City Council - 2026-03-12
Meeting Intelligence Preview
Meeting Summary
The Austin City Council denied zoning changes for two East Austin properties: items 35-36 at East 22nd Street in Blackland (failed 5-5-1) and items 40-41 at Caddy Street/Montopolis Drive/Fairway Street in Montopolis (denied 8-2-1 and 10-0-1). The council approved a $5.5M loan for Foundation Communities FC Bloom Housing through the AHFC, and passed consent items including funding increases for Meals on Wheels and a youth employment program review.
Key Decisions (9)
Rezoning at East 22nd Street (Blackland neighborhood)
Items 35-36 sought to amend the Upper Boggy Creek neighborhood plan and rezone 2108-2110 East 22nd Street from SF-3 to LR-MU for restaurant/office use by applicant Sam Hellman Moss. The Blackland Neighborhood Association opposed commercial encroachment into residential areas. Vote failed 5-5-1 on first reading.
Rezoning at Caddy Street/Montopolis Drive/Fairway Street (Montopolis)
Items 40-41 sought neighborhood plan amendment and rezoning from SF-3 to GR-V-MU-NP for approximately 5-story mixed-use development by applicant Joshua Brunsman. Montopolis Neighborhood Plan Contact Team and residents opposed, citing displacement concerns, lack of deeply affordable housing (80% MFI vs neighborhood's 40% MFI), and environmental impacts. Item 41 denied 10-0-1; Item 40 denied 8-2-1.
Foundation Communities FC Bloom Housing Loan
AHFC approved reauthorization of $5.5M ROTA loan for Foundation Communities FC Bloom Housing with 41-year affordability period. Changes included increased units and temporary MFI adjustments to accommodate relocation during redevelopment.
St. John Mixed-Use Development Term Sheet
Item 4 approved term sheet for St. John project with Greystar as private partner. Development includes approximately 526 units with 70% affordable (50-80% MFI) and expanded 3-acre park. Located at former Home Depot/trucks lot in District 4.
Meals on Wheels Funding Increase
Item 22 approved funding increase for Meals on Wheels program providing meals and safety checks to aging residents.
Summer Youth Employment Program Review Resolution
Item 28 directs city manager to review and improve city and county youth employment programs, increase employer participation, and bring in additional school districts. Cosponsored by Watson, Harper Madison, Velasquez, Duchin, Kadri, Lane, and Siegel.
South Town Square Rezoning (Oak Hill)
Items 37-38 approved rezoning at MoPac/290 intersection (Best Buy location) to VMU with 27 prohibited uses. Staff added adult oriented businesses to prohibited uses. Neighborhood requested additional environmental protections for Gaines Creek watershed.
Austin Water Treatment Plant Funding Increase
Item 16 approved 67% funding increase (to approximately $1.5B) for treatment plant construction. Council member Duchin noted concerns about cost estimation accuracy for major infrastructure projects.
Gibson Street Rezoning Postponement
Item 33 postponed to March 26 at neighborhood request to continue negotiations regarding traffic, parking, and commercial encroachment concerns on South Congress corridor.
Zoning Changes (3)
2108-2110 East 22nd Street, Blackland neighborhood
Sam Hellman Moss
Caddy Street, Montopolis Drive, and Fairway Street, Montopolis
Joshua Brunsman
MoPac and Highway 290 intersection (Best Buy location)
Not specified
Development Activity (5)
St. John Mixed-Use Development
Approximately 526 units, 70% affordable at 50-80% MFI, expanded 3-acre park
Foundation Communities FC Bloom Housing
$5.5M ROTA loan, 41-year affordability period, increased units with temporary MFI adjustments for relocation
East 22nd Street Restaurant/Office
Proposed 3,000-4,000 sq ft restaurant space for breakfast/lunch/private events, office space, retail
Montopolis Fairway Mixed Use
Proposed 5-story (60 ft) GR-V-MU development, 80% MFI affordability, approximately 1,337 daily trips projected
South Town Square
VMU zoning with 1,000 units proposed, 95% impervious cover, adjacent to Gaines Creek watershed
Market Signals (5)
Housing Demand
Rents have continued to decline citywide according to developer testimony, though market conditions are expected to improve in 2026.
Sentiment
Council member Duchin expressed concern about 67% cost increases on major infrastructure projects and called for improved cost estimation processes for large capital projects.
Housing Demand
Montopolis has the highest concentration of multifamily, commercial, and industrial zoning of any planning area in Austin, with approximately 4,000 existing apartments in and near the neighborhood.
Sentiment
Council members expressed interest in creating more transparent processes for community benefit negotiations between developers and neighborhoods.
Infrastructure
Project Connect Yellow Line along Riverside corridor is driving transit-oriented development discussions, with city policy supporting density within half-mile of rail stations.