This year has proven to be a critical one for transit investment in Austin. Despite the pandemic, the metro welcomed its latest corporate resident, Tesla; received billions of dollars in state funding to expand I-35; and watched as city voters overwhelmingly approved Project Connect, which will transform the local transit system.
The Austin Chamber hosted a virtual regional mobility program on Monday to discuss the impact of these projects, with a special focus on job creation. Here are five big takeaways from the event:
1. Austin's workforce lured the Tesla Gigafactory.
When Tesla CEO Elon Musk announced in July that his electric car company would build its next Gigafactory in Austin, local taxing districts had already promised significant tax breaks to sweeten the deal.
But Rohan Patel, senior global director for public policy and business development, said Austin's most alluring asset was its people.
"One of the major reasons we chose this site is because of the availability of talent among all levels," Patel said during the Chamber event.
Since July, Tesla has begun construction on the Southeast Travis County site of its forthcoming factory, set to open this spring, and posted more than 100 local jobs.
"We're just raring to go," Patel said.
Aside from construction work, Tesla promises to create 5,000 new jobs by the time its factory is fully built. To support those positions, the company is working closely with Del Valle ISD and Austin Community College to build workforce pipelines.
"Even during this really difficult time for the country and the globe, the welcome and the, overwhelming really, reception that we've gotten in Central Texas and Travis County is just fantastic," Patel said.
2. Signs point to the federal government investing in Project Connect.
With decisive victory, next steps are to appoint Project Connect oversight board and secure federal funding.(Capital Metro/Twitter)
Project Connect, a $7.1 billion transit system overhaul, will be paid for primarily by 1) a property tax rate hike for city of Austin residents and 2) as-yet-unsecured federal grants.
In the run-up to the Nov. 3 election, opponents of Project Connect worried that banking on federal funding in the midst of a pandemic and economic downturn was akin to building a house on a sand foundation.
U.S. Rep. Lloyd Doggett, D-Austin, acknowledged that federal funding largely hinged on the results of the presidential election.
Now, with President-elect Joe Biden poised to take office next month, transit supporters are optimistic that Capital Metro will be able to secure the federal funding its needs to bring light rail to Austin.
"We know public transportation will have a friend in the White House come January," American Public Transportation Association Chairperson Nuria Fernandez said.
Austin Mayor Steve Adler feels similarly, adding that he has spent time with members of Biden's transition team.
"I know it's a priority," he said.
3. Mass transit is a top consideration for companies considering a move to Austin.(Capital Metro)
Companies looking to relocate look for two big things in a potential new home: talent in the form of a ready workforce and mass transit options, said Jerry Sweeney, CEO of Brandywine Realty Trust, which has partnered with Capital Metro to redevelop the IBM campus in North Austin.
"The economic impact of a mass transit system on value creation is fairly significant," he said.
In addition to its economic development benefits, public transit investment also correlates with increasing real estate values for both commercial and residential properties and job creation, Sweeney added.
With voter approval of Project Connect and state funding committed to the I-35 expansion project, Austin is more appealing to companies looking to relocate than ever.
"We need to stand on three legs: transportation, economic development and talent," said Shaun Cranston, vice president and director of land development services for the Dallas-based engineering firm Halff Associates. "When one of those three legs is weak, the other two cannot stand. I am proud and pleased to say that all three legs are strong and that we have a great future ahead of us."
4. The I-35 expansion projects offers more than congestion relief.
TxDot has proposed three expansion plans as part of its I-35. expansion project. This is one.(TxDOT)
The Texas Department of Transportation touts its $7.5 billion I-35 expansion project, which proposes to expand the highway to up to 20 lanes between Hwy. 290 and Ben White Boulevard, as a salve for traffic congestion.
Critics of the project dispute this claim, arguing that cities cannot build their way out of congestion and pointing to recent expansion of the Katy Freeway in Houston, which increased capacity but also led to induced demand. In other words, more lanes drew more drivers.
