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Development Issues
Gentrification
The phenomenon of gentrification is seen in a neighborhood- or community-level transformation of land use from residential and commercial uses that serve low to moderate economic levels to those that serve middle and/or upper economic levels. Factors affecting the degree to which inner-city communities are gentrified include: increased burdens of transportation and commuting; development of adjacent office, retail, and entertainment centers; the removal of barriers to development; and the demand for middle and upper income housing.
With the shortage of housing in Austin, increasing traffic congestion, Central East Austin’s proximity to downtown, the State complex, and the University of Texas, and development planned in the ARA redevelopment area, the potential for gentrification is clearly present.
There are both positive and negative effects of gentrification. Included among the positive are increases in residential density and population; increases in demand for retail facilities; and increases in median family income, disposable income, and property values. Among the negative impacts are a shift in the locus of political power; and the dislocation of low- to moderate-income residents and small business operators. But beyond these obvious effects are impacts that can have either positive or negative consequences depending on their scale and the extent to which they cause displacement. Falling in this category are impacts such as increased demand for schools and recreational facilities and increased property taxes due to improved property values.
The fact is the ARA’s mission of revitalizing Central East Austin promotes aspects of gentrification by encouraging investments in Central East Austin that will improve property values, create jobs and wealth, and bring in new residents; thus risking the dislocation of current residents and business owners. However we hope to mitigate the negative affects of gentrification by:
- actively seeking small and minority businesses that have a special connection or commitment to Central East Austin to occupy space in our commercial developments at a price that they can afford
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- helping small businesses get the funding they need through the HUD Section 108 Loan Guarantee program and other programs sponsored by the government
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- seeking the help of philanthropic organizations to fund programs that allow us to assist small businesses
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- setting aside a portion of our residential developments for low to moderate income families
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- supporting the City’s affordable housing program in our area, and
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- working with the City to institute tax incentives and tax breaks targeted to protect and strengthen those most likely to be displaced.
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It is our hope that with these strategies and others like them we will maintain the diversity that has been and is characteristic of Central East Austin thus ensuring that gentrification serves the entire community.
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Historic Preservation Policy Statement
1. Compliance with Historic Preservation Values and Standards
The ARA is committed to preserving the integrity and revitalizing the livability of the Central East Austin Community through assisting in the long-term protection, preservation and rehabilitation of historically and culturally valued properties within the E. 11th and 12th Street Corridor corridors and encouraging the same throughout the Master Plan Area. This commitment includes the protection, preservation and rehabilitation of buildings, materials, landscape features and sites. It further includes integrating historic preservation planning within the overall master plan for contextual compatibility.
The ARA’s intent is to ensure proper acquisition, protection, stabilization, rehabilitation and restoration of properties designated as historically, architecturally and culturally significant. The term “proper” refers to the responsibility of ARA to comply with standards as promulgated by the U.S. Department of the Interior, State of Texas, and City of Austin to guide work on all properties of historic, architectural and cultural significance.
2. Creating Economic Impact
The ARA is committed to seeking, facilitating and enhancing the economic impact of historic preservation through heritage tourism; financial incentives for investments and job creation; and the development of a focus on revitalization with historic preservation as a highlight. This commitment is demonstrated in ARA’s choice and execution of projects. The ARA is rehabilitating the Haehnel Grocery and the East Room two of the area’s historic assets that have deteriorated over the years. The buildings will used as office space (the ARA is moving its own administrative offices to the East Room); standing as reminders of the area’s heritage while bringing/retaining jobs in the area.
ARA also played an active role in ensuring that Arnold’s Bakery and the Victory Grill will be preserved. Although these buildings are in the middle of Eleven East, the ARA’s flagship mixed-use development, rather than demolish them to make way for new construction, which would have been more cost effective, the ARA designed its development to incorporate the existing historic structures. The ARA also plans to restore eight to ten 700-900 square foot historic homes along the north side of Juniper Street as affordable, homeownership units. In turning historic but dilapidated structures into spaces that serve the Central East Austin economy, the ARA contributes to its revitalization effort in a manner that honors the community’s history.
3. Public Participation
The ARA is committed to strengthening the political understanding of, and support for, historic preservation policies through inclusion of neighborhoods and local preservation organizations and supporters. The ARA is further committed to historic planning that is prepared in the context of the historical character of the community as determined by advisors who are representatives of the community.
