McKinney City Council approved a Chapter 380 agreement, or tax incentive deal, for a new resort-style hotel at Craig Ranch during Wednesday's meeting.
The agreement offers Aimbridge, the developer, up to $10 million in tax reimbursements over a 10-year period.
Here’s how the deal breaks down:
- In years one through five, Aimbridge will receive a 75 percent reimbursement on sales tax, real property improvements and business personal property taxes. In years six through 10, the reimbursement will be lowered to 50 percent.
- In years one through five, the city will also reimburse the developer 75 percent of the hotel occupancy tax collected by the city for room-night transactions at the hotel. In years six through 10, the amount received from the hotel tax reduces to 50 percent.
According to city documents, to receive these tax reimbursements, the hotel must meet several requirements, including being completed by Jan. 31, 2020 and being branded as a Marriott Autograph Collection hotel.
In the first year of operation, the hotel is estimated to generate over $350,000 in tax revenue for the city. Upon expiration of the tax incentives, the city expects to collect more than $2 million annually through sales, property and hotel occupancy taxes collected from the hotel, according to a city presentation at Wednesday's City Council meeting.
The resort hotel is expected to have at least 285 guest rooms and 33,000 square feet of conference space, including a main ballroom, boardrooms and an outdoor event space.
Located on about 8 acres at the northeast corner of Collin McKinney and Van Tuyl parkways, the hotel will also have a resort-style pool with a lazy river, fitness center, three-meal restaurant, structured parking, high-speed internet and
more.
