R/UDAT Austin: A Call to Action

The success of R/UDAT Austin as a long-range planning tool is dependent on the creation of a Downtown Management Organization (DMO) to become Downtown Austin's advocate and manager. Goals of R/UDAT Austin established a need for an organization responsible for leadership, promotional, management and financial concerns of Downtown Austin.

The DMO should be structured to address all aspects of planning for physical improvements, economic growth and social issues affecting Downtown. Specific areas of concern related to the goals and objectives of the plan include:

• Enhanced security and cleanliness for Downtown;
• Retail promotion and marketing;
• Promotion as Austin's urban neighborhood;
• Conventions and tourism;
• Advocacy in political and community forums; and
• Focused efforts to solve human resource issues.

The DMO should respond to the changing economic and social conditions by evaluating the relative importance of its goals and objectives. Secondly, the organization, based on the evaluation, should develop strategies to achieve these goals.

RETAIL PROMOTION AND MARKETING	Retail promotion and marketing should involve the many aspects of bringing attention to retail opportunities Downtown. Implementation of a program of promotions, both joint and individual, can be coordinated through the DMO. The DMO should be responsible for the development and oversight of Downtown management initiatives, such as retail retention and retail recruitment, based on desired mix and location such as concentrating specialty retail tenants unique in the market in the area north and west of the Convention Center. It should develop a year-round marketing program and schedule of promotions.
AUSTIN'S URBAN NEIGHBORHOOD	Develop linkages with other area activity centers including the University of Texas, cultural organizations and venues, conventions and sponsors of Downtown festivals. Work with adjoining neighborhoods to ensure planned activities are both inviting to their residents and not detrimental to neighborhood needs. Provide outreach to neighborhoods adjacent to Downtown and involve them in Downtown economic life. Define and use regulations to ensure an appropriate transition of Downtown land use which protects the neighborhood scale of West and East Austin.
DOWNTOWN ADVOCATE	As the advocate for Downtown interests, the DMO reviews capital, policy and other plans by the City, County and State that affect Downtown. The organization will also be responsible for developing projects consistent with the overall plan. Typical projects include safety and security related items, increased maintenance efforts and physical improvements.
DOWNTOWN MANAGEMENT ORGANIZATION	The establishment of the organization will require a variety of funding mechanisms, which may include start-up contributions, a Public Improvement District (PID) and/or a Tax Increment Financing District (TIF). The organization will require paid staff and an operating budget. This funding should be from both public and private sectors. The City, County, University of Texas and Capital Metro are being asked to contribute, as are private businesses and land owners.
DMO START-UP CAPITAL	Start-up capital will be required for both administrative and service components of the DMO, estimated at $350,000, coming from a consortium of local financial institutions. The loan would be repaid from PID revenues.
PUBLIC IMPROVEMENT DISTRICT	The Public Improvement District (PID) has been chosen because it is currently authorized by statute and there is precedent in other Texas cities. The creation of the PID will require approval of at least 51% of the property owners of the proposed district. The authorized activities of the PID are varied. Those most appropriate for Austin include the authority to: Create and fund the DMO, and; Contract for district specific services such as increased security, street cleaning, paint and fix-up program, graffiti removal and landscaping improvements.
TAX INCREMENT FINANCE DISTRICT	A Tax Increment Finance District (TIF) is not a tax abatement but a redirection of funds from the City's general revenue account to improvements specifically within TIF boundaries. The TIF freezes the tax base at the time of establishment and designates any excess tax increments to a special fund created by City ordinance for a designated period of time.