The P. Terry's hamburger restaurant at Capital Plaza, a retro-futuristic building designed to catch the attention of drivers along I-35, is being forced to close due to the state's expansion of the highway through Central Austin. The restaurant, which opened in 2016, was a flagship location for the company, despite being their 11th store. The building, with its sharp white roof and red support structure, was a unique and iconic part of the Austin skyline.
The closure is a result of the eight-mile rebuild of I-35 between U.S. 290 East and Ben White Boulevard, which is adding two non-tolled, high-occupancy vehicle lanes in each direction, rebuilding east-west bridges, and lowering the highway from Holly Street to Airport Boulevard. The project requires the demolition of many homes and businesses along the frontage roads, and the P. Terry's building is among the most visually recognizable of those still standing.
P. Terry's doesn't own the land, and the property owner, Thurman Russell T Descendants Trust, is negotiating with TxDOT over the compensation for the eminent domain case. The restaurant is currently focused on growing in the Houston area, but finding another piece of property to replace the Capital Plaza location has been challenging. The building cost more than $2 million to build and would cost about $3 million today, with at least 10 years left on the lease.
The closure of the restaurant is a significant loss for the company, as it has been a flagship location and a unique part of the Austin skyline. The company is now looking for another location in Central Texas, but the challenge of finding a suitable replacement property remains.
In my opinion, the closure of the P. Terry's restaurant is a reminder of the impact of infrastructure projects on local businesses and communities. While the expansion of I-35 is necessary for improving transportation and connectivity, it also highlights the challenges faced by businesses that are displaced due to such projects. It raises a deeper question about the balance between progress and the preservation of local landmarks and businesses.
