The project has been discussed since October 2015 but the name of the third-party hotel had not been announced. The Conroe Industrial Development Corp. entered into a predevelopment agreement with Garfield Public Private in July 2017.
Steve Williams, assistant city administrator and CFO, referred to it as “the new crown jewel of Conroe.”
The hotel will include a 15,000-square-foot ballroom, a convention center, lounge and bar, outdoor dining, a restaurant, a pool and a fitness center, and is expected to open in early 2023. The estimated maximum total cost for the project is $98 million.
According to previous reporting from Community Impact Newspaper, the city would own the property and lease it to the hotel operator.
The project is self-sustaining, meaning the hotel revenues and hotel occupancy and sales tax will pay off the bonds, officials said. The hotel will generate sales tax, and a portion will go to the state and a portion stays local. The state’s rebate would allow the portion intended to go to the state to stay local, Williams said.
“There is no burden on the property taxpayer or the city of Conroe,” Williams said.
Still, several council members expressed concerns about financing the project, as the state has not yet confirmed the abatement. The city is waiting on a Letter of Guarantee.
“I worry about it going south, with the COVID[-19] situation, who knew that was coming? ... We have some concerns,” Council Member Marsha Porter said.