Planning commissioners back PUD amendment with compromise parkland terms for South Shore site

The Austin Planning Commission on Wednesday recommended that City Council approve an amendment to the South Shore planned unit development that would add about 1.4 acres and allow building heights up to 180 feet at the intersection of East Riverside Drive and South Lakeshore Boulevard.

The action followed extended debate over parkland-dedication terms for the amendment. Staff from the Parks and Recreation Department told commissioners that vesting the new area to the PUD’s original 2007 parkland fee—$650 per residential unit—would “grossly undervalue” today’s cost of acquiring and developing parks. "At 375 proposed units, that's $1,500,000 lost in Parkland Dedication fees," said Robin Hamans, a principal planner with the department, urging that the area come into compliance with the current Parkland Dedication Code.

The applicant, represented by Michael Whelan, said the site is positioned for transit-oriented development and that his team had promised the neighborhood it would pursue buying an adjacent half-acre to donate to Heritage Oaks Neighborhood Park. "We committed to the neighborhood a year ago that we would try to acquire the half acre next to Heritage Oaks and dedicate it to the city," Whelan said, adding that the parcel will be auctioned in May and that the applicant is at risk of being outbid.

Commissioners debated whether to require current parkland fees, accept a donated parcel that the neighborhood has prioritized, or find a middle ground. Commissioner Maxwell moved to replace staff’s parkland recommendation with a two-option approach: the applicant could either donate the half-acre and pay a legacy fee or comply with the parkland dedication requirements in effect at site-plan submittal. Commissioner Ahmed successfully amended Maxwell’s motion to raise the legacy fee to $1,300 per residential or hotel/motel unit. The amended motion passed unanimously.

The commission’s recommendation therefore asks Council to allow the applicant to (1) dedicate the half-acre adjacent to Heritage Oaks Park and pay $1,300 per unit, or (2) comply with current parkland-dedication requirements at the time of site-plan submittal.

Parks staff made clear they do not have authority to waive the approximate $1.5 million gap between the legacy fee and current fees and that fee-in-lieu funds must be spent within established proximity guidelines (typically a quarter mile, expandable up to two miles for certain park improvements).

The recommendation moves the land-use question to City Council, where the PUD amendment and the revised parkland language will be considered along with any additional conditions or legal clarifications. The commission closed the public hearing and advanced its recommendation after hearing neighborhood contact-team members who said they supported the amendment if it included the parkland acquisition and safety improvements.

The commission voted unanimously in favor of the amended motion.