A petition that threatened to derail the city’s $1.6 billion expansion of the Austin Convention Center has been deemed invalid.

A group known as Austin United Political Action Committee claimed last month to have collected enough signatures from registered voters to place an item on the ballot next May that would essentially allow voters to decide whether to continue with the project, which has already brought the demolition of the old structure.

But the City Clerk disagreed this week, saying the group hadn’t met the 20,000-signature threshold.

“We were shocked and disappointed at the City Clerk’s conclusion,” Austin United PAC said in a statement Friday.

The group has argued the convention center project is a misuse of public resources during a time of financial strain, and that it unfairly diverts public funds from local music, arts, cultural and outdoor tourism initiatives. 

The expansion initiative is being funded by hotel occupancy taxes, which are paid by visitors staying in local hotels. 

City leaders have stood firmly behind the project, saying it will boost the economy, create thousands of hospitality jobs and generate even more hotel occupancy tax revenue. They’ve also rejected the PAC’s claim that it diverts money from the arts, noting that hotel occupancy tax revenue is legally restricted to tourism uses. 

“Our staff routinely turn down major events because we don’t have the space,” he wrote. “Those marquee events go to other cities that reap the economic benefit.”

But Austin United remains adamant, saying Friday it planned to take “prompt action” to ensure the proposed ordinance is considered by the Austin City Council or placed before voters — and that it will pursue legal action if necessary.

“Although we are very surprised and disappointed to see the clerk’s conclusion, this isn’t the end for us,” Austin United spokesperson Finn Sonniksen said in a prepared statement. “We spent a great deal of time and effort validating our signatures, and we feel confident that we reached 20,000.”