Now, with the approval of a special state board, dirt may actually be moved by next year on the 22 central Austin acres bounded by Guadalupe Street on the east, 45th Street on the south and Lamar Boulevard on the west. The Special Board of Review has approved the development plan. The state Department of Mental Health and Mental Retardation owns the property.

Cencor Urban Properties, part of the Weitzman Group, based in Dallas, is handling the commercial development and Atlanta-based Post Properties is handling the residential side. The board's action gives the developers the sign-off that's needed to take the project through the city of Austin's development process, says Bob Hewgley, an asset manager for the Texas General Land Office, who has worked on the project.

"The entitlement work is over," Hewgley tells GlobeSt.com. "The developer now has a document in his hands he can go to the city with as his zoning and submit permits under that. As long as he conforms close to that document, he ought to get his permits."