The property, bounded by I-35 on the west, 11th Street on the north, San Marcos Street on the east and the alley between Seventh and Eighth streets on the south, overlooks downtown Austin and beyond. The land's development could lead the next phase of development in the city's eastern corridor. The property's development has been delayed by wrangling between developers and neighborhood groups over the inclusion of a residential component.

Matt Mathias, a Riata principal, tells GlobeSt.com that the zoning changes allow the developer greater flexibility in where to place buildings on the property. He also says his firm has not decided whether to develop the property itself or to sell parts of the property for others--such as a hotel company--to develop. "Now that the zoning process is complete, I'll be calling back all those prospects and deciding on a course of action," he says.

With the rezoning, council also has approved incentives of up to $22 million for Riata. It includes $13.2 million in property tax refunds and money for waived fees and reimbursed utility costs and job training. Also, Mathias says, the property has been designated an economic development zone.