AUSTIN | Projects & Construction II

[MichaelB]

Originally Posted by Louisville Lowes

I think all this is very cool to have going on in your city. My question is when all these projects are complete who going to fill all this space? I know very little about austin since i am from Louisville. I do know the U of Texas is a big ecom engine in Austin.

Hi Ya Louisville!

I work there on and off during the year. I would say where L'ville is now, in terms of Downtown housing, Austin was 10 years ago at least.... I know L'ville is changing rapidly.... and is fun to watch, I always walk around the new downtown housing sites. If you took Bardstown road and ran it thru downtown L'ville..... that is Austin. ("4th street Live" aside) So one of the bar/entertainment areas is actually in downtown. That is what makes it a good destination for nightlife and living.

For Austin folks... 4th street live is one block downtown L'ville where the city enginered a downtown entertainment district. It is a combination of large chain restaurants and bars.... part of the street has a cover to connect the two side. The road is often closed off, espectially at night. Nicely done relative to what it is.... Hard Rock, Lucky Strikes.... etc. 2nd level seems to have a hard time keeping places open. It is by the convention center.

[arbeiter]

You never hear a lot about Louisville. It's got a fair amount of older architecture than Austin, which is something I lament that we don't have. We probably have 1 single apartment building in tact before the 1930's.

[KevinFromTexas]

About traffic downtown. We went to the Red Bull Flugtag last year. And supposedly there was 85,000 people down there around Lady Bird Lake. We drove in, checked two garages which were blocked off as they were full, then found a space in the 200 Block along the east side of Congress. In all, we spent maybe 15 minutes looking for a space, probably closer to 10. Then we walked down Cesar Chavez to the South First Street Bridge and down the hill to a spot overlooking the lake. Traffic getting in wasn't really that bad. We live in South Austin and traffic on the way was just like any other day. Even in the downtown area it was maneuverable, not really a traffic jam. I've even seen worse days around 6th Street a few months back when they had the Pecan Street Festival. Anyway, even on the way home from Flugtag we just walked back and drove home. I was really surprised at how easy it was. And I know the place was packed. We got a spot sitting on the hill just down from Cesar Chavez looking out over the water. And every time everyone would yell and cheer Auditorium Shores would come alive with a roar.

If you want to see true downtown gridlock at certain times, visit San Antonio. We were there back in December for the Riverwalk Christmas lights and the place was an absolute madhouse. I don't think I've ever seen such a big traffic jam in any downtown. People were cutting in line, running red lights. It really was gridlock. It took us 45 minutes to drive 3 blocks. All the garages were full, we finally found a parking lot that was sort of on the edge of downtown. When we left it wasn't as bad. We left at around 10:45 I think and took Durango to the other side of downtown to I-10 and then back to I-35 to get around the traffic. Of course it was well worth it. The city looked amazing.

So right now I wouldn't complain much about downtown traffic in Austin. As others have said the problem is crosstown traffic. Especially north to south.

[arbeiter]

Exactly. I mean, if Austin's CBD has an employment base of around 90,000-100,000, then a big festival on a non-business day would hardly be worse. I still don't think traffic is going to be the main impediment to a new office tower. Let's suppose that a new building gets built and attracts 2,000 new employees, that's barely a few percentage points more traffic per day. Given that about 10% of the employees might use the bus, 1 or 2% might bike, and another 1 or 2 might live downtown, you're seeing a pretty negligble increase. The only noticeable increase will be at the entry and exits of the parking garage, and the potential for new pedestrians helping to keep 2nd street stores afloat during lunchtime shopping sprees...

[zx14]

You guys think the Austonian project is big how about this. Here in Lexington Ky they have built a massive snow dome over the whole city to keep us from getting any big snows anymore. It has worked great over the last ten years. Back to Austin, consider how fortunate you are now compared to the old suicide highway 183 in the 80s. Remember how far 620 used to be and now hey you can really move into town fast from there. Trafic is bad but moves better than in most big cities.

[M1EK]

Originally Posted by arbeiter

Exactly. I mean, if Austin's CBD has an employment base of around 90,000-100,000, then a big festival on a non-business day would hardly be worse. I still don't think traffic is going to be the main impediment to a new office tower. Let's suppose that a new building gets built and attracts 2,000 new employees, that's barely a few percentage points more traffic per day. Given that about 10% of the employees might use the bus, 1 or 2% might bike, and another 1 or 2 might live downtown, you're seeing a pretty negligble increase. The only noticeable increase will be at the entry and exits of the parking garage, and the potential for new pedestrians helping to keep 2nd street stores afloat during lunchtime shopping sprees...

