Austin City Plans to Allocate $11 Million for Historic Property Purchases
The city of Austin is taking an important step to preserve its cultural heritage by allowing Rally Austin to manage an estimated $11 million in funds aimed at purchasing historic properties. These purchases are strategically aimed at enhancing tourism and cultural uses in the area.
City Council’s Decision
During a City Council meeting held on Thursday, a resolution was passed to instruct city staff to collaborate with Rally Austin and other relevant organizations to create a plan for utilizing the money allocated to the Historic Preservation Acquisition Fund. This fund, which has largely been underused since its establishment in 2018, options a new approach to preserving Austin’s unique historic sites.
The upcoming plan will align with the city’s Equity-Based Preservation Plan, which is expected to be adopted later this year. This initiative has stirred a small debate earlier in the year when a proposal to utilize these funds to support the Austin Creative Alliance (ACA) in acquiring its East Austin headquarters was blocked. The ACA manages a space for eight artists and has been significantly impacted by increasing rent and property taxes.
Response from the Community
While the passage of this resolution does not provide an immediate solution to the challenges faced by ACA, CEO John Riedie expressed hope for the process ahead. “It’s great news to see these resources starting to move into the marketplace. Certainly hope that the city can set up a process quickly so that we don’t lose any historic properties in the meantime,” he stated. He emphasized the urgency, saying, “The clock is ticking, though.”
Rally Austin officials chose not to comment on the resolution, but their current focus on creative spaces and affordable housing will expand with these new funds. In addition to recent projects, Rally Austin will play a key role in redeveloping two historic blocks located on East 11th Street.
Support from Preservationists
Local preservationists are backing the decision to allocate acquisition funds. Lindsey Derrington, executive director of Preservation Austin, expressed her hope that this forthcoming plan will emphasize the preservation of underserved sites in East Austin. “We really want the city to look at this through an equity lens,” she mentioned, highlighting the importance of preserving landmarks that reflect the heritage of the Black and Mexican American communities in Austin.
Financial Considerations
Derrington pointed out that while $11 million seems like a substantial amount, the reality of property prices in Austin in 2024 may make those funds limited. “A process is really important,” she stressed. The acquisition funds are generated from Hotel Occupancy Tax revenue and currently increase between $2 million to $3 million annually.
Moreover, both the city and Rally Austin could explore state historic preservation tax credits, which can help cultural organizations improve their historic buildings while saving up to 25 percent on renovation costs. These credits can even be sold beforehand to provide immediate financial resources for necessary improvements.
Looking Ahead
The detailed plan for using the Historic Preservation Acquisition Fund will be crafted in consideration of recent studies conducted across the city regarding cultural and historic spaces. These analyses promise to provide a variety of acquisition options in the future.
As the situation unfolds, Derrington reiterated the importance of relationship-building between city’s efforts and the local community. “It’s not just the city buying buildings; it’s about selecting buildings that have the right potential for cultural uses or where current operators are facing rising property taxes,” she explained.
Austin stands at a crossroads, balancing growth and development with the preservation of its rich cultural history. The upcoming months will be pivotal in determining how these funds are utilized and what role they will play in celebrating and maintaining Austin’s unique heritage.
