South Congress merchants fret about light rail
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A view north from South Congress earlier this year. Photo: Aaron E. Martinez/The Austin American-Statesman via Getty Images
Businesses on Austin's trendy South Congress strip are worried about what light rail construction will mean for their bottom lines.
Why it matters: When the planned light rail project — already delayed by politics, inflation and redesigns — finally does break ground, expect lots of orange cones and parking disruptions as construction turns the area into a jackhammer and steamroller zone.
Catch up quick: In January 2025, transit planners said construction on Project Connect would start in two years.
- As it currently stands, the nearly 10-mile, all-electric train line will feature 15 stations running on Guadalupe from 38th Street to downtown, and from downtown to the east along East Riverside and south on South Congress to Oltorf.
- That's a scaled-down plan that once had the light rail reaching the airport.
In February, the Austin Transit Partnership (ATP), set up to design, finance and build the project, selected a construction team for the job.
- At the time, Austin Mayor Kirk Watson said the milestone showed "real progress toward improving mobility, supporting long-term affordability and strengthening our economy."
What they're saying: "It's going to be years of disruption," Brandon Hodge, president of the South Congress Merchants Association and owner of Big Top, a candy store, tells Axios. "They're going to be scraping from our front door to the front door across the street."
- He said the project will upset a recently adopted paid parking system that was meant to satisfy merchants and neighbors — and that South Congress shops were not adequately consulted on the project and will not be sufficiently compensated for their losses.
Zoom in: Even as apartment developers have touted their projects' proximity to light rail, some businesses have cited the project in their decision to close.
- In 2024, Wheatsville Co-op general manager Bill Bickford announced the Guadalupe location would close by the end of 2026, in part because Austin's planned light rail will "limit our ability to effectively operate a grocery store at our present location."
- Torchy's has also closed a location on Guadalupe over planned construction associated with the plan.
The other side: ATP executive director Greg Canally has said the rail project "will transform how we move around our city as well as bring thousands of jobs to Texas."
- Transit officials "will know more about the schedule for construction activities in specific areas later in the year," Jennifer Pyne, executive vice president for planning and community at ATP, tells Axios in an email.
- ATP is "engaging with the Austin community, including stakeholders along South Congress Avenue and city staff, to refine design details and keep them apprised of the project's progress," Pyne adds.
The intrigue: Austin attorney Bill Aleshire, who has fought the project in court, tells Axios the most likely way to stop the light rail at this point is by electing new city council members.
- "The city council could pull the plug," he says, calling Project Connect "an illegal, unaffordable, special interest-driven cataclysmic mistake."
Reality check: Withdrawing from Project Connect has not emerged as a major campaign issue in progressive Austin city council races.
Yes, but: The transit plan approved by voters in 2020 depends on the federal government to pay for up to half the $7.1 billion rail project.
- Federal officials gave the light rail project a "medium-high" rating last fall in its annual report on funding recommendations, suggesting the Trump administration remains committed to the project.
What's next: The ATP board meets next on June 17 and is likely to hear a timeline update from the construction team.