Austin, Texas – In a significant boost to the local music scene, The Hole in the Wall, a legendary music venue located on Guadalupe Street, has secured a substantial $1.6 million real estate investment. This iconic establishment, which has been a staple on the Drag for nearly half a century, will receive the funds through a combination of Hotel Occupancy Tax (H.O.T.) dollars and general funds.
Theresa Alvarez, the CEO and President of Austin Economic Development Corporation, expressed her excitement about the agreement, stating, “This is the first iconic music venue that we have reached an agreement with, and it is a combination of H.O.T. and general fund dollars we are providing in this $1.6 million investment.”
The Austin Economic Development Corporation, a nonprofit organization established by the city council, selected The Hole in the Wall as one of 45 applicants to receive financial support. Alvarez emphasized the importance of music, arts, and culture in driving Austin’s economy, and the organization’s commitment to preserving these elements.
The negotiations for the funds began shortly after the lease for The Hole in the Wall expired in April 2023. This week, a promising development emerged as a new 20-year lease was signed, ensuring the venue’s continued presence in the community. Alvarez clarified the terms, explaining, “It really is a real estate investment with a contract with rules and reporting requirements set in place, and the 20-year lease is 10 years with 2 five-year extensions.”
The news has been met with widespread support, particularly from neighboring businesses eager to witness the venue thrive. Kaab Malik, an employee at iVape ATX Austin, expressed his enthusiasm, stating, “You know they have a sound stage, they do shows and stuff like that. If it’s a hole in the wall, and it’s a local spot, and that is what they have been doing, then why would we not [extend the lease]. Hopefully, they are here even longer, that they do well and by them doing well, the neighbor benefits too.”
The city has allocated the necessary funds to the Austin Economic Development Corporation for the real estate investment. These funds will be disbursed on a monthly basis and will not need to be repaid, as long as the guidelines outlined in the contract are adhered to. Alvarez emphasized the crucial role played by The Hole in the Wall in supporting local musicians, bartenders, and employees, ultimately driving the local economy.
The extended lease is not only advantageous for the venue itself but also for the city and surrounding businesses. Malik highlighted the potential benefits, stating, “We can benefit from their crowds being out here on the strip, whenever they are here for their shows.” With this significant investment, The Hole in the Wall is poised to further enrich Austin’s vibrant music scene, while also contributing to the economic prosperity of the community.