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Austin faces accelerated funding, design deadline for I-35 cap and stitch project

City of Austin officials face a 2025 deadline to define the scope of several cap and stitch projects that could reshape traffic and neighborhoods across the city.

Explained: In a Dec. 4 update to the Austin Mobility Committee, city staff said the Texas Department of Transportation revised the I-35 Capital Express Central project timeline, delaying construction of city-funded elements by three years while moving up the deadline for additional funding commitments.

The impact: The shift forces Austin to commit millions of dollars when designs are only 30% complete, increasing financial risk, city staff said. City Council approved an advance funding agreement last May for up to $104 million to support three downtown caps and two northern stitches, with future payments to be spread over several years and larger “balloon payments” due during final construction.

Looking ahead: Community engagement continues on northern stitches aimed at reconnecting East and West Austin. Final stitch locations are expected to be selected by City Council by the end of 2025.

 
CI Business
'A dream come true': Austin's Prototype Vintage celebrates 20 years, opens second location

Austin’s North Loop neighborhood has gained another locally owned vintage oasis with the recent opening of Prototype Vintage’s second location. The shop is spreading its roots from its first location on the tourist hub of South Congress Avenue to a classic neighborhood shaped by generations of Austinites.

How it came to be: The business is owned by longtime best friends Audrie San Miguel and Emily Larson. The duo launched their first location on South Congress in 2005 after previously meeting at a North Loop block party. With their hands full curating inventory for the 1,700 square foot floor, the two didn’t imagine opening up a second store until the perfect opportunity arose.

Respecting the craft: Both owners hand select each product displayed in the stores from handbags and jackets to dresses and children’s clothing. Products are found by the owners or purchased from long-term vendors the duo has built relationships with.

  • South Congress: 1700 S. Congress Ave., Austin; North Loop: 123 E. North Loop Blvd., Austin

 
On The Transportation Beat
CapMetro’s latest approved plan signals shift in commuter behavior

CapMetro is marking its 40th anniversary with a forward-looking overhaul of how it serves a region where commuting patterns have shifted. With hybrid work reducing traditional peak-hour demand, the agency adopted Transit Plan 2035 as a “recalibration” aimed at building a more equitable, reliable and widely used system.

A closer look: Key strategies include expanding on-demand Pickup zones, boosting frequency on core MetroRapid corridors and improving all-day service on the Red Line in the coming years.

The plan also highlights system gaps in many outer neighborhoods, where bus stops remain far from homes and business centers, while Central Austin riders continue calling for more dependable service.

The outlook: CapMetro leaders say increasing frequency is the most effective way to attract riders.

Safety remains a focus as well. The agency’s community-centered public safety program blends ambassadors, intervention specialists and a new Transit Police Department, contributing to stabilizing incident trends. Long-term, CapMetro is investing in transit-oriented development to connect more Austinites to housing, jobs and high-frequency routes.

 
CI Texas
Research shows Texans want to feel heard, participate more amid rapid business growth

Texas has grown rapidly in recent years, and data indicates that development is not slowing down. The Lone Star State gained about 168,000 jobs from September 2024-September 2025, leading the nation in job growth, according to the Texas Workforce Commission.

The overview: Texas is attractive to businesses looking to relocate or expand their operations due to its tax incentives and grants, lack of a personal income tax and roughly 200 higher education institutions, business leaders said during a Dec. 10 summit held in College Station by industry network YTexas.

As businesses of all sizes continue to move to Texas, local governments and associations also need to “support the ones that are already here,” said Dean Browell, the chief behavioral officer for Feedback, a digital ethnographic research firm.

Zooming in: In an October study, Feedback found that long-term Texas residents want to live in growing communities with strong education systems and plentiful job opportunities. That growth, however, can lead to rising property taxes and living expenses before residents begin feeling the benefits, Browell said.

 

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Elle Bent
Editor

Krista Box
General Manager

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