The 146 acres where Manor Downs once ran horses are being reshaped into a sprawling industrial park, with six warehouse buildings totaling more than one million square feet planned for the Hill Lane property. The site, long a fixture of eastern Travis County, shut down horse racing in 2010 and operated from 1975 until that closure, according to KXAN Austin.
Dallas-based developer Dalfen Industrial LLC acquired the former racetrack property with the warehouse project in mind, according to the Austin Business Journal. The company later used Texas Senate Bill 2038, a 2023 state law that lets landowners petition for release from a city's extraterritorial jurisdiction, to pull the tract out from under the City of Austin's oversight and place it under the City of Manor's control instead, the outlet reported. That statutory maneuver effectively let Dalfen choose the municipality that would review and approve its project.
Manor followed through in 2025, approving annexation and a seven-lot concept plan for the site, according to Citizen Portal. As part of the deal, Dalfen donated a nine-acre parcel to the city for a future public park and community amphitheater, the outlet noted — a concession that came after local officials and residents pushed for tree protections and parkland during municipal review hearings.
A Racetrack With Rock and Roll History
Before the warehouses, Manor Downs carried outsized cultural weight for a rural Central Texas property. On July 4, 1986, the track hosted Farm Aid II, an 18-hour benefit concert organized by Willie Nelson that drew Bob Dylan, Stevie Ray Vaughan, Johnny Cash, Neil Young, and Bon Jovi, according to Farm Aid. The show landed at Manor Downs with just 48 hours notice after insurance complications scuttled plans for another Austin venue.
Manor Downs permanently closed in July 2010 after 35 years in business, amid financial losses and difficult industry conditions, according to the Daily Racing Form. Track executives had reported negative annual cash flows approaching $800,000 before the shutdown, the outlet reported.
Freight Traffic And Fast Growth Along Hill Lane
The redevelopment isn't happening in isolation. A 132,942-square-foot Whole Foods Market regional distribution center began construction in 2022, per the Austin Business Journal's earlier reporting — a sign of how the corridor has already shifted from agricultural and rural use toward major commercial distribution.
Preliminary plans for the industrial park include a proposed extension of East Howard Lane, the Austin Business Journal reported. The review also included requests for follow-up on a traffic study.
