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TxDOT spends $748M to burrow bus-size tunnels under Central Austin

The Texas Department of Transportation will begin one of Austin’s largest underground construction projects in 2026—boring 6.5 miles of 22-foot-wide tunnels beneath I-35 to reduce flooding along the corridor.

Explained: As part of the I-35 Central project, the tunnels—large enough to fit a CapMetro bus—will stretch from 45th Street to Cesar Chavez Street before turning east toward U.S. 183 near Lady Bird Lake. Work will begin with excavation of nine drop shafts up to 200 feet deep, with the first tunnel boring machine starting near Airport Boulevard in 2026.

The $748 million project, led by contractor Sak & Shea, also includes a new pump station capable of treating 130,000 gallons of stormwater per minute. TxDOT says the system will improve water quality, lower the floodplain by roughly 350 acres and ease pressure on the Waller Creek tunnel.

Looking ahead: Construction will run around the clock through 2029. Nearby residents can expect some vibration and dust, though TxDOT plans to monitor and mitigate both throughout the project.

 
Can't-Miss Coverage
Luby's, tacos and brunch: 9 changes to Austin's downtown business scene

From July to October, downtown Austin has welcomed several new dining options and coffee experiences. This list is not comprehensive. 

Luby’s
The Texas-founded restaurant has crafted a cafeteria-style dining experience since 1947 with nearly 40 locations throughout the state. The eatery offers fried fish, roasted chicken, chicken fried steak, meatloaf and more homestyle meals which can be paired with macaroni and cheese and mashed potatoes.

  • Opened Aug. 28
  • 314 W. 11th St., Ste. 163, Austin

Moxies
The chain eatery, bar and lounge is slated to bring two new locations to Austin over the next two years, per a representative for the business. One location is planned for Congress Avenue in downtown Austin. The menu features appetizers such as crab cakes, potstickers and bruschetta; entrees such as steak, seafood and pasta; and desserts such as key lime pie and sticky toffee pudding.
  • Opening 2026
  • 600 Congress Ave., Austin

 
What You May Have Missed
A new metroplex: Local officials discuss growing I-35 corridor at annual summit

The 2025 Austin-San Antonio Growth Summit kicked off on Oct. 8, highlighting the current growth and future expansion of business and development along the I-35 corridor.

Hundreds of business owners, regional officials and lawmakers attended the event in San Marcos.

The outlook: Henry Cisneros, former San Antonio mayor and 10th United States Secretary of Housing and Urban Development, began the summit by detailing what the region could look like by 2050.

“What we’re living through is quantitatively different than any generation has seen before,” he said.

By 2050, Cisneros said the population in the Austin and San Antonio metroplex is projected to grow from 5.3 million to 8.3 million.

Even by 2030, the population in the area is expected to grow to 6 million or 7 million, according to the Greater Austin-San Antonio Corridor Council.

Between 2023 and 2024 alone, data from the U.S. Census Bureau showed that San Antonio grew by 23,945 residents.

 
CI Business
Flourish Plant Shop & Wine Bar now open

Flourish Plant Shop & Wine Bar has launched the opening of its storefront in North Austin.

What to know: The concept was crafted by Rachel Roberts and Dale Ellington, friends who combined their background in hospitality and wine. Roberts’ portfolio includes time at Fonda San Miguel and Tacodeli in addition to the opening of her plant shop, Flourish. Ellington brings the wine side of businesses with over 13 years of experience.

What to expect: The new business presents by the glass and by the bottle menu. Paired with its drink menus, the shop and bar serves shareable meat and cheese boards, preserved seafood, olives, almonds, housemade potato chips and more.

The plant shop side of the business features botanical options for new plant parents and green thumbs alike.

5003 Airport Blvd., Austin

 

YOUR WEEKEND TO-DO LIST

Check out these weekend events across the metro area.

To submit your own event, click here!

Bee Cave  |  Oct. 30-31, 7-9 p.m.

Haunted Trail

Learn more.

 

Leander  |  Oct. 31, 7-10 p.m.

Dueling Pianos Glow in the Dark Halloween

Learn more.

 

Austin  |  Nov. 1, 11 a.m.-4 p.m.

Artreach: Austin’s #1 Ethical Gift Fair

Learn more.

 

Dripping Springs  |  Nov. 2, 11 a.m.-2 p.m.

28th annual Empty Bowls Project

Learn more.

 

Round Rock  |  Nov. 1, noon-9 p.m.

Dia De Los Muertos

Learn more.

 
WHAT'S HAPPENING AT CI
InCIder perks expand with first-ever Austin event at Community Impact HQ

The overview: As Community Impact enters its third decade, it’s returning to its roots of growth and deeper reader connections. The “Patron” program, which began in 2020 by reader demand, has relaunched as the InCIder.

“This relaunch represents our renewed commitment to readers who support our local news,” CEO John Garrett said. “Beyond funding great journalism, we also want to reward our InCIders and build deeper connections with them, creating a true sense of community around the work we do.”

Event details: As part of the relaunch, Community Impact will host its first-ever InCIder Hour, a new event aimed at celebrating and engaging the company’s supporters.

The event, open to InCIders only, will take place Nov. 12 from 5:30-7 p.m. at Community Impact Headquarters, 16225 Impact Way, Pflugerville.

Guests will have the opportunity to network with fellow InCIders, meet Community Impact staff and attend a featured conversation with legislative reporter Hannah Norton, moderated by Garrett.

“Our first event needed to start where all the hard work is put together,” Garrett said. “People are blown away when they see our operation. To be able to sit and chat with the best legislative reporter in Texas, Hannah Norton, makes it an event our InCIder friends deserve and hopefully will enjoy.”

 

Your local team

Elle Bent
Editor

Krista Box
General Manager

Email [email protected] for story ideas, tips or questions.

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