Austin Proposes to Seek $124M Federal Grant for Decks Over Lowered I-35 to Connect Communities

Austin City Council to Explore Application for Federal Funds for I-35 Development

The Austin City Council is deliberating on a vote to apply for a $124 million federal infrastructure grant to fund proposed decks over a lowered stretch of Interstate 35 (I-35). This comes as the city explores new funding sources to realize its ambitious project, estimated to cost more than half a billion dollars.

The Concept of Decks and Caps Over I-35

The proposed decks, also referred to as ‘caps’ or ‘stitches’, are designed to span certain sections of the newly expanded highway. The goal is to create new pedestrian walkways, bike paths, and green space, effectively bridging various parts of the city. The program, known as OurFuture35, is expected to create over 30 acres of centrally located real estate and bring the city together.

Meeting TxDOT-set Deadlines

With the University of Texas considering implementing caps over I-35 between 15th and Dean Keeton streets, the city faces Texas Department of Transportation (TxDOT) set deadlines to identify funding. The urgency of these deadlines lies in TxDOT’s need to know whether to engineer parts of the highway to accommodate the decks, as it commences a ten-year, $4.5 billion project to expand and widen I-35 later this year.

City’s Second Run for Federal Funds

If approved, this vote would direct city staff to apply for the $124 million grant, earmarked for the cap and stitches project. However, securing this grant requires a local match of 40%, translating to approximately $82.6 million. This would see the city potentially netting $206.5 million in total for the proposed decks.

Earlier in March, the Department of Transportation awarded $105.2 million to the city’s cap plan over I-35 between Cesar Chavez and Fourth. This marked the city’s first successful bid for federal funds, demonstrating a growing trend in seeking external financing for large infrastructure improvement projects.

The City’s Funding Strategy

Simultaneously, the city submitted an application for a 20-year loan amounting to $191 million through TxDOT’s infrastructure bank. Though the requested amount is notably larger than the bank traditionally issues, the city remains hopeful of securing the loan. With this, city officials propose using a chunk of the borrowed funds- approximately $82.6 million- to cater for the 40% local match for the federal grant.

Community Response to the Proposed Decks

The proposed decks have generated mixed reactions from the local community. Supporters believe the decks will help rectify the community divisions created by I-35 running through the city, while critics argue that the costly infrastructure does not adequately address the highway’s lasting effects, particularly on East Austin.

The Role of Community Input

While deliberations continue, the Assistant City Manager Robert Goode confirmed in a memo that the city would submit the application by Friday if the council approved the move. As the city races against the looming May 6 deadline, it remains committed to public involvement in deciding what will be built on the caps. To this end, a town hall is scheduled for May 18, aimed at garnering community feedback that will shape the city’s planning decisions for the caps.