Rally Austin inked a deal with Empire Control Room & Garage operators Heard Entertainment this week that loaned the company $2.2 million to buy and expand the property. The deal also guarantees that the East Seventh Street club will remain a live music venue for the next 20 years.
Rally Austin, formerly known as the Austin Economic Development Corporation, is a real estate nonprofit created by the city in 2020 to retain and create cultural spaces. The organization oversees a cultural trust for local music and arts; the Iconic Venue Fund, which supplied the loan to Empire (and also helped Hole in the Wall secure a 20-year lease with $1.6 million in aid in 2023), is part of that trust. According to a press release, Heard Entertainment has 10 years to pay back the loan, which will be reinvested in the Iconic Venue Fund.
As it stands, Empire Control Room – the club’s indoor venue – fits 350 people, while outdoor stage Empire Garage hits capacity at 1050. The patio seats another 200. Heard Entertainment Managing Partner Stephen Sternschein already owned the Control Room, but this week’s loan helped him to acquire the Garage – thus allowing him to view (and renovate) Empire as one property, not multiple, moving forward.
Rather than offer specific numbers on how an expansion would increase Empire’s capacity, Sternschein told the Chronicle, “The difference is going to be less apparent [to] the consumer. There’s still going to be two stages. That’s not going to change. It’s still going to be [the] Control Room stage and Garage stage. They’re just going to be nicer, bigger, [with] better experience. More infrastructure.”
Citing the slog of acquiring permits and other infamous construction delays, Sternschein says he doesn’t have a set timetable for Empire’s expansion. Summing up his plans for spending the money, he offers, “My vision is for it to stay loud on Seventh and Red River for a very long time to come.” His vision should be safe for at least the next two decades thanks to Rally Austin, who secured a right to first refusal clause should a future buyer try to get rid of live music at the property.
In 2022, Sternschein and his Heard partner Dave Machinist combined staff with prolific live music bookers Resound Presents. In the partnership, Heard handled venue operations for Empire and Parish – which the duo also owns – while Resound focused on public-facing booking and marketing. Ian Orth, chief creative officer and managing partner at Resound, confirmed to the Chronicle that the entities have since split up, but declined to comment further. Sternschein declined to comment.
This article appears in October 4 • 2024.
