Mueller Redevelopment Update Thread

deleted; posted before completion

Originally Posted by papertowelroll

Mueller has really taken a long time to get built out, by Austin standards, and I don't love all of what they've done, but some of the most recent parts by Aldrich St are very nice. And damn the park is fantastic, honestly Zilker ought to look like that.

Regarding the Mueller build-out, maybe someone on this forum can give me a straight answer, which I haven't been able to get otherwise, not wanting to over-pursue it and appear as a crank. Although, to be honest, I'm not that sure of getting a straight answer on this forum due to urbanist bias, but I recognize there are many knowledgeable people here.

Let me phrase my question as a statement and please correct my assumptions as needed:

My guess is Mueller won't be built-out until sometime in the 2030's because, as per the Master Development Agreement that is the deadline for Cattelus and the COA to settle up accounts in the Final Accounting.

Cattelus is, by sometime in the 2030's, supposed to give the COA a slice of the profits (probably very tiny as per standard creative accounting rip-offs) they have made in developing Mueller.

I would guess Cattelus has made at the very least several hundred millions of dollars in profits over the years on developing the essentially free land.

Since I assume they are reluctant to part with any money whatsoever (and I doubt if the COA really cares) this will be dragged on another 10 years of so.

[H2O]

Originally Posted by smallfrie

Regarding the Mueller build-out, maybe someone on this forum can give me a straight answer, which I haven't been able to get otherwise, not wanting to over-pursue it and appear as a crank. Although, to be honest, I'm not that sure of getting a straight answer on this forum due to urbanist bias, but I recognize there are many knowledgeable people here.

Let me phrase my question as a statement and please correct my assumptions as needed:

My guess is Mueller won't be built-out until sometime in the 2030's because, as per the Master Development Agreement that is the deadline for Cattelus and the COA to settle up accounts in the Final Accounting.

Cattelus is, by sometime in the 2030's, supposed to give the COA a slice of the profits (probably very tiny as per standard creative accounting rip-offs) they have made in developing Mueller.

I would guess Cattelus has made at the very least several hundred millions of dollars in profits over the years on developing the essentially free land.

Since I assume they are reluctant to part with any money whatsoever (and I doubt if the COA really cares) this will be dragged on another 10 years of so.

OK - I'll take the bait. The Mueller Master Development Agreement (MDA) was signed in December 2004. It was always intended to be a 20 year build-out. The MDA expires in just under two years. All final Lookback Payments have to be settled within that term, although there may be some administrative close-out activities that may take a year or two at most, I would think (based on some related past experience).

The accounting is closely monitored by both entities of the partnership, but is kept confidential to maintain market competitiveness. Until the Final Lookback accounting is complete, how much Cattelus has made, and how much the City's share of the profits are, will not be public and any assumption of profits is merely conjecture.

If you don't believe my urbanist bias, you can do your own research here: https://www.austintexas.gov/page/mue...ment-agreement

Originally Posted by H2O

OK - I'll take the bait. The Mueller Master Development Agreement (MDA) was signed in December 2004. It was always intended to be a 20 year build-out. The MDA expires in just under two years. All final Lookback Payments have to be settled within that term, although there may be some administrative close-out activities that may take a year or two at most, I would think (based on some related past experience).

The accounting is closely monitored by both entities of the partnership, but is kept confidential to maintain market competitiveness. Until the Final Lookback accounting is complete, how much Cattelus has made, and how much the City's share of the profits are, will not be public and any assumption of profits is merely conjecture.

If you don't believe my urbanist bias, you can do your own research here: https://www.austintexas.gov/page/mue...ment-agreement

Thank you H2O for replying and clearing up at least one of my assumptions. I had read some of the MDA about a year ago and mis-remembered the date, thinking around 2034 instead of 2024. Keep in mind I am just a curious citizen.

Perhaps you can answer a couple of more questions. Have any Lookback Payments been made to date? What happens if in 12/24 there is undeveloped land or partly developed land remaining?

I remain deeply skeptical that the COA will received any more than a pittance after the MDA is completed.

[Sigaven]

Originally Posted by Riverranchdrone

It's a pretty cool building. Love the 3 level walkways on the upper floors.
[IMG]DJI_0665 by Jason Luebbe, on Flickr[/IMG]
[IMG]DJI_0655-HDR by Jason Luebbe, on Flickr[/IMG]

Shame they are doing type V construction, you'd think the build-out for condos would be higher quality

[H2O]

Originally Posted by Sigaven

Shame they are doing type V construction, you'd think the build-out for condos would be higher quality

It's actually a hybrid Type II podium / Type V, which is very common for mixed-use mid-rise development. The Type II construction actually extends up to the pool deck and open walkways. Keep in mind that Pearlstone's target market is attainable housing for middle incomes rather than luxury. Using more expensive construction types when it is not strictly necessary by code would be counter to that goal.

