Project News / Commercial
$5 Billion+ Southeast Austin Development Moves Forward
A Nov. 5 ordinance sends the city's share of Tax Increment Reinvestment Zone No. 21 revenue to the Housing Trust Fund and Parks Enhancement Fund for Endeavor's 12,395-home development.
The Austin City Council on Nov. 5 approved an ordinance directing the city's share of tax revenue from Tax Increment Reinvestment Zone No. 21 to the Housing Trust Fund and the Parks Enhancement Fund. The zone finances infrastructure for Dog's Head, a 2,614-acre mixed-use development planned by Endeavor Real Estate Group in southeast Austin. The ordinance also requires an annual report, lists no fiscal impact and passed on the consent agenda.
The site sits about 3.5 miles from downtown, bounded by the Colorado River, US 183 and SH 130. Build-out is planned over 28 years, from 2030 to 2057. The plan calls for 12,395 homes, including 6,195 single-family and 6,200 multifamily units, with 20% affordable, or about 2,479 units.
Homes, commercial space and infrastructure
The nonresidential program totals about 9 million square feet. That includes 4 million square feet of industrial space, 2.5 million of retail, 1.5 million of office and 1 million of hospitality. At least 266 acres would be open space, along with 6.5 miles of river trails. The project is projected to be valued at up to $26.9 billion by 2057.
Infrastructure costs are estimated at about $5 billion to more than $5.6 billion, depending on the estimate used. The developer is expected to pay for the infrastructure upfront, with the TIRZ able to reimburse about $1.5 billion of it. Over the zone's life, the city could draw more than $1.7 billion by 2061, and Travis County could collect more than $1 billion if it joins. The county had not joined as of July.
The earlier city approvals
The Nov. 5 vote follows two earlier steps. On May 21 the council approved annexation and a development agreement. On July 23 it created TIRZ No. 21 on a 7-3 vote, with council members Velásquez, Siegel and Qadri voting no. A board with three city and three Endeavor members oversees the zone. Del Valle ISD, Central Health and Austin Community College taxes are not affected.
Under the agreement, Endeavor committed to a 79% cap on impervious cover, worker pay, safety and training standards, a $100,000 displacement assessment to be conducted by the city, and no standalone data center on the site for at least 10 years. During the July debate, Siegel said, "If I had to sum up my belief, it's that the city negotiated from a place of weakness." Council member Alter said, "We should have required more: Required more public engagement, required more public information, and we didn't."
Tenant plans and next milestones
Amazon's robotics division is a prospective anchor. Amazon is considering an advanced robotics facility on the site that could open by late 2027, though the company has not announced a commitment. No contractor has been named for infrastructure or vertical construction.
With the financing framework and revenue dedication in place, the next public steps are the first phase of infrastructure design, any decision by Travis County on joining the zone, and permits for the first tenant buildings. The vote tally for the Nov. 5 ordinance will appear when the meeting minutes are approved.
