The Texas Facilities Commission signed off on a 2018 update to the Capitol Complex Master Plan Thursday, clearing the way for initial construction on the first phase of the Austin complex expansion to begin in July.

The first phase, a $581M investment, will unfold in six construction packages over four years. Construction, with Balfour Beatty acting as construction manager with design by Page, will add 1M SF of office space in two buildings, allowing for further consolidation of leased state agency office space. The only agency confirmed to move into the new space is the Texas Lottery Commission, which will vacate its Sixth Street location.

A 14-story office building, on the lot across from the Bob Bullock Texas State History Museum, will be 605K SF. A second 12-story building, with 420K SF of office space, will be located west of the LBJ Office Building. The Capitol Complex Physical Plan also will be expanded to accommodate the new construction.

A gateway to the Capitol Complex will be created at Martin Luther King Jr. Boulevard and Congress Avenue, with a three-block mall promenade stretching from Martin Luther King Jr. Boulevard to 15th Street. Five layers of parking, adding 4,400 parking spaces to the Capitol Complex, will be built under the mall.

The promenade, known as the Texas Mall, will have meeting and event space and could include public-private partnerships. Evaluation criteria will include monetary savings, community involvement and past performance of the proposed bidder.

Funding for Phase 1 was approved by the legislature in 2015. Funding for two additional phases has yet to be approved by lawmakers.