Austin eyes $193M loan request for covered highway project

The cap and stitch endeavor could cost anywhere from $600 million to $900 million to pay for both the cap structures and the amenity features on top

AUSTIN (KXAN) — With Interstate 35 expansion efforts in the works near downtown, Austin City Council is eyeing a nearly $200 million state loan request to support highway coverings through the city's "Cap and Stitch" program.

"Our Future 35" is the city initiative behind the cap and stitch program, which seeks to cover sunken portions of the expanded I-35 with deck plazas. Those caps can house greenspace, small buildings, art displays and other community amenities.

On March 21, Austin City Council will consider a loan funding request with the State Infrastructure Bank, which is overseen by the Texas Department of Transportation. The request is not to exceed $193 million, per council documents.

That vote will come after city leaders and state representatives celebrated Monday the securement of $105.2 million in federal dollars to fund cap and stitch work over I-35 from Cesar Chavez Street to Fourth Street. The funding was provided via the Inflation Reduction Act, U.S. Rep. Lloyd Doggett (D-Texas) said in the announcement.

City transportation leaders are continually seeking out additional funding sources to pay for the project. The cap and stitch endeavor could cost anywhere from $600 million to $900 million to pay for both the cap structures and the amenity features on top, Richard Mendoza — director of the city's Transportation and Public Works Department — said in late January.

Mendoza and Downtown Austin Alliance representatives said in late January other possible cap locations include 11th and 12th streets as well as 38th Street to Airport Boulevard. He added the city has looked toward Klyde Warren Park in Dallas and the cap over I-10 in Phoenix for inspiration.