The Texas Department of Transportation (TxDOT) is preparing to award $25 million to a nonprofit for city parkland mitigation—but critics argue it’s less about mitigation and more about funding a specialized vanity project that once again fails to invest in East Austin’s parks.
As part of the $4.5 billion I-35 Freeway expansion construction will adversely impact portions of East Austin’s parkland. Holly Shores/Edward Rendon Sr. Park, International Shores, and Waller Beach—all part of the City of Austin’s Metropolitan Park System—are expected to be significantly impacted.
To help mitigate potential damage, TXDOT has committed $25 million to the City through the Texas Mobility Fund (TMF). This funding agreement, titled “Texas Mobility Fund Project for Mitigation of Adverse Environmental Impacts Off-System,” is specifically designated to be used for mitigation, repair, and/or replacement of Austin parkland impacted by the I-35 expansion project.
However, rather than the TXDOT/TMF funds going directly to Austin’s Parks and Recreation Department (PARD) for that purpose, nearly all of the money is being allocated to a nonprofit organization called The Trail Conservancy (TTC) via a third party-the Austin Public Facility Corporation (APFC) for a very specific project.
While much of the soon-to-be I-35-impacted parkland is located in East Austin, the funds are being directed to the south-central side of the lake, with no apparent connection to the affected parkland. In fact, the proposed project is over a mile from any freeway construction sites.
The funds are being earmarked for the construction of a section of boardwalk along the south shore of Lady Bird Lake, between Congress Avenue and South First Street. This proposed stretch of boardwalk would partly front the Hyatt Regency Hotel. The section would measure approximately 1,056 linear feet, according to Google Maps.
The stated purpose of the boardwalk construction project—titled “Cap Ex Central Mitigation Boardwalk”—is to address a pinch-point and hazardous erosion affecting bike and pedestrian traffic. The primary rationale is that the planned I-35 expansion will increase pedestrian and bicycle use in the area, worsening existing congestion and creating unsafe conditions.
Despite public calls for increased operational funding for PARD, $25 million in public funds is instead being directed to The Trail Conservancy (TTC)—a local nonprofit that also plans to manage the construction of the proposed boardwalk segment.
When asked why the mitigation funding was to be allocated to TTC rather than PARD, both PARD Director, Jesus Aguirre and department staff stated that it was TxDOT/TMF that selected TTC to receive and manage the funds. This raises a critical question: Who within TxDOT has the authority to decide which entity receives these public funds, and on what basis was that decision made?
One point is clear: Mayor Kirk Watson supports the project. A July 2023 letter from the mayor, included in TTC’s budget proposal for the Lady Bird Lake boardwalk, was addressed to Jay Crossley, CEO of the nonprofit Farm & City and former board member of the Central Texas Regional Mobility Authority (Feb 2022 – Mar 2023). In the letter, Mayor Watson refers to a meeting with state legislators, during which several I-35-related initiatives were discussed—including:
“A commitment to build the boardwalk along Lady Bird Lake in front of the Hyatt (about $25 million).”
While there is nothing inherently problematic about funding a new boardwalk segment, questions remain about whether this specific “pinch-point” location truly qualifies as mitigation, as intended by TxDOT. More fundamentally, why is PARD—already tasked with maintaining park infrastructure and facing ongoing funding shortages— not the direct recipient of these public dollars, instead of a private nonprofit?
Benefits to TTC
Unlike city departments, nonprofit organizations are subject to fewer transparency and accountability requirements—particularly during the construction phase, which do not undergo the same rigorous bidding and oversight process required for municipal projects.
Under the city’s Parks Operating and Maintenance Agreement (POMA) with The Trail Conservancy (TTC), the nonprofit is allowed to collect revenue from any facilities it constructs or maintains. Once TTC builds an amenity or facility, it assumes responsibility for its upkeep and any associated revenue generation. Nowhere in TTC’s POMA with Austin’s PARD is TTC given the authority to request or take parkland mitigation money.
Nevertheless, if TTC receives the TxDOT funds, they will, according to the POMA, be responsible for the ongoing maintenance of the boardwalk (after construction). In return, they would be entitled to a portion of future revenues the project may generate—if any.
While the potential for revenue from a short section of boardwalk is unclear, the area has traditionally served as a mooring and passenger loading zone for party and tour boats meaning the boat concessions would have to find another location unless docks are provided as part of the boardwalk structure. Other than an artists’ rendering (shown here) there is little design information available.
Under that scenario, given the POMA, TTC might be entitled to a portion of revenues associated with those concessions—giving the nonprofit powerful impetus to embrace such a project. Thus far, no docks are shown in the renderings leaving us to speculate about what will happen to the very popular long-standing boat concessions if the boardwalk segment goes through.
TTC’s estimate for the proposed boardwalk project comes in just under the $25 million allocation—at $24,754,597.08—prompting a natural follow-up: what happens to the remaining $245,402.92? Will that surplus also go to the nonprofit?
More broadly, the $25 million price tag raises serious concerns about cost, transparency, and mission drift—whether or not boat and passenger piers are included.
The planned boardwalk segment is relatively short with several lookout points—yet its projected cost mirrors that of the much more complex Wishbone Trail project near Longhorn Dam. That trail includes three elevated, concrete-paved sections: one extending to the north shore, another crossing the lake to the south shore, and a third leading to the peninsula with a spacious plaza at the juncture of the three segments. Given the Wishbone Trail’s significantly greater engineering demands, materials, and construction challenges, it’s difficult to understand how both projects could carry virtually the same price tag.
A $25 million opportunity is no small matter for the city’s Parks and Recreation Department (PARD). Given the scale and rarity of such funding, it would be reasonable to expect that these public dollars be directed toward high-priority needs such as more heavily impacted areas in need of mitigation, ongoing maintenance, ecological restoration, or parkland replacement—as specifically outlined in the Texas Mobility Fund agreement. Seeing that East Austin parks will be intensively affected by the I-35 project, a good portion of the funds should be directed there, via PARD.
In addition to being misdirected, the proposed funding for The Trail Conservancy and the Boardwalk has had limited public review and bypassed the usual channels such as City Council, the Parks and Recreation Board, or the Environmental Commission. These groups typically weigh in on park-related projects. Instead, the issue is set to be discussed at the Capital Area Metropolitan Planning Organization (CAMPO) meeting in October. It is still unclear why CAMPO is taking this up, when such a matter is normally handled by the city and its boards.
The allocation of funds to this narrowly defined boardwalk project raises concerns about behind-the-scenes negotiations and potential self-dealing by private nonprofit organizations.
Likewise, the lack of public review so far raises red flags and more questions. Does a boardwalk truly mitigate impacts to the land? Or is public funding being used to subsidize amenities that fall outside TxDOT’s original intent for mitigation?
As the project moves forward it deserves much greater public scrutiny—before $25 million in potential PARD funding quietly disappears into a very short stretch of boardwalk.
CAMPO Monday, October 6 @ 2pm The Junior League of Austin Community Impact Center 5330 Bluffstone Lane Austin, TX 78759
Proposed $25 Million Section of Boardwalk
$25 Million Wishbone Pedestrian Bridge Complex Wishbone Trail currently under construction at $25M, vastly larger than the proposed boardwalk section with the same price tag.
