Are you talking about the hotel that is outside of the City of Austin's land use jurisdiction and is an administrative process? Are you expecting the City to shut something down they have no option but to approve if it meets Chapter 30 of the City's Code for development within the ETJ? It seems like an odd place for a hotel, but there is nothing the City can legally do to stop land owners from developing their property within their rights.
I think some people are falling for the classic developer conspiracy rhetoric that has picked up steam in this race as most aspects of the democratic machine (besides the younger progressive crowd which is an interesting part of local politics) put their money, mail lists, and media people to work on this runoff. That was the goal behind the same PACs supporting Alter (hard left) and Robert Walker (who was able to pick off about 10% of the right leaning voters)...force a runoff.
Beyond the developer conspiracies, the question is do you want Tovo, Kitchen, Pool, and Houston to run this City once they pick up another sidekick? That is really what this vote comes down to. Some people do. If you do, Alter is the better choice for you. If that is not the future you desire, Gallo is the better choice.