Development on old rail yard hits snag

Published 12:00 am Tuesday, August 20, 2002

Austin Transportation's plans to develop on the old railroad yard have hit a small bump.

A $50,000 to $60,000 bump, to be exact.

Mark Crumb, of Austin Transportation, attended Monday's Finance/Personnel Committee meeting to review the developer's agreement for what he plans to do with the property.

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Currently, the agreement contains a provision which says the developer will help pay for an extension of Fourth Avenue NE -- an extension that is only to be used as an emergency railroad crossing during floods -- and the extension of the utility services along the road. Fourth Avenue NE would make the northern border of Crumb's property.

Crumb says this part of the agreement is news to him as it wasn't brought to his attention until last week. "Two years ago, it was mentioned in passing that the city would need to open Fourth Avenue in the future, but I didn't know I would have to pay for it," Crumb said. "I don't need Fourth Avenue … times for me are tougher all of a sudden because I need $50,000 to $60,000 more than I thought. I'm in a real cash crunch."

Craig Hoium, director of community development, contended the clause always has been part of the contract and Jon Erichson, public works director, said the owner of the property to the north has agreed to pay for half of the costs involved with extending Fourth Avenue NE.

Dick Chaffee, chair of the Finance/Personnel Committee and Dick Lang, member of the committee, asked Hoium and Erichson if there was any way the project could be postponed a few years until Austin Transportation recovers from the cost of developing and moving. "He says he's not opposed to it, but give him a few years when he's back on his feet again," Lang said.

Lang also said it was vital Fourth Avenue NE be extended because of the safety issues involved. Therefore the city should construct the extension, especially since "the city already budgeted $70,000 for the project," he said. Though he acknowledged $70,000 wouldn't create the most high-tech road, Lang said it would be a start.

Chaffee advised Crumb to discuss the agreement with the Public Works Department and "try to tweak it back down."

Amanda L. Rohde can be reached at 434-2214 or by e-mail at amanda.rohde@austindailyherald.com