The ARA is fully aware of the importance of its responsibility for encouraging public participation in planning and review activities. To that end, its Board of Directors reserves a seat for a historical preservation representative and has empanelled a committee of volunteers with expertise in historic preservation to advise the staff and educate the community.
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Land Acquisition and Condemnation
It is the ARA’s responsibility to develop commercial and residential projects and to help others execute their development plans in order to accomplish the objectives of the CEAMP and CRP. In doing so, it has been and will be, at times, necessary to acquire one or more parcels of land from private entities. It is the policy of the ARA’s Board of Directors to always structure its development projects and resultant land acquisition such that the community, the spirit of the CEAMP, and the individual property owner are all best served.
For example, in creating its Mixed-Use Development on East 11th Street and Residential Developments along Juniper Street, the ARA had to purchase several vacant lots owned by private individuals without which these projects would not have been possible. The ARA offers four possibilities to an owner when purchasing property:
- The ARA can purchase the property at fair market value.
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- Where possible the property owner may “exchange” his property for a portion of the planned development equal to the value of his property.
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- If the property owner already has plans for the property, ARA can work with the owner to see how both projects may be developed at the same time.
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It is only in cases in which a parcel is crucial to redevelopment and a property owner wishes to receive more than fair market value for a property, does not wish to be included in a development project, does not have clear title, and/or does not have plans of his own that the ARA begins to consider condemnation as an option.
Because of its Development Agreement with the City of Austin and the Urban Renewal Agency (put in place to aid development in the master plan area), the ARA is able to request that properties needed for specific development projects be acquired by the City, which has the power of eminent domain, through the process of condemnation. Such properties are later conveyed to the ARA. This is a lengthy and costly process and thus, only resorted to after all other avenues of land acquisition have been explored and exhausted. However, once started, condemnation is a process that inevitably results in the ARA acquiring the property in question.
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Creating a Sustainable Neighborhood
The ARA exists to implement the Central East Austin Master Plan (CEAMP) and the East 11th and 12th Street Community Redevelopment Plan (CRP.). The CEAMP is based on the revitalization priorities voiced by the Central East Austin community, which above all, envision a diverse mix of housing, business, and social opportunities in the master plan area. These goals, which describe how to achieve the desired sustainability, are as follows:
- Housing- Improve the physical condition and availability of housing by increasing the supply of decent, safe, and affordable housing options through rehabilitation, new construction, and expanded opportunities for home ownership.
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- Land Use, Development, and Design- Incorporate design and land use features that optimize a sense of security and well-being, and improve the physical condition of the community though a pattern of land uses that are compatible in nature and through regulatory controls that emphasize preservation and rehabilitation while respecting the rights of property owners.
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- Economic Development- Increase community-based economic activity and acceptable outside investment activity that will: a) support and sustain the economic empowerment of Central East Austin; b) reconnect economic activity in the neighborhood to the surrounding communities, the City of Austin, and other areas; c) sustain a healthy, long-term employment base for Central East Austin; and d) serve Central East Austin residents, property owners, and those with historical roots in the community.
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- Public Improvements, Crime Reduction/Safety and Transportation- Improve the quality of the public environment by increasing the amount and design character of public space, better utilizing existing public facilities, increasing the level and perception of public safety, and improving traffic flow and safety on neighborhood streets.
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- Neighborhood Diversity and Preservation- Create a culturally diverse neighborhood by preserving the history of the area, protecting existing residents, and attracting diverse new residents of different ages, backgrounds, households, and incomes.
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- Neighborhood Organization- Establish mechanisms for successful implementation.
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- Plan Implementation Mechanisms- Generate cooperation, commitment, and leadership among all segments of the community, thus leading to more effective organization and partnership relationships in which residents are empowered to carry out many revitalization initiatives independently.
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The ARA has used the community’s goals as a road map in selecting and implementing its Redevelopment Projects. This is why the ARA is choosing to rehabilitate buildings rather than taking the more profitable route of tearing them down and building new structures. This is also why the ARA seeks out businesses that have a connection or commitment to this community in finding tenants for its developments. And finally, this is why the ARA is building housing that will be available to people of all incomes.
Utilizing these methods, the ARA plans to help create a sustainable neighborhood that conforms to the aspirations of the community.
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