More: 2 million in a month: Austin's airport marks passenger milestone again this year How did LoneStar get awarded $90 million? Outside of 2020 during the height of the COVID-19 pandemic, Austin's airport has seen record passenger volumes in recent years, and has at times been unable to move travelers through in a timely fashion, with long waits in security lines and other problems arising as a result. The city in its eminent domain filing said tearing down the South Terminal is a necessary step in the airport’s expansion, which officials say is needed to better serve residents and help keep up with demand for flights. The building that houses LoneStar is where the airport would build new taxiways, according to attorneys for LoneStar Airport Holdings on Tuesday. The expansion calls for nearly two dozen new gates in the main terminal, additional ticketing and baggage space and 2 million square feet of new terminal and concourse space to be added by 2029. More: New industrial park planned not far from Austin airport, Tesla facility Why does Austin want LoneStar out?Īustin wants to evict LoneStar Airport Holdings and tear down the South Terminal building to make way for the airport's long-term expansion project. LoneStar Airport Holdings argued that the city improperly used eminent domain to get out of a contract it no longer wanted to honor. LoneStar has invested $50 million since taking over the South Terminal, according to a KUT report. The Austin City Council then voted in June 2022 to authorize the eminent domain proceedings. The city's offer to buy out the contract was rejected, with LoneStar Airport Holdings saying the $1.9 million wasn't enough because it initially spent $12 million in renovations on the facility as part of its deal with the city and still had 34 years left in its contract. Why did LoneStar reject the city's offer? The law requires the government entity to follow a series of steps and requires the property owner to be fairly compensated. What is eminent domain?Īustin last year tried an unusual tactic to get out of its contract with LoneStar Airport Holdings: using eminent domain authority to seize control of the property.Įminent domain allows a government entity to take control of private property - which includes land and other kinds of property like a lease or a contract - for the public good. The South Terminal is separate from the main Barbara Jordan Terminal and houses operations for low-cost carriers Allegiant and Frontier airlines. The amount awarded to LoneStar Airport Holdings is nearly 50 times more than the $1.9 million the city originally offered, according to documents filed late Monday.Īustin-Bergstrom International Airport, which is managed by the city, attempted to end its 40-year lease with LoneStar early to make way for an airport expansion. The city of Austin this week was ordered to pay $90 million to the operator of the South Terminal at Austin-Bergstrom International Airport in an eminent domain dispute.
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