Austin-based World Class Capital Group LLC has withdrawn a proposal that could have cleared the way for a 1.5 million-square-foot development on land adjacent to The Austonian.
The investment group, which owns several other lots in downtown Austin such as the Spaghetti Warehouse, submitted a zoning change for the lots on June 27. Those plans called for two properties adjacent to the Austonian to be redeveloped into a 58,880-square-foot retail development and a 1.5 million-square-foot office development, according to documents submitted to the city of Austin.
World Class Capital asked for the property to be rezoned to permit a 12-to-1 floor-to-area ratio, which would allow it to build a denser project on the site.
But on July 2, lawyers for the property's owners withdrew the zoning application and asked the city to refund the filing fee of $1,499.16.
It's unclear whether the owners will continue efforts to rezone the property. The original application for additional density was made under the city's Central Urban Redevelopment rezoning process, which was recently discontinued by the city of Austin. The property's owners could pursue a similar rezoning process through the newly codified Downtown Density Bonus Program.
World Class Capital and lawyers representing it did not immediately return requests for comment.
It's also unclear whether World Class Capital is intent on developing the site. Land owners often have sites rezoned before selling them to make the more attractive to buyers. The site would be constricted by regulations governing the views of the Texas Capitol.
World Class Capital closed a deal to buy the site on Dec. 31, 2012, for an estimated $35 million to $45 million. Nate Paul, president and CEO of World Class Capital, did not have plans to develop the site as recently as March, according to reports.
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