Downtown Austin Demo Plan Puts Shiner’s Saloon in Crosshairs

A pair of aging buildings at one of downtown Austin’s busiest corners could soon come down, clearing the way for new development — if the city’s Historic Landmark Commission signs off.

On Wednesday, the commission is set to consider a demolition permit for 422 Congress Avenue and 101 West Fifth Street, according to the meeting agenda. Los Angeles-based Karlin Real Estate, which owns the properties, has already filed the application, and city staff are recommending approval, according to the Austin Business Journal.

The proposed teardown would directly affect Shiner’s Saloon, the longtime bar that has occupied the ground floor space since 2008. Co-owner and manager David Jalufka said the bar’s lease runs through the end of April, though renewals in recent years have been short-term. He said he would prefer to keep Shiner’s in place, but acknowledged its future is uncertain.

The two buildings date back more than a century combined. The structure at 101 West Fifth Street was built in 1914, while the building at 422 Congress Avenue followed in 1940. Despite their age, neither property contributes to the Congress Avenue National Register District, according to commission documents, weakening any preservation argument. The properties once belonged to Nate Paul’s World Class Holdings.

City staff’s recommendation includes conditions: salvaging any remaining original materials discovered during demolition and ensuring the work does not damage the structure at 416 Congress Avenue, an 1890s-era historic building that shares a wall with the sites slated for removal.

Karlin declined to comment on its plans. A site plan application has been filed with the city, but its status is listed as “not started,” offering no clues about what might rise in place of the existing buildings.

The property spans just 0.17 acres, and developers have the potential to maximize the vertical space. The properties sit at the southwest corner of Congress Avenue and West Fifth Street, a prime downtown location where density can soar.

Under Austin’s land development code, a project participating in the Downtown Density Bonus Program could reach a floor-to-area ratio of 25-to-1, with no hard height limit, subject to City Council approval.

That potential is partially complicated by a Capitol View Corridor slicing through a portion of 422 Congress Avenue, imposing height restrictions meant to protect sightlines to the Texas State Capitol. Still, most of the site lies outside the corridor, opening the door to a staggered tower design that steps down near Congress and climbs higher toward the rear.

Downtown Austin is currently capped at 350 feet after the City Council imposed a temporary height limit in October. But for developers willing to pay into the bonus program, the sky remains the real limit.

— Eric Weilbacher