Planning Commission approves 500 South Congress PUD with conditions after debate over fire station, utilities and right-of-way

The Planning Commission approved on July 8, 2025, a planned unit development rezoning for 500 South Congress (approximately 6.486 acres at the southwest corner of West Riverside Drive and South Congress Avenue) after lengthy debate over an on-site fire/EMS station, utility facilities and future right-of-way width.

The commission voted to approve staff’s overall recommendation for the PUD but adopted amendments during motions by Commissioner Anderson (mover) and Commissioner Haney (second): they removed the staff request that the developer provide a dedicated fire/EMS station on the site, made “major utility facilities” a conditional use rather than a permitted use, and set the South Congress centerline right-of-way at 60 feet as a condition of approval. The motion closed the public hearing and passed by recorded vote with Commissioner Lan opposed.

Why it matters: the proposal is a very large mixed-use redevelopment of a site currently developed with office, multifamily and retail. Staff described a development program that includes roughly 950 residential units, a 225-key hotel, about 600,000 square feet of office, roughly 90,000 square feet of retail, a 25,000-square-foot grocery/food sales use, and below-grade parking. Staff told commissioners the applicant requested maximum building heights up to 650 feet in one area and 500 feet in another, a maximum floor-area ratio of 24:1, and site impervious cover up to about 90 percent. Staff recommended approval subject to numerous conditions including environmental notes, transportation and park commitments, and housing-related payments tied to bonus area.

What staff said: Sherry Seruitas of the Planning Department summarized the application and the staff recommendation, including a housing condition requiring $9 per square foot of bonus area above a 2:1 baseline FAR, on-site affordable unit pricing guidance ($591 per square foot if the city elects to take on-site units in exchange for fee), and requirements that any on-site affordable units be restricted at 60 percent MFI for 40 years. Seruitas also reviewed the Fire Department and Austin Water requirements, the parks and trails notes, environmental conditions for Bolden Creek, and a long list of code modifications requested by the applicant.

What proponents and the applicant said: Michael Iannaconi (president of Related Texas) and David Rubin (Related, vice president of development) presented the developer vision stressing placemaking, pedestrian priority, creek restoration and mixed uses intended to enliven the South Central Waterfront. Iannaconi said the site is “kind of the heart of that South Central Waterfront” and framed the plan as a “high quality mixed use development” that would expand open space and connectivity. Applicant counsel Richard Settle noted three unresolved disagreements with staff: the applicant’s concern about placing a fire/EMS station on a site intended to host residential towers; right-of-way expectations; and Austin Energy’s request to add “major utility” as a permitted use.

What public safety and utility staff said: Fire marshal Stephen Truesdawson told commissioners the department’s response performance downtown has lagged for years and that the demand for coverage grows as development increases; the department requested a dedicated station footprint on the site with space for apparatus bays, an apron and stair access and asked that a lease or conveyed space be finalized before 55 percent of certificates of occupancy are issued. Austin Energy asked that major utility facilities be added as a permitted use so future substations could be accommodated for the area’s growing load; the applicant and commission negotiated making that use conditional rather than automatically permitted.

Transportation and right-of-way: Transportation staff and the applicant debated right-of-way needs for South Congress. Staff had asked for a 70-foot centerline dedication consistent with a long-range plan that anticipates large transit/vehicle cross-sections; the commission ultimately approved a 60-foot centerline condition as part of the amendment. Staff noted outstanding technical PUD comments to be addressed at site plan.

Housing and tenant protections: Housing staff explained the fee and in-lieu structure tied to density bonus areas and confirmed the $1,500 per-unit relocation fee for tenants on-site at the time of demolition. Robert Anderson of the Housing Department clarified Chapter 4-18 obligations are relevant where the code triggers those programs; some relocation and affordability details will be applied at the certificate-of-occupancy or site-plan stage.

Vote and next steps: The motion (approve staff recommendation with amendments) was moved by Commissioner Anderson and seconded by Commissioner Haney and passed with one recorded no vote (Commissioner Lan). The commission left the public hearing record open earlier in the discussion per procedural guidance from staff and closed it as part of the motion. The PUD ordinance will proceed to City Council for final action under the city’s normal rezoning/ordinance process.

Quotations from the record: “This tract is designated as mixed use in the FLUM for the Bolden Creek neighborhood plan, so a neighborhood plan amendment is not required,” said Sherry Seruitas, Planning Department staff, summarizing the staff report. Richard Settle, representing the applicant, said: “We don't take issue with the need [for added public safety facilities]…but we just don't think that it's a good idea to have [a fire station] on a site that's here.” Fire marshal Stephen Truesdawson said: “We have not met our downtown response time goals for several years, and, actually, our performance is getting worse every year.” Michael Iannaconi, representing the developer, said the project could be “one of the future best places, not just in Austin, not just in Texas, but, hopefully the country as well.”

Implementation notes and conditions captured on the record include the housing fee ($9/sq ft of bonus area), on-site affordability parameters (60% MFI for 40 years if on-site units are provided in exchange for fee), a $1,500 relocation fee per unit for existing tenants, environmental notes for Bolden Creek restoration, requirements for reclaimed-water infrastructure and parks/streetscape commitments. Staff and applicant will resolve outstanding TPW and other technical comments during site plan review.

Ending note: Commissioners split over infrastructure siting (fire station, substation and right-of-way breadth) but concluded the PUD can move forward with the staff-recommended package as amended by the commission.