Originally, the land in the historically Chicano community was leased by the city to an entity known as Austin Aquatic Gardens, Inc. for the development of an entertainment area along Town Lake.
Once the city utilized Austin Aquatic Gardens, Inc. to build Fiesta Gardens, the city council then devised a way to purchase the area based on its popularity. Despite the neighborhood’s extensive opposition to the boat races, the city continued to allow them until another location could be found to appease the boat racers.
