The city of Austin hopes to bring in more tourism dollars and create jobs with a new hospitality real estate deal in Southeast Austin.
The Austin City Council accepted a transfer of about 21 acres of land for the project. The council approved acquiring the piece of land at its meeting on Thursday.
The hand over gives the city ownership and means the city will be allowed to collect a portion of hotel occupancy taxes from the state of Texas. Hotel occupancy taxes, which come from additional charges tacked onto hotel bills, go toward efforts that promote tourism in Austin.
The move supports a plan by Houston-based RIDA Development Corporation to build a 1,000-room hotel and convention center next to the Circuit of the Americas racetrack.
Michael Whalen, who represents RIDA, said the city owns the land, but it is not responsible for the construction or maintenance of the project or facilities.
Each year, the track plays host to several professional events, including Formula 1 and NASCAR races. The races, concerts and other events generate millions of dollars for the city.
Last year, Formula 1 brought in more than $470 million to the city from people spending money on hotels, food, drink, retail and rental cars, according to city data.
John Villarreal, community liaison and director of government relations for COTA, said in a June tourism commission meeting that the racetrack has a plan to grow the campus beyond racing and concert events.
The campus already offers go-karting and a 27-hole mini golf course. Currently under construction is an , water park and sports fields.
Adding the hotel and convention center will make it easier for people to stay nearby.
“We want to bring all the amenities into one place and make this a year-round destination,� Villarreal said. “The idea here is we keep the whole family together on one campus.�
It is not yet clear what hotel brand will manage the rooms.
Since site plans are expected to go through Austin city processes, it could be a few years before the project is complete.
City staff said the new convention center and hotel at COTA is not expected to compete with the Austin Convention Center downtown because of different target audiences.
The Austin Convention Center closed in April for a $1.6 billion project to expand and redevelop the facility. It is set to reopen in 2029.
