Austin is poised to advance its plans for the expansion of the Austin Convention Center following a ruling from Travis County District Court Judge Sherine Thomas. On Thursday, the judge determined that the city’s financial strategy for the project is compliant with legal standards, clearing the way for implementation.
Last month, the Austin City Council greenlit a plan to issue bonds worth up to $1.35 billion to finance the expansion. This initiative will leverage hotel occupancy tax revenues—fees accrued from guests staying in hotels, motels, and short-term rentals—to help manage the associated debt.
The ruling signifies that the project can proceed as intended. A spokesperson for the city expressed appreciation for the court’s careful consideration of the matter.
Earlier in the week, Judge Thomas presided over a hearing that featured input from city and state officials, as well as members of the public who voiced their opposition to the use of hotel occupancy tax funds for this purpose.
Bill Bunch, an attorney representing a group of concerned citizens, articulated that the allocation for the convention center expansion could detract from funding for other tourism-related initiatives. He remarked, “The city’s own data tells us that people come to Austin for all the things we know and love about Austin — live music, arts, local restaurants, local businesses, local culture and our nature in the city. Nobody comes to Austin for the convention center.”
Bunch characterized the city’s investment in the convention center as a “waste of money,” reflecting the sentiments of the group he represented.
This is not the first legal hurdle the convention center expansion has encountered. Earlier this year, the Austin United Political Action Committee, also represented by Bunch, filed a lawsuit against the city after their ballot petition was rejected due to insufficient valid signatures; the judge ruled in favor of the city in this instance as well.
City officials argue that without the expansion, Austin would find it challenging to compete with other major urban centers for tourism revenue.
The Austin Convention Center has been closed since April to facilitate the $1.6 billion expansion project. Demolition work has been completed, and construction is progressing. The revamped center is anticipated to reopen in time for the spring festival season in 2029.
