Naked City

Today (Thursday) the City Council is scheduled to consider awarding $25 million in property and sales tax rebates -- based on a new economic policy the council has yet to adopt, and after only one meeting's worth of discussion -- for the Domain, a mixed-use urban village project in Northwest Austin. Requesting additional scrutiny, on Monday Council Member Daryl Slusher wrote to colleagues and city staff suggesting that City Hall was moving too fast on the deal.

While calling the Domain a "good" project that could help restore the city's share of sales tax collections in the Austin metro area (55% this year, compared to 83% in 1990), Slusher sought more details regarding how the city developed the proposed abatement package for developers Endeavor Real Estate Group. He also inquired about the wages to be paid by Domain-produced jobs, Endeavor's promised $1 million fund to help local businesses participate, and other matters. Slusher conceded that the Domain package, based on recommendations from the Mayor's Task Force on the Economy, is similar to incentives previously granted by the council, but expressed concern that the Domain is being presented as part of a new policy that is still far from official. (Slusher did not note, but could have, that the Domain meets several of his famous criteria for spotting a boondoggle -- including the fast-track timeframe, the promises of job creation and tax-base enhancement, the lack of full public input, and the claim that Austin is one of few cities not to have such a project.)

Responding to Slusher's inquiries, Endeavor principal Kirk Rudy says he expects to provide answers at tonight's hearing. Meanwhile, city staff remains enthusiastic about the Domain as an example of how to assist such projects without up-front risk. Referring to Endeavor as "a small, local development company," Sue Edwards of the city's Economic Growth & Redevelopment Services Office says the Domain will generate $29 million more in tax revenue over 20 years than would the office complex Endeavor planned to build if public investment were not forthcoming. "Not only will the city receive more in taxes, it will receive these taxes earlier than if an office complex were built," she said. The Travis Co. Commissioners Court, which is also considering tax rebates for Endeavor, took up the issue at its meeting Tuesday.

While Slusher has focused on economic policy, others are concerned about Endeavor's environmental policy. The Save Our Springs Alliance opposes the Domain deal because Endeavor is planning to sell another tract -- a grandfathered property over the aquifer -- to Wal-Mart, which plans to build a supercenter on the property, with impervious cover as much as three times above SOS Ordinance limits. Endeavor has discussed buying enough land in the recharge zone to achieve SOS' 15% allowance, but neither the alliance nor the Save Barton Creek Association is convinced that the damage caused by Wal-Mart could be mitigated.