Austin City Council will head back to the drawing board on a decision about who will run the Zilker Café, the concession stand outside Barton Springs Pool.
Council members on Thursday were set to vote on a five-year contract with Legacy Hospitality and Entertainment Group to sell food and drinks at the cafe. The company operates similar locations across the U.S.
But the council decided not to move forward because of concerns over the lack of local businesses bidding for the contract.
“For me, it was less about who was doing the operating and more about are we giving access to our local food and beverage vendors to be able to get their products in front of people who want to go to Barton Springs?” Council Member Paige Ellis, whose district includes the park, said.
The city published a bid for solicitors on its website in February. James Scarboro, chief procurement officer for the city’s Financial Services Department, said more than 400 vendors registered with the city were notified. He said there was some local interest at the beginning of the process, but Legacy Hospitality and Entertainment Group was the only company to submit an offer. And that was after the city extended the deadline application.
The Financial Services Department and the Parks and Recreation board approved the deal. But the City Council has the final say.
Scarboro said the city reached out to vendors that did not bid on the contract and many of them cited concerns about the seasonal nature of the cafe’s location, the disruption associated with major events like the ACL Festival and the Trail of Lights, and not being able to sell alcohol.
The city voted down alcohol sales outside Barton Springs Pool in 2021.
While events like ACL and the Trail of Lights won't be going away anytime soon, the City Council could reconsider the prohibition of alcohol sales.
The city said it could have generated about $100,000 a year under the proposed contract. City officials said that amount could double if alcohol is allowed.
"We are strapped for revenue and we have to be entrepreneurial," Council Member Chito Vela said. "We have to take every bit of revenue that we can. ... Anyone that has been in the restaurant business realizes what a large portion of revenues and profits comes from alcohol sales."
Several other council members said they would support the sale of beer and wine at the park, especially if it leads more local businesses to bid on the contract.
The additional time will give the city more time to reconsider the rules around alcohol sales and to try to attract more local business owners, city officials said.
“I think there is a little more groundwork that we can do here,” Ellis said. “And hopefully sharing the news that we may have a new direction for the Zilker Café will incentivize some of our other local vendors [to apply]."
The concession stand, which dates back to the 1960s, has been closed for nearly a decade. It's temporarily operating as a ticket booth for the pool while its entrance undergoes renovations.
The city has tried to find someone to run the concession stand for years. This was the third time it put a bid out for a vendor, then decided not to move forward.
City staff will come back to council with an update by Sept. 30.
