Great downtowns don’t just happen. They are built by people and organizations that care deeply about making downtown welcoming, vibrant and vitally important to the culture of the city. And this year, people flocked back to downtown Austin and organizations met this demand with exciting new developments, businesses, venues and events.

Downtown’s post-pandemic recovery has been strong, and our urban core continues to be a solid investment. Austin leads the nation in people returning to work, with more than 62% of workers in the office at least three days a week. Pedestrian traffic has returned to 95% of pre-pandemic levels, and many events saw record attendance last year. Our skyline is dotted with 19 cranes, with 31 more projects planned over the next decade.

Far from returning to “a new normal,” downtown is on the precipice of a major transformation. Project Connect and the I-35 reimagining will soon break ground, better connecting downtown to the rest of the city and changing the way the area looks and feels forever.

Downtown has two important assets—our diversity and our energy—that we must protect through this change to keep it thriving year after year. The diversity of industries downtown—including technology, medical, government and hospitality—buffers us against economic uncertainty. The resulting diversity of people and ideas also makes downtown an appealing place to be. Downtown’s energy is an intangible asset, but it is ultimately what makes people want to live, learn, work, invest and visit here. It is what makes Austin stand out from other major cities. To keep this vibe, downtown must remain welcoming and affordable to everyone.

These assets are so important that the Downtown Austin Alliance incorporated them into our 2023-2028 strategic plan. We have refined our mission: to create, preserve and enhance the vibe, value and vitality of downtown Austin for everyone. Cultivating inclusivity is one of our core values, and our strategic plan has many goals aimed at increasing downtown’s inclusivity, affordability and accessibility.

We are able to do this important work because in 2022, downtown property owners and Austin’s City Council reauthorized the Downtown Public Improvement District (PID) for another 10 years. The Downtown Alliance has managed the PID since its inception 30 years ago, and this next decade will be pivotal for downtown. Reauthorization enables us to continue providing direct services, organizing cultural events and planning for areas such as the Palm District and capped areas of I-35. We will also continue listening to downtown stakeholders and advocating for solutions to address your top issues: homelessness, safety and mobility.

To best position ourselves for the next 10 years, we have also changed the Downtown Alliance’s governance structure to be more inclusive. And we look forward to including you—our downtown community—in our ongoing work to build a downtown you will always love.

The Downtown Austin Alliance is the steward of our community’s collective vision for downtown Austin. We are a nonprofit that is funded by commercial and non-homestead property owners in the Downtown Public Improvement District (PID), and we represent the interests of both our members and everyone who works, lives, invests in and visits downtown. We also partner with a diverse array of government, community, business and cultural organizations, with a keen awareness of intersectionality as we create new initiatives.

As downtown’s full-time advocate and champion, we provide:

• Direct services: Keeping downtown clean, safe, beautiful and welcoming.
• Advocacy: Listening to everyone to make informed, inclusive policymaking decisions.
• Planning: Bringing people and organizations together to shape our neighborhoods.
• Placemaking: Activating urban spaces with inclusive, appealing programming.
• Research: Serving as a central repository for downtown data and metrics.

Downtown is the epicenter of Austin’s accelerating growth.

Cities around the world continue to face economic uncertainty as they recover from the COVID-19 pandemic. However, Austin is America’s second-fastest growing economy behind the San Francisco Bay Area. And Austin’s millennial population grew more than any other U.S. city last year, pointing to its continuing appeal to young professionals seeking their ideal place to work and play. Downtown is the hub for so many of our city’s economic engines, and the demand to invest, work, live and visit here remains a powerful force.

Downtown’s economy is bolstered by the diversity of industries and activities centered here. Our urban core is home both to titans of the tech industry and small bootstrapped startups. It is the core of our state, county and city governments as well as the businesses that serve them. The nearby universities and emerging medical district bring an additional layer of idea-sharing and innovation to our inspired city. Although companies are still finding their new normal in the world of hybrid work, Austin is leading the nation with people returning to the office. We don’t have concrete data on the factors shaping this trend, but do know downtown employers continue to cite the area’s vibe and cultural offerings as draws for employees.

Downtown Austin is also the cultural hub of Central Texas, and 2022 saw strong event attendance, a return of the nightlife economy and a rebound of the tourism industry that comprises 25% of our downtown economy. With residential towers fully leased or sold before they even break ground, it is clear there is an overwhelming demand to live in the middle of this action.

Downtown’s ever-changing skyline continues to be a visual reminder of Austin’s rapid growth. By 2040, the Austin regional population is expected to grow to 3.6 million, a 57% increase from its current population.

Downtown offers the density to absorb this growth and help our city build up, not just out. It will also be the hub for transformational multi-modal transportation projects such as Project Connect and the reimagining of I-35, which will enable people from all over the city to more easily access downtown. This accessibility will also increase the diversity of people connecting with each other and enjoying downtown’s opportunities, events and amenities.

Of the 19 projects under construction downtown, 35% will also be mixed-use, adding vibrancy and a diverse clientele for neighboring businesses.

Downtown is for everyone.

Downtown is the cultural, historic and economic heart of our city. It shines when all kinds of people can easily enjoy a wide variety of jobs, places, experiences and events. If we are to successfully create, preserve and enhance the vibe, vitality and value of downtown Austin for everyone, downtown must be more affordable and accessible for everyone.

