The Austin Revitalization Authority is developing the building as part of the redevelopment in the East 11th Street corridor which includes renovation of historic commercial buildings and homes for affordable housing. The authority recently updated Austin City Council on its activities. Council liked what it heard and what it has seen along 11th Street and approved an extension of its contract with the authority.

Byron Marshall, the authority's executive director, said ground breaking for the office project, called Eleven East, should be in October. The renewed contract requires construction get underway before December.

The authority earlier this year reached an agreement with the city to lease 22,000 sf of the building to Austin's housing department for 10 years. The city can sublease space with the building owner's approval. It also has a five-year option to renew at 95% of the market rate at that time.

Already the authority has helped renovate the historic Haehnel Building, where Balcones Resources, a recycling company, has its administrative offices, and Arnold's Bakery, where the architectural firm Shoehorn Design has offices.

Construction of new sidewalks and installation of decorative light posts have begun in the area. Completed projects include upgrading water and wastewater lines and moving utility and telephone lines from overhead to underground.

The revitalization authority is working to develop the area around East 11th and 12th streets bounded by Interstate 35, Airport Boulevard, East Seventh Street and Martin Luther King Jr. Boulevard. It is seeking to develop 100,000 sf of retail and commercial space and more than 20 homes.