City council to consider takeover of south terminal

Austin City Council members will decide Thursday whether to use eminent domain proceedings to take over the airport's south terminal.

Why it matters: The move is part of an expansion plan at Austin-Bergstrom International Airport, which set a new passenger record for the second month in a row in April.

• City officials want to add a new concourse by 2028 with at least 10 new gates and the ability to expand to 40.

The rub: The south terminal would be demolished under the plan — no longer housing budget-friendly airlines like Allegiant and Frontier.

State of play: LoneStar Airport Holdings, which leases and operates the south terminal property, has rejected a $1.9 million offer from the city to take it over.

• Jeff Pearse, CEO of LoneStar Airport Holdings, penned an open letter to the Austin City Council on Wednesday, saying the current expansion program throws "the South Terminal and its budget-conscious travelers to the wayside."
• Pearse called for a new proposal that would maintain the south terminal while still making way for the Barbara Jordan Terminal expansion.

The other side: Jacqueline Yaft, the airport's executive director, has said the south terminal needs to be demolished for a new taxiway by July 2023 to keep up with the high demand.

What's next: If the council votes to move forward with eminent domain, the city will file a condemnation lawsuit.

• The meeting begins at 10am. Watch here.