Background

Initiated by City Council Resolutions 20220728-094 and 20220901-089, and reaffirmed by City Council Resolutions

On July 28, 2022, the City Council adopted Resolution No. 20220728-094 initiating changes to establish the criteria to be a Live Music Venue to and support the creation of a live music venue bonus and incentive program for new and existing venues. On September 1, 2022, the City Council adopted Resolution No. 20220901-089 initiating changes to develop and adopt clear land use definitions and to create a bonus and incentive program for broadly defined creative spaces. These Resolutions are being addressed concurrently. Revised definitions were approved on September 14, 2023, in Ordinance 20230914-097. Ordinance No. 20230921-103 and Resolution 20240229-060 reaffirmed City Council’s commitment to the creation of a density bonus and district program to support live music and creative space districts and the preservation and incentivization of affordable creative space.

Summary of Proposed Amendments

The proposed code amendments will create a new combining district for an affordable creative space bonus program and:

1. Is available city-wide on parcels in districts that have been rezoned to add the new combining district designation as areas that include existing or planned clusters of creative space use structures and sites.
2. Defines the following land uses as creative space uses:
   • Art Gallery;
   • Art Workshop;
   • Cocktail Lounge;
   • Performance Venue;
   • Personal Improvement Services; and,
   • Theater
3. Requires the following use requirements for developments in creative district combining districts:
   • Along at least 30 percent of building frontage along the principal street, the building must be reserved for affordable creative space uses in ground-floor spaces;
   • At least 25 percent of ground floor gross leasable area in the building must be dedicated to affordable creative space; and,
   • Development must comply with protections consistent with Existing Non-Residential Space provisions of 4-18-31 for existing creative space uses in existence on the site for at least 12 months; the developer must:
     1. Redevelop the site to replace all existing creative spaces with creative spaces of comparable size;
     2. provide current creative space operators with:
        1. notice and information about the proposed development on a form approved by the director;
        2. a payment that equals the average rent payments for six months of rental payments; and
     3. grant a creative space operator the option to lease a creative space of comparable size following the completion of redevelopment.
4. Requires an affordable lease for the the creative space operator returning to a redevelopment for ten (10) years; defines affordable creative space as the lesser of 50% of average retail space rent for the City of Austin, or a fixed ratio of annual revenues considered typical of and sustainable for the type of creative space; and limits year-over-year rent escalation to 5% or less for any creative space tenant.
5. Requires residential and hotel developments within 600 feet of an outdoor music venue and within 300 feet of a performance venue in the creative district combining district to conduct a sound assessment and disclose that there is a venue nearby and that a sound assessment has been completed to future residents when they sell or lease units.
6. Allows a development that provides on-site affordable units or pays a fee in-lieu to be eligible for 30 feet of additional height above the maximum height allowed by the base zoning, up to 90 feet in total height and exemptions from the following site development standards:
   • Minimum site area requirements
   • Maximum floor area ratio
   • Maximum building coverage
   • Minimum street side yard setback and interior yard setback
   • Minimum front yard setback
7. Modifies the applicability of Article 10 Compatibility Standards and creates compatibility requirements for a participating development as follows:
   • Exemption from Article 10 (Compatibility Standards) Subchapter C
   • A 25ft compatibility buffer including a screening zone and restricted zone for developments that share a property line with a triggering property:
   • Screening for certain objects including vehicle lights, mechanical equipment, and refuse collection areas

Review and Adoption Timeline

• June 25 - To be reviewed by the Planning Commission 
• July 18 - To be considered by City Council

Case Manager Contact

Donald Jackson, Economic Development Department, DonaldE.Jackson@austintexas.gov