AUSTIN — Austin officials have approved a contract with Hormel Foods Corp. to let it build a new Spam Museum on vacant land in downtown Austin.
The Austin City Council on Monday unanimously approved a contract that says the city will help redevelop and enhance the downtown and return the land to private ownership.
The city is giving the land to Hormel because it wants the new museum (the present one is a few blocks north of downtown) to be an anchor and draw for downtown. Hormel said it plans to open the 13,500-square-foot museum in the spring of 2016.
Under the contract, Hormel gets the land but must build the building of at least a certain size and height. If it doesn't finish the project in three years, the city has to right to take back the land, according to the contract. Hormel can't sell or do other things with the land except develop it for the museum project.
The city agrees to demolish two buildings adjacent to the lot that was made vacant following a fire several years ago. One building is empty, and the tenant of the other will move to a bigger building nearby. The company in that building will move to one the city now owns in its industrial park.
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The city also agrees to develop recreational vehicle parking and add more parking in the area as well as do street improvements in the area. They will cost an estimated $537,000, and the city will try to get a state grant to pay for half of it. The council agreed to apply for that money.
The existing Spam Museum is expected to close this fall and eventually become Hormel Foods Corp. offices.
