Doesn’t matter who came first, you can’t generate a bunch of smoke and noise. I’m sure Austin has a noise ordinance. Easy solution is to move the event to a better location.
Then build a new condo there because of the rich culture and force the festival to shut down at the new location.
I've had to deal with gentrification before, the only time I've seen it lose was when someone took a tractor and ploughed asbestos into the ground around the proposed site. The clean up costs were in the billions and the projects died because of all the bad publicity. The site getting known as the toxic exclusion zone was just the cherry on top.