Full Circle Recommendations for Muller Redevelopment To: Mayor Wynn…

Full Circle Recommendations for Muller Redevelopment

To: Mayor Wynn and Members of the Austin City Council
From: Full Circle
Re: Mueller Redevelopment
Date: June 22, 2004

Executive Summary

Full Circle strongly supports the Mueller Master Plan and requests City
Council to adopt the following policy measures for Mueller as conditional
overlays to the project's zoning or as clauses in the final contract
agreement:

1. For major employers locating at Mueller, strong voluntary
preference will be given to those that pay livable wages and benefits;
demonstrate corporate social responsibility; and are most likely to
provide a net economic benefit, not simply a reshuffling of existing
sales tax revenues.

2. Prohibit grocery use on the 51st & I-35 retail site to eliminate
competition with grocery anchor planned for Mueller town center.

3. Allow construction sales and service at 51st & I-35, but cap that use
at 100,000 SF.
4. Consider the Mueller town center as an initial IBIZ (Independent
Business Investment Zone) area.

5. Adopt affordable housing recommendations of Robert Mueller
Affordable Housing Working Group.
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Dear Mayor Wynn and Members of the Austin City Council:

Full Circle strongly supports the community vision expressed in the
Mueller Master Plan and believes it will result in a project that is a lasting
example of sustainable development principles and outstanding community
planning.
To further strengthen the economic viability of Mueller, we ask that City
Council adopt the following policy measures and direct staff to incorporate
them where most appropriate, either as conditional overlays to the project's
zoning or as clauses in the final contract agreement. We have met with
representatives from Catellus and the Mueller Neighborhoods group
regarding these issues and plan to continue our discussions with them on
these topics.


(1) In selecting major business tenants for the Mueller
site, Catellus - or future Mueller developers - will
voluntarily agree to give strong preference to those
that:

    (a) pay a livable wage and benefit rate to both full-
and part-time employees;

    (b) generally demonstrate corporate social
responsibility;

    (c) are most likely to produce a net economic
benefit, not simply a reshuffling of existing sales tax
revenues.
Regarding (1)(a) above: In the Austin area, livable wage is currently
defined as between $13 to $17 per hour, depending on variables, and we
would expect a prospective tenant to meet this range. Benefits should, at a
minimum, match the current national average. Under current averages, this
would mean at least 66 percent of employees are insured through the
company health plan (source: Commonwealth Fund) with an individual
employee payment of no more than 25 percent (source: Kaiser Family
Foundation).

To provide strong jobs for Austin families, we believe major employers
locating at Mueller should be prepared to meet or exceed the above
standards. Many large employers already do, including a number in the
retail sector such as Costco and Ikea. We believe such responsible
corporations should be given a strong preference in selecting business
tenants for this model project.

Please note that this preference is intended to apply to major
employers only. Much as we support a livable wage, we do not believe it
is fair or realistic to apply the same standard to small mom-and-pop
operations. Major employers locating at Mueller can and should provide
livable jobs for Austin workers.

Regarding (1)(b) above: In addition to paying livable wages, other factors
in determining general corporate social responsibility include, but are not
limited to, the following:

      · Community Track Record for Prospective Tenants. Has a
prospective tenant demonstrated consideration for our community or for
other cities where it has located? Has it been, or is it currently, involved in
any lawsuits against the city of Austin? What is the prospective tenant'   s
environmental record? Are there other issues in its corporate history that
raise a red flag?

     · Charitable Donations and Community Involvement. What
percentage of a corporation' pre-tax income goes to charity? Does the
                            s
corporation have a history of active community involvement?

      · Design Standards. Is a prospective tenant willing to work with the
community to arrive at appropriate design standards, including parking? In
the case of very large tenants, will they be willing to build attractive and
appropriate buffers or transitional spaces between their structures and the
neighborhood?

Regarding (1)(c) above: Strong preference should be given to prospective
business tenants that are most likely to provide a true net economic
benefit for the city, not simply a reshuffling of existing sales tax revenues
by draining sales from nearby businesses. Prospective business tenants
should not undermine businesses planned for, or likely to be included
in, Mueller's future town center.
(2) Prohibit grocery use on the 51st & I-35 commercial
site.
We believe this provision is key to the success of Mueller' future town
                                                             s
center, which is to be anchored by a grocery store. Though a general
provision related to this issue is included in our voluntary standards, we
believe the grocery category is so potentially damaging to the town center
that it must be reinforced with a specific zoning provision.


(3) Allow construction sales and service, but cap that
use at 100,000 square feet.
This compromise would eliminate the specter of a certain large unwanted
construction retailer, but leave the door open to smaller retailers in that
category.


(4) Consider the Mueller town center as a site for the
emerging Independent Business Investment Zone
(IBIZ) policies, with Catellus actively involved in the
creative thinking that will help the IBIZ concept thrive.
In contrast to the highway frontage area, the "town center" at Mueller is
widely assumed to be more oriented to local and independent business.
Yet no details have been spelled out to support this assumption and no
standards or programs are currently in place to make it a reality.

The Austin Independent Business Alliance has recently pioneered the IBIZ
concept (Independent Business Investment Zones) to identify and
implement best practices for incubating and maintaining successful local
business areas, such as South Congress. Full Circle strongly supports the
IBIZ concept and believes the Mueller town center would be an ideal
candidate for this kind of vibrant mix. We encourage City Council to
designate the Mueller town center as an initial IBIZ area and to enlist
Catellus as an active partner in the creative thinking that will help the IBIZ
concept thrive, both at Mueller and in Austin generally.
(5) Support the goal of achieving meaningful
affordable housing at Mueller by adopting the
recommendations of the Robert Mueller Affordable
Housing Working Group.
Full Circle encourages City Council to adopt the recommendations of the
Robert Mueller Affordable Housing Working Group, including the
recommended numbers of houses for purchase and rent, and the mix of
percentages for Median Family Income (MFI).


The Full Circle board urges the Austin City Council to move forward with a
sense of purpose in
approving the Mueller Master Plan and to incorporate the above policy
measures as part of the approval process. We believe these measures are
critical to the economic strength of the project and our community, and we
are prepared to help in any way we can to meet the current timeline for
approving Mueller. Please do not hesitate to contact us if you have
questions or would like to discuss any of these points.

As always, thank you for your hard work on behalf of our city and for your
consideration of these important issues.