1. DOWNTOWN INCENTIVE ZONING Julie Fitch – Downtown Austin Alliance – 09/26/2012

2. WHO WE ARE  Public Improvement District Formed in 1993  Mission – To preserve and enhance the value and vitality of downtown Austin  Philosophical Approach – We represent the property owners

3. Many of these buildings were constructed after 2000 and used City of Austin programs created to encourage development in the urban core. Downtown Austin 2012 Photo Credit: Michael Knox

4. PREVIOUS PROGRAM  Smart Growth Program (1999 – 2003)  Downtown Projects given points for locating along transit corridors, complying with design guidelines, etc., and qualified for fee waivers/reimbursements  Approximately 15 projects  Approximately $6 million in fee waivers and infrastructure reimbursements  Died due to negative public perception and because it was erroneously linked with a huge public failure:

5. THE INTEL SHELL 2001 Dotcom Bust2007 Implosion

6. WHICH BECOMES Photo Credit: Michael Knox

7. CURE ZONING  CURE - Central Urban Redevelopment Combining District (1999 – 2013 ? )  Allows cases within a geographic boundary, including all of downtown, to seek additional FAR through zoning change  Subject to Planning Commission and City Council approval  Can take months and payment of significant consultant fees to navigate the public process  Theoretically unpredictable, but historical support

8. CURE CRITICISMS  Unpredictable  Developers get to build more square footage “for free”  Downtown residential not affordable

9. Downtown Austin Development 2000- 2010 10+ Projects used CURE to attain additional height or density  A Decade of Downtown Development A Decade of Downtown Development

10. Downtown Austin Development 2000- 2010 10+ Projects used CURE to attain additional height or density

11. System in which development projects can earn density above base entitlements by providing designated community benefits DENSITY BONUS

12. DENSITY BONUS – HOW IT WORKS Theory  Base FAR Entitlements  Sale Price of Land  Incremental SF profit shared by developer and community Austin  CBD = 8:1 FAR  ~$30/developable SF  DAA Position: Increased tax base IS the community benefit

13. 2008 INTERIM DENSITY BONUS  Result of CoA Affordable Housing Incentives Task Force  Downtown Projects can choose to achieve additional density by seeking CURE, or may go through interim density bonus program  10% of the incremental square footage above base entitlements must be dedicated to affordable housing, OR  May pay a fee in lieu of $10/Bonus SF  All development fees except parkland dedication waived  Out of approximately 10 higher density projects proposed since this interim ordinance passed, all chose to seek CURE

14. CONCLUSIONS CURE is a loophole CURE works Housing AdvocatesDowntown Austin Alliance

15. DOWNTOWN AUSTIN PLAN  Density Bonus Program created by HR&A  Few options to concentrate benefits  Intent = Incentivize Density  Results = ?  City Council Adopted DAP policy document December 2011 Final Version to Change

16. POTENTIAL DOWNTOWN BUILD-OUT

17. AREAS FOR DENSITY

18. NEXT STEPS  City of Austin recalibration and codification process  Land Development Code Amendments  Test the Theory

19. Downtown Austin Alliance julief@downtownaustin.com 512-381-6268 JULIE FITCH