Council Discusses Creation of Austin Economic Development Corporation

Yesterday’s Austin Council Work Session, featured a proposal from Matthew Kwatinetz of QBL Partners for the creation of the Austin Economic Development Corporation (AEDC) .

This new entity would have three types of real estate powers:

• Lease administration

  • Managing properties on behalf of the City, which would retain the title.

• Transaction support

  • Perform the lease, sale, purchase with the direction from the city.

• Public development

  • Serve as a public real estate developer with a Texas real estate broker’s license to facilitate transactions.

The largest motivator in favor of the AEDC is the ability for the corporation to act quickly to time sensitive real estate deals. Slow processes in the past caused the city to miss such opportunities.

The AEDC would still adhere to all city procurement and disposition requirements, but the corporation would have greater flexibility to act on the market than a municipality.

While the AEDC would be separate from the city, the corporation would be governed by a Council-appointed board of directors.

The board overseeing the AEDC would be council selected and represent a specific sector such as public/private partnerships, infrastructure or transportation, real estate development or construction, urban/regional planning, finance, music industry, minority and women-owned businesses (MWBE), and workforce. Mayor Pro Tem Delia Garza recommended adding a representative for child care.

Proposed projects to benefit from the involvement of an AEDC could include: The South Central Waterfront, the Huston-Tillotson District Planning, a Cultural Trust, and an International Investment Fund.

Yesterday’s presentation is the fourth and final task regarding the Organizational Development Plan prior to City implementation actions.

Next steps require City Council to vote in favor of the formation of the AEDC, the corporation’s initial budget, and approval of an interlocal agreement between the corporation and the City.

Overall, City Council members expressed support for this initiative, first introduced in 2014. Although no formal timeline was proposed, it was mentioned to approve this process within a month.

Council requested a formal method to submit questions prior to action due to the technical and legal concerns that may impact the AEDC formation.

For questions or comments contact us at: info@binghamgp.com

//The Bingham Group Team