12-Floor "Capital Terrace" Development Proposed

A 12-story multi-use project near the Doubletree hotel on Lavaca and 14th street that was originally announced in 2008 is likely to rise next year. The developer, Palmco, is asking the city council on December 10 for a height variance to allow construction of the 163-foot tall building in an area zoned for construction of buildings as tall as 120 feet.

Palmco, the developer, is proposing that "Capital Terrace" will include apartments, offices, shops, five levels of parking, and a restaurant within just a few blocks of the Capitol. Two of the project's parking levels will be located underground. It would have 30 apartments designed for lobbyists and others with business at the Capitol, as well as five floors of office space.

While it is an unusually large project for the north end of downtown, the addition of extensive ground floor retail and restaurant space may help with the creation of a new walkable district. Today, there is minimal pedestrian traffic in this corner of downtown.

The site consists of four lots on just over one-fourth of a city block. There are four buildings on the site, but only one active lease. If they get the appropriate approvals, Palmco would start construction in the second quarter of 2010.