As 2025 closes, Austin’s development landscape is quietly shifting. The era of speculative land banking is giving way to precision entitlement — where value is unlocked not by location alone, but by understanding how zoning mechanics like DB90 and Site Plan Lite interact at the parcel level.
The most active players aren’t chasing headlines — they’re underwriting the code.
📍 CASE WATCH: 1430 Collier St. (C14-2025-0057)
Current Status City Council approved Ordinance No. 20251120-068 in late November, formally granting GR-V-DB90entitlements. The fight has now moved from zoning approval to the site plan and platting phase, where project economics are truly defined.
The Technical Shift
Site Area: Approximately 1.77 acres.
Height: A jump from the base 60 ft entitlement to 90 ft under Tier 2 DB90.
Density: With Vertical Mixed-Use (V) allowances, the site supports approximately 250+ units, a significant step-change for a parcel previously constrained by low-rise commercial zoning.
Affordability Requirements: To maintain DB90 eligibility, the project must deliver 10% @ 50% MFI or 12% @ 60% MFI (rental).
Why This Matters This filing confirms a broader shift: DB90 is moving inward. Collier sits just off the main South Lamar spine — close enough to benefit from transit adjacency, yet historically constrained by neighborhood resistance. Locking in 90-foot entitlements here establishes a new valuation benchmark for interior transition parcels.
This is how density migrates — not all at once, but case by case.
⚠️ The Friction Point & Analyst Confidence The Zilker Neighborhood Association (ZNA) has pivoted its opposition toward infrastructure constraints. Their core argument centers on the lack of funded signalization at S. Lamar / Collier / Evergreen, which is not scheduled under Phase I of the Corridor Improvement Program (targeted for 2030+).
Analyst Confidence (Postponement Risk): ~85% Expect ZNA to push for delay or mitigation fees at the January 13th Planning Commission hearing. While zoning is effectively secured, timeline risk remains the primary variable for developers underwriting this site.
📐 REGULATORY DEEP DIVE: Why Site Plan Lite Is the Quiet Winner
The “17,780 Rule” (The Vela Factor) Championed by Council Member Chito Vela to bridge the gap between "Residential" and "Small Commercial" scales, the updated Infill Plat ordinance allows parcels under 17,780 sq ft (~0.41 acres) to qualify for Simplified Drainage Review.
The Alpha: Avoiding traditional detention requirements can save $30k–$50k in soft costs while preserving buildable square footage otherwise lost to micro-ponds. For small-scale infill, this is the difference between a deal that pencils and one that doesn't.
HOME Phase 2 Leverage
Minimum lot size: 1,800 sq ft (down from 5,750).
Subchapter F exemption: Small lots created under HOME 2 are exempt from "McMansion" standards, allowing for more "box" and less "slope" inefficiency.
💰 The Bottom Line
This is no longer about design — it’s about math. In today’s 78704 market, developers are trading a single $1.8M McMansion for three $950k fee-simple units. Revenue increases ~50%, risk is distributed across three buyers, and drainage exemptions protect margin from technical soft-cost creep.
🔍 Pipeline Signals to Watch (Q1 2026)
South Austin (78745): Rising volume of Site Plan Lite filings in the 5–16 unit range, quietly replacing traditional small multifamily projects due to faster approval velocity.
East Riverside / ETOD Zones: Early pre-filings suggest future height bonuses tied to light-rail station planning. Expect quiet positioning ahead of formal ETOD overlays.
🔎 Tracked through zoning filings, SP submissions, and city agendas. 📬 Delivered weekly in ATX - Zoning Watch — where policy becomes strategy.