The city plans to lease space on an Austin Convention Center parking garage rooftop to Slice Padel Co. to bring in additional revenue during the exhibition hall's redevelopment. (Ben Thompson/Community Impact)
A rooftop padel club is coming to the Austin Convention Center parking garage downtown, in a bid by the city to boost revenue during the exhibition hall's multi-year closure.
What's happening
Austin is moving to finalize a lease with San Antonio-based Slice Padel Co. at the downtown parking garage. The 42,000-square-feet roof deck includes about 118 parking spaces today, which Slice will convert into a "premier recreational facility," according to the city.
Slice plans to invest $500,000 into rooftop improvements before opening. The racquet sports club will include six padel courts, a clubhouse and pro shop, and a cafe and bar. Signage may also be installed on the deck or other parts of the parking garage.
Slice would start by paying Austin a $3,000 monthly rent in its first year of operations, increasing in optional second and third years to $3,090 and $3,183, respectively. The city, which isn't providing any funding for the project, anticipates bringing in more than $111,000 over that term. Slice will also be responsible for removing any additions once its lease ends.
"Slice Padel will absorb all costs associated from operating on the rooftop. All permitting and construction costs will be the responsibility of Slice Padel," an Austin Financial Services spokesperson said in an email.
A construction timeline isn't yet set, and Slice plans to start securing permits "as soon as possible" after City Council signed off on the multi-year lease plan Aug. 27, the spokesperson said. The padel club is opening its first location in San Antonio later this year.
"This agreement offers the City both a meaningful community benefit and a new revenue stream by utilizing property that would otherwise remain idle during the Austin Convention Center construction. Additionally, the tenant will fund all improvements at its own expense, creating a publicly accessible recreational amenity without requiring any City capital investment," city agenda materials stated.
Zooming in
The public parking garage has remained open through the demolition of the old convention center and the start of construction of the new facility, which will open by early 2029. However, the convention center department reported little activity at the "underutilized asset" it's now seeking to revitalize.
Slice approached Austin last summer about taking over the garage space. The city never publicly sought or considered other vendors to take over the rooftop, the spokesperson said.
The Austin Convention Center redevelopment is continuing ahead of the facility's planned reopening by spring 2029. (Ben Thompson/Community Impact)
The padel club will need various city permits before opening. Slice will close by 10 p.m. and follow local noise ordinances. Alcohol sales will be allowed under the city lease terms, and require relevant licensing and permitting.
The lease plan was supported by a city pricing analysis comparing the padel club's rent and operations against typical rooftop parking revenue. In response to a public information request, the city labeled that analysis as confidential due to an ongoing competitive bidding process.
"[T]he interim income and community benefits justify a short-term lease, with full parking operations resuming once the Austin Convention Center’s redevelopment is complete," the agenda materials stated.
One more thing
Alongside the padel lease, City Council also authorized up to $20 million in contracts to outfit the new convention center. The contracts will cover various fixtures, equipment and furniture, according to the city, including custom and event-specific pieces. Funding would go toward designing, purchasing, shipping and installing furnishings over several years.
Council member Marc Duchen, who's questioned some aspects of the convention center project and its financing, said he supported an innovative new revenue option while noting the impact of the furniture item also on officials' Aug. 27 agenda.
“This is a really creative solution, and I think it’s important that we consider these kinds of solutions as we’re facing our fiscal constraints," Duchen said of the Slice lease. "I wish it wasn’t immediately offset by $20 million of furniture, but it’s a good start.”
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