City outlines status of long‑term redevelopment projects including Mueller, Seaholm, Colony Park and Grove Riverside

Kim Olivares, Director of Financial Services, and Christy McGuire presented an update on City of Austin redevelopment projects on Sept. 17, describing project histories, community benefits and development timelines for long‑running and newly assembled sites.

Olivares and McGuire said the city focuses on repurposing decommissioned utility land and other city‑owned tracts to deliver mixed‑use development, affordable housing, parks and tax revenue. They highlighted several projects at various stages:

- Second Street District and Seaholm: Long‑running downtown redevelopment near City Hall and the converted Seaholm Power Plant, which now contains mixed‑use development and local retail. - Mueller (referred to in the presentation as "Miller"): A large former airport redevelopment that has taken two decades to reach its current buildout; staff said the project demonstrates the long timelines needed to deliver community benefits and catalytic investment. (Presentation corrected name in record: Mueller Redevelopment.) - Colony Park: A community planning process beginning after the 2008–2010 recession and supported by an early ARRA grant. Staff said the city has committed $12.5 million in Community Development Block Grant funds, federal earmarks and tax‑increment financing mechanisms to support infrastructure; a health and wellness center in partnership with Central Health is under construction for the community. - St. John’s: Site cleared and rezoned with project partners including Greystar; staff said market conditions have delayed vertical construction but expect potential dirt‑turn within 12–18 months if market conditions improve. - Grove Riverside (former Tokyo Electron site and adjacent parcels): The city has assembled more than 125 acres, including property owned by the Austin Housing Finance Corporation, and plans community visioning in coming months; light rail access from the Austin Transit Partnership is expected to be adjacent to the site.

Olivares said redeveloped properties contribute to the tax base — she cited roughly $31 million per year in tax revenue from redeveloped property and an aggregate assessed value on the order of $5 billion — and that projects have produced jobs and local business opportunities. Staff noted the city typically seeks private developer partners, uses ground leases and development agreements to transfer market risk, and deploys tax increment financing and other public resources to secure community benefits such as affordable housing and parks.

Council members asked about the HealthSouth site downtown (staff said redevelopment remains on hold pending market conditions), timing on property‑by‑property analyses, and whether the city maintains a comprehensive inventory of city‑owned parcels. Olivares said a new staff member will begin work to perform a real‑estate portfolio analysis and the city maintains GIS ownership maps; staff committed to provide council periodic updates as the analysis progresses.

Why it matters: Redevelopment of city‑owned land is a key tool for delivering affordable housing, parks and other community benefits while broadening the city’s tax base; these projects involve long timelines, multiple funding layers and market dependencies.

Next steps: Staff will continue community visioning for Grove Riverside, advance Colony Park infrastructure and health‑center construction, pursue contract and permitting steps for St. John’s pending market improvement, and provide regular portfolio analysis updates to Council.