Austin Real Estate Scene

There was an article in the Austin Statesman today about downtown condo developers offering to contribute as much as $1 million for affordable housing in the Zilker park area in exchange for speedier reviews and waived fees for the development, BartonPlace Condos, which would replace a mobile home park on Barton Springs Road. The developers are planning to build 250 condominiums at 1600 Barton Springs Road, incorporating the Austin Java restaurant that fronts the 4.3 acre site. The project would have six stories of condos above two levels of parking, one above ground and one below.The project is due start early 2008. The Units are expected to be priced between $250,000 to $500,000.  This is about the norm for condo pricing in this area. It will be interesting to see what kind of affordable housing will be built in the Zilker area. The affordable housing is aimed at for families making 60 percent or less of the median family income in Central Texas, or $43,200 for a family of four. What kind of homes will be built for under $200,000 in this area? The location is certainly prime!

By Shonda Novak
AMERICAN-STATESMAN STAFF
Wednesday, April 11, 2007

Developers of a proposed $85 million luxury condominium project in the Zilker Park area are offering to contribute as much as $1 million for affordable housing in the area.

The contribution would be in exchange for speedier reviews and waived fees for the development, BartonPlace Condos, which would replace a mobile home park on Barton Springs Road.

Developers increasingly are negotiating contributions to affordable housing, or park land or improvements, as they seek neighborhood support for zoning changes and other city approvals for their projects. At $1 million, the contribution by Constructive Ventures Inc. would be the largest such donation.

The developers plan to build 250 condominiums at 1600 Barton Springs Road, incorporating the Austin Java restaurant that fronts the 4.3 acre site. Austin Java co-owner Rick Engel is partnering with developers Perry Lorenz and Larry Warshaw on the project.

After extensive negotiations with the developers, the Zilker Neighborhood Association agreed to support a zoning change for the project, based on certain conditions.

Those include a provision that, in exchange for certain waived fees and expedited city reviews, Constructive Ventures would contribute $500,000 to $1 million to the city’s Affordable Housing Trust Fund, overseen by the Neighborhood Housing and Development Department.

The money would be earmarked for Zilker-area housing for families making 60 percent or less of the median family income in Central Texas, or $43,200 for a family of four.

The developers and Jeff Jack, executive director of the Zilker Neighborhood Association, have submitted the proposal to the city for review.

The developers are seeking a zoning change to allow them to build as high as 75 feet on parts of the site, 15 feet higher than the rules allow. The Planning Commission recently voted 9-0 to recommended the change. The request goes to the City Council next.

Warshaw said the developers did not need to make the affordable-housing offer to win approval of what he called a minimal zoning change.

“Neither the private sector nor the public sector can tackle this issue alone,” Warshaw said. “Like the city, we care about the issue, and we hope this helps.”

Under state law, the city can’t make zoning changes contingent on donations to affordable housing. But developers can negotiate ad hoc deals with neighborhood groups on donations for affordable housing, park or public trail improvements, and other reasons. Constructive Ventures would make the contribution after 90 percent of the condos are sold.

As part of the deal with the neighborhood association, the developers also agreed:

•To save a dozen of the oldest trees, including a 300-year-old pecan tree in the middle of the site. Several other native trees would be moved to the park across Toomey Road at a cost of about $250,000.

•To make access to the site from Toomey Road, not Barton Springs Road, unless the city requires otherwise.

•To deed a trail easement through the property to the city to create a pedestrian and bike connection from the neighborhood to the ball fields and Town Lake.

•Permanently restrict development of the front part of the property to protect the restaurants along Barton Springs Road.

BartonPlace would replace the Shady Grove RV Park, now home to about three dozen people who pay $500 a month to live within walking distance of Town Lake, Barton Springs Pool and Zilker Park. Two adjacent RV parks on Barton Springs Road, Pecan Grove and Mobile Manor, are not part of the proposed project.

The soonest the work would start on the condos is early 2008. Units are expected to cost from about $250,000 to $500,000. The project would have six stories of condos above two levels of parking, one above ground and one below.