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Austin Sued for Seeking ‘Hostile Takeover’ of Airport Terminal

  • Developer spent millions on terminal that Austin plans to raze
  • Texas’s capital city offered $1.9 million to buy out contract

The operator of a terminal at the Austin airport is suing the Texas city over its plans to raze the building and terminate a 40-year contract, saying condemnation proceedings are illegal and the city’s compensation offer is an insult.

Lonestar Airport Holdings, based in New York, says it spent spent more than $32.5 million after signing a contract six years ago to revive a largely abandoned auxiliary terminal at Austin-Bergstrom International Airport, which it turned into a base for ultra-low cost carriers Frontier Airlines and Allegiant. The company says it’s helped ease congestion at the main terminal, which is struggling to cope with a surge in passengers this year.