Does Austin Need a Bigger Convention Center?

Aug 26, 2016

City leaders are considering a plan to expand the Austin Convention Center, but some question how much the entire city would benefit from the project.


The convention industry is sort of like an invisible arms race between cities. Who can build the biggest, baddest convention center to attract the most coveted events? For some time now, the Austin Convention Center Department has been seeking to expand the downtown facility. Department director Mark Tester said the goal is to draw more visitors and make it a year-round attraction.

“The market demand is there,” Tester said. “The amount of business is there. The growth in the Austin community both in business with the airport, and even especially the medical school, really gave a tremendous climate for us to continue to succeed.”

The Austin Convention Center was built in 1992 over concerns that the then Palmer Auditorium wasn’t big enough, and Austin was losing business. The center was expanded to twice its size in 2002 – it currently spans six city blocks. This proposed expansion would add a new building across Trinity Street, and the two would be connected by pedestrian walkways. Tester said the ultimate goal is to a “convention center district.”

Credit Miguel Gutierrez Jr. / KUT

“In thoughts of our design is to have an area that actually would line up with 3rd Street where people could walk through, and there’d be like a food court and a music area and retail and restaurants, and just a beautiful open area,” he said.

"We want to see all the minority cultural centers to benefit out of it, not just the few groups that have been historically getting that funding."

  The project is no small undertaking. It’s estimated to cost anywhere from $400 to $600 million – but is it a smart investment? Brian Casey, president of the nonprofit Center for Exhibition Industry Research, says an investment like this could give Austin a competitive edge in the future. 

“There are naysayers to this, but I can tell you that the industry is showing some strength, and I think that if cities choose not to invest in their infrastructure, they might find themselves compromised from a competitive standpoint,” Casey said.

The Austin Convention Center is primarily funded through the city’s Hotel Occupancy Tax, a fee that’s collected from hotel guests and used to promote the tourism and convention industry. But recently, council members voted to explore other uses for that tax revenue. District 3 Council Member Pio Renteria said expanding the convention center wouldn’t necessarily benefit his constituents. He’s hosting a town hall on the proposal tomorrow along with District 1 Council Member Ora Houston.

“Me and Ora had a concern about, why are we supporting the convention center if we’re not going to benefit out of it?” Renteria said. “We want to see all the minority cultural centers to benefit out of it, not just the few groups that have been historically getting that funding.”

Ultimately, the expansion needs approval from the Austin City Council to move forward. The town hall kicks off tomorrow at 2 p.m. at the Parque Zaragoza Recreation Center on Gonzales Street.