In addition to new HOV lanes and a proposed boardwalk, TxDOT agreed to engineer the freeway for caps in some areas, but the city would have to fund their construction.

A letter sent by Austin mayor Kirk Watson to opponents of a freeway widening project outlines proposed changes to the Texas Department of Transportation (TxDOT)’s Interstate 35 expansion plan, which is being opposed by resident groups and some local officials.
According to an article by Nathan Bernier for KUT, “Adjustments to the once-in-a-generation project include the possibility of covering larger sections of the highway north of downtown, constructing a $25 million boardwalk on Lady Bird Lake and filtering stormwater runoff into the Colorado River.”
Bernier adds, “TxDOT's transformation plans include lowering the main lanes for much of the distance between Oltorf Street and Airport Boulevard. The City of Austin hopes to cover these lowered portions of the highway with "caps" — basically large decks — that could support buildings at least two stories tall. TxDOT won't pay for the caps, but will engineer the highway to allow for their installation.” The agency has agreed to lower a third portion to make way for a cap.
As part of the project, “TxDOT is set to construct a near half-billion-dollar drainage system, which includes a tunnel under Cesar Chavez Street that would direct stormwater runoff into the Colorado River near U.S. 183.” But according to the city’s Watershed Protection Department, “The current design would not have the capacity to treat all stormwater runoff.”
The article details other parts of the TxDOT plan, such as new high occupancy vehicle (HOV) lanes and the $25 million boardwalk along Lady Bird Lake that would replace other parkland that will be lost to the project. The expansion has faced staunch opposition from local residents, including three city council members, from the start.
FULL STORY: Austin's I-35 plans revised to include new cap and a $25 million boardwalk

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