With the Texas Department of Transportation finalizing its renovation plans for Interstate 35 through Austin on Oct. 1, local community members and business leaders discussed the effects of large Austin infrastructure projects on small businesses downtown.

Nicole Klepadlo, interim executive director for the Red River Cultural District, said larger transit-oriented infrastructure projects like Project Connect and the TxDOT’s interstate expansion have the potential to draw more people to Austin. 

“If (these projects) are not done in a way that works with the community versus (a way that) works against the community, they do run risks of business displacement or cultural displacement,” Klepadlo said. “(Our concern is) just trying to understand there’s a bigger vision here.” 

Businesses already face multiple challenges downtown, including music venues struggling with higher insurance rates and operating costs and businesses not seeing the same amount of foot traffic they saw before the pandemic, Klepadlo said. She said there needs to be a focused approach to how larger infrastructure improvements retain small businesses and cultural assets downtown. 

“(If) we’re not going to think about nurturing the environment and the business environment around it, then you’re going to end up with a bunch of businesses that are closing,” Klepadlo said. “The opportunity to create more robust cultural districts should go very much hand in hand with the expansion of a convention center (and) the expansion of a transit plan.” 

Annick Beaudet, a mobility officer for Project Connect, said the light rail system aims to manage Austin’s growth in an efficient, affordable and sustainable way. 

The coalition is working to understand the project’s impacts that can help with business assistance and has staff that has worked on other large light rail projects.

“They’ll be bringing that experience with assisting local businesses and making sure that we’re mitigating correctly,” Beaudet said. 

Downtown Austin Alliance launched its Downtown Austin Space Activation Program in June, which transforms vacant storefronts downtown and allows businesses and artists to showcase their works downtown in these spaces, as there is a lack of affordable spaces downtown, according to their website.

“We have crafted the platform for organizations to share their services and authentically engage with the community,” said Sueitko Zamorano-Chavez, an Austin artist who utilized the program, in an email statement. “Folks walk away with community bonds and authentic connections.”

Wesley Lucas, director of communications for Visit Austin, a nonprofit contracted by the city to promote tourism for Austin, said small businesses thrive from big events and exposure when visitation is high. 

“Austin is not the only city that is dealing with (affordability issues),” Lucas said. “Everything’s costing a little bit more these days. Travel and tourism is not immune to that, but we’re not the only city that’s experiencing things costing a little bit more.”