OCA Reports

E. 11th & 12th Street Redevelopment Project Audit

Issued: November 2009

This report presents the results of our audit of the E. 11th & 12th Street Redevelopment Project.

The City of Austin launched the Redevelopment Project to stimulate growth and encourage investment along the 11th and 12th Street corridors.  The project involves the cooperation of the City of Austin, the Urban Renewal Agency, and the Austin Revitalization Authority (ARA).  These three partners have entered into numerous financial and contractual relationships in order to accomplish the redevelopment goals.

Our audit objectives were to determine if the effort to redevelop these corridors has been successful and to identify barriers to success; to evaluate the role that ARA has played, as well as the organization’s long-term financial viability and its potential roles moving forward; and to determine the effectiveness of the City’s administration and monitoring of redevelopment efforts in the target area.

We found that while the project has been successful in reducing slum and blight conditions in the Redevelopment Area, the project has not been implemented as originally envisioned in that it has not adhered to the schedule specified in the Master Plan.  Factors contributing to project delays may include factors outside the control of involved parties, actions by ARA and the City, and the lack of a shared understanding of the roles of each involved party.  While NHCD has effectively monitored ARA’s expenditures, NHCD’s lack of a project coordinator to guide the Redevelopment Project may also have contributed to delays.

Additionally, liquidity challenges, reliance on the City for income, and inconsistent financial planning all impact ARA’s long-term viability.  While responsible parties have taken steps to include the community in redevelopment efforts, ARA’s financial condition and need to pursue viable projects, combined with delays and market conditions, have resulted in community dissatisfaction with some proposed development and with slow progress in the Redevelopment Area.

We have offered nine recommendations that we believe will improve the Redevelopment Project and assist the City Manager’s office and Council going forward.  Management has concurred with eight recommendations and partially concurred with one recommendation proposing a modified plan for implementation of that recommendation.

Download the entire text of our  E. 11th & 12th Street Redevelopment Project Audit in Adobe Acrobat. You will need Adobe's Acrobat Reader to view these files. Or request a hard copy of this audit report, No. AU09116, by submitting this audit report request form.

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