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Austin City Council to move forward on $1.2B Convention Center expansion—despite COVID

Austin City Council will consider a number of agenda items related to the Convention Center expansion on Thursday.
Austin City Council is poised to take the next steps toward a long-discussed, $1.2 billion expansion of the Neal K. Kocurek Austin Convention Center this week, despite the economic uncertainty brought about by the COVID-19 pandemic.
At a meeting on Thursday, members will consider whether to approve a contract with "all necessary parties for acquisition" of two adjacent downtown blocks as well as whether to commit additional funding to the project in the form of consultants and legal counsel.
Austin City Council will take the first step toward purchasing two adjacent downtown blocks on Thursday as part of a planned expansion of the convention center. (City of Austin Real Estate Services)
The convention center opened in 1992 and underwent an expansion between 1999 and 2002. Council members voted unanimously in May 2019 to approve a second, $1.2 billion expansion that will extend the convention center to the west. The proposal also ties in the preservation of the historic Palm School, development of Palm Park and improvements to Rainey Street.
Given the city's rapid growth, the current venue "has not been able to accommodate all event demand," according to a market study conducted by the consulting firm HVS published last month. An expanded convention center, however, is projected to drive economic activity by drawing more people to Austin—and the hotels, restaurants and other businesses that call it home.
The consultants estimate that the proposed expansion will increase the economic impact of the convention center by more than $300 million a year, leading to higher tax revenues for the city as well as the creation of more than 1,700 new jobs.
HVS Managing Director Thomas Hazinski told council members on Tuesday that he expects the convention center demand across the U.S. to return to normal in the next few years, in time for the 2024 opening of the first phase of the expansion in 2024.
"I think it is very fair to assume that this (pandemic), while it is much more prolonged than we ever expected it to be, is a temporary phenomenon and some resolution is going to happen before 2024," he said.
That said, Hazinski did raise concerns about the longer-term impacts of the economic recession occasioned by the pandemic.
"My bigger concern, and the concern that we built into this analysis, is what the pandemic's long-term impacts are on the economy," he said. "What we have seen in past recessions is it takes a long time to recover from a recession."
If council votes to approve these agenda items on Thursday, the next steps will include the design phase of the expansion project and the purchase of the two downtown blocks, which is anticipated to occur next summer.
"I think we obviously have a lot of open questions," Austin Mayor Steve Adler said on Tuesday. "(I) look forward to the action this week and answering some additional questions as we go forward."
The expansion project will be funded by hotel occupancy tax revenue. City Council voted to increase the hotel occupancy tax, or HOT tax, rate from 15% to the maximum 17% allowed under state law last summer. The city of Austin will use the revenue from the 2% increase for the expansion.
A group called Unconventional Austin gathered signatures for a citizen-initiated petition that would have required voter approval of any convention center expansion, but 54% of Austin voters rejected the measure last November.
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Popular
Over a year after its first loss, Austin FC was all smiles as it beat LAFC to take home the top MLS West spot Wednesday. (Austin FC/Twitter)
Over a year after they took the stage for the first time in Los Angeles, Austin FC returned to Banc of America Stadium to snatch the No. 1 spot from LAFC in a 2-1 statement win late Wednesday night.
Austin FC, which has flirted with the top spot in the MLS West this season, has now solidly reached the summit just a year after its second-to-last first season finish. The new top dogs are now 7-2-3 overall.
Here's a look at three highlights from the match:
Flashback in LA
For many Austin FC fans and naysayers alike, the match was more than a fight for the MLS West throne: it also served as a symbol of how far the team has come.
The two clubs first met on the Banc of America pitch as Austin FC saw its first game and first loss all at once in a 2-0 battle last April. It was an exciting but shaky start to the club's first season, and the loss seemed to set the tone for the rest of its inaugural year as the club dipped to second to last in the conference.
If Austin's first season was hallmarked by its first match, then its second-year success was foretold by its back-to-back five-goal victories to kick off the season.
Since then, the club has battled its own first-year shadow, claims of "bonus games" and a few unexpected obstacles—both on and off the pitch—but it has almost always come out on top.
That fight to the top was fully realized Wednesday, even as the club played its toughest opponent yet. Even with a man down in the middle due to Daniel Pereira's red card last game, the club kept its cool through even the trickiest moments of the match. Jhojan Valencia, who patched the Pereira hole in midfield, got his first MLS start and first MLS assist as Ruben Gabrielsen scored the first goal of the game.
Gabrielsen's goal
Nice turn and finish.
— Major League Soccer (@MLS) May 19, 2022
Ruben Gabrielsen opens the scoring in LA for @AustinFC. pic.twitter.com/OMdTYgqS1x
Gabrielsen came to Austin FC as a potential hero for the team's center back position, but the club's resident Viking has already nabbed two goals in his first season with the team.
