Graham Development’s plan to redevelop a section of South Congress Avenue in Austin is facing uncertainty after Travis County commissioners voted to use eminent domain to acquire a 150-acre former landfill at 9500 East Highway 290. The move could disrupt Graham’s mixed-use project, which is located nearly 15 miles away.
The issue centers on the need to relocate LKQ Auto Salvage, a scrapyard currently operating at 7900 South Congress, which holds a lease through 2036. Redevelopment of the site cannot proceed unless the scrapyard moves. Graham Development and landowner Moo Moo Meadows filed a lawsuit against Travis County in July, alleging that the county illegally blocked the relocation of the scrapyard while failing to address contamination issues at the landfill.
County officials have stated that they require the East Austin tract for landfill maintenance, repair, and possible parkland use. No cost estimate has been provided for the acquisition, and officials declined to explain further why it was necessary. According to an unsigned resolution included in meeting documents, voluntary acquisition terms could not be reached between the parties.
Corbin Graham, partner at Graham Development, said: “If the county takes this site, I will lose my only viable landing spot for LKQ.” He explained that scrapyards need very low-cost land—less than $4 per square foot—which is unavailable along South Congress or Highway 290. He added that closed landfills are suitable because they allow storage of cars on compacted gravel without requiring expensive engineering work.
Environmental concerns about the landfill have been documented over several years. The site stopped accepting waste in 1982. Tests conducted earlier this year found unsafe levels of arsenic, barium, and lead in leachate and groundwater. The lawsuit claims that Travis County ignored Texas Commission on Environmental Quality directives to close and remediate the site and exceeded its authority by blocking relocation plans for LKQ Auto Salvage.
The proposed development by Graham includes more than 1,200 apartments as well as office space, retail space, and affordable housing units. To help fund cleanup efforts at the landfill if it becomes available for relocation purposes, Graham has suggested creating a tax increment reinvestment zone that could generate approximately $20 million in addition to $10 million already budgeted by Travis County.
Until legal proceedings regarding eminent domain are resolved, progress on one of South Austin’s largest potential redevelopment projects remains stalled due to unresolved issues with relocating LKQ Auto Salvage from its current location.
