North Austin News

AUSTIN, TEXAS – The Austin City Council has given the green light for the acquisition of the 107-acre Tokyo Electron (TEL) campus and surrounding property for $87 million, located at 2400 Grove Blvd. in southeast Austin. The decision was made during the Council's regular meeting on Thursday, as reported on Mar 21, 2024.

Assistant City Manager Veronica Briseño described the purchase as a unique opportunity, stating, "This was a rare, generational opportunity to purchase a huge swath of mostly undeveloped land centrally located in Austin." The plan includes leasing back the existing buildings to Tokyo Electron for a year while they relocate to RiverSouth Austin.

Mayor Kirk Watson emphasized the ambitious goals set in Austin's 2017 Strategic Housing Blueprint, aiming to create 135,000 housing units by 2028, with a focus on both market-rate and affordable units. Watson envisioned a transit-oriented neighborhood with the potential to accommodate 1,100 living units.

District 3 Council Member José Velásquez expressed excitement about the opportunity to provide more affordable housing in a strategic location with public transit access, saying, "The opportunity to do so in this location, built intentionally and strategically with public transit access, is beyond exciting."

Tokyo Electron, whose North American headquarters have been in Austin for 30 years, expressed their commitment to the city and region. Rick Turner, Executive Vice President at Tokyo Electron U.S. Holdings, highlighted Austin's innovative talent and the company's dedication to driving innovation and community involvement.

The purchase includes funding from Project Connect Anti-Displacement Funds to prioritize investments in areas vulnerable to displacement, ensuring affordability near transit lines. The future redevelopment plans for the site will undergo extensive planning, feasibility assessments, and community engagement before solidification.

The acquisition of the TEL campus aligns with the City's Equitable Transit-Oriented Development goals, aiming to create a dense, transit-friendly community with commercial and cultural spaces. The property's strategic location near the proposed Austin Light Rail corridor holds promise for substantial future ridership and affordable housing opportunities along the transit route.