CapMetro proposed a sharply scaled-back version of its massive Project Connect transit plan, cutting one rail line from the plan entirely and several miles of another.
The new plan, shared Wednesday evening, comes just five days before the CapMetro board and Austin City Council plan to meet to discuss, and potentially vote on, a bond proposal to put to voters in November, and the creation of a governing body for construction and implementation of Project Connect.
The long-anticipated project was dealt an unexpected blow this year when the pandemic brought economic insecurity to government and citizens alike.
The cuts to Project Connect reduce the cost of the plan by $3 billion to a total of $7 billion and would lower the original 11-cent tax increase to 8.5 cents. For the median homeowner, that would reduce the annual increase in their property tax bill from $358 to $276.
The elements cut from the plan include shortening the proposed Orange light rail line, which would span North Lamar and South Congress, so that it only stretches between Ben White and U.S. 183 rather than going all the way from Tech Ridge Center to Slaughter Lane. The mileage cut from the proposal would be replaced by MetroRapid bus service. The Gold Line from Austin Community College Highland to downtown would be replaced altogether by MetroRapid service.
These two changes would save CapMetro $2.35 billion, with another $500 million worth of cuts coming from unnamed savings in the construction of the downtown tunnel used by the Orange Line.
Overall, this means property owners in CapMetro's service area would pay $3.85 billion.
Council Member Ann Kitchen, who also sits on the CapMetro Board, told Austonia this week that the council plans to vote next Monday on asking city staff to bring forward a resolution regarding a potential bond election by Aug. 7. The bond election would be officially ordered during the Austin budget meetings the week of Aug. 12.
Asked whether she thinks Project Connect could be delayed due to the coronavirus, which has brought financial cutbacks for major government programs all across the nation, Kitchen said via text, "I see transit going forward."
Austin has lost both of its last two transit bond elections. The most recent loss, by 14 points in 2014, came during a year of historically low voter turnout across the nation while the other happened in 2000 and lost by just a few thousand votes.
Along with deciding whether to take the next step toward putting a bond election on the ballot, the City Council and CapMetro Board also must vote on approving the reduced Project Connect plan. Last month, the pair approved the full plan.
If voters approve the bond in November, CapMetro would still need to seek an additional $3.15 billion in funding—45% of the total budget—from the federal government.
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In May, Circuit of the Americas chairman Bobby Epstein looked back on 10 years of Formula 1's U.S. Grand Prix at COTA confident that the race would be here to stay in Texas. But sources tell Austonia that securing another contract may be in jeopardy.
Some insiders worry that COTA's 2021 Grand Prix race might be its last.
The multi-day fest from Oct. 22-24 will include a 56-lap race over the 3.3-mile track, food and musical performances from two acts, including Billy Joel at COTA's 1,500-acre facility in Southeast Austin. But after this year, the U.S.' first F1-specific track could lose its headline event.
The facility's inability to secure a contract thus far comes down to the Texas Legislature, a new threat in Miami, and, most importantly, money.
The first F 1 race will take place in Miami next year. (Hard Rock Stadium)
Every year, Formula 1 receives roughly $25 million from Texas' Major Events Reimbursement Program, a taxpayer-funded initiative that helps bring big sporting events like 2017's Houston Super Bowl to the state. A 2019 report by the Reimbursements Program on that year's race said the "data is inconclusive" on if the event has a positive or negative economic impact on the state with the resources given. In 2018, the Austin-American Statesman reported that COTA had brought back a total of $75.7 million between 2015 and 2017 for hosting the U.S. Grand Prix.
Legal issues have also barred Epstein and Co. from securing another 10-year contract earlier: in 2018, the company lost its yearly $25 million bid after failing to submit a human trafficking prevention plan as part of its yearly application.
That same year, F1 managing director of commercial operations Sean Bratches told the Associated Press that the organization hopes to stay at COTA "for many years to come."
However, in May, the racing league announced that it had secured a 10-year contract to hold the Miami Grand Prix as American interest in the sport soared following the three-season "Drive to Survive" documentary, which gives behind-the-scenes looks at drivers and races of the Formula One World Championship.
Epstein is optimistic about the new U.S. location and told Autoweek in May that "more race in our time zones are good for the sport."
"I think we're getting double the impact this way," Epstein said. "Miami should sell out huge the first year and maybe the second year and then after that, I think we'd be spitting audience if we were around the same time on the calendar. So the spread is fantastic."
Bobby Epstein recognizes the 1 millionth customer of COTA in 2013. (COTA/Facebook)
The new F1 venture may impact COTA's contract, however: in an opinion piece for the Fort Worth Star-Telegram, writer Mac Engel said Texas is unlikely to fork over taxpayer money if the facility is no longer the only F1 track in the U.S.
According to Engel, the Major Events Reimbursements Program agrees to provide funding only "if Austin holds the only F1 race in the country."
Epstein hasn't addressed such claims; by contrast, he feels as though there's room for a third race in the U.S. as ticket sales rebound after COVID.
"In the first week, we sold pretty much all the tickets we put up for sale and we plan to break the 2019 attendance record," Epstein told Autoweek. "Texas was the first place to lift COVID-19 restrictions (in the U.S.) and put on sporting events, and we're full. We're at 100% capacity.
Despite ventures to diversify revenue at COTA—Epstein's USL soccer team Austin Bold has seen its own share of troubles, and the facility plans to develop into a multi-faceted entertainment arena complete with music venues, a waterpark, condominiums and an 11-story hotel—a loss of its primary event could be devastating for the $300 million complex.
F1 has rarely lasted more than a decade at venues in the U.S. over the last century; let's hope Austin breaks that curse.
COTA's media relations team did not immediately get back to Austonia for comment.
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Houston? Dallas? San Antonio? No, it has to be Austin.
We know Californians love Texas, but a recent string of posts on neighborhood platform Nextdoor in Santa Barbara, California, displays what the craze to move to Austin looks like.
When one user posted, "Hi neighbors, I want to buy a house in Houston, Texas any recommendations?" the responses flooded in displaying what the admiration for Austin looks like from the West Coast. Users mostly advised against a move to Houston; one person even wrote, "Austin is the ONLY place to consider!!"
While some defended H-town, saying, "Awesome place to live," one person wrote, "WORST PLACE TO LIVE." Reasons to not move to Houston from Californians' perspective included:
- "Foul air from refineries"
- "horrible flooding due to the flat Gulf coastal shelf"
- "crazy zoning"
- "racial prejudice"
- "super high humidity"
- "very conservative"
The comments were shifted to Austin's lush greenery, weather and acceptance of gay people.
Over the last five years, Austin has seen more migrants from California than any other state, according to an Austin Chamber of Commerce report. The Austin appeal from residents living in more congested places like California became more prevalent during the pandemic when stay-at-home orders were issued and people sought more space.
It wasn't just Austin though; lots of other Sunbelt cities saw an influx in their housing market as a result of people working from home and looking for a lower cost of living. And that included Texas in general, with people flooding to various Texas cities.
But it hasn't come with resistance. The "Don't California my Texas" pleas are still alive and well, as Californians are blamed for raising the cost of living by outpricing current residents. The housing market has reached record numbers in the median home price year-over-year since the beginning of the pandemic. Austin was even predicted to be the most expensive city outside of California by the end of the year.
Still, Californians and even New Yorkers can't stay away. Companies and celebrities have followed, leading Texas transplant Elon Musk to label Austin's future as "the biggest boomtown that America has seen in half a century."