This project, which was an old electric plant, has been underway for 5 years when we visited it. It will be a mixed use, condo, hotel and retail area when it is completed.
Clean up has been very intense on this 7-acre brownfield site. It was an hydro-electric power plant, with water from the Colorado River. There where 4 turbines, long since removed that weighed a whopping 70 tons each, and where mounted on separate concrete platforms. These have yet to be removed and represent a significant cost. The 2 boiler rooms looked to be around 4 stories high, and have a fascinating industrial design to them.
Some other necessary remediation: PCB's, used to raise the boiling temperature of oil; and asbestos, in many of the floors and windows.
The finance used a $110 million construction loan with $40 million of equity. The owner hopes to open in a few years, as a unique entertainment and mixed use venue. He has saved the original crane, which runs the length of the building; the original facade', which will be cleaned and left in its existing condition; and will open the rest of the multi story space up to natural light at that time.
The long term nature of the remediation on this site (5 years and still not done) and the changing capital markets make this project quite challenging. The owner mentioned that there will be some historic tax credits to smooth the way however. These are essentially a tax credit that can be taken by an investor in the project, and are usually sold off at 80c on the dollar to help cashflow.
This site is very exciting as its location in the heart of downtown Austin, and its historic nature will be wonderful for the city.
The owner lectures us on some of the finer points on the project
Project Illustration
One of the boiler rooms
Turbine platform - still to be removed
The historic facade'
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