Downtown Austin's Hobby Building could soon undergo 'transformational' redevelopment

A vacant state government office building located in the heart of downtown Austin could soon be redeveloped into what Texas Land Commissioner Dawn Buckingham hopes will be "the single most transformational workforce housing project in this country."

The Texas General Land Office is now accepting proposals for the redevelopment of the William P. Hobby Jr. State Office Building at 333 Guadalupe St., Buckingham and Austin Mayor Kirk Watson announced at a news conference on Tuesday.

"It is my goal to build as much workforce housing as possible on this site, hopefully coupled with amenities that downtown residents need such as child care, parking and retail space," Buckingham said Tuesday.

Watson shared Buckingham's sentiment about the 1.76-acre property, which has been vacant since October 2022, saying the redevelopment of the site is "bigger than just getting rid of a beat-up, old structure."

"It's great to have Commissioner Buckingham, in the state specifically, looking at how we make affordability available for more people who do the work, who are the essential workers, who are the public servants," Watson told reporters Tuesday. "That's what this is about."

Built in 1984, and purchased by the state just a few years after, the building has housed nearly 20 agencies including the Texas Department of Insurance, the Texas Medical Board and the Texas State Board of Dental Examiners.

During its final years of occupancy, the building needed significant work done to its plumbing and electrical systems and had a rat infestation.

Watson laid the groundwork for the project with legislation he sponsored while serving in the Texas Senate.

The building "is an embarrassment (and) it's a joke — in any other universe it wouldn't exist," Watson said during a 2019 Senate Finance Committee Meeting. "And yet it sits on a piece of property that is of great value to the state if the state were to use it in a smarter way."

On Tuesday, Watson noted the proposed light rail line will run very close to the property.

"Imagine how easy it would be for a state employee living here to jump on the light rail and head to work at the state Capitol," Watson said. "Imagine the cost savings for a state employee who no longer has to rely on a car to get the work."

As of Tuesday, interested parties have 90 days to submit responses.

“She (Buckingham) is challenging the respondents to be creative and explore different approaches and partnerships to help address affordability in our city," Watson said.

General Land Office staff will then review the proposals, which will ultimately need to be approved by the School Land Board.

"Anytime (the) state can come together with Austin, and work collaboratively for the benefits of the residents, we all win," Buckingham said Tuesday.

Editor's Note: This story has been updated to show the Hobby Building was occupied until October 2022.

This article originally appeared on Austin American-Statesman: Hobby Building in downtown Austin is ready for redevelopment