Cultural District Seeks City Assistance Amid Wave of Red River Closures

For 17 years, Seth Levy co-owned establishments on 710 Red River St. During his time, Levy said he’s seen Red River, one of Austin’s cultural and musical lifelines that is only a five-minute drive from the southern edge of campus, go through many changes.

However, in recent months a wave of business closures and sales has affected the city-designated cultural district, which contains a stretch of area downtown between 12th and Seventh Streets, and Neches Street and Interstate 35 Frontage Road. Earlier this month, property owners listed for sale 701-713 Red River St., which houses the 13th Floor and Elysium venues.

Levy said the closures have him concerned for the future of the district.

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“If (the buyers) don’t decide to use (701-713 Red River St) as venues across the street, you’ve lost a large portion of it,” Levy said. “It’s probably the darkest of times for Red River, as far as using venues.”

Many established venues at Red River have closed in 2026, including Empire Control Room & Garage, Koriente, Feels So Good and Marlow. Levy announced in an Instagram post in August that Valhalla would be closing Oct. 26 after the property was sold to new owners. Levy said he was also offered the venue, but could not afford to keep it. The bar and club will be replaced with a new location for Gus’s Fried Chicken, a Tennessee-based restaurant chain. 

The Red River Cultural District — an independent, nonprofit organization representing businesses and properties within Red River — released an open letter Sept. 8. The letter asked city officials to honor past commitments to protect the district and its venues from development and financial struggles. 

Zohaib “Zo” Qadri, City Council Member for District 9, which represents both Red River and the University, did not respond to a request for comment.

The letter points to the pending implementation of the Red River Cultural District Overlay, an additional zoning designation adopted in 2024 that would add new incentives and protections in order to maintain venues, like fee waivers and modified parking requirements, as one of several commitments made by the city that the district says the city has not acted upon.

“Growth does not have to come at the expense of culture,” the letter reads. “Other cities have built policy around that principle. Austin can too. This need is no longer theoretical.”

Nicole Klepadlo, executive director for the district, said she views city growth as the main cause of the current closures. She said property owners, noting the growth in value of downtown real estate, could see a financial opportunity in letting a venue go for redevelopment. High property taxes and a lack of accessibility, she said, could discourage owners and patrons from making Red River their home.

“Downtown and its challenges (with) affordable and safe parking has been a barrier to people coming down to the cultural district to see shows,” Klepadlo said. “I think, compounded, all of these things have impacts not only on our venue community but our business community.”