BG Reads | News You Need to Know (February 23, 2021)
[BINGHAM GROUP]
NEW // BG Podcast EP. 130: Austin Crisis Update with Selena Xie, President, Austin EMS Association
Today’s episode (130) features Selena Xie, President of the Austin EMS Association. Since Sunday, the energy and weather crisis has impacted all parts of Austin, and EMS medics have been on the frontlines of it all. Selena shares perspectives from what she and her members have seen in that time.
You can listen to this episode and previous ones on Spotify, Apple Podcasts, and SoundCloud. Please like, link, comment and subscribe!
HEARINGS/MEETINGS
Travis County Commissioners Court Regular Meeting Today @9AM
The Austin City Council will next meet Thursday @10AM for a Special Called Meeting
THE 87TH TEXAS LEGISLATURE
Thursday, 2.25.2021 @ 9AM
The House Committees on State Affairs and Energy Resources will hold a joint public hearing to consider the factors that led to statewide electrical blackouts during the recent unprecedented weather event; the response by industry, suppliers, and grid operators; and changes necessary to avoid future power interruptions.
LINK TO FILED HOUSE BILLS (2,289)
[AUSTIN METRO]
Austin Water has restored service to residents, but broken pipes remain a big issue (KUT)
Areas of Northwest and Southwest Austin that are still under a boil-water notice could be in the clear by Tuesday afternoon, Austin Water Director Greg Meszaros said at a news conference Monday.
“We have collected samples in areas yet to be lifted from the boil-water notice,” he said. If samples come back clear, Austin Water should be able to lift the boil notice Tuesday afternoon.
Water service and pressure have been restored to all customers, Meszaros said, adding that the water-treatment plants are running well and producing “abundant” amounts of water.
There are still isolated areas of customers who don’t have water, however. Those outages are likely due to water main breaks caused by the freeze, he said. Water must be turned off to make repairs at apartment complexes that have had pipes burst, for example.
“The biggest remaining task we have in the recovery of the water system is repairing water main breaks,” Meszaros said, adding there were more than 100 water main breaks and likely tens of thousands of private breaks at homes and businesses.
“I think as we look back on this event, we’re going to find that it was the preponderance of all of these public and private breaks that was really the main cause of our system draining out of water,” he said.
He said crews are working 24 hours a day to get everything fixed… (LINK TO STORY)
'I'm going to stay single-mindedly focused.' Austin Mayor Steve Adler speaks on disaster recovery (KVUE)
Though it may be over now, much of Texas, including the city of Austin, is still reeling from the effects of last week's major winter weather event.
From losing power to losing water to going under a boil water notice, it's been tough for a lot of Central Texans.
Austin Mayor Steve Adler joined KVUE Monday morning to talk more about the City's response to the crisis… (LINK TO STORY)
Travis County looks into complaints of price gouging on water, lodging (Austin American-Statesman)
Travis County Attorney Delia Garza said her office has received complaints about possible price gouging for water, eggs, towing services and lodging during last week's winter storm.
Garza told the American-Statesman the complaints have been forwarded to investigators in her office and that, if necessary, the office would pursue civil penalties.
"We are prioritizing educating people over filing lawsuits," Garza said. "We intend to reach out to folks and make sure they know what the law is."
That stance is similar to the messaging Garza used in campaigning for the job last year, when she spoke of wanting to help reform the criminal justice system by de-emphasizing incarceration and heavy fines.
The price gouging complaints followed an order last Tuesday from Travis County Judge Andy Brown prohibiting businesses from demanding, selling or leasing goods or services at exorbitant or excessive prices. Brown also ordered businesses to minimize electricity use for nonessential operations.
Garza said her office received five voice messages and 16 emails, including 11 for water violation complaints tied to a Saturday order from Brown prohibiting car washing services… (LINK TO STORY)
End of an era: Brackenridge hospital coming down (Austin Business Journal)
Demolition crews are removing a longtime fixture of the Austin skyline: the old Brackenridge hospital.