You're looking at it from the wrong direction. The current state of transportation into downtown is bad enough to discourage CEOs from wanting to locate their offices there (some will; others will move out; but on balance, it's not good enough to induce the overall office space to increase).

As for the comments about downtown traffic, I spent 1:45 last week riding the #30 and then the #5 home from this suburban hell, and getting a ride every other day the last two weeks. The direct experience has only convinced me more that you guys don't understand suburban commuters' standards if you think it's not already bad enough to be a strong disincentive - and YES, Mopac and I-35 count. Can't exactly come into/out of downtown on Lamar most of rush hour either, especially the afternoon rush. And Guadalupe near UT is a disaster - which was responsible for most of the delay in my 1:45 bus trip, by the way, and shows why Rapid Bus won't do shit if it ever comes back off the shelf.

[DTAustin]

Originally Posted by M1EK

You're looking at it from the wrong direction. The current state of transportation into downtown is bad enough to discourage CEOs from wanting to locate their offices there (some will; others will move out; but on balance, it's not good enough to induce the overall office space to increase).

As for the comments about downtown traffic, I spent 1:45 last week riding the #30 and then the #5 home from this suburban hell, and getting a ride every other day the last two weeks. The direct experience has only convinced me more that you guys don't understand suburban commuters' standards if you think it's not already bad enough to be a strong disincentive - and YES, Mopac and I-35 count. Can't exactly come into/out of downtown on Lamar most of rush hour either, especially the afternoon rush. And Guadalupe near UT is a disaster - which was responsible for most of the delay in my 1:45 bus trip, by the way, and shows why Rapid Bus won't do shit if it ever comes back off the shelf.

Actually, what I am hearing is that a lot of CEOs want to locate downtown because it is a very conducive and synergetic work environment, but don't want to pay additional costs for rent or parking. Parking seems to be a big deal because it averages about $100 per employee per month. I'm not hearing that they are too worried about traffic because it is generally the same everywhere they think of locating their businesses. They do like that it is centrally located which balances travel times for companies whose employees live all over Austin.

Also, I didn't see anyone comment on Google's signing of a lease in the Scarborough building on 6th and Congress. They finally signed a few days ago!

[arbeiter]

Originally Posted by M1EK

You're looking at it from the wrong direction. The current state of transportation into downtown is bad enough to discourage CEOs from wanting to locate their offices there (some will; others will move out; but on balance, it's not good enough to induce the overall office space to increase).

As for the comments about downtown traffic, I spent 1:45 last week riding the #30 and then the #5 home from this suburban hell, and getting a ride every other day the last two weeks. The direct experience has only convinced me more that you guys don't understand suburban commuters' standards if you think it's not already bad enough to be a strong disincentive - and YES, Mopac and I-35 count. Can't exactly come into/out of downtown on Lamar most of rush hour either, especially the afternoon rush. And Guadalupe near UT is a disaster - which was responsible for most of the delay in my 1:45 bus trip, by the way, and shows why Rapid Bus won't do shit if it ever comes back off the shelf.

Yeah, taking the bus in Austin largely does suck. That won't change without dramatic improvements, which won't happen anytime soon. I guess we should agree to disagree, and let the future decide things. I think that there will be demand for more office space, because for every 3 people who live in a suburban part of town and commute to their tech job in another part of suburbia, there is probably 1 person who lives off Oltorf or 38th and commutes outward to William Cannon or Parmer. Those people are often highly talented professionals who would scramble to submit their resumes to a new company opening downtown. I know that there was a lot of whining back when my friend worked for that big game designer off of 360, for half the people who worked there lived in central Austin anyway.

[ATXboom]

AMD created havoc with employees when announcing their new offices... as some folks live opposite side of town.

Downtown is desirable to CEO's. Traffic is not a concern. Parking as mentioned is... but it allows for commuting from all areas of the city and it attracts talent. [being downtown]. Close to the airport as well.

CEO's can afford to have a place downtown - personal commute is not an issue either and I'm fairly certain they are not thinking about where their employees live and what their commutes are like.

[LiveattheOasis]

Hey Austinites and soccer fans, I hope you guys will support Austin's new soccer team, which will begin play in 2009. I for one will be getting season tickets, and plan on trying to make this the top supported team in the USL, and maybe even the MLS. I'm just really excited right now.

