Waller Creek Tunnel Project

Waller Creek Tunnel Project


Red star image History

In 1998, Austin citizens approved $25 million of bond funding for the construction of improvements to Waller Creek. Since then, the tunnel project has encountered many design changes and roadblocks, and the cost has increased significantly, with the current estimated cost totaling $127.5 million (in 2006 dollars).

Mayor Pro Tem Betty Dunkerley and Council Member Sheryl Cole worked to bring the Waller Creek tunnel project back to life for its flood protection and economic development benefits. In January, 2007, they made two presentations to Austin's development and neighborhood communities outlining a project to be funded by both the City of Austin and Travis County. The proposed Waller Creek tunnel project is expected to bring 42 commercial and residential structures, 12 roadways, and more than 1,000,000 square feet of land out of the 100-year flood plain. 

Under the current proposal, the Waller Creek Tunnel would begin at Waterloo Park and run to Town Lake, totaling 5,880 feet in length. The tunnel would control floodwaters during a storm. Running 60-70 feet below Sabine Street, water from Lady Bird Lake would be pumped into the tunnel, maintaining a constant base flow in Waller Creek at all times.

The proposed funding for the project would be provided by a 20-year Tax Increment Finance (TIF) district that would run along the creek. The TIF would capture additional property tax revenue above the baseline, which would be set once the TIF is put in place. The revenue from the TIF would be used to repay almost $100 million in additional revenue bonds, which will be issued to fund the construction of the tunnel. The City of Austin would commit 100% of its property tax revenue from the TIF, and the County would contribute 50% of its tax revenue. According to projections, the City could receive about $111 million in additional property tax revenues from development along the tunnel in the first 20 years of the TIF.

Travis County would receive about $120 million in additional property tax revenue, half of which would be contributed to the project. The City would contribute the remainder of the cost for construction, operations and maintenance of the tunnel in the first 20 years. After that, the city would take over the cost of maintaining the tunnel. The project will not go forward without the support and financial commitment of the County.

Proponents for the approval of the project say the revitalization of Waller Creek has the potential to benefit the beautification of I-35, connectivity of East and West Austin and spur the development of millions of dollars in tax base previously located in the flood plain.

Red star image Waller Creek Tunnel Fact Sheet

Flooding:

  • 1915 Flooding along Waller Creek kills 35 people
  • 1981 Memorial Day flood
  • 100 year flood plain is up to 800 feet wide
  • Rampant bank erosions
  • Previous trail and creek improvements have been washed away

Pollution:

  • The tunnel will reduce the amount of trash, debris, and sediment in Waller Creek.
  • Once the tunnel is operational, the creek water will constantly circulate, thereby oxygenating the water. This should have a beneficial effect on creek flora and fauna.

Parks and Trails:

  • Presently, sections of existing parks and trails along with the creek are at risk for sever flooding and erosion.
  • Waller Creek Trail can become an extension of the Town Lake Trail, providing a pedestrian route from UT to Town Lake.

Economic Development:

  • Waller Creek Tunnel Project will remove 42 commercial and residential structures, 12 roadways and over one million square feet of land from the 100-year floodplain.
  • The Waller Creek Tunnel Project make it possilbe to link East Austin to Downtown and contribute to the revitalization of 11th and 12th Street, Robertson Hill, and the I-35 makeover.

Tunnel Structure:

  • Waller Creek Drainage area is six square miles.
  • The tunnel will be 5,880 feet long and will have a varying diameter of 22 to 26 feet.
  • Water will flow through the tunnel at 16 ft per second.
  • Water will be pumped, via tunnel, from Lady Bird Lake, resulting in a constant base flow in the creek.

City Proposal for Waller Creek Tunnel Funding:

  • City would form a TIF before December 31, 2007 to capture as much incremental added value as possible.
  • The TIF would stay in place for 20 years.
  • The City would contribute 100% of its tax increment, with the County contributing 50% of its tax increment.
  • The City would issue debt under its own authority to finance the design and construction of the entire tunnel and would also pay for the maintenance of the tunnel.
  • The City takes all the risk that development will not be sufficient to pay for the tunnel – the County has no risk, only contributes 50% of its tax increment in the TIF area and keeps the other 50%.
  • The design and construction of the tunnel and maintenance costs starting in 2013 would all be financed through the City of Austin.

On March 8, 2007, the Austin City Council held a public hearing on the proposed construction of the Waller Creek tunnel and approved action to seek the participation of Travis County as a financing partner. Subsequently, on March 27, 2007, Travis County Commissioners unanimously approved their financial partnership with the City of Austin for the construction of the Waller Creek Tunnel project. Prior to the vote, Commissioners had met with Mayor Pro Tem Betty Dunkerley and Council Member Sheryl Cole in February to go over the details of the project and for the City to address County concerns. The successful cooperation between the City and County has finally made a decade of planning for Waller Creek become a reality.

