Austin Planning Commission approves LIPDA zoning for Sixth and Walsh mixed-use project

The Austin Planning Commission convened on July 8, 2025, to discuss a significant rezoning request for a mixed-use development at the intersection of West Sixth Street and Wall Street. The property, approximately 1.19 acres, is currently zoned CSMUCONP and CSMUVCONP, and the applicant seeks to rezone it to LIPDANP to develop around 297 residential units alongside approximately 21,000 square feet of retail space.

City staff expressed concerns regarding the proposed LIPD zoning, arguing it could set a precedent for industrial-based zoning along the West Sixth Street corridor. They recommended denying the request, emphasizing that the development, while mixed-use, does not align with the industrial nature typically associated with LIPDA zoning. Staff highlighted that previous requests for similar zoning had included provisions for community benefits, such as affordable housing, which the current proposal lacks.

During the public comment period, Tyler Grooms, the applicant, presented the project, emphasizing its design and community engagement over the past seven months. He noted that the project aims to respect the historic context of the surrounding area while providing necessary density close to downtown. Grooms proposed enhancements such as wider sidewalks and a commitment to affordable housing through a restrictive covenant, suggesting 10% of units at 50% AMI or 12% at 60% AMI.

Support for the project was voiced by representatives from the Old West Austin Neighborhood Association (OWANA), who praised the collaborative efforts that led to the proposal. They highlighted the careful scaling of building heights to respect the historic districts nearby and the commitment to pedestrian-friendly design. The association expressed confidence in the project's ability to deliver community benefits, including affordable housing and enhanced public spaces.

Despite the strong community support, the commission faced a divided discussion regarding the appropriate zoning designation. Some commissioners expressed reluctance to support the LIPDA request due to concerns about the lack of city oversight on affordable housing provisions. Others argued that the collaborative nature of the project and the neighborhood's backing warranted approval.

Ultimately, the commission voted to approve the applicant's request for LIPDA zoning with an amendment to include community recreational uses as a conditional use. This decision reflects a balance between the need for increased density and the preservation of neighborhood character, setting the stage for a potential groundbreaking in March 2026. The meeting concluded with a commitment to continue addressing zoning challenges in the area, highlighting the ongoing dialogue between developers and community stakeholders.