Austin, July 29, 2025
News Summary
Austin’s city council has approved the construction of a new hotel and convention center near the Circuit of the Americas. While city officials believe this will boost tourism and the local economy, residents are expressing concerns over the prioritization of such developments over urgent community needs, particularly food accessibility in Del Valle. The project will be privately funded and could take over a year to develop, including amendments for state tax rebate qualifications.
Austin has approved the development of a new hotel and convention center located near the Circuit of the Americas (COTA), a decision that has raised concerns among some local residents about prioritizing community needs. The city officially took ownership of 21 acres of land adjacent to the racetrack, allowing it to collect hotel occupancy tax from the state, which is expected to boost local tourism and improve the economy during times of lower than anticipated sales tax revenues.
Mayor Pro Tem Vanessa Fuentes emphasized that this development will not financially burden the city, as it will be funded and managed privately by RIDA Development Corp. Fuentes stated that attracting additional tourism is essential for Austin, particularly as the city navigates the impact of declining sales tax revenues.
While the city government believes the hotel and convention center will generate new investments in the area, residents like Joe Sayer are advocating for other local priorities to be addressed first, such as improving food accessibility in Del Valle, known for being a food desert. Currently, residents in Del Valle face considerable travel to obtain basic necessities, as the area lacks a major grocery store. Efforts from H-E-B to establish a store since acquiring land in 2016 have not yet come to fruition, leading to frustrations in the community.
Fuentes recognized that the pace of growth in Austin has not met its targets but remains hopeful that the new development will pave the way for further investments and economic opportunities. The next steps toward the realization of the hotel and convention center project will include amending the planned unit development, a process that could take at least one year. Recent procedural measures have been set forth by the city to ensure the project qualifies for state tax rebates, with plans for environmental site assessments commencing before further progress occurs.
Simultaneously, the Austin City Council has spearheaded a $1.6 billion reconstruction project for the downtown convention center, which is expected to reopen in spring 2029. The intention behind this renovation is to expand available event space significantly, totaling approximately 550,000 square feet indoors and an additional 70,000 square feet outdoors. Nonetheless, concerns persist regarding the financial model used for the downtown project, particularly in light of the absence of a public vote on its funding.
The new hotel and convention center near COTA aims to provide around 180,000 square feet of meeting space, catering to smaller organizations and gatherings compared to the larger downtown facility. As part of the democratic process, a petition seeking a public referendum regarding the downtown convention center project has gathered 18,000 out of the required 20,000 signatures.
Moving forward, the city anticipates enhanced community involvement and engagement as it strives to balance tourism development with addressing vital local needs such as food accessibility.
Key Features of the New Development
| Feature | Details |
|---|---|
| Location | Near Circuit of the Americas |
| Land Size | 21 acres |
| Meeting Space | Approximately 180,000 square feet |
| Funding | Privately financed by RIDA Development Corp |
| Projected Timeframe | Amendment process to take at least one year |
| Tourism Impact | Aims to boost local economy |
| Environmental Assessment | Planned before further development |
FAQ
What is the location of the new hotel and convention center?
The new hotel and convention center will be developed near the Circuit of the Americas in Austin.
Who is funding the new development?
The development will be funded and managed privately by RIDA Development Corp.
How large will the meeting space be?
The new facility will provide approximately 180,000 square feet of meeting space.
What local concerns have been raised about the project?
Residents have expressed concerns about prioritizing the hotel development over other local needs, such as addressing food accessibility issues in Del Valle.
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Additional Resources
- KVUE News
- Wikipedia: Austin
- Austin Monitor
- Google Search: Austin Convention Center
- CoStar
- Google Scholar: Austin Convention Center
- Connect CRE
- Encyclopedia Britannica: Austin
- Austin Monitor Newsletter
- Google News: Austin Convention Center
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