On April 5, 2007, the Austin City Council formally approved a resolution to begin the process of implementing the tax increment financing reinvestment zone and the formation of the inter-local agreement with Travis County. The City of Austin has also approved a resolution to form a citizen advisory committee to oversee the Waller Creek Tunnel project.

On April 12, 2007, the Austin City Council authorized the formation of the Waller Creek Citizen’s Advisory Committee (WCCAC), a group of local citizens dedicated to serve in an advisory and oversight capacity for the construction of the Waller Creek Tunnel project and the master plan process. The WCCAC fulfills an important role by receiving public input and assists in the identification of a vision for the area. WCCAC members include former RECA President Diana Zuniga, Bill Spelman, Dave Anderson, Dave Foster, Sam Archer, Jeb Boyt, George Cofer, Donato Rodriguez, Bill Ikard, Saundra Kirk, Ted Siff, Tracy Atkins, Ron Flores, Shea Cline, and Jean Mather. The Committee held its first meeting on May 16, 2007. The committee elected Bill Spellman as Committee Chair.

The WCCAC is reviewing the construction plans for the Waller Creek Tunnel and trail. Espey Consultants has been hired, in a joint venture with KBR, to the lead the construction of the actual tunnel, focusing on flood control and water quality. The Advisory Committee recommended that the tunnel design and engineering should minimize exclusionary uses, provide a variety of mutually compatible uses along the creek corridor, and promote the establishment of native flora and fauna by using natural materials and native landscaping, while enhancing the potential for economic redevelopment

The conceptual images below are of the tunnel profile (top), Lady Bird Lake outlet (middle, left), Waterloo Park inlet (middle, right) and the TIF area (below).

Conceptual Tunnel Profile
Tunnel Outlet - Lady Bird Lake
Tunnel Inlet - Waterloo Park
Waller Creek Map

On June 21, 2007, the Austin City Council approved an ordinance creating a tax increment financing reinvestment zone to finance the construction of flood control improvements, including a tunnel, along lower Waller Creek. The purpose of the project is to provide 100-year storm event flood protection with no out-of-bank or roadway flooding for the lower Waller Creek watershed. The reduction in floodplain area resulting from the project will significantly increase the amount of developable land area in the lower Waller Creek watershed.

On May 7, 2008, the Austin City Council selected the Roma Design Group/Roma Austin Collaborative Design Studio Joint Venture to lead the creation of the Waller Creek Master Plan for the property on lower Waller Creek between 12th Street and Lady Bird Lake. This group will develop a comprehensive vision for the development of Waller Creek during the next 20 years. Completing the Master Plan will take two years.

On June 5, 2008, the Waller Creek Advisory Committee briefed the Council on the progress of the Waller Creek Tunnel Project. They provided revised schematics of the tunnel outlet and inlets, available on pages 7, 14, and 21 of the presentation.

They also outlined the following next steps.
July 2008 – August 2008: City Council considers park mitigation concerns
January 2009 – January 2010: Design Phase of the Waller Creek Tunnel
January 2010 – June 2010: Bid/Award Project
June 2010 – August 2014: Construction
August 2014 – August 2015: Warranty Phase

During the interim period prior to completion of the Master Plan and to help ensure that future development is in keeping with community spirit, the WCCAC approved a set of interim design principles for the Waller Creek District on September 18, 2008. These guidelines provide direction to property owners planning to develop land along the Creek and apply to land within the boundaries of the Tax Increment Financing Zone, generally bordered by 12th Street to the north, Interstate Highway 35 to the east, Lady Bird Lake to the south, Red River Street, and Trinity Street to the west. The WCCAC does not set or enforce regulation; rather the committee provides community-based guidance to property owners. Property owners are not bound by the design principles, but are strongly encouraged to design projects consistent with the principles.

ROMA, as part of the downtown master plan, is working on a revised concept plan for downtown parks and open space. The vision for restoring the natural beauty of Waller Creek and creating a vibrant district that emphasizes pedestrian uses, better open spaces, and commercial activity took another step forward at the Austin City Council meeting on Thursday, October 22, 2009. The ROMA consultant team briefed Council Members on their Waller Creek District Master Plan. Part I and Part II of that plan are available on the City's web site. Recommendations in the master plan included a pedestrian promenade along Sabine Street, a connection through Palm Park over the creek, and a creek walk just below Cesar Chavez.

The draft Waller Creek District Master Plan was released in March 2010. On Thursday, June 24, 2010, the Austin City Council approved the Waller Creek District Master Plan with a minor modification to the Symphony Square tract. The purpose of the plan is to guide future public and private investment and redevelopment to achieve the community's vision for the area. 