AUSTIN, Texas, Jan. 23 --
Today heralds a groundbreaking day for sports in Austin with the news that the City will soon be home to its only professional soccer franchise. The new club, Austin Aztex, will play in the United Soccer Leagues (USL) First Division beginning in the 2009 season. The Aztex will play host to teams from all across North America, including Montreal, Atlanta, Minnesota, Vancouver and Miami.

The new franchise has been acquired by Austin Football Holdings LLC, (AFH) under the ownership of British-born business entrepreneur Phil Rawlins. An Austin resident, Rawlins, is also an owner and director of Stoke City F.C., who play in the English Championship. He has held an ownership interest in Stoke City F.C. for more than seven years and brings a wealth of management experience in soccer operations.

The Austin Aztex will have an official affiliation with Stoke City F.C. which will begin immediately. The affiliation will include the English club holding their summer training camp in Austin, scouting for talent both locally and across the US, exchanging players with the Aztex and sharing best practices between the two clubs.

"I am delighted to have the opportunity to bring a top-class professional soccer franchise to Austin," said Rawlins. "Central Texas has long been a hot-bed of young soccer talent with over 35,000 kids playing the game locally. Today's announcement gives these youngsters and talented players throughout Texas something to aim for and the chance of playing soccer at the very highest level. I am very excited about the affiliation agreement with Stoke and the European exposure that gives both the Aztex and our players. My goal is to make the Aztex a community-based club that makes Austin proud."

Stoke City Welcomes the Aztex

Stoke City F.C. Chief Executive Tony Scholes welcomed the Austin Aztex with these words: "Working with someone that we know and respect like Phil Rawlins, in a booming soccer marketplace like the States, made our official affiliation an easy decision for Stoke City. We feel certain that the Aztex will be a major success both in Austin and across the U.S., and look forward to a long and mutually profitable relationship between Stoke City and the Austin Aztex."

Austin Expansion Key to USL Plans

"For the past few years, USL has been dedicated to expanding our relationships beyond the shores of North America and this announcement is another landmark moment in this quest," said USL Founder and President Francisco Marcos. "I firmly believe that Phil Rawlins understands, and is fully committed to, the concept of international relationships as the way to speed up American player development and to further the creation of thriving soccer culture in the US. Following in the footsteps of Crystal Palace Baltimore, who began play last season, and of our recently announced partnership with West Ham United, this is a significant moment in the history and growth of the USL First Division. This announcement of the USL First Division's return to Texas is also representative of the League's commitment for growth as we continue our discussions in multiple markets for additional expansion clubs west of the Mississippi."

Coach to be Announced Soon

The Austin Aztex will immediately begin their search for a club Head Coach. Parties interested in the position should hold a minimum of a UEFA "A" license or equivalent and have more than ten years of professional coaching experience. Applicants can send their resume to [email protected].

Acquisition

As part of today's news, AFH also announced that it will be acquiring the controlling interest in the Austin Stampede, an expansion team in the USL Premier Development League (PDL). The Stampede will immediately become the Austin Aztex U23 team and will compete in the Southern Conference, Mid South Division in the 2008 season.

www.austinaztex.com

Where do you think a future stadium could go?

[zx14]

Wish I could have a web cam on spring and Austonian legacy Altavida 21rio As the web cam for Stacy

[KevinFromTexas]

Click on the link for photos and more.

From the Austin American-Statesman
http://www.statesman.com/business/content/business/stories/other/01/25/0125secondstreet.html

More shops headed to Second Street
AMLI takes over management of district, plans for more growth

By M.B. Taboada, Shonda Novak
AMERICAN-STATESMAN STAFF

Friday, January 25, 2008

More shops, restaurants and parking are coming to the Second Street district downtown, bringing everything from Chinese food and Spanish tapas to sporting goods.

Many of the new stores will be on the ground floor of AMLI's new 18-story apartment tower at Second and Guadalupe streets, which will include more parking spaces for shoppers and diners in an area where street parking is hard to find during peak times.

The district, bounded by Cesar Chavez and Third streets, and Colorado and San Antonio streets, has mushroomed to 42 stores and restaurants in two years, including St. Bernard Sports, which opened in November, and Wee, a children's furniture store that opened last week.

Combined, the stores and restaurants rang up $25 million in gross sales in 2007, up from $16 million in 2006, said Steve Hallsey, chief executive of AMLI Management Co., a subsidiary of the Chicago-based development firm. That includes stores that opened during the year. Counting just stores and restaurants open more than a year, combined sales rose 4 percent.

