Here's how the Austin City Council voted on the Oracle land swap, Candlewood contracts

Downtown Austin, Texas on Sunday, May 29, 2022.
Downtown Austin, Texas on Sunday, May 29, 2022.

Back after a November holiday break, the Austin City Council took up nearly 120 items at its regular meeting Thursday, ranging from taking the first steps on a new density bonus program to increasing funding for the renovations of two city-owned hotels slated to be housing units for homeless people.

Here's what happened at this week's meeting:

Hotels slated to house homeless need more funding

The City Council approved more money to get Pecan Gardens, formerly the Candlewood Suites hotel, operating as permanent supportive housing units for individuals experiencing homelessness.

The city of Austin in 2021 purchased the Candlewood Suites hotel in Northwest Austin for around $9.5 million. Two years later — after security issues and opposition from local groups like "MOVE Candlewood" — the facility near U.S. 183 and the Texas 45 toll road has not yet opened.

After the discovery of structural issues like mold and drainage problems, the City Council on Thursday approved additional funding just under $2.7 million for Family Eldercare, the group tasked with renovating and eventually operating the property.

Additionally, the city says just under $400,000 is needed for renovations at the Bungalows at Century Park, formerly known as the Texas Bungalows Hotel & Suites, which is slated to be fully furnished efficiency apartments for individuals experiencing homelessness.

The council recommendation for action cites costs associated with electrical upgrades and construction price increases related to fencing, flooring and landscaping.

The City Council also approved an amendment to its contract with Integral Care, who is renovating and will operate Bungalows at Century Park, by increasing available funding no more than $397,002.

Funding for both hotels will come from the city Housing Department's capital budget.

Density bonus program for the construction of police, fire, EMS stations

The City Council passed a resolution to start conversations around creating a new density bonus program that would give incentives to developers to donate land to the city specifically for use of public safety stations.

District 6 Council Member Mackenzie Kelly, who is the lead sponsor of the resolution, told the American-Statesman, "I don't believe that it's sustainable long term for the city of Austin taxpayers to be buying property and land and building police, fire and EMS stations."

The resolution has garnered support on the dais — Council Members José ''Chito'' Vela, Ryan Alter and José Velásquez signing on as co-sponsors. The resolution does not change city code. Rather, it directs the city manager to draft an ordinance related to the item to be voted on at a later date.

"It is absolutely a community benefit to have adequate police, fire and EMS response, and I think that this will help ease the burden of taxpayers when building those properties," Kelly said.

Oracle land swap

The City Council approved a land swap for about 50 acres of parkland two years after voters initially approved it.

Austin voters in November 2021 approved Proposition B, allowing the city to pursue a proposed swap of parkland near Lady Bird Lake.

The ordinance approved Thursday would give the tech company Oracle 9 acres of city land at 2525 S. Lakeshore Blvd. in exchange for:

  • Approximately 50.021 acres of waterfront land located at 8400 Delwau Lane.

  • The design and construction of a new maintenance facility located on other city-owned land.

  • Payment of $1 million to fund the restoration of some land at Fiesta Gardens that is currently being used as a maintenance facility.

The city property at 2525 S. Lakeshore Blvd., also known as the Central Maintenance Complex, or CMC, was appraised at more than $35 million in 2023, according to the Travis Central Appraisal District.

The draft ordinance states, "Council further determines that the total value of the proposed bid package meets or exceeds the appraised value of CMC and meets all other ballot conditions."

According to the draft ordinance, Oracle was the only respondent to the proposal.

District 10 Council Member Alison Alter, who voted against the item, raised several concerns Thursday about the deal and proposed two amendments that both failed. Council Members Vanessa Fuentes and Zohaib "Zo" Qadri also voted against the item.

Public comment draws dozens to City Hall

Two groups of protesters gathered Thursday at Austin City Hall — one calling for a cease-fire in Gaza and another opposing the HOME initiative that the City Council is set to vote on next week.

Several individuals told the council Thursday why they opposed the HOME initiative, which would amend the city's land development code, including allowing up to three housing units on single-family lots. Many cited concerns about displacement and called for a "no" vote or a postponement of the item.

Others held signs behind the speaker's podium. One read, "Density without regulation = gentrification."

After the public comment portion of the meeting, people gathered outside City Hall to speak out against HOME — many saying they would not support City Council members in the next election cycle who vote for the initiative without amending it.

The council is set to take up the ordinance at a special called meeting Dec. 7.

This article originally appeared on Austin American-Statesman: Candlewood hotel density bonus program on Austin City Council agenda