East Austin's next 'economic anchor' From the cover
The big picture
Park/soccer elds
A hotel and convention center project at motorsports and entertainment venue Circuit of the Americas could pour hundreds of millions of dollars into the local economy, and won support from Austin o cials this spring. “It’s huge. This really, truly will mark a rst-of-its- kind city partnership in Del Valle. We haven’t seen this,” said council member Vanessa Fuentes, who represents the area. City Council advanced a 30-year incentive deal between Austin and RIDA Development that’d support an $985 million resort project at COTA. RIDA plans to build a 1,000-room hotel and 170,000-square-foot conference center with dining options, a golf course and Top Golf-style driving range, and a lazy river feature. Michael Whellan, a lobbyist for RIDA, said the project represents a “long-awaited economic anchor” for Austin’s east side, including the Del Valle area. Council’s advancement of the economic development agreement April 23 comes after o cials previously supported RIDA’s project with a land acquisition and tourism tax deal last summer. Civic development plans for the COTA property were also updated this spring as the resort, and other major projects, move ahead.
Potential future practice racetrack
COTA resort
COTALAND
T11 COTA Car Community
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Parkland
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SOURCE: GOOGLE EARTH™
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SOURCE: CITY OF AUSTIN COMMUNITY IMPACT
What they’re saying
Local impact
The approach
The plan’s local employment impacts also won early support from community groups like the Del Valle Community Coalition, a Southeast Austin neighborhood group and the hospitality union Unite Here Local 23— which reached a labor peace deal with RIDA. Fuentes said Del Valle residents at a recent town hall applauded the deal for its focus on east-side job creation.
RIDA’s incentive deal includes a commit- ment to add public open space, and COTA’s original city development plan included nearly 12 acres of parks. However, RIDA recently sought to allow either o -site land dedication or fee payments to the city instead. Residents criticized those plans during reviews earlier this spring, and the nal incentive outline now includes a pair of park spaces.
The performance-based incentive won’t a ect Austin’s general fund budget or require upfront public subsidies. Instead, the city will reimburse 8.25% of room night revenue generated by the hotel once it’s operating. That tax repayment structure represents a favor- able share of the deal compared to RIDA’s nearly $1 billion investment, Assistant City Manager Eric Johnson reported, with a roughly 89% private to 11% public value breakdown. “When you look at ratios in the world of economic development, that is a really good number,” he told council. “Anything 15% or below is considered a good use of public dollars.” RIDA’s conference center is 3.5 times smaller than the redeveloped Austin Convention Center that’s now under construction, and won’t compete with the city-owned facility. The COTA project’s target market of self-contained, campus-style events di ers from major exhibitions that can draw tens of thousands of people downtown, according to city sta .
“We are going to have an anchor economic hub that will have 900 year-round permanent jobs that are going to pay above the city’s
Original plan: 11.38-acre on-site parkland
Past proposed amendment: No on-site parkland; 14-acre o -site park or $2 million fee payment
living wage, that’ll come with health care and bene ts.” VANESSA FUENTES, DISTRICT 2 COUNCIL MEMBER
Current commitment 6.3-acre public park and potential future city recreation center site, 5.6-acre site for two public soccer elds
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