Although it most recently went by the name University Medical Center Brackenridge, this old tower has long been affectionately known as "Brack." The tower, which for decades separated downtown from the University of Texas campus just to the north, was vacated in 2017 when the new Dell teaching hospital opened across the street.
This part of downtown is poised to be redeveloped with more shops, office towers and more.
Brackenridge was the oldest public hospital in Texas, first opening in 1884 — though the towering structure that is being demolished today came online in the 1970s, according to the Texas State Historical Association… (LINK TO STORY)
Offices out, more apartments in for Urban East development plans on East Riverside (Austin Business Journal)
Instead of a mix of offices and residences, a long-planned East Riverside project has undergone a pandemic pivot and been reimagined as an entirely multifamily development, with half of the units designated as affordable housing.
Urban East, from Austin-based developer River City Capital Partners, will now have 518 apartments at the site, which is located in a federally designated opportunity zone at 6400 E. Riverside Dr.
Plans were originally unveiled in 2018 for 100,000 square feet of office space and 375 residential units, along with about 20,000 square feet of retail space.
But, in the early days of the Covid-19 pandemic, investors "got pretty nervous about building a new office building" and pulled out, said Cory Older, president of River City Capital.
Older said he and River City Capital CEO Peter Kehle also got nervous about building a big office building "in the wake of the pandemic.
Urban East has been recapitalized with Battery Global Advisors, a Boston-based investment manager, as the lead investor and is expected to break ground this week, Older said. The project is scheduled to deliver the first 381 units by 2023, with construction set to begin on the other 137 in the first quarter of 2022 in a second phase. Amenities are expected to include two pools and a bowling alley. Apartment sizes will run from 550 square feet to more than 1,200 feet, and 80% of the apartments will be one-bedroom units between 750 to 800 square feet.
Project partners also include the Housing Authority of the City of Austin and LDG Development. Financial details were not disclosed. Bartlett Cocke General Contractors will lead construction, while Matador Project Solutions will handle construction management. Davies Collaborative designed Urban East, while Texas Capital Bank led the financing.
The opportunity zone designation is an intriguing element for investors looking to make long-term real estate plays. Created as part of the 2017 Tax Cuts and Jobs Act to spur investments in low income areas, opportunity zones offer significant capital gains tax cuts and delays for project investors.
The reimagined Urban East would also add more affordable housing supply to the city, with 50% of the units reserved for those making 80% of the area median income. In Austin, median income as of April 2020 was $97,600 for a four-person household, according to city of Austin figures.
“With the extensive growth on East Riverside Drive, including the nearby relocation of Oracle’s corporate headquarters and the new Tesla Gigafactory, there is a great demand for quality, affordable and sustainable housing that will be offered at Urban East,” said Michael Gerber, president and CEO of the Housing Authority of the City of Austin, in a statement. “Of particular importance is the fact that both affordable and market rate units will have the exact same high-end finish out, which is fairly unusual in this market.”
Urban East has been recapitalized with Battery Global Advisors, a Boston-based investment manager, as the lead investor and is expected to break ground this week, Older said. The project is scheduled to deliver the first 381 units by 2023, with construction set to begin on the other 137 in the first quarter of 2022 in a second phase. Amenities are expected to include two pools and a bowling alley. Apartment sizes will run from 550 square feet to more than 1,200 feet, and 80% of the apartments will be one-bedroom units between 750 to 800 square feet.
Project partners also include the Housing Authority of the City of Austin and LDG Development. Financial details were not disclosed. Bartlett Cocke General Contractors will lead construction, while Matador Project Solutions will handle construction management. Davies Collaborative designed Urban East, while Texas Capital Bank led the financing.
The opportunity zone designation is an intriguing element for investors looking to make long-term real estate plays. Created as part of the 2017 Tax Cuts and Jobs Act to spur investments in low income areas, opportunity zones offer significant capital gains tax cuts and delays for project investors.