The company also has taken over management of the district from Urban Partners, the Dallas firm that will continue to be the leasing agent.

As the biggest property owner in the district, AMLI wanted more control and more hands-on dealings with tenants, Hallsey said.

Past problems, including parking and some tenant billing issues, were not addressed "as quickly and timely as they should have been, and that prompted the change," Hallsey said. As part of the change, AMLI has hired an on-site manager and a full-time marketing director.

Frank Seely of Urban Partners, said the management change was a logical move for AMLI, now that its second apartment building has opened.

Some tenants welcomed the change.

AMLI executives "are taking positive steps in fixing the problems that arose in those first few years, and they are wonderful to work with," said Jane Vanisko McCan, owner of Shiki, a women's clothing boutique on Second Street and one of the first retailers to take a chance on the district when it opened in 2005. "They have been accommodating and supportive, always asking, 'What do you need from us?' "

McCan is about to get more company. Málaga Tapas & Bar is moving from West Fourth Street to AMLI's new building, where other future tenants include Z Pizza and Kirk Furniture, a locally owned vintage store.

Taste Select Wines and Beyond Traditions jewelry are scheduled to open early next month in the Computer Sciences Corp. building at Second and Colorado streets. Mama Fu's, an Asian food chain, plans to open its third Austin location this spring.

Seely said leases are signed or are in the works for almost all of the remaining spaces, which include the ground floors of the AMLI buildings, City Hall, and the CSC and Silicon Laboratories Inc. buildings. Overall, the district has 225,000 square feet of space.

The district has been a success, Seely said, despite the closing of a few stores, including Gomi, Octane and Shorelines Gallery.

"You'd expect about a 5 to 10 percent attrition on startup businesses," Seely said. "They have a higher risk of failure."

McCan said Shiki's sales held steady in 2007 compared with 2006, but she said she noticed a slowdown later in the year, a result in part of the national housing slump. However, she is optimistic about 2008.

"I think people are ready to not be so stressed out anymore," she said. "They're ready to ... enjoy things again and have their consumer confidence back."

McCan hopes that the city will do more to encourage shoppers by offering additional parking or allowing longer free parking in the City Hall garage. She said retailers definitely noticed a change in customer traffic when the city began charging for parking beyond two hours last spring.

Steve Shuck, owner of the Mercury Design home furnishings boutique, said he's happy to be part of the district.

"It's a really exciting place to be, and the growth opportunity now and in the immediate future, in the next two or three years, looks pretty exponential as far as Austin is concerned," Schuck said.

Given the shopping destinations new to the Austin area, Schuck said, "There isn't a place I'd rather be positioned than the Second Street district."

[ATXboom]

http://www.austintowers.net/Austin_Downtown/index.html

New Downtown Project: Quorum Lofts
January 24, 2008 21:45

It's been a while since Austin Towers has had the privilege of announcing and profiling a new downtown Austin condo development. Today, we are pleased to announce that Quorum Lofts, a new capital-area loft conversion project, has been announced with a target completion date of late 2008 or early 2009.

The new project will convert a 1964 office complex on 13th & Guadalupe -- 2 blocks West of the Capital -- into a dramatic modern
26-unit condo project. With the Capital-area location, the project (and the name) are targeting legislators and other Capital district employees who might be the excited by the idea of walking just a few hundred feet to work. The project is aiming for a crazy fast development timeline with delivery before the end of 2008. Although the developers hope to beat the rush of projects arriving in 2009, the deadline will be hard to reach unless they receiving zoning approval and begin construction quickly.

Units in the Quorum Lofts will be big - ranging from 1,450 to 2,450 square feet with prices starting near $500,000. The project will include a rooftop infinity pool and lots of nice features such as high 10 foot ceilings, granite counter tops,and jetted soaking tubs. We have posted a full profile here.



Here is additional information from the Austin Business Journal:


Local developer John Graham knows there are plenty of condo projects on the horizon for downtown Austin.But with most of the next set of big towers not scheduled for delivery until 2009, Graham sees big potential in bringing a development to market quicker -- and in a location just steps away from the Capitol.Graham's company, AustinPartners.net, hopes to get approval on a building permit in the next month for redevelopment of the property at 1300 Guadalupe St. The $10 million Quorum project slated for completion late next year would turn a three-story office building constructed in 1964 into modern, loft-style condos.Work is set to begin in January on the project that will add a fourth floor to the building and create 26 condos ranging in size from 1,450 square feet to 2,450 square feet and priced from $350 a square foot to $450 a square foot.The fourth floor will feature a spa and negative-edge, or "infinity," pool overlooking the Capitol. A glass elevator fronting Guadalupe will feature views east toward the Capitol. A second phase that would add structured parking and more units is also being considered.

