Oracle Corp. Expansion Plans Prompted Mass Evictions

EAST AUSTIN, TX -- The site of imminent local expansion for Oracle Corp.—the world’s second-largest software firm with revenues of more than $38 billion—is the same site where low-income residents living at the Lakeview Apartments were evicted in advance of the land sale accommodating the tech company’s growth.

Oracle Corp. officials Tuesday announced plans to expand their presence in Austin, detailing plans to build a massive, 560,000-square-foot corporate campus situated on 27 acres of land overlooking picturesque vistas fronting Lady Bird Lake, just east of the downtown Austin.

Those idyllic vistas were once enjoyed by residents of Lakeview Apartments, an apartment complex comprising a largely low-income, minority demographic before tenants were unceremoniously asked to leave in advance of Oracle’s arrival.

The software giant bought the land from Austin-based Cypress Real Estate Advisors for an undisclosed amount, according to the Austin American-Statesman. Not noted in that report is that as the land transaction deal neared consummation earlier this year, efforts to evict remaining Lakeview Apartments tenants intensified.

Two months before Oracle’s expansion announcement, Lakeview Apartments tenants were being asked to leave in no uncertain terms, as detailed in an Oct. 2 article in the Austin Chronicle.

“This letter is to remind every resident here at Lakeview the official date we will be closing is Sept. 30, 2015,” former landlords wrote in reference to the property sale. “All residents must be out by this date. The property will no longer have water or electricity in our buildings.”

Those demands were largely effective; by the time property owners threatened to cut off utilities at the complex—comprising 224 units at 14 buildings—all but some 30 residents had moved out. Those left were left baffled by the sudden urgency demanding their departure.

“We don’t ask for much, just a little bit of time to find another place,” tenant Joel Jimenez told the Austin Chronicle in his native Spanish. At the time, Jimenez as having trouble finding another affordable apartment for his family.

In their corporate expansion announcement, Oracle officials made mention of purchasing an apartment complex as part of their land purchase, a property now intended as employee housing for a millennial workforce seeking “…a work-life balance.”

As part of the Oracle expansion announcement, Austin Mayor Steve Adler cryptically mentioned his intention to seek input from Oracle and other expanded-minded firms on ways to promote local affordable housing development—even while avoiding direct reference to the Lakeview Apartments.

“I look forward to working with major employers like Oracle to tackle our biggest challenges, including Mobility and Affordability,” Adler said as part of a prepared statement.

Oracle’s expansion into a formerly low-income enclave is sure to reignite debate of the gentrification wave sweeping over parts of Austin—particularly the East side that’s become trendy for high-end commercial development of late--often at the expense of longtime, lower-income residents.
Patch Media has reached out to Oracle Corp. officials and municipal leaders for comment, and will report further on the issue as developments warrant.