Austin is now the 11th largest city in the U.S. and faces the same affordability challenges — particularly in housing and real estate — as other major metropolitan areas, including a crisis of people experiencing unsheltered homelessness. Additionally, our rapid growth has brought increased traffic congestion and other mobility challenges, which transformational transportation projects will ease in the long term but may compound in the short term.

These challenges are intensified downtown due to its centrality and demand for its prime location, but our urban core is also an incubator for innovative solutions. Leaders from all sectors are coming together for thoughtful district planning, which is critical to maintaining downtown’s affordability and accessibility. District planning helps shape neighborhoods that are fully utilized with a mix of office, residential, retail and public spaces; offer a mix of free amenities and attractions; and are linked to multi-modal transportation options. This mobility and economic accessibility will enable residents from all areas of Austin and all income levels to celebrate our city’s cultural heritage and add new chapters to its future. And it gives downtown the incredible opportunity to become a national model for thoughtful, inclusive growth that maintains Austin’s unique character.

The Downtown Austin Alliance is committed to playing an active role in addressing affordability challenges over the next five years. Our 2023-2028 strategic plan outlines several objectives in these areas: cultivating a more diverse, attainable residential mix; decreasing the number of people living unsheltered downtown by 75%; supporting a variety of affordable venues and creative spaces; and ensuring parks and public spaces are well-managed with inclusive programming.

One of our ongoing initiatives in this area includes advocacy for downtown’s HealthSouth redevelopment, which will provide one of the area’s largest concentrations of affordable housing. We also worked in 2022 to add a parking garage to the city’s affordable parking program, which was developed in response to the Downtown Alliance-led Downtown Parking Strategy, and to promote this opportunity to local businesses.

We advocate for the preservation of live music venues and in 2022 continued our $40,000 annual sponsorship of the Red River Cultural District. To further support the district, we pledged $50,000 in in-kind maintenance work from our ambassador team. We support small businesses through events such as the Sustainable Food Center’s Farmers’ Market in Republic Square, Black Makers Market and The People’s Market. We also plan downtown-wide free programming such as our annual Holiday Stroll, create placemaking opportunities via public art through our Writing on the Walls program and pay artists a fair wage for their work.

In 2022, downtown employees continued returning to work downtown. Hotels, restaurants, bars, music venues, cultural institutions and retail establishments have opened fully, and downtown has returned to its regular cadence of in-person events. Car traffic, foot traffic and Capital Metro ridership have all increased year-over-year but are still below pre-pandemic levels. Overall, mobility patterns are changing, but we do not have concrete data on them because work environments are still shifting as companies establish their “new normal.” With a large number of transformational projects on the way, the Downtown Alliance, in collaboration with various leaders and stakeholders, have worked diligently and collaboratively with community leaders, design experts and residents to shape our collective vision for the area’s future.

Our Future 35 is more than a transportation project; it is a comprehensive program to enhance Austin physically, socially, and economically after decades of divide. Before 1962, the section of I-35 which now cuts through downtown was called East Avenue. This street was a dividing line of segregation, with Austin’s white population living to the west and people of color displaced to the east.

When I-35 is lowered below the ground in the redesign, the land —or “caps” — above the interstate will be able to be reclaimed as 15+ acres of buildable space for community needs. This development, along with “stitches”, such as bridges, will spur a fundamental transformation of the downtown we know today and will connect people to jobs, services and each other.

The Downtown Austin Alliance is partnering with the City of Austin Corridor Program Office and a Community Steering Committee on Our Future 35, a community-centered initiative to build new city infrastructure and co-create public spaces over the I-35 highway.

In Fall 2022, we kicked off the program with a vision studio, community-wide surveys and community tabling events. From the input received, the Community Steering Committee co-created a vision and set of goals that will guide the project forward. The committee is shaping the engagement effort to ensure that program outputs accurately reflect community feedback received. Also, an Equitable Development Strategy, led by the Austin Economic Development Corporation, is being created in tandem with design ideas for each cap.

Early concepts for each cap along the corridor will be shared for public input in Summer 2023.

We are committed to a clean and safe downtown.

Austin consistently ranks among the safest U.S. metro areas with a population greater than 500,000. Violent crime is increasing across the country, including in Austin. However, there was no increase in violent crime downtown from 2021 to 2022, and rates were lower than in 2019 despite nighttime activity being higher than pre-pandemic levels. Downtown property crime fell by 2% from 2021 to 2022 while increasing by 11% in Austin overall.

Perception of safety is what influences behavior, so it is important to educate the public about this data. At the same time, downtown does face very real safety challenges. Downtown stakeholders, including the Austin Police Department (APD), Downtown Alliance, government officials and business owners, are working together to tackle this important issue.

The Downtown Ambassadors are the cornerstone of our direct services program. Our team of 60 Ambassadors (up 46% since 2021) has a 24/7 presence in the Downtown Public Improvement District (PID), including in Republic Square and Waterloo Park. Day in and day out, they work to remove trash, pressure wash streets and beautify the area through painting and planting projects. They support APD’s work by asking people to comply with ordinances, referring individuals to social services and reporting urgent issues to law enforcement.

The Ambassadors provide safety escorts to help people get to or from their cars or transit upon request and they also offer hospitality to pedestrians including friendly greetings, directions and downtown information. The Ambassadors support our hospitality industry, surveying downtown’s 27 hotels and the Austin Convention Center each morning to ensure the surrounding area is well-kept for visitors moving about downtown. This diligent service has made the Ambassadors highly recognizable and beloved icons of downtown Austin.