City report endorses McKalla Place as site
Facility would be privately financed in deal for use of city land.
Setting up a City Council vote on using city-owned land for a Major League Soccer stadium, a city report Friday endorsed a North Austin site for the stadium and estimated it could generate $474 million in economic activity over 20 years for Travis County.
Precourt Sports Ventures, which aims to move the Columbus Crew SC team to Austin, followed up the city’s report by formally proposing Friday to privately finance the $200 million, 20,118-seat stadium at McKalla Place in exchange for use of the city land.
The 34-page city staff document, which came in response to a City Council resolution in March, included a third-party economic analysis that estimated “meaningful one-time and recurring economic and fiscal impacts” of $384 million to Austin in 20 years, a larger number than the Precourt’s own analysis, which projects a $354 million impact over 25 years.
“Overall, staff’s assessment indicates that McKalla Place is a suitable site for a Major League Soccer stadium,” the city report said. “There is current compli-
ant zoning, sufficient utility capacity, and daily on-site trips would be low.”
Council Member Leslie Pool, whose District 7 includes McKalla, said Friday evening she hasn’t yet read Precourt’s 189-page document.
“The staff report indicates that the property is suitable for both a stadium and a mixed-use project with housing,” Pool said. “Soccer could be an asset for Austin, but it depends on how that happens.
“My position has always been that I’m skeptical about using public land for a private stadium, and I think Austinites tend to agree with me on that.”
Precourt’s “proposed deal structure” outlines terms for use of the land south of the Domain shopping center. Some talking points include Precourt building the stadium and donating it to the city for ownership; Precourt leasing the cityowned facility for $1 per year for an initial 20-year period; and Precourt proposing the city “pay for the development of all site preparation, remediation and offsite infrastructure as may be necessary for the stadium project.”
The City Council will consider the stadium proposal at its June 14 and June 28 meetings. The council then takes a break until Aug. 9. PSV is pushing for a deal so it can move the team into a temporary Austin home at a site to be determined by next January.
“Timing is crucial,” PSV lobbyist Richard Suttle said. “We need to have an agreement with the City Council by the end of the summer.”
Owner Anthony Precourt issued a statement saying that he’s encouraged about the possibility of bringing Austin its first major-league sports franchise.
“PSV is proposing that the city would own the land, infrastructure and stadium,” the statement said. “PSV would then be responsible for all operating expenses and maintenance of both the stadium and the surrounding grounds.
“The community benefits will positively impact tens of thousands of kids and will support community causes, including $4.8 million to Foundation Communities over 25 years and an up-front donation of $500,000 to Foundation Communities’ new project at Waters Park.”
The proposal mentions the city’s public/private sector lease arrangement with the Long Center for the Performing Arts as a model.
The document draws out in detail the case for Austin as an MLS market, a vision for the $9.645 million McKalla property, an overview of America’s premier soccer league and eventually works its way to the heavy-hitting, number-crunching proposed deal structure.
Pool has suggested the site could be better used for affordable housing, creative space or parkland.
Council Member Kathie Tovo said she was in lengthy meetings and hasn’t had time to evaluate the proposal and city report. Attempts to reach Mayor Steve Adler and Council Members Ann Kitchen, Delia Garza and Greg Casar were unsuccessful.
Only nine of McKalla Place’s 24 acres would be used for the stadium. The rest would be for a music and entertainment area, a hiking trail, parking and creative space, according to the Precourt proposal.
While the PSV proposal includes a traffic mobility plan, the city’s report concludes that if the council chooses to proceed further with a stadium, a “full traffic impact analysis would be conducted in conjunction with zoning and/or site plan process.”
Although the site is close to Burnet Road and Braker Lane, close-in access to McKalla Place is virtually nonexistent.
PSV disclosed it already has spent at least $2 million on the Austin project.
The city report estimated the costs for infrastructure upgrades at nearly $16 million, including a $13 million MetroRail station. The report notes that “typically the City would request the developer to pay for these costs,” but they could be negotiated. PSV officials have told the American-Statesman that they might be willing to contribute to a rail station, though they don’t consider it a must.
Roadway improvements are already planned for adjacent apartment complexes, which would benefit access to the site along Braker and Burnet.