Some East Austin Groups Hesitant About VMU
Several East Austin groups are asking the city to wait to implement the VMU ordinance until October 1. Their primary concern is that "East Austin is experiencing rampant gentrification ... and that the application of vertical mixed-use zoning will further speed the loss of affordable housing and locally-owned businesses." East Austin is certainly experiencing rampant gentrification. Property values (particularly in 78702) have risen faster than almost anywhere else in the city. However, VMU zoning has nothing to do with this. Property values in 78704 spiked a few years earlier, before the VMU ordinance. They are both pleasant, central places to live, with access to Town Lake, downtown, great parks, and fantastic restaurants. People have figured out that living in Central Austin kicks ass. Prices have gone up. VMU has nothing to do with that.
VMU does affect how East Austin and the rest of Austin are going to look in ten years. For certain lots, VMU affects what developers build, but developers would build something with or without VMU. With VMU, you get more residential units and more retail space. Without VMU, you get fewer residential units and less retail space. With VMU, some units are regulated by the city's affordability standards. Without VMU, none are. The bottom line is that with VMU there will be more space than there would be without VMU. Higher supply generally means lower prices. With or without VMU, East Austin is a lot more expensive than it was five years ago. Opting out of VMU will change the shape of gentrification, but it won't make gentrification go away. More likely, opting out of VMU will accelerate gentrification by limiting the supply of residential and commercial space.
That said, the city can help slow gentrification. The letter notes that "higher property taxes ... force our traditional businesses and residents out of the neighborhoods and the city." Higher property taxes result from higher property values, whether the property is zoned VMU or not. Opting out of VMU won't reduce property taxes - it will increase taxes by restricting supply and increasing property values. Instead, the problem of higher taxes should be addressed directly. Long time residents and businesses in East Austin should be given property tax breaks. At a minimum, their property taxes should be deferred until the owner sells the property.
UPDATE: City Council voted to extend the period neighborhoods have to opt-in, but did not grant the requested moratorium.
Images from Gina Pina on Flickr and tagged austinist_stock by Matt Wright on Flickr.
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