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Proposal for new multi-million dollar office space for Austin Transit Partnership postponed

Board was set to consider approving $32M lease, $15M buildout Wednesday

Proposal for new multi-million dollar office space for Austin Transit Partnership postponed
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AUSTIN (Talk1370.com) -- A plan for new office space for the Austin Transit Partnership has been stopped in its tracks - at least for now.

The ATP board of directors was set to consider two agenda items at its regular meeting on Wednesday - one that would authorize the signing of a 90 month lease for 51,600 square feet of office space in a downtown high-rise at the corner of Congress & Cesar Chavez, at a cost not to exceed $32 million.


The second agenda item would have authorized a buildout of that office space, at a cost not to exceed $15 million.

Austin Mayor Kirk Watson, who serves as Vice Chair of the board of directors, said in a post on the City Council message board Monday afternoon that the proposal from ATP leaders was "inappropriate."

In the post, Watson said that Wednesday's vote on the two items is being postponed.

Agenda items as seen on Monday, April 13. A vote on these items has been postponed, according to Austin Mayor Kirk Watson.Austin Transit Partnership website

"We have made much progress in the last few years to move this project forward," Watson said. "The proposed action to spend tens of millions for office space without a thorough analysis of alternatives would set that back."

ATP is the local government corporation formed by the City of Austin and CapMetro after voters approved the Project Connect referendum in 2020. Using the taxpayer funds collected by the City, ATP is responsible for the planning, design, and implementation of the transit program.

Since that voter approval in 2020, the project has faced cost increases, resulting in a reduction of plans in 2023.

ATP's current offices are located at 203 Colorado, under a sublease arrangement that was originally approved in 2021 for an initial term of 66 months. According to supporting documents attached to the agenda for Wednesday's meeting, ATP says it needs the additional office space to "accommodate co-located workplace arrangements with its design and construction partners, its delivery partner, and other third parties" supporting the project.

Watson is calling on ATP to look at how it can co-locate with CapMetro. "This is an opportunity for ATP to demonstrate that it is building on the partnership we have with CapMetro, saving the taxpayers money, and watching their financial backs as we build a light rail system they have told us they want," Watson said.

Board was set to consider approving $32M lease, $15M buildout Wednesday