insufficient and, at least, got a settlement that protects affordable housing on 52nd Street.”
The City Council voted in April to provide funding to move tenants out of the buildings at 1127 and 1205 E. 52nd St., as a judge ordered. The Olenicks were held in contempt for failing to make ordered repairs but staved off a possible jail sentence when they told the judge they had agreed to sell the property.
Representatives of the buyer, Danly Properties, said plans aren’t firmed up for what will be built in the area,
but that it will be a mixture of residential and commercial development. The investor group wanted control of the Olenick properties because it owns other parcels in the same area.
Last month, the council rejected a proposed settle- ment with the Olenicks that would have paid the city $150,000 of the approximately $800,000 in outstanding fines, allowed the sale to proceed
and ensured that developers demolish all substandard buildings and construct new housing.
The 7-3 rejection, with only Council Members Jimmy Flan- nigan, Ora Houston and Ellen Troxclair in support, surprised buyer Jonathan Saad, representing Danly Properties, who said he planned to try again and better explain the deal.
The agreement approved Thursday is the same as the first version, in that Austin will recoup $150,000 of its outstanding fees. It adds provisions that anything built on the two Olenick parcels, plus two others that Saad’s investors own in the area, will be reserved for people making 60 percent of median fam- ily income, which this year comes out to $48,850 for a family of four.
The city will have the right of first refusal to purchase the property if developers decline to abide by that stip- ulation in the first 15 years of ownership and can also pay for up to 10 percent above the required affordable hous-
ing when developers request rezoning.
All of the Olenicks’ previous tenants have found other housing, some of them nearby, Casar said. Though the coun- cil approved up to $600,000 to relocate those tenants, only about $150,000 was actually spent, he said. Saad and Danly Properties also chipped in to help pay to move people.
The Austin City Council approved a settlement with the owners of two apartment buildings on East 52nd Street that received multiple code enforcement citations. One of the buildings is shown in 2013.