More than a month after the Austin City Council approved the use of eminent domain to acquire the South Terminal at Austin-Bergstrom International Airport (AUS), the terminal’s operator has filed a lawsuit, Austin ABC affiliate KVUE reported.
According to KVUE, LoneStar Airport Holdings hopes its complaint could stop the city from taking control of the facility.
Austin Journal reported in June that LoneStar head Jeff Pearse was at odds with city leaders over the move.
The city intends to build a new midfield concourse that will feature at least 10 new gates and two new taxiways where the South Terminal is presently located.
KVUE reported that the terminal owners fear the tens of millions of dollars they invested in the facility could go down the drain should the city proceed with the project.
According to the station, LoneStar turned down a nearly $2 million offer from the city to hand over the terminal.
Citing KVUE, Austin Journal previously reported that Pearse asserted the city’s use of eminent domain will lead toward a lengthy legal battle, as well as turn away local businesses from making major investments.
“This isn’t eminent domain,” Pearse told KVUE in June, per the publication. “It is the taking of a business."
The station reported that the city hasn’t formally responded to the suit.
While AUS has seen passenger volume rebound since the start of the COVID-19 pandemic, it has grappled with long lines that seemingly stretch to outside of its two terminals, including the South Terminal itself.
The city’s aviation leader and U.S. Rep. Lloyd Doggett (D-Austin) have clamored for federal assistance for AUS.