I'd heard different things about what these ordinances do, so I looked at them myself and prepared my own summary.
http://www.austincontrarian.com/aust...ordinance.html
1. Restaurants are limited to 70 decibels. No exception. There is no variance available to get them back to 85.
2. In order to get the 85 decibel limit, a restaurant will have to be reclassified as a cocktail lounge. It's not at all clear that a bona fide restaurant like Shady Grove meets the code's definition of cocktail lounge. Also, any restaurant that wants to make the switch will need CS-1 zoning, which is pretty rare.
3. Permits for outdoor music venues are now completely discretionary. City staff can approve them or deny based on loose criteria. Neighborhood associations and homeowners are entitled to lobby against the permit. This includes any application to renew a permit.