I-35 Cap & Stitch: City has to figure out how to pay for cap decks

Austin leaders try to fund I-35 cap and stitch project

Austin City Council is trying to figure out how to pay for park decks that will go over the highway. It's part of the I-35 Cap and Stitch project.

AUSTIN, Texas - Austin City Council is trying to figure out how to pay for park decks that will go over the highway. It's part of the I-35 Cap and Stitch project.

RELATED COVERAGE: Austin has to commit funding for phase 2 of caps and stitches sooner than expected

By the numbers:

Council has already approved $104 million for the roadway elements, or foundations, for the project at these locations.

A $604 million construction commitment is needed for the cap decks. 

There is a slight increase in cost for one of the decks because the design has to accommodate two-story buildings.

What they're saying:

In a Council work session Tuesday, council members got an update on where funding stands. They say federal grants are unlikely right now. The city lost a federal grant last year. 

"At this point the horizon is not in our favor, but we will continue to look for any opportunities we can," Kimberly Oliveres, director of the Austin financial services department said during the meeting. 

This breakdown shows how park decks in other cities are funded. Many of them have a large percentage of philanthropic donations. The city wants to find partners to help pay for the project in Austin.

"We're putting that call out to the community, we'll continue to engage with them going forward, help us understand who can help bring these fruition," Oliveres said.

"If we are to have partners, there needs to certainty, certainty as to what the numbers are, what are they going to invest in, and that we don't have at this particular point. If I'm an investor, I need to know how much and where and what," Michael Rogers, assistant city manager, said in the meeting.

Some council members, like Krista Laine, are concerned about the increasing costs of materials and inflation. She also reminded others of budget constraints.

"We have to stop chasing speculative funding and start moving forward with a disciplined eye on our actual needs," Laine said.

Council Member Marc Duchen expressed concern about coming up with hundreds of millions of dollars in the next few years. 

Council Member Paige Ellis says she's open to revisiting the conversation about retaining walls, which was discussed last year.

"I am increasingly concerned about utilizing debt in a way that is not approved by our voters, that is not blessed by the people on the hook for paying the bill," she said.

Cap and Stitch: Austin has to raise more money

There has been a change in how fast the city has to commit to funding for Caps and Stitches over I-35. The project will create real estate for parks and buildings over the highway. It's split into phases, and council approved funding the first part earlier this year.

Other council members, like Ryan Alter, say there's no need to go backwards on what was already approved.

"Trying to revisit this vote through how can we scale down what we already approved, we've been there, do we need to do all that again, what was the point in the whole debate we had last May?" he said.

He says other projects have different funding sources. For example, the Convention Center if funded by hotel occupancy tax. Alter says capital dollars are not funded by property taxes, so this project doesn't have to do with cuts to social services.

Council Member Chito Vela says this is about laying the foundation for the next hundred years. He says future councils can continue the project. 

"This is about 2060, 2070, and what Austin looks like in the future," Vela said. "What we can do is we can plant the seed that a future city council with a different presidential administration can hopefully harvest, I don't want to take that possiblity away."