Austin Energy eyes $9 million planning deal

AUSTIN (KXAN) — Austin City Council may consider next week whether to approve negotiations for a $9 million contract for the planning and design of an Austin Energy office building.

The area near where Austin Energy plans to build new office space at East Riverside and Grove. (Kevin Schwaller)
The area near where Austin Energy plans to build new office space at East Riverside and Grove. (Kevin Schwaller)

The office space would be 180,000 square feet with a parking garage and surface parking spaces. The construction would happen on a property Austin Energy owns at East Riverside Drive and Grove Boulevard.

According to the item in front of council, the money will go toward services such as modeling, cost estimating, subcontractor outreach, and other initial-phase activities.

Austin Energy Spokesperson Carlos Cordova says the new building will relive crowding and move employees out of a space in a building at 811 Barton Springs Road, which Austin Energy is leasing through September 2017.

“By the time we get out of this lease next door, we would have spent $20 million in leases and we have nothing to show for it,” said Cordova. “That’s why we want to buy our own building that will one day belong, fully, to the public.”

The total estimated budget to build and design the development is $66.9 million.

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