The Downtown Ambassadors continue to be the cornerstone of our direct services program, removing trash, pressure washing streets and beautifying our downtown.

We are pleased to report the Ambassador team is now fully staffed at 75 employees, up from 56 in April 2021. Our increase in staff is largely due to a pay increase, significantly reducing turnover and allowing more tenured employees to gain job knowledge and focus on attention to detail.

Increased staffing means doubling our pressure washing frequency and heightened focus on keeping downtown safe and hospitable for all downtown users. Recently, we worked to welcome over 8,000 National Electrical Contractors Association conventioneers, providing wayfinding and making attendees feel safe through an increased presence in the convention center area. Our Ambassador team excels in providing hospitality for major events and conventions.

In order to best support our out-of-town guests, our Ambassadors are beginning a daily deployment before dawn to patrol areas surrounding downtown hotels. They will ensure any issues related to safety and cleanliness are addressed before visitors begin traveling throughout downtown.

Our Ambassador team also provides hospitality education to individuals experiencing homelessness about the Trinity Reunification Program and other services available.

Maintaining safe and inviting streets for all who visit downtown remains our top priority. We work closely with Austin Police Department (APD) to understand the ever-changing conditions of a rapidly growing downtown. We recently reimplemented our monthly safety forums to bring relevant information directly from APD to our downtown stakeholders. We are also testing a text notification system to cascade time-sensitive information such as power outages, emergency street closures, fires or water main breaks to PID subscribers quickly and efficiently.

The downtown area command, which includes most of the PID and downtown entertainment areas, is approved for up to 80% staffing. However, the current staffing shortage is affecting APD's ability to fill those shifts. In order to maintain a frontline presence downtown, we to fund an overtime patrol with two police officers for 10 hours seven days a week. Their presence increases feelings of safety and helps to maintain order.

These officers focus on ordinance enforcement downtown. Rather than ticketing for ordinance violations, officers ask for compliance with a 98% success rate. This keeps people out of the criminal justice system and builds a level of trust with the community. Ultimately, our officers aim to connect individuals in need with services that may help improve their conditions.

We understand the importance of our downtown parks providing respite to all downtown users. As part of our operations, maintenance and management responsibilities for Republic Square, the park is staffed by Ambassadors during all open hours. We welcome visitors, ensure the park remains clean and provide a presence to ask for compliance with park rules. We maintain the kiosk that houses Rosen’s Bagels, look over the public restrooms at the park and handle maintenance and landscaping upgrades.

Additionally, Ambassadors have provided safety and hospitality services at Waterloo Park since their reopening in August of 2021.

Downtown Austin is becoming a denser and more vibrant city with every development project in the works. Our emerging projects summary features all projects that have been recently completed, are under construction or are being planned in downtown.

Highlights from our September 2022 Downtown Austin Development Pipeline Update include:

• 12 projects have been delivered in 2022, adding 2.95 MSF to the downtown skyline.
• 27 additional projects are under construction, representing 10.4 MSF.
• Another 30 major development projects are being planned for downtown.
• The Waterline has officially begun construction. It will be the tallest building in Texas upon completion, topping out at a height of 1,022 feet, 700,000 square feet of office space, 240 hotel rooms and 352 apartments.

The information we synthesize for our emerging projects map is information sourced from the City of Austin’s site development permit application database and is provided by developers or credible news sources. Please contact us if you have any additional updates to add to our emerging projects map.

The Downtown Austin Alliance monitors the operating statuses of downtown storefront businesses to better understand their impact and contribution to the overall health and vibrancy of downtown. As a snapshot of downtown's recovery, the 2022 Storefront Inventory report reflects on past conditions and highlights the results of our most recent inventory of downtown storefront businesses. Read the full report here.

Key Takeaways:

• More than 85% of downtown’s storefront businesses are operating, representing the largest percentage since the start of the pandemic two years ago.
• 71 new businesses have opened downtown since February 2020.
• The total number of retail goods and services businesses dropped by 18% since February 2020. Downtown has 45 fewer retail businesses available for local shopping.
• 125 downtown businesses have permanently closed since February 2020.
• Overall pedestrian activity downtown continues to increase where visitor activity is at 95% of pre-pandemic levels and employee activity is at 62%.

