Parks over I-35: In final push, some Austin city council members pitch new $143M plan

Yahoo

22-05-2025

AUSTIN (KXAN) — The day before Austin City Council is set to vote on how much money it will commit to the Texas Department of Transportation (TxDOT) for the roadway elements of future covers over TxDOT's I-35 expansion project, some council members are putting forward a new plan.
As of Wednesday, there are two sub quorums of five city council members — each with different ideas on how to proceed. The council is made up of 10 members, meaning the vote is split right down the middle. That leaves the tiebreaker to Austin Mayor Kirk Watson.
One group — Council Members Ryan Alter, Chito Vela, Jose Velasquez, Zo Qadri and Natasha Harper-Madison — want the city to invest in roadway elements for as many highway covers, known as caps and stitches, as possible.
The other group — Mayor Pro Tem Vanessa Fuentes, Council Members Krista Laine, Marc Duchen, Mike Siegel and Paige Ellis — are willing to go only as far as city staff's latest proposal, a paired down plan that commits funding to the early construction elements of two downtown caps. The mayor announced Tuesday he will vote with this group.
Parks over I-35: Mayor to vote for more conservative plan amid council split
That latter sub quorum posted on the message board earlier this week and said in-part:
'We understand that the staff recommendation for Thursday's decision will require a $49M commitment. Given our overall debt capacity of $750M, Council can commit this sum towards building the support structures for two important caps and still have $701M remaining for the 2026 Comprehensive Bond package to address our community's wide range of needs – from parks to housing to mobility to libraries to climate resilience – or caps. This is a balance we can support.'
You can read more about each stance in my coverage from Tuesday.
Wednesday afternoon, that first group put forward a new proposal they hope will sway council members from that second more conservative group.
'And that compromise is to do the roadway elements for the downtown caps — that's Cesar Chavez to 4th, 4th-7th and 11th-12th as well as one northern cap,' Alter said.
The divide between these sub quorums isn't necessarily the desire to have caps — but concern about the city being on the hook for paying for them and what spending money on this venture might take away from other city services.
'Yes, and approach': Council members combing through alternate funding options for I-35 covers
'My sub quorum said let's be realistic about our limited dollars and create a plan that we know we can fund that when we promise to build something we can deliver it,' Austin City Council Member Paige Ellis said Tuesday (before the new proposal came out).
The new proposal includes new funding methods that don't take away from the city's borrowing capacity, Alter said. The funding proposal boils down to this:
Pay for the roadway elements for the Cesar Chavez to 4th Street cap ($40M) by asking Austin voters to approve a car rental tax for this purpose
Fund the roadway elements for the 4th-7th Street cap ($29M) and the 11th-12th Street cap ($9M) using a state loan the city has already been awarded for this project
And finally, the sub quorum proposed the city pays for a northern cap ($65M) using right-of-way fees and through a Tax Increment Reinvestment Zone (TIRZ)
Altogether, that proposal shakes out to $143 million.
The new proposal also 'directs staff to generate a funding plan for the roadway elements and future caps that can incorporate the sources we have offered here or come up with additional ideas, but which does not rely on any additional debt that limits the City's ability to issue GO debt, beyond the $49 million amount we all seem to agree on,' the sub quorum wrote.
'I would just highlight that what we're trying to do here is preserve future options and do it with the least amount of debt possible,' Alter said.
KXAN has reached out to the members of the other sub quorum as they look through those new details. We will update this story when they issue a response.
A spokesperson for the city of Austin said staff couldn't immediately comment but would be at the city council meeting Thursday to answer council questions on any of the proposals put forward.
You can read the latest full proposal here.
Sen. Sarah Eckhardt, D-Austin, and Representatives John Bucy, Sheryl Cole, Lulu Flores, Vikki Goodwin, Gina Hinojosa, Donna Howard and James Talarico sent a letter to Austin leaders making this decision Thursday.
Austin staff recommend reduced number of 'caps' over I-35 expansion project
'We urge you to prioritize this project and to secure the necessary funding and support from local, state, and federal stakeholders. By pushing for State financial support and exploring additional funding streams in place of the General Fund, we can ensure adequate financial backing without a significant impact to Austin's other priorities. As a result of this investment, the I-35 Cap and Stitch will create lasting positive change for generations to come. We are eager to see it move forward and assist in whatever ways we can,' the letter said in-part.
'We all care about these values. What the city is working through right now is how much money we can spend on a State project and what we should use on city projects. I appreciate any assistance from our local delegation to help secure funding to mitigate adverse impacts for I-35 when we have little control over the schematics. I know they are working hard for our constituents right now at the Capitol,' Ellis responded.
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