AUSTIN, Texas — City leaders are dropping plans to turn a southeast Austin hotel into housing for the City's homeless.

In 2019, Austin leaders were considering buying the Microtel Inn and Suites located on Metro Center Drive near the Austin airport.

However, Assistant City Manager Rodney Gonzales told Austin City Council members on Tuesday that they're no longer pursuing that hotel.

In November, council members approved the plan to buy and renovate a different hotel – the Rodeway Inn off of Interstate Highway 35 just south of Oltorf Street.

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Although the City is dropping plans to turn Microtel Inn into homeless housing, the staff is still working to find other potential properties, according to a Jan. 17 memo.

"After performing additional due diligence regarding the zoning and site issues for the Microtel located at 7704 Metro Center Dr., the staff is no longer pursuing this property as a potential acquisition," the memo said. "Staff is continuing its progress on the due diligence leading to the acquisition of the Rodeway Inn located at 2711 South I-35. Staff continues to research and identify potential properties utilizing the process for selection as provided to Council on Nov. 26."

The City is still on a 90-day due diligence period before the purchase of the Rodeway Inn hotel is complete, according to the Austin Business Journal.

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