Among other advocacy efforts over the past six months, the Downtown Austin Alliance:

• Successfully supported a resolution from Mayor Adler and Council Members Harper-Madison, Ellis, Fuentes and Pool relating to balancing development requirements that reduce development capacity or affordability with options that offset those requirements.
• Successfully supported the postponement of new Functional Green environmental regulations until the new Environmental Criterial Manual is published so that impacts can be tested and understood.
• Successfully supported bringing the Austin Convention Center garage into the Affordable Parking Program, as well as supported direction to conduct an analysis to ensure the right fee structure is in place before revising garage rates.
• Worked with the City of Austin on revising the interim Downtown Density Bonus Program Fees. Commercial rates were reduced by 50% as compared to the interim rates.

The Palm District is a dynamic gateway on the eastern edge of downtown Austin that is a cultural touchstone for Austin's Mexican American community. This large area of downtown includes Waller Creek, Red River Cultural District, Palm School, Rainey Street, the Emma S. Barrientos - Mexican American Cultural Center and the Convention Center.

The Palm District Planning Initiative will guide future public and private real estate development, infrastructure, funding and programs in the eastern portion of downtown Austin.

A draft vision for the plan was completed in collaboration with the community in 2021. In August 2022, a series of four in-person workshops, hosted by the Downtown Austin Alliance, was held at the Neal Kocurek Memorial Austin Convention Center. A design team from Asakura Robinson led community stakeholders through several scenario-planning exercises during the workshops. Based on those planning exercise results, conversations with stakeholders, and a review of previous plan materials, the consultant team developed scenarios based on three different themes: Live, Work, and Play.

The draft plan reflects a preferred scenario that aligns with the Draft Vision Framework and is guided by public input. The draft plan is slated to be considered by the Planning Commission in early November and by the Austin City Council for a first reading in December 2022. Find out more here.

Strategic Planning

The Downtown Alliance and Foundation have begun the process of developing our next Strategic Plan. This plan will give our organization focus and direction and guide our work plans, budget, service plan with the City of Austin, committees and task forces for the next five years. The Downtown Alliance and Foundation boards and staff have been working diligently to determine what our organization will achieve by 2028 and how we will continue to realize the Downtown Austin Vision.

Through a competitive bid process, the Downtown Alliance hired BDS Planning to guide the process of creating our next Strategic Plan. Our planning process began in August 2022, will wrap up in February 2023, and consists of three stages:

• Assessment of who we are: revisiting our vision, mission, and values
• Definition of where we want to go: defining our strategic priorities and setting goals and objectives
• Plan for how we will get there: developing actions and measures and creating the plan

During the assessment phase, BDS met with a cross-section of property owners, board leadership, partners and staff to get a broad understanding of future organizational needs. Work is now being done to revisit or affirm our mission, vision and values and determine strategic priorities for the 5-year plan.

Governance

Over a year ago, the Board Governance Committee began working toward changes to meet the organization's needs moving forward. All committee members were dedicated to creating a governance model based on best practices to serve the organization at this time in our history. Based on the committee’s analysis, we made recommendations for changes in the size, composition, policies and practices of our Board, along with a transition plan to a new governance model. We are pleased to announce these bylaws changes passed with 96% of the Board (and 100% of those who voted) in favor.

Special thanks to Governance Committee Members who made these transformational changes possible: Chair Whitney Knight, Vice-Chair Nikelle Meade, Kevin Brown, Jeff Howard, Jim Ritts, Steve Scheibal, Sania Shifferd, Mark Terry, Julia Taylor and Jennifer Wiebrand.

For questions about the governance process or changes, contact Julie Fitch.

To learn more about the Downtown Alliance or if you have questions about your membership, please reach out to Bill Brice, Vice President of Investor Relations.