Awesome post and update, myBrain. I always thought that Crestview Station, Highland, Mueller, North Loop and the Triangle's close proximity to each other, and to both the North Lamar and Airport corridors, would ultimately lead to exactly what you are describing. The areas will support density on neighboring lots and blocks and eventually bleed into each other, creating a dense core North Austin. As a larger area, it really has one of the biggest capacities to add retail and residential density if there ever was such a place.
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BUILD IT. BUILD EVERYTHING. BUILD IT ALL.
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