Quality sites difficult to find

Quality sites difficult to find

Written by Tiffany Young Friday, 27 June 2008

Austin — About 1,975 acres remain for development in the 78759, 78750, 78727, 78729 and 78758 ZIP codes, according to most recent city data.

“Quality sites that don’t have an inordinate amount of development restrictions or other issues that go with them are becoming very difficult to find,” said Randy Ziehe, president of Spicewood Development, Inc.

Because sites are becoming harder to find, redevelopment can be more economically advantageous than building on undeveloped land.

“Particularly in the northwest part of Austin, there are a lot of commercial areas that have a higher and better economic use than what’s on them. I think there’s going to be a lot of pressure that the economic value of those properties exceeds the value of the improvement that’s on them.”

Condominiums

Northwest Austin has seen some redevelopment already with apartment complexes being turned into condominiums. Not only are new condominiums popping up all over, but older apartment complexes are being upgraded and sold as condos. With so many in the area already, it may be surprising that construction for this kind of residential development is still under way, even when there is a housing crisis. But Ziehe does not think this is a trend that will subside soon.

“We think the trend is actually more in the direction of more [condos], but in a mixed-use sort of environment where there’s critical mass around the project, where there’s walkability to entertainment, restaurants, shopping and parks,” Ziehe said. “And I think [a denser] kind of development is going to start pushing outward also.”

Ziehe’s been a developer in Austin since 1980 and said many of the changes in housing began in the ’90s.

“The market here has changed. It started changing pretty significantly in the ’90s with, I think, the influx and this growing community of young professionals in this city who have very active lifestyles and were opting for the kind of residences that provide them with much lower maintenance,” Ziehe said. “We brought in lots of people from other parts of the country who were not traditional in terms of the family makeup and a lot of singles and young professionals, so that was a very noticeable change. It’s continued and doesn’t seem to have slowed down.”

North Burnet/Gateway Neighborhood

Much like downtown Austin, Northwest Austin may start building up instead of out with taller buildings and redevelopment of older buildings. Molly Scarbrough, a senior planner for the North Burnet/Gateway Neighborhood Planning and Zoning Department, believes redevelopment is likely in the area if new zoning is passed by the city council this fall when the department gives recommendations for phase two zoning.

According to Scarbrough, the proposed zoning would turn much of the area into high density mixed-use, increasing development standards and allowing up to 15 stories for buildings within commercial mixed-use zones and up to 20 to 30 stories high near transit-oriented development. The TOD, which incorporates high-density development, is planned a quarter mile around the rail station, the location of which has not yet been determined.

Rezoning would also allow for greater flexibility in land use, and include density bonuses. Density bonuses provide greater height for a development when a project adds “public benefits,” such as affordable housing.

“There really aren’t a whole lot of vacant areas,” Scarbrough said. “Because of the commuter rail, access in the area and the good highways and arterials, mixed-use development is one of the ways we can expect to plan for population growth.”

The Domain paved the way for mixed-use development in Northwest Austin. The city passed zoning changes because the plans suited what was already being envisioned by the neighborhood and planning department in its future land use map, a map that shows how the city plans on developing a neighborhood in the future.

With a new rail station coming into the neighborhood, transit-oriented development will include mixed use, but does not necessarily mean much more retail.

“The Domain’s covered a lot of retail, so retail would be allowed, but probably not as much,” Scarbrough said. “We would be wanting more housing and employers now to fill it up, but we wouldn’t be regulating that.”

Vacant land

The biggest areas of undeveloped land in the North Burnet/Gateway neighborhood are owned by the University of Texas and IBM, neither of which have plans to develop right now.

About 24 acres of vacant land, bought by the Austin Water Utility about five years ago, was intended for a service center. However, plans are on hold for the site, because it does not fit well with the city’s neighborhood plan, according to Scarbrough. Once Capital Metro decides on an exact location of the future rail station that will pass alongside the land, Scarbrough believes Austin will decide on future development plans, preferring to develop land nearest the transit-oriented development first.

According to an addendum to the Draft 2035 NB/G Master Plan, the University of Texas’ Western Tract is identified as commercial mixed use, meaning it could be developed with greater height and the regulations of a commercial mixed-use subdistrict, but would not be allowed destination retail and commercial services. The tract is limited because there is already a large amount of destination retail including The Shops at the Arbor Walk, which UT is leasing to Simon Properties under a 52-year contract.

• Total area of ZIP codes: 34,122 acres

ZIP codes include: 78727, 78729, 78750, 78758, 78759

• Total area of undeveloped land: 7,050 acres

Environmental constraints include floodplains and steep slopes that are difficult to develop, but could be used for building in certain instances.

Anderson Mill - At year’s end, Austin will gain about 1,091 acres in Williamson and Travis counties when it annexes the Anderson Mill Municipal Utility District. However, much of Anderson Mill is already developed.

McNeil - About a half mile from US 183 and McNeil Drive, at the corner of San Felipe Boulevard and Pond Springs Road, is about 4.5 acres ready for general retail mixed-use development ideal for a bank, restaurant, retail or office space. For more information, call 261-4074.

Scofield Farms - In Scofield Farms, there are several plots of land for sale through Wiggins Company, including a small plot on Parmer Lane behind Brake Specialists and a large plot at the southwest corner of Metric Boulevard and Howard Lane, where construction from two lanes to four lanes has just been completed.

North Austin Civic Association - The North Austin Civic Association Neighborhood, bordered by US 183, Metric Boulevard, North Lamar Boulevard and Kramer Lane, is about 49 percent single-family residential and some multi-family residential with commercial development along US 183 and North Lamar and industry bordering Metric Boulevard.

According to NACA’s Neighborhood Plan, in 2000, only 7 percent of land was undeveloped and about 3 percent of land was open space, or parkland.

About six acres of vacant and undeveloped land will soon be filled with a recreation center across from Quail Creek Park, bound by Rutland Drive, Rundberg Lane and Mearns Meadow Boulevard. Last month, Austin’s city council contracted Austin-based Studio 8 Architects for the 18,000 sq. ft. project, estimated to cost about $5-6 million, funded by a 2006 bond election. The city met with nearby neighborhoods to find out what they would like the recreation center to include.

North Burnet/Gateway - The biggest areas of undeveloped land in the NB/G neighborhood are owned by the University of Texas and IBM, with neither having plans to develop just yet.

Austin Water utility - Austin bought two tracts of land about five years ago that total about 65 acres. The Austin Water Utility bought approximately 24 acres of vacant land for a service center. However, plans are on hold for the site because it does not fit well with the city's neighborhood plan. Once Capital Metro decides on an exact location of the future rail station that will pass along the city-owned land, Molly Scarbrough of the City of Austin's Planning and Zoning Department believes Austin will decide on future development plans.

Paseo Park -

Another project near the US 183 and Lamar Boulevard intersection, Paseo Park, broke ground last summer on 7,200 sq. ft. of live-work and neighborhood-oriented retail space on nearly 3 acres with two- and three-story condominiums at 8323 Jamestown Drive.

For further information on this subject, please see our earlier story "New zoning increases density."