City of Austin signs partnership agreement with USDOT for future mobility projects

CBS Austin
by Ricardo Lewis
February 28, 2023, 10:39 PM CST

AUSTIN, Texas — The city of Austin signed a partnership with the U.S. Department of Transportation (USDOT) for future mobility projects. This is the first local-federal partnership that will look at funding strategies to support the city's mobility projects. City leaders say the partnership could bring in billions of dollars for the city.

The "Emerging Projects Agreement" with the USDOT will support the transportation and infrastructure projects happening in Austin. Mayor Kirk Watson said the agreement will help the city be more innovative, nimble, and efficient.

Austin's mayor put pen to paper on Tuesday to explore opportunities for project planning and financing for multiple transportation projects throughout the city.

“This is the first agreement of its kind that the U.S. Department of Transportation has entered into with a city. A big part of that is because Austin right now has a whole lot going on. We have some generational projects in place," Watson said.

Working in partnership with the USDOT's Build America Bureau, city officials will explore innovative approaches that can help advance the city's mobility projects.

“People look to Austin for a variety of different things. Everything from our live music and barbeque to our ability to do infrastructure well and when you have this many projects that we have to get well, it’s wonderful to have a strategic partner with the Build America Bureau," the mayor said.

Morteza Farajian is the Executive Director of the Build America Bureau. He said the agreement will help move projects forward like Austin's $7 billion Project Connect, safety and mobility improvements, the I-35 Cap and Stitch Program, and help with the expansion of the Austin Bergstrom International Airport.

“This agreement as you said is a unique agreement because we are trying to roll up our sleeves and work together early in the process to find an effective and efficient way to move this program of projects," Farajian said.

The Bureau has been speaking with Austin mobility leaders since 2022. To enter the agreement, Farajian said the city had to have projects that were more than $5 billion and have multiple projects, with multiple stakeholders.

“I saw the momentum here, I saw that the city was ready to move forward," Farajian said.

He added that the city of Austin's mobility projects touches on strategic goals the USDOT has which include equity, safety, innovation, and transit-oriented development. The Bureau has more than $100 billion in lending capacity with low-interest rate loans that could be used for the city's mobility projects. Mayor Watson said $25 billion will be spent over the next several years on infrastructure.

“We’re going to work very hard not to leave any money on the table particularly money that if we borrow money, it’s at a much cheaper interest rate so we can save the taxpayers' money," Watson said. “It will not meet my concept of perfection; it probably won’t meet your concept of perfection. But it will be so much better than what we have from the congestion standpoint, from a transit standpoint, from a beautification standpoint, and from tying this community together when it has divided it for decades.”

The Bureau and Austin mobility leaders will hold a workshop in the coming months to speak with stakeholders, review project needs, and begin the process of looking at potential funding solutions. It's still unclear how much federal money the city of Austin will get through this agreement.