Regardless of where people stand on the congestion debate, supporters of the project say it offers other benefits. By burying a portion of I-35—between Airport Boulevard and Cesar Chavez Street—underground, it could allow for a reconnected downtown street grid.
A February report from the Urban Land Institute proposed building a surface-level boulevard over the underground portions of the interstate, which would allow for public plazas and other amenities.
"Thank you, TxDOT, for taking the main lanes below ground," Adler said during the Chamber event.
5. The Broadmoor development offers proof of some of these claims.5. The Broadmoor development offers proof of some of these claims. (Brandywine Realty Trust)
Broadmoor, a 66-acre, $3 billion master-planned community underway in North Austin, hints at the transit-oriented development that could come as a result of Project Connect.
Brandywine Realty Trust, a Philadelphia-based developer, is behind the project, which will transform the IBM campus near the Domain from a 1-million-square-foot office park to a 7-million-square-foot mixed-use destination by 2036.
Brandywine partnered with Capital Metro on the project, which is oriented around the forthcoming Broadmoor commuter rail station. When completed in 2022, it will be served by the red line and accessible to some 25,000 employees within a half-mile radius.
"We are big believers in mass transportation," Brandywine CEO Jerry Sweeney said.
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After two years of no in-person events, Austin festival South by Southwest has agreed to give 50% of ownership to P-MRC, a Los Angeles company that controls publishing operations for Rolling Stone and Billboard.
The media venture was founded in 2020 and is part-owned by Jay Penske, racer Roger Penske's son and head of Penske Racing and Penske Media.
The move comes after the COVID-19 pandemic left the festival with two years worth of hemorrhaging funds. SXSW organizers were left scrambling for solutions in March 2020 when the city of Austin canceled the festival at the onset of the pandemic. One-third of the festival's 175 year-round employees were laid off, and the festival ran a shortened virtual event in 2021.
SXSW CEO and co-founder Roland Swenson said in a statement that the company is grateful to get aid when they need it most and that they are now looking to the future.
"It has been an incredibly tough period for small businesses, SXSW included," Swenson said. "When Jay Penske approached us with an interest in becoming a partner, it was a true lifeline for us. Both of our companies share a passion for producing high-quality content that helps shape modern culture, so this feels like a natural alliance."
Both of Austin's big-name festivals are now in the hands of out-of-town buyers. In 2014, homegrown festival Austin City Limits was bought in part by LiveNation, who took 51% ownership in Austin live promoter C3 Presents.
.@MLS Commissioner @thesoccerdon and @AustinFC's Minister of Culture and part-owner Matthew @McConaughey will discuss how the League is deepening fan engagement, and how Clubs are becoming cultural mainstays at 10am on Channel 3. ⚽ #SXSW pic.twitter.com/2XFj4XEdwL
— SXSW (@sxsw) March 18, 2021
The fest has captured the essence of Austin arts and culture for 34 years, and it doesn't plan on stopping now. With P-MRC by its side, SXSW said it plans on keeping its unique identity but expanding operations as it prepares for an in-person celebration next spring.
"Since 1987, SXSW has been the world's premier festival centered at the convergence of tech, media, film, and music," Penske said. "Today SXSW continues to be one of the most recognized brands for empowering creative talent and bringing together the brightest creators of our time. As part of this significant investment, we plan to build upon SXSW's incredible foundation while extending the platform further digitally and assisting Roland and his incredible team to bring their vision to even greater heights."
With their future restored, SXSW's newest slogan rings truer than ever: "See you next year at SXSW!"
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Update: Former Travis County deputy suspected of killing 3 in northwest Austin now in police custody
Stephen Broderick is now in police custody for a suspected domestic violence incident that killed three in northwest Austin on Sunday.
After initially being called an active shooting incident, joint local law enforcement and more than 75 FBI agents proceeded with an almost day-long manhunt with three helicopters and on-ground teams for former Travis County deputy Broderick. Police captured him after a 911 caller reported a suspicious man walking along U.S. 290, where he was taken into custody.
