Austin envisions housing, transit-oriented development at Tokyo Electron campus – Austin Business Journal – The Business Journals
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Austin Business Journal reported on March 15 that the city was considering a roughly $90 million purchase of Tokyo Electron's former North American headquarters in Southeast Austin. Now, more light has been shed on what the city may have planned for the site if it follows through with the purchase — think Mueller neighborhood.
More details have come to light about what the city of Austin has envisioned for the 107-acre Tokyo Electron Ltd. campus it may purchase.
A dense, transit-oriented neighborhood with 1,100 living units could be developed on the site, Mayor Kirk Watson stated in his Watson Wire newsletter. He likened the concept to the Mueller neighborhood, but he said it would be “intentionally built around public transit and with the benefit of the lessons learned about ensuring affordability and other challenges in a much-in-demand planned community.”
Austin Business Journal reported on March 15 that the city was considering a roughly $90 million purchase of the campus, which is Tokyo Electron’s former North American headquarters. The maker of semiconductor manufacturing equipment put the campus, located at 2400 Grove Blvd., up for sale late last year as it expands its footprint across the metro.
City spokesperson Shelley Parks previously confirmed that two existing buildings, which make up 189,795 square feet on 46.8 acres, would be used for a second Combined Technology and Emergency Communications Center, plus office space for future city needs. She said the other 60.3 acres of undeveloped land had plenty of “promising opportunities” for the East Riverside and Montopolis communities.
Watston said the purchase of the campus, which is pegged at $87 million, would build off the city’s Project Connect light rail plan because it is located near a future rail line along Riverside Drive. Though, the future of Austin’s plan to build a light rail system is unclear as it faces resistance from local groups, and more recently, Texas Attorney General Ken Paxton.
“The proximity to public transit creates so many opportunities for community benefits and access and truly makes the most of our voter-approved investments in affordable housing and transit,” Watson said.
Workforce housing is also a potential for the site, he said, pointing to city employees working at the airport, teachers and fire, police and EMS cadets.
The site is a couple of miles down East Riverside Drive from the Oracle Corp. headquarters and next to a former semiconductor factory owned by the University of Texas. It’s about a 10-minute drive to Austin-Bergstrom International Airport and roughly 15 minutes to Tesla Inc.’s gigafactory.
The Austin City Council is expected to consider the purchase on March 21.
Tokyo Electron also wants the opportunity to lease back the two buildings on the campus through Dec. 31, with the option to extend on a month-to-month basis through March 31, 2025, according to city documents.
Meanwhile, Tokyo Electron is in expansion mode and on the hunt for another 140,000 square feet in the metro after relocating its North American headquarters to the RiverSouth office tower south of Lady Bird Lake near downtown.
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