Councilmember eyes Austin American-Statesman site plan for homeless funding

AUSTIN (KXAN) — An Austin City Council member thinks the redevelopment of the former site of the Austin American-Statesman could help fund more temporary housing for people experiencing homelessness.

Dist. 4 Council Member Jose 'Chito' Vela put forth the idea this week in a message to his colleagues on the city council message board.

As KXAN has reported, the proposed plan for the 19 acres surrounding the old newspaper headquarters is expected to bring high-rises, hotels, and residential units to the south shore of Lady Bird Lake.

Under the agreement, the developer would have to include some affordable housing.

Vela has proposed the city instead allow the developer to "cash out" of the requirement by paying a fee. The money (an amount to be determined) would then be funneled to the city's HEAL initiative for homeless housing solutions, like the leasing of more hotel space.

"Getting our neighbors off the street today would do far more good than a relatively small number of affordable units sometime in the future," Vela said.

Current estimates put the number of unhoused Austin residents at 3,200.

Vela said while the city and Travis County have jointly committed $215 million to build housing for 3,000 people, those projects could be 12 to 18 months away from completion.

Mayor Steve Adler told KXAN he is open to exploring Vela's proposal.

"I really appreciate the creativity," Adler said. "I think there might be some promise in [the idea]."

Dist. 9 Council Member Kathie Tovo voiced her opposition in a reply to Vela's message board entry, saying affordable housing is an important component of the Statesman plan.

"I cannot support that measure," Tovo wrote. "I do, however, support identifying other sources of funding for HEAL."

KXAN spoke with Dist. 5 Council Member Ann Kitchen who said she would like to see the council explore its options, though she also has concerns.

"[The Statesman site] is in an area that Project Connect and the rail line will be going through," Kitchen said. "For people who are lower-income, it's important to have affordable units in this area."

The council is expected to take up Vela's proposal at its work session next Tuesday.