Austin Day 1

Fred Evins of the Economic Development Department in the Austin City Hall kicked us off by explaining several of the projects he had been involved in. His focus was a small section of downtown that was in the process of development. Their first step was to negotiate a master development - a tricky balance between appealing to investors' financial goals while maintaining important city features such as public parking. The city also entices investors with higher returns by offering a 99 yr. ground leases. One of their goals is "responsible development" including affordable housing, and "green" criteria. One of the ways they have keep values high is maintaining the same appraisal values since 2007. Evins described Austin's unique development position as conservative - only 8 developments in the last 10 yrs. - in comparison to 30-40 in other cities.
Next, Christopher Johnson, Assistant to the Head of Development, spoke about the permitting process and their "one stop shop" where developers could get all their questions answered, and file all applications at once.
Leon Barba, the Director of Inspections, explained that any new owner is responsible to perform due diligence on any property as he is responsible for whatever happened in the past concerning that building - a scary thought if a previous owner hasn't pulled correct permits!
Finally, Richard Morgan over the Green Building Program emphasized Austin's leading green position - due to a uniquely Austonian rating system they consider to be equal to LEED- and the cooperation between developers and the green goals of the city.

The "Austonian" - the tallest building in Austin at 56 stories - was developed by Terry Mitchell, an experienced country-wide developer whose success flows from identifying and catering to the market forces. The Austonian is a condo building focusing on four main elements: convenience, luxury, exclusivity, and privacy. His target market is "empty nesters" who want to downsize while enjoying great local amenities. The economic downturn tempted the developers to postpone the project, but in the end decided to continue - which proved to be a wise move. Spending $800,000 on Advertising, he has already sold 40% of the units. He will have paid back his investment after 100 units are sold. With a top notch wading pool, private movie theater, spa, dog grooming amenities, private guest suites for residents, and a fitness center on the top floor with fantastic views, this is a truly luxurious condo development.



Mitchell as also catered to workforce housing needs by developing cottage - style housing "Garden Court" just east of downtown Austin. Typical units are less than 1400 square feet, less than $200,000 and cater to a younger demographic. Each of the units are painted in a bright fun color, and gardens between units allow for community socialization.
Overall, the day proved insightful,informative, and inspiring!