Leander’s first hotel could break ground as early as this summer behind the H-E-B Plus shopping center by US 183.

The Holiday Inn Express would be located by West Broade Street and West Metro Drive, Economic Development Director Mark Willis said. The building will have more than 90 rooms, and Willis said the owner is also considering expanding the hotel to include either a 5,000-square-foot or 10,000-square-foot convention center or at least one restaurant.

Leander City Council discussed incentives for the hotel during a Thursday night meeting.

City staff recommended an incentive package that would give the owner a rebate of 50 percent of the property tax generated by the hotel for five years, which would add up to about $35,000 per year. The owner would also receive 25 percent of the property tax generated for the next three years, or about $17,500 per year, Willis said.

The rebate would be funded from the Hotel Occupancy Taxes, or HOT tax, generated by the facility. If the hotel operated with a 65 percent occupancy rate, Willis said it could generate $150,000 in HOT taxes annually, $2,000 in sales tax revenue for the city and $18,000 in secondary benefits, such as providing business to other companies in the area, including restaurants.

Leander City Council approved the incentive package unanimously.

“Go seal the deal,” Leander Mayor Chris Fielder said.

Advertisement

Advertisement
Advertisement
Advertisement
 
COMMUNITY CONVERSATION

Leave a Reply

Your email address will not be published. Required fields are marked *

Commenting Policy: Community Impact Newspaper welcomes observations and opinions. Comments and discussions should be relevant to the news topics we cover and contain no abusive language. Comments that are libelous, off topic, advertorial, spam, vulgar, profane or include personal or professional attacks will not be allowed. Users who do not follow the stated guidelines will be warned once, and repeat offenders will be banned permanently. Comments made by website users do not represent the opinions of Community Impact Newspaper and have not been checked for accuracy. Community Impact Newspaper reserves the right to use the comments we receive, in whole or in part, and to use the commenter’s name or username and location, in any medium. See also Terms of Service and Privacy Policy.