[H2O]

Originally Posted by smallfrie

Thank you H2O for replying and clearing up at least one of my assumptions. I had read some of the MDA about a year ago and mis-remembered the date, thinking around 2034 instead of 2024. Keep in mind I am just a curious citizen.

Perhaps you can answer a couple of more questions. Have any Lookback Payments been made to date? What happens if in 12/24 there is undeveloped land or partly developed land remaining?

I remain deeply skeptical that the COA will received any more than a pittance after the MDA is completed.

I can't say for certain if lookback payments have been made, but since they are well past 75% infrastructure completion, they should have been by now. The only infrastructure remaining that I can think of are the open spaces around the school and tower. There are three blocks remaining to be developed. I don't know if Catellus has completed takedown of them, but I know at least one of the blocks is in design. If Catellus has not taken them down by December 2024, the City would be free to sell them directly to a third party developer. The MDA only covers horizontal development, ie. takedown of property and construction of infrastructure. It is possible that Catellus will takedown all of the properties and sell them to third party developers before the MDA expires, but the third parties will not have completed the vertical construction on them by then. Likewise, redevelopment of early phases such as the Regional Retail Center could occur in the future after the MDA expires just like any other development.

[natrius]

Originally Posted by H2O

There are three blocks remaining to be developed. I don't know if Catellus has completed takedown of them, but I know at least one of the blocks is in design. If Catellus has not taken them down by December 2024, the City would be free to sell them directly to a third party developer.

Does that apply to the supposed UT Health Research Campus that never really materialized? The land is still owned by the city according to TCAD. I'm hoping UT can't just sit on that empty land and giant parking lot forever so it can be put to productive use.

[H2O]

Originally Posted by natrius

Does that apply to the supposed UT Health Research Campus that never really materialized? The land is still owned by the city according to TCAD. I'm hoping UT can't just sit on that empty land and giant parking lot forever so it can be put to productive use.

It does not include that tract. It IS owned by the City and is leased to UT. They have missed multiple deadlines to construct additional buildings on that campus and are in jeopardy of losing the lease. I don't know where those negotiations stand at the moment. If the lease is vacated, the City would have an opportunity to sell that land to a third party to develop.

[Urbannizer]

Mueller residents sketch big vision for one of neighborhood's last big holes

A nonprofit wants to raise a community-oriented development of $400 million to $500 million on an undeveloped plot of land in Austin’s Mueller neighborhood. There is just one catch: they need a master developer and other partners to bring the project to fruition. Read more about the ambitious plans and why these regular Austinites want to influence the development process.

[Urbannizer]

Originally Posted by Urbannizer

1401 Philomena

Complete


Rogers-O’Brien via LinkedIn

[Sigaven]

Handsome building!

[H2O]

Yeah, not half-bad for tilt wall concrete!

[427MM]

The surface parking tho... So bad, ready for all of it to be redeveloped.

[chinchaaa]

Originally Posted by 427MM

The surface parking tho... So bad, ready for all of it to be redeveloped.

i think that lot belongs to the property next door

[SproutingTowers]

Walked around Mueller last weekend to see the changes.

[DanielG425]

Mueller is a very slept on slice of Austin. I'm loving how quickly the whole area is urbanizing. With that being said, however, the area desperately needs shade - plant more trees! No wonder it's always empty.

[atxsnail]

Originally Posted by DanielG425

Mueller is a very slept on slice of Austin. I'm loving how quickly the whole area is urbanizing. With that being said, however, the area desperately needs shade - plant more trees! No wonder it's always empty.

When do you find it to be empty? In my experience it's one of the few places outside of downtown, UT/west campus, and pockets of south Austin where you can regularly expect pedestrian activity. Admittedly, Mueller is a big place so I'm sure there are sleepier sections but it's usually pretty busy in my experience.

[chinchaaa]

Originally Posted by DanielG425

Mueller is a very slept on slice of Austin. I'm loving how quickly the whole area is urbanizing. With that being said, however, the area desperately needs shade - plant more trees! No wonder it's always empty.

I know. I wish it was a bit more affordable because it seems like one of the best neighborhoods in the city to raise a kid.

[Global]

Originally Posted by DanielG425

Mueller is a very slept on slice of Austin. I'm loving how quickly the whole area is urbanizing. With that being said, however, the area desperately needs shade - plant more trees! No wonder it's always empty.

Actually Mueller has done a better job than most with planting plentiful street trees. It's just that they are young. Give it 20 years and there will be plenty of shade.