The reimagined Urban East would also add more affordable housing supply to the city, with 50% of the units reserved for those making 80% of the area median income. In Austin, median income as of April 2020 was $97,600 for a four-person household, according to city of Austin figures.
“With the extensive growth on East Riverside Drive, including the nearby relocation of Oracle’s corporate headquarters and the new Tesla Gigafactory, there is a great demand for quality, affordable and sustainable housing that will be offered at Urban East,” said Michael Gerber, president and CEO of the Housing Authority of the City of Austin, in a statement. “Of particular importance is the fact that both affordable and market rate units will have the exact same high-end finish out, which is fairly unusual in this market.”
Urban East has been recapitalized with Battery Global Advisors, a Boston-based investment manager, as the lead investor and is expected to break ground this week, Older said. The project is scheduled to deliver the first 381 units by 2023, with construction set to begin on the other 137 in the first quarter of 2022 in a second phase. Amenities are expected to include two pools and a bowling alley. Apartment sizes will run from 550 square feet to more than 1,200 feet, and 80% of the apartments will be one-bedroom units between 750 to 800 square feet.
Project partners also include the Housing Authority of the City of Austin and LDG Development. Financial details were not disclosed. Bartlett Cocke General Contractors will lead construction, while Matador Project Solutions will handle construction management. Davies Collaborative designed Urban East, while Texas Capital Bank led the financing.
The opportunity zone designation is an intriguing element for investors looking to make long-term real estate plays. Created as part of the 2017 Tax Cuts and Jobs Act to spur investments in low income areas, opportunity zones offer significant capital gains tax cuts and delays for project investors.
The reimagined Urban East would also add more affordable housing supply to the city, with 50% of the units reserved for those making 80% of the area median income. In Austin, median income as of April 2020 was $97,600 for a four-person household, according to city of Austin figures.
“With the extensive growth on East Riverside Drive, including the nearby relocation of Oracle’s corporate headquarters and the new Tesla Gigafactory, there is a great demand for quality, affordable and sustainable housing that will be offered at Urban East,” said Michael Gerber, president and CEO of the Housing Authority of the City of Austin, in a statement. “Of particular importance is the fact that both affordable and market rate units will have the exact same high-end finish out, which is fairly unusual in this market.”
Affordable housing has been a major priority for the city, which is creating an economic development corporation to address issues such as homelessness-related efforts, preservation of creative and cultural venues and affordable housing projects… (LINK TO STORY)
[TEXAS]
Texas energy crisis a ‘black eye’ on business-friendly reputation, state’s top accountant says (KXAN)
Nathan Byman runs a small manufacturing company in Austin with a team of 12 employees.
Last Sunday, with no warning or communication from state or local energy officials, Wolfram Manufacturing lost power.
Even after the lights came back on later in the week, Wolfram wasn’t allowed to operate due to an order by the City of Austin and Travis County limiting commercial energy consumption.
“It’s hard to put in words how detrimental this is going to be,” Bynam told KXAN. “There are going to be a lot of folks who are going to be scared to manufacture here.”
Texas leaders have long championed the state as business-friendly and praised companies — like Oracle, HP, and Tesla — that ditched California for the Lone Star State.
But last week’s storm, and the state’s perceived flatfooted preparation, stands to jeopardize that reputation, according to Texas Comptroller Glenn Hegar, the state’s top accountant.
“Unfortunately, the last few days has been a black eye on the reputation of Texas,” Hegar told state lawmakers on Monday. “The ultimate path of our economy it’s important on what we do this legislative session on this issue to restore confidence in businesses and people who want to come to the state for economic opportunity.”
Chip manufacturers like Samsung and NXP, some of the City of Austin’s largest energy consumers, remained closed for production on Monday in the wake of last week’s winter storm crisis, even as power was restored to nearly every residential home in the city.
The pause to production could cost some manufacturers in Austin millions, acccording to the Austin Business Journal.
On Monday afternoon, a Samsung spokesperson said power had been restored to Samsung Austin Semiconductor and efforts were being made to resume operations as soon as possible.
