More dense mixed-use development is on its way to downtown. This time on the property of the Hyatt on the south shore of Town Lake. See Statesman article below:
http://www.statesman.com/business/content/business/stories/08/19hyatt.html
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Hyatt buyers have big ideas for site
Company will renovate the hotel, later may add housing, restaurants and shops.
The hike-and-bike trail between Town Lake and the Hyatt Regency Austin likely will remain the same, but the building and its surrounding property could see some changes under early plans by Grand Prairie-based developer Fairfield Properties LLC, which is buying the site. The Hyatt chain would still run the hotel, Fairfield said.
By Shonda Novak
AMERICAN-STATESMAN STAFF
Friday, August 19, 2005
The latest wave of downtown development has reached prime real estate on the shores of Town Lake.
Fairfield Residential LLC, a residential developer based in Grand Prairie, is buying the 23-year-old Hyatt Regency Austin hotel on Barton Springs Road and its 9.6 acre site, which now is used mostly for parking.
Fairfield plans to renovate the hotel, adding meeting space, and eventually add housing, shops and restaurants on the site, although it could be at least two years before work might start on such a project.
"It's a special place now, and it's a parking lot," said Barry Howard, an executive with Fairfield. "This is an underutilized area that has so much potential for the commun- ity."
Fairfield is building the 240-unit Milago condominiums at the foot of Red River Street. The company also has developed a number of apartment projects in Central Texas.
Fairfield put the hotel and land under contract about 40 days ago, and Howard said the sale is expected to close soon. The Chicago-based Hyatt chain would continue to manage the hotel.
"We would want the Hyatt flag and management," Howard said. "We look forward to a long-term relationship with them."
The hotel, with 446 rooms and more than 300,000 square feet, is appraised on property tax rolls at $29.5 million. Howard declined to disclose the purchase price or Fairfield's investors in the deal.
Although Fairfield's plans are in the early stages, the vision calls for a mix of uses. One scenario would include two residential buildings, shops and restaurants, Howard said. The plans might include a marina where people could dock canoes, rowboats and kayaks.
The site includes about a quarter-mile stretch of the hike-and-bike trail, which would remain under any development plans.
Neighborhood groups have opposed development of nearby tracts, but Howard said Fairfield would share its plans with those groups once the plans were firm.
"If and when we have any type of plan for future potential land uses, we plan to meet with the neighborhood first," he said. "We understand the significance of this location."
There also could be zoning hurdles if plans exceed what's allowed under current city restrictions that apply to property along Town Lake.
Howard said the site's existing zoning allows "fairly reasonably intense commercial use," although building heights are limited to 200 feet.
For now, Howard said, developers "are primarily focusing on the hotel and its environs"
City Council Member Brewster McCracken said he endorsed Fairfield's early concept because it would "turn an asphalt parking lot" into the type of dense, mixed use development the city is encouraging downtown.
That developers spotted opportunity in the Hyatt site isn't surprising. The downtown residential boom that started four years ago has spread south of Town Lake, including a proposed 179-unit tower just west of the Hyatt at 210 Barton Springs Road.
Three projects have been announced in the past two weeks alone.
"The demand for downtown living has been hugely underestimated," said Robert Barnstone, a partner in a proposed 36-story condo tower at West Third and Bowie streets. " There is room for many more buildings."
The Hyatt is a piece of Austin history. Developed by Dallas-based Criswell Development Corp., the hotel was the city's largest and tallest when it opened in March 1982, with then-Mayor Carole McClellan — now Texas Comptroller Carole Keeton Strayhorn — as its first guest.
It was an instant success, with its owners turning a profit just 10 weeks after opening — three years ahead of projections.
Architects first designed it as a 25-story building, but later revised it downward, saying the "taller height would not have fit in in Austin."