Council approves hotel incentive

City Council members approved a resolution at their meeting Feb. 3 approving an incentive agreement for the development of a Westin Hotel on SH 114, east of North Carroll Avenue.

The incentive agreement states that applicant and developer SRH Hospitality Southlake Investments LLC is seeking participation from the city in the amount of $5.4 million and noted that the incentive is needed for the project to occur.

The agreement is structured in such a way that it is expected the incentive would be paid back to the applicant over a period of 10 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, would be returned to the applicant over a five year period from the hotel occupancy taxes they generate.

The city's finance department calculates the hotel will generate approximately $9.25 million net positive financial benefit over 10 years to the city even above the $5.4 million in economic incentive.

The Westin is planned to be a minimum of 180,000 square feet with a minimum of 220 guest rooms.