Steven Pedigo, a professor at the University of Texas Lyndon B. Johnson School of Public Affairs and an economic development expert, said the business community isn’t only concerned about the grid, but also exponential growth left unaddressed by state leaders.
“That’s the challenge that we face today, that if we’re not willing to address our housing, our transit, our infrastructure, all those types of things now, man, the growth starts to control us,” Pedigo said… (LINK TO STORY)
Hypothermia deaths in Texas mount amid severe weather conditions (Market Watch)
With the snow and ice clearing in Texas after days of unusually cold temperatures, bodies are being found of people who likely froze to death as they struggled to stay warm after electricity was cut to millions of homes
Of the around 70 deaths attributed to the snow, ice and frigid temperatures nationwide, more than a dozen were people who perished in homes that had lost their heat, and most of those were in Texas. They include an 11-year-old boy who died in his bed in Conroe, near Houston, and two older men found dead in their homes in the small West Texas town of Buffalo Gap in Taylor County.
Taylor County Sheriff Ricky Bishop said his office received many calls in recent days asking for checks on friends or family members who may be suffering due to the power outages.
“I can think of probably one point in one hour we probably got 10 of those calls,” said Bishop, adding that some of the county’s roads were covered in 4 foot (120 centimeter) deep snow drifts.
Hypothermia can set in if the body loses heat faster than it can produce it and if it falls below about 95 degrees Fahrenheit. Normal body temperature is around 98.6 degrees…(LINK TO STORY)
$34 million, private planes, cars and housing allowances: Here’s how much UT-Austin is paying football coach Steve Sarkisian (Texas Tribune)
Steve Sarkisian, the new head football coach at the University of Texas at Austin, is guaranteed to make at least $34.2 million throughout his six-year contract, according to a UT Board of Regents meeting agenda.
The board is expected to approve Sarkisian’s salary Thursday. Sarkisian, who was hired Jan. 2, will make $5.2 million in his first year as coach and is guaranteed a $200,000 raise each year. Sarkisian’s compensation also includes two dealership cars, 20 hours of private airplane use per year and a $250,000 relocation and temporary housing allowance. He will additionally receive a one-time payment of $1.2 million if he is still head coach on December 31, 2024. All of these funds will come from Texas Athletics, whose budget includes revenue from multiple sources including licensing, broadcasting rights, ticket sales and donors, according to university spokesperson J.B. Bird.
“Our entire community benefits from a healthy and successful athletics program, and naming Steve as our coach infuses our football program with the necessary guidance and expertise to drive further success,” UT-Austin President Jay Hartzell said in a statement when Sarkisian was hired.
The board will also approve the guaranteed compensation of coordinators and assistant football coaches, most of which exceed $1 million. Offensive coordinator Kyle Flood’s salary will start at $1.1 million and increase by $75,000 each year during his three-year contract. Special Teams Coordinator Jeff Banks will make $1 million in his first year and an additional $50,000 for the remaining two years of his contract. All assistant coaches except receivers coach Andre Coleman and running backs coach Stan Drayton are also guaranteed one dealership car and a $29,000 relocation and temporary housing allowance.
Sarkisian’s starting salary is over $5 million more than former head coach Tom Herman and $10 million more than former head coach Charlie Strong, according to the Dallas Morning News.
The University is still paying Herman $15 million over the next three years as part of his termination contract. The money to buy out Herman’s contract will come from Texas Athletics’ multiple sources of revenue, but no money will come from the university’s budget, Bird said… (LINK TO STORY)
[OFF PLANET]
NASA’s Mars Perseverance Rover Provides Front-Row Seat to Landing, First Audio Recording of Red Planet (NASA)
New video from NASA’s Mars 2020 Perseverance rover chronicles major milestones during the final minutes of its entry, descent, and landing (EDL) on the Red Planet on Feb. 18 as the spacecraft plummeted, parachuted, and rocketed toward the surface of Mars. A microphone on the rover also has provided the first audio recording of sounds from Mars… (LINK TO STORY)