Rendering of the proposed new arena, part of the East Austin District.

An open-air stadium and 15,000-capacity arena have been proposed for construction in Austin, with investors hoping the facilities would serve as magnets for sports franchises looking to relocate to one of the fastest-growing cities in the U.S.

The group known as Austin Sports & Entertainment unveiled its plans in early December for East Austin District, a 1.3-million-sq.-ft. project that would revitalize the 19...

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