Police believe the victims, who have been identified as two Hispanic women and one Black man, knew their assailant. A child was involved but is now safely in police custody. Two of the victims have been identified as former and current Elgin ISD students: Alyssa Broderick and Willie Simmons III.
The school district released a statement offering its condolences to the families. Alyssa was enrolled until October 2020 and played on the basketball team. Simmons was a senior at Elgin High School where he was captain of the football team and had been recruited to play football at the University of North Texas.
Travis County Sheriff Sally Hernandez released the following statement on the incident: "I'm truly heartbroken that a former Travis County Sheriff's Office Deputy is the suspect in such a horrific incident. TCSO is standing by to provide any, and all assistance we can to the families of the victims in their time of need. I'm proud of the integrity and professionalism shown by the men and women of TCSO, APD and other law enforcement agencies, who worked tirelessly throughout the night to locate Stephen Broderick. I'm especially grateful to the vigilant citizen who called 911 after seeing Broderick, and to the Manor PD officers and TCSO deputies who took him into custody this morning."
APD @Chief_Chacon provides updated media briefing in relation to Great Hills Trail incident. - PIO8 https://t.co/47siNWhARI
— Austin Police Department (@Austin_Police) April 18, 2021
During a press briefing at 4:45 p.m. on Sunday, Interim Police Chief Joe Chacon said law enforcement was on the scene for several hours investigating the incident with 41-year-old Broderick.
"We're very sorry that obviously this has happened and we continue to try and locate this individual, we are transitioning from a search in this area to a fugitive search and those efforts will continue until this person is located," Chacon said. "I don't want anyone to think that we're packing up and going home. We're going to continue to look for this individual because he continues to pose a threat to this community."
#texasshooting #masshooting Arboretum shooting Austin. pic.twitter.com/SkIsgDoYHt
— Jamie Hammonds (@jamie_hammonds5) April 18, 2021
This story has been updated at 8 a.m. Monday to include the latest information.
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Formula 1 is returning to Florida for the first time since 1959, announcing that the brand-new Miami Grand Prix will join the calendar in 2022 and Austin will no longer be the only F1 race in the U.S.
Held at the Hard Rock Stadium complex in Miami Gardens, this will be the first race in the Sunshine State in 62 years. With a new track setup, F1 will loop the stadium, home of the NFL's Miami Dolphins.
Excited for @F1 @f1miami @HardRockStadium - a Global Entertainment Destination. This event will bring opportunities for so many and will be world-class. Thank you to @gregmaffei #chasecarey #stefanodomenicali @MayorRHarris @Ogilbert @CommishDiaz @MayorDaniella pic.twitter.com/n6dDDD1cPX
— Tom Garfinkel (@TomGarfinkel) April 18, 2021
The new 3.36 mile circuit has 19 corners, three straights and potential for three DRS zones, with expected top speeds of 198 mph.
Now with two races in the U.S., F1 President Stefano Domenicali said they will avoid having back-to-back events by keeping the Miami Grand Prix separate from the U.S. Grand Prix, which is held at Austin's Circuit of the Americas.
The date of the race has yet to be confirmed, though Domenicali said he expects the first race in a 10-year deal to take place in the second quarter of 2022. Austin's race will take place on Oct. 24 this year.
"The USA is a key growth market for us, and we are greatly encouraged by our growing reach in the U.S. which will be further supported by this exciting second race," Domenicali said.
Miami will mark the 11th race location in the U.S. since the Championship began in 1950: Circuit of The Americas in Austin; Dallas, Texas; Indianapolis, Indiana; Sebring, Florida; Riverside, California; Watkins Glen, New York; Long Beach, California; Las Vegas, Nevada; Detroit, Michigan and Phoenix, Arizona. COTA was first opened in 2012.
Domenicali said F1 will be working with the FIA and the Hard Rock Stadium to leave a lasting impact on the community: discounted tickets for residents, a program to support local businesses and a STEM education program through F1 in schools.
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