Convention center plan: Expand by four blocks
City financed proposal would cost up to $600 million, fifinish by 2021.
A city-commissioned master plan for the Austin Convention Center recommends a multiblock expansion that would cost hundreds of millions of dollars and dramatically increase the facility’s footprint.
The expansion, as proposed by the Gensler consulting fifirm, would occupy all or part of four city blocks and cost between $400 million and $600 million — and that’s before land acquisition costs are factored in, according to documents obtained by the American-Statesman.
The report — commissioned by the city in 2014 — was presented Monday to the City Council’s Economic Opportunity Committee.
City Council Member Ellen
Troxclair, chairwoman of the committee, declined to comment Monday, referring questions to city staff. The report has not yet come before the full City Council.
The Austin Convention Center has 881,400 gross square feet, according to city figures, with 369,132 square feet of exhibit and meeting space. The proposed expansion calls for adding 200,000 square feet of exhibit space, 65,000 square feet of meeting space and 56,700 square feet of ballroom space.
At least some of the money for the project could come from an increase in the city’s hotel occupancy tax, according to the report.
Preliminary plans call for construction to start in November 2018, with completion set for November 2021.
The expansion is proposed for land west of the existing convention center, across Trinity Street. Skywalks would be constructed so that the city wouldn’t have to close Trinity. Portions of two other streets would close, though — East Second and East Third streets between San Jacinto Boulevard and Trinity Street, according to the report.
Businesses could be displaced as well, including several restaurants, such as Fleming’s, P.F. Chang’s, Micheladas, Gus’s Fried Chicken, MAX’s Wine Dive and Vince Young Steakhouse.
The convention center expansion would likely include retail and restaurant space, plans indicate, meaning it’s possible some of the displaced businesses could relocate.
“We would like to negotiate and try to work out public-private partnerships and perhaps get some of the restaurants and/or other venues within there,” said Mark Tester, director of the Austin Convention Center Department. And, as city officials have previously mentioned, “eminent domain would remain an option,” Tester said, “but we look forward to peace- ful negotiations hopefully.”
Robert Knight, a landowner whose real estate office is in the block immediately west of the convention center, said he has not been approached by the city about his property.
The last time the convention center was significantly expanded was more than a decade ago. Since then, many other cities, including nearby San Antonio, have significantly upgraded their facilities.
San Antonio is in the midst of a $325 million renovation and expansion of its convention center. The project is set to wrap up next year. The San Antonio Convention Center currently has 1.3 million total square feet, with 440,000 square feet of contiguous exhibit space. The expansion project will take that contiguous exhibit space to 514,000 square feet.
The Gensler plan also suggests a high-rise hotel on a half-block site that faces East Cesar Chavez Street. White Lodging recently signed a longterm ground lease for the land and is planning to build a hotel there in the future.
The proposed convention center expansion is expected to help land larger gatherings, which would help fill that hotel, as well as other new hotels that have opened recently and ones currently under construction, such as the 1,066room Fairmont, which will have a direct connection to the convention center.
“Austin’s convention center offers, on average, less than half of the usable space than that of our peer cities, yet Austin is clearly the most sought-after destination of the competitive group,” said Deno Yiankes, president and CEO for investments and development at Merrillville, Ind.-based White Lodging Services Corp., Austin’s largest hotel operator. “We remain fully supportive of the convention center expanding as it also presents an opportunity to activate the immediately surrounding area as well.”
Even before it opens, the Fairmont says it has already booked thousands of room nights.
“Austin continues to experience strong demand from all market segments, especially in-house group meetings and citywide conventions,” said Doug Manchester, president of Manchester Texas Financial Group, developer of the $350 million Fairmont. “Leisure and individual business travel is also a strong contributor to the growth in tourism to Austin.”
Tourism is a lucrative industry in Austin, supporting hotels, restaurants, taxicabs and countless other businesses. In 2014, the industry employed almost 50,000 people and had a $5.9 billion impact on the local economy, according to the governor’s office.