Austin leaders debate future of I-35 Cap & Stitch projects as new proposal cuts back spending

AUSTIN, Texas (KXAN) – The future of long-planned Cap and Stitch projects over I-35 is under discussion in Austin, after a new proposal from Mayor Kirk Watson suggested reducing how much money the city spends on the projects.

City leaders originally approved $104 million to help fund future caps, deck plazas built over I-35 designed to reconnect east and west Austin with parks, green space and community areas.

Now, Watson’s proposal would focus on completing one fully built project sooner while lowering the city’s financial commitment.

Under Watson’s plan, the city would build a finished cap extending from Palm Park across I-35 to the east side. Unlike earlier concepts that focused mainly on preparing infrastructure for future projects, the mayor said this approach would allow residents to see a completed public space when the highway reconstruction wraps up.

“This is significant both because of its tie to park amenities and because of its tie to the history of Palm Park. Using this cap to reconnect this spot of Austin would be great. The estimated cost for this portion would be $41.3 million. This full project will be covered by the SIB loan,” said Watson.

Austin City Council Member Mike Siegel finds the proposal beneficial.

“I really support the mayor’s direction to reduce the city’s existing commitment, which is over $100 million, and basically cut that in half, and also to prioritize our investment to make sure we’re actually fully building out an entire Cap project instead of just building foundational elements that may or may not result in caps in some distant future,” said Siegel.

“From my point of view, we should be prioritizing our investments in things that help people right now,” said Siegel.

Not all city leaders agree with the revised approach.

In a joint response, council members including Ryan Alter, Natasha Harper-Madison, Zo Qadri, José Velásquez and Mayor Pro Tem Chito Vela raised concerns about whether the smaller project would deliver enough community benefit.

The group argued the proposed stitch may be too small to meaningfully shield nearby neighborhoods from highway noise and pollution — one of the core goals of the larger cap vision.

“We appreciate the Mayor’s proposal, but feel it does not deliver enough benefits to justify the cost. The proposed stitch is too small to shield someone from the noise and negative effects of the highway underneath, a key element for a successful highway cap..  While we acknowledge the proposed stitch is cheaper than a cap, it is still $41 million dollars for a project with very few benefits,” they said in the response.

The proposal also calls for “future-proofing” possible caps near 11th and 12th streets. 

Some East Austin businesses say reconnecting both sides of the city would be welcome but worry about the impacts construction could bring.

“35 is already kind of a lot to handle. So adding construction, I feel like that would be a deterrent initially for businesses. That makes me a little bit nervous,” said Elisabeth Miranda-Wagstaff, shop ambassador at Kindred Spirits.

“I’m sure it would be amazing, but I’m just a little nervous about, like, the whole process of execution,” said Miranda-Wagstaff.

Mayor Watson says he plans to bring this proposal up for discussion during the May 28th council meeting.