Photo courtesy city of SouthlakeSouthlake City Council members approved a resolution at the city council meeting Feb. 3 approving an incentive agreement for the development of a Westin Hotel at SH 114, east of N. Carroll.
The incentive agreement states that applicant and developer SRH Hospitality Southlake Investments, LLC is seeking participation from the city in the amount of $5.40 million and noted that the incentive is needed for the project to occur.
The proposed agreement is structured such that it is expected that the incentive would be paid back to the applicant over a period of ten years from their self-generated general fund sales taxes and real and personal property ad valorem taxes. Those taxes would amount to approximately $3.5 million and could be applied to the construction of the hotel and garage. The remainder of the incentive, about $1.875 million ($375,000 a year) would be returned to them over a five year period from the hotel occupancy taxes they generate.
The city's finance department calculates that the hotel will generate approximately $9.259 million net positive financial benefit to the city even after the $5.401 million in economic incentive to the company.
The developer plans to build a Westin that is a minimum of 180,000 square feet, more than 220 rooms, a minimum of 17,000 square feet of meeting space and an attached 375 parking space garage. The total project is estimated to cost $60 million.
The hotel is expected to employ 150 people with an average salary of $32,000 and total annual payroll of $4.8 million. It is expected that 16 employees would have an annual salary of more than $50,000.
