from the 2026 bond package or a future USDOT bridge grant.
• $171M from including the CC-4th St. cap in the Convention Center expansion project as permissible related infrastructure
• $50M in revenue bonds backed by a portion of the revenues from the Austin Convention Enterprise once its bonds are retired
• $41M State Infrastructure Loan funds already secured

Of important note, these sources of funds do not include the additional tax values that other cities have demonstrated result from making these types of investments in public spaces. This value increase could be captured using a TIRZ and/or dedicated to building additional caps and maintaining the already existing caps. It also does not include the $105M federal Neighborhood Access & Equity Grant, which would supplant some of the funds above, should it ultimately be secured.

We are still working out the details and feasibility of these options but wanted to highlight a framework for realizing this important vision for Austin. We look forward to discussing this further and welcome any thoughts or additional ideas.

CM Jose Velasquez
CM Chito Vela
CM Ryan Alter
CM Zo Qadri