[ATXboom]

http://www.austintowers.net/Austin_Downtown/index.html

Three Downtown Projects Likely Postponed
January 24, 2008 21:28 Filed in: News

For a while, 2007 seemed like the year of the downtown Austin condo project. Since last August, however, the market has changed. While most of the projects coming on the market in 2008 are sold out and many of the others are proceeding smoothly, at least three early stage projects for 2009 and beyond seem to have stalled.

As a result of slow progress, we have moved three projects into the pending stage until we receive clear confirmation that they are proceeding -- or if not -- that they have been postponed or cancelled. The delayed projects are:

5th & Congress
7th & Rio Grande
Residences at the Hotel Van Zandt

Now, with separate sections for active, pending, and cancelled projects on the Austin Towers home page, it will make it much easier for condo buyers to watch the projects that are most likely to be completed! In addition, we have adjusted the dates on a number of other projects to more accurately reflect current development timelines. If you know of any other delayed or pending projects, please drop us a note.

[ATXboom]

http://www.austintowers.net/at/condos/early_projects.html


Early Stage Projects

In addition to the late stage developments tracked in the project navigator, these 8 proposed projects may add as many as 2,500 additional downtown condo units by 2011. The combined budget for these proposed projects is in excess of $1 billion. As additional details become known, full profiles will be created on the site.


AMOA - 3rd btwn San Antonio & Guadalupe (30 Floors - 330 Feet)
Unknown Units / Construction: Unknown - Range / Notes: Austin Museum of Art Towers - would include a large new site for the museum. Proposed architect is Pelli Clarke Pelli.

Block 51 - 5th btwn San Antonio & Nueces (35 Floors - 390 Feet)
400 Units / Construction: 2007 - 2009 / Notes: Will include new Post Office. Same developer as 360. Requires variance for increased density. Units to start at $200K.

Block 52 - 5th btwn San Antonio & Guadalupe (40 Floors - 450 Feet)
500 Units / Construction: 2008 - 2010 / Notes: Also includes 100 room hotel and retail space. On site of current post office. Same developer as 360. Requires variance for increased density. Units to start at $200K.

CWS Unnamed - 200 & 300 E. Riverside (18 Floors - 200 Feet)
486 Units / Construction: 2007 - 2009 / Notes: Two 18-floor 243 unit condo towers and a third 352-unit Rental tower. Each will be 18 stories. Proposal includes extension of hike & bike trail.

Fortis Unnamed - 8th & West Ave (20 Floors - 250 Feet)
200 Units / Construction: 2008 - 2010 / Notes: Requires zoning variance to build significantly higher than 60-foot site zoning allows.

Gables Park Plaza - Lamar Blvd at Town Lake (15 Floors - 195 Feet)
100 Units / Construction: 2007 - 2008 / Notes: Mixed use includes retail and commercial. Adjacent 10-story building will have 314 rental units.

Hyatt Towers Unnamed - Barton Springs W. of Congress (19 Floors - 200 Feet)
Unknwon Units / Construction: 2008 - 2010 / Notes: 2 19 Floor Towers. Recently received city counsel approval

Lofts on Shoal Creek - 6th & West (7 Floors - 80 Feet)
80 Units / Construction: 2008 - 2010 / Notes: Mixed use project with retail and commercial. Construction planned for late 2008.

Red River - Cesar Chavez & Red River (30 Floors - 350 Feet)
450 Units / Construction: 2008 - 2010 / Notes: 3 building mixed use development will include condos, hotel, and commercial. 2 30 Floor Residential Towers. Units to start at $350K.

[Jdawgboy]

Arn't some of those heights alittle undercut. I thought that block 51 would be at least 450 feet high or at least thats what I thought. Greg do you have any specifics on height? Same for Block 52, I was under the impression that it would be over 500 feet. I almost forgot about the Cezar Chavez and Red River site, nothing has been mentioned about that project in a year.

As far as those three postponed projects, it is not so much the Austin market that is holding them up as is the national economy with the jitters on Wall Street of a recession. Alot of financing has been put on hold and despite the good position Austin is in wich some of these companies are overlooking, we will have to wait on these for awhile longer. Austin will still continue to see a large ammount of condo development downtown this year according to
Angelos Angelou who was in Austin yesterday giving a speech on Austin's economic outlook for 08. KVUE did a segment on it wich I will post the link up and a clip of the artical on the page.

http://www.kvue.com/news/top/stories/012408kvuelocaleconomy2-cb.5502cb6a.html

Frome the KVUE website:

Austin's economic forecast looking up

05:38 PM CST on Thursday, January 24, 2008

By JESSICA VESS
KVUE News

A much anticipated financial forecast from one of Austin's renowned economists is out, and it shows Austin at the top of the national list. The city’s economy is on the rise.



The economic growth for Austin started in 1990 when the technology boom hit town. Dell and IBM made Austin home and the construction began. Fast forward to 2008 and the growth is still here.

[M1EK]

Originally Posted by ATXboom

AMD created havoc with employees when announcing their new offices... as some folks live opposite side of town.

Downtown is desirable to CEO's. Traffic is not a concern. Parking as mentioned is... but it allows for commuting from all areas of the city and it attracts talent. [being downtown]. Close to the airport as well.

CEO's can afford to have a place downtown - personal commute is not an issue either and I'm fairly certain they are not thinking about where their employees live and what their commutes are like.

I've worked at four high-tech companies over the last 8 years, 3 of which I knew the CEO well enough to tell that you're full of it - tech CEOs largely want to live out by Lakeway or in the Barton Creek Country Club. These are guys who want to have a big boat on the lake on the summer weekends.

[arbeiter]

Originally Posted by M1EK

I've worked at four high-tech companies over the last 8 years, 3 of which I knew the CEO well enough to tell that you're full of it - tech CEOs largely want to live out by Lakeway or in the Barton Creek Country Club. These are guys who want to have a big boat on the lake on the summer weekends.

Well, that's four high-tech companies out of several hundred, thankfully. I am sure that not everyone who's a CEO behaves in the same way. The vast majority of billionaires and millionaires probably prefer a Mercedes or a BMW, but there's still Warren Buffett with his Ford Taurus or maverick moguls with their Priuses. The vast majority of CEO's probably are like your former boss, but that doesn't mean that he's "full of it". Be nicer, for god's sakes!

[ATXboom]

Easy there M1. I was addressing your point that they don't want to locate downtown due to traffic. We are NOT about where the wealthy desire to live. We are talking about corporate offices... not personal homes.

Most wealth in Austin lives along the Lakes, Lakeway and around Lake Austin. Good observation. You don't see many corporate offices out that way do ya?

Cheep land, tax incentive, and direct flights are really what they are looking for in regard to facility location, secondary is talent aquisition and proximity to partners/vendors. Corporations are all about making the dollar - bottom lines drive those decisions. NOT TRAFFIC to your point. If traffic deterred dtown development most major cities would be vacated in the middle. Your argument makes little sense.

So what am I full of?

[ATXboom]

http://austin.bizjournals.com/austin...ml?jst=b_ln_hl

Friday, January 25, 2008 - 10:28 AM CST
City of Austin receives top bond debt rating
Austin Business Journal

The city of Austin received a AAA rating on its general obligation debt by Standard and Poor's Rating Services.

The upgrade affects approximately $781.5 million of the city's outstanding tax-supported debt.

The rating agency also gave a AAA standard long-term rating to the city's 2008 public improvement refunding bonds.

"It's significant to note that the AAA rating is the highest that can be given by Standard and Poor's," says City Manager Toby Futrell. "It places Austin in a fiscal position many cities across our state and nation strive for, but few attain."

"This will mean lower borrowing costs for the city of Austin, and we are now one of only a few cities in Texas that have achieved a AAA rating," says Leslie Browder, Austin's chief financial officer. "This affirms that [the Austin City] Council's financial policies and budget practices are holding us in good stead, both now and for the future."

The city sells bonds to finance a major portion of its capital improvements program. General obligation bonds pay for improvements such as streets, police, fire stations, health clinics, parks and libraries, and are repaid from property taxes.

"The upgrade is based on management's maintenance of strong reserve levels, established by policy, that would likely allow the city to sustain its elevated financial condition even in the event of fiscal stresses such as the IT sector downturn that the Austin MSA (Metropolitan Statistical Area) suffered through from 2000 to 2002," says Theodore Chapman, credit analyst for Standard and Poor's.

A bond rating is a measure of a city's ability to repay its debt. Several factors are considered when assigning a rating, including the local economy and the strength of the city's financial and administrative management, as well as various debt ratios.