Redevelopment and Revenue
The Central Health Board of Managers agreed to lease a portion of the downtown property (two blocks) to the 2033 Higher Education Development Foundation, a local nonprofit created to benefit UT Austin. The Foundation is constructing a new 17-story office building that will serve as the flagship of Austin’s emerging Capital City Innovation District, an initiative of Central Health, UT Austin and Ascension Seton, with support from the Downtown Austin Alliance and Opportunity Austin. Companies, nonprofits and community groups will come together in the District with the goal of improving health care, creating jobs, and funding health care through lease revenue. The Foundation’s 99-year ground lease for Blocks 164 and 167 will pay Central Health $460 million over the life of the lease.