"That's center forward material," Austin FC announcer Adrian Healey said as Gabrielsen took control of Valencia's pass, paused to fake out the defense, and calmly tucked the ball into the left corner to complete the first goal of the match.
Feel-good Fagundez
🗣️ @AustinFC is off and running!@DiegolFagundez finds the short corner to make it a 2-0 lead in LA. pic.twitter.com/jgUr2IJQNe
— Major League Soccer (@MLS) May 19, 2022
Even as LAFC dominated possession for much of the match, Austin FC saw another wide-open goal opportunity crumble as midfielder Diego Fagundez's shot hit the corner goalpost in the 23rd minute.
But Fagundez wasn't finished. The midfielder was short on his Verde hair dye but full of surprises as he nimbly sunk a shot over LAFC defense to make it 2-0 with 10 minutes to go.
Fagundez, who has spent more time setting up goals for his teammates (becoming the No. 1 assister in the MLS in the process), finally took the center stage with his second goal this season.
Owen Wolff, head coach Josh Wolff's own son, had a scoring opportunity of his own foiled by the goalpost as he started his first MLS match as one of the youngest starters in the league this season.
But Austin FC wouldn't score again; instead, LAFC powerhouse Carlos Vela made the win a bit trickier in the 86th minute as he got past Austin keeper Brad Stuver to cut the lead in half. The other Wolff quickly subbed in a five-prong defense as the club kept steady for the final 10 painstaking minutes to win the match.
BONUS: Stuver's career-making match
Six saves on the night in LA for Brad Stuver! 🚫 pic.twitter.com/02V6hcUd3Y
— Major League Soccer (@MLS) May 19, 2022
After two weeks on the bench due to a knee gash, Austin's star keeper Brad Stuver had the Stuver-iest match of all time (yes, we're making it a word) as he pulled off six saves to help his team to No. 1.
Stuver looked like a pinball machine as he pulled off save after save with his feet, hands and body to keep it nearly 100% clean on the back end.
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(Paramount Theatre)
💈 Finley’s Pop-up Barbershop
Experience luxury grooming the old-fashioned way at a revival of the Driskill Hotel’s early 1900s barbershop put on by Austin-based Finley’s. The pop-up will offer men’s haircuts, beard trims, hot towels, neck massages and straight razor shaves. Click here to book an appointment.
9 a.m.-6 p.m. Friday-Sunday | The Driskill Hotel, 604 Brazos St.
😂 Moontower Comedy Presents Hannah Gadsby
Catch veteran Australian comedian Hannah Gadsby touring with her newest show, “Body of Work,” written while she pondered the effects of the pandemic. Tickets are still available in the orchestra section, starting at $60.
Doors at 6 p.m. Friday | The Paramount Theatre, 713 Congress Ave.
🎤 Rex Orange County Who Cares? Tour
Alexander James O'Connor, AKA Rex Orange County, is returning to Austin to perform his newest album, “Who Cares?” Tickets are still available starting at $49 each.
Doors at 7:30 p.m. Friday | Germania Insurance Amphitheater, 9201 Circuit of The Americas Blvd.
⚾️ Round Rock Express vs. El Paso Chihuahuas
Catch our local Minor League team play against the El Paso Chihuahuas at home this week. Tickets start at $22.
Starting 7:05 p.m. Friday | Dell Diamond, 3400 E Palm Valley Blvd.
🎶 Bleachers—The 2022 Tour
Enjoy a night of indie-pop from Grammy-winning producer Jack Antonoff, whose stage name is Bleachers, from the intimacy of Stubb’s. Tickets are still available starting at $33.
Starting 7:05 p.m. Saturday | Stubb's Waller Creek Amphitheater, 801 Red River St.🎸 The Peterson Brothers with Latasha Lee
Catch the groovy, Bastrop-born brothers are taking their rightful place on stage with soulstress Latasha Lee at Antone’s. Arrive early, seating fills up quickly! The show is 21+ and tickets start at $15.
Doors at 7 p.m. Saturday | Antone's Nightclub, 305 E 5th St.
🤠 Emmanuel Acho and Matthew McConaughey Q&A
Famous former Longhorns Emmanuel Acho and Matthew McConaughey are joining forces for a Q&A about catching greenlights and living a limitless life. Each ticket will get the holder a copy of Acho’s new book, “Illogical: Saying Yes to a Life Without Limits.” Tickets are $39 per person.
1:15 p.m. Sunday | LBJ Auditorium, 2313 Red River St.
⚽️ Austin FC vs. Orlando City
Austin FC is facing off against Orlando City at the biggest party in Austin, Q2 Stadium. Tickets are still available starting at $65 but ticketless Verde fans can still support at one of the many Pub Clubs.
7 p.m. Sunday | Q2 Stadium, 10414 Mc Kalla Pl.