Development may displace Las Manitas
Finley Co. says it's in talks with a developer, but stressed no deal has been finalized.
By Shonda Novak, Claudia Grisales

AMERICAN-STATESMAN STAFF

Friday, May 26, 2006

Another downtown high-rise could be destined for Congress Avenue, one that could displace the beloved Las Manitas Avenue Cafe, along with folk-art store Tesoros and bilingual day care Escuelita del Alma, where parents already are mobilizing to save the school.

The potential mixed-use project would take up most of the block on the east side of Congress between Second and Third streets on land owned by the Finley Co.

The company is in talks with a developer, Vice President Tim Finley confirmed Thursday, but he emphasized that no deal has been struck. He didn't identify the developer.

"This is a prime piece of property our company has owned for about 20 years," Finley said. "We have been assembling it for future development all these years, and when the time is appropriate, I think the property should be developed."

Cynthia Perez, who owns Las Manitas, at 211 Congress Ave., with her sister Lidia Perez, said a high-rise at the site would be "unfortunate." The lease for the Austin institution, which has been frequented by Laura Bush and actress Meg Ryan, expires at the end of the year.

"You can't print what I think," Cynthia Perez said. "Everything is for sale in Austin right now."

Finley said numerous developers have approached the company over the years, "and that continues to this day."

With more than a dozen downtown residential and mixed-use projects planned, "downtown is obviously hot," Finley said. But, he added, "whether or not we will have a deal at this location is unknown at this time."

The Perez sisters opened the Tex Mex eatery in 1981. They also helped start La Escuelita del Alma next door to provide affordable day care for their workers.

In a letter to parents this week, the school's director said the landlord told the day care it is a "very strong possibility" its lease won't be renewed when it expires Dec. 1, citing talks with an investor who would buy the block and build a high-rise.

Dina Lopez, the day care's director, said every effort will be made to find a new home for the school and its 125 children, many of whose parents work downtown. She and a core group of parents plan to meet today to strategize about options.

"All of my investment is in this building," Lopez said. "I don't have any funds for starting all over somewhere else. I really don't want to close the business down."

Displacing Las Manitas "would be tragic for Austin," said Michael O'Brien, an Austin photographer who has frequented the restaurant since his first visit in 1989.

O'Brien shot photos of Las Manitas as part of a $6 million advertising campaign for a North Texas insurance company that began running last month in dozens of major publications, including the Wall Street Journal and People Magazine.

Because of its prime downtown location, however, it's "inevitable and certainly desirable" that the Finley property be redeveloped, said Michael Knox, a city official who works on downtown projects.