The Master Plan identifies numerous areas for streambank stabilization and restoration of the natural character of the creek, especially in the area south of Cesar Chavez Blvd. The plan recommends a network of interconnected pedestrian and bicycle paths and trails at both creekside and at the street level. To the greatest extent possible, these are proposed to be outside the 100-year floodplain of Waller Creek after the tunnel is complete. The Master Plan also defines significant new street extensions and streetscape improvements, including the extension of the Sabine Street Promenade, and it identifies opportunities to significantly improve public park land within the Waller Creek District, including Waterloo Park, Symphony Square, Palm Park, and areas near Lady Bird Lake.

The Master Plan is available on the City's web site in the following six sections:

1. Executive Summary and Background
2. Background, Plan Recommendations, and Implementation Strategy
3. Illustrative Plan and Cross Sections
4. Development Standards - Part 1
5. Development Standards - Part 2
6. Development Standards - Part 3

The financing of the tunnel through the Tax Increment Financing structure is contingent upon redevelopment activity in the Waller Creek corridor.

Red star image August 2011 Update

On Thursday, February 17, 2011, Austin City Council approved a $49.5 million construction contract to S.J. Louis Construction of Texas to build the main segment of the Waller Creek Tunnel Project and approved an amendment to the Waller Creek Tax Increment (TIF) Reinvestment Zone that is being used to finance the Project. 

Among the items to be updated with the TIF amendment are as follows:

  • Current project design (identifying changes from the preliminary plans during the final design process);
  • Waller Creek Master Plan recommendations (and other proposed changes to the City's Comprehensive Plan, zoning ordinances, and building codes);
  • Updated project cost estimates; and
  • The most recent estimates of underlying funding sources that are anticipated to pay for the construction, operation, and maintenance of the tunnel.

The TIF amendment also included a new funding source through an increased drainage fee on Austinites' monthly utility bills, starting in 2015. Per the TIF amendment, the typical resident will pay about 40 cents a month more. This new fee will generate about $55 million during a period of 13 years help to finance the Waller Creek Tunnel Project.

The project broke ground on Friday, April 8, 2011. Crews will create an entrance shaft close to Fourth Street just west of I-35 and use specialized boring equipment to construct the approximately mile-long, 26-foot diameter tunnel. The water will then flow down a subway-size tunnel running beneth Sabine Street and into Lady Bird Lake. Digging should start toward the end of 2011 and finish in 2014.

Also, contractors are preparing an area adjacent to the mouth of Waller Creek for construction of a new Parks and Recreation Department boathouse. The new facility will replace two existing buildings that must be removed to build the storm water lagoon of the Waller Creek Tunnel. The new building will conform to current waterfront and environmental regulations. It will feature a public accessible lobby, observation deck, vending area, and restrooms along with boat storage and office space.

The total cost of construction is estimated at $146.5 million. When finished, a wide inlet in Waterloo Park will catch floowdwater during storms and send it down a 70-foot vertical drop, allowing the tunnel to carry massive amounts of floodwaters and removing almost 28 acres from the 100-year floodplain. This will allow development possibilities that are currently restricted due to the floodplain designation.

On Thursday, April 28, 2011, Council also approved a public-private partnership with the Waller Creek Conservancy to help devise a master plan for its massive Waller Creek Tunnel Project. The Conservancy was formed last year with the intention of helping the city with its plan to reclaim about 28 flood plain acres downtown. The Conservancy will enact policies for development once the $146 million project finishes, plus launch a fundraising effort to help rehabilitate the creek and create three public parks and other amenities. Both the city and conservancy have pitched in $400,000 for the master planning effort. The Waller Creek Conservancy anticipates it will raise about $60 million from private donors and foundations.

Following weeks of pre-construction surveying and site preparation work, crews will begin excavating a 30 ft. wide, 70 ft. deep entrance shaft for the Waller Creek tunnel between Fourth and Fifth Streets and IH-35 the week ending August 26, 2011.

The shaft will take approximately 4 months to build. Once the entrance shaft is complete, the crews will use specialized equipment to excavate through limestone in two directions until the tunnel reaches Waterloo Park and Lady Bird Lake where it will be connected to an inlet structure and an outlet lagoon. The final stage will be to line the tunnel with concrete. The main segment of the tunnel, along with the inlet structure and the outlet lagoon, are expected to be complete by the end of 2014.

Red star image Resources

Waller Creek Project Web Page

Waller Creek Citizen Advisory Committee

City Presentation on Waller Creek Tunnel Project

Waller Creek Tunnel Cost Projection

2007 RECA Board Resolution in Support of an Interlocal Agreement Between the City of Austin and Travis County to Construct the Waller Creek Tunnel and Related Improvements (March 6, 2007)

2003 RECA Board Resolution in Support of Waller Creek Tunnel Project (September 17, 2003)

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