Austin may seek $124M federal grant for 'cap' program for decks over lowered I-35

Chase Rogers, Austin American-Statesman
·3 min read
Traffic flows on Interstate 35 through downtown Austin in August. The city envisions building large decks over a lowered I-35 with pedestrian walkways, bike paths and green space.
Traffic flows on Interstate 35 through downtown Austin in August. The city envisions building large decks over a lowered I-35 with pedestrian walkways, bike paths and green space.

The Austin City Council on Thursday will consider applying for a federal infrastructure grant for proposed decks over a lowered Interstate 35 through Austin, exploring additional funding avenues to realize the city's estimated more than half-billion-dollar program.

The proposed decks — also referred to as "caps" and "stitches" — would span certain portions of the newly expanded highway, connecting parts of the city with new pedestrian walkways, bike paths and green space. City officials estimate the program, called OurFuture35, could create more than 30 acres of centrally located real estate and cost more than $800 million.

The city of Austin and the University of Texas, which is considering caps over I-35 between 15th and Dean Keeton streets, are facing Texas Department of Transportation-set deadlines to identify funding for elements of their plans. The deadline is a result of TxDOT needing to know whether to engineer parts of the highway to accommodate the decks as it starts construction to expand and widen I-35 through Central Austin later this year — an effort state highways officials say will last a decade and cost $4.5 billion.

A graphic shown to Austin City Council members at a March 19 workshop shows proposed "cap" and "stitch" locations over Interstate 35 in Central Austin.
A graphic shown to Austin City Council members at a March 19 workshop shows proposed "cap" and "stitch" locations over Interstate 35 in Central Austin.

The vote Thursday would direct city staff to apply for a $124 million grant to fund cap and stitches over I-35 and amenities at Holly Street, Fourth and Seventh and 11th and 12th streets, according to briefing documents for the City Council. The U.S. Department of Transportation grant would require a 40% local match, or roughly $82.6 million, meaning the city could net $206.5 million in total for the proposed decks.

The vote would mark the city's second run for federal funds. In March, the Department of Transportation announced it would award $105.2 million for the city's plans for a 5.3-acre cap over I-35 between Cesar Chavez and Fourth. The city's local match for this grant — part of the department's Reconnecting Communities and Neighborhoods Program — is $45 million.

More: TxDOT green-lights $4.5 billion I-35 expansion project through downtown Austin

Also in March, the city submitted an application seeking a 20-year loan for $191 million from the state's TxDOT-managed infrastructure bank for the program — an amount significantly higher than what the bank typically issues. This application has not yet been considered by the Texas Transportation Commission, a five-person body appointed by the governor to oversee TxDOT.

The city is banking on the funds from the pending state loan application. According to the briefing documents, city officials are proposing using a portion of the borrowed funds — nearly $82.6 million — to pay for the 40% local match for the $124 million grant the city is considering during the Thursday vote.

State infrastructure bank "funding would still fund the roadway support and other structural elements as described in the loan application, effectively leveraging those dollars for federal funding for additional decks and surface amenities," city officials wrote in the briefing materials, which recommend that the City Council approve sending the $124 million loan application.

Supporters see the proposed decks as a means to rectify the downsides of I-35 running through the city, including the bifurcation of Austin's neighborhoods. Critics say the infrastructure is too costly and would fall short of addressing the highway's lasting effects, particularly on East Austin.

More: Hundreds rally against TxDOT's plans to expand I-35 through Central Austin

In a memo to the City Council, Assistant City Manager Robert Goode said the city would submit the application Friday ahead of its May 6 deadline if the council votes to approve the move Thursday.

What will be built on the caps remains to be seen. City officials say community input will inform the city's planning decisions, including feedback garnered during a planned May 18 town hall. The city-hosted event will be from 10 a.m. to 2 p.m. at Austin Community College's Highland Campus, at 6108 Wilhelmina Delco Drive, in Building No. 2000.

This article originally appeared on Austin American-Statesman: Austin may seek $124M federal grant for decks over lowered I-35