ATX Pulse 8/27-28/26 (free): Austin City Council Approves $648M Debt Sale // Austin City Council Begins Writing Rules to Manage, Potentially Ban Large Scale Data Centers // Outgoing Fire Chief Baker Honored // Evictions Spike at Community First Village? // Tesla Opens Battery Cathode Plant

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THURSDAY, AUGUST 27, 2026 - FRIDAY, AUGUST 28, 2026

Compiled by Matt Mackowiak

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TOP NEWS

"Austin City Council OKs up to $648 million debt sale" via Bond Buyer – Austin, Texas, expects to bring a competitive issue to market in September after the city council on Thursday approved up to $648.4 million of property tax-backed debt.

The offering comes after Moody's Ratings in July raised the city's general obligation rating a notch to Aaa, citing improvements in employee pension and other post-employment benefits liabilities.

Austin has triple-A GO ratings from S&P Global Ratings and Fitch Ratings, which restored its rating to AAA in September, following a downgrade to AA-plus in 2021. These two rating agencies are expected to rate the upcoming issue, according to a draft preliminary official statement for a Sept. 22 sale. (Bond Buyer)

"Austin begins writing new rules to manage, potentially ban large-scale data centers" via KUT – Austin has taken its first steps toward regulating certain data centers within city limits.

The Austin City Council on Thursday initiated a months-long process that tasks staff with creating new rules and requirements for large-scale facilities, including location, size and environmental considerations. Joi Harden, Austin’s zoning officer, said the city’s existing rules allow for traditional data centers, those that use up to 20 megawatts of electricity. One megawatt is enough to power about 250 homes, according to Austin Energy.

Joi Harden said staff have received some inquiries indicating that larger facilities could be on the horizon, but there are not any confirmed requests to bring massive data centers to Austin at this time. There are 10 smaller centers in the city, she said. But developers across the country are building larger data centers that require more land, water and electricity. Harden said Austin's land code doesn’t have specific rules for facilities that use more than 75 megawatts of power, enough to power nearly 19,000 homes.

“As the technology industry evolves, data centers are getting much larger in size and capacity,” Joi Harden said. “Each facility has different characteristics, capacity, physical size and operational features.” She said having clear guidelines will allow the city to track, regulate and even ban large-scale data centers. She said that could include creating standards for water, noise, heat, lighting and site design. Mayor Kirk Watson said the city aims to be thoughtful and thorough as it works to craft regulations. Council Member Vanessa Fuentes and at least four other council members, including Ryan Alter, Mike Siegel, José Velásquez and Krista Laine supported a complete ban of what are called hyperscale data centers. (KUT)

"Feds raid Cadence McShane offices in San Antonio, Austin and Plano amid HUD probe" via The Real Deal – Federal authorities raided Cadence McShane Construction Company offices across Austin, San Antonio and Plano Wednesday.

Around 15 federal and state officers entered the Austin offices of Cadence McShane and exited with several boxes and cell phones, according to eyewitnesses.

Plano-based Cadence McShane would later confirm the federal activity at its Austin office as well as its locations in San Antonio and Plano. Cadence McShane told the outlet that it fully cooperated with the agency that was identified as the U.S. Housing and Urban Development, and that no arrests were imminently made.

Two Cadence McShane employees, identified as Randall Molnar and Andrea Hughes, allege that the company’s 17 percent profit, a figure well over the typical HUD 10 percent profit limit for low income housing projects, is the result of overcharging.

(The Real Deal)

"Evictions spiked at this tiny home village for homeless Austinites. Why?" via KUT – In a North Austin parking lot on a muggy, rainy afternoon, an old dog is practicing a new trick. Lala, a white and grey spotted pitbull mix, is nestled between the legs of her owner and 14-year companion, Lynda January, who tools around on a motorized scooter outside her apartment building.

They’re both getting used to the scooter January bought a few months back — and the North Austin apartment. For most of Lala’s life — and nearly a decade of January’s — they lived in an RV at the Community First Village in East Travis County. Then, after an Lala bit another dog, January was evicted by her across-the-street neighbor who runs the village, Alan Graham.

January was at a community event when Lala bounded out of her trailer door that had come loose after eight years of wear and tear, biting a neighbor’s small, off-leash dog. January said she tried to make it right. After paying for the dog’s vet visit, which zeroed out her savings, January said she was given an ultimatum: Give up Lala or leave.

January is one of dozens of Austinites who’ve had evictions filed against them by the Community First governing nonprofit, Mobile Loaves and Fishes, in recent years. The multimillion-dollar Catholic organization run by philanthropist Alan Graham has seen a rise in evictions since the pandemic. While advocates say that spike is concerning, Graham said it's just part of doing business at the development that’s drawn national attention as a new model to get people off the streets. (KUT)

"Austin leads US wildfire risk outside California" via CIN – Austin has the largest concentration of at-risk homes of any metro area outside California, with more than 100,000 properties and $49.2 billion in reconstruction cost value exposed to wildfire, according to Cotality's 2026 Wildfire Risk Report, released Aug. 12.

Austin Mayor Kirk Watson cited the report at an Aug. 25 press conference with Travis County Judge Andy Brown, as the county remains under a burn ban with hot, dry conditions keeping wildfire risk elevated heading into fall.

Wildfire risk isn't limited to heavily wooded, sparsely populated areas, said Jeff Kennedy, assistant chief with the Austin Fire Department, at the conference. "The reality is that wildfires can and do happen in and around large urban cities," he said, noting embers can travel up to a mile and ignite homes, schools or businesses far from the original fire. (CIN)

"Hollywood to Texas? Austin thrown into Paramount merger fight" via KXAN – Austin has been thrown into the Paramount merger fight, with the possibility of Paramount Skydance Corp. moving to the city. Or, Texas could be being used as a leverage play amid a testy legal fight over the company's $110 billion merger with Warner Bros. Discovery.

That's an answer many are waiting for after several media reports over the last few weeks have suggested Paramount boss David Ellison could use a public fight with California leadership as the motivation to move the company's operations out of California, which is leading a multi-state lawsuit to halt the merger.

Tennessee has reportedly pitched David Ellison on an HQ move. But the New York Post went a step further on Aug. 19 and disclosed the company was in advanced negotiations to establish a prospective movie and TV studio in Austin.

The outlet reported, citing three people with direct knowledge of the deal, that the studio was in talks on a lease of Bluebonnet Business Center, a 531,000-square-foot industrial park at 9219 Old Manor Road. (KXAN)

"McCallum High seeks community help for portable fans amid air conditioning issues" via KVUE — McCallum High School is experiencing air conditioning issues and the school is now asking for the community's help in donating portable fans, according to a letter sent to staff and families Thursday.

School officials said the air conditioning issues are impacting multiple portables and classrooms, leaving them without working air. Officials are working with the Austin ISD operations team in an effort to address the concerns.

Schools officials say several of the issues have been fixed, however they said the "remaining issues will take a little longer to complete." It is unclear how long those classrooms will be without air at this time.

With temperatures at a high of 101 degrees Thursday for the Austin area, the school said "standard desktop units are simply not enough to keep a full classroom comfortable in these high temperatures." Teachers have also brought personal fans to help cool the area, but officials urge more to help. (KVUE)

THE BLOTTER

"1 dead after under-construction house collapses on workers in south Austin" via KXAN – A house being built at 12002 Salvador St. in the Estancia development in south Austin collapsed under 50-70 mph gusts ahead of storms arriving Thursday night, according to Fire Chief Chris Barron with Travis County ESD 5.

Two people were caught under the falling structure, with one found dead when first responders arrived, Barron told KXAN. Extracting the other worker took an extended amount of time due to the collapsed building's instability, and he was airlifted to Dell Seton for treatment.

He was conscious and spoke with first responders, but suffered injuries to his leg and ankle where the building pinned him, according to Barron. Information on his condition was not available Thursday night.

"Basically, the entire house collapsed," Barron said. He added that a nearby homeowner reported trees blowing nearly sideways under strong winds. Barron said the structure was still in the framing stage and may have lacked enough support to withstand gust of up to 70 mph that were reported in the area. (KXAN)

"Scooter rider killed on MoPac was traveling against traffic, police say" via AAS – A man riding a scooter against traffic on MoPac was killed early Wednesday after he and a driver trying to avoid him moved into the same lane, according to new details released by Austin police.

Lee Anthony Chavez-Avera, 32, died at the scene of the crash, which shut down all northbound lanes of MoPac near 45th Street for about five hours and snarled traffic during the Wednesday morning commute.

Austin police officers responded at about 4:59 a.m. to the 4600 block of North MoPac Expressway for the collision involving a vehicle and Chavez-Avera, who was riding a personal scooter.

Police said a preliminary investigation found Chavez-Avera was traveling against the flow of traffic when a driver attempted to avoid him by changing lanes. Chavez-Avera steered the scooter in the same direction, and the two collided